On Monday after the close, we’ll get to see earnings out of Rambus Inc. (NASDAQ: RMBS). The estimates from First Call for the royalty chip company are -$0.10 EPS on $40 million in revenues, although we caution this is very thinly covered . Estimates for fiscal 2008 are $0.25 EPS on $240.5 million in revenues.
It appears that analysts have an average price target of $28. If Friday’s closing prices are any indicator and if the earnings were coming out immediately, it appears that options traders would be pricing in a move of up to $1.25 to $1.40 in either direction.
If you have been following Rambus, you’ll probably remember that it recently escaped the options probe mostly unscathed. There was also the recent departure of its chief legal officer that many had noted was responsible for many of the design wins that had allowed it to keep its royalties.
Rambus’ 52-week trading range is $12.05 to $23.95.
Jon C. Ogg
February 2, 2008
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