This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Mindspeed, Ruby Tuesday: After-Hours Trading

NEW YORK ( TheStreet) -- Shares of Mindspeed Technologies (MSPD) tumbled in Wednesday's extended session after the Newport Beach, Calif.-based communications chip maker gave a disappointing revenue forecast because of weak demand from wireless customers.

The company said it expects revenue of $40.5 million for the three months ended Dec. 31, slightly below its Nov. 1 outlook of $41.2 million, and short of the average estimate of analysts polled by Thomson Reuters for revenue of $43.3 million.



The stock was last quoted at $5.96, down 8.3%, on volume of around 200,000, according to Nasdaq.com. The shares rose more than 15% in 2010, bouncing off a 52-week low of $3.56 to finish the year at $6.10.

"We experienced a weaker demand environment in the fiscal first quarter of 2011, primarily related to our legacy wide area networking business, specifically from a few, large wireless communications customers," said Raouf Halim, the company's CEO, in a statement.

Halim added, however, that he believes the demand environment has now stabilized and that "customers appear to be making good progress absorbing systems inventory built up during the supply constrained environment of the last few quarters."

Wall Street's consensus estimate is for earnings of 13 cents a share from Mindspeed in the November quarter, and the company said it expects its non-GAAP gross margins and operating expenses to be consistent with its prior outlook.

Five of the seven analysts covering Mindspeed's stock have either strong buy (4) or buy (1) ratings, and the median 12-month price target sits at $10, implying upside of more than 60% from current levels.

Ruby Tuesday

Ruby Tuesday (RT - Get Report) was on the rise after Wednesday's closing bell, gaining 2.6% to $14.37 on volume of around 150,000, after the company reported a strong quarterly profit.

The Maryville, Tenn.-based casual restaurant operator said it earned $4.6 million, or 7 cents a share, in the three months ended Nov. 30, up from a year-ago equivalent profit of $400,000, or a penny per share, and well ahead of the average estimate of analysts polled by Thomson Reuters for earnings of a nickel per share.

It was the ninth straight quarter that Ruby Tuesday topped Wall Street's expectations for its quarterly results. The stock closed the regular session at $14.01, up 9 cents, on volume of around 785,000, ahead of the issue's trailing three-month daily average of 530,000, and the shares are coming off a stellar 2010 when they appreciated more than 80%.

Going into the report, five of the eight analysts covering Ruby Tuesday were at either strong buy (2) or buy (3), but the stock was bumping against Wall Street's median 12-month price target of $14.63.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
MSPD $0.00 0.00%
ARMH $50.69 0.00%
RT $7.21 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs