Verigy Ltd. (VRGY) Stock Soars on Earnings
Shares of Verigy Ltd., which makes equipment to test computer chips, rose on Wednesday after the company posted fourth-quarter profit above Wall Street expectations and said first-quarter earnings will surpass estimates.
The stock added $5.14, or 24.4 percent, to $26.19 in late-morning trading.
Stifel Nicolaus & Co. analyst Patrick Ho upgraded the company to "Buy" from "Hold" with a $32 price target, but lowered his 2008 earnings estimate to $2.07 per share from $2.17.
"Although the industry is clearly in a state of flux, we believe that Verigy's strong market share position (and one that we believe will continue to improve) and its strong business model will allow the company to weather the industry's volatility better than any of its peers," Ho said in a client note.
For the fourth quarter, the company posted a profit of $32 million, or 52 cents per share on revenue of $209 million. Analysts expected profit of 50 cents per share, according to Thomson Financial.
The stock added $5.14, or 24.4 percent, to $26.19 in late-morning trading.
Stifel Nicolaus & Co. analyst Patrick Ho upgraded the company to "Buy" from "Hold" with a $32 price target, but lowered his 2008 earnings estimate to $2.07 per share from $2.17.
"Although the industry is clearly in a state of flux, we believe that Verigy's strong market share position (and one that we believe will continue to improve) and its strong business model will allow the company to weather the industry's volatility better than any of its peers," Ho said in a client note.
For the fourth quarter, the company posted a profit of $32 million, or 52 cents per share on revenue of $209 million. Analysts expected profit of 50 cents per share, according to Thomson Financial.
Labels: Verigy Ltd., VRGY
posted by Stock Administrator @ 2:05 PM
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