Entropic Communications Beats Up on Analysts Yet Again

Entropic Communications (NAS: ENTR) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Entropic Communications met expectations on revenue and beat expectations on earnings per share.

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

Gross margins improved, operating margins shrank, and net margins dropped.

Revenue details
Entropic Communications reported revenue of $56.2 million. The 10 analysts polled by S&P Capital IQ expected revenue of $56.0 million. Sales were 21% lower than the prior-year quarter's $70.8 million.


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

EPS details
Non-GAAP EPS came in at $0.12. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.11 per share on the same basis. GAAP EPS of $0.03 for Q4 were 95% lower than the prior-year quarter's $0.55 per share.


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 54.9%, 120 basis points better than the prior-year quarter. Operating margin was 7.8%, 1,620 basis points worse than the prior-year quarter. Net margin was 4.1%, 6,450 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $56.1 million. On the bottom line, the average EPS estimate is $0.11.

Next year's average estimate for revenue is $246.0 million. The average EPS estimate is $0.53.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 278 members out of 312 rating the stock outperform, and 34 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Entropic Communications a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Entropic Communications is outperform, with an average price target of $7.22.

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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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