Standard Microsystems (Nasdaq: SMSC) met its estimates last quarter, but investors hope that it will beat them this quarter. The company will unveil its latest earnings on Monday, June 27. Standard Microsystems designs and sells a wide range of silicon-based integrated circuits that utilize analog and mixed-signal technologies.

What analysts say:

  • Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Analysts like Standard Microsystems better than fellow semiconductor player Micrel. Two out of four analysts rate Micrel a buy compared to six of six for Standard Microsystems. That rating hasn't budged in three months as analysts have remained steadfast in their opinion of the stock.
  • Revenue Forecasts: On average, analysts predict $101.3 million in revenue this quarter. That would represent a rise of 4.3% from the year-ago quarter.
  • Wall St. Earnings Expectations: The average analyst is estimating earnings of 16 cents per share.

What our community says:
CAPS All Stars are solidly backing the stock with 88.9% assigning it an "outperform" rating. The community at large concurs with the All Stars with 95.2% awarding it a rating of "outperform." Fools are keen on Standard Microsystems, though the message boards have been quiet lately with only 21 posts in the past 30 days. Despite the majority sentiment in favor of Standard Microsystems, the stock has a middling CAPS rating of three out of five stars.

Standard Microsystems' income has fallen year over year by an average of more than twofold. The company's gross margin shrank by 5.7 percentage points in the last quarter. Revenue rose 22% while cost of sales rose 37.1% to $52.5 million from a year earlier.

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 and net margins over the past four quarters. 

Quarter Q4 Q3 Q2 Q1
Gross Margin 48.1% 52.1% 56.4% 53.3%
Net Margin 1.7% -4.3% 12.4% 0.6%

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