Today, 10:50 AM
- The Philadelphia Semi Index (SOXX -1.8%) is now down 6% over the last two days. Today's losses come after NAND flash giant SanDisk issued a Q1 warning and withdrew its full-year guidance - price pressure, soft enterprise sales, and delayed product qualifications were all blamed.
- Meanwhile, some are partly blaming yesterday's big selloff on cautious remarks from TSMC (has an estimated ~50% global foundry share) at a Credit Suisse conference. CS analyst Randy Abrams reports TSMC (NYSE:TSM) has observed "a slowdown in the past 4-5 weeks due to US$ strength impacting European and emerging market purchasing power," and that inventories "will be a few days above seasonal exiting 1Q15." Pac Crest downgraded TSMC two weeks ago on inventory concerns.
- Following an Asian trip, Susquehanna's Chris Caso has argued there isn't too much to be alarmed about, though he admits forex could be an issue. "There’s mixed signals here and there. We weren’t picking up anything that was tremendously different across the supply chain. PCs were the weakest area. That’s really not a surprise."
- RF chipmakers Skyworks (SWKS -4.6%) and Qorvo (QRVO -2.1%), among 2014's best performers, are again selling off; peer Avago is off only slightly. Also seeing further profit-taking are Ambarella (AMBA -3%), NXP (NXPI -3.6%), Freescale (FSL -2.8%), Cavium (CAVM -3.2%), and STMicroelectronics (STM -4.5%).
- Among equipment makers, Axcelis (ACLS -2.9%), Aixtron (AIXG -3.6%), Veeco (VECO -3%), and Kulicke & Soffa (KLIC -2.5%) are declining. A selloff in European equities could be affecting Aixtron, NXP/Freescale, and STMicro.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Yesterday, 12:03 PM
- Chip stocks are particularly hard-hit (SOXX -3.6%) on a rough day for tech. The Nasdaq is down 1.3%, and the S&P 0.7%. Going into today, good earnings reports and ongoing M&A activity had led the Philadelphia Semi Index to rise 10% from its Jan. 30 close; the index remains up nearly 2x from its fall 2012 lows.
- AMD (AMD -7.2%) is a major decliner following a UBS downgrade. AMD rival/GPU giant Nvidia (NVDA -5.2%) and memory giant Micron (MU -3.7%) are also selling off, as are merger partners NXP (NXPI -3.8%) and Freescale (FSL -3.4%), RF chipmakers Avago (AVGO -5.2%), Skyworks (SWKS -5.3%), and Qorvo (QRVO -7.1%), LED/RF chipmaker Cree (CREE -4.1%), and high-flying video processor developer Ambarella (AMBA -4.3%).
- Other decliners include telecom chipmakers/ARM server CPU vendors Cavium (CAVM -4.8%) and AppliedMicro (AMCC -4.4%), microcontroller vendors Atmel (ATML -3.5%), Cypress (CY -5.5%), and STMicroelectronics (STM -3.5%), voice processor developer Audience (ADNC -3.7%), analog/mixed-signal chipmakers Linear (LLTC -3.7%), Maxim (MXIM -3%), and Intersil (ISIL -3.5%), FPGA maker Lattice (LSCC -3.9%), and mixed-signal/wireless charging IC developer IDT (IDTI -5.4%).
- Chip equipment, IP, and foundry providers are also underperforming. Big decliners include ARM (ARMH -4.4%), KLA-Tencor (KLAC -4.2%), Lam Research (LRCX -5.4%), ASML (ASML -4.1%), TowerJazz (TSEM -4.3%), Mattson (MTSN -4.5%), Ultratech (UTEK -4.7%), and Tessera (TSRA -6.1%). ASML has been downgraded to Hold by Banco Santander.
- TSMC (TSM -4.6%) is among the decliners in spite of a Digitimes report stating the foundry giant's sales are expected to rise 0%-5% Q/Q in Q2 - consensus is for a 2% drop - with strong Apple A8 CPU orders offsetting soft Qualcomm Snapdragon 810 orders.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Mon, Mar. 16, 12:42 PM
- Topeka Capital has hiked its Skyworks (NASDAQ:SWKS) target by $15 to $105, while reiterating a Buy. The firm had only a $48 target on Skyworks going into last June.
- Shares are making fresh highs once again - they rallied last week on news Skyworks is joining the S&P 500. D.A. Davidson upgraded peers Avago and Qorvo to Buy this morning.
- Skyworks now trades for 20x its FY15 (ends Sep. '15) EPS consensus and 17x its FY16 EPS consensus. Estimates have been steadily rising over the last several quarters.
Mon, Mar. 9, 5:24 PM
- Skyworks (NASDAQ:SWKS) will replace PetSmart in the S&P 500 following Wednesday's close. PetSmart is about to be taken private.
- SWKS +2.1% AH to $94.09. Shares rose 1.5% in regular trading, making new highs along the way. Canaccord hiked its target by $12 to $102 earlier today, citing upbeat comments from management at last week's Mobile World Congress.
- Canaccord: "We believe Skyworks strong portfolio of integrated solutions should increase Skyworks' [addressable market] for the fast growing RFIC market and enable Skyworks to capture RF $-content share in the LTE smartphone market. In fact, we believe Skyworks' broad portfolio should enable dollar content share growth in both Apple's and Samsung's premium tier smartphones during 2015 and grow content share in the fast growing Chinese LTE smartphone market."
Fri, Feb. 27, 9:34 AM
- Resonant (NASDAQ:RESN) CEO Terry Lingren in the company's Q4 report: "We have delivered a completed duplexer design for consideration to our first customer. Our design does not meet all the specifications in the development agreement, but we believe it delivers competitive performance ... Our customer's decision whether to use our design is complex and based on a number of considerations, many of which are beyond our control."
- Resonant has an RF duplexer design partnership with Skyworks (NASDAQ:SWKS), through which Skyworks has the option to license the design in exchange for royalties.
- Lingren adds Resonant is "evaluating several single band opportunities and are in active discussions with other potential customers," and expects to announce another filter design customer in 1H15. "We also see multiple opportunities to improve upon the design of traditional SAW filters, potentially augmenting our customers capacity-constrained engineering teams."
- In 2015, the company aims to begin generating revenue, double its technical staff to 20, and and finish its tunable filter prototype design.
- Resonant's Q4 operating expenses totaled $2.2M, up for $815K a year earlier - R&D spend totaled $921K, and G&A $1.19M. The company ended Q4 with $13.8M in cash/investments, down from $15.7M at the end of Q3. It believes its has "sufficient cash to support planned operations into early 2016, even assuming no revenues."
- Shares had rallied strongly in recent months. They're now back around where they traded in early January.
- Q4 results, PR
Wed, Feb. 25, 6:19 PM
- In addition to beating FQ1 EPS estimates (while posting in-line revenue), Avago (NASDAQ:AVGO) is guiding for FQ2 revenue to be down 3% to up 1% Q/Q. That implies a range of $1.59B-$1.65B, above a $1.54B consensus.
- Driving the FQ1 EPS beat: Gross margin was 59%, up from FQ4's 58% and the year-ago period's 52%, and above guidance of 57.5% (+/- 1%). FQ2 GM guidance is at 58.5% (+/- 1%).
- Also helping EPS: Operating expenses totaled $293M, up from $142M a year ago thanks to acquisitions, but down from $303M in FQ4 thanks to cost cuts.
- As expected, strong iPhone-related sales acted as a big FQ1 tailwind: Wireless product sales (40% of total revenue) rose 6% Q/Q and 90% Y/Y. Wired infrastructure (21% of total revenue, boosted by the PLX and LSI acquisitions) fell 1% Q/Q and rose 52% Y/Y. Enterprise storage (29% of revenue, a product of the LSI acquisition) rose 5% Q/Q. Industrial/other (10% of revenue) fell 4% Q/Q and rose 21% Y/Y.
- Avago has risen to $119.03 AH, making new highs in the process. RF component rivals are ticking higher: Skyworks (NASDAQ:SWKS) +0.9% to $88.49. Qorvo (NASDAQ:QRVO) +1.1% to $67.92.
- Avago's FQ1 results, Emulex acquisition, PR
Tue, Jan. 27, 6:01 PM
- Apple suppliers Cirrus Logic (NASDAQ:CRUS), NXP (NASDAQ:NXPI), Skyworks (NASDAQ:SWKS), Qorvo (NASDAQ:QRVO), and Avago (NASDAQ:AVGO) are up AH after the tech giant blew away FQ1 estimates on the back of 74.5M iPhone sales (+46% Y/Y and above forecasts of ~66-67M). iPad sales of 21.4M (-18%) were roughly in-line
- CRUS +2.9% to $26.79. NXPI +1.5% to $79.20. SWKS +1.3% to $82.60. QRVO +1% to $74.48. AVGO +2.7% to $107.60.
- Cirrus and Qorvo report tomorrow, and NXP on Feb. 4. Skyworks posted an FQ1 beat and offered strong guidance last week.
Fri, Jan. 23, 1:03 PM
- After barely moving in AH trading yesterday in response to its FQ1 beat and strong FQ2 guidance, Skyworks (SWKS +2.3%) has risen above $81 today as a flurry of bullish analyst reactions arrive. Rivals/fellow iPhone suppliers Qorvo (QRVO +4.8%) and Avago (AVGO +1.6%) are heading in the same direction.
- Brean's Mike Burton, hiking his Skyworks target by $22 to $92: "The [FQ1] upside was predominantly driven by the Integrated Solutions segment as Apple's iPhone 6/6+ ramped ... we believe LTE growth in China and several new model ramps (Samsung Galaxy S6 amongst others to be unveiled in Barcelona) coupled with Skyworks Solutions less seasonal Broad Markets business is driving the better-than-seasonal guidance."
- Burton also thinks Skyworks is on its way to achieving a 50% gross margin (up from FQ1's 46.7%), and notes inventory days (58) were down by 15 Y/Y.
- Canaccord's Mike Walkley: "We believe Skyworks' diverse analog portfolio is enabling content share gains with its smartphone customers. Further, we anticipate Skyworks' share gains in markets such as WiFi 802.11ac, wireless infrastructure, and the IoT market are also driving strong growth trends." His FY16 (ends Sep. '16) EPS estimate has been hiked by $0.66 to $5.89.
- On the CC (transcript), CEO David Aldrich noted Skyworks' non-mobile design wins include a GM telematics platform, Cisco home gateways, ZigBee connectivity modules for Philips/LG smart light bulbs, Amazon's Echo and Fire TV devices, and a DirecTV set-top. China's Xiaomi has joined Apple and Samsung as a major mobile client.
- Qorvo reports on Jan. 28.
Thu, Jan. 22, 4:29 PM
- Skyworks (NASDAQ:SWKS) expects FQ2 revenue of $750M (+56% Y/Y) and EPS of $1.12, above a consensus of $708.7M and $1.04. With shares up 28% since the Nov. 6 FQ4 report and peer Avago having posted strong numbers in December, expectations were high.
- FQ1 gross margin rose 230 bps Y/Y to 46.7%. Excluding $1.3M in charges, GAAP opex rose 18% to $124.9M (compares with 59% revenue growth).
- SWKS +0.5% AH. Shares rose 2.6% in regular trading.
- FQ1 results, PR.
Thu, Jan. 22, 4:18 PM| 8 Comments
Wed, Jan. 21, 5:35 PM
Tue, Jan. 13, 1:04 PM
- Believing "strong dynamics for the RF industry will continue in 2015," BMO's Tim Long has upgraded Skyworks (SWKS +2.5%) and newly-merged Qorvo (QRVO +0.4%) to Outperform, while respectively assigning $85 and $80 targets. His FY15 EPS estimates are at $4.59 and $3.57.
- Long's expected catalysts: 1) The iPhone 6S could feature a "bump in RF content" relative to the iPhone 6. 2) Samsung "may start to increase RF content in some of its higher-end models as management looks to reduce the number of phones in its portfolio." 3) China Unicom/Telecom could "implement higher RF content in five-mode LTE phones during the 4G push this year, similar to what happened at China Mobile in 2014."
- Skyworks is rallying, while Qorvo is up modestly after previously posting bigger gains. Oppenheimer and Northland have launched coverage on Qorvo with neutral ratings the latest in a line of sell-side firms to restart coverage following the RF Micro/TriQuint merger.
- Previously: Rosenblatt sees Skyworks benefiting from Chinese 4G demand
Fri, Jan. 9, 4:32 PM
- Skyworks' (NASDAQ:SWKS) FQ1 report will arrive after the close on Thursday, Jan. 22. CC at 5PM ET.
- Thanks to strong demand from Apple and Chinese smartphone OEMs, consensus is for revenue of $772.5M (+52.9% Y/Y) and EPS of $1.09 (+63%). Shares +19% since the RF component giant posted FQ4 results and offered above-consensus guidance on Nov. 6.
Thu, Jan. 8, 4:18 PM
- Hit hard on Tuesday amid a market rout, chip stocks have more than made up for it today: The Philadelphia Semi Index (SOXX +3%) handily exceeded the Nasdaq's 1.8% gain. The index posted a 1% gain yesterday.
- Micron (MU +4.9%) has been one of the standouts, more than recouping yesterday's post-earnings losses. Ditto Freescale (FSL +9.2%), which benefited from a Deutsche target hike, and Marvell, which got a lift from an MKM note. Others: NVDA +3.8%. NXPI +4.7%. AVGO +5%. SWKS +4.5%. CY +6.1%. CODE +5.9%. CAVM +5.2%. SWKS +4.5%. SLAB +4.5%. KLIC +3.8%. SMTC +3.6%. ATML +3.7%. FCS +4.2%. TSEM +4.2%.
- As is their custom, both chipmakers and their clients have been unveiling plenty of new products at CES.
- ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Tue, Jan. 6, 1:36 PM
- Up 30% in 2014, the Philadelphia Semi Index (SOXX -2.2%) has fallen over 4% thus far in 2015. Today's decline comes as the Nasdaq drops 1.6%.
- Many names are posting 3%+ losses. SWKS -4.2%. QRVO -5.8%. AMAT -3.4%. KLAC -3.1%. SYNA -5.4%. IPHI -9%. ARMH -5.4%. SIMO -4.5%. MCRL -3.9%. AMCC -3.9%. CODE -5.1%. CY -4.6%. QUIK -7.9%.
- This morning, Gartner estimated global chip sales rose 7.9% in 2014 to $339.8B, a little less than the 9.4% recently estimated by IHS. Sell-side firms have forecast industry growth will fall to the ~5% range in 2015.
- Gartner thinks memory sales rose 16.9%, fueled by a 31.7% increase in DRAM sales. All other chip markets rose by 5.4%, a marked improvement from 2013's 0.8%. Intel (15% share) and Samsung (10.4%) claimed over a quarter of industry sales between them. Qualcomm (5.6%), Micron (4.9%), and SK Hynix (4.7%) rounded out the top-5.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Dec. 31, 2014, 10:12 AM
- Citing strong industry demand trends and a belief RF component makers are "poised for record results" in Q4 (and possibly Q1), D.A. Davidson has hiked its Skyworks (SWKS +1.7%) by $10 to $85, while reiterating a Buy.
- The target hike comes two days after Needham downgraded Skyworks and several other chipmakers, while generally citing valuation. Rosenblatt argued last week Skyworks should benefit from rising 4G phone demand, given its higher power amplifier share within the market.
- Previous: Avago upbeat about Q4/Q1 mobile RF component demand
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