Golf Clap for Micrel

Seth Jayson, The Motley Fool
Updated

Micrel (NAS: MCRL) reported earnings on Jan. 26. Here are the numbers you need to know.

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

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

Margins shrank across the board.

Revenue details
Micrel recorded revenue of $58.8 million. The two analysts polled by S&P Capital IQ expected sales of $59.3 million. Sales were 22% lower than the prior-year quarter's $75.6 million.

anImage
anImage

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

EPS details
EPS came in at $0.08. The two earnings estimates compiled by S&P Capital IQ forecast $0.08 per share. GAAP EPS of $0.08 for Q4 were 64% lower than the prior-year quarter's $0.22 per share.

anImage
anImage

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 50.5%, 530 basis points worse than the prior-year quarter. Operating margin was 9.3%, 1,540 basis points worse than the prior-year quarter. Net margin was 8.5%, 960 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $61.8 million. On the bottom line, the average EPS estimate is $0.12.

Next year's average estimate for revenue is $275.7 million. The average EPS estimate is $0.60.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 114 members out of 120 rating the stock outperform, and six members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Micrel 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 Micrel is outperform, with an average price target of $16.50.

Is Micrel the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement