The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Supertex met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly, and earnings per share shrank significantly.
Margins shrank across the board.
Supertex tallied revenue of $14 million. The six analysts polled by S&P Capital IQ foresaw revenue of $14 million. Sales were 29% lower than the prior-year quarter's $20 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.01. The five earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. GAAP EPS of $0.01 for Q3 were 95% lower than the prior-year quarter's $0.22 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 38.1%, 1,440 basis points worse than the prior-year quarter. Operating margin was -9.9%, 2,590 basis points worse than the prior-year quarter. Net margin was 0.7%, 1,380 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $14 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $63 million. The average EPS estimate is $0.32.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 94 members out of 105 rating the stock outperform, and 11 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Supertex a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Supertex is hold, with an average price target of $21.50.
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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.