Pericom Semiconductor Goes Negative

Pericom Semiconductor (Nasdaq: PSEM  ) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Pericom Semiconductor missed estimates on revenue and met expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share shrank to a loss.

Gross margins expanded, operating margins dropped, and net margins contracted.

Revenue details
Pericom Semiconductor tallied revenue of $30.5 million. The three analysts polled by S&P Capital IQ anticipated net sales of $32.4 million. Sales were 25% lower than the prior-year quarter's $40.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at -$0.01. The two earnings estimates compiled by S&P Capital IQ averaged -$0.01 per share. GAAP EPS were -$0.01 for Q2 compared to $0.07 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 36.0%, 250 basis points better than the prior-year quarter. Operating margin was -4.5%, 840 basis points worse than the prior-year quarter. Net margin was -1.1%, 560 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $32.8 million. On the bottom line, the average EPS estimate is $0.01.

Next year's average estimate for revenue is $138.3 million. The average EPS estimate is $0.07.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 125 members out of 127 rating the stock outperform, and two members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all of them give the stock a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pericom Semiconductor is buy, with an average price target of $13.00.

Over the decades, small-cap stocks like Pericom Semiconductor have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

• Add Pericom Semiconductor to My Watchlist.