The 10-second takeaway
For the quarter ended Dec. 25 (Q4), Spansion beat expectations on revenue and missed on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly, and GAAP earnings per share contracted.
Margins dropped across the board.
Spansion logged revenue of $220.0 million. The three analysts polled by S&P Capital IQ hoped for revenue of $214.7 million. Sales were 33% lower than the prior-year quarter's $327.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at -$0.12. The four earnings estimates compiled by S&P Capital IQ predicted -$0.11 per share on the same basis. GAAP EPS were -$1.25 for Q4 against -$0.22 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 1.0%, 5,220 basis points worse than the prior-year quarter. Operating margin was -23.4%, 5,520 basis points worse than the prior-year quarter. Net margin was -33.8%, 2,960 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $217.6 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $1.05 billion. The average EPS estimate is $0.98.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 19 members out of 22 rating the stock outperform, and three members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all six give Spansion a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spansion is hold, with an average price target of $17.40.
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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.