The 10-second takeaway
For the quarter ended March 31 (Q1), Cavium met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP loss per share shrank.
Margins grew across the board.
Cavium booked revenue of $69.5 million. The 20 analysts polled by S&P Capital IQ foresaw sales of $69.3 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $52.7 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 $0.19. The 20 earnings estimates compiled by S&P Capital IQ predicted $0.18 per share. Non-GAAP EPS of $0.19 for Q1 were much higher than the prior-year quarter's $0.02 per share. GAAP EPS were -$0.06 for Q1 versus -$0.28 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 62.4%, much better than the prior-year quarter. Operating margin was -6.2%, much better than the prior-year quarter. Net margin was -4.6%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $74.1 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $308.1 million. The average EPS estimate is $0.97.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 79 members out of 113 rating the stock outperform, and 34 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Cavium a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cavium is outperform, with an average price target of $36.50.
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