DSP Group Earnings: Here’s Why Investors Like These Results

DSP Group Inc. (NASDAQ:DSPG) 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 up 3.8%.

DSP Group Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 650% to $0.15 in the quarter versus EPS of $0.02 in the year-earlier quarter.

Revenue: Decreased 7.9% to $40.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: DSP Group Inc. reported adjusted EPS income of $0.15 per share. By that measure, the company beat the mean analyst estimate of $0.02. It beat the average revenue estimate of $40.05 million.

Quoting Management: Ofer Elyakim, CEO of DSP Group, stated, “We are pleased with our second quarter financial performance, which exceeded our guidance in almost every financial metric. Our ability to maintain GAAP operating profitability, which included non-recurring proxy-related costs, is a powerful demonstration of our successful operational turnaround.”

Key Stats (on next page)…

Revenue increased 2.65% from $39.65 million in the previous quarter. EPS increased 36.36% from $0.11 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.08 to a profit $0.10. For the current year, the average estimate has moved up from a profit of $0.26 to a profit of $0.31 over the last ninety days.

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