The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Entropic Communications 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 contracted to zero.
Margins dropped across the board.
Entropic Communications reported revenue of $89.7 million. The 14 analysts polled by S&P Capital IQ hoped for revenue of $90.7 million on the same basis. GAAP reported sales were 60% higher than the prior-year quarter's $56.2 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 $0.08. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS contracted to zero from the prior-year quarter's $0.03.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.0%, 590 basis points worse than the prior-year quarter. Operating margin was 1.8%, 600 basis points worse than the prior-year quarter. Net margin was 0.1%, 400 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $89.5 million. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $386.2 million. The average EPS estimate is $0.39.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 255 members out of 285 rating the stock outperform, and 30 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Entropic Communications 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 Entropic Communications is outperform, with an average price target of $7.23.
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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. 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.