The 10-second takeaway
For the quarter ended June 30 (Q2), Entropic Communications met expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share contracted significantly. GAAP earnings per share.
Margins contracted across the board.
Entropic Communications notched revenue of $70.6 million. The nine analysts polled by S&P Capital IQ predicted a top line of $70.1 million on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $83.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.01. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.00 per share. Non-GAAP EPS of $0.01 for Q2 were 89% lower than the prior-year quarter's $0.09 per share. GAAP EPS were -$0.44 for Q2 versus $0.00 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 48.5%, 310 basis points worse than the prior-year quarter. Operating margin was -8.6%, much worse than the prior-year quarter. Net margin was -56.5%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $74.0 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $298.0 million. The average EPS estimate is $0.05.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 243 members out of 273 rating the stock outperform, and 30 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Entropic Communications a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Entropic Communications is hold, with an average price target of $5.39.
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