Charting PMC-Sierra's Latest Earnings Release

PMC-Sierra (NAS: PMCS) reported earnings Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PMC-Sierra missed slightly on revenues and met expectations on earnings per share.

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

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

Revenue details
PMC-Sierra notched revenue of $152.6 million. The 11 analysts polled by S&P Capital IQ wanted to see a top line of $155.3 million. Sales were 4.2% lower than the prior-year quarter's $159.3 million.


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

EPS details
Non-GAAP EPS came in at $0.13. The four earnings estimates compiled by S&P Capital IQ averaged $0.13 per share on the same basis. GAAP EPS of $0.12 for Q4 were 200% higher than the prior-year quarter's $0.04 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 69.1%, 100 basis points better than the prior-year quarter. Operating margin was 7.0%, 760 basis points worse than the prior-year quarter. Net margin was 18.6%, 1,170 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $156.0 million. On the bottom line, the average EPS estimate is $0.11.

Next year's average estimate for revenue is $676.8 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 221 members out of 241 rating the stock outperform, and 20 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give PMC-Sierra a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PMC-Sierra is hold, with an average price target of $7.80.

Is PMC-Sierra the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.