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: International Rectifier (NYSE: IRF ) dropped 24% in intraday trading today after issuing a disappointing earnings report and outlook.
So what: Non-GAAP EPS of $0.37 dropped 10% year over year, and fell well short of the $0.51 consensus estimate. GAAP EPS of $0.55 reflected an atypical tax benefit, and dropped from $0.69 in the year-earlier quarter. Revenue of $317 million grew 20% year over year.
Now what: For the current quarter, management said it expects revenue of $290 million to $310 million, below the consensus forecast of $320 million, and growth of only 3% to 10% year over year. The CEO stated that, "While the current environment may be uncertain, we believe we are in the right markets with the right technologies and are confident in our long-term growth potential." In other words, results may stink in coming quarters, but eventually the company should grow again.
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