Integrated Device Technology (IDTI) Shares Down After Decent Earnings Report; Wall Street Firms Respond

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IDTI Hot Sheet

Rating Summary:
1 Buy, 1 Hold, 0 Sell

Rating Trend:

Up

Today's Overall Ratings:
Up: 20 | Down: 11 | New: 38

Integrated Device Technology (Nasdaq: IDTI) fell over 10% this morning, but shares have been making back some losses in afternoon trading. The stock is currently down 4.52%. Today's drop stems from the company's Q3 earnings report, which was issues after the bell last night.

Interestingly, third quarter results topped consensus estimates by $0.02 ($0.06 vs. Wall Street $0.04) on revenues of $120 million, which was basically in-line. Although, on a GAAP basis, continuing operations were a loss of $0.01.

Q1 guidance was between $0.02-0.04 vs. consensus of $0.04 and revenue outlook was between $114-121 mln vs. $120 mln consensus.

This morning, Canaccord Genuity reiterated a 'Buy' rating and raised its price target to $8.

Canaccord analyst, Bobby Burleson, said, "...Management sees Romley server upgrade driving better-than-seasonal revenues for Computing in the March quarter. We believe upside to our revised estimates could come from server memory interface and wireless infrastructure over the next few quarters."

Also, Barclays maintained an 'Equalweight' rating and $6 price target.

Barclays analyst, Blayne Curtis, said, "While CQ1 represents a sales bottom, we remain on the sidelines as we await evidence of IDT's potential growth drivers and operational leverage beyond the general recovery."

"Our CY12 revenue/EPS move to $504M/$0.23 ($508M/$0.29 prior) and CY13 move to $556M/$0.42 (from $552M/$0.41)."

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