LSI Corp. (LSI) Raises Outlook On Renewed Corporate Demand

Shares of LSI Corp. (NYSE: LSI) went up by 11% on Wednesday as the microchip and software maker raised its first-quarter outlook. The revised guidance is in the backdrop of a greater-than- expected recovery in corporate demand and increased IT (information technology) spending by companies.

The company’s board of directors has also authorized a stock repurchase program of up to $250 million. According to Thomson Reuters I/B/E/S, LSI raised its first-quarter revenue forecast from $590-$620 million to $620-$640 million. This is higher than the average estimate of analysts at $608 million. The first-quarter earnings per share is expected at 7-11 cents, up from 4-10 cents forecasted earlier. Analysts on an average were expecting 7 cents per share.