Zacks: Analysts Expect Cavium Inc (CAVM) to Post $0.75 Earnings Per Share

Wall Street brokerages predict that Cavium Inc (NASDAQ:CAVM) will report earnings of $0.75 per share for the current fiscal quarter, according to Zacks. Five analysts have provided estimates for Cavium’s earnings. The highest EPS estimate is $0.81 and the lowest is $0.69. Cavium reported earnings of $0.58 per share in the same quarter last year, which indicates a positive year-over-year growth rate of 29.3%. The business is scheduled to report its next quarterly earnings report on Wednesday, April 25th.

According to Zacks, analysts expect that Cavium will report full year earnings of $3.58 per share for the current financial year, with EPS estimates ranging from $3.40 to $3.67. For the next financial year, analysts expect that the firm will post earnings of $4.55 per share, with EPS estimates ranging from $4.41 to $4.81. Zacks Investment Research’s EPS averages are a mean average based on a survey of sell-side research firms that follow Cavium.

Cavium (NASDAQ:CAVM) last issued its quarterly earnings results on Wednesday, January 31st. The semiconductor provider reported $0.83 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.81 by $0.02. The company had revenue of $260.36 million during the quarter, compared to the consensus estimate of $260.05 million. Cavium had a positive return on equity of 14.28% and a negative net margin of 7.00%. Cavium’s revenue was up 15.1% on a year-over-year basis. During the same period in the previous year, the firm posted $0.56 EPS.

A number of research firms have recently commented on CAVM. Jefferies Group downgraded Cavium from a “buy” rating to a “hold” rating in a report on Tuesday, November 21st. Loop Capital downgraded Cavium from a “buy” rating to a “hold” rating and set a $84.00 price objective for the company. in a report on Tuesday, November 21st. Canaccord Genuity upped their price objective on Cavium from $66.00 to $67.00 and gave the stock a “hold” rating in a report on Thursday, November 2nd. BidaskClub downgraded Cavium from a “buy” rating to a “hold” rating in a report on Thursday, December 7th. Finally, Zacks Investment Research upgraded Cavium from a “sell” rating to a “hold” rating in a report on Tuesday, January 23rd. Twelve investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. Cavium currently has a consensus rating of “Hold” and an average price target of $80.25.

Cavium (CAVM) traded down $0.53 during mid-day trading on Friday, hitting $86.57. The stock had a trading volume of 1,624,777 shares, compared to its average volume of 1,004,642. The firm has a market cap of $6,023.46, a P/E ratio of -84.87, a price-to-earnings-growth ratio of 2.13 and a beta of 1.33. The company has a current ratio of 2.87, a quick ratio of 2.27 and a debt-to-equity ratio of 0.81. Cavium has a 1-year low of $56.96 and a 1-year high of $90.83.

In related news, VP Anil Kumar Jain sold 8,500 shares of the company’s stock in a transaction on Tuesday, November 21st. The shares were sold at an average price of $85.90, for a total transaction of $730,150.00. Following the completion of the sale, the vice president now directly owns 91,616 shares of the company’s stock, valued at approximately $7,869,814.40. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, SVP Vincent P. Pangrazio sold 15,000 shares of the company’s stock in a transaction on Friday, November 10th. The stock was sold at an average price of $77.22, for a total transaction of $1,158,300.00. Following the sale, the senior vice president now directly owns 60,039 shares of the company’s stock, valued at $4,636,211.58. The disclosure for this sale can be found here. 4.65% of the stock is currently owned by corporate insiders.

Large investors have recently bought and sold shares of the business. SG Americas Securities LLC purchased a new position in Cavium in the 4th quarter valued at about $115,000. Cerebellum GP LLC purchased a new position in Cavium in the 4th quarter valued at about $126,000. US Bancorp DE boosted its position in Cavium by 201.3% in the 4th quarter. US Bancorp DE now owns 1,657 shares of the semiconductor provider’s stock valued at $139,000 after buying an additional 1,107 shares during the last quarter. World Asset Management Inc purchased a new position in Cavium in the 3rd quarter valued at about $203,000. Finally, Comerica Bank purchased a new position in Cavium in the 4th quarter valued at about $227,000. 99.05% of the stock is owned by institutional investors.

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About Cavium

Cavium, Inc is a provider of integrated semiconductor processors that enable intelligent processing for wired and wireless infrastructure and cloud for networking, communications, storage and security applications. The Company’s products consist of multi-core processors for embedded and data center applications, network connectivity for server and switches, storage connectivity, and security processors for offload and appliance.

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