Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of TriQuint Semiconductor (NAS: TQNT) are down nearly 12% today after a mixed earnings report, which presented earnings per share ahead of the analyst consensus, but balanced that positive note with an underwhelming forward earnings estimate.

So what: TriQuint's adjusted earnings per share came in at $0.02, which easily beat expectations that the company's earnings would break even. However, the fourth quarter is now expected to see EPS in the $0.01 to $0.03 range, significantly lower than the analyst consensus of $0.06. Fourth-quarter revenue projections, at $220 million to $225 million, are higher than the $220.3 million consensus estimate, but the bottom line is what really counts.


Now what: Analysts at Lazard Capital downgraded TriQuint to a hold from its earlier buy rating as a result of the poor guidance. TriQuint's P/E ratio is still near its all-time highs after the drop, and that valuation should wind up going negative after financial sites input the newest numbers, considering that GAAP earnings showed a loss of $11.2 million for the third quarter. TriQuint's had a difficult time maintaining its momentum since net income peaked early in 2011, and with underwhelming earnings ahead, there's little reason to expect this situation to reverse in the near future.

Want more news and updates? Add TriQuint to your Watchlist now.

The article Why TriQuint's Shares Sank originally appeared on Fool.com.

Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter @TMFBiggles for more news and insights. The Motley Fool owns shares of TriQuint Semiconductor. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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