Earnings Preview: Intersil

Jul.23.08 | About: Intersil Corporation (ISIL)

Intersil (NASDAQ:ISIL) is expected to report Q2 earnings Wednesday July 23 after market close, with a conference call scheduled for 4:45 pm ET.

Guidance

The consensus estimate is 38c for EPS and $216.98M for revenue, according to First Call. On their last earnings call management provided Q2 EPS guidance of 38c to 39c.

Analyst Views

Wedbush thinks Intersil will report Q2 results towards the high end of guidance and provide conservative but above consensus Q3 revenue guidance. Significant traction on the Montevina notebook cycle is expected to benefit Intersil partially in Q2 and fully in Q3 and beyond, says Wedbush. Furthermore, Wedbush thinks Intersil's traction in recent and upcoming handsets (Apple's iPhone and Samsung) also adds incremental growth through 2H08. Wedbush believes the shares are attractive.

On July 14, RBC Capital upgraded Intersil to an Outperform, triggered by Intel's (NASDAQ:INTC) Montevina launch and based on their 2H08 outlook for Intersil. RBC's proprietary checks revealed that the notebook segment remains strong, despite chatter to the contrary; the LCD segment remains strong, despite TV end market weakness; and incremental Handset revenue from PMIC and Ambient light sensor, as the technical snags with PMIC are finally solved; and the Industrial segment was helped by strong defense orders.