The 10-second takeaway
For the quarter ended Dec. 31 (Q4), EZchip Semiconductor beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Margins grew across the board.
EZchip Semiconductor notched revenue of $15.2 million. The 10 analysts polled by S&P Capital IQ wanted to see revenue of $14.0 million on the same basis. GAAP reported sales were 6.6% higher than the prior-year quarter's $14.3 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 $0.26. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.21 per share. GAAP EPS were $0.17 for Q4 against -$0.23 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 83.2%, 690 basis points better than the prior-year quarter. Operating margin was 28.0%, 390 basis points better than the prior-year quarter. Net margin was 31.8%, 7,350 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $15.2 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $74.2 million. The average EPS estimate is $1.24.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 244 members out of 257 rating the stock outperform, and 13 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give EZchip Semiconductor a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EZchip Semiconductor is outperform, with an average price target of $39.00.
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