The 10-second takeaway
For the quarter ended March 31 (Q1), LSI beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share shrank significantly. GAAP earnings per share dropped significantly.
Gross margins increased, operating margins grew, net margins dropped.
LSI reported revenue of $568.6 million. The 14 analysts polled by S&P Capital IQ predicted net sales of $555.1 million on the same basis. GAAP reported sales were 8.6% lower than the prior-year quarter's $622.4 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 $0.17. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.12 per share. Non-GAAP EPS of $0.17 for Q1 were 15% lower than the prior-year quarter's $0.20 per share. GAAP EPS of $0.03 for Q1 were 77% lower than the prior-year quarter's $0.13 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 54.4%, 830 basis points better than the prior-year quarter. Operating margin was 5.0%, 80 basis points better than the prior-year quarter. Net margin was 3.2%, 890 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $582.1 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $2.42 billion. The average EPS estimate is $0.60.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LSI is outperform, with an average price target of $8.41.
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