DA Davidson Downgrades Entropic (ENTR) to Neutral, Cuts Price Target by 46%
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Price: $4.48 +2.52%
Rating Summary:
6 Buy, 5 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
6 Buy, 5 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
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DA Davidson downgraded shares of Entropic (NASDAQ: ENTR) to a Neutral rating from its previous rating of Buy and cut its price target from $13 to $7 following its Q2 results.
The company released its Q2 results with revenue of $61.5 million and non-GAAP EPS of $0.17, below the firms estimates of $65.1 million and $0.18. The firm notes that weakness across the company’s CSS business segment and MoCA segment lead to the decline in revenue.
The firm believes that Verizon's (NYSE: VZ) FiOS deployments have slowed and forecasts weak results in terms of sub adds for a couple of quarters.
Due to the NFL labor lockout, Direct TV subscription adds have been affected and management is now anticipating revenue in the range of $50-$52 million for Q3.
An analyst at DA Davidson comments, "While we still see MoCA as a fundamental standard in all North American set top boxes, the adoption rate that we were hoping for, has not materialized. With a lack of a near-term catalysts and weaker guidance, we believe it’s best to remain on the sidelines."
DA Davidson is cutting its FY11 and FY12 EPS estimates from $0.80 and $0.83 to $0.61 and $0.50. The firm is also lowering its revenue estimates from $276.5 million and $307.2 million to $237.3 million and $232.9 million.
For more ratings news on Entropic click here and for the rating history of Entropic click here.
Shares of Entropic closed at $6.68 yesterday, with a 52 week range of $6.36-$13.96.
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The company released its Q2 results with revenue of $61.5 million and non-GAAP EPS of $0.17, below the firms estimates of $65.1 million and $0.18. The firm notes that weakness across the company’s CSS business segment and MoCA segment lead to the decline in revenue.
The firm believes that Verizon's (NYSE: VZ) FiOS deployments have slowed and forecasts weak results in terms of sub adds for a couple of quarters.
Due to the NFL labor lockout, Direct TV subscription adds have been affected and management is now anticipating revenue in the range of $50-$52 million for Q3.
An analyst at DA Davidson comments, "While we still see MoCA as a fundamental standard in all North American set top boxes, the adoption rate that we were hoping for, has not materialized. With a lack of a near-term catalysts and weaker guidance, we believe it’s best to remain on the sidelines."
DA Davidson is cutting its FY11 and FY12 EPS estimates from $0.80 and $0.83 to $0.61 and $0.50. The firm is also lowering its revenue estimates from $276.5 million and $307.2 million to $237.3 million and $232.9 million.
For more ratings news on Entropic click here and for the rating history of Entropic click here.
Shares of Entropic closed at $6.68 yesterday, with a 52 week range of $6.36-$13.96.
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