NEW YORK ( TheStreet) -- Shares of Intersil (ISIL - Get Report) gained ground in late trades on Monday despite news that the Milpitas, Calif.-based chip maker has lowered its revenue outlook for the third quarter, citing weak demand across all of its end markets.
The company now sees revenue of $184 million to $188 million for the three months ending in September vs. a previous projection of $205 million to $213 million. The current average estimate of analysts polled by Thomson Reuters is for revenue of $209 million.
"We believe this is the result of broad-based economic weakness, along with some excess inventory consumption," said Dave Bell, the company's president and CEO, in a statement. "However, we now see signs that inventory is stabilizing, with bookings likely recovering to consumption rates during the remainder of the third quarter."
The stock was last quoted at $11.25, up 5.6%, on volume of nearly 260,000, according to Nasdaq.com. Based on Monday's regular session close at $10.66, the shares were down nearly 32% so far in 2011.The current consensus estimate is for a profit of 16 cents a share in the third quarter for Intersil, which has topped Wall Street's expectations in the past four quarters. Wall Street was bearish ahead of the news with 16 of the 21 analysts covering the stock at either hold (15) or sell (1), although the median 12-month price target of $14 implied upside of more than 25% from recent levels. The company plans to release its results after the closing bell on Oct. 26.