Needham & Company Maintains a 'Buy' on ARRIS Group (ARRS); Mixed 1Q11 Results; Weak Guidance on CMTS ASP Pressure
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Price: $31.66 --0%
Rating Summary:
5 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
5 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Needham & Company maintains a 'Buy' on ARRIS Group (NASDAQ: ARRS), lowers PT from $16 to $14.
Needham analyst says, "In our upgrade of ARRS shares last Q, we cited improving demand trends in the company’s CMTS business and the likely 2H11 ramp of its IP home gateway. While we had noted CMTS ASP erosion as a potential risk, we underestimated the magnitude and timing of the apparent reduction seen in 1Q11, which would appear to mitigate some of the revenue and earnings ramp we had previously modeled in 2H11. We are therefore reducing our estimates to reflect the more muted outlook, while maintaining our Buy as we look to see if the company can deliver on its relatively optimistic outlook for 2H11."
"Taking conservative cut at estimates. 2011 estimates go to $1.10B/$0.67 NG EPS from $1.12B/$0.78 and 2012 go to $1.17B/$0.77 from $1.22B/$0.97."
For more ratings news on ARRIS Group click here and for the rating history of ARRIS Group click here.
Shares of ARRIS Group closed at $12.99 yesterday.
Needham analyst says, "In our upgrade of ARRS shares last Q, we cited improving demand trends in the company’s CMTS business and the likely 2H11 ramp of its IP home gateway. While we had noted CMTS ASP erosion as a potential risk, we underestimated the magnitude and timing of the apparent reduction seen in 1Q11, which would appear to mitigate some of the revenue and earnings ramp we had previously modeled in 2H11. We are therefore reducing our estimates to reflect the more muted outlook, while maintaining our Buy as we look to see if the company can deliver on its relatively optimistic outlook for 2H11."
"Taking conservative cut at estimates. 2011 estimates go to $1.10B/$0.67 NG EPS from $1.12B/$0.78 and 2012 go to $1.17B/$0.77 from $1.22B/$0.97."
For more ratings news on ARRIS Group click here and for the rating history of ARRIS Group click here.
Shares of ARRIS Group closed at $12.99 yesterday.
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