The 10-second takeaway
For the quarter ended Dec. 30 (Q4), Spansion missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share increased.
Margins increased across the board.
Spansion booked revenue of $224.0 million. The five analysts polled by S&P Capital IQ expected to see revenue of $234.3 million on the same basis. GAAP reported sales were 1.8% higher than the prior-year quarter's $220.0 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 $0.34. The six earnings estimates compiled by S&P Capital IQ forecast $0.36 per share. GAAP EPS were $0.11 for Q4 compared to -$1.25 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 32.1%, 3,550 basis points better than the prior-year quarter. Operating margin was 6.7%, 3,450 basis points better than the prior-year quarter. Net margin was 3.1%, 3,690 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $200.0 million. On the bottom line, the average EPS estimate is $0.02.
Next year's average estimate for revenue is $960.0 million. The average EPS estimate is $1.15.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 23 members out of 25 rating the stock outperform, and two members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Spansion a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spansion is outperform, with an average price target of $15.40.
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