Exar Q2 Earnings: Organic Revenue Keeps Falling, EPS Negative - Acquisition Saved The Day
Martin Vlcek • Sat, Aug. 9
- Organic revenue has been falling for three quarters now. Total revenue growth was saved by the acquisition of Integrated Memory Logic. EPS was negative again.
- I reiterate my long thesis, but I am lowering my target price to $10, offering a ~8% upside. The downside should be fully protected at 10% below the current price.
- The long thesis has worked well for a year, with EXAR trading in line with the small-cap category which showed weakness. Last month, EXAR started underperforming.