Cypress Semiconductor Outruns Estimates Again

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Cypress Semiconductor (NAS: CY) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 1 (Q4), Cypress Semiconductor beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased, and GAAP earnings per share expanded significantly.

Gross margins shrank, operating margins shrank, net margins expanded.

Revenue details
Cypress Semiconductor tallied revenue of $242.4 million. The 16 analysts polled by S&P Capital IQ predicted a top line of $236.7 million. Sales were 10% higher than the prior-year quarter's $220.3 million.

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

EPS details
Non-GAAP EPS came in at $0.32. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.29 per share on the same basis. GAAP EPS of $0.22 for Q4 were 246% higher than the prior-year quarter's $0.05 per share.

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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 53.6%, 520 basis points worse than the prior-year quarter. Operating margin was 10.9%, 240 basis points worse than the prior-year quarter. Net margin was 12.8%, 890 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $206.1 million. On the bottom line, the average EPS estimate is $0.17.

Next year's average estimate for revenue is $954.0 million. The average EPS estimate is $1.19.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,021 members out of 1,055 rating the stock outperform, and 34 members rating it underperform. Among 286 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 279 give Cypress Semiconductor a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cypress Semiconductor is outperform, with an average price target of $20.47.

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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. Motley Fool newsletter services have recommended buying shares of Cypress Semiconductor. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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