Cypress Semiconductor Corporation (CY): Can This Stock Extend Its Rally Post Earnings?

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On earnings

Analysts expect Cypress to be just about profitable with earnings per share of $0.01. This is way below earnings of $0.12 per share posted in the year ago period. The company hasn’t missed earnings estimates in the last four quarters, but there’s nothing to be positive about this trend asexpectations have always been quite low.

Thus, with the consensus estimate sitting at such a lowly figure this time, Cypress might just trip over it. The company’s margins have taken solid hits, and it won’t be surprising if we see the trend continuing. However, Needham analysts believe that Cypress will grow its margins in the coming quarters as the company adjusts its expenses according to lower revenue.

The takeaway

Cypress Semiconductor Corporation (NASDAQ:CY) has risen close to 14% ever since Needham upgraded the stock. If it can come out with a decent report this time, there’s no doubt that the rally could continue. Moreover, the stock’s dividend yield of 3.9% is another reason why investors could buy Cypress if the company signals a turnaround. Check back into this space again later this week for the complete analysis of Cypress, and find out which direction the stock might take going forward.

Harsh Chauhan has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Inc.’s (NASDAQ:AMZN) and Cypress Semiconductor . The Motley Fool owns shares of Amazon.com.

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