Cabot Microelectronics (CCMP), a supplier of consumable materials to chipmakers, late Wednesday missed Wall Street's estimates for its fiscal second quarter and guided lower for the current quarter and full year. The Cabot earnings news comes two weeks after its stock hit an all-time high.
XThe Aurora, Ill.-based company earned an adjusted $1.55 a share on sales of $265.4 million in the March quarter. Analysts expected Cabot earnings of $1.61 a share on sales of $273 million, according to Zacks Investment Research. In the year-earlier period, Cabot earnings were $1.38 a share on sales of $259.4 million.
For the current quarter, Cabot expects total revenue to be flat to up low single digits on a percentage basis compared with the March quarter.
Wall Street was modeling Cabot earnings of $1.77 a share on sales of $288 million in the June quarter, Zacks said. In the year-earlier period, Cabot earned $1.37 a share on sales of $150 million.
Cabot Microelectronics stock tumbled 6%, near 113.30, in morning trading on the stock market today. On Feb. 25, Cabot stock broke out of a double-bottom base at a buy point of 111.40. It notched a record high of 129.94 on April 24.
Cabot Earnings Guidance Disappoints
"Despite softer semiconductor industry demand conditions, we are proud of our results this quarter, which represent a new record level of revenue for the company, driven primarily by the acquisition of KMG," Chief Executive David Li said in a news release.
Cabot Microelectronics is the world's leading supplier of chemical mechanical planarization, or CMP, polishing slurries used in semiconductor manufacturing. It is the second-largest supplier of CMP polishing pads. It also supplies specialty materials to pipeline operators and the industrial wood preservation industry.
In the March quarter, Cabot's sales of CMP slurries fell as chipmakers cut orders. The company saw growth in CMP pads, electronic chemicals and pipeline performance products.
Citing uncertain industry conditions, Cabot lowered the upper limit on its previously stated full-year adjusted earnings.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor companies.
YOU MIGHT ALSO LIKE:
Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists
How To Trade Growth Stocks: The Easy Way To Check And Confirm Institutional Support
Get Timely Buy & Sell Alerts With IBD Leaderboard
IBD's Investing Podcast: How To Make More Money In The Stock Market With Stock Charts
The post Cabot Microelectronics Misses March-Quarter Sales, Earnings Targets appeared first on Investor's Business Daily.
http://feedproxy.google.com/~r/BusinessRss/~3/vUhKSD9gjRI/
No comments:
Post a Comment