Hittite Microwave Misses Where it Counts

Seth Jayson, The Motley Fool
Updated

Hittite Microwave (NAS: HITT) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Hittite Microwave beat expectations on revenues and missed estimates on earnings per share.

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


Gross margins improved, operating margins dropped, net margins dropped.

Revenue details
Hittite Microwave reported revenue of $63.3 million. The four analysts polled by S&P Capital IQ anticipated sales of $61.7 million on the same basis. GAAP reported sales were 5.8% lower than the prior-year quarter's $67.2 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
EPS came in at $0.52. The four earnings estimates compiled by S&P Capital IQ predicted $0.53 per share. GAAP EPS of $0.52 for Q1 were 21% lower than the prior-year quarter's $0.66 per share.

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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 73.7%, 70 basis points better than the prior-year quarter. Operating margin was 40.2%, 620 basis points worse than the prior-year quarter. Net margin was 25.3%, 470 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $64.6 million. On the bottom line, the average EPS estimate is $0.52.

Next year's average estimate for revenue is $266.3 million. The average EPS estimate is $2.20.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 243 members out of 253 rating the stock outperform, and 10 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 give Hittite Microwave a green thumbs-up, and five 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 $56.25.

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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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