Applied Micro Circuits Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

Applied Micro Circuits (NAS: AMCC) reported earnings on April 25. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q4), Applied Micro Circuits met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased to zero. GAAP loss per share contracted.


Gross margins grew, operating margins contracted, net margins grew.

Revenue details
 Applied Micro Circuits reported revenue of $56.3 million. The seven analysts polled by S&P Capital IQ foresaw revenue of $55.9 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $48.8 million.

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 $0.00. The six earnings estimates compiled by S&P Capital IQ forecast -$0.01 per share. Non-GAAP EPS dropped to zero from the prior-year quarter's $0.00. GAAP EPS were -$0.45 for Q4 compared to -$1.10 per share for the prior-year quarter.

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 62.4%, 540 basis points better than the prior-year quarter. Operating margin was -46.9%, much worse than the prior-year quarter. Net margin was -53.7%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $56.3 million. On the bottom line, the average EPS estimate is -$0.01.

Next year's average estimate for revenue is $241.8 million. The average EPS estimate is $0.06.

Investor sentiment
 The stock has a one-star rating (out of five) at Motley Fool CAPS, with 119 members out of 156 rating the stock outperform, and 37 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Applied Micro Circuits a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Applied Micro Circuits is outperform, with an average price target of $10.17.

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The article Applied Micro Circuits Beats Up on Analysts Yet Again 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. The Motley Fool has no position in any of the stocks mentioned. 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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