The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Tessera Technologies met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Tessera Technologies notched revenue of $56.7 million. The two analysts polled by S&P Capital IQ wanted to see revenue of $56.5 million. Sales were 29% lower than the prior-year quarter's $80.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.05. The two earnings estimates compiled by S&P Capital IQ forecast $0.02 per share. GAAP EPS of $0.05 for Q4 were 82% lower than the prior-year quarter's $0.27 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 87.6%, 580 basis points worse than the prior-year quarter. Operating margin was 16.1%, 2,820 basis points worse than the prior-year quarter. Net margin was 4.7%, 1,210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $58.9 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $264.2 million. The average EPS estimate is $0.64.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 395 members out of 425 rating the stock outperform, and 30 members rating it underperform. Among 127 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 118 give Tessera Technologies a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tessera Technologies is outperform, with an average price target of $23.25.
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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.