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Rambus Meets on the Top Line, Misses Where it Counts

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

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Just the facts, Fool.

Rambus (Nasdaq: RMBS) reported earnings on April 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Rambus met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP loss per share dropped.

Margins expanded across the board.

Revenue details
Rambus reported revenue of $66.9 million. The two analysts polled by S&P Capital IQ predicted a top line of $67.8 million on the same basis. GAAP reported sales were 6.4% higher than the prior-year quarter's $62.9 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 -$0.09. The two earnings estimates compiled by S&P Capital IQ predicted -$0.04 per share. GAAP EPS were -$0.09 for Q1 versus -$0.25 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 92.1%, 350 basis points better than the prior-year quarter. Operating margin was 5.5%, much better than the prior-year quarter. Net margin was -15.6%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $61.7 million. On the bottom line, the average EPS estimate is -$0.07.

Next year's average estimate for revenue is $279.0 million. The average EPS estimate is $0.16.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 428 members out of 518 rating the stock outperform, and 90 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Rambus a green thumbs-up, and 21 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rambus is outperform, with an average price target of $7.33.

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Stocks Mentioned

Rambus Inc. Stock Quote
Rambus Inc.
RMBS
$24.53 (-0.16%) $0.04

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