Cypress Semiconductor (NASDAQ: CY)
is slated to report second-quarter financial results after the closing bell on
July 25, Thursday. The stock has been pretty rewarding for investors this year,
gaining 75%, thanks to its acquisition by German rival Infineon Technologies.
The company is expected to report a 15% fall in revenues to $530.89 million in Q2, hurt by the weakness in the automotive industry. This, combined with the uncertainty relating to the US-China relations, could weigh on its Microcontroller and Connectivity Division (MCD) during the quarter.
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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