The 10-second takeaway
For the quarter ended Jan. 1 (Q1), Microsemi met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share increased.
Margins dropped across the board.
Microsemi booked revenue of $240.9 million. The 12 analysts polled by S&P Capital IQ predicted a top line of $240.8 million. Sales were 31% higher than the prior-year quarter's $184.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.39. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.39 per share on the same basis. GAAP EPS were $0.48 for Q1 versus -$0.02 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 52.2%, 140 basis points worse than the prior-year quarter. Operating margin was 5.3%, 690 basis points worse than the prior-year quarter. Net margin was -18.5%, 1,780 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $248.0 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $1.01 billion. The average EPS estimate is $1.90.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 99 members out of 110 rating the stock outperform, and 11 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Microsemi a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Microsemi is buy, with an average price target of $25.64.
New mobile devices are changing the game, and potential profitability, at many semiconductor companies. Some will fail, some will tread water, and those in the right devices will shine. Where does Microsemi fit in? Who will lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.
- Add Microsemi to My Watchlist.
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 don't 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.
More from The Motley Fool
The 2 Best Performing Tech Stocks in November
Unisys and Microsemi were the fastest growing tech stocks this month, but will their double-digit rallies continue?
Why Microsemi Corporation Stock Jumped
Investors seem to like the semiconductor specialist's newest product.
Why PMC-Sierra Inc Gained 76% in October
The semiconductor designer is the belle of the ball in a high-octane bidding war.