Tessera Technologies Beats Expectations but Takes a Step Back Anyway
Tessera Technologies (NAS: TSRA) reported earnings on Jan. 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Tessera Technologies met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Tessera Technologies notched revenue of $56.7 million. The two analysts polled by S&P Capital IQ wanted to see revenue of $56.5 million. Sales were 29% lower than the prior-year quarter's $80.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.05. The two earnings estimates compiled by S&P Capital IQ forecast $0.02 per share. GAAP EPS of $0.05 for Q4 were 82% lower than the prior-year quarter's $0.27 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 87.6%, 580 basis points worse than the prior-year quarter. Operating margin was 16.1%, 2,820 basis points worse than the prior-year quarter. Net margin was 4.7%, 1,210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $58.9 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $264.2 million. The average EPS estimate is $0.64.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 395 members out of 425 rating the stock outperform, and 30 members rating it underperform. Among 127 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 118 give Tessera Technologies a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tessera Technologies is outperform, with an average price target of $23.25.
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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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