The 10-second takeaway
For the quarter ended June 30 (Q1), NVE whiffed on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. GAAP earnings per share contracted significantly.
Gross margins grew, operating margins contracted, net margins dropped.
NVE tallied revenue of $6.2 million. The one analyst polled by S&P Capital IQ predicted sales of $7.0 million on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $7.5 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 $0.53. The one earnings estimate compiled by S&P Capital IQ anticipated $0.60 per share. GAAP EPS of $0.53 for Q1 were 23% lower than the prior-year quarter's $0.69 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 77.7%, 190 basis points better than the prior-year quarter. Operating margin was 53.1%, 630 basis points worse than the prior-year quarter. Net margin was 41.6%, 370 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $7.4 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $30.0 million. The average EPS estimate is $2.62.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 277 members out of 371 rating the stock outperform, and 94 members rating it underperform. Among 91 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give NVE a green thumbs-up, and 43 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NVE is buy, with an average price target of $61.00.
Is NVE the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add NVE to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.