Cavium (Nasdaq: CAVM ) reported earnings on Oct. 29. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Cavium met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank to a loss.
Margins shrank across the board.
Cavium booked revenue of $61.1 million. The 22 analysts polled by S&P Capital IQ expected revenue of $60.7 million on the same basis. GAAP reported sales were 9.8% lower than the prior-year quarter's $67.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.15. The 21 earnings estimates compiled by S&P Capital IQ averaged $0.11 per share. GAAP EPS were -$0.15 for Q3 against $0.12 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 59.4%, 50 basis points worse than the prior-year quarter. Operating margin was -14.9%, 2,290 basis points worse than the prior-year quarter. Net margin was -11.9%, 2,080 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $65.3 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $234.0 million. The average EPS estimate is $0.35.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 75 members out of 107 rating the stock outperform, and 32 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Cavium a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cavium is outperform, with an average price target of $31.75.
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