Citadel Securities Maintains an 'Edge Negative' on Power Integrations (POWI); Consumer and Computing Exposure Problematic for 3Q

July 27, 2011 7:08 AM EDT
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Price: $67.95 +0.59%

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Citadel Securities maintains an 'Edge Negative' on Power Integrations (NASDAQ: POWI) price target of $24.00.

Citadel analyst says, "We are modeling 2Q sales of $79.1MM (+3% qoq) and EPS (including ESO) of $0.34, both of which are roughly in line with consensus of $79.5MM in sales (+3%) and $0.35 EPS. This compares to sales guidance of $76-82MM, which assumes 1-2 percentage points of demand loss due to disruptions in Japan, and flat GMs qoq. As for 3Q, we are currently modeling sales growth of 3% qoq to $81.4MM and EPS of $0.35, both of which are well below consensus estimates ($84.9MM and $0.43). As with Intersil (Nasdaq: ISIL), we are particularly concerned about POWI's 3Q in light of TI's (NYSE: TXN) commentary regarding computing and consumer, which together accounted for 48% of revenue in 2Q (75% if we include wireless handsets)."

For more ratings news on Power Integrations click here and for the rating history of Power Integrations click here.

Shares of Power Integrations closed at $38.07 yesterday.

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