Silicon Motion Technology
The 10-second takeaway
For the quarter ended March 31 (Q1), Silicon Motion Technology beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew significantly.
Margins grew across the board.
Silicon Motion Technology tallied revenue of $64.0 million. The five analysts polled by S&P Capital IQ wanted to see sales of $61.2 million on the same basis. GAAP reported sales were 48% higher than the prior-year quarter's $43.2 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 $0.39. The five earnings estimates compiled by S&P Capital IQ predicted $0.26 per share. GAAP EPS of $0.39 for Q1 were 95% higher than the prior-year quarter's $0.20 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 49.4%, 320 basis points better than the prior-year quarter. Operating margin was 20.8%, 840 basis points better than the prior-year quarter. Net margin was 20.3%, 550 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $68.4 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $282.2 million. The average EPS estimate is $1.50.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 775 members out of 799 rating the stock outperform, and 24 members rating it underperform. Among 204 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 201 give Silicon Motion Technology a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Silicon Motion Technology is buy, with an average price target of $30.40.
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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.
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