Intersil Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Intersil (NAS: ISIL) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 30 (Q4), Intersil met expectations on revenues and beat expectations on earnings per share.

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

Gross margins dropped, operating margins shrank, net margins increased.

Revenue details
Intersil reported revenue of $165.8 million. The 16 analysts polled by S&P Capital IQ hoped for revenue of $166.5 million. Sales were 15% lower than the prior-year quarter's $194.0 million.

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

EPS details
Non-GAAP EPS came in at $0.16. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.13 per share on the same basis. GAAP EPS of $0.19 for Q4 were 9.5% lower than the prior-year quarter's $0.21 per share.

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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 56.7%, 210 basis points worse than the prior-year quarter. Operating margin was 6.3%, 550 basis points worse than the prior-year quarter. Net margin was 14.5%, 110 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $169.8 million. On the bottom line, the average EPS estimate is $0.14.

Next year's average estimate for revenue is $746.5 million. The average EPS estimate is $0.80.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 149 members out of 160 rating the stock outperform, and 11 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Intersil a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Intersil is hold, with an average price target of $12.25.

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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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