Mindspeed Technologies Beats Up on Analysts Yet Again

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.


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.


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 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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