Rambus Earnings: Here’s What Investors Need to Know

Rambus Inc. (NASDAQ:RMBS) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Rambus Inc. Earnings Cheat Sheet

Results: Net income increased to $8.3 million (7 cents per diluted share) in the quarter versus a net loss of $28.72 million in the year-earlier quarter.

Revenue: Decreased 31.14% to $57.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rambus Inc. reported adjusted net income of 7 cents per share. By that measure, the company beat the mean analyst estimate of $0. It missed the average revenue estimate of $60 million.

Other Financial Highlights: Cash, cash equivalents, and marketable securities as of December 31, 2012 were $203.3 million, a decrease of approximately $3.8 million from September 30, 2012. During the fourth quarter of 2012, the Company used approximately $8.0 million for capital expenditures. Cash provided from operations during the fourth quarter was approximately $2.2 million.

Key Stats:

Revenue decreased 0.23% from $57.53 million in the previous quarter. Net income increased to $8.3 million in the quarter versus a net loss of $58.1 million 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 loss of $0 and has not changed. For the current year, the average estimate is a loss of $0, which is the same with that 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.)