Why International Rectifier Shares Got Clobbered
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What: Shares of International Rectifier (NYS: IRF) got clobbered today, down by as much as 12%, after the company reported dismal earnings.
So what: Fourth quarter revenue was $269.7 million, up 8% from last year. The company posted an adjusted loss per share of $0.18, worse than the market's expectations of a $0.15 per share loss. The company incurred a slew of accounting charges, including goodwill impairments and inventory write-offs, to the tune of $0.81 per share. That brought its GAAP net loss to $0.99 per share.
Now what: CEO Oleg Khaykin conceded the challenging environment, but is hopeful for the company's operational transformation. The company closed its El Segundo facility, and is resizing its Newport, Wales fabrication facility, which will continue through 2015. These are all part of broader attempts at cost reductions. Next quarter's outlook calls for sales between $235 million and $250 million, falling short of the $274.2 million consensus estimate.
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