The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Spreadtrum Communications met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.
Margins dropped across the board.
Spreadtrum Communications reported revenue of $192.2 million. The seven analysts polled by S&P Capital IQ predicted net sales of $191.2 million on the same basis. GAAP reported sales were 52% higher than the prior-year quarter's $126.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.77. The six earnings estimates compiled by S&P Capital IQ forecast $0.71 per share on the same basis. GAAP EPS of $0.66 for Q4 were 18% higher than the prior-year quarter's $0.56 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.8%, 220 basis points worse than the prior-year quarter. Operating margin was 17.8%, 810 basis points worse than the prior-year quarter. Net margin was 18.3%, 540 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $167.7 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $736.9 million. The average EPS estimate is $2.40.
The stock has a two-star rating (out of five) at Motley Fool CAPS. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Spreadtrum Communications a green thumbs-up, and 17 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spreadtrum Communications is outperform, with an average price target of $31.36.
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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.