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
Jul. 21, 2014, 5:38 PM
Jul. 18, 2014, 2:51 PM
- "We believe Skyworks’ (SWKS +13.5%) diverse analog portfolio is enabling content share gains in its handset customer base," writes Canaccord after taking in the RF component giant's FQ3 beat and very strong FQ4 guidance.
- Canaccord thinks the FQ4 outlook is due to a mixture of strong iPhone 6 content share, growing sales of higher dollar-content integrated solutions to Chinese/emerging markets OEMs (gaining Android share), and "growing traction" for the company's non-phone analog IC business.
- 802.11ac Wi-Fi, mobile infrastructure, and embedded products (the proverbial "Internet of Things") are some of the non-mobile RF markets Canaccord sees Skyworks growing its sales to. Needham, for its part, also sees the smart grid, automotive, and medical markets providing a boost.
- On the CC (transcript), CEO David Aldrich declared broader mobile RF demand is benefiting from the need to support a larger number of spectrum bands - Avago (AVGO +4.3%) also benefits from this - as well as growing system complexity (driving a shift towards integrated solutions) and OEM efforts to improve signal performance.
- RF component peers Avago, RF Micro (RFMD +6.7%), TriQuint (TQNT +6.8%), and Resonant (RESN +7%) are outperforming amid a tech rally, as are several other mobile suppliers. INVN +3.9%. HIMX +2.9%. OLED +5.3%. CRUS +2.9%.
Jul. 17, 2014, 5:19 PM
- In addition to beating FQ3 estimates, Skyworks (NASDAQ:SWKS) is guiding for FQ4 revenue of $680M and $1.00, soundly above a consensus of $608.1M and $0.87. The numbers come 6 weeks after Skyworks hiked its FQ3 outlook.
- Gross margin +70 bps Q/Q and +140 bps Y/Y to 45.4%. GAAP opex +11% Y/Y to $115.7M, trailing rev. growth of 35%. 1M shares were repurchased.
- RF Micro (RFMD - reports on July 24) is following Skyworks higher. Merger partner TriQuint (TQNT - reports on July 23) might end up doing the same. Skyworks is once more near a 52-week high of $49.10.
- FQ3 results, PR
Jun. 25, 2014, 6:22 PM
- Black Sand Technologies, based out of Austin, was founded in '05 and has raised $28.2M in funding over its history.
- Notably, the product page on Black Sand's site only shows 3G amplifiers, and the most recent PR on its news page is from 2012. All signs suggest Qualcomm (QCOM) is buying the company to strengthen its power amplifier IP and/or engineering talent, as it encroaches on the turf of established vendors such as Skyworks (SWKS), TriQuint (TQNT), RF Micro (RFMD), and Avago (AVGO) with system-level solutions.
- Qualcomm, estimated to have 64% of the 2013 baseband processor market, made a dramatic entry into the amplifier market last year by announcing an RF front end solution (amplifiers included) that promised superior 3G/4G multi-band support and (via technologies such as envelope tracking) power efficiency. Skyworks, TriQuint, and RF Micro all tumbled following the announcement.
Jun. 9, 2014, 10:36 AM
- A slew of chip stocks are rallying following Analog Devices' (ADI +5.9%) $2B deal to acquire RFIC vendor Hittite Microwave.
- The purchase is part of an M&A wave that has hit the semiconductor industry over the last 12 months, as chipmakers try to gain scale, cut opex, and grow their cross-selling opportunities by consolidating. Other deals: RF Micro/TriQuint, Avago/LSI, Microchip/ISSC.
- ADI, which shares many telecom equipment, defense/aerospace, and automotive clients with Hittite, predicts Hittite's RF, microwave, and millimeter wave ICs will complement its RF and signal-conversion (ADC/DAC) products.
- Several RF and analog/mixed signal chipmakers are higher, but they're not the only gainers: RFMD +1.8%. TQNT +1.8%. PSMI +2.5%. LLTC +1.6%. MSCC +2.1%. IDTI +3.8%. ATML +3.4%. IRF +1.4%. SIGM +3.9%. AMCC +3.8%.
- Chip ETFs: SOXX, SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Apr. 30, 2014, 9:11 AM
Apr. 29, 2014, 5:43 PM
Apr. 29, 2014, 4:54 PM
- RF Micro (RFMD) expects FQ1 revenue of $305M and EPS of $0.17, well above a consensus of $277M and $0.11. Gross margin is expected to rise 150-200 bps from an FQ4 level of 42%. Shares +5.2% AH. Merger partner TriQuint (TQNT) +5.3%. (FQ4 results, PR)
- NCR expects 2014 revenue of $6.75B-$6.85B and EPS of $3.00-$3.10 vs. a consensus of $6.85B and $3.05. Shares -4.4% AH. (Q1 results, PR)
- Trulia (TRLA) expects Q2 revenue of $61.5M-$62.5M (above a $61M consensus) and adjusted EBITDA of $2.3M-$2.8M (compares with Q1's $2.8M). Full-year guidance is for revenue of $250M-$253M (up $5M from prior guidance and above a $247.6M consensus) and adjusted EBITDA of $18M-$22M (reiterated). Shares -2.8% AH. Rival Zillow (Z) -1.2% after rising 14.1% in regular trading following Tiger Global's disclosure.
Apr. 29, 2014, 4:02 PM| Comment!
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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