DA Davidson Raises Price Target on Kulicke and Soffa Industries (KLIC), Expects Record Sales in Q3
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Price: $99.09 +3.43%
Rating Summary:
5 Buy, 3 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 3 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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DA Davidson is reiterating its Buy rating on shares of Kulicke and Soffa Industries (NASDAQ: KLIC) and is raising its price target to $20 as Q3 is expected to report record results.
The company reported its Q2 earnings with sales of $207 million and GAAP EPS of $0.54, which were both ahead of the firms estimates of $185 million and $0.30. The firm notes that demand for its wirebonders and wedge bonders drove a 39% sequential increase in sales.
KLIC released its Q3 guidance with sales expected to in the range of $255-$275 million, while the street's current estimate is $201 million. The firm also stated that gross margins are expected to increase while operating expenses are expected to fall, which should allow the company to post earnings that exceed the previous peak of last September.
The firm is raising its Q3 sales and GAAP EPS estimates to $265 million and $0.83, and its CY11 and CY12 estimates to $2.25 and $2.00.
DA Davidson comments, "While KLIC continues to see high demand from ASE (NYSE: ASX) and SPIL (Nasdaq: SPIL), its two largest OSAT customers, 2nd tier OSATs and IDMs are also joining the copper revolution and this should add legs to the transition that we believe is still in its early stages."
For more ratings news on Kulicke and Soffa Industries click here and for the rating history of Kulicke and Soffa Industries click here.
Shares of Kulicke and Soffa Industries closed at $10.20 yesterday.
The company reported its Q2 earnings with sales of $207 million and GAAP EPS of $0.54, which were both ahead of the firms estimates of $185 million and $0.30. The firm notes that demand for its wirebonders and wedge bonders drove a 39% sequential increase in sales.
KLIC released its Q3 guidance with sales expected to in the range of $255-$275 million, while the street's current estimate is $201 million. The firm also stated that gross margins are expected to increase while operating expenses are expected to fall, which should allow the company to post earnings that exceed the previous peak of last September.
The firm is raising its Q3 sales and GAAP EPS estimates to $265 million and $0.83, and its CY11 and CY12 estimates to $2.25 and $2.00.
DA Davidson comments, "While KLIC continues to see high demand from ASE (NYSE: ASX) and SPIL (Nasdaq: SPIL), its two largest OSAT customers, 2nd tier OSATs and IDMs are also joining the copper revolution and this should add legs to the transition that we believe is still in its early stages."
For more ratings news on Kulicke and Soffa Industries click here and for the rating history of Kulicke and Soffa Industries click here.
Shares of Kulicke and Soffa Industries closed at $10.20 yesterday.
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