Xyratex’s (XRTX -10.2%) Q1 earnings surged on improved margins and lower input costs, but shares...

|About: Xyratex Ltd. (XRTX)|By:, SA News Editor

Xyratex’s (XRTX -10.2%) Q1 earnings surged on improved margins and lower input costs, but shares are sliding due to weaker revenue on supply problems and downward Q2 guidance. While still liking XTRX long-term, Needham downgrades shares to Hold from Buy on valuation, slightly reduced FY 2013 results, and absence of any apparent catalyst to move estimates.