The 10-second takeaway
For the quarter ended March 31 (Q1), Micrel beat slightly on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Micrel reported revenue of $61.2 million. The one analyst polled by S&P Capital IQ expected to see revenue of $60.0 million on the same basis. GAAP reported sales were 9.4% lower than the prior-year quarter's $67.5 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 $0.09. The two earnings estimates compiled by S&P Capital IQ anticipated $0.05 per share. GAAP EPS of $0.09 for Q1 were 36% lower than the prior-year quarter's $0.14 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 54.3%, 180 basis points worse than the prior-year quarter. Operating margin was 14.2%, 540 basis points worse than the prior-year quarter. Net margin was 8.9%, 450 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $63.5 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $267.5 million. The average EPS estimate is $0.40.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 113 members out of 119 rating the stock outperform, and six members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Micrel 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 Micrel is outperform, with an average price target of $16.50.
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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. He is the 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 don't 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.