The 10-second takeaway
For the quarter ended Dec. 31 (Q4), LSI beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Margins grew across the board.
LSI reported revenue of $600.1 million. The 16 analysts polled by S&P Capital IQ foresaw revenue of $590.5 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $523.1 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 $0.18. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.14 per share. GAAP EPS of $0.05 for Q4 were much higher than the prior-year quarter's $0.00 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 53.6%, 690 basis points better than the prior-year quarter. Operating margin was 6.5%, 330 basis points better than the prior-year quarter. Net margin was 4.8%, 510 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $576.2 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $2.49 billion. The average EPS estimate is $0.66.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LSI is outperform, with an average price target of $8.49.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere