The 10-second takeaway
For the quarter ended March 31 (Q1), Entropic Communications met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share shrank to zero. GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Entropic Communications notched revenue of $74.5 million. The 13 analysts polled by S&P Capital IQ wanted to see a top line of $75.1 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $59.1 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 $0.00. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.00 per share. Non-GAAP EPS contracted to zero from the prior-year quarter's $0.00. GAAP EPS were -$0.03 for Q1 against $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 46.8%, 940 basis points worse than the prior-year quarter. Operating margin was -9.0%, much worse than the prior-year quarter. Net margin was -3.2%, 980 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $76.2 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $303.6 million. The average EPS estimate is $0.07.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 245 members out of 275 rating the stock outperform, and 30 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Entropic Communications a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Entropic Communications is outperform, with an average price target of $6.32.
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