Standard Microsystems Whiffs on Earnings
Jan 10th 2012 9:27AM
Updated Jan 10th 2012 12:02PM
Standard Microsystems (NAS: SMSC) reported earnings on Jan. 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Nov. 30 (Q3), Standard Microsystems met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly, and earnings per share shrank.
Gross margins shrank, operating margins grew, and net margins increased.
Standard Microsystems logged revenue of $106 million. The seven analysts polled by S&P Capital IQ wanted to see sales of $107 million. Sales were 0.8% lower than the prior-year quarter's $107 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.21. The six earnings estimates compiled by S&P Capital IQ forecast $0.34 per share on the same basis. GAAP EPS were -$0.15 for Q3 against -$0.20 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 50.1%, 200 basis points worse than the prior-year quarter. Operating margin was 0.1%, 590 basis points better than the prior-year quarter. Net margin was -3.1%, 120 basis points better than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $96 million. On the bottom line, the average EPS estimate is -$0.17.
Next year's average estimate for revenue is $422 million. The average EPS estimate is $0.88.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 63 members out of 67 rating the stock outperform, and four members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Standard Microsystems a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Standard Microsystems is buy, with an average price target of $29.83.
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At the time this article was published 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. 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.
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