RF Micro Devices
The 10-second takeaway
For the quarter ended June 30 (Q1), RF Micro Devices met expectations on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank to a loss.
Margins contracted across the board.
RF Micro Devices booked revenue of $202.7 million. The 17 analysts polled by S&P Capital IQ hoped for a top line of $201.9 million on the same basis. GAAP reported sales were 5.4% lower than the prior-year quarter's $214.2 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 $0.01. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. GAAP EPS were -$0.07 for Q1 against $0.03 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 31.7%, 480 basis points worse than the prior-year quarter. Operating margin was -6.3%, 1,320 basis points worse than the prior-year quarter. Net margin was -9.4%, 1,360 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $221.7 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $888.8 million. The average EPS estimate is $0.18.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 703 members out of 747 rating the stock outperform, and 44 members rating it underperform. Among 95 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give RF Micro Devices 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 RF Micro Devices is outperform, with an average price target of $6.14.
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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.