Boston, MA 08/05/2014 (wallstreetpr) – Diversified technology company with crystal growth equipment GT Advanced Technologies Inc (NASDAQ:GTAT) believes that its performance in the second half of the current year will be driven by product mix and favorable gross margins. In turn, they will yield better profits for the company in the year 2014. The company disclosed that the response for its Merlin and Hyperion were tremendous from its partners, as well as, potential customers.
Outlook
The diversified technology company expects to achieve adjusted earnings between 12 cents and 18 cents a share for the current calendar year 2014. Even the lower end of the earnings guidance is miles ahead of the Wall Street analysts’ estimations of three cents a share. As a result, the stock surged over 11% in the extended hours of trading on Monday, and the trend is likely to be extended on Tuesday when the regular market opens.
GT Advanced Technologies Inc (NASDAQ:GTAT) also provided revenue forecast for the year 2014 in the range of $600 – $700 million, which meant that the mid-point was $650 million. This is lower than the Street analysts’ expectations of $666.80 million.
The company said that its earnings outlook reflected a projected change in the mix apart from a favorable gross margin in the next two quarters. It also reiterated its adjusted earnings target of $1.50 or above for the year 2016.
2Q Results
GT Advanced Technologies Inc (NASDAQ:GTAT) suffered a net loss of $86.38 million or a loss of 63 cents a share for the second quarter compared to net income of $11.95 million or earnings of ten cents a share in the same quarter last year. On an adjusted basis too, the company incurred a net loss of $22.32 million or a loss of 16 cents a share versus net income of $23.1 million or earnings of 19 cents a share in the year-ago quarter. On average, analysts’ estimated the company to suffer a loss of 14 cents a share.
The company’s revenue plummeted to $58.0 million from $168.33 million in the previous year quarter. However, revenue more than doubled from $22.5 million recorded in the first quarter. Analysts’ predicted the company to generate revenue of $63.94 million.
