Cavium Goes Negative
Cavium (NAS: CAVM) reported earnings on May 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Cavium met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Cavium logged revenue of $52.7 million. The 21 analysts polled by S&P Capital IQ predicted a top line of $52.6 million on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $63.6 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 $0.02. The 22 earnings estimates compiled by S&P Capital IQ anticipated $0.01 per share. GAAP EPS were -$0.28 for Q1 versus $0.03 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 46.9%, 1,400 basis points worse than the prior-year quarter. Operating margin was -28.1%, 3,300 basis points worse than the prior-year quarter. Net margin was -26.2%, 2,850 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $56.4 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $242.5 million. The average EPS estimate is $0.42.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 81 members out of 110 rating the stock outperform, and 29 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Cavium 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 Cavium is outperform, with an average price target of $33.23.
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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.
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