The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Spansion met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins contracted, net margins dropped.
Spansion notched revenue of $239.7 million. The five analysts polled by S&P Capital IQ expected revenue of $240.1 million on the same basis. GAAP reported sales were 7.1% lower than the prior-year quarter's $258.2 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 $0.36. The six earnings estimates compiled by S&P Capital IQ forecast $0.30 per share. GAAP EPS of $0.08 for Q3 were 33% lower than the prior-year quarter's $0.12 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 32.7%, 420 basis points better than the prior-year quarter. Operating margin was 6.6%, 240 basis points worse than the prior-year quarter. Net margin was 2.1%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $237.4 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $929.4 million. The average EPS estimate is $1.01.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 25 members out of 27 rating the stock outperform, and two members rating it underperform. Among seven CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Spansion a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spansion is outperform, with an average price target of $15.17.
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