Intersil
The 10-second takeaway
For the quarter ended July 5 (Q2), Intersil beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share expanded significantly. GAAP earnings per share increased.
Margins grew across the board.
Revenue details
Intersil booked revenue of $144.8 million. The 19 analysts polled by S&P Capital IQ hoped for sales of $138.3 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $163.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS details
EPS came in at $0.14. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. Non-GAAP EPS of $0.14 for Q2 were 75% higher than the prior-year quarter's $0.08 per share. GAAP EPS were $0.01 for Q2 compared to -$0.11 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
Margin details
For the quarter, gross margin was 55.2%, 70 basis points better than the prior-year quarter. Operating margin was 7.0%, 760 basis points better than the prior-year quarter. Net margin was 0.7%, 960 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter's average estimate for revenue is $149.2 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $571.7 million. The average EPS estimate is $0.49.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 144 members out of 159 rating the stock outperform, and 15 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Intersil 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 Intersil is hold, with an average price target of $8.46.
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