TriQuint: Earnings Estimate Scorecard

Mar.31.10 | About: Qorvo, Inc (QRVO)

Estimates for TriQuint (TQNT) have been on the rise following the upgrade in outlook for the first quarter of 2010 by the company.

TriQuint now expects revenue of $175 million in the quarter, up 47% year over year and up from the previous guidance of $170 million – $175 million.

Earnings per share is now projected at 11 cents, compared to the earlier forecast of 8 – 10 cents.

Guidance was not updated for 2010. On the fourth quarter conference call, management stated that revenues are expected to grow by 20% in 2010.

Agreement- Estimate Revisions

For 2010, all the 5 analysts following the stock raised their estimates in the last 30 days following management’s guidance upgrade. There was no revision in the opposite direction.

For 2011, one analyst out of 4 covering the stock raised estimate in the last 30 days while 2 analysts revised downward. In the last 7 days, one analyst cut back on expectation for 2011.

For the quarter (ending March), all the 5 analysts covering the stock raised their estimates with no revision in the opposite direction.

Magnitude – Consensus Estimate Trend

The current Zacks Consensus Estimate for 2010 is 50 cents, up 4 cents in the last 30 days following an upbeat guidance by the management.

For 2011, the current Zacks Consensus Estimate is 58 cents, up 2 cents in the last 30 days.

TriQuint has consistently met or exceeded its guidance. In terms of earnings surprises, earnings exceeded the Zacks Consensus Estimate in the last quarter by 9.09% while the third quarter met expectations.

The current Zacks Consensus Estimate for the third quarter is 8 cents, up one cent in the last 30 days.

Neutral on Triquint

Management stated that TriQuint continues to penetrate the high-volume and rapidly expanding mobile devices market and aims to build on its leadership position in networks, defense and aerospace.

TriQuint foresees a sustained demand for handsets and defense products along with a strong recovery in the networks market. Management continues to see solid adoption of its 3G products in multi-band smart phones. The company should also benefit from China’s investment in 3G infrastructure, which will more than offset lower infrastructure spending in other regions.

As of now, we maintain a “Neutral” rating on the stock.