PMC-Sierra rolls past 3rd Quarter estimates

PMC-Sierra flew past analysts' estimates in its third quarter Thursday, earning $56 million, or 31 cents a share, on sales of $198.1 million.

First Call Corp. consensus expected it to earn 26 cents a share in the quarter.

PMC-Sierra (Nasdaq: PMCS) shares moved up $1.25 to $158.94 ahead of the earnings report.

The $198.1 million in sales marks a 140 percent improvement from the year-ago quarter when it earned $18.7 million, or 11 cents a share, on sales of $82.5 million.

"PMC-Sierra experienced significant growth in the third quarter despite a tight wafer supply situation," said CEO Bob Bailey in a prepared release. "As the supply situation loosens we hope to help our customers reduce their mounting backlogs. The broadband bandwidth buildout is in full swing and should continue for several years as new technologies and web-centric applications come online."

Last quarter, PMC-Sierra posted a profit of $39 million, or 23 cents a share, on sales of $134.1 million.

Its shares moved up to a 52-week high of $255.50 in August after falling to a low of $38.38 last October.

Twenty-two of the 23 analysts following the stock maintain either a "buy" or "strong buy" recommendation.

First Call Corp. consensus expects PMC-Sierra to earn 95 cents a share in the fiscal year.