- Rambus reported earnings per share (EPS) of 53 cents, lower than the expected 58 cents, though an increase from 33 cents year-over-year (y/y).
- Product revenue was $81.3 million, surpassing the estimate of $80.1 million, and marking a 43% increase y/y.
- Contract and other revenue reached $22.3 million, showing a 17% growth y/y.
- Licensing billings increased by 8% y/y, totaling $66.4 million.
- The company’s operating margin improved to 37% from 31% y/y.
- Research and development (R&D) expenses rose to $46.3 million, an increase of 14% y/y, and higher than the estimated $44.1 million.
- The market sentiment includes 7 buy ratings, 2 hold ratings, and no sell ratings.
Rambus on Smartkarma
Analyst coverage of Rambus on Smartkarma highlights positive sentiment towards the company’s performance and strategic focus. Baptista Research‘s report titled “Rambus Inc.: Chipset Innovation for DDR5 Systems to Tap Into New Market Segments & Support Sales Growth!” indicates that Rambus began the year with strong results above internal expectations. The company achieved total revenue of $166.7 million for the first quarter, driven by a significant increase in product revenue from its DDR5 memory interface chips. This performance reflects Rambus‘ resilient and diversified business model, positioning it for sales growth in new market segments.
In another report by Baptista Research, titled “Rambus Inc.: Their Focus On Advanced Memory Technologies Is Driving Our Bullishness!”, Rambus is praised for its strong performance in fiscal year 2024. The company reported revenue of $161.1 million for the fourth quarter, surpassing expectations. Notably, Rambus achieved record product revenue of $247 million for the year, with the memory interface chip segment playing a key role in this success. With a focus on advanced memory technologies, Rambus continues to impress analysts, driving bullish sentiment towards its future prospects.
A look at Rambus Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to the Smartkarma Smart Scores analysis, Rambus Inc. is looking towards a promising future. With a top-tier Growth score of 5, the company is well-positioned for expansion and development in the long term, indicating strong potential for increasing its market presence. Additionally, Rambus received a Momentum score of 5, suggesting a positive trend in its stock performance and investor interest, showcasing a healthy momentum in the market.
Despite a lower Dividend score of 1, Rambus shines in terms of Resilience with a score of 4, implying the company’s ability to endure and adapt to challenging market conditions. The Value score of 2 indicates a moderate valuation aspect. Overall, Rambus Inc. stands out in growth and momentum, painting a favorable picture for its future prospects in the high-speed chip-to-chip interface technology sector.
Rambus Inc. Overview:
Rambus Inc. designs, develops, licenses, and markets high-speed chip-to-chip interface technology to enhance the performance and cost-effectiveness of consumer electronics, computer systems, and other electronic systems. The Company licenses semiconductor companies to manufacture and sell memory and logic ICs incorporating Rambus interface technology.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
π‘ Before itβs here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- β Unlimited Research Summaries
- β Personalised Alerts
- β Custom Watchlists
- β Company Analytics and News
- β Events & Webinars
