RDA Microelectronics, Inc. (NASDAQ:RDA) 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 up 1.78%.
RDA Microelectronics, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 9.37% to $0.35 in the quarter versus EPS of $0.32 in the year-earlier quarter.
Revenue: Was the same at $94.37 million as the year-earlier quarter.
Actual vs. Wall St. Expectations: RDA Microelectronics, Inc. reported adjusted EPS income of $0.35 per share. By that measure, the company met the mean analyst estimate of $0.35. It missed the average revenue estimate of $109.68 million.
Quoting Management: Vincent Tai, chairman and CEO of RDA Microelectronics commented, “Second quarter revenue increased 17% over the prior year quarter as a result of increased sales of our baseband products as well as higher volumes of our WiFi combo chip. We are pleased with our continued progress to penetrate the ultra-low cost feature phone market with our highly integrated 2G baseband solution. The 8851, which represents the large majority of our shipments, continues to be well-received by customers as we increase our silicon content and addressable market.”
Key Stats (on next page)…
Revenue decreased 2.86% from $97.15 million in the previous quarter. EPS increased 25% from $0.28 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.44 to a profit $0.39. For the current year, the average estimate has moved down from a profit of $1.49 to a profit of $1.43 over the last ninety days.
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. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)