Sigma Designs
The 10-second takeaway
For the quarter ended July 28 (Q2), Sigma Designs beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share dropped.
Margins expanded across the board.
Revenue details
Sigma Designs chalked up revenue of $68.3 million. The five analysts polled by S&P Capital IQ expected a top line of $64.9 million on the same basis. GAAP reported sales were 46% higher than the prior-year quarter's $46.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at -$0.12. The four earnings estimates compiled by S&P Capital IQ predicted -$0.31 per share. GAAP EPS were -$0.40 for Q2 against -$0.69 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 44.8%, 1,700 basis points better than the prior-year quarter. Operating margin was -21.5%, 2,660 basis points better than the prior-year quarter. Net margin was -19.4%, 2,760 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $73.5 million. On the bottom line, the average EPS estimate is -$0.20.
Next year's average estimate for revenue is $253.4 million. The average EPS estimate is -$0.96.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,342 members out of 1,391 rating the stock outperform, and 49 members rating it underperform. Among 314 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 301 give Sigma Designs a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sigma Designs is hold, with an average price target of $6.33.
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