Novellus stock slips on computer-industry worries

SAN FRANCISCO (AP) — Shares of Novellus Systems Inc. fell on Thursday, a day after the technology equipment maker lowered its order guidance.

THE SPARK: On Wednesday, Novellus tempered its third quarter outlook and CEO Richard Hill told analysts in a conference call that customers had become "decidedly more cautious" since July, largely because of "persistent weakness in consumer PC demand."

What worried some investors was that the company narrowed its revenue guidance to $300 million to $320 million, from the previous forecast of $300 million to $340 million. However, cost controls and other factors allowed the company to narrow its earnings per share forecast to the upper end of the previous range, at 65 cents per share to 75 cents per share.

THE BIG PICTURE: Novellus makes equipment used in the manufacture of computer chips. When computer demand slumps, as it has been for PCs in the U.S. and Europe, its customers postpone buying expensive equipment. What Novellus is seeing is a slowdown caused by extreme weakness in the PC market.

THE ANALYSIS: Analyst Timothy Arcuri with Citigroup Global Markets, who has a "hold" rating on the stock, wrote in a research note that there was little surprise in Novellus' announcement, and that with the cut likely already incorporated into the stock price, ""we see the stock more likely to trade up than down on this news." He has a price target of $40 per share.

SHARE ACTION: The stock declined 60 cents, or 2.2 percent, to $27.37.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Super typhoon expected to weaken before reaching Philippines
    Super typhoon expected to weaken before reaching Philippines

    HAGATNA, Guam (AP) — A super typhoon blamed for the deaths of at least four people on islands in the western Pacific Ocean has moved into the open sea and is expected to significantly weaken before reaching the Philippines later this weekend. …

  • Philippine leader says 'worst airport' now looking much better
    Philippine leader says 'worst airport' now looking much better

    President Benigno Aquino Wednesday hailed renovations to the Philippines' main international airport, expressing optimism it would soon shake off its ranking on one website as the world's worst airport. Almost a year after he personally apologised for the failure of air-conditioning at Terminal 1 of Manila's international airport, Aquino said the facility appeared to be completely different. "It is like I have entered a completely different airport," he told reporters as he inspected the …

  • Volkswagen opens new showroom along Quezon Avenue
    Volkswagen opens new showroom along Quezon Avenue

    Volkswagen opened a new showroom along Quezon Avenue, which is now the automotive row of Northern Metro Manila.At the Innauguration was Chief Operating Adviser Klaus Schadewald, Branch Manager Bob Anthony Palanca, Volkswagen Philippines: President and CEO John Philip Orbeta and General Manager Nemesio Solomon, Jr. This new showroom has the latest Volkswagen Interactive Showroom applications. ... …

  • The Race to Global Greatness - YGP6
    The Race to Global Greatness - YGP6

    Yamaha Motor Philippines (YMPH) recently held the first leg of the Yamaha Grand Prix 6 at the SM Sta. Rosa compound in Laguna. The racing categories for this year are the following: Automatic Inter-Club RaceUnderbone Inter-Club Race115 Superstock ATVega Force i SuperstockSniper 150 Open UB130 Open UBMio 125 MX i …

  • Volkswagen opens new showroom along Quezon AvenueVolkswagen opened a new showroom along Quezon Avenue, …
    Volkswagen opens new showroom along Quezon AvenueVolkswagen opened a new showroom along Quezon Avenue, …

    Volkswagen opened a new showroom along Quezon Avenue, which is now the automotive row of Northern Metro Manila.At the Innauguration was Chief Operating Adviser Klaus Schadewald, Branch Manager Bob Anthony Palanca, Volkswagen Philippines: President and CEO John Philip Orbeta and General Manager Nemesio Solomon, Jr. This new showroom has the latest Volkswagen Interactive Showroom applications. ... …

  • Nissan launches its “Virtual to Reality” GT Academy here in the Philippines
    Nissan launches its “Virtual to Reality” GT Academy here in the Philippines

    The Filipino Gran Turismo gamer just became eligible to become a Pro Race Car driver as Nissan Philippines Inc. launched its GT Academy here in the Philippines. The object is to find the best Grand Turismo players in both the online qualification process and participating in the live events after which they’ll compete with each other in National Finals to see who gets to attend the 3 month Race camp.  The winner gets to stay in the UK near Silverstone and will take part in UK national and club …

  • Osmeña wants electricity exempted from VAT
    Osmeña wants electricity exempted from VAT

    Sen. Sergio Osmeña III wants electricity to be exempted from value added tax under a proposed measure that will amend the National Internal Revenue Code of 1997 and the Reformed VAT Law. He said the move aims to ease the burden of the public in paying high electricity rates in the country. “VAT on electricity is another burden on the already over-taxed shoulders of our people, especially those whose incomes are barely enough to cover their basic needs. Osmeña, chairman of the Senate …

  • No lotto draws starting tomorrow until Easter Sunday
    No lotto draws starting tomorrow until Easter Sunday

    No lotto tickets will be sold and no lotto draws made starting tomorrow, Maundy Thursday, up to Easter Sunday in observance of Holy Week. In a statement, Jose Ferdinand Rojas II, acting Philippine Charity Sweepstakes Office (PCSO) chairman and general manager, said the selling of lotto tickets and lotto draws will resume on April 6,  Monday. “We thank all Lotto players for your trust and confidence in the PCSO games, and we count on your continued support of our efforts to raise funds for …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options