Why TriQuint Semiconductor Shares Tripped
Feb 7th 2013 4:15PM
Updated Feb 7th 2013 4:45PM
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 have fallen nearly 12% after providing weak forward guidance in an otherwise solid earnings report.
So what: The company reported fourth-quarter revenue of $233.6 million and adjusted earnings per share of $0.04, both of which beat the analyst consensus of $222.8 million and $0.02 per share, respectively. However, TriQuint now sees a weak first quarter ahead, and has projected $180 million to $190 million in revenue with a loss per share of between $0.12 and $0.14. These numbers fall well below the $205.3 million in revenue and zero earnings that Wall Street was looking for.
Now what: Analysts at both Longbow and Needham downgraded TriQuint from buy to hold as a result of the soft guidance, and it's not hard to see why. TriQuint has had a real roller-coaster ride with its earnings and that coaster looks to be rolling lower into the year. The company has a reasonable amount of cash on hand, and has maintained stable levels of cash for years, but that alone isn't enough to justify jumping in on a weak day.
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The article Why TriQuint Semiconductor Shares Tripped 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. 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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