Mellanox Technologies Beats Up on Analysts Yet Again
Mellanox Technologies (NAS: MLNX) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Mellanox Technologies beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and earnings per share improved.
Gross margins shrank, operating margins contracted, net margins improved.
Mellanox Technologies logged revenue of $72.7 million. The 11 analysts polled by S&P Capital IQ foresaw net sales of $71.4 million. Sales were 79% higher than the prior-year quarter's $40.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.31. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.29 per share on the same basis. GAAP EPS were $0.11 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.
For the quarter, gross margin was 64.0%, 780 basis points worse than the prior-year quarter. Operating margin was 8.1%, 110 basis points worse than the prior-year quarter. Net margin was 6.4%, 770 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $72.6 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $314.2 million. The average EPS estimate is $1.40.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 140 members out of 153 rating the stock outperform, and 13 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Mellanox Technologies a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mellanox Technologies is outperform, with an average price target of $36.63.
Over the decades, small-cap stocks like Mellanox Technologies have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Mellanox Technologies to My Watchlist.
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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.