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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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.