In its fourth quarter earnings report, the chipmaker reported earnings of 19 cents a share. Analysts surveyed by Thomson Reuters expected earnings of 18 cents a share. Revenue for the quarter came in at $1.08 billion, beating the consensus estimate of $1.05 billion for the quarter.
Freescale Semiconductor expects revenue of $1.07 billion to $1.11 billion for the first quarter of 2014. Analysts predict revenue of $1.03 billion in the quarter.
On the heels of the earnings report Needham upgraded the chipmaker to "strong buy" from "buy," with a price target of $25, up from $20. Analyst Rajvindra S. Gill cited revenue growth, margin expansion, and deleveraging in his note explaining the upgrade."FSL printed a solid beat and raise qrt, with 1Q14 sales guidance handily beating expectations," the analyst wrote. "FSL continues to see strength across its entire product portfolio, with particular growth coming from infrastructure spending in China, 32-bit MCUs and increased dollar content in automotive. FSL removed over $75MM in annual interest expense from the model, significantly de-risking it. We think the combination of accelerating revenue growth and gross margin expansion coupled with deleveraging is a powerful combination for significant earnings leverage over the next 1-2 years." FSL data by YCharts
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 Plus 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