The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PMC-Sierra missed slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share improved significantly.
Gross margins increased, operating margins dropped, net margins increased.
PMC-Sierra notched revenue of $152.6 million. The 11 analysts polled by S&P Capital IQ wanted to see a top line of $155.3 million. Sales were 4.2% lower than the prior-year quarter's $159.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.13. The four earnings estimates compiled by S&P Capital IQ averaged $0.13 per share on the same basis. GAAP EPS of $0.12 for Q4 were 200% higher than the prior-year quarter's $0.04 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 69.1%, 100 basis points better than the prior-year quarter. Operating margin was 7.0%, 760 basis points worse than the prior-year quarter. Net margin was 18.6%, 1,170 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $156.0 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $676.8 million. The average EPS estimate is $0.53.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 221 members out of 241 rating the stock outperform, and 20 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give PMC-Sierra a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PMC-Sierra is hold, with an average price target of $7.80.
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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.