Earnings Preview: LSI Corporation Reports Results Wednesday

| About: LSI Corp. (LSI-OLD)

LSI Corporation (NASDAQ:LSI-OLD) is scheduled to release last fiscal quarter's results after the closing bell on January 25, 2012.

LSI Corporation designs, develops, and markets storage and networking semiconductors and storage systems worldwide. The company was founded in 1980 and is based in Milpitas, California. LSI trades an average of 8.2 million shares per day.

52 Week High: $7.74
52 Week Low: $4.75
Book Value: $2.26
Float Short: 2.18%

On average, analysts are expecting a drop of $-0.06 in earnings per share compared to last quarter's results of $0.14. A beat of $0.08 per share, will top the estimated per share earnings.Analyst estimates range between $0.07 and $0.10 per share.

The current trailing twelve months P/E ratio is 18.1. The forward P/E ratio is 16.05. The chart for LSI looks really good, but I am not sure I want to pay up or not for this one. It may be worth it though as the break above the 200 day moving average was made with a very strong gap higher about two weeks ago. With the flooding issues in Asia knocking a large amount of supply out of the chain, I would expect the margins to be somewhat better, but the purchase of SandForce should help mitigate revenue tightening.

For the same fiscal period year-over-year, revenue has improved to $2.57 billion for 2010 vs. $2.22 billion for 2009. The bottom line has rising earnings year-over-year of $39.97 million for 2010 vs. $-47.72 million for 2009.The company's earnings before interest and taxes are rising with an EBIT year-over-year of $37.15 million for 2010 vs. $-129.17 million for 2009.Rising revenue along with rising earnings is a very good sign and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line.

Here is a look at the fiscal year revenue.
paid2trade.com revenue gross bar chart for LSI

Gross reported revenue compared to the mean estimate (rounded).

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Sep-11 $ 546.69 M $ 546.91 M $ 0.22 M 0.04%
Jun-11 $ 482.80 M $ 500.64 M $ 17.84 M 3.7%
Mar-11 $ 622.85 M $ 473.26 M $ -149.59 M -24.02%
Dec-10 $ 649.36 M $ 664.48 M $ 15.12 M 2.33%
Sep-10 $ 639.49 M $ 628.98 M $ -10.51 M -1.64%

M = millions, B = billions

Differences are rounded. (Some onetime items are often excluded in reported EPS)
paid2trade.com Quarterly Estimates And Actual EPS results LSI
Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for LSI
paid2trade.com short interest tool. The total short interest number of shares for LSI

The number of days to cover short interest based on average daily trading volume for LSI.
paid2trade.com number of days to cover short interest based on average daily trading volume for LSI

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I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the "confirmed" symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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Tagged: , Semiconductor - Specialized, Earnings
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