Freescale Semiconductor Ltd. (FSL), the chipmaker mostly owned by a private-equity group including Blackstone Group LP (BX) and TPG Capital, rose after predicting second-quarter sales that may exceed some analysts’ estimates.
Second-quarter revenue will be $1 billion to $1.04 billion, the Austin, Texas-based company said yesterday in a statement. Analysts on average had estimated sales of $1.01 billion, according to data compiled by Bloomberg.
Freescale is a supplier of analog chips, microcontrollers and network processors competing with companies such as Texas Instruments Inc. (TXN) It supplies chips used in cars, phone systems and consumer electronics.
The company’s first-quarter net loss was $48 million, or 19 cents a share, compared with a loss of $9 million, or 4 cents a share, in the same period a year earlier. Sales rose 3.3 percent to $981 million, topping analysts’ average $966.3 million estimate. Interest payments of $121 million on debt created when the company was taken private contributed to the loss.
Freescale’s shares rose 8 percent to $15.71 at the close in New York. The stock has advanced 43 percent this year, compared with a 13 percent gain by the Philadelphia Semiconductor Index.
To contact the editor responsible for this story: Tom Giles at firstname.lastname@example.org