The 10-second takeaway
For the quarter ended June 30 (Q2), EZchip Semiconductor beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share improved.
Gross margins improved, operating margins dropped, net margins expanded.
EZchip Semiconductor booked revenue of $15.8 million. The nine analysts polled by S&P Capital IQ predicted a top line of $15.5 million on the same basis. GAAP reported sales were 8.7% lower than the prior-year quarter's $17.3 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 nine earnings estimates compiled by S&P Capital IQ averaged $0.26 per share. GAAP EPS of $0.19 for Q2 were 12% higher than the prior-year quarter's $0.17 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 81.7%, 210 basis points better than the prior-year quarter. Operating margin was 30.8%, 690 basis points worse than the prior-year quarter. Net margin was 35.2%, 760 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $17.9 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $69.1 million. The average EPS estimate is $1.24.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 237 members out of 248 rating the stock outperform, and 11 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give EZchip Semiconductor a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EZchip Semiconductor is outperform, with an average price target of $46.50.
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