Benchmark Cuts Price Target and Estimates on Entropic (ENTR) Following Poor Q2 Results and Q3 Guidance
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Price: $15.31 --0%
Rating Summary:
4 Buy, 7 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 7 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Benchmark is maintaining its Buy rating on shares of Entropic (NASDAQ: ENTR), but is reducing its price target from $12 to $9 following its Q2 results.
The company reported its Q2 results with revenue below what managements guidance was calling for and EPS missing the Street's estimate by $0.01. ENTR also forecasting that Q3 revenue will decline to the $50-$52 million range.
As a result of Q2's performance and Q3 guidance, the firm is cutting its Q3 revenue and EPS estimates from $69 million and $0.18 to $51 million and $0.11. It is also lowering its FY11 estimates from $277 million and $0.80 to $238 million and $0.61.
The firm believes that the market transition to MoCA 2.0 may help the company's competitive position as they are a year ahead of their major competitor Broadcom (Nasdaq: BRCM).
An analyst at Benchmark comments, "Looking into 4Q11, we expect Entropic’s revenue to rebound, assuming the potential labor dispute at Verizon is averted. Also, assuming the US economy continues on a gradual economy growth pattern, satellite TV service providers are likely to become more promotional."
For more ratings news on Entropic click here and for the rating history of Entropic click here.
Shares of Entropic closed at $6.68 yesterday.
The company reported its Q2 results with revenue below what managements guidance was calling for and EPS missing the Street's estimate by $0.01. ENTR also forecasting that Q3 revenue will decline to the $50-$52 million range.
As a result of Q2's performance and Q3 guidance, the firm is cutting its Q3 revenue and EPS estimates from $69 million and $0.18 to $51 million and $0.11. It is also lowering its FY11 estimates from $277 million and $0.80 to $238 million and $0.61.
The firm believes that the market transition to MoCA 2.0 may help the company's competitive position as they are a year ahead of their major competitor Broadcom (Nasdaq: BRCM).
An analyst at Benchmark comments, "Looking into 4Q11, we expect Entropic’s revenue to rebound, assuming the potential labor dispute at Verizon is averted. Also, assuming the US economy continues on a gradual economy growth pattern, satellite TV service providers are likely to become more promotional."
For more ratings news on Entropic click here and for the rating history of Entropic click here.
Shares of Entropic closed at $6.68 yesterday.
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