RDA Microelectronics Earnings: Here’s Why Investors Like These Results

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.

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