Rambus Goes Negative

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Rambus (NAS: RMBS) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Rambus beat slightly on revenues and whiffed on earnings per share.

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

Margins contracted across the board.

Revenue details
Rambus booked revenue of $83.4 million. The one analyst polled by S&P Capital IQ expected revenue of $82.0 million. Sales were 8.3% lower than the prior-year quarter's $90.9 million.

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

EPS details
EPS came in at -$0.26. The one earnings estimate compiled by S&P Capital IQ forecast -$0.03 per share. GAAP EPS were -$0.26 for Q4 versus $0.29 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 91.1%, 680 basis points worse than the prior-year quarter. Operating margin was -5.6%, 4,870 basis points worse than the prior-year quarter. Net margin was -34.4%, 7,080 basis points worse than the prior-year quarter.

Looking ahead

Next year's average estimate for revenue is $313.0 million. The average EPS estimate is -$0.16.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 443 members out of 529 rating the stock outperform, and 86 members rating it underperform. Among 88 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 give Rambus a green thumbs-up, and 18 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rambus is outperform, with an average price target of $17.25.

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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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