Charting Applied Micro Circuits' Latest Earnings Release

Applied Micro Circuits (NAS: AMCC) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Applied Micro Circuits met expectations on revenue and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted, and GAAP loss per share expanded.

Margins contracted across the board.

Revenue details
Applied Micro Circuits tallied revenue of $56.3 million. The six analysts polled by S&P Capital IQ expected to see a top line of $56.6 million. Sales were 9.6% lower than the prior-year quarter's $62.4 million.


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

EPS details
Non-GAAP EPS came in at -$0.02. The six earnings estimates compiled by S&P Capital IQ predicted -$0.04 per share on the same basis. GAAP EPS were -$0.12 for Q3 against -$0.03 per share for the prior-year quarter.


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 57.8%, 390 basis points worse than the prior-year quarter. Operating margin was -13.8%, 670 basis points worse than the prior-year quarter. Net margin was -12.6%, 950 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $59.0 million. On the bottom line, the average EPS estimate is -$0.01.

Next year's average estimate for revenue is $242.0 million. The average EPS estimate is -$0.02.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 127 members out of 149 rating the stock outperform, and 22 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Applied Micro Circuits 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 Applied Micro Circuits is outperform, with an average price target of $9.79.

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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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