National Semiconductor shares up after reporting profit in 4th-qtr and a revenue jump
By APFriday, June 11, 2010
National Semiconductor shares up after 4Q profit
NEW YORK — Shares of National Semiconductor Corp. rose Friday after the company reported a profit for its fiscal fourth quarter, reversing a year-earlier loss.
THE SPARK: The chip maker on Thursday reported its net income was $79.2 million, compared with a year-earlier loss of $63.7 million. Revenue jumped nearly 42 percent to $398.5 million.
THE BIG PICTURE: Chip sales have been rebounding from the depths of the recession, which forced companies that buy semiconductors to cut their inventories as demand for electronics and other products sank.
THE ANALYSIS: Caris & Co. analyst Craig Ellis called the results “robust” in a note to clients Friday and said shareholders should hang on to the stock, which he rates “Above Average.”
He noted that shares have disappointed in the second quarter, falling as much as 9 percent, but said that if broader economic “concerns ease, investors could be rewarded with a nice upside.”
SHARE ACTION: The company’s shares were up 53 cents, or 3.9 percent, to $14.06 in afternoon trading.
