NEW YORK (TheStreet) -- Tech parts makers InvenSense Inc (INVN) and Cirrus Logic (CRUS) have tumbled in morning trading after reporting earnings the evening before. Semiconductor company Micron Technology (MU) was immune to the big losses seen by its competitors.
Though second-quarter earnings beat expectations, a sluggish forecast for the third quarter disappointed the company's investors. Shares dropped 12.1% to $16.36 in morning trading.
InvenSense management said they expect earnings between 16 cents and 18 cents a share for the third quarter, on revenue in the range of $65 million to $68 million. Analysts surveyed by Thomson Reuters had anticipated 22 cents a share on $76.63 million in revenue.
For the second quarter, the San Jose, Calif.-based company reported earnings of 21 cents a share on 28.2% higher year-over-year revenue of $70.9 million.
Topeka Capital Markets restated its "buy" rating and raised its price target to $22 from $20, citing a "continued healthy position in the smartphone/tablet space boosted by seasonal gaming strength".The investment firm believes continued growth in demand for motion sensor and image stabilization technologies will benefit the business over the long term.
TheStreet Ratings team rates InvenSense INC as a Hold with a ratings score of C. The team has this to say about their recommendation:
"We rate InvenSense INC (INVN) 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 robust revenue growth, notable return on equity and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation."
- You can view the full analysis from the report here: INVN Ratings Report