Stock Market Watch

LSI (LSI) Up after Raising Outlook

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LSI Corp. (NYSE:LSI) shares are up over 5% in morning trade and traded at a 52 week high after the company raised its revenue and earnings outlook for its first quarter above analyst forecasts. This after the company experienced a stronger than expected recovery in the hard-disk drive market and saw a rise in demand for its flash-based products.

LSI (LSI) now expects first quarter profits on an adjusted basis to come in between 12 cents and 16 cents per share. This is above prior analyst forecasts of 12 cents per share. Quarterly revenues are expected between $585 million and $615 million. This easily exceeds consensus forecasts of $572 million. Gross margins for the quarter are expected to improve to 52%.

The raised guidance comes on the heel of a strong fourth quarter report delivered by the company. The company had raised its profit and revenue outlook for the first quarter in that report. It had raised its earnings outlook from 10 cents a share to 12 cents a share and its revenue outlook from $510 million to $572 million. The current forecast exceeds already raised guidance.


“We are benefiting from better than expected strength in the hard disk drive market in the quarter as our team has done a great job working with our customers to meet this additional demand,” said Abhi Talwalkar, LSI (LSI) president and CEO. “This revised guidance reflects strength in our hard disk drive business as well as upside in our projections for our flash-based products.”

“Today we will highlight the growth drivers for the company and demonstrate how our multi-year investment strategy has positioned LSI to benefit from the tremendous global growth in data as well as from inflection points like cloud computing, mega datacenters, mobile networks and flash,” continued Talwalkar.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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