NEW YORK (TheStreet) -- Silicom (SILC) plunged to a 52-week low of $29.25 on Tuesday after the networking solutions company reported second-quarter earnings that came up well short of analysts' expectations.
Silicom reported earnings per share of 50 cents, which was 7 cents short of the Capital IQ consensus estimate of 57 cents a share. Revenue rose 14% year over year to $17.9 million but still missed the consensus estimate of $19.29 million. The company said "softer demand" in the second quarter led to a 6% sequential revenue decline.
The stock was down 23.02% to $30.04 at 12:15 p.m. More than 1.1 million shares had changed hands, which eclipsed the average volume of 63,556.
Separately, TheStreet Ratings team rates SILICOM LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate SILICOM LTD (SILC) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."