Brooks Automated Shares Fall on 1Q Loss

For the quarter ended Dec. 31, Brooks posted a loss of 2 cents per share, well below expectations of analysts polled by Thomson Financial, who expected a profit of 9 cents per share. Brooks also issued fiscal second-quarter guidance below Wall Street estimates, adding that it is in the midst of reducing its global staffing.

"Our results in the quarter are reflective of the difficult external environment that exists in the semiconductor capital equipment industry," the company' president and chief executive, Robert J. Lepofsky, said in a statement.

Citi Investment Research analyst Timothy M. Arcuri said in a note to investors that it is now too late to sell Brooks shares and they are too bland to buy. He said the stock's "sex appeal" is very low, and mediocre prices remain a "permanent anchor" on the stock's movement.

He reiterated a "Neutral" rating on the stock, and said shares should start seeing better days in the second half of 2008.

Meanwhile, Goldman Sachs analyst James Covello maintained a "Sell" rating on the stock, saying management execution remains disappointing and fundamentals should continue to deteriorate, driven by the weak capital expenditure environment in 2008. He reiterated a 6-month price target of $6.

"We would also note that subcomponent companies like Brooks tend to be impacted most during industry downturns, as Brooks operates at the bottom of the supply chain and is therefore unable to adjust its cost structure fast enough to sustain better relative profitability at the trough of the cycle," he wrote in a note to clients.

Brooks shares fell 83 cents, or 7.2 percent, to $10.70 in afternoon trading, having earlier fallen to $10.65 it's lowest point since mid-2006.