Rambus (RMBS) got here out with quarterly earnings of $0.06 per share, lacking the Zacks Consensus Estimate of $0.28 per share. This compares to lack of $0.02 per share a yr in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of -78.57%. 1 / 4 in the past, it was anticipated that this reminiscence chip designer would submit earnings of $0.25 per share when it truly produced earnings of $0.28, delivering a shock of 12%.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates simply as soon as.
Rambus, which belongs to the Zacks Electronics – Semiconductors business, posted revenues of $105 million for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 1.93%. This compares to year-ago revenues of $111.Four million. The corporate has topped consensus income estimates 4 occasions during the last 4 quarters.
The sustainability of the inventory’s fast value motion based mostly on the recently-released numbers and future earnings expectations will principally rely upon administration’s commentary on the earnings name.
Rambus shares have added about 10.8% for the reason that starting of the yr versus the S&P 500’s achieve of 12.1%.
What’s Subsequent for Rambus?
Whereas Rambus has underperformed the market to this point this yr, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There are not any simple solutions to this key query, however one dependable measure that may assist buyers tackle that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified recently.
Empirical analysis reveals a powerful correlation between near-term inventory actions and traits in earnings estimate revisions. Traders can observe such revisions by themselves or depend on a tried-and-tested ranking software just like the Zacks Rank, which has a formidable observe document of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for Rambus was unfavorable. Whereas the magnitude and course of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #4 (Promote) for the inventory. So, the shares are anticipated to underperform the market within the close to future. You’ll be able to see the whole checklist of right this moment’s Zacks #1 Rank (Sturdy Purchase) shares right here.
It is going to be attention-grabbing to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $0.29 on $105.64 million in revenues for the approaching quarter and $1.20 on $437.58 million in revenues for the present fiscal yr.
Traders needs to be aware of the truth that the outlook for the business can have a fabric impression on the efficiency of the inventory as effectively. By way of the Zacks Trade Rank, Electronics – Semiconductors is at the moment within the high 43% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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Rambus, Inc. (RMBS): Free Inventory Evaluation Report
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