Insights into Rambus's Upcoming Earnings

Rambus RMBS is gearing up to announce its quarterly earnings on Monday, 2025-04-28. 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 $0.50.

Rambus bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Performance in Previous Earnings

The company's EPS beat by $0.01 in the last quarter, leading to a 6.78% increase in the share price on the following day.

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

Performance of Rambus Shares

Shares of Rambus were trading at $49.36 as of April 24. Over the last 52-week period, shares are down 17.63%. Given that these returns are generally negative, long-term shareholders are likely bearish 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.

The consensus rating for Rambus is Outperform, derived from 3 analyst ratings. An average one-year price target of $78.33 implies a potential 58.69% upside.

Comparing Ratings Among Industry Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Cirrus Logic, Qorvo and Universal Display, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Cirrus Logic, with an average 1-year price target of $111.4, suggesting a potential 125.69% upside.
• Analysts currently favor an Neutral trajectory for Qorvo, with an average 1-year price target of $86.5, suggesting a potential 75.24% upside.
• Analysts currently favor an Buy trajectory for Universal Display, with an average 1-year price target of $181.6, suggesting a potential 267.91% upside.

Insights: Peer Analysis

The peer analysis summary offers a detailed examination of key metrics for Cirrus Logic, Qorvo and Universal Display, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Rambus ranks highest in Revenue Growth among its peers. It is in the middle for Gross Profit. Rambus is at the bottom for Return on Equity.

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.

Unraveling the Financial Story of Rambus

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Rambus's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 31.81%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Rambus's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 38.61% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 5.76%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Rambus's ROA excels beyond industry benchmarks, reaching 4.79%. This signifies efficient management of assets and strong financial health.

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.