Needham & Company Maintains a 'Buy' on MEMSIC Inc. (MEMS); Q1 Results Solid However Q2 Guide Mixed
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Price: $30.60 --0%
Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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Needham & Company maintains a 'Buy' on MEMSIC Inc. (NASDAQ: MEMS)
Needham analyst says, "MEMS reported Q1 results above our estimates on both the top and bottom line. However the Q2 guide, though in line with our top line estimate, will show a lower level of profitability than had been anticipated due to mobile phone strength which carries a lower GM. This pattern of modest revenue upside coupled with muted growth in earnings has been a multi-quarter pattern at MEMS. While MEMS has announced initial products in both the magnetic sensor and mote platform areas – both key and core to MEMS' strategy – the financial performance remains sluggish. We would like to see more cost control and margin expansion on this the revenue bump before we can get constructive on MEMS from a growth perspective. On a value perspective, the shares are enticing with $1.50 in net cash per share and trading at just 0.3x EV/2011 sales."
"We adjusted our FY2011 Rev/EPS ests to $56M and ($0.14) from $53.0M/($0.10) and our FY2012 from $63M/$0.00 to $67M/$0.00. Changes in ests were due to lower GM on higher revenue."
For more ratings news on MEMSIC Inc. click here and for the rating history of MEMSIC Inc. click here.
Shares of MEMSIC Inc. closed at $3.44 yesterday.
Needham analyst says, "MEMS reported Q1 results above our estimates on both the top and bottom line. However the Q2 guide, though in line with our top line estimate, will show a lower level of profitability than had been anticipated due to mobile phone strength which carries a lower GM. This pattern of modest revenue upside coupled with muted growth in earnings has been a multi-quarter pattern at MEMS. While MEMS has announced initial products in both the magnetic sensor and mote platform areas – both key and core to MEMS' strategy – the financial performance remains sluggish. We would like to see more cost control and margin expansion on this the revenue bump before we can get constructive on MEMS from a growth perspective. On a value perspective, the shares are enticing with $1.50 in net cash per share and trading at just 0.3x EV/2011 sales."
"We adjusted our FY2011 Rev/EPS ests to $56M and ($0.14) from $53.0M/($0.10) and our FY2012 from $63M/$0.00 to $67M/$0.00. Changes in ests were due to lower GM on higher revenue."
For more ratings news on MEMSIC Inc. click here and for the rating history of MEMSIC Inc. click here.
Shares of MEMSIC Inc. closed at $3.44 yesterday.
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