Will RDA Microelectronics Beat These Analyst Estimates?

Seth Jayson, The Motley Fool
Updated

RDA Microelectronics (NAS: RDA) is expected to report Q2 earnings around Aug. 6. 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 RDA Microelectronics's revenues will increase 16.2% and EPS will increase 6.3%.

The average estimate for revenue is $109.7 million. On the bottom line, the average EPS estimate is $0.34.


Revenue details
 Last quarter, RDA Microelectronics reported revenue of $97.1 million. GAAP reported sales were 35% higher than the prior-year quarter's $72.0 million.

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

EPS details
 Last quarter, non-GAAP EPS came in at $0.28. GAAP EPS of $0.23 for Q1 were 23% lower than the prior-year quarter's $0.30 per share.

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

Recent performance
 For the preceding quarter, gross margin was 32.1%, 380 basis points worse than the prior-year quarter. Operating margin was 11.3%, 870 basis points worse than the prior-year quarter. Net margin was 11.0%, 820 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $444.4 million. The average EPS estimate is $1.37.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 18 members out of 23 rating the stock outperform, and five members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), five give RDA Microelectronics a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RDA Microelectronics is outperform, with an average price target of $14.69.

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The article Will RDA Microelectronics Beat These Analyst Estimates? 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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