Mindspeed Technologies Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

Mindspeed Technologies (NAS: MSPD) reported earnings on Jan. 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 30 (Q1), Mindspeed Technologies beat slightly on revenues and exceeded expectations on earnings per share.

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

Margins contracted across the board.

Revenue details
Mindspeed Technologies logged revenue of $33.9 million. The six analysts polled by S&P Capital IQ predicted revenue of $33.3 million. Sales were 16% lower than the prior-year quarter's $40.5 million.

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

EPS details
Non-GAAP EPS came in at -$0.07. The six earnings estimates compiled by S&P Capital IQ anticipated -$0.09 per share on the same basis. GAAP EPS were -$0.17 for Q1 against $0.05 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 58.1%, 670 basis points worse than the prior-year quarter. Operating margin was -16.0%, 2,120 basis points worse than the prior-year quarter. Net margin was -16.5%, 2,070 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $34.4 million. On the bottom line, the average EPS estimate is -$0.16.

Next year's average estimate for revenue is $153.1 million. The average EPS estimate is -$0.26.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 125 members out of 138 rating the stock outperform, and 13 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Mindspeed Technologies a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mindspeed Technologies is outperform, with an average price target of $6.92.

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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 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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