Rambus (RMBS) shares rallied 10.8% in the last trading session to close at $42.47. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 12.7% loss over the past four weeks. The optimism surrounding the stock can be attributed to the rising adoption of Ramus' products. The company is rapidly expanding its portfolio with innovative product launches which helps in attracting more customers. Recently, it launched the ...

Rambus (RMBS) shares have plunged 42% year to date (YTD) against the Zacks Electronics - Semiconductors industry's growth of 13.6%. RMBS stock also underperformed the Zacks Computer and Technology Sector and the S&P 500's growth of 14.6% and 15%, respectively, in the YTD period. Rambus stock has declined significantly since its second-quarter 2024 results, wherein its revenues fell short of the analysts' expectations. Moreover, a massive decline in GAAP earnings per share also turned investors cautious abou ...

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Investment Rating - The report assigns a positive outlook for Rambus, indicating expectations for revenue growth in the upcoming quarters, particularly driven by strong product performance and market demand for DDR5 technology [2][12]. Core Insights - Rambus reported total revenue of $132.1 million for Q2 FY2024, a year-over-year increase of 10.3% from $119.8 million in the same quarter last year, primarily driven by strong demand in high-value memory products [5][17]. - The company experienced significant growth in operating profit, which reached $40.3 million, up 244.4% from $11.7 million in the previous year, resulting in an operating margin of 31% compared to 10% last year [5][17]. - Despite the overall revenue growth, net income decreased by 78.6% to $36.1 million from $168.9 million in the previous year, attributed to various factors including changes in revenue recognition [5][17]. Revenue Breakdown Product Revenue - Product revenue amounted to $56.7 million, a 3.1% increase year-over-year, driven mainly by DDR5 technology [8][17]. Royalty Revenue - Royalty revenue was $56.4 million, up 38.6% from $40.7 million in the previous year, with licensing fees at $61.5 million, reflecting a 2.2% increase [9][17]. Contract and Other Revenue - Contract and other revenue decreased by 21.2% to $1.9 million, primarily consisting of silicon IP, which is expected to grow due to increasing demand driven by AI applications [11][17]. Q3 FY2024 Guidance - Rambus anticipates Q3 FY2024 revenue to be between $144 million and $150 million, with royalty income projected between $59 million and $65 million, and licensing fees expected between $60 million and $66 million [12][17]. - Product revenue is expected to be between $62 million and $68 million, with a forecast of double-digit growth both sequentially and year-over-year [12][17]. Market Position and Future Outlook - Rambus is well-positioned in the DDR5 market, with ongoing developments in high-performance memory solutions and a strong focus on AI-driven applications [13][15]. - The company is expanding its market opportunities through strategic investments in innovative products, particularly in the areas of power management integrated circuits (PMICs) and silicon IP solutions [14][15].

Core Viewpoint - Rambus experienced a significant decline in stock price following a disappointing earnings report, with shares dropping nearly 29% over five trading days [1] Financial Performance - Rambus reported total revenue of over $132 million for Q2, which is a 10% increase year-over-year, but net income fell sharply to slightly over $36 million ($0.33 per share) from nearly $169 million in Q2 2023 [2] - Analysts had anticipated higher revenue of $139 million and a net income of $0.45 per share, indicating a double miss on estimates [3] Revenue Breakdown - The largest revenue stream, product revenue, increased slightly to $56.7 million from $55 million year-over-year [4] - Royalties surged by 39% to $56.4 million, while contract and other revenue declined to $19 million from slightly over $24 million [4] Guidance - Rambus provided guidance for Q3, projecting product revenue between $62 million to $68 million, licensing billings of $60 million to $66 million, and contract and other revenue of $17 million to $23 million, with operating costs expected to be between $93 million to $97 million [5] - No revenue or profitability guidance was provided in the earnings release [6]

I believe that Rambus' prospects are strong, even though this investment thesis is not blemish-free. Essentially, I discuss what I believe is a questionable use of capital, particularly given the overall macro environment. Ultimately, I believe that Rambus has compelling prospects, especially given its strong focus on being cash flow generative. Rambus (NASDAQ:RMBS) delivered a lackluster outlook that saw its share drop 10% premarket. RMBS Q2 2024 As noted in their earnings call, Rambus is seeing positive c ...

Company Performance - Rambus reported quarterly earnings of $0.46 per share, exceeding the Zacks Consensus Estimate of $0.42 per share, and compared to earnings of $0.44 per share a year ago [7] - The company posted revenues of $137.2 million for the quarter ended June 2024, which was 1.30% below the Zacks Consensus Estimate and down from $139.3 million year-over-year [14] - Over the last four quarters, Rambus has surpassed consensus EPS estimates four times [8] Future Earnings Expectations - The current consensus EPS estimate for the upcoming quarter is $0.47 on revenues of $156.1 million, and for the current fiscal year, it is $1.78 on revenues of $599.7 million [5] - The estimate revisions trend for Rambus is mixed, leading to a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [10] Industry Context - The Electronics - Semiconductors industry, to which Rambus belongs, is currently in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [11] - Another company in the same industry, Diodes, is expected to report quarterly earnings of $0.27 per share, reflecting a year-over-year decline of 83% [12]

Rambus Inc. (NASDAQ:RMBS) Q2 2024 Earnings Conference Call July 29, 2024 5:00 PM ET Company Participants Desmond Lynch - Senior Vice President and Chief Financial Officer Luc Seraphin - President and Chief Executive Officer Conference Call Participants Kevin Cassidy - Rosenblatt Blayne Curtis - Jefferies Mehdi Hosseini - SIG Operator Welcome to the Rambus Second Quarter Fiscal Year 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. At the conclusion of our prepared rema ...

RAMBUS REPORTS SECOND QUARTER 2024 FINANCIAL RESULTS Exhibit 99.1 • Achieved solid Q2 results in line with expectations and generated outstanding cash from operations of $70.4 million • Delivered $56.7 million in product revenue, up 13% sequentially • Continued product portfolio expansion with DDR5 server PMICs, Client Clock Driver, and PCIe 7 IP solutions "We delivered solid second quarter results with robust growth in product revenue and excellent cash from operations," said Luc Seraphin, chief executive ...

The semiconductor industry is expected to have met its second-quarter earnings targets, driven by a solid rebound. The industry is continuing its dream run so far this year, which is evident from its growing semiconductor sales. The data-centric computing architecture, especially cloud computing, the Internet of Things (IoT) and the metaverse, which have expanded the horizon for semiconductors, is anticipated to have benefited the industry players. The solid adoption of smart devices, which need computing a ...