Intersil's upside surprise leads to stock downside (ISIL)

Posted in General 
June 23rd, 2009

Analog chipmaker Intersil’s (ISIL) shares are trading about 3% lower on strong early volume as of 10:45 a.m. Eastern, even after the company raised second-quarter revenue guidance.

It’s what the company didn’t say that appears to be hitting the stock. The worry among some market participants is that the upside in revenue is driven by low-margin consumer products. The company did not provide gross margin, operating margin or updated earnings guidance when it updated its top-line numbers.

Also, there has been a string of positive guidance from other chipmakers including Marvell Technology Group, Ltd. (MRVL) just yesterday, and Texas Instruments (TXN) late last week, limiting the potential impact even if the guidance was perceived as strongly positive. — Mike Tarsala

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