LSI Corp. Earnings: BEATS Revenue Expectation

Rising costs hurt S&P 500 (NYSE:SPY) component LSI Corporation (NYSE:LSI) in the second quarter as profit dropped from a year earlier. LSI designs and markets complex storage and networking semiconductors and storage systems.

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LSI Corporation Earnings Cheat Sheet

Results: Net income for LSI Corporation fell to $58.7 million (10 cents per share) vs. $293.8 million (48 cents per share) a year earlier. This is a decline of 80% from the year-earlier quarter.

Revenue: Rose 31.7% to $659.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: LSI Corporation fell short of the mean analyst estimate of 13 cents per share. It beat the average revenue estimate of $643.8 million.

Quoting Management: “We are pleased with our performance in the second quarter as we delivered strong growth and further expanded our profitability in a challenging macroeconomic environment,” said Abhi Talwalkar, LSI’s president and CEO. “Demand, particularly for our flash-related products, was driven by rapid adoption across client and datacenter computing where customers are increasingly turning to LSI to enhance or accelerate application performance.”

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 8 cents, and in the fourth quarter of the last fiscal year, it was ahead by 3 cents.

Margins increased in the first quarter after dropping the quarter before. Gross margin grew 2.2 percentage points from the year-earlier quarter to 49.7%. In the fourth quarter of the last fiscal year, the figure rose 1.3 percentage points to 46.1% from the year earlier quarter.

The company’s revenue has now risen for two quarters in a row. In the first quarter, revenue increased 31.5% to $622.4 million from the year-earlier quarter.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the third quarter is 14 cents per share, a drop from 16 cents. The average estimate for the fiscal year is 58 cents per share, a rise from 53 cents ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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