RF Micro Devices
The 10-second takeaway
For the quarter ended Sep. 29 (Q2), RF Micro Devices beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
RF Micro Devices logged revenue of $209.7 million. The 19 analysts polled by S&P Capital IQ expected revenue of $197.8 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $243.8 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 $0.03. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.01 per share. GAAP EPS were -$0.06 for Q2 versus $0.05 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%, 540 basis points worse than the prior-year quarter. Operating margin was -4.8%, 1,420 basis points worse than the prior-year quarter. Net margin was -7.8%, 1,370 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $218.2 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $830.4 million. The average EPS estimate is $0.06.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 691 members out of 735 rating the stock outperform, and 44 members rating it underperform. Among 95 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 give RF Micro Devices a green thumbs-up, and seven 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 $5.40.
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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. The Motley Fool has no positions in the stocks mentioned above. 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.