Why Freescale Shares Skyrocketed

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: Shares of Freescale (NYSE: FSL  ) have skyrocketed today by upwards of 12% after the semiconductor specialist posted first-quarter earnings results.

So what: Revenue in the first quarter came in at $981 million, easily besting the $966.1 million that the Street forecast. By the time investors got to the bottom line, the $0.03 per-share adjusted loss looked a lot better than the $0.09 per-share adjusted loss that they were braced for. CEO Gregg Lowe said the company's efforts to improve its capital structure are paying off.

Now what: Freescale continues to pursue new market opportunities, while reallocating research and development investments, which is helping boost profitability. The company also provided guidance for the coming quarter, with sales expected to be in the range of $1 billion to $1.04 billion. Gross margin should expand sequentially by between 0.9% and 1.3%, compared to 40.6% in the just-closed quarter.

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

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

 

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2390344, ~/Articles/ArticleHandler.aspx, 10/25/2014 11:55:02 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement