The 10-second takeaway
For the quarter ended March 31 (Q1), Spreadtrum Communications beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased. GAAP earnings per share dropped significantly.
Margins shrank across the board.
Spreadtrum Communications booked revenue of $189.0 million. The six analysts polled by S&P Capital IQ predicted a top line of $184.3 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $161.1 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 $0.50. The five earnings estimates compiled by S&P Capital IQ predicted $0.41 per share. Non-GAAP EPS of $0.50 for Q1 were 6.4% higher than the prior-year quarter's $0.47 per share. GAAP EPS of $0.39 for Q1 were 19% lower than the prior-year quarter's $0.48 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 37.3%, 70 basis points worse than the prior-year quarter. Operating margin was 11.9%, 420 basis points worse than the prior-year quarter. Net margin was 10.7%, 440 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $222.4 million. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $923.0 million. The average EPS estimate is $2.51.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 260 members out of 327 rating the stock outperform, and 67 members rating it underperform. Among 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Spreadtrum Communications a green thumbs-up, and 15 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spreadtrum Communications is outperform, with an average price target of $23.39.
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