The 10-second takeaway
For the quarter ended Dec. 28 (Q1), Mindspeed Technologies beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Margins grew across the board.
Mindspeed Technologies logged revenue of $44.4 million. The six analysts polled by S&P Capital IQ hoped for revenue of $38.2 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $33.9 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 $0.16. The five earnings estimates compiled by S&P Capital IQ predicted -$0.03 per share. GAAP EPS were $0.03 for Q1 compared to -$0.17 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 66.0%, 790 basis points better than the prior-year quarter. Operating margin was 9.2%, 2,520 basis points better than the prior-year quarter. Net margin was 2.4%, 1,890 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $37.9 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $159.2 million. The average EPS estimate is $0.01.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 123 members out of 138 rating the stock outperform, and 15 members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Mindspeed Technologies a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mindspeed Technologies is outperform, with an average price target of $5.18.
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