Why International Rectifier Plunged
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What: Shares of International Rectifier (NYS: IRF) have plunged today by as much as 14% after the company reported third-quarter earnings.
So what: Revenue fell 16.4% to $248.1 million, which resulted in a net loss of $2.5 million, or $0.04 per share. Gross margin also took a big hit, dropping nearly 10% from 39.5% a year ago to 29.8% this quarter.
Now what: CEO Oleg Khaykin said there was strength in automotive, consumer, and computing end markets, but unfortunately it was offset by continued weakness in industrial and appliance demand in China. The company expects next quarter to see revenue in the range of $255 million-$270 million. Meanwhile, analysts are expecting revenue to be about $261.7 million in the June quarter.
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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.