Integrated Device Technology Beats Estimates but Has a Big Earnings Drop
Integrated Device Technology (NAS: IDTI) reported earnings on Jan. 30. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 1 (Q3), Integrated Device Technology met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly, and GAAP earnings per share improved significantly.
Margins dropped across the board.
Integrated Device Technology recorded revenue of $120.0 million. The five analysts polled by S&P Capital IQ expected sales of $120.7 million. Sales were 22% lower than the prior-year quarter's $153.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.06. The three earnings estimates compiled by S&P Capital IQ forecast $0.04 per share on the same basis. GAAP EPS were -$0.05 for Q3 versus $0.07 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 53.2%, 70 basis points worse than the prior-year quarter. Operating margin was 1.5%, 470 basis points worse than the prior-year quarter. Net margin was -5.2%, 1,210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $120.0 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $530.1 million. The average EPS estimate is $0.32.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 168 members out of 175 rating the stock outperform, and seven members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all of them give Integrated Device Technology a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Integrated Device Technology is outperform, with an average price target of $7.10.
Over the decades, small-cap stocks like Integrated Device Technology 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 Integrated Device Technology 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.