Why Freescale Semiconductor Tanked
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: Shares of Freescale Semiconductor (NYS: FSL) have tanked today by upward of 14% after the company reported earnings and that the CEO is retiring.
So what: Revenue in the first quarter added up to $950 million, which resulted in an adjusted net loss of $0.04 per share. Those results were mixed compared to consensus estimates, with the market expecting $961 million in sales, although the bottom line was a penny better than the $0.05 loss that was predicted.
Now what: CEO Rich Beyer said there were some challenges in the company's end markets, but the company was still able to maintain gross margins and improve its capital structure. Freescale also announced that Beyer is planning to retire and that the board has begun looking for a replacement. Beyer will remain at the helm until a new CEO is found.
Interested in more info on Freescale Semiconductor? Add it to your watchlist byclicking here.
At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.