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Micrel (Nasdaq: MCRL) reported earnings on Oct. 25. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share dropped significantly.

Margins shrank across the board.

Revenue details
 Micrel chalked up revenue of $62.9 million. The three analysts polled by S&P Capital IQ looked for revenue of $63.8 million on the same basis. GAAP reported sales were 2.0% lower than the prior-year quarter's $64.2 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 $0.10. The three earnings estimates compiled by S&P Capital IQ anticipated $0.09 per share. GAAP EPS of $0.08 for Q3 were 47% lower than the prior-year quarter's $0.15 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 52.9%, 260 basis points worse than the prior-year quarter. Operating margin was 9.7%, 910 basis points worse than the prior-year quarter. Net margin was 7.4%, 690 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $66.2 million. On the bottom line, the average EPS estimate is $0.11.

Next year's average estimate for revenue is $254.9 million. The average EPS estimate is $0.40.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 115 members out of 121 rating the stock outperform, and six members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give Micrel a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Micrel is buy, with an average price target of $15.50.

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About the Author

Seth Jayson
Seth Jayson is an advisor on The Motley Fool’s Trends service, overseeing the AI and Spotters segments of the scorecard. Seth closely follows technology companies, particularly hyperscalers and their suppliers. He also stays up to date and recommends companies in homebuilding, specialty online, defense, aerospace, and other sectors. He has spent more than two decades researching, reporting on, and recommending stocks to Motley Fool members. A former Motley Fool member himself, Seth holds a B.A. from Carleton College and two master’s degrees from NYU and the University of Missouri in art history and journalism respectively.
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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.

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