| Tech Stock News and Analysis |
|
|
| Monday, September 25, 2006 |
Microsemi Sinks on Outlook, Downgrade
Microsemi Shares Fall Sharply on 4Q Warnings, Needham Cuts Rating on Stock
Shares of power management semiconductor maker Microsemi Corp. plunged in Monday morning trading, setting a new year low, after the company lowered its fourth-quarter outlook, prompting a downgrade at Needham & Co.
Perform Instant Background Checks
On Friday, Microsemi said it expects fourth-quarter results to fall short of previous expectations due to "weakness in the overall market."
Shares of Microsemi, which have traded between $21.20 and $31.85 over the last year, were down $2.90, or 12.7 percent, at $19.87 in morning trading on the Nasdaq. Earlier in the session shares set a new 52-week low of $19.73.
The company now forecasts fourth-quarter earnings of 25 cents to 27 cents per share, excluding one-time charges, and projects sales will be roughly flat to up 2 percent sequentially. In July, the company said it expected earnings of 29 cents to 31 cents per share for the fourth quarter on a 7 percent to 9 percent sequential increase in sales.
Needham & Co. analyst N. Quinn Bolton cut his rating on the stock to "Buy" from "Strong Buy," and lowered his price target to $25 from $32. Still, Bolton thinks the company's future prospects appear sound.
"The company's longer-term revenue growth and operating margin expansion opportunities still remain intact in our opinion," Bolton wrote in a note to clients. "We encourage investors to accumulate positions in the low-$20 range."
Microsemi's announcement comes on the heels of similar warnings from other integrated circuit manufacturers, including Maxim Integrated Products Inc., Microchip Technology Inc., Silicon Laboratories Inc. and Advanced Analogic Technologies Inc. |
|
|
|
|
| Previous Post |
|
| Archives |
|
| Links |
|
| Powered by |
 |
|
