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RF Micro Devices (RFMD) reported earnings today that easily beat on the top and the bottom line. I have been positive on this Apple (NASDAQ:AAPL) supplier for three months after I profiled it in October when it was trading more than 10% lower. Based on this latest report, the shares still have further upside.

Positives from RFMD's earnings report:

  • Revenues came in at over $271mm, up 29% sequentially and easily beating estimates of just under $246mm.
  • The company's CEO stated the "quarter reflected continued content gains, category expansion, and growth in our addressable markets"
  • Earnings came in a 8 cents a share, two cents above estimates.
  • The company sees next quarter revenue of $250mm to $255mm, easily above estimates of $228mm.

RF Micro Devices, Inc. designs and manufactures radio frequency components and compound semiconductor technologies primarily in the United States and Asia.

4 additional reasons RFMD still has further upside from $5 a share:

  1. Consensus earnings estimates for both FY2013 and FY2014 have moved up nicely since I profiled the company in late October.
  2. Revenue estimates for the next fiscal year were for around a 15% sales increase and I would look for those to be revised up based on this latest report.
  3. The company's two biggest customers are still Apple and Samsung (OTC:SSNLF), so it is well positioned regardless of who takes the lead in the smartphone market.
  4. Earnings are set to double in FY2014 to 31 cents a share from around 15 cents a share in FY2013. The company also has a robust balance sheet with approximately 10% of its market capitalization in net cash.

Disclosure: I am long AAPL, RFMD. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Source: $5 iPhone Supplier Beats On Earnings And Is Heading Higher