The 10-second takeaway
For the quarter ended Dec. 30 (Q1), Microsemi missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share expanded.
Margins expanded across the board.
Microsemi reported revenue of $247.6 million. The 12 analysts polled by S&P Capital IQ hoped for sales of $252.1 million on the same basis. GAAP reported sales were 2.8% higher than the prior-year quarter's $240.9 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 $0.50. The nine earnings estimates compiled by S&P Capital IQ predicted $0.52 per share. GAAP EPS were $0.16 for Q1 versus -$0.52 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 57.6%, 540 basis points better than the prior-year quarter. Operating margin was 10.7%, 800 basis points better than the prior-year quarter. Net margin was 5.7%, 2,420 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $253.8 million. On the bottom line, the average EPS estimate is $0.53.
Next year's average estimate for revenue is $1.03 billion. The average EPS estimate is $2.27.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 94 members out of 104 rating the stock outperform, and 10 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Microsemi a green thumbs-up, and three 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 $25.59.
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