The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Entropic Communications beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped to zero.
Margins shrank across the board.
Entropic Communications reported revenue of $89.8 million. The 14 analysts polled by S&P Capital IQ foresaw sales of $88.7 million on the same basis. GAAP reported sales were 75% higher than the prior-year quarter's $51.5 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 13 earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS contracted to zero from the prior-year quarter's $0.05.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.0%, 630 basis points worse than the prior-year quarter. Operating margin was 2.6%, 970 basis points worse than the prior-year quarter. Net margin was 0.5%, 850 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $92.9 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $323.7 million. The average EPS estimate is $0.37.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 255 members out of 287 rating the stock outperform, and 32 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Entropic Communications 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 Entropic Communications is outperform, with an average price target of $7.45.
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