Why Entropic Communications Shares Dropped
Feb 6th 2013 4:20PM
Updated Feb 6th 2013 4:35PM
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 Entropic Communications dropped today by as much as 10% after the company announced earnings.
So what: Revenue in the fourth quarter came in at $89.7 million, leading to record annual sales of $321.7 million. Non-GAAP net income was $7.6 million, or $0.08 per share. The top line was a bit light relative to expectations, but earnings came in exactly as analysts were expecting.
Now what: Full-year adjusted earnings per share were $0.37. Entropic continues through its transition into a broad-based platform silicon company after acquisitions last year. CEO Patrick Henry said he expects 2013 to be a key year for the company's transition. It seems that the transition can't be completed soon enough for investors.
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The article Why Entropic Communications Shares Dropped originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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