Rising costs hurt S&P 500 (NYSE:SPY) component LSI Corporation (NYSE:LSI) in the second quarter as profit dropped from a year earlier. LSI designs and markets complex storage and networking semiconductors and storage systems.
Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?
LSI Corporation Earnings Cheat Sheet
Results: Net income for LSI Corporation fell to $58.7 million (10 cents per share) vs. $293.8 million (48 cents per share) a year earlier. This is a decline of 80% from the year-earlier quarter.
Revenue: Rose 31.7% to $659.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: LSI Corporation fell short of the mean analyst estimate of 13 cents per share. It beat the average revenue estimate of $643.8 million.
Quoting Management: “We are pleased with our performance in the second quarter as we delivered strong growth and further expanded our profitability in a challenging macroeconomic environment,” said Abhi Talwalkar, LSI’s president and CEO. “Demand, particularly for our flash-related products, was driven by rapid adoption across client and datacenter computing where customers are increasingly turning to LSI to enhance or accelerate application performance.”
The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 8 cents, and in the fourth quarter of the last fiscal year, it was ahead by 3 cents.
Margins increased in the first quarter after dropping the quarter before. Gross margin grew 2.2 percentage points from the year-earlier quarter to 49.7%. In the fourth quarter of the last fiscal year, the figure rose 1.3 percentage points to 46.1% from the year earlier quarter.
The company’s revenue has now risen for two quarters in a row. In the first quarter, revenue increased 31.5% to $622.4 million from the year-earlier quarter.
Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the third quarter is 14 cents per share, a drop from 16 cents. The average estimate for the fiscal year is 58 cents per share, a rise from 53 cents ninety days ago.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Additional Hot Stories: