Genesis Microchip Plunges on Estimate Cut, Downgrade - TheStreet

Integrated circuit and software provider

Genesis Microchip

(GNSS)

was dropping about 18% in premarket trading after a brokerage house cut the company's earnings estimates.

Prudential cut its June-quarter estimate for Genesis, saying it now sees the company earnings 21 cents on revenue of $55 million, down from previous estimates of 24 cents on revenue of $60 million. According to Thomson Financial/First Call, the consensus estimate for Genesis's first quarter calls for EPS of 25 cents on revenue of $60.5 million.

Prudential said yesterday's DisplaySearch data revealed an unusually aggressive pricing environment. For the full year, the firm now expects Genesis to earn $1.02 a share, down from prior estimates of $1.20 and below the First Call estimate of $1.21.

Separately, CE Unterberg on Thursday cut its rating on Genesis to market perform from buy.

Genesis was recently trading down $4.15 to $19.21 after closing at $23.36 Wednesday.