Hutchinson Technology Earnings: Here’s Why Shares are Down Now
Hutchinson Technology Inc. (NASDAQ:HTCH) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.06%.
Hutchinson Technology Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $-0.16 in the quarter versus EPS of $-0.48 in the year-earlier quarter.
Revenue: Decreased 6.99% to $60.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Hutchinson Technology Inc. reported adjusted EPS loss of $0.16 per share. By that measure, the company beat the mean analyst estimate of $-0.34. It missed the average revenue estimate of $62.64 million.
Quoting Management: The company’s suspension assembly shipments totaled 98.9 million in the fiscal 2013 second quarter, down from 103.6 million in the previous quarter, and in line with the company’s prior guidance. Average selling price in the fiscal 2013 second quarter was $0.60, flat with the preceding quarter. Dual-stage actuated (DSA) suspensions accounted for 12% of second quarter shipments, up from 9% in the preceding quarter. “Our DSA suspension shipments increased in the latter part of the second quarter even though customer ramps on certain programs using DSA suspensions have been slower than expected,” said Rick Penn, Hutchinson Technology’s president and chief executive officer. “We expect DSA suspensions to account for approximately 20% of our shipments in our third quarter.”
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