Jefferies & Co. chip analyst John Lau this morning cut estimates for both RF Micro Devices (RFMD) and Advanced Analogic Technologies (AATI) due to the impact on the two semiconductor companies from weakness in China’s wireless handset market related to the recent earthquake.
“Our calls to Asia over the last few nights indicate continued weakness and volatility in local wireless handsets due to the recent earthquake in China,” he writes this morning. “Local brand handsets are more impacted than the Tier 1 handset sales.”
For RFMD, he cuts his June quarter revenue estimate to $231.88 million from $240 million. His EPS estimate remains a penny a share. For the March 2009 fiscal year, his EPS estimate drops to 25 cents, from 28 cents. For 2010, he goes to 41 cents, from 44 cents. Lau keeps his Buy rating on the stock, but cuts his target price to $6 from $6.50.