Dougherty & Co. Cuts Price Target on Advanced Energy Industries (AEIS), Second Half Looks Weak
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Price: $330.26 +0.22%
Rating Summary:
16 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
16 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Dougherty & Co is reaffirming its Neutral rating on shares of Advanced Energy Industries (NASDAQ: AEIS), but is cutting its price target from $13.50 to $11.00.
The firm reports that business must be worst than expected as the company missed its Q2 pre-announced earnings by $0.04-$0.05 and released its Q3 guidance $0.10 below the firms estimate and consensus.
The company's Q3 guidance is forecasting revenue of $130-$145 million with EPS of $0.20-$0.30. AEIS is expecting its Thin Films business will decline by 20 percent and remain at that level in Q4 before returning to 1H11 levels in FY12.
An analyst at Dougherty & Co comments, "Q2 sales were primarily impacted by several solar industry dynamics including declining panel prices, increasing competition, and changing incentive programs. These concerns along with 2H expected softness in the company's Thin Film markets are the primary reasons for lower than anticipated 3Q guidance and the reasons for our recent downgrade."
Dougherty & Co cut its Q3 revenue and EPS estimates from $138.0 million and $0.34 to $136.0 million and $0.24, its 2011 estimates from $564.7 million and $1.50 to $554.8 million and $1.21, and its 2012 estimates from $605.0 million and $1.55 to $580.0 million and $1.20.
For more ratings news on Advanced Energy Industries click here and for the rating history of Advanced Energy Industries click here.
Shares of Advanced Energy Industries closed at $11.40 yesterday.
The firm reports that business must be worst than expected as the company missed its Q2 pre-announced earnings by $0.04-$0.05 and released its Q3 guidance $0.10 below the firms estimate and consensus.
The company's Q3 guidance is forecasting revenue of $130-$145 million with EPS of $0.20-$0.30. AEIS is expecting its Thin Films business will decline by 20 percent and remain at that level in Q4 before returning to 1H11 levels in FY12.
An analyst at Dougherty & Co comments, "Q2 sales were primarily impacted by several solar industry dynamics including declining panel prices, increasing competition, and changing incentive programs. These concerns along with 2H expected softness in the company's Thin Film markets are the primary reasons for lower than anticipated 3Q guidance and the reasons for our recent downgrade."
Dougherty & Co cut its Q3 revenue and EPS estimates from $138.0 million and $0.34 to $136.0 million and $0.24, its 2011 estimates from $564.7 million and $1.50 to $554.8 million and $1.21, and its 2012 estimates from $605.0 million and $1.55 to $580.0 million and $1.20.
For more ratings news on Advanced Energy Industries click here and for the rating history of Advanced Energy Industries click here.
Shares of Advanced Energy Industries closed at $11.40 yesterday.
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