Oct. 20, 2014, 5:21 PM
- iPhone suppliers are trading higher after Apple beat FQ4 estimates and issued FQ1 guidance that was mostly above consensus. FQ4 iPhone sales of 39.3M were better than expected, and iPad sales of 12.3M worse than expected.
- Cirrus Logic (NASDAQ:CRUS) +1.4% AH. Avago (NASDAQ:AVGO) +1.2%. Skyworks (NASDAQ:SWKS) +1.2%. RF Micro (NASDAQ:RFMD) +2.4%. NXP (NASDAQ:NXPI) +2%.
Oct. 14, 2014, 9:33 AM
- Skyworks (NASDAQ:SWKS) expects FQ4 (Sep. quarter) revenue of $718M and EPS of $1.08, above a consensus of $679.5M and $1.01. Full FQ4 results arrive on Nov. 6.
- The RF component maker also hiked its FQ3 guidance in June. Strong iPhone 6-related demand may have contributed to the latest hike, given recent reports.
- Peers are also up strongly amid a higher open for equities: RFMD +5.5%. TQNT +5.3%. AVGO +3%. Like other chip stocks, the group sold off on Friday following Microchip's warning.
Oct. 14, 2014, 9:15 AM
Oct. 10, 2014, 9:59 AM
- Microchip's (MCHP -12.5%) calendar Q3 warning, which was accompanied by a declaration that it believes "another industry correction has begun and that this correction will be seen more broadly across the industry in the near future," is taking a heavy toll on chip stocks (SOXX -5.5%).
- Intel (INTC -4.2%) and many other chipmakers have joined the several firms that sold off AH yesterday in going in the same direction as Microchip: MU -5.8%. FSL -8.5%. BRCM -3.6%. SWKS -7.5%. RFMD -6.2%. XLNX -4.9%. MXIM -5%. AMBA -5.5%. IDTI -6.7%. CAVM -7.4%. AVGO -10.2%. SMTC -4.3%. SYNA -4.1%. POWI -6.9%.
- Chip equipment makers are also getting hit: AMAT -3.5%. KLAC -3.3%. LRCX -2.3%. UTEK -2.5%. KLIC -2%.
- As Microchip noted in yesterday's warning, the company's very diversified customer base, together with its recognition of distributor revenue on a customer sell-through basis rather than a distributor sell-in basis, often allow it to see industry changes before peers.
- The microcontroller vendor added its warning was driven by a September decline in sales to Chinese clients, and observed it has typically "returned to sequential revenue growth after two quarters" during past downturns.
- Chip stocks have had a good run over the last 12 months, aided by healthy mobile demand and the industry's consolidation wave.
Sep. 26, 2014, 5:37 PM
Sep. 24, 2014, 1:40 PM
- Predicting the companies will benefit from a "golden age" for RF components (echoes of recent analyst notes), MKM's Ian Ing has launched coverage on Skyworks (SWKS +2.9%) and RF Micro (RFMD +2.5%) with Buy ratings. His targets are respectively $68 and $15. TriQuint (TQNT +2.7%) is following RF Micro higher.
- Ing expects Skyworks' Panasonic RF filter JV to provide both technology and gross margin benefits, and thinks the company can achieve $5/year in EPS earlier than expected; the FY15 (ends Sep. '15) EPS consensus is currently at $3.93.
- Regarding RF Micro, he likes the company's post-merger revenue synergies with TriQuint, and also its Chinese 4G exposure. "The main risk we see is RFMD's ability to balance post-merger synergies with supply requirements in serving steep OEM ramps."
- Skyworks is making new post-Dot.com bubble highs. RF Micro and TriQuint aren't far removed from post-bubble highs of $12.98 and $21.48.
Sep. 19, 2014, 9:36 AM
- iFixit's teardown of the iPhone 6 Plus turned up five Qualcomm (NASDAQ:QCOM) chips, up from the three found in last year's teardown of the 5S and nearly matching the six found in certain Galaxy S5 teardowns.
- In addition to the expected Cat-4 LTE baseband modem, a Qualcomm power management IC, RF transceiver, receive-only chip (needed to enable LTE carrier aggregation), and envelope-tracking IC (relatively new, improves battery life) were found in the 6 Plus.
- In-line with rumors and the company's hints, an InvenSense (NYSE:INVN) motion sensor - specifically, a 6-axis gyroscope/accelerometer - was found. That suggests InvenSense has displaced STMicroelectronics (NYSE:STM) as the iPhone's motion sensor supplier.
- Two Skyworks (NASDAQ:SWKS) power amplifier modules are found, including a low-band LTE part. Avago (NASDAQ:AVGO) has both a high-band amplifier module, and an integrated ultra high-band amplifier/FBAR filter module. TriQuint (NASDAQ:TQNT) can claim a 3G amplifier module, and merger partner RF Micro (NASDAQ:RFMD) an antenna switch module.
- Broadcom (NASDAQ:BRCM) appears to remain the iPhone's combo chip supplier (courtesy of a module from partner Murata), and also supplies a touch controller IC. Chipworks thinks Broadcom also has the Wi-Fi slot for the Apple Watch.
- As expected, NXP (NASDAQ:NXPI) is supplying an NFC module and the M8 motion co-processsor, and Cirrus Logic (NASDAQ:CRUS) the audio codec IC. Texas Instruments (NASDAQ:TXN) is providing a touch transmitter IC.
- Moving in response: INVN +1.9%. AVGO +1.5%. STM -3.9%.
Sep. 18, 2014, 6:56 PM
- Once their merger officially closes, RF Micro (NASDAQ:RFMD) and TriQuint (NASDAQ:TQNT) will be known as Qorvo, and trade under the symbol QRVO.
- The companies (or their marketing departments) claim the new name "conveys the combined company's ability to deliver the core technologies and innovation that will enable customers to launch their next-generation designs even faster."
- RF Micro and TriQuint shareholders have already approved the all-stock merger, which will result in each investor base owning about half of the post-merger company.
Sep. 3, 2014, 12:16 PM
- Apple suppliers Cirrus Logic (CRUS -3%), GT Advanced (GTAT -5%), Skyworks (SWKS -2.3%), TriQuint (TQNT -2.6%), and RF Micro (RFMD -2.8%) are following Apple lower after Pac Crest recommended investors start taking profits on the tech giant ahead of its Sep. 9 event. Expected iPhone 6 motion sensor supplier InvenSense (INVN -3.3%) is also off.
- GT was hit recently by two downgrades, partly offset by a bullish coverage launch. InvenSense, Skyworks, TriQuint, and RF Micro have all rallied strongly over the last 3 months.
Aug. 29, 2014, 11:03 AM
- Avago (AVGO +8.1%) has received a slew of target hikes after beating FQ3 estimates, reporting strong margins, and issuing healthy FQ4 guidance. RF component peers Skyworks (SWKS +1.6%), RF Micro (RFMD +4.5%), and TriQuint (TQNT +5.2%) are also higher.
- "We believe Street continues to under-appreciate this self-help story where mgmt has a proven record of cutting costs, paying down debt, and executing on multiple secular growth cycles," says BofA/Merrill. Its FY14 and FY15 EPS forecasts have respectively been raised by 20% and 25%.
- Credit Suisse: "Avago's leverage to structural growth drivers including content increases in the Industrials/autos end-mkts and accelerating demand for bandwidth, as well as, product cycles (4G/LTE wireless ramps at Apple and China) should allow the company to outperform peers." The diversification provided by the LSI deal is seen providing "further stability."
- Morgan Stanley expresses "high conviction in management's ability to execute on driving LSI's [operating margin] from 17% to 30% over the next few years," given Avago has doubled its op. margin to 30% since its 2005 LBO.
- On the CC (transcript), CEO Hock Tan mentioned wireless sales are expected to rise over 60% Q/Q thanks to "the ramp of a new phone model and a North American smartphone customer" (a clear iPhone 6 reference). Demand for FBAR filters and related products in 4G phones remains strong.
- Wired infrastructure is expected to grow at a low-single digit rate (switch/router ASIC growth offsetting flat optical component demand), and enterprise storage is expected to see mid-single digit growth excluding the PLX acquisition.
Jul. 25, 2014, 9:13 AM
Jul. 24, 2014, 4:22 PM
- RF Micro (NASDAQ:RFMD) expects FQ2 revenue of $345M and EPS of $0.27, above a consensus of $328.8M and $0.21.
- FQ1 gross margin was 47.1%, +510 bps Q/Q and +1200 bps Y/Y. FQ2 GM is expected to be flat to up 25 bps Q/Q.
- TriQuint (NASDAQ:TQNT) is also up. Shares of both companies initially sold off after TriQuint offered light Q3 guidance (but healthier 2H guidance) yesterday afternoon, but closed higher today.
- FQ1 results, PR
Jul. 24, 2014, 4:02 PM
Jul. 23, 2014, 6:48 PM
- TriQuint (NASDAQ:TQNT) expects Q3 revenue of $255M-$265M and EPS of $0.23-$0.25 vs. a consensus of $277.9M and $0.24.
- However, the RF component maker still expects 2H14 revenue of $550M-$600M. With a Q2 beat in tow, that implies full-year revenue of $958M-$1.008B vs. a $968.6M consensus.
- Q2 gross margin was 41.7%, up from 35.3% in Q1 and 31.3% a year ago, and soundly above guidance of 37%-38%. GM is expected to rise to 43%-45% in Q3, and full-year GM is now expected to top 40%.
- TriQuint says it's seeing strong demand both for 4G base station chips and premium RF filters for smartphones. 50 customers bought premium filters in Q2, and total discrete filter revenue is expected to more than double in 2014.
- RF Micro (NASDAQ:RFMD), whose all-stock merger with TriQuint is set to close later this year, is ticking lower ahead of tomorrow's FQ1 report. Both RF Micro and TriQuint sold off today as part of a broader chip stock rout.
- Q2 results, PR
Jul. 23, 2014, 4:05 PM| Comment!
Jul. 23, 2014, 12:25 PM
- Among the year's best tech performers, chip stocks are selling off (SOXX -1.8%) on an up day for the Nasdaq following weak numbers from FPGA giant Xilinx (XLNX -14.5%).
- Xilinx missed FQ1 revenue estimates by over $18M, and also guided for FQ2 revenue to be well below consensus. The company blamed the FQ1 shortfall on soft defense and wireless sales. BMO and BofA/Merrill have downgraded Xilinx; the former thinks Xilinx's 28nm share might be peaking.
- Xilinx stated on its CC (transcript) the wireless weakness was mostly due to soft 28nm chip sales to Chinese 4G base station vendors; Chinese 4G rollouts have long been viewed as a catalyst for both Xilinx and Altera (ALTR -4.7%). Aerospace/defense sales were hurt by program timing issues.
- Meanwhile, switch/router vendor Juniper offered light Q3 guidance to go with a Q2 beat. The company noted on its CC (transcript) "market dynamics" for U.S. carriers, including M&A activity, are affecting project rollouts.
- Also: Analog/mixed-signal IC vendor Linear (LLTC -4.1%) is selling off in spite of beating FQ4 estimates and guiding in-line (8%-11% Y/Y FQ1 rev. growth vs. 9.1% consensus).
- Notable decliners: FSL -5.3%. IDTI -6.4%. EZCH -3.3%. PMCS -4.3%. LSCC -6.8%. CAVM -4.7%. SMTC -4.1%. ATML -3.2%. TQNT -3.1%. RFMD -2.9%. IRF -2.9%.
- Qualcomm, NXP, TriQuint, and Cirrus Logic report after the bell.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
QRVO vs. ETF Alternatives
Qorvo Inc is a provider of technologies and RF solutions for mobile, infrastructure and aerospace/defense applications. Its products include amplifiers, frequency duplexers, modules and among others.
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