Please ensure Javascript is enabled for purposes of website accessibility

Cypress Semiconductor Beats on Both Top and Bottom Lines

By Seth Jayson - Updated Apr 10, 2017 at 1:47PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Just the facts, Fool.

Cypress Semiconductor (Nasdaq: CY) reported earnings on April 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Cypress Semiconductor beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped significantly. GAAP loss per share expanded.

Margins contracted across the board.

Revenue details
Cypress Semiconductor logged revenue of $172.7 million. The 13 analysts polled by S&P Capital IQ anticipated revenue of $167.6 million on the same basis. GAAP reported sales were 6.7% lower than the prior-year quarter's $185.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.03. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. Non-GAAP EPS of $0.03 for Q1 were 75% lower than the prior-year quarter's $0.12 per share. GAAP EPS were -$0.19 for Q1 compared to -$0.13 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 45.8%, 380 basis points worse than the prior-year quarter. Operating margin was -10.3%, 90 basis points worse than the prior-year quarter. Net margin was -16.3%, 580 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $182.3 million. On the bottom line, the average EPS estimate is $0.07.

Next year's average estimate for revenue is $765.0 million. The average EPS estimate is $0.42.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 989 members out of 1,033 rating the stock outperform, and 44 members rating it underperform. Among 179 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 167 give Cypress Semiconductor a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cypress Semiconductor is outperform, with an average price target of $11.53.

Is Cypress Semiconductor the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Cypress Semiconductor Corporation Stock Quote
Cypress Semiconductor Corporation

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.