Pixelworks slides on Q1 rev miss; Craig Hallum cuts PT on weak Q2 guidance

Pixelworks

01/05/2020 13:38

** Projector maker's  PXLW.O  shares plunge ~20% premarket
to $3.68, set to open at a two week low
    ** Co's Q1 loss was narrower than expected but revenue
missed estimates; cites first quarter seasonality and inventory
corrections in the digital projector and video delivery
markets urn:newsml:reuters.com:*:nGNXd95xk
    ** Shares to set for their sharpest percentage loss in
almost seven weeks
    ** Brokerage Craig Hallum cuts PT to $5 from $6, citing
surprisingly low Q2 guidance from the company; median PT is $6
    ** "PXLW is seeing inventory burn and/or launch ramp delays
created by COVID-19 affecting all segments in 2Q; we see 2Q as
the bottom, but are assuming the inflection is modest," Craig
Hallum says
    ** But brokerage maintains 'buy' rating on stock as it 
continues to see value in PXLW's Mobile/TrueCut business  
    ** Stock up 17% YTD

 (Reporting by Susan Mathew in Bengaluru;)
 ((susan.mathew@thomsonreuters.com; +91-80-6287-2704;))