The 10-second takeaway
For the quarter ended March 29 (Q1), Freescale Semiconductor beat slightly on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP loss per share contracted. GAAP loss per share expanded.
Margins contracted across the board.
Freescale Semiconductor notched revenue of $981.0 million. The 15 analysts polled by S&P Capital IQ predicted a top line of $966.1 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 -$0.03. The 12 earnings estimates compiled by S&P Capital IQ predicted -$0.09 per share. Non-GAAP EPS were -$0.03 for Q1 compared to -$0.04 per share for the prior-year quarter. GAAP EPS were -$0.19 for Q1 compared to -$0.04 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 40.6%, 170 basis points worse than the prior-year quarter. Operating margin was 10.6%, 160 basis points worse than the prior-year quarter. Net margin was -4.9%, 400 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.01 billion. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $4.10 billion. The average EPS estimate is $0.42.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 20 members out of 31 rating the stock outperform, and 11 members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give Freescale Semiconductor a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Freescale Semiconductor is outperform, with an average price target of $15.38.
Is Freescale 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.
- Add Freescale Semiconductor to My Watchlist.
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. Try any of our Foolish newsletter services free for 30 days. 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.