Needham Cuts PT on Newport (NEWP), Sees Continued Weakness in Research and Defense
Tweet
Share
E-mailGet Alerts NEWP Hot Sheet
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
Join SI Premium – FREE
Needham & Company maintained a Buy on Newport Corp. (NASDAQ: NEWP) and cut its price target to $14.00 (from $18.00).
"With the increasingly negative tone in the semi-cap market and no sign of near-term catalysts in NEWP’s research and defense markets, we are scaling back our Q4 and 2013 estimates," said analyst James Ricchiuti.
Analysts think Street estimates are likely to move lower and earnings improvement over the next year will come primarily from cost-reduction initiatives.
"Given the weakening fundamentals, we acknowledge that it is difficult to make a case for meaningful multiple expansion in the near term, though the shares should see a bounce assuming mgmt executes on its cost-savings efforts," added Ricchiuti.
Needham lowered Q4 GAAP EPS est. to $0.15 ($0.30 non-GAAP) from $0.18 on revenue of $148.5 million, down from $155 million previously.
It also reduced 2013 GAAP EPS est. to $0.95 ($1.38 non-GAAP) from $1.16 on revenue of $630 million, down from prior $683 million estimate.
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 $10.73 yesterday.
"With the increasingly negative tone in the semi-cap market and no sign of near-term catalysts in NEWP’s research and defense markets, we are scaling back our Q4 and 2013 estimates," said analyst James Ricchiuti.
Analysts think Street estimates are likely to move lower and earnings improvement over the next year will come primarily from cost-reduction initiatives.
"Given the weakening fundamentals, we acknowledge that it is difficult to make a case for meaningful multiple expansion in the near term, though the shares should see a bounce assuming mgmt executes on its cost-savings efforts," added Ricchiuti.
Needham lowered Q4 GAAP EPS est. to $0.15 ($0.30 non-GAAP) from $0.18 on revenue of $148.5 million, down from $155 million previously.
It also reduced 2013 GAAP EPS est. to $0.95 ($1.38 non-GAAP) from $1.16 on revenue of $630 million, down from prior $683 million estimate.
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 $10.73 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
- Freedom Broker Upgrades Serve Robotics (SERV) to Buy
- Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
Needham & Company, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
