Audience Earnings: Here’s Why Investors are Selling Shares Now

Audience Inc (NASDAQ:ADNC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 23.75%.

Audience Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 0% to $0.24 in the quarter versus EPS of $0.24 in the year-earlier quarter.

Revenue: Rose 35.79% to $45.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.24 per share. By that measure, the company beat the mean analyst estimate of $0.17. It beat the average revenue estimate of $44.87 million.

Quoting Management: “In the second quarter, Audience continued to strengthen its position as the leader in Advanced Voice with Audience technology released in a wide range of flagship devices for customers such as Samsung, Huawei, and LG,” said Peter Santos, president and chief executive officer. “As we look ahead, we see shifting trends in the smartphone market that will present both challenges and opportunities. We believe the opportunities will outweigh these challenges, as we continue to penetrate key mobile handset customers, deepen our partnership with China Mobile and execute on our diversification strategy.”

Key Stats (on next page)…

Revenue decreased 4.09% from $47.23 million in the previous quarter. EPS decreased 11.11% from $0.27 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.16 to a profit $0.15. For the current year, the average estimate has moved up from a profit of $0.59 to a profit of $0.68 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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