Entropic Communications Beats on Both Top and Bottom Lines
Entropic Communications (NAS: ENTR) reported earnings on April 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Entropic Communications beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share contracted significantly.
Gross margins grew, operating margins dropped, and net margins shrank.
Entropic Communications logged revenue of $59.1 million. The 12 analysts polled by S&P Capital IQ foresaw revenue of $57.5 million on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $71.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.12. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.11 per share on the same basis. GAAP EPS of $0.04 for Q1 were 69% lower than the prior-year quarter's $0.13 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.2%, 90 basis points better than the prior-year quarter. Operating margin was 12.5%, 1,260 basis points worse than the prior-year quarter. Net margin was 6.6%, 1,000 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $59.5 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $250.0 million. The average EPS estimate is $0.50.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 264 members out of 299 rating the stock outperform, and 35 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 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 $7.90.
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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.