The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Microsemi met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Microsemi logged revenue of $263.1 million. The 12 analysts polled by S&P Capital IQ foresaw revenue of $265.6 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $227.3 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 $0.58. The nine earnings estimates compiled by S&P Capital IQ predicted $0.58 per share. GAAP EPS of $0.13 for Q4 were 73% lower than the prior-year quarter's $0.48 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 57.2%, 10 basis points worse than the prior-year quarter. Operating margin was 10.1%, 490 basis points worse than the prior-year quarter. Net margin was 4.4%, 1,410 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $271.9 million. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $1.12 billion. The average EPS estimate is $2.59.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 98 members out of 108 rating the stock outperform, and 10 members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Microsemi a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Microsemi is buy, with an average price target of $26.73.
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