Avian Says RF Micro Warning Bad News for Spreadtrum (SPRD), RDA (RDA)
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Price: $30.93 --0%
Rating Summary:
8 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
8 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Analysts at Avian are negative on shares of Spreadtrum (Nasdaq: SPRD) following recent guidance from RF Micro (Nasdaq: RFMD).
The company reported revenue for its fiscal third quarter 2012 are going to be roughly $225, 10 percent below the Street’s consensus of $250.2 million. Management cited the weakness was due to sales of 2G components to China-based customers for entry-level handsets, as they were below expectations on slowing demand. This represents broad weakness in Multi-Market Products Group end markets.
Avian believes the low-end weakness may not only be present in China, but other countries around Asia including India. The firm believes this will be negative for companies such as Spreadtrum Communications, Rda Microelectronics Inc. (NASDAQ: RDA), and Tata Communications Limited (NYSE: TCL).
Shares of Spreadtrum are down 19 percent this afternoon; shares of Rda are down more than 5 percent.
The company reported revenue for its fiscal third quarter 2012 are going to be roughly $225, 10 percent below the Street’s consensus of $250.2 million. Management cited the weakness was due to sales of 2G components to China-based customers for entry-level handsets, as they were below expectations on slowing demand. This represents broad weakness in Multi-Market Products Group end markets.
Avian believes the low-end weakness may not only be present in China, but other countries around Asia including India. The firm believes this will be negative for companies such as Spreadtrum Communications, Rda Microelectronics Inc. (NASDAQ: RDA), and Tata Communications Limited (NYSE: TCL).
Shares of Spreadtrum are down 19 percent this afternoon; shares of Rda are down more than 5 percent.
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