RF Micro Devices Whiffs on Earnings

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RF Micro Devices (NAS: RFMD) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), RF Micro Devices met expectations on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly, and earnings per share contracted to a loss.

Margins dropped across the board.

Revenue details
RF Micro Devices reported revenue of $225 million. The 17 analysts polled by S&P Capital IQ expected revenue of $225 million. Sales were 19% lower than the prior-year quarter's $279 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.02. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.03 per share on the same basis. GAAP EPS were -$0.03 for Q3 against $0.13 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.2%, 880 basis points worse than the prior-year quarter. Operating margin was -1.0%, 1,660 basis points worse than the prior-year quarter. Net margin was -4.2%, 1,740 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $204 million. On the bottom line, the average EPS estimate is $0.03.

Next year's average estimate for revenue is $888 million. The average EPS estimate is $0.23.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 720 members out of 762 rating the stock outperform, and 43 members rating it underperform. Among 126 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 121 give RF Micro Devices a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RF Micro Devices is outperform, with an average price target of $8.38.

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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 ofMotley 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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