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Thursday, Dec 7, 2023

International Rectifier Shares Drop on Cautious Outlook

International Rectifier Corp. shares dropped 11 percent on Thursday, a day after the El Segundo chip maker gave guidance below Wall Street expectations.

After the Wednesday markets closed, the El Segundo semiconductor maker reported fiscal fourth quarter net income of $39.6 million (55 cents per share) for the quarter ended June 26, compared with net income of $29 million (41 cents) in the same period a year earlier. Revenue rose 20 percent to $317 million. The results included a $12.4 million gross tax benefit.

Analysts surveyed by Thomson Reuters on average expected per-share profit of 51 cents on revenue of $315 million.

The company’s lower-than-expected revenue outlook for the current quarter was linked to weaker demand. The company expects first quarter revenue to be between $290 million and $310 million, compared with the Wall Street consenus of $320 million.

“While the current environment may be uncertain, we believe we are in the right markets with the right technologies and are confident in our long-term growth potential,” Chief Executive Officer Oleg Khaykin said in a statement.

Shares on Thursday closed down $2.49, or 11 percent to $20.35 on the New York Stock Exchange.

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