Xperi (XPER) got here out with quarterly earnings of $0.61 per share, beating the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.57 per share a yr in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of 29.79%. 1 / 4 in the past, it was anticipated that this supplier of chip know-how for small digital units would submit earnings of $0.45 per share when it truly produced earnings of $0.59, delivering a shock of 31.11%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates 4 instances.
Xperi, which belongs to the Zacks Expertise Companies business, posted revenues of $222.27 million for the quarter ended June 2021, surpassing the Zacks Consensus Estimate by 3.59%. This compares to year-ago revenues of $93.Four million. The corporate has topped consensus income estimates thrice during the last 4 quarters.
The sustainability of the inventory’s rapid worth motion primarily based on the recently-released numbers and future earnings expectations will principally rely upon administration’s commentary on the earnings name.
Xperi shares have misplaced about 0.6% because the starting of the yr versus the S&P 500’s achieve of 16.8%.
What’s Subsequent for Xperi?
Whereas Xperi has underperformed the market up to now this yr, the query that involves traders’ minds is: what’s subsequent for the inventory?
There are not any straightforward solutions to this key query, however one dependable measure that may assist traders handle that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified recently.
Empirical analysis reveals a robust correlation between near-term inventory actions and developments 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 ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for Xperi was unfavorable. Whereas the magnitude and route of estimate revisions might 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 may see the entire record of as we speak’s Zacks #1 Rank (Robust Purchase) shares right here.
It will likely be fascinating to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $0.40 on $216.62 million in revenues for the approaching quarter and $2.02 on $903.57 million in revenues for the present fiscal yr.
Traders must be aware of the truth that the outlook for the business can have a cloth influence on the efficiency of the inventory as effectively. By way of the Zacks Trade Rank, Expertise Companies is at present within the backside 26% 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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