Rambus's Earnings: A Preview

Rambus RMBS is gearing up to announce its quarterly earnings on Monday, 2024-10-28. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Rambus will report an earnings per share (EPS) of $0.51.

Investors in Rambus are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Performance in Previous Earnings

During the last quarter, the company reported an EPS beat by $0.02, leading to a 12.99% drop in the share price on the subsequent day.

Here's a look at Rambus's past performance and the resulting price change:

Tracking Rambus's Stock Performance

Shares of Rambus were trading at $42.04 as of October 24. Over the last 52-week period, shares are down 12.6%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.

Analysts' Perspectives on Rambus

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Rambus.

With 1 analyst ratings, Rambus has a consensus rating of Buy. The average one-year price target is $85.0, indicating a potential 102.19% upside.

Analyzing Ratings Among Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of SiTime, Impinj and Allegro Microsystems, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Buy trajectory for SiTime, with an average 1-year price target of $126.67, implying a potential 201.31% upside.
• Impinj is maintaining an Outperform status according to analysts, with an average 1-year price target of $243.25, indicating a potential 478.62% upside.
• Allegro Microsystems received a Buy consensus from analysts, with an average 1-year price target of $33.0, implying a potential 21.5% downside.

Snapshot: Peer Analysis

In the peer analysis summary, key metrics for SiTime, Impinj and Allegro Microsystems are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Rambus ranks highest in gross profit and return on equity among its peers. It is in the middle for revenue growth.

Discovering Rambus: A Closer Look

Rambus Inc is a semiconductor solutions provider offering high-speed, high-security computer chips and Silicon intellectual property. The company's key products include memory interface chips, built for high speed and efficiency; silicon IP, providing high-speed memory and chip-to-chip connection technology; and architecture licenses, which allow customers to use portions of Rambus' patented inventions for their own digital electronics. The firm receives the majority of its revenue from the United States, Taiwan, Asia, Japan, and Singapore.

Financial Insights: Rambus

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Rambus displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 10.27%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Rambus's net margin excels beyond industry benchmarks, reaching 27.29%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 3.57%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.93%, the company showcases effective utilization of assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.03.

To track all earnings releases for Rambus visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.