The 10-second takeaway
For the quarter ended March 31 (Q1), Spreadtrum Communications beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped.
Margins shrank across the board.
Spreadtrum Communications recorded revenue of $161.1 million. The eight analysts polled by S&P Capital IQ expected to see net sales of $158.3 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $137.1 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 $0.47. The six earnings estimates compiled by S&P Capital IQ anticipated $0.40 per share. GAAP EPS of $0.48 for Q1 were 5.9% lower than the prior-year quarter's $0.51 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 38.0%, 420 basis points worse than the prior-year quarter. Operating margin was 16.1%, 480 basis points worse than the prior-year quarter. Net margin was 15.1%, 500 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $167.5 million. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $703.8 million. The average EPS estimate is $1.96.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 267 members out of 320 rating the stock outperform, and 53 members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Spreadtrum Communications a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spreadtrum Communications is outperform, with an average price target of $20.87.
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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.