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Filed under: Analyst reports, Analyst upgrades and downgrades, Analyst initiations

Analyst upgrades:

PMC-Sierra (PMCS) shares are down sharply today on a disappointing outlook for the fourth quarter. While third quarter results were a bit ahead of expectations, conditions seem to be deteriorating.

On its post-earnings conference call last night, the company said it sees Q4 revenue of $125 million to $135 million, below the Street at $143.8 million. PMC said the two areas where business is week are printers and fiber-to-the-home.

PMC-Sierra (PMCS) posted third quarter revenue of $139.4 million and non-GAAP profits of 13 cents a share; the Street had been looking for $139.2 million and 13 cents. The company said it had “solid growth” in its WAN infrastructure business in the quarter, due to strength in Asian telecom network buildouts.

PMCS, which rose 36 cents, or 6.9%, to $5.59 in the regular session, has now reversed course; the stock is down 34 cents, to $5.25, in late trading.

PMC-Sierra (PMCS) shares are trading higher today, apparently getting a boost from comment this morning by Morgan Stanley chip analyst Mark Lipacis, who maintains an Overweight rating on the stock.

PMC-Sierra (PMCS) this afternoon posted better-than-expected Q2 results, citing “strong demand for our fiber to the home products in Asia as well as growth in our wireline infrastructure products.”

PMCS posted Q2 revenue of $139.8 million and non-GAAP profits of 13 cents a share; the Street had expected $137.25 million and 12 cents.

In after hours trading, PMCS is down 8 cents, or 1%, to $7.85. The stock rose 62 cents in the regular session.