The 10-second takeaway
For the quarter ended June 30 (Q2), Rambus beat slightly on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP loss per share dropped.
Margins increased across the board.
Rambus chalked up revenue of $57.9 million. The three analysts polled by S&P Capital IQ hoped for revenue of $56.9 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 -$0.06. The three earnings estimates compiled by S&P Capital IQ forecast -$0.13 per share. GAAP EPS were -$0.06 for Q2 compared to -$0.29 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 87.3%, 40 basis points better than the prior-year quarter. Operating margin was 9.7%, much better than the prior-year quarter. Net margin was -11.1%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $75.8 million. On the bottom line, the average EPS estimate is -$0.02.
Next year's average estimate for revenue is $274.8 million. The average EPS estimate is -$0.24.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 424 members out of 517 rating the stock outperform, and 93 members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Rambus a green thumbs-up, and 17 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rambus is outperform, with an average price target of $9.25.
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