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RMBS Set to Report Q2 Earnings: What's in Store for the Stock?

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Key Takeaways

  • RMBS is projected to post Q2 revenues of $167M, up 21.7% year over year, and EPS of 61 cents, up 32.6%.
  • Growth in DDR5, PMICs, MRDIMMs, and AI-driven IP demand is likely to have supported Rambus' Q2 performance.
  • Price erosion from contract renegotiations and macro headwinds may have weighed on quarterly results.

Rambus Inc. (RMBS - Free Report) is scheduled to report second-quarter 2025 results on July 28, after market close.

The Zacks Consensus Estimate for Rambus’ second-quarter revenues is pegged at $167 million, suggesting a 21.7% increase from the year-ago quarter’s reported figure. The consensus mark for earnings per share is pegged at 61 cents, indicating a 32.6% increase from the year-ago quarter’s figure.

In the trailing four quarters, RMBS’ earnings beat the Zacks Consensus Estimate thrice and matched once, with the average surprise being 4.63%.

Factors to Note for Rambus Stock

Rambus’ quarterly performance is likely to have benefited from increased demand for its DDR5 memory chips. Moreover, the traction in Rambus’ newly introduced chips, including PMICs, MRDIMM chipsets, and Client Clock Drivers, is also expected to have gained from customer qualification cycles in server and client markets.

Rambus, Inc. Price and EPS Surprise

Rambus, Inc. Price and EPS Surprise

Rambus, Inc. price-eps-surprise | Rambus, Inc. Quote

Rambus, which offers components to semiconductor manufacturers, is anticipated to have gained from the chip demand from PC manufacturers and data-center operators. Moreover, the growth of AI applications and the HBM4 market is expected to have boosted the demand for Rambus' memory and interconnect IP, including PCIe 7 and Quantum Safe security IP.

RMBS has plans to target high-end systems that need greater bandwidth and capacity in the second half of fiscal 2026. The anticipation of growth of Rambus’ MRDIMMs in the second half of fiscal 2026 is likely to have reflected positively on the company's top line.

Nonetheless, the weakening global economy amid ongoing macroeconomic and geopolitical issues might have hurt RMBS’ performance in the second quarter. Additionally, Rambus’ second-quarter results might be hurt by mid-single-digit price erosion due to annual contract renegotiations.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Rambus this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

RMBS has an Earnings ESP of 0.00% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Lam Research (LRCX - Free Report) , Sensata Technologies (ST - Free Report) and Electronic Arts (EA - Free Report) are some stocks with favorable combinations.

Lam Research has an Earnings ESP of +1.87% and carries a Zacks Rank #2 at present. Lam Research is slated to report its fourth-quarter fiscal 2025 results on July 30. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sensata Technologies has an Earnings ESP of +1.45% and a Zacks Rank #2 at present. Sensata Technologies is set to report its second-quarter 2025 results on July 29.

Electronic Arts has an Earnings ESP of +53.06% and a Zacks Rank #2 at present. Electronic Arts is set to report its second-quarter 2025 results on July 29.

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