Are You Expecting This from Sigma Designs?

Sigma Designs (NAS: SIGM) is expected to report Q2 earnings around Aug. 21. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Sigma Designs's revenues will grow 39.0% and EPS will remain in the red.

The average estimate for revenue is $64.9 million. On the bottom line, the average EPS estimate is -$0.31.


Revenue details
Last quarter, Sigma Designs logged revenue of $40.3 million. GAAP reported sales were 34% lower than the prior-year quarter's $60.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$0.26. GAAP EPS were -$0.42 for Q1 against -$0.18 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 52.4%, 330 basis points better than the prior-year quarter. Operating margin was -34.7%, 2,520 basis points worse than the prior-year quarter. Net margin was -34.0%, 2,460 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $253.4 million. The average EPS estimate is -$0.96.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,344 members out of 1,392 rating the stock outperform, and 48 members rating it underperform. Among 310 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 297 give Sigma Designs a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sigma Designs is hold, with an average price target of $6.50.

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The article Are You Expecting This from Sigma Designs? originally appeared on Fool.com.

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 positions in the stocks mentioned above. Motley Fool newsletter services recommend Sigma Designs. 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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