PMC-Sierra Earnings: Here’s Why Investors Like These Results
PMC-Sierra Inc. (NASDAQ:PMCS) delivered a profit and missed 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 up 1.43%.
PMC-Sierra Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 16.67% to $0.07 in the quarter versus EPS of $0.06 in the year-earlier quarter.
Revenue: Decreased 5.22% to $125.2 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: PMC-Sierra Inc. reported adjusted EPS income of $0.07 per share. By that measure, the company missed the mean analyst estimate of $0.08. It missed the average revenue estimate of $127.77 million.
Quoting Management: “Our first quarter results were in line with our outlook and within the expected range,” said Greg Lang, PMC President and Chief Executive Officer. “We are encouraged by stronger bookings in the quarter and expect to grow revenues in the second quarter of 2013. Our book-to-bill ratio within the period was greater than one for the second consecutive quarter.”
Key Stats (on next page)…
Revenue decreased 3.26% from $129.42 million in the previous quarter. EPS decreased 41.67% from $0.12 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 $0.09 and has not changed. For the current year, the average estimate has moved up from a profit of $0.41 to a profit of $0.42 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)