The 10-second takeaway
For the quarter ended June 30 (Q2), Rambus whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP loss per share improved.
Margins shrank across the board.
Rambus booked revenue of $56.2 million. The two analysts polled by S&P Capital IQ wanted to see revenue of $62.9 million on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $66.2 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 -$0.29. The two earnings estimates compiled by S&P Capital IQ anticipated -$0.20 per share. GAAP EPS were -$0.29 for Q2 versus -$0.10 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 86.9%, 400 basis points worse than the prior-year quarter. Operating margin was -38.5%, 5,890 basis points worse than the prior-year quarter. Net margin was -57.3%, 4,130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $64.6 million. On the bottom line, the average EPS estimate is -$0.16.
Next year's average estimate for revenue is $255.3 million. The average EPS estimate is -$0.75.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 431 members out of 523 rating the stock outperform, and 92 members rating it underperform. Among 88 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give Rambus a green thumbs-up, and 29 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rambus is outperform, with an average price target of $7.17.
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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. 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.