TriQuint Semiconductor Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: TriQuint Semiconductor (Nasdaq: TQNT  ) dropped 26% in intraday trading today, after reporting in-line earnings but issuing wildly disappointing guidance.

So what: Second-quarter EPS of $0.17 was inline with the consensus estimate but fell 15% year over year. Revenue of $229 million missed the consensus forecast of $236 million.

Now what: Management guided third quarter EPS to $0.16-$0.18 and revenue to $225 million-$235 million. Both are well below consensus expectations of $0.25 and $267 million, respectively. The company blamed the weak guidance on both macroeconomic weakness and its decision to turn its focus from 2G chips to 3G and 4G chips. It expects a refocus on 2G chips to boost growth in the fourth quarter, but the macroeconomy and customer demand are out of its control.

Interested in more info on TQNT? Add it to your watchlist by clicking here.

Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (4) | Recommend This Article (3)

Comments from our Foolish Readers

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  • Report this Comment On July 28, 2011, at 3:43 PM, jwtrotter wrote:

    Uh, this summary is 'wildly' inaccurate. They aren't really refocussing on 2G as much as adjusting to the demand for the newer designs and products. Capacity is the issue for the future.

    This article is not only inaccurate but possibly another reason some shareholders will lose more money if they take it seriously and not read the transcript or listen to the CC online.

  • Report this Comment On July 28, 2011, at 3:54 PM, youngblood58 wrote:

    Good comment, JW. This "article" threw me off too because I did listen in on the conf call.

    As always, do your own research.

  • Report this Comment On July 29, 2011, at 1:36 PM, kaptnken wrote:

    So, I just bought 200 shares and then I see this article. It is short and doesn't really cover what is really happening. Should I be scared, because of this short article, or buy a crapload more??? I'm new at this, to tell you the truth. I do know someone at TriQuent in Hillsboro, OR. "They" say TriQuent is growing, building and remodeling, improving their "new" location in Texas and way way more. The word there is, GROWTH! I think their shares are "On Sale" right now but I'm not rich enough to capitalize on it....Like they say, the rich get richer blah blah blah...

  • Report this Comment On July 31, 2011, at 7:57 PM, lowmaple wrote:

    The article doesn't say sell Just gives reasons for share plunge. Sounds like buying oppertunity

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