The Gory Details on Volterra Semiconductor's Double Miss

Volterra Semiconductor (Nasdaq: VLTR  ) reported earnings on July 22. Here are the numbers you need to know.

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

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

Gross margins grew, operating margins shrank, net margins contracted.

Revenue details
Volterra Semiconductor chalked up revenue of $34.4 million. The 12 analysts polled by S&P Capital IQ wanted to see net sales of $35.6 million on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $43.6 million.

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 $0.13. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.16 per share. Non-GAAP EPS of $0.13 for Q2 were 59% lower than the prior-year quarter's $0.32 per share. GAAP EPS of $0.03 for Q2 were 86% lower than the prior-year quarter's $0.22 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 58.1%, 10 basis points better than the prior-year quarter. Operating margin was 5.9%, much worse than the prior-year quarter. Net margin was 2.2%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $37.2 million. On the bottom line, the average EPS estimate is $0.20.

Next year's average estimate for revenue is $150.6 million. The average EPS estimate is $0.82.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 112 members out of 126 rating the stock outperform, and 14 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Volterra Semiconductor a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Volterra Semiconductor is outperform, with an average price target of $16.85.

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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. The Motley Fool has no position in any of the stocks mentioned. 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.


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