Spansion Beats on EPS But GAAP Results Lag
Spansion (NYS: CODE) reported earnings on Jan. 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 25 (Q4), Spansion beat expectations on revenue and missed on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly, and GAAP earnings per share contracted.
Margins dropped across the board.
Spansion logged revenue of $220.0 million. The three analysts polled by S&P Capital IQ hoped for revenue of $214.7 million. Sales were 33% lower than the prior-year quarter's $327.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at -$0.12. The four earnings estimates compiled by S&P Capital IQ predicted -$0.11 per share on the same basis. GAAP EPS were -$1.25 for Q4 against -$0.22 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 1.0%, 5,220 basis points worse than the prior-year quarter. Operating margin was -23.4%, 5,520 basis points worse than the prior-year quarter. Net margin was -33.8%, 2,960 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $217.6 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $1.05 billion. The average EPS estimate is $0.98.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 19 members out of 22 rating the stock outperform, and three members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all six give Spansion a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spansion is hold, with an average price target of $17.40.
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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. 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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