Rambus Misses Where It Counts
Rambus (NAS: RMBS) reported earnings on April 19. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Rambus met expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP loss per share improved.
Margins dropped across the board.
Rambus chalked up revenue of $62.9 million. The one analyst polled by S&P Capital IQ wanted to see revenue of $63.0 million on the same basis. GAAP reported sales were 0.5% higher than the prior-year quarter's $62.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.25. The one earnings estimate compiled by S&P Capital IQ averaged -$0.23 per share. GAAP EPS were -$0.25 for Q1 compared to -$0.04 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 88.6%, 640 basis points worse than the prior-year quarter. Operating margin was -27.9%, 4,790 basis points worse than the prior-year quarter. Net margin was -44.4%, 3,760 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $66.0 million. On the bottom line, the average EPS estimate is -$0.20.
Next year's average estimate for revenue is $276.9 million.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 432 members out of 518 rating the stock outperform, and 86 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give Rambus a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rambus is outperform, with an average price target of $16.00.
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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.