The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Spreadtrum Communications beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share dropped significantly.
Margins contracted across the board.
Spreadtrum Communications reported revenue of $203.1 million. The seven analysts polled by S&P Capital IQ foresaw sales of $196.9 million on the same basis. GAAP reported sales were 5.7% higher than the prior-year quarter's $192.2 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 $0.47. The eight earnings estimates compiled by S&P Capital IQ predicted $0.52 per share. GAAP EPS of $0.47 for Q4 were 30% lower than the prior-year quarter's $0.67 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.1%, 370 basis points worse than the prior-year quarter. Operating margin was 13.0%, 480 basis points worse than the prior-year quarter. Net margin was 12.2%, 610 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $172.4 million. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $822.5 million. The average EPS estimate is $2.30.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 257 members out of 321 rating the stock outperform, and 64 members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Spreadtrum Communications a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spreadtrum Communications is outperform, with an average price target of $22.32.
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