Standard Microsystems Earnings Preview

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Standard Microsystems (NAS: SMSC) beat estimates by $0.14 last quarter, and investors are hoping it can beat them again. The company will unveil its latest earnings Tuesday. Standard Microsystems designs and sells silicon-based integrated circuits that utilize analog and mixed-signal technologies.

What analysts say:

  • Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Standard Microsystems' rating hasn't changed over the past three months.
  • Revenue Forecasts: On average, analysts predict $112.7 million in revenue this quarter. That would represent a rise of 8.3% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.21 per share.

What our community says:
CAPS All-Stars are solidly backing the stock with 91.3% giving it an "outperform" rating. The community at large concurs with the Al- Stars with 95.5% granting it a rating of "outperform." Fools have embraced Standard Microsystems, though the message boards have been quiet lately with only 21 posts in the past 30 days. Even with a robust four out of five stars, Standard Microsystems' CAPS rating falls a little short of the community's upbeat outlook.

Management:
Revenue has now gone up for three straight quarters.

Now, let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Gross Margin

53.9%

48.1%

52.1%

56.4%

Operating Margin

7.4%

2.7%

(7.6%)

21.5%

Net Margin

6.0%

1.7%

(4.3%)

12.4%

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At the time this article was published

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