RF Micro Devices Earnings Preview

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RF Micro Devices (NAS: RFMD) beat estimates by one cent last quarter and investors are hoping it can beat them again. The company will unveil its latest earnings on Tuesday, Jan. 24. RF Micro Devices designs and manufactures high-performance radio frequency components and compound semiconductors technologies.

What analysts say:

  • Buy, sell, or hold?: Analysts are bullish on RF Micro Devices as eight analysts rate it as a buy and only two analysts rate it as a sell. Analysts don't like RF Micro Devices as much as competitor Hittite Microwave overall. While analysts still rate the stock a hold, they are a little more optimistic about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $225 million in revenue this quarter. That would represent a decline of 19.3% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.02 per share. Estimates range from breaking even to a profit of $0.08.

What our community says:
CAPS All-Stars are solidly behind the stock with 96% granting it an "outperform" rating. The community at large concurs with the All-Stars with 94.4% giving it a rating of "outperform." Fools are gung-ho about RF Micro Devices and haven't been shy with their opinions lately, logging 245 posts in the past 30 days. Even with a robust four out of five stars, RF Micro Devices' CAPS rating falls a little short of the community's upbeat outlook.

Management:
RF Micro Devices' income has fallen year over year by an average of 22.5% over the past five quarters. Revenue has fallen for the past three 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

Q2

Q1

Q4

Q3

Gross Margin

37.1%

36.5%

35.4%

37.0%

Operating Margin

9.4%

6.9%

6.2%

15.5%

Net Margin

5.9%

4.2%

11.3%

13.2%

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