- Rambus reported fourth quarter earnings per share (EPS) of $0.58, surpassing both last year’s $0.53 and the estimated $0.56.
- Product revenue reached $73.4 million, marking a 37% increase compared to the previous year, but slightly below the estimated $75.1 million.
- Contract and other revenue rose significantly by 83% year-over-year, totaling $29.5 million.
- Licensing billings were $63.6 million, experiencing a 3.9% decline year-over-year.
- The company achieved an operating margin of 36%, an improvement from last year’s 29%.
- Research and development expenses totaled $43.7 million, a 21% increase from last year, slightly above the estimated $42.9 million.
- Market sentiment includes 5 buy recommendations, 2 hold recommendations, and no sell recommendations.
Rambus on Smartkarma
Analysts at Baptista Research have been closely monitoring Rambus Inc., providing insight into the strategic growth drivers behind the company’s recent financial performance. In their report titled “Rambus Inc.: Will The Strategic Growth from DDR5 Server PMICs Last? – Major Drivers”, analysts Desmond Lynch, the CFO, and Luc Seraphin, the CEO, highlighted key areas of operation and future strategies unveiled during the earnings call for the second quarter of fiscal year 2024. Baptista Research aims to assess potential influences on Rambus‘ stock price in the near term, leveraging a Discounted Cash Flow (DCF) valuation model for an independent analysis.
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
Based on the Smartkarma Smart Scores, Rambus Inc. shows a promising long-term outlook. The company scores high in growth and momentum, indicating strong potential for future expansion and market performance. With a focus on designing high-speed chip-to-chip interface technology, Rambus is positioned to enhance the performance and cost-effectiveness of various electronics systems, boosting its growth prospects.
While Rambus scores lower in value and dividend factors, its resilience score suggests that the company is well-equipped to endure market fluctuations and challenges. Overall, Rambus‘ innovative approach to licensing its technology to semiconductor companies showcases its adaptability and market competitiveness, making it a company to watch for continued growth and success in the technology sector.
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.
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