PDF Solutions Beats Analyst Estimates on EPS

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PDF Solutions (NAS: PDFS) filed its 10-K on March 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PDF Solutions missed estimates on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP EPS grew significantly.

Gross margin dropped, and both operating margin and net margin grew.

Revenue details
PDF Solutions tallied revenue of $17.6 million. The one analyst polled by S&P Capital IQ hoped for sales of $18.3 million on the same basis. GAAP reported sales were 8.5% higher than the prior-year quarter's $16.2 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.12. The one earnings estimate compiled by S&P Capital IQ predicted $0.09 per share on the same basis. GAAP EPS of $0.08 for Q4 were much higher than the prior-year quarter's $0.01 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 54.2%, 260 basis points worse than the prior-year quarter. Operating margin was 12.2%, 310 basis points better than the prior-year quarter. Net margin was 12.0%, 1,000 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $18.5 million. On the bottom line, the average EPS estimate is $0.12.

Next year's average estimate for revenue is $81.5 million. The average EPS estimate is $0.70.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 40 members rating the stock outperform and three members rating it underperform. Among nine CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give PDF Solutions a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PDF Solutions is buy, with an average price target of $11.00.

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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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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