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 Atmel have tanked today by as much as 15% after the company reported earnings.
So what: Revenue in the quarter came in at $345.1 million, with non-GAAP earnings per share of $0.07. Revenue was a beat but adjusted earnings were right on target with forecasts. The company's microcontroller business continues to grow but the overall business is suffering from a slow semiconductor market.
Now what: Atmel said it expects revenue in the current quarter to be in the range of $311 million to $328 million, while investors were expecting sales of $332.8 million. Canaccord Genuity is defending shares, saying the plunge is a buying opportunity as Atmel's addressable market expands with the ramp up of Microsoft Windows 8, where Atmel is the leading provider of touchscreen controllers. The analyst believes we're seeing a cyclical bottom and the business should begin recovering in the second quarter.
Interested in more info on Atmel? Add it to your watchlist by clicking here.
A fresh idea for 2013
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.
The article Why Atmel Shares Tanked originally appeared on Fool.com.
Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.