Goldman Sachs Adjusts Novellus Estimates

Novellus NVLS held its regularly scheduled 2Q11 mid-quarter update, Goldman Sachs reports. “Novellus left the range of its order guidance unchanged at -10% to -25% qoq (implies $311 to $374 mn), but noted bookings are tracking toward the low end of this outlook,” Goldman Sachs writes. “Shipment guidance of flat to down 10% qoq ($339 to $377 mn), revenue guidance of $330 to $372 mn (-10% to -20% qoq) and Gross margin guidance for 49 to 51% are all unchanged. “However, the company raised its EPS guidance to $0.70 to $0.80 from $0.65 to $0.80, reflecting both (1) taxes trending toward the high-end of the range due to increased domestic mix and (2) the company issuing $700 mn of convertible debt and using about $600 mn to repurchase 17.5 mn shares. We raise 2011E/2012E/2013E EPS to $3.50/$2.60/$1.70 from $3.35/$2.40/$1.60 entirely on a lower share count, as we had assumed a 10 mn share repurchase.” Novellus closed Tuesday at $36.27.