The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict PMC-Sierra's revenues will contract -22.5% and EPS will wane -50.0%.
The average estimate for revenue is $134.2 million. On the bottom line, the average EPS estimate is $0.09.
Last quarter, PMC-Sierra tallied revenue of $137.8 million. GAAP reported sales were 19% lower than the prior-year quarter's $171.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.09. GAAP EPS of $0.12 for Q2 were 71% higher than the prior-year quarter's $0.07 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 70.1%, 90 basis points better than the prior-year quarter. Operating margin was -0.8%, 1,340 basis points worse than the prior-year quarter. Net margin was 19.2%, 940 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $546.8 million. The average EPS estimate is $0.35.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 216 members out of 236 rating the stock outperform, and 20 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give PMC-Sierra a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PMC-Sierra is hold, with an average price target of $7.53.
Is PMC-Sierra the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add PMC-Sierra to My Watchlist.
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.
More from The Motley Fool
Why PMC-Sierra Inc Gained 76% in October
The semiconductor designer is the belle of the ball in a high-octane bidding war.
Why PMC-Sierra Inc. Jumped Monday
With a firm buyout offer from Skyworks Solutions already on the table, the company attracted another bid from Microsemi.
Why PMC-Sierra Inc. Jumped 33% Tuesday
Skyworks Solutions is stepping in to acquire the chipmaker, plugging important holes in its big data strategy.