On Oct 24, Zacks Investment Research upgraded
) to a Zacks #1 (Strong Buy).
Why the Upgrade?
Supertex has been witnessing rising earnings estimates on the
back of strong fiscal second-quarter 2014 results. This
well-known semiconductor manufacturer delivered positive earnings
surprise in all the last 4 quarters with stellar average earnings
beat of 245.7%.
Supertex reported fiscal second-quarter 2014 (ended Sep 30)
results on Oct 22. Earnings per share came in at 24 cents,
surpassing the Zacks Consensus Estimate by 41.18% and the
year-ago figure by 33.3%.
Earnings were primarily aided by top-line growth of 11.5% year
over year and strong margins. Supertex reported robust sales in
all four of its growth markets -Medical Ultrasound, LED Lighting
and Backlighting, Printer/EL, and Industrial. Moreover, the
company's gross margins improved 340 basis points sequentially to
57% during the reported quarter.
Notably, some of its recently launched products received
positive response from the market and are likely to boost sales
in the upcoming quarters.
The Zacks Consensus Estimate for fiscal 2014 increased to 78
cents from 73 cents per share as one of the estimates was revised
higher over the last one week. Additionally, for 2015, analysts
raised the estimates over the same time frame, thereby lifting
the Zacks Consensus Estimate to 78 cents per share from 76
Other Stocks to Consider
The following business service firms are performing well and
also have favorable Zacks Rank.
Monolithic Power Systems Inc.
), which has a Zacks #1 Rank (Strong Buy)
NXP Semiconductors NV
), which holds a Zacks #1Rank (Strong
Semiconductor Manufacturing International Corp.
MONOLITHIC PWR (MPWR): Free Stock Analysis
NXP SEMICONDUCT (NXPI): Free Stock Analysis
SEMICON MFG-ADR (SMI): Free Stock Analysis
SUPERTEX INC (SUPX): Free Stock Analysis
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) having a Zacks #1 Rank (Strong Buy)