Thursday, April 29, 2010

TriQuint Semiconductor (TQNT) Earnings Solid, if not Spectacular - Guidance Raised for Q2

More of the same from TriQuint Semiconductor (TQNT) in last night's earnings... a solid showing, beating analysts by a penny, and then raising guidance by another 2 cents for the next quarter, along with a revenue bump. Keep in mind the company raised guidance mid March. I would prefer if this company and its brothers in arms did a 3:1 reverse split since it is hard to create meaningful earnings PER share with so many shares outstanding (issued in the halcyon days of a decade ago). Thus, while 2 cents extra does not sound impressive - considering the number of shares outstanding, it actually takes a lot of horsepower to generate.

Technically the stock is fine, so we'll see what the reaction is today. First support is $7.75ish and second is $7.35 to $7.40. We last sold some 2 weeks ago around $7.90... of course selling almost any stock has been a curse in this market.

A quick flavor on earnings (full report here)
  • Wireless communications products supplier TriQuint Semiconductor Inc's (TQNT) first-quarter profit edged past market expectations, helped by a rebound in its networks market and strong demand for smartphones, and the company forecast second-quarter results above estimates.
  • The company forecast second-quarter earnings of 15 cents a share, excluding items, on revenue of $200 million to $210 million. Analysts were looking for second-quarter earnings of 13 cents a share, before items, on revenue of $189 million, according to Thomson Reuters I/B/E/S.
  • For the first quarter, TriQuint earned $13.7 million, or 9 cents a share, compared with a loss of $15.6 million, or 11 cents a share, a year ago. Excluding items, the company, which supplies equipment to the latest version of Apple Inc's (AAPL) iPhone, earned 12 cents a share, while analysts were expecting 11 cents a share.
  • Revenue rose 52 percent to $180.8 million, above analysts' expectations of $175 million. Revenue from its networks market grew 42 percent.
Gross margins improved significantly:
  • Gross margin for the first quarter of 2010 was 37.9%, up from 19.6% in the first quarter of 2009. Gross margin increased due to an improved product sales mix and solid factory utilization.
[Feb 26, 2009: TriQuint Semiconductor - Solid Earnings, Guidance Good]
[Oct 21, 2009: TriQuint Semiconductor Destroyed in After Hours Trading]

Long TriQuint Semiconductor in fund; no personal position


Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012