The 10-second takeaway
For the quarter ended June 28 (Q2), Freescale Semiconductor beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share grew. GAAP loss per share grew.
Gross margins shrank, operating margins grew, net margins dropped.
Freescale Semiconductor logged revenue of $1.04 billion. The 13 analysts polled by S&P Capital IQ predicted a top line of $1.02 billion 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 $0.09. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.07 per share. Non-GAAP EPS of $0.09 for Q2 were 29% higher than the prior-year quarter's $0.07 per share. GAAP EPS were -$0.25 for Q2 versus -$0.14 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 42.5%, 30 basis points worse than the prior-year quarter. Operating margin was 13.0%, 180 basis points better than the prior-year quarter. Net margin was -6.3%, 300 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.06 billion. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $4.15 billion. The average EPS estimate is $0.43.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 19 members out of 33 rating the stock outperform, and 14 members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Freescale Semiconductor a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Freescale Semiconductor is outperform, with an average price target of $17.63.
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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.