The 10-second takeaway
For the quarter ended June 30 (Q2), Entropic Communications beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share shrank to zero.
Margins shrank across the board.
Entropic Communications logged revenue of $83.1 million. The 12 analysts polled by S&P Capital IQ expected revenue of $81.6 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $61.5 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 $0.09. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS dropped to zero from the prior-year quarter's $0.09.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.6%, 340 basis points worse than the prior-year quarter. Operating margin was 1.1%, 1,820 basis points worse than the prior-year quarter. Net margin was 0.2%, 1,240 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $87.3 million. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $320.3 million. The average EPS estimate is $0.35.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 261 members rating the stock outperform and 32 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Entropic 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 Entropic Communications is outperform, with an average price target of $6.43.
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