Supertex Shares Fall After 2Q Profit Miss
NEW YORK (AP) ¿ Supertex Inc. shares fell Wednesday after the chip maker's fiscal second quarter profit missed Wall Street forecasts as its profit margin shrank.
The stock tumbled $3.11, or 10.7 percent, to $25.91 in afternoon trading.
Late Tuesday, Supertex reported net earnings of $1.1 million, or 8 cents per share, compared with $4.5 million, or 35 cents per share, in the same quarter a year ago.
Sales dropped 32 percent to $15.9 million.Analysts polled by Thomson Reuters expected 10 cents per share on sales of $14.8 million. Supertex said its second-quarter gross margin was 47 percent, six percentage points lower than in the first quarter. It attributed the drop to "the non-linear loading of our wafer fab and backend operations." CEO Henry Pao said he expects the gross margin in the company's third quarter to be similar to the second quarter number, noting that Supertex is planning a normal wafer fabrication facility shutdown for maintenance. In a note to investors, Morgan Keegan analyst Harsh Kumar attributed Supertex's earnings miss primarily to the lower gross margin and said the margin is being hurt because its factories are operating below capacity. He reiterated a "market perform" rating on the stock.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV