Fusion-IO has lost a quarter of its share value after issuing lower-than-expected second-quarter guidance. Shares have dropped 26% to $9.80 early Thursday afternoon.
The flash storage company reported a first-quarter loss of of $27.9 million, or 7 cents a share, on revenue of $86.3 million. Analysts surveyed by Thomson Reuters anticipated a loss of 11 cents a share on $84.7 in revenue. In the year-ago quarter, the company posted earnings of $3.9 million on revenue of $118.1 million. Though the first quarter beat expectations, projected second-quarter revenue was disappointing as the company said it would see only a slight quarter-on-quarter increase.The Salt Lake City-based company also announced Chief Financial Officer Dennis Wolf's exit to pursue another opportunity and sales chief James Dawson's retirement. Lazard Capital Markets reiterated its "buy" rating on Fusion-IO, though downgraded its price target to $14 from $17. "There's a strong technology story here that continued to be levered to rapidly growing end markets but is being dragged down by lumpiness," Lazard wrote in a research report. UBS also kept its "buy" rating, while lowering its price target to $15 from $18. TheStreet Ratings team rates Fusion-IO Inc as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about its recommendation: "We rate Fusion-IO Inc (FIO) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
- You can view the full analysis from the report here: FIO Ratings Report
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D.A. Davidson & Co analyst Thomas Diffely reiterated his "buy" rating and $10 price target, stating the company is a "multi-year growth story." "In the near-term TQNT should continue to benefit from its increased presence in the updated iPhone 5S and 5C, offset somewhat by diminished business with Blackberry," he wrote in his research report. "Longer-term, its strong positioning in the advanced filter market should drive significant growth (potentially 15%-20% per year for several years)." TheStreet Ratings team rates TriQuint Semiconductor Inc as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about its recommendation: "We rate TriQuint Semiconductor Inc (TQNT) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."
- You can view the full analysis from the report here: TQNT Ratings Report
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