The 10-second takeaway
For the quarter ended June 30 (Q2), Silicon Image beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share shrank.
Margins expanded across the board.
Silicon Image reported revenue of $63.8 million. The five analysts polled by S&P Capital IQ expected to see a top line of $61.1 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $53.6 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 $0.05. The four earnings estimates compiled by S&P Capital IQ forecast $0.03 per share. GAAP EPS were -$0.01 for Q2 against -$0.02 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 59.2%, 100 basis points better than the prior-year quarter. Operating margin was 4.1%, 150 basis points better than the prior-year quarter. Net margin was -1.5%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $72.4 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $261.3 million. The average EPS estimate is $0.19.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 688 members out of 722 rating the stock outperform, and 34 members rating it underperform. Among 111 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 102 give Silicon Image a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Silicon Image is buy, with an average price target of $8.83.
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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 the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. 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.