RF Micro Devices
The 10-second takeaway
For the quarter ended Dec. 31 (Q3), RF Micro Devices met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly, and earnings per share contracted to a loss.
Margins dropped across the board.
RF Micro Devices reported revenue of $225 million. The 17 analysts polled by S&P Capital IQ expected revenue of $225 million. Sales were 19% lower than the prior-year quarter's $279 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.02. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.03 per share on the same basis. GAAP EPS were -$0.03 for Q3 against $0.13 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 28.2%, 880 basis points worse than the prior-year quarter. Operating margin was -1.0%, 1,660 basis points worse than the prior-year quarter. Net margin was -4.2%, 1,740 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $204 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $888 million. The average EPS estimate is $0.23.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 720 members out of 762 rating the stock outperform, and 43 members rating it underperform. Among 126 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 121 give RF Micro Devices a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RF Micro Devices is outperform, with an average price target of $8.38.
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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.