Charting LSI's Earnings

LSI (NYS: LSI) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), LSI met expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly, and earnings per share improved to zero.

Gross margins grew, operating margins dropped, net margins grew.

Revenue details
LSI reported revenue of $523.1 million. The 12 analysts polled by S&P Capital IQ looked for a top line of $526.1 million. Sales were 21% lower than the prior-year quarter's $664.5 million.


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

EPS details
Non-GAAP EPS came in at $0.13. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.10 per share on the same basis. GAAP EPS were $0.00 for Q4 against -$0.02 per share for the prior-year quarter.


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 49.5%, 650 basis points better than the prior-year quarter. Operating margin was 3.0%, 190 basis points worse than the prior-year quarter. Net margin was -0.3%, 170 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $511.3 million. On the bottom line, the average EPS estimate is $0.09.

Next year's average estimate for revenue is $2.19 billion. The average EPS estimate is $0.50.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LSI is outperform, with an average price target of $7.55.

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At the time thisarticle 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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