The value of micro cap stock for Mindspeed Technology, Inc. (NASDAQ:MSPD) was up by more than a quarter of its total value on Wednesday after the semiconductor manufacturer provided a fourth quarter guidance that got investors' attention.
According to The Associated Press, the chipmaker's fourth-quarter revenue forecast topped Wall Street estimates, as the company now expects revenue to fall between $35 million to $36 million, compared with a previous estimate of $33.5 million to $35.5 million. This was also higher than analysts polled by FactSet expected, who called for revenue of $34.5 million.
The media outlet stated CEO Raouf Y. Halim said the improved forecast comes from improved demand for its high-performance analog and VoIP products. Its wireline division, which covers the company's traditional phone line wing, also looks to be stabilizing, he said.
Investors will now tune in on November 5, when the company will report its fourth-quarter earnings, to find out if the higher guidance was too lofty a goal or an accurate demand estimate.
As of 3:56 p.m. on Wednesday, September 12, Mindspeed's stock was up 26.6 percent to $3.24.