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.
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