Needham & Company Downgrades Electro Scientific Industries (ESIO) to Hold
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Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 11
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Needham & Company downgraded Electro Scientific Industries (NASDAQ: ESIO) from Buy to Hold.
Analyst James Ricchiuti commented, "ESIO's gradual turnaround, which produced steady improvement in profitability over the past year, has hit a snag after bookings fell sharply in FQ1. While non-GAAP EPS for FQ1 were at the upper end of guidance, revenues were slightly below the low end of guidance. Bookings fell 45% sequentially to the lowest level in two years, as demand stalled in its flex via drilling business, which had been an engine driving the company’s recovery over the past year. Not surprisingly, guidance for FQ2 was well below expectations, with ESIO forecasting a loss after registering profits in the three preceding quarters. Acceptance to new products has been encouraging but is unlikely to offset the slowdown in the core business, which could persist for several quarters. Against this backdrop, we are moving to a Hold rating from Buy."
For an analyst ratings summary and ratings history on Electro Scientific Industries click here. For more ratings news on Electro Scientific Industries click here.
Shares of Electro Scientific Industries closed at $6.85 yesterday.
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