Entropic Communications Beats Up on Analysts Yet Again (ENTR)

Entropic Communications Beats Up on Analysts Yet Again

Entropic Communications (Nasdaq: ENTR ) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Entropic Communications met expectations on revenue and beat expectations on earnings per share.

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

Gross margins improved, operating margins shrank, and net margins dropped.

Revenue details
Entropic Communications reported revenue of $56.2 million. The 10 analysts polled by S&P Capital IQ expected revenue of $56.0 million. Sales were 21% lower than the prior-year quarter's $70.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.12. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.11 per share on the same basis. GAAP EPS of $0.03 for Q4 were 95% lower than the prior-year quarter's $0.55 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 54.9%, 120 basis points better than the prior-year quarter. Operating margin was 7.8%, 1,620 basis points worse than the prior-year quarter. Net margin was 4.1%, 6,450 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $56.1 million. On the bottom line, the average EPS estimate is $0.11.

Next year's average estimate for revenue is $246.0 million. The average EPS estimate is $0.53.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 278 members out of 312 rating the stock outperform, and 34 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Entropic Communications a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Entropic Communications is outperform, with an average price target of $7.22.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Comments from our Foolish Readers

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Report this Comment On February 03, 2012, at 12:40 PM, pie77 wrote:

The fact is that growth has returned. Entropic beat
earnings estimates. They are dominate in their
area and about to ship the MOCA 2 product in force. Broadcom numbers were also
down compared to Q4 last year.
In fact, this is true about many of the companies listed on U.S. exchanges.
As usual concerning Entropic, you are clueless.
Report this Comment On February 03, 2012, at 12:45 PM, pie77 wrote:

If you listen to the Entropic CC, it is clear that the
rest of the year going forward looks impressive.
Report this Comment On February 04, 2012, at 12:43 PM, pie77 wrote:

The Facts:
Entropic Communication has beat earnings forecasts seven out of the last eight quarters. 2011 was the best year in company history.
The revenues nearly doubled. Profits were up more than 300% . The company had a quarter two quarters ago when they missed by a penny.
Since then, they began to show a steady revenue increase again the last few quarters. The CEO said they are in growth mode again at the CC.
The company dominates the market with a 75% market share. The millions of chips sold in the past will need to replaced with the
new Entropic Moca 2 chip which has four times the speed of the Moca 1.1 .
The CEO said he expects shipments of MOCA 2 to be in full force by mid-year. Adding further to revenues, Entropic has a bid to buy Trident.
Trident could bring substantial revenues to Entropic.
As times goes by, Entropic seems to be getting stronger and Seth writings seem more like a piece of fiction. Many could guess the reason why.
•Zacks #1 Rank Additions for FridayZacks(Fri, Jan 13)
Entropic Communications Reports Fourth Quarter and Fiscal Year...
Revenue Up 9% Quarter-over-Quarter to $56.2 Million, Record Annual Revenue of $241 Million...
Market Report -- In Play (ENTR)
Entropic Comms beats by $0.01, reports revs in-line Reports Q4 (Dec) earnings of $0.12 per share, excluding non-recurring items, $0.01 better than the Capital IQ...
1/27/2012 at TheStreet.com
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Entropic Communications Beats Up on Analysts Yet Again

Comments from our Foolish Readers

Report this Comment On February 03, 2012, at 12:40 PM, pie77 wrote:

Report this Comment On February 03, 2012, at 12:45 PM, pie77 wrote:

Report this Comment On February 04, 2012, at 12:43 PM, pie77 wrote:

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