The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Mellanox Technologies 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 grew significantly.
Margins expanded across the board.
Mellanox Technologies notched revenue of $122.1 million. The 15 analysts polled by S&P Capital IQ hoped for a top line of $121.8 million on the same basis. GAAP reported sales were 68% higher than the prior-year quarter's $72.7 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 $0.69. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.68 per share. GAAP EPS of $0.41 for Q4 were 273% higher than the prior-year quarter's $0.11 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 68.1%, 410 basis points better than the prior-year quarter. Operating margin was 19.6%, 1,760 basis points better than the prior-year quarter. Net margin was 15.1%, 870 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $131.2 million. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $586.1 million. The average EPS estimate is $3.52.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 192 members out of 217 rating the stock outperform, and 25 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Mellanox Technologies a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mellanox Technologies is outperform, with an average price target of $108.08.
Is Mellanox Technologies the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Mellanox Technologies to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Why Shares of Mellanox Technologies Jumped Today
An activist investor wants to make some changes.
Why Mellanox Technologies Stock Got Crushed Today
First-quarter sales were hit by delays.
Are Intel Corporation's Gross Margins Above Data Center Chip Industry Average?
No, but that's probably the wrong question to ask, anyway.