Are You Expecting This from EZchip Semiconductor?

EZchip Semiconductor (Nasdaq: EZCH  ) is expected to report Q4 earnings on Feb. 13. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict EZchip Semiconductor's revenues will compress -1.8% and EPS will wither -4.5%.

The average estimate for revenue is $14.0 million. On the bottom line, the average EPS estimate is $0.21.

Revenue details
Last quarter, EZchip Semiconductor tallied revenue of $9.3 million. GAAP reported sales were 50% lower than the prior-year quarter's $18.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.10. GAAP EPS dropped to zero from the prior-year quarter's $0.27.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 83.9%, 800 basis points better than the prior-year quarter. Operating margin was -4.7%, 4,310 basis points worse than the prior-year quarter. Net margin was 1.4%, 3,950 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $53.6 million. The average EPS estimate is $0.87.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 241 members out of 254 rating the stock outperform, and 13 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give EZchip Semiconductor a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EZchip Semiconductor is outperform, with an average price target of $37.88.

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