Hittite Microwave Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Hittite Microwave (NAS: HITT) reported earnings on Feb. 14. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share didn't move.

Gross margins dropped, operating margins contracted, net margins expanded.

Revenue details
Hittite Microwave reported revenue of $68.1 million. The four analysts polled by S&P Capital IQ predicted sales of $69.1 million on the same basis. GAAP reported sales were 8.2% lower than the prior-year quarter's $65.6 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.73. The three earnings estimates compiled by S&P Capital IQ anticipated $0.68 per share on the same basis. GAAP EPS of $0.69 were the same as the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 74.0%, 50 basis points worse than the prior-year quarter. Operating margin was 40.9%, 820 basis points worse than the prior-year quarter. Net margin was 35.3%, 340 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $59.4 million. On the bottom line, the average EPS estimate is $0.53.

Next year's average estimate for revenue is $263.3 million. The average EPS estimate is $2.61.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 246 members out of 255 rating the stock outperform, and nine members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 78 give Hittite Microwave a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hittite Microwave is hold, with an average price target of $55.60.

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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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