The Gory Details on ATMI's Double Fumble

ATMI (Nasdaq: ATMI  ) reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), ATMI missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue shrank. GAAP earnings per share shrank significantly.

Margins dropped across the board.

Revenue details
ATMI chalked up revenue of $102.0 million. The three analysts polled by S&P Capital IQ wanted to see a top line of $107.6 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.29. The four earnings estimates compiled by S&P Capital IQ predicted $0.35 per share. GAAP EPS of $0.29 for Q2 were 17% lower than the prior-year quarter's $0.35 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 47.7%, 280 basis points worse than the prior-year quarter. Operating margin was 12.5%, 420 basis points worse than the prior-year quarter. Net margin was 9.3%, 150 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $115.5 million. On the bottom line, the average EPS estimate is $0.43.

Next year's average estimate for revenue is $434.8 million. The average EPS estimate is $1.46.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 74 members out of 82 rating the stock outperform, and eight members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give ATMI a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ATMI is outperform, with an average price target of $22.83.

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