Stephens, Inc. Analyst Harsh Kumar says he is starting to see leverage return to Microsemi Corporation’s (MSCC) model. He says that should be helpful to the stock.
“The issue here has been that the company is fairly heavily involved in defense and aerospace,” Kumar says. “It’s right at about 50% of total revenues, and that business suffered from the government shutdown we had late last year.”
FOR MORE INFORMATION ON THIS INTERVIEW CLICK HERE.
Kumar says that as that business becomes steadier with the government coming back and defense, particularly aerospace, spending improving, Microsemi stands to benefit.
“The management has a goal of 30% operating margins,” Kumar says. “The company today is running at 21% operating margins.”
ViewPoint Financial Group (VPFG) More Fully Valued After Gaining Market Share in Texas and Second-Step Conversion
March 04, 2013
Aetna (AET) Improves Margins After Gaining Market Share
May 29, 2013
NXP Semiconductors NV (NXPI) Gaining Scale Through Acquisition
May 28, 2015
Chemical Companies Leverage Growth in Developing Markets
June 17, 2010
H.R. 529 and S. 2136 Would Allow Smaller BDCs to Increase Leverage
December 24, 2012
