Spreadtrum Communications Beats on Both Top and Bottom Lines
Spreadtrum Communications (NAS: SPRD) reported earnings on May 3. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Spreadtrum Communications beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped.
Margins shrank across the board.
Spreadtrum Communications recorded revenue of $161.1 million. The eight analysts polled by S&P Capital IQ expected to see net sales of $158.3 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $137.1 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 $0.47. The six earnings estimates compiled by S&P Capital IQ anticipated $0.40 per share. GAAP EPS of $0.48 for Q1 were 5.9% lower than the prior-year quarter's $0.51 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 38.0%, 420 basis points worse than the prior-year quarter. Operating margin was 16.1%, 480 basis points worse than the prior-year quarter. Net margin was 15.1%, 500 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $167.5 million. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $703.8 million. The average EPS estimate is $1.96.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 267 members out of 320 rating the stock outperform, and 53 members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Spreadtrum Communications a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spreadtrum Communications is outperform, with an average price target of $20.87.
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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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