RadiSys Earnings Preview

Investors hope RadiSys (Nasdaq: RSYS  ) will top analyst estimates once again after beating predictions by $0.10 in the previous quarter. The company will unveil its latest earnings on Thursday, Oct. 27. RadiSys is a provider of advanced embedded solutions for the communications networking and commercial systems markets.

What analysts say:

  • Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $99.1 million in revenue this quarter. That would represent a rise of 31.9% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.11 per share. Estimates range from $0.09 to $0.12.

What our community says:
CAPS All-Stars are solidly backing the stock with 91.2% granting it an "outperform" rating. The community at large agrees with the All-Stars with 89.1% assigning it a rating of "outperform." Fools are gung-ho about RadiSys, though the message boards have been quiet lately with only 38 posts in the past 30 days. RadiSys' bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
The company's revenue has now risen for two straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Gross Margin

29.8%

27.5%

32.7%

30.3%

Operating Margin

0.8%

(0.1%)

(1.7%)

2.3%

Net Margin

0.2%

(0.7%)

(3.1%)

2.9%

One final thing: If you want to keep tabs on RadiSys movements, and for more analysis on the company, make sure you add it to your Watchlist.

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