The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Inphi beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly, and GAAP loss per share contracted.
Margins dropped across the board.
Inphi tallied revenue of $17.3 million. The five analysts polled by S&P Capital IQ anticipated revenue of $16.5 million. Sales were 18% lower than the prior-year quarter's $21.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at -$0.01. The five earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. GAAP EPS were -$0.01 for Q4 compared to -$0.72 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 63.8%, 140 basis points worse than the prior-year quarter. Operating margin was -11.5%, 2,200 basis points worse than the prior-year quarter. Net margin was -1.6%, 1,570 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $19.8 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $97.9 million. The average EPS estimate is $0.16.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 22 members rating the stock outperform. Among seven CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Inphi a green thumbs-up, and none give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Inphi is outperform, with an average price target of $12.80.
Is Inphi the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Inphi 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 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.