What Does Wall Street See for Silicon Motion Technology's Q2?

Silicon Motion Technology (Nasdaq: SIMO  ) is expected to report Q2 earnings on July 29. 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 Silicon Motion Technology's revenues will shrink -17.7% and EPS will drop -38.1%.

The average estimate for revenue is $57.4 million. On the bottom line, the average EPS estimate is $0.26.

Revenue details
Last quarter, Silicon Motion Technology reported revenue of $57.4 million. GAAP reported sales were 10% lower than the prior-year quarter's $64.0 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 $0.17. GAAP EPS of $0.15 for Q1 were 63% lower than the prior-year quarter's $0.40 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 43.8%, 560 basis points worse than the prior-year quarter. Operating margin was 12.2%, 860 basis points worse than the prior-year quarter. Net margin was 8.4%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $237.7 million. The average EPS estimate is $1.04.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 795 members out of 818 rating the stock outperform, and 23 members rating it underperform. Among 181 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 178 give Silicon Motion Technology a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Silicon Motion Technology is outperform, with an average price target of $22.57.

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