Skip to main content

Market Overview

Meaningful Revenue Ramp Up Unlikely In For Xcerra In 2016

Share:

Despite continued momentum of the new products launched by Xcerra Corp (NASDAQ: XCRA), the company is unlikely to record significant revenue growth in 2016, DA Davidson’s Thomas Diffely said in a report. He reiterated a Buy rating on the company, with a price target of $10.

FQ4 Preview

Xcerra is scheduled to report its July quarter earnings on September 1st, and is likely to meet expectations. Analyst Diffely estimates the quarter’s revenue at $93 million, representing 13 percent sequential growth, and pro-forma EPS at $0.09.

“Growth in the quarter will largely be driven by normal seasonality, healthier demand in China (for both testers and handlers), modest contribution from a couple of new products, and no meaningful headwinds from either Brexit or FX,” Diffely wrote.

Concerns Over 2016 Results

The analyst reduced the revenue estimate for CY16 from $365 million to $352 million, commenting that the expected growth in the MCU and PA markets had not materializing and that the timing of revenue contributions from new products and markets warranted a more conservative view.

“The new product momentum (a few new FPD customers, a couple InCarrier customers, multiple new handler evaluations, ongoing expansion of the contractor business) continues to build but, as the company is still a couple of quarters away from a meaningful revenue impact, the stock remains depressed,” Diffely stated.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for XCRA

DateFirmActionFromTo
Oct 2018Stifel NicolausSuspendsHoldHold
May 2018Stifel NicolausDowngradesBuyHold
May 2018NeedhamDowngradesBuyHold

View More Analyst Ratings for XCRA
View the Latest Analyst Ratings

 

Related Articles (XCRA)

View Comments and Join the Discussion!

Posted-In: DA Davidson Thomas DiffelyAnalyst Color Long Ideas Reiteration Analyst Ratings Trading Ideas

Latest Ratings

StockFirmActionPT
VORStifelInitiates Coverage On58.0
VORGoldman SachsInitiates Coverage On19.0
TERNJP MorganInitiates Coverage On32.0
TERNCowen & Co.Initiates Coverage On
TERNGoldman SachsInitiates Coverage On29.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com