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Silicon Motion Technology Beats on Both Top and Bottom Lines

By Seth Jayson - Updated Apr 7, 2017 at 12:12PM

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Just the facts, Fool.

Silicon Motion Technology (Nasdaq: SIMO) reported earnings on Oct. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Silicon Motion Technology beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.

Gross margins contracted, operating margins expanded, net margins contracted.

Revenue details
Silicon Motion Technology recorded revenue of $77.1 million. The eight analysts polled by S&P Capital IQ predicted revenue of $74.5 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $60.4 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 $0.46. The seven earnings estimates compiled by S&P Capital IQ averaged $0.37 per share. GAAP EPS of $1.86 for Q3 were 244% higher than the prior-year quarter's $0.54 per share.

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 46.2%, 310 basis points worse than the prior-year quarter. Operating margin was 21.5%, 10 basis points better than the prior-year quarter. Net margin was 20.3%, 860 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $77.4 million. On the bottom line, the average EPS estimate is $0.40.

Next year's average estimate for revenue is $285.6 million. The average EPS estimate is $1.47.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 774 members out of 795 rating the stock outperform, and 21 members rating it underperform. Among 180 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 175 give Silicon Motion Technology a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Silicon Motion Technology is buy, with an average price target of $25.88.

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Silicon Motion Technology Corporation Stock Quote
Silicon Motion Technology Corporation
$89.78 (-1.18%) $-1.07

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