Earnings estimates tumbled down for
) in the last seven days after the company reported results for the
ANADIGICS reported in-line results for the fourth quarter but
the outlook provided by the company was disappointing.
Consequently, all the analysts covering the stock decreased
their estimates leading to a sharp fall in estimates for 2012.
The current Zacks Consensus Estimate for 2012 is a loss of
$0.78, down by $0.10 in the last seven days and by $0.18 in the
last thirty days.
ANADIGICS expects seasonality to impact results in the first
quarter. Revenue is projected to decline as products sold to former
top customers will reach end of life. ANADIGICS
continues to face challenges in an uncertain economic environment
and there is no respite from weakening demand in the near-term.
ANADIGICS reported a loss of $0.23 in the fourth quarter
compared to a net income of $0.05 per share in the year-ago quarter
due to a decline in gross margin on the less favorable revenue
Excluding one-time charges but including stock-based
compensation expense, net loss came in at $0.16 per share, in line
with the Zacks Consensus Estimate. Revenues of $36.5 million in the
fourth quarter were down 2% sequentially.
On a positive note, ANADIGICS continues to see strong interest
from OEMs, leveraging worldwide 3G and 4G deployments for
applications beyond the traditional smartphone and tablet.
However, we do not expect the company to return to profitability
in 2013 as well. Hence, we maintain a Neutral recommendation on the
stock. In the short-run, we have a Zacks #4 Rank on the stock which
translates into a Sell rating due to near-term pressure arising
from the weak guidance provided by the management.
ANADIGICS CORP (
): Free Stock Analysis Report
To read this article on Zacks.com click here.