Rambus Inc. reports results for the quarter ended September 30 - Earnings Summary

What happened

Rambus Inc. reported quarterly adjusted earnings of 84 cents per share, above the 63 cents reported a year earlier and the 79 cents analysts expected. Revenue rose 22.3% to $218.29 million, and quarterly net income was $74.57 million.

Confirmed

Global impact / market context

Higher revenue and earnings than analysts expected suggest Rambus sold more or controlled costs better, which can support its share price because the stock had fallen sharply this quarter and this year despite the improving profit picture.

Analyst inference

Analysts rate Rambus 'buy' and see a median price target of $144.62, about 40.8% above its last close of $85.65, implying they expect a rebound even after the stock fell 19.8% this quarter.

Analyst inference

What to watch

1. The mean earnings estimate rose about 1.3% in three months, and there were no analyst earnings estimate revisions in the last 30 days, so watch whether forecasts change after these results. Confirmed
2. Watch whether Rambus can keep revenue growing at 22.3% and keep adjusted earnings ahead of the 79 cent consensus, because slower growth would weaken the case for a rebound toward the $144.62 target. Analyst inference
3. Investors could compare Rambus's reported earnings of 84 cents on an adjusted basis with its reported EPS of 69 cents, which means adjustment items mattered this quarter, to judge the quality of profit. Proposed

Evidence

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