Investors in semiconductor stocks have been waiting for almost two years
for signs of sustained (or sustainable) improvements in the industry.
Companies as varied as ON Semiconductor (Nasdaq:ONNN), Analog Devices (NYSE:ADI), and International Rectifier (NYSE:IRF)
have been showing some signs of progress, though it seems like every
quarter's guidance is fraught with uncertainty. While International
Rectifier reported a quarter with strong sequential revenue growth and
better margins, additional margin and cash flow generation improvement
is necessary if this stock is going to continue its recovery.
Read more here:
http://www.investopedia.com/stock-analysis/082013/international-rectifier-recovering-margins-need-pick-irf-ifnny-onnn-stm.aspx
Showing posts with label International Rectifier. Show all posts
Showing posts with label International Rectifier. Show all posts
Tuesday, August 20, 2013
Wednesday, January 4, 2012
Investopedia: ON Semiconductor Looking At Another Off Year
Short of locusts, just about everything that could have gone wrong for ON Semiconductor (Nasdaq:ONNN) did, in 2011. Not only did the company have to deal with a pair of natural disasters, but the company saw a widespread erosion in the chip market throughout the year. While the chip industry looks to have likely bottomed in the fourth quarter of 2011, ON Semiconductor is going to have a longer road back than most and investors need to understand that today's value-pricing comes at a cost.
Click this link for more:
http://stocks.investopedia.
Twin Disasters Delay Sanyo Benefits
When ON Semiconductor bought the Sanyo chip business, it was a bold and somewhat risky move to expand the business and vault the company in the top echelon of analog chip companies. Although the promise and potential of the deal is intact, the timing has been blasted by events completely beyond management's control.
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http://stocks.investopedia.
Thursday, January 20, 2011
Investopedia: Linear's Ups And Downs
For long-term shareholders, Linear Technology (Nasdaq:LLTC) is anything but linear. Although this company has a phenomenal record of producing top-notch margins, returns on capital and free cash flow, the reality is that the analog semiconductor business is cyclical and even a top operator cannot do anything about that. With disappointing (albeit not completely surprising) fiscal third quarter guidance, semiconductor investors are left wondering what 2011 will hold for the sector.
The Quarter That Was
While it will likely be overshadowed by the guidance, Linear's reported second quarter results were actually quite good. Revenue fell 1% sequentially (and rose 50% annually) and beat the average estimate on the Street. Strong Apple (Nasdaq:AAPL) iPad sales no doubt helped, but the ongoing recovery in the industrial and automotive markets were more significant.
The company also did a solid job (as it almost always does) on profitability. Gross margin was flat sequentially at 78.5%, but up about 250 basis points from the year-ago level. Operating income did drop 2% sequentially (and jump 74% annually), but this was better than expected. At the bottom line, the company beat estimates, even after excluding a boost from lower taxes. (For more, see The Bottom Line On Margins.)
The Rocky Road Ahead
Although Linear's second quarter was solid, its is likely that guidance for the third quarter will dominate the story. While the Street had been expecting a 1-2% sequential decline, the company announced that revenue would fall 6-10% instead. There appear to be two primary causes for this negative outlook.
Please follow this link to the full article:
http://stocks.investopedia.
The Quarter That Was
While it will likely be overshadowed by the guidance, Linear's reported second quarter results were actually quite good. Revenue fell 1% sequentially (and rose 50% annually) and beat the average estimate on the Street. Strong Apple (Nasdaq:AAPL) iPad sales no doubt helped, but the ongoing recovery in the industrial and automotive markets were more significant.
The company also did a solid job (as it almost always does) on profitability. Gross margin was flat sequentially at 78.5%, but up about 250 basis points from the year-ago level. Operating income did drop 2% sequentially (and jump 74% annually), but this was better than expected. At the bottom line, the company beat estimates, even after excluding a boost from lower taxes. (For more, see The Bottom Line On Margins.)
The Rocky Road Ahead
Although Linear's second quarter was solid, its is likely that guidance for the third quarter will dominate the story. While the Street had been expecting a 1-2% sequential decline, the company announced that revenue would fall 6-10% instead. There appear to be two primary causes for this negative outlook.
Please follow this link to the full article:
http://stocks.investopedia.
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