Needham & Company Reaffirms a 'Buy Electro Scientific (ESIO); FQ3 Bookings Plunge, But Highest Profile Smartphone/Tablet Customer In The Background
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Price: $29.99 --0%
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company reaffirms a 'Buy Electro Scientific Industries (NASDAQ: ESIO) price target cut from $22 to $16.
Needham analyst says, "Citing a dramatic reduction in orders for semiconductor, LED and passive component equipment in the last 2 months, ESIO reported sharply lower FQ2 bookings. At the same time, the funnel of opportunities in the micromachining segment, together with solid demand in the flex-interconnect market, suggest this will not be the traditional cyclical downturn at ESIO. Given the potential in particular for follow-on orders in advanced micro-machining, we would view a pullback in the stock today as a buying opportunity. We believe investors should take into account not only its nearly $8/share in net cash, but the fact that the largest player in the smart phone and tablet market has consistently been ESIO’s biggest customer during the last three years."
"We are reducing our F2Q EPS estimate to a loss of $0.04 from a profit of $0.16 on revenues of $50M, down from $73M previously. We are lowering our F12 non-GAAP EPS to $0.56 from $0.95 on $264M of revenues. We are lowering our F13 EPS estimate to $0.60 from $1.05 on revenues of $290M versus our earlier $338M estimate."
For more ratings news on Electro Scientific Industries click here and for the rating history of Electro Scientific Industries click here.
Shares of Electro Scientific Industries closed at $12.51 yesterday.
Needham analyst says, "Citing a dramatic reduction in orders for semiconductor, LED and passive component equipment in the last 2 months, ESIO reported sharply lower FQ2 bookings. At the same time, the funnel of opportunities in the micromachining segment, together with solid demand in the flex-interconnect market, suggest this will not be the traditional cyclical downturn at ESIO. Given the potential in particular for follow-on orders in advanced micro-machining, we would view a pullback in the stock today as a buying opportunity. We believe investors should take into account not only its nearly $8/share in net cash, but the fact that the largest player in the smart phone and tablet market has consistently been ESIO’s biggest customer during the last three years."
"We are reducing our F2Q EPS estimate to a loss of $0.04 from a profit of $0.16 on revenues of $50M, down from $73M previously. We are lowering our F12 non-GAAP EPS to $0.56 from $0.95 on $264M of revenues. We are lowering our F13 EPS estimate to $0.60 from $1.05 on revenues of $290M versus our earlier $338M estimate."
For more ratings news on Electro Scientific Industries click here and for the rating history of Electro Scientific Industries click here.
Shares of Electro Scientific Industries closed at $12.51 yesterday.
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