- Rambus reported a first-quarter earnings per share (EPS) of 56 cents, narrowly missing analyst estimates of 57 cents. This, however, reflects a significant increase from the 30 cents reported a year ago.
- The company’s product revenue soared to $76.3 million, up 52% compared to the previous year, surpassing the expected $75.3 million.
- Contract and other revenue dropped by 18% year over year, totaling $16.4 million.
- Licensing billings rose to $73.3 million, marking a 16% increase from the previous year.
- Rambus’ operating margin improved to 38%, compared to 26% in the same quarter last year.
- Research and Development (R&D) expenses increased by 14%, amounting to $42.6 million, which is slightly lower than the projected $43.9 million.
- For the second quarter, Rambus forecasts licensing billings between $64 million and $70 million.
- Product revenue for the second quarter is expected to range from $77 million to $83 million, with analysts estimating $79.5 million.
- The company anticipates contract and other revenue to be between $17 million and $23 million in the next quarter.
- Market sentiment is positive with 7 buy ratings, 2 hold ratings, and no sell ratings.
Rambus on Smartkarma
Analysts on Smartkarma, such as Baptista Research, have been closely monitoring Rambus Inc.’s performance. According to Baptista Research, Rambus has excelled in the fiscal year 2024, with impressive financial results and successful strategic implementations. The company’s revenue for the fourth quarter stood at $161.1 million, surpassing expectations, and achieved record product revenue of $247 million for the year. Rambus‘s focus on advanced memory technologies, particularly in the memory interface chip segment, has significantly contributed to its success, with a notable 11% sequential increase and a 37% year-over-year increase in revenue.
A look at Rambus Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
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
Analyzing Rambus Inc.’s long-term outlook using the Smartkarma Smart Scores reveals a mixed picture. With a high Growth score of 5, Rambus shows promising potential for future expansion and development in the technology sector. This indicates the company is well-positioned for advancement and innovation in its industry.
However, the overall outlook is tempered by lower scores in Value and Dividend categories, with scores of 2 and 1 respectively. While Rambus may lack in perceived value and dividend payouts compared to other factors, its Resilience and Momentum scores of 4 each suggest the company has demonstrated stability and positive market movement. Overall, Rambus Inc. appears to be a growth-oriented firm with strong momentum and resilience in the market.
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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