Needham & Company Reiterates a 'Buy' on Newport Corp. (NEWP); Investors Begin to Better Appreciate Diversification Strategy
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Price: $6.84 +1.79%
Rating Summary:
3 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company reiterates a 'Buy' on Newport Corp. (NASDAQ: NEWP).
Needham analyst says, "Newport, a leading supplier of a wide range of photonics products and lasers, is on track to deliver an outstanding year in 2011, with EPS expected to be up nearly 20% on record revenues of approximately $545M, up around 13%. While NEWP has begun to experience the headwinds of a cyclical downturn in its legacy semi-cap business, the recent acquisitions of Ophir and High-Q Technologies provide the company with a much more balanced revenue base going forward. As a result, even with a cyclical decline in its microelectronics business, which on a pro forma basis is expected to represent 26% of revenues in 2011 versus 34% prior to the acquisitions of Ophir and High-Q, management still sees revenues in 2012 in excess of the $650M-$655M that the standalone NEWP, Ophir and High Q businesses are expected to generate in 2011. For our part, we estimate revenue in 2012 at $662M, with operating profit expected to be up in excess of 25%. We continue to estimate EPS at $1.32."
For an analyst ratings summary and ratings history on Newport Corp. click here. For more ratings news on Newport Corp. click here.
Shares of Newport Corp. closed at $13.94 yesterday.
Needham analyst says, "Newport, a leading supplier of a wide range of photonics products and lasers, is on track to deliver an outstanding year in 2011, with EPS expected to be up nearly 20% on record revenues of approximately $545M, up around 13%. While NEWP has begun to experience the headwinds of a cyclical downturn in its legacy semi-cap business, the recent acquisitions of Ophir and High-Q Technologies provide the company with a much more balanced revenue base going forward. As a result, even with a cyclical decline in its microelectronics business, which on a pro forma basis is expected to represent 26% of revenues in 2011 versus 34% prior to the acquisitions of Ophir and High-Q, management still sees revenues in 2012 in excess of the $650M-$655M that the standalone NEWP, Ophir and High Q businesses are expected to generate in 2011. For our part, we estimate revenue in 2012 at $662M, with operating profit expected to be up in excess of 25%. We continue to estimate EPS at $1.32."
For an analyst ratings summary and ratings history on Newport Corp. click here. For more ratings news on Newport Corp. click here.
Shares of Newport Corp. closed at $13.94 yesterday.
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