Needham & Company Reiterates a 'Hold' on Supertex (SUPX); Preparing for a Tough DecQ3 as Macro Weakness Dampens Revenue
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Price: $6.99 +0.58%
Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company reiterates a 'Hold' on Supertex (NASDAQ: SUPX).
Needham analyst says, "SUPX posted SepQ2 revenue that was just a touch below consensus with EPS that came in above expectations on lower than anticipated R&D and tax rate. The DecQ3 revenue guidance (a 5% decline Q/Q) is about on par for the industry but roughly 10% below consensus. This would make DecQ3 the fourth straight quarter of Y/Y declines of over 10%. Mgmt attributed the lower SepQ2 top line to customers reducing channel inventory which translated to less revenue from custom foundry services. While there was strength in medical ultrasound, LED for general lighting, and optical MEMS drivers, LED backlighting was weak (on the soft TV market) along with SUPX’s automatic testing driver. Weakness is expected to continue Q/Q because of the macro environment and seasonality of medical ultrasound. We lowered FY12 revenue/EPS from $73M/$0.72 to $68M/$0.69 and our FY13 revenue/EPS from $77M/$0.80 to $71M/$0.75. With no near-term catalysts and limited long-term visibility, we reiterate our rating."
For more ratings news on Supertex click here and for the rating history of Supertex click here.
Shares of Supertex closed at $17.65 yesterday.
Needham analyst says, "SUPX posted SepQ2 revenue that was just a touch below consensus with EPS that came in above expectations on lower than anticipated R&D and tax rate. The DecQ3 revenue guidance (a 5% decline Q/Q) is about on par for the industry but roughly 10% below consensus. This would make DecQ3 the fourth straight quarter of Y/Y declines of over 10%. Mgmt attributed the lower SepQ2 top line to customers reducing channel inventory which translated to less revenue from custom foundry services. While there was strength in medical ultrasound, LED for general lighting, and optical MEMS drivers, LED backlighting was weak (on the soft TV market) along with SUPX’s automatic testing driver. Weakness is expected to continue Q/Q because of the macro environment and seasonality of medical ultrasound. We lowered FY12 revenue/EPS from $73M/$0.72 to $68M/$0.69 and our FY13 revenue/EPS from $77M/$0.80 to $71M/$0.75. With no near-term catalysts and limited long-term visibility, we reiterate our rating."
For more ratings news on Supertex click here and for the rating history of Supertex click here.
Shares of Supertex closed at $17.65 yesterday.
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