On Tuesday, rival Texas Instruments (NASDAQ: TXN)
also reported
a 9% decline in revenue and 7% fall in earnings in the second quarter, hurt
by the same reasons.
Meanwhile, the smaller segment, Memory Products Division
(MPD) is likely to see continued momentum on the improving demand for its
products, thanks to the robust developmental activity in the 5G space.
Earnings are expected to be $0.24 per share, compared to $0.33 per share it reported last year. It may be noted that the San Jose, California-based firm has surpassed earnings estimates in all four of the trailing quarters.
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Last month, Cypress said it would be acquired by semiconductor
solutions firm Infineon Technologies for an enterprise value of €9 billion. The
deal, which represented a 46% premium to Cypress’s then trading price, was well
received by the street.
The transaction would be closed sometime later this year or early next year, meaning this could be the penultimate or final quarterly results.
The stock is currently trading near its 12-month average
price target. CY has an average HOLD rating, based on data from 11 analysts
compiled by TipRanks.
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