The 10-second takeaway
For the quarter ended April 1 (Q1), LSI beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share increased significantly.
Margins increased across the board.
LSI booked revenue of $622.4 million. The 13 analysts polled by S&P Capital IQ looked for a top line of $599.8 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $473.3 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 $0.20. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.14 per share on the same basis. GAAP EPS of $0.13 for Q1 were much higher than the prior-year quarter's $0.02 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 49.5%, 210 basis points better than the prior-year quarter. Operating margin was 4.3%, 150 basis points better than the prior-year quarter. Net margin was 12.1%, 1,000 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $619.6 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $2.54 billion. The average EPS estimate is $0.68.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LSI is outperform, with an average price target of $11.21.
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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.