Needham & Company Maintains a 'Buy' on Intersil (ISIL); Par for the Semi Course; Lowers Q3 Guide on Economic Weakness
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Price: $22.49 --0%
Rating Summary:
6 Buy, 9 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
6 Buy, 9 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on Intersil (NASDAQ: ISIL) price target lowered from $15 to $13.
Needham analyst says, "ISIL preannounced Q3 results citing inadequate demand across all of the company’s end markets coupled with widely expected distributor inventory consumption. ISIL now expects Q3 revenue to be in the range of $184M-$188M vs. its previous guidance of $205M-$213M (an 11% down Q/Q guide vs. flat Q/Q originally). The company noted that the inventory consumption levels have shown signs of stabilization and expects bookings to recover and match consumption rates in Q3. We had been skeptical of ISIL’s flat Q/Q guide during the Q2 call, considering the guidance from its peers and its distributor channel increase. Unfortunately we didn't handicap our model enough to account for these risks. While this release is not a surprise to us (especially in light of the recent Texas Instruments (NYSE: TXN) and Fairchild Semi (NYSE: FCS) (Not/Rated) revisions), we must follow the reactionary course of action knowing ISIL shares will likely react favorably to this mixed visibility. We reduced our 2011 EPS/revenue estimates from $834M/$0.83 to $784M/$0.65 and our 2012 estimates from $918M/$1.05 to $852M/$0.85."
For more ratings news on Intersil click here and for the rating history of Intersil click here.
Shares of Intersil closed at $10.66 yesterday.
Needham analyst says, "ISIL preannounced Q3 results citing inadequate demand across all of the company’s end markets coupled with widely expected distributor inventory consumption. ISIL now expects Q3 revenue to be in the range of $184M-$188M vs. its previous guidance of $205M-$213M (an 11% down Q/Q guide vs. flat Q/Q originally). The company noted that the inventory consumption levels have shown signs of stabilization and expects bookings to recover and match consumption rates in Q3. We had been skeptical of ISIL’s flat Q/Q guide during the Q2 call, considering the guidance from its peers and its distributor channel increase. Unfortunately we didn't handicap our model enough to account for these risks. While this release is not a surprise to us (especially in light of the recent Texas Instruments (NYSE: TXN) and Fairchild Semi (NYSE: FCS) (Not/Rated) revisions), we must follow the reactionary course of action knowing ISIL shares will likely react favorably to this mixed visibility. We reduced our 2011 EPS/revenue estimates from $834M/$0.83 to $784M/$0.65 and our 2012 estimates from $918M/$1.05 to $852M/$0.85."
For more ratings news on Intersil click here and for the rating history of Intersil click here.
Shares of Intersil closed at $10.66 yesterday.
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