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Next Week's Tech Earnings Winners and Losers: Atmel, Cisco, PMC-Sierra, and More

the Editors

Earnings season is upon us in the tech sector. What should investors expect from these reports? What are the key storylines to follow and are these stocks likely to trade higher or lower in the wake of their results? In's earnings previews, available free to trial subscribers, key storylines are evaluated, analyst expectations are audited, and in depth valuation analyses are provided to develop fair value ranges for dozens of stocks. Next Inning's model portfolio has returned 300% since 2002, nearly seven times the return of the S&P 500.

In its upcoming earnings preview, Next Inning looks at several popular stocks, including PMC-Sierra (NASDAQ: PMCS - News), Atmel (NASDAQ: ATML - News), Cisco Systems (NASDAQ: CSCO - News), ON Semiconductor (NASDAQ: ONNN - News), and Alcatel-Lucent (NYSE: ALU - News).

Here is just a tiny sample of what Editor Paul McWilliams wrote about Atmel: "The problem with Atmel is Wall Street has seen it as a one-trick pony and, as such, is now viewing its still market-leading position in touch screen control as a risk versus the virtue it priced it to be only a year ago. As I noted early last year, this positive attention was clearly warranted based on the fact that Atmel came from nowhere to become the sector leader. However, I also noted caution was in order since competitors, specifically Cypress Semiconductor (NASDAQ: CY - News), would become more visible and aggressive in 2011.

"While a portion of the decline we saw in Atmel's price last year is perfectly logical, warranted, and in line with my stated expectations, I think the stock has been oversold. As I see it, Wall Street is isn't giving Atmel enough credit for the many fundamental accomplishments it delivered during the last five years, or for the breadth of the revenue base it has developed across several strategic sectors outside touch screen. To put this in perspective, while revenue from touch-screen applications more than doubled in 2011, it still only represented about 20% of Atmel's total revenue..." Just a few of the correct calls Next Inning has already made this earnings season include:

  • to be bullish on Apple (NASDAQ: AAPL - News) ahead of earnings. (up 12% year to date)
  • to be bullish on VMware (NYSE: VMW - News) ahead of earnings. (up 13% year to date)
  • to be bullish on Triquint Semiconductor (NASDAQ: TQNT - News) to start 2012. (up 33% year to date)

The Next Inning model portfolio is up 22% year to date versus 5% for the S&P 500. Click here to start your free 21-day trial membership to Next Inning Technology Research and get McWilliams' in depth reports, earnings previews, and real-time trade alerts.