The 10-second takeaway
For the quarter ended Dec. 30 (Q4), Cypress Semiconductor beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share shrank to a loss.
Margins shrank across the board.
Cypress Semiconductor logged revenue of $180.3 million. The 15 analysts polled by S&P Capital IQ wanted to see a top line of $178.1 million on the same basis. GAAP reported sales were 26% lower than the prior-year quarter's $242.4 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 $0.05. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.04 per share. GAAP EPS were -$0.17 for Q4 versus $0.19 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 46.4%, 730 basis points worse than the prior-year quarter. Operating margin was -9.3%, 2,220 basis points worse than the prior-year quarter. Net margin was -13.4%, 2,670 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $174.6 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $782.0 million. The average EPS estimate is $0.57.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 986 members out of 1,030 rating the stock outperform, and 44 members rating it underperform. Among 208 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 196 give Cypress Semiconductor a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cypress Semiconductor is outperform, with an average price target of $11.88.
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