Why Cypress Semiconductor Popped
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 Cypress Semiconductor (NYS: CY) popped today by as much as 22% before giving up half of those gains after the company reported first-quarter earnings.
So what: Revenue fell 21% to $185.1 million, with adjusted earnings per share of $0.12. That top line was in line with what analysts were expecting, while the bottom line came out a couple of cents ahead of the consensus estimate.
Now what: Investors were really cheering about the guidance, though, with second-quarter sales expected to be between $200 million and $207 million, with earnings of $0.17 to $0.20 per share. Those figures look awfully nice compared with the $204 million and $0.16-per-share expectations. On top of that, the company boosted its dividend to $0.11 per share and repurchased 6.1 million shares during the quarter.
Interested in more info on Cypress Semiconductor? Add it to yourWatchlist.
At the time this article was published Fool contributorEvan Niuowns shares of Cypress Semiconductor, but he holds no other position in any company mentioned. Check out hisholdings and a short bioMotley Fool newsletter serviceshave recommended buying shares of Cypress Semiconductor. The Motley Fool has adisclosure policy. We Fools don't 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.