Two big reasons behind the rush on semiconductor companies:
1) Standard Microsystems Corp. (NASDAQ:SMSC) stock is up huge today (+ 9.7%) on increased confidence emerging from yesterday’s 1Q earnings release. The company reported earnings of $.47 per share, nearly doubling analyst estimates in the high 20s, on total quarterly revenue of $103 million. SMSC CEO Christine King also talked projections for the company’s Q2, saying, “we anticipate revenue to increase by approximately 8 to 10 percent sequentially, including about $8 million from the BridgeCo acquisition. We do not expect any further material impact as a result of the Japanese crisis and expect further growth in our automotive and consumer revenue.”
2) Taiwan Semiconductor Manufacturing (NYSE:TSM) sets an ex-dividend date of tomorrow, leading to a run on shares sending the company’s stock up 2% today. According to thestreet.com, “Owners of shares as of market close today will be eligible for a dividend of 42 cents per share. At a price of $12.66 as of 9:33 a.m. ET, the dividend yield is 6.4%. The company has a P/E ratio of 11.1, below the average electronics industry P/E ratio of 22.1 and below the S&P 500 P/E ratio of 17.7.” The Street rates TSM stock as a “buy,” citing strengths in multiple areas, “robust revenue growth, good cash flow from operations, solid stock price performance” etc.
Other semiconductor stocks performing well today: Intel (NASDAQ:INTC) up .69%, Oracle (NASDAQ:ORCL) up 2.29%, Texas Instruments (NYSE:TXN) up .76%, Fairchild Semiconductor (NYSE:FCS) up 2.34%, and Analog Devices (NYSE:ADI) up 1.14%.
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