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Does The Street Have Silicon Motion Technology Figured Out?

By Seth Jayson – Updated Apr 10, 2017 at 1:46PM

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Checking expectations

Silicon Motion Technology (Nasdaq: SIMO) is expected to report Q1 earnings on April 25. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Silicon Motion Technology's revenues will shrink -11.5% and EPS will decrease -46.3%.

The average estimate for revenue is $56.7 million. On the bottom line, the average EPS estimate is $0.22.

Revenue details
Last quarter, Silicon Motion Technology tallied revenue of $70.6 million. GAAP reported sales were 5.3% higher than the prior-year quarter's $67.1 million.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.36. GAAP EPS of $0.24 for Q4 were 35% lower than the prior-year quarter's $0.37 per share.

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

Recent performance
For the preceding quarter, gross margin was 43.0%, 670 basis points worse than the prior-year quarter. Operating margin was 13.2%, 770 basis points worse than the prior-year quarter. Net margin was 11.2%, 700 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $309.0 million. The average EPS estimate is $1.84.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 790 members out of 811 rating the stock outperform, and 21 members rating it underperform. Among 157 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 154 give Silicon Motion Technology a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Silicon Motion Technology is buy, with an average price target of $24.00.

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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. 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.

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Stocks Mentioned

Silicon Motion Technology Stock Quote
Silicon Motion Technology
SIMO
$60.74 (-0.83%) $0.51

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