Needham & Company Maintains a 'Buy' on Standard Microsystems (SMSC); Beat and In-Line Guide a Nice Preamble to Analyst Event

Needham & Company maintains a 'Buy' on Standard Microsystems (NASDAQ: SMSC), PT lowered from $34 to $31.

Needham analyst says, "SMSC reported strong results for MayQ1 with both revenue and EPS higher than our estimates. The guide for AugQ2 revenue came in higher than consensus, but EPS a bit lighter on a higher tax rate and OPEX resulting from the BridgeCo acquisition. Industrial and Automotive exhibited strong sequential growth whereas Computing was weak (as expected), however the PC inventory channel has recovered from an overbuild build resulting from Japan and is now at normal levels. The guidance was better than we had feared and coupled with the Analyst Day tomorrow we expect strength in SMSC shares. To account for the higher revenue and OPEX expected from BridgeCo, we adjusted our FY2012 revenue/EPS estimates from $442M/$1.60 to $447M/$1.65, and FY2013 estimates from $477M/$2.00 to $482M/$1.95."

For more ratings news on Standard Microsystems click here and for the rating history of Standard Microsystems click here.

Shares of Standard Microsystems closed at $24.01 yesterday.

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