Spreadtrum Communications Earnings: Here’s Why Investors Like These Results

Spreadtrum Communications Inc. (NASDAQ:SPRD) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.73%.

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

Spreadtrum Communications Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.38% to $0.5 in the quarter versus EPS of $0.47 in the year-earlier quarter.

Revenue: Rose 17.31% to $189 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Spreadtrum Communications Inc. reported adjusted EPS income of $0.5 per share. By that measure, the company beat the mean analyst estimate of $0.38. It beat the average revenue estimate of $184.42 million.

Quoting Management: Commenting on the first quarter 2013 results, Chairman and CEO Dr. Leo Li said, “Demand for our single-core smartphone chipsets was exceptionally strong throughout the quarter. Some of our TD-SCDMA customers’ smartphones are now retailing for 300RMB, which is approximately US$50. These handsets, which are the lowest cost 3G smartphones available in China, are helping to speed the transition from feature phones by improving affordability for the first time smartphone buyer. EDGE smartphone shipments were also very strong, which reflects growing demand for entry-level smartphones in overseas regions as well.”

Key Stats (on next page)…

Revenue decreased 6.96% from $203.13 million in the previous quarter. EPS increased 6.38% from $0.47 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.44 to a profit $0.49. For the current year, the average estimate has moved up from a profit of $2.23 to a profit of $2.34 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)