The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PDF Solutions missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP EPS grew significantly.
Gross margin dropped, and both operating margin and net margin grew.
PDF Solutions tallied revenue of $17.6 million. The one analyst polled by S&P Capital IQ hoped for sales of $18.3 million on the same basis. GAAP reported sales were 8.5% higher than the prior-year quarter's $16.2 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 $0.12. The one earnings estimate compiled by S&P Capital IQ predicted $0.09 per share on the same basis. GAAP EPS of $0.08 for Q4 were much higher than the prior-year quarter's $0.01 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 54.2%, 260 basis points worse than the prior-year quarter. Operating margin was 12.2%, 310 basis points better than the prior-year quarter. Net margin was 12.0%, 1,000 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $18.5 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $81.5 million. The average EPS estimate is $0.70.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 40 members rating the stock outperform and three members rating it underperform. Among nine CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give PDF Solutions 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 PDF Solutions is buy, with an average price target of $11.00.
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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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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