Silicon Motion Technology
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Silicon Motion Technology beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share expanded.
Margins grew across the board.
Silicon Motion Technology reported revenue of $67.1 million. The five analysts polled by S&P Capital IQ hoped for a top line of $60.5 million. Sales were 61% higher than the prior-year quarter's $40.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.37. The five earnings estimates compiled by S&P Capital IQ anticipated $0.26 per share on the same basis. GAAP EPS were $3.67 for Q4 compared to -$0.20 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 49.7%, 470 basis points better than the prior-year quarter. Operating margin was 21.0%, 970 basis points better than the prior-year quarter. Net margin was 18.2%, 3,200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $56.7 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $261.0 million. The average EPS estimate is $1.19.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 769 members out of 796 rating the stock outperform, and 27 members rating it underperform. Among 248 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 244 give Silicon Motion Technology a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Silicon Motion Technology is buy, with an average price target of $23.51.
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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.
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