PLX Technology Misses on Revenues but Beats on EPS

PLX Technology (Nasdaq: PLXT  ) reported earnings on Jan. 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PLX Technology missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP loss per share contracted.

Gross margins dropped, operating margins expanded, net margins increased.

Revenue details
PLX Technology booked revenue of $23.4 million. The three analysts polled by S&P Capital IQ predicted revenue of $24.9 million on the same basis. GAAP reported sales were 9.6% lower than the prior-year quarter's $25.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.06. The two earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. GAAP EPS were -$0.01 for Q4 versus -$0.12 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 58.4%, 70 basis points worse than the prior-year quarter. Operating margin was 5.7%, 2,840 basis points better than the prior-year quarter. Net margin was -2.6%, 1,850 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $25.9 million. On the bottom line, the average EPS estimate is $0.05.

Next year's average estimate for revenue is $111.2 million. The average EPS estimate is $0.24.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 39 members out of 52 rating the stock outperform, and 13 members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give PLX Technology a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PLX Technology is outperform, with an average price target of $5.83.

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