What’s Moving These Hot Stocks: OpenTable, Chesapeake, Silicon Image, Cavium Networks
OpenTable, Inc.’s (NASDAQ:OPEN) price targets slip post-earnings, due to the firm’s weak revenue guidance, international sales, and restaurants additions. Bank of America opines that spending on improvements is insufficient, but that a near term re-intro of OpenTable in the United Kingdom could help. Benchmark retains its Buy and comments that management has mostly been conservative with its outlook.
Chesapeake Energy Corporation (NYSE:CHK) CEO Aubrey McClendon is being accused of running a $200 million hedge fund that traded in the same commodities that the company produces, according to a Reuters report that uses its own inquiry. It’s further claimed that the CEO engaged in “near daily” communications to help direct the fund’s trading, says a veteran trader who helped run the private hedge fund from at least four years from 2004 to 2008.
Silicon Image, Inc. (NASDAQ:SIMG) plummets despite unobjectionable second quarter guidance of $60 million to $62 million, vs. consensus of $60.1 million, and an in-line first quarter statement. A decline in margins against an expected revenue increase could be the problem, however Needham retains its Buy. The analyst is buoyed by SIMG’s mobile chip business post, which now comprises 52 percent of sales.
Cavium Networks, Inc. (NASDAQ:CAVM) shares are down around 6.7 percent after its first quarter report. Earnings per share slightly beat consensus, but the network processor supplier has put out several warnings lately. Second quarter guidance for revenue of between $54 million and $56 million misses estimates of $56.6 million; and earnings per share of 1 cent to 3 cents misses by 3 cents. However, Needham remains confident with a Buy, citing new products and a rebounding second half demand.
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