TriQuint Semiconductor Shares Plunged: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: TriQuint Semiconductor (NAS: TQNT) dropped 26% in intraday trading today, after reporting inline earnings but issuing wildly disappointing guidance.
So what: Second quarter EPS of $0.17 was inline with the consensus estimate but fell 15% year over year. Revenue of $229 million missed the consensus forecast of $236 million.
Now what: Management guided third quarter EPS to $0.16-$0.18 and revenue to $225 million-$235 million. Both are well below consensus expectations of $0.25 and $267 million, respectively. The company blamed the weak guidance on both macroeconomic weakness and its decision to turn its focus from 2G chips to 3G and 4G chips. It expects a refocus on 2G chips to boost growth in the fourth quarter, but the macroeconomy and customer demand are out of its control.
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At the time this article was published Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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