The 10-second takeaway
For the quarter ended March 31 (Q1), Rambus met expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP loss per share improved.
Margins dropped across the board.
Rambus chalked up revenue of $62.9 million. The one analyst polled by S&P Capital IQ wanted to see revenue of $63.0 million on the same basis. GAAP reported sales were 0.5% higher than the prior-year quarter's $62.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.25. The one earnings estimate compiled by S&P Capital IQ averaged -$0.23 per share. GAAP EPS were -$0.25 for Q1 compared to -$0.04 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 88.6%, 640 basis points worse than the prior-year quarter. Operating margin was -27.9%, 4,790 basis points worse than the prior-year quarter. Net margin was -44.4%, 3,760 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $66.0 million. On the bottom line, the average EPS estimate is -$0.20.
Next year's average estimate for revenue is $276.9 million.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 432 members out of 518 rating the stock outperform, and 86 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give Rambus a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rambus is outperform, with an average price target of $16.00.
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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. 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.