The 10-second takeaway
For the quarter ended Dec. 31 (Q4), STEC missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP loss per share grew. GAAP loss per share grew.
Margins shrank across the board.
STEC logged revenue of $35.1 million. The seven analysts polled by S&P Capital IQ expected sales of $38.0 million on the same basis. GAAP reported sales were 40% lower than the prior-year quarter's $58.1 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 -$0.35. The six earnings estimates compiled by S&P Capital IQ predicted -$0.32 per share. Non-GAAP EPS were -$0.35 for Q4 against -$0.02 per share for the prior-year quarter. GAAP EPS were -$0.50 for Q4 versus -$0.08 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 32.2%, 890 basis points worse than the prior-year quarter. Operating margin was -68.3%, much worse than the prior-year quarter. Net margin was -65.9%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $21.8 million. On the bottom line, the average EPS estimate is -$0.43.
Next year's average estimate for revenue is $120.0 million. The average EPS estimate is -$1.50.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on STEC is hold, with an average price target of $5.35.
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