The Gory Details on Silicon Motion Technology's Double Fumble

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Silicon Motion Technology (NAS: SIMO) reported earnings on Feb. 4. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Silicon Motion Technology missed estimates on revenues and missed estimates on earnings per share.

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


Margins dropped across the board.

Revenue details
Silicon Motion Technology tallied revenue of $70.6 million. The seven analysts polled by S&P Capital IQ foresaw revenue of $72.5 million on the same basis. GAAP reported sales were 5.3% higher than the prior-year quarter's $67.1 million.

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

EPS details
EPS came in at $0.23. The seven earnings estimates compiled by S&P Capital IQ averaged $0.31 per share. GAAP EPS of $0.94 for Q4 were 154% higher than the prior-year quarter's $0.37 per share.

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 43.0%, 670 basis points worse than the prior-year quarter. Operating margin was 13.2%, 770 basis points worse than the prior-year quarter. Net margin was 11.2%, 700 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $67.9 million. On the bottom line, the average EPS estimate is $0.25.

Next year's average estimate for revenue is $319.0 million. The average EPS estimate is $1.61.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 779 members out of 798 rating the stock outperform, and 19 members rating it underperform. Among 188 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 185 give Silicon Motion Technology a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Silicon Motion Technology is buy, with an average price target of $24.00.

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The article The Gory Details on Silicon Motion Technology's Double Fumble originally appeared on Fool.com.

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. TMFDisclosureHere

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