Will These Numbers from Cavium Be Good Enough for You?

Seth Jayson, The Motley Fool
Updated

Cavium (NAS: CAVM) is expected to report Q4 earnings on Jan. 31. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Cavium's revenues will expand 17.4% and EPS will decrease 0.0%.

The average estimate for revenue is $66.1 million. On the bottom line, the average EPS estimate is $0.17.


Revenue details
 Last quarter, Cavium notched revenue of $61.1 million. GAAP reported sales were 9.8% lower than the prior-year quarter's $67.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 Last quarter, non-GAAP EPS came in at $0.15. GAAP EPS were -$0.16 for Q3 versus $0.12 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
 For the preceding quarter, gross margin was 59.4%, 50 basis points worse than the prior-year quarter. Operating margin was -14.9%, 1,610 basis points worse than the prior-year quarter. Net margin was -13.3%, 2,220 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $235.2 million. The average EPS estimate is $0.40.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 79 members out of 113 rating the stock outperform, and 34 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 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 $31.75.

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The article Will These Numbers from Cavium Be Good Enough for You? originally appeared on Fool.com.

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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