Novellus raises quarterly orders target, mum on Q2
NEW YORK, May 28 (Reuters) - Novellus Systems Inc.(NasdaqNM:NVLS - News) on Tuesday raised its expectations for second-quarter orders, but the maker of equipment used to produce microchips declined to give financial guidance for the second half of the year.
Novellus shares fell to $45.54 in after-hours trading from a Tuesday close of $46.67. The shares of the industry's dominant player, Applied Materials Inc. (NasdaqNM:AMAT - News), also fell, dropping to $23.72 in after-hours trade from a close of $24.12.
Novellus said it now expected second-quarter orders of $275 million from an earlier guidance of $250 million. The company also said it now expects shipments of $225 million, revenue of $220 million and earnings per share of 8 cents.
The chip equipment industry has forecast hefty growth in orders for the first half of the year and the stocks have rallied on the news. Novellus shares, for instance, have risen about 13 percent this year, while the broader Nasdaq Composite index (NasdaqSC:^IXIC - News) has fallen 17 percent over the same period.
Some analysts have begun to raise concerns the stocks may be overvalued. Last week, Goldman Sachs analyst James Covello lowered his ratings on the chip equipment sector, saying microchip factory owners may slow or halt orders for new equipment later this year if clear signs of strength in demand for computers and other electronics fail to appear. |
