Well, there was a hefty run-up yesterday in expectations of the figures, and today, now that they’re out, the’ve retreated much of that run-up. Is there justification for that?

Well, yes and no. A few data:

• earnings beat estimates, but not by a whole lot, 51 cents (expected was 48 or 49 -depending on the source used- cents, average)
• they confirmed whole year outlook: $770 million to $808 million and margins of 23% to 25%.
• they gave guidance for next quarter, above expectations as well: $169 million to $177 million and margins of 23% to 25%. Analysts projected sales of $168 million.
• silicon cost are rising, and they will keep on rising 5-10% in the second quarter.

This is all very good. Higher silicon cost, but still beating analyst mean expectations. But it’s not terribly good as last quarter, in which they trounced estimate. Hence the gyrating stock price, although it’s already on its way up half an hour into the trading day.

It’s good enough for leaving that 200 day moving average (44) behind us, unless there is a terrible sell-off in the sector, the stock is still a buy as far as we are concerned.