Microsemi plunges and recovers on weaker-than-expected guidance

Microsemi (MSCC -4.5%) shares are recovering after plunging as much as 16.3% at the open on the company's in-line FQ4 but weaker-than-expected FQ1 guidance.

On the conference call, CFO John Hohener forecast a 3%-5% sequential revenue decline in FQ1, implying revenue of $238.5M-$243.1M (well below consensus expectations of $258.2M). The guidance, however, excludes effects from the $230M Symmetricom acquisition in Oct.

Gross margin is seen falling to 55.8%-56.6% in FQ1 from 57% in FQ4.

When asked whether Microsemi is still targeting organic growth rates in the mid- to high-single digit range on a long-term basis, CEO James Peterson responded, "Absolutely, my friend."

From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs