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Barclays on U.S. Semiconductors: 2Q12 Earnings Preview - Minimal Cuts on Names Levered to Samsung

July 13, 2012 2:33 PM EDT Send to a Friend
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Price: $39.38 --0%

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Barclays on U.S. Semiconductors: 2Q12 Earnings Preview -

Analyst, C.J. Muse, said, "We look for broadly in line 2Q results but see risk to consensus estimates for 2H12, with the Street still modeling a seasonal +7% uplift for 3Q (10-year average of +7.3%) vs. our now +5.7%. But this shouldn't come as a surprise, with shares largely discounting these cuts and investors focused more on timing of stabilization. The one area where earnings cuts will likely be minimal is for names levered to the strong Samsung smartphone builds (Broadcom (Nasdaq: BRCM), RF Micro (Nasdaq: RFMD), SkyWorks (Nasdaq: SWKS) & Maxim Integrated (Nasdaq: MXIM)), which helped offset the anticipated lull in Apple (Nasdaq: AAPL) builds and softness elsewhere in handsets (i.e., Nokia (NYSE: NOK), HTC, RIM (Nasdaq: RIMM)).

Barclays lowers price target on Cypress (NYSE: CY) from $20 to $14, FY12 EPS estimate from $0.89 to $0.75 and FY13 from $1.22 to $0.91. (OW-rated)

Volterra Semi (Nasdaq: VLTR) price target lowered from $33 to $28, FY12 EPS estimate lowered from $1.49 to $1.44 and FY13 from $1.65 to $1.60. (OW-rated)

Xilinx (Nasdaq: XLNX) price target cut $2 to $36, FY12 EPS estimate from $2.16 to $1.98, FY13 from $2.31 to $2.22. (EW-rated)

Altera Corp. (Nasdaq: ALTR) FY12 EPS estimate cut from $1.78 to $1.66 and FY13 from $2.25 to $2.15. (OW-rated)

Freescale Semi (NYSE: FSL) FY12 EPS cut from $0.60 to $0.25 and FY13 from $1.30 to $0.86. (EW-rated)

Linear Tech (Nasdaq: LLTC) FY13 EPS estimate lowered from $2.14 to $1.98.

MagnaChip (NYSE: MX) FY12 EPS estimate lowered from $1.85 to $1.58 and FY13 from $1.95 to $1.75.

NXP Semi (Nasdaq: NXPI) FY12 EPS estimate lowered from $1.75 to $1.68. (OW-rated)

Spansion (Nasdaq: CODE) FY12 EPS lowered from $0.95 to $0.78 and FY13 from $1.50 to $1.32. (EW-rated)

Texas Instruments (NYSE: TXN) FY12 EPS cut from$1.75 to $1.70 and FY13 maintained at $2.25.




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Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

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