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What Does Wall Street See for Mellanox Technologies's Q1?

Monday - 4/22/2013, 2:00am  ET

Mellanox Technologies is expected to report Q1 earnings on April 24. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Mellanox Technologies's revenues will wane -9.0% and EPS will shrink -92.2%.

The average estimate for revenue is $80.7 million. On the bottom line, the average EPS estimate is $0.04.

Revenue details
Last quarter, Mellanox Technologies reported revenue of $122.1 million. GAAP reported sales were 68% higher than the prior-year quarter's $72.7 million.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.69. GAAP EPS of $0.42 for Q4 were 282% higher than the prior-year quarter's $0.11 per share.

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

Recent performance
For the preceding quarter, gross margin was 68.1%, 410 basis points better than the prior-year quarter. Operating margin was 19.6%, much better than the prior-year quarter. Net margin was 15.1%, 870 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $447.9 million. The average EPS estimate is $1.83.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 191 members out of 218 rating the stock outperform, and 27 members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Mellanox Technologies a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mellanox Technologies is outperform, with an average price target of $108.08.

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This article was originally published as What Does Wall Street See for Mellanox Technologies's Q1?on Fool.com

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