Top Performer for Tues: Conexant Systems (CNXT)

The electronic components-semiconductors industry is rather well-represented on the Zacks #1 Rank List with 8 names. Today's Zacks #1 Rank Top Performer is one of those companies: Conexant Systems, Inc. (CNXT - Snapshot Report).

Shares of the company are up about 6.7% on Tuesday with volume at about 824,000 shares, which is below the daily average of 1.06 million.

Late last month, CNXT announced fiscal fourth-quarter earnings per share that surpassed the Zacks Consensus Estimate. It also forecasted a profit guidance for the fiscal first quarter that was above expectations.

Conexant Systems is a fabless semiconductor company with a comprehensive portfolio of innovative semiconductor solutions, including products for imaging, audio, embedded-modem and video applications.

The 7 other names from this space on the List are Actel Corporation (ACTL - Analyst Report), Avago Technologies Ltd. (AVGO), Cirrus Logic, Inc. (CRUS - Analyst Report), Integrated Device Technology, Inc. (IDTI - Analyst Report), LSI Corporation (LSI - Analyst Report), United Microelectronics Corporation (UMC - Analyst Report) and Virage Logic Corporation (VIRL - Snapshot Report).

Earnings Estimates for Conexant Systems

Conexant Systems' fiscal year ends September 2010. At the moment, the Zacks Consensus Estimate is 33 cents for the period, which is up 120% in 2 months and 27% in 30 days. Both of the company's covering analysts revised higher in the past month.

There's currently only one covering analyst for the fiscal year ending September 2011, who has a guidance of 47 cents. That would account for a year-over-year profit growth of more than 42%.

Fiscal Fourth Quarter

Conexant Systems earned 6 cents per share in its fiscal fourth quarter, excluding items, which easily surpassed the Zacks Consensus Estimate for a loss of 3 cents.

Core net revenues in the quarter were down to $56.2 million from $81.1 million last year, but surpassed the company's guidance heading into the quarter and the performance of the immediately preceding quarter. It's imaging and audio businesses grew 18% sequentially and accounted for 58% of total revenues.

Looking toward the fiscal first quarter, CNXT expects core net income of 11 cents per share, which is a penny better than the current Zacks consensus Estimate of 10 cents. It also expects revenues at approximately $60 million.

"We plan to grow by capturing market share with existing designs and delivering new products for the areas we currently serve," said Chairman/CEO of Conexant Systems Scott Mercer. "In addition, we plan to apply our core capabilities in analog and mixed-signal design and firmware and software development to capitalize on new opportunities in adjacent markets."

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