Sterne Agee: SemiLEDs EPS Preview

In a research report published this morning, Sterne Agee continues to believe that SemiLEDs LEDS risk/reward is favorable. “Consensus revenue is $7.4 million (guidance in the range of $7-$8 million), and consensus EPS is a loss of $0.26 per share (guidance in the range of a loss of $0.26-$0.28 per share). Though our estimates are slightly below consensus on revenue and in-line with consensus on EPS ($7.1 million in revenue and a loss of $0.26 per share), we expect gross margins to improve slightly and ASP erosion to continue to moderate,” Sterne Agee commented in the report. Sterne Agee maintains its Buy rating and $10 PT on SemiLEDs, which closed yesterday at $3.96.