Tessera Technologies Earnings Preview

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Watch Tessera Technologies' (NAS: TSRA) earnings report to see if it can beat analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Thursday, Jan. 26. Tessera Technologies is a technology-driven company that invests in, licenses and delivers miniaturization technologies for next-generation electronic devices.

What analysts say:

  • Buy, sell, or hold?: Half of analysts think investors should stand pat on Tessera Technologies while the remaining half rate the stock as a buy. Analysts like Tessera Technologies better than competitor Aeroflex overall. One out of five analysts rate Aeroflex a buy compared to one of two for Tessera Technologies. Analysts still rate the stock a hold, but they are a bit more wary about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $57.1 million in revenue this quarter. That would represent a decline of 29% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.06 per share. Estimates range from $0.06 to $0.07.

What our community says:
CAPS All-Stars are solidly backing the stock with 92.8% assigning it an "outperform" rating. The community at large backs the All-Stars with 92.9% giving it a rating of "outperform." Fools are bullish on Tessera Technologies and haven't been shy with their opinions lately, logging 183 posts in the past 30 days. Even with a robust four out of five stars, Tessera Technologies' CAPS rating falls a little short of the community's upbeat outlook.

Management:
Revenue has fallen in the past two quarters. The company's gross margin shrank by 2.7 percentage points in the last quarter. Revenue fell 27.7% while cost of sales rose 1.9% to $5.6 million from a year earlier.

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. 

QuarterQ3Q2Q1Q4
Gross Margin90.6%92.4%91.9%93.4%
Operating Margin(79.2%)23.5%23.8%31.6%
Net Margin(75.4%)16.4%16.5%16.8%

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