On Jun 29, Zacks Investment Research upgraded
Pericom Semiconductor Corp.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
This semiconductor company delivered positive earnings surprises
in three of the last 4 quarters with an average beat of 91.67%.
Pericom's total revenue of $30.4 million in the third quarter
fiscal 2013 surpassed the Zacks Consensus Estimate by 4.3%.
The strategic initiatives undertaken by management has allowed
the company to expand its gross margin. The present focus on
infrastructure like networking and telecom, server, storage and
embedded application has allowed Pericom to register gross margin
in excess of 37% in the last four reporting quarters. This
strategy is expected to increase the gross margin to 40% in the
In the highly competitive semiconductor sector, product
innovation is essential to stay ahead of the competition. Pericom
has been investing in research & development activities on a
continuous basis. These investments have yielded positive results
with the company launching 17 new products during the third
quarter fiscal 2013.
Pericom with its strong cash balance repurchased shares worth
$4.3 million in the third quarter of fiscal 2013. On Apr 26,
2012, the board of directors had authorized a repurchase program
of up to $25 million of shares. The company still has $19.6
million under that authorization. Pericom can exercise its right
to repurchase more shares thereby boosting shareholder value.
The Zacks Consensus Estimate for 2013 increased 83.3% in the last
60 days to $2.65 per share as all estimates were revised higher.
The long-term earnings growth of the company is presently pegged
Other Stocks to Consider
Besides Pericom Semiconductor other operators in the industry
with a favorable Zacks Rank are Integrated
Device Technology, Inc.
ChipMOS TECHNOLOGIES (Bermuda) LTD.
) All these companies presently carry a Zacks Rank #1 (Strong
INTEGR DEVICE (IDTI): Free Stock Analysis
CHIPMOS TEC LTD (IMOS): Free Stock Analysis
PERICOM SEMICON (PSEM): Free Stock Analysis
RAMBUS INC (RMBS): Free Stock Analysis Report
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