The 10-second takeaway
For the quarter ended March 31 (Q1), Volterra Semiconductor beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved significantly.
Gross margins contracted, operating margins improved, net margins grew.
Volterra Semiconductor booked revenue of $42.1 million. The 13 analysts polled by S&P Capital IQ predicted revenue of $40.2 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $34.2 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 $0.32. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.27 per share on the same basis. GAAP EPS of $0.23 for Q1 were 130% higher than the prior-year quarter's $0.10 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 57.5%, 10 basis points worse than the prior-year quarter. Operating margin was 16.3%, 460 basis points better than the prior-year quarter. Net margin was 14.7%, 690 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $43.9 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $184.1 million. The average EPS estimate is $1.47.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 96 members out of 112 rating the stock outperform, and 16 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give Volterra Semiconductor a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Volterra Semiconductor is outperform, with an average price target of $34.40.
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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.