The 10-second takeaway
For the quarter ended July 1 (Q2), Cypress Semiconductor met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Cypress Semiconductor logged revenue of $201.3 million. The 17 analysts polled by S&P Capital IQ hoped for net sales of $204.2 million on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $255.0 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 $0.18. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.18 per share. GAAP EPS of $0.03 for Q2 were 86% lower than the prior-year quarter's $0.21 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 53.0%, 150 basis points worse than the prior-year quarter. Operating margin was 3.0%, 890 basis points worse than the prior-year quarter. Net margin was 2.5%, 1,340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $202.2 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $794.1 million. The average EPS estimate is $0.82.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,011 members out of 1,054 rating the stock outperform, and 45 members rating it underperform. Among 194 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 182 give Cypress Semiconductor a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cypress Semiconductor is outperform, with an average price target of $18.17.
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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. Motley Fool newsletter services have recommended buying shares of Cypress Semiconductor. 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.