Applied Micro Circuits
The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Applied Micro Circuits met expectations on revenue and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted, and GAAP loss per share expanded.
Margins contracted across the board.
Applied Micro Circuits tallied revenue of $56.3 million. The six analysts polled by S&P Capital IQ expected to see a top line of $56.6 million. Sales were 9.6% lower than the prior-year quarter's $62.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at -$0.02. The six earnings estimates compiled by S&P Capital IQ predicted -$0.04 per share on the same basis. GAAP EPS were -$0.12 for Q3 against -$0.03 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 57.8%, 390 basis points worse than the prior-year quarter. Operating margin was -13.8%, 670 basis points worse than the prior-year quarter. Net margin was -12.6%, 950 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $59.0 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $242.0 million. The average EPS estimate is -$0.02.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 127 members out of 149 rating the stock outperform, and 22 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Applied Micro Circuits a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Applied Micro Circuits is outperform, with an average price target of $9.79.
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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.