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.
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 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.
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.
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.
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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