Golf Clap for Microsemi

Seth Jayson, The Motley Fool
Updated

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

The 10-second takeaway
For the quarter ended Jan. 1 (Q1), Microsemi met expectations on revenues and met expectations on earnings per share.

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

Margins dropped across the board.

Revenue details
Microsemi booked revenue of $240.9 million. The 12 analysts polled by S&P Capital IQ predicted a top line of $240.8 million. Sales were 31% higher than the prior-year quarter's $184.4 million.

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

EPS details
Non-GAAP EPS came in at $0.39. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.39 per share on the same basis. GAAP EPS were $0.48 for Q1 versus -$0.02 per share for the prior-year quarter.

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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 52.2%, 140 basis points worse than the prior-year quarter. Operating margin was 5.3%, 690 basis points worse than the prior-year quarter. Net margin was -18.5%, 1,780 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $248.0 million. On the bottom line, the average EPS estimate is $0.45.

Next year's average estimate for revenue is $1.01 billion. The average EPS estimate is $1.90.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 99 members out of 110 rating the stock outperform, and 11 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Microsemi a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Microsemi is buy, with an average price target of $25.64.

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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 don't 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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