The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Spreadtrum Communications beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Spreadtrum Communications reported revenue of $187.9 million. The five analysts polled by S&P Capital IQ wanted to see revenue of $183.4 million on the same basis. GAAP reported sales were 1.7% higher than the prior-year quarter's $184.8 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 $0.44. The six earnings estimates compiled by S&P Capital IQ anticipated $0.49 per share. GAAP EPS of $0.44 for Q3 were 41% lower than the prior-year quarter's $0.75 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 37.3%, 450 basis points worse than the prior-year quarter. Operating margin was 13.4%, 800 basis points worse than the prior-year quarter. Net margin was 12.4%, 890 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $183.6 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $709.3 million. The average EPS estimate is $2.05.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 266 members out of 334 rating the stock outperform, and 68 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Spreadtrum Communications a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spreadtrum Communications is outperform, with an average price target of $21.74.
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