PMC-Sierra Earnings: Here’s Why Investors are Not Excited Now

PMC-Sierra Inc. (NASDAQ:PMCS) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 7.28%.

PMC-Sierra Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 11.11% to $0.08 in the quarter versus EPS of $0.09 in the year-earlier quarter.

Revenue: Decreased 7.16% to $127.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: PMC-Sierra Inc. reported adjusted EPS income of $0.08 per share. By that measure, the company missed the mean analyst estimate of $0.08. It missed the average revenue estimate of $130.39 million.

Quoting Management: “Our second quarter results were in line with our outlook despite the muted environment,” said Greg Lang, PMC president and chief executive officer. “The recent acquisition of IDT’s PCI Express (PCIe) flash controller business further expands our growth opportunities and positions us as a leader in the rapidly growing enterprise solid-state drive market segment.”

Key Stats (on next page)…

Revenue increased 2.19% from $125.16 million in the previous quarter. EPS increased 14.29% from $0.07 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.11 and has not changed. For the current year, the average estimate has moved down from a profit of $0.4 to a profit of $0.39 over the last ninety days.

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