The 10-second takeaway
For the quarter ended Dec. 31 (Q4), TAM beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share shrank significantly.
Gross margins shrank, operating margins expanded, net margins contracted.
TAM recorded revenue of $1.92 billion. The three analysts polled by S&P Capital IQ expected a top line of $1.84 billion on the same basis. GAAP reported sales were 1.1% lower than the prior-year quarter's $1.94 billion.
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 $0.35. The three earnings estimates compiled by S&P Capital IQ forecast $0.71 per share on the same basis. GAAP EPS of $0.32 for Q4 were 46% lower than the prior-year quarter's $0.59 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 32.1%, 440 basis points worse than the prior-year quarter. Operating margin was 9.9%, 90 basis points better than the prior-year quarter. Net margin was 2.7%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.94 billion. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $7.82 billion. The average EPS estimate is $1.99.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 119 members out of 153 rating the stock outperform, and 34 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give TAM a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TAM is outperform, with an average price target of $28.15.
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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.