MRTX - Mirati Therapeutics, Inc.
Chart Events
Commodity Channel Index
Performance Outlook
- Short Term2W - 6W
- Mid Term6W - 9M
- Long Term9M+
| Previous Close | 121.61 |
| Open | 120.56 |
| Bid | 0.00 x 900 |
| Ask | 0.00 x 900 |
| Day's Range | 117.68 - 122.64 |
| 52 Week Range | 66.01 - 132.59 |
| Volume | 418,572 |
| Avg. Volume | 443,996 |
| Market Cap | 5.294B |
| Beta (5Y Monthly) | 1.80 |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | -6.57 |
| Earnings Date | Aug 03, 2020 - Aug 07, 2020 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | 125.00 |
Fair Value
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Qorvo® Announces Fiscal 2021 First Quarter Financial Results
GREENSBORO, N.C., July 29, 2020 (GLOBE NEWSWIRE) -- Qorvo® (Nasdaq:QRVO), a leading provider of innovative RF solutions that connect the world, today announced financial results for the Company’s fiscal 2021 first quarter, ended June 27, 2020. On a GAAP basis, revenue for Qorvo’s fiscal 2021 first quarter was $787 million, gross margin was 41.4%, operating income was $93 million and diluted earnings per share was $0.83. On a non-GAAP basis, gross margin was 48.6%, operating income was $204 million and diluted earnings per share was $1.50.Bob Bruggeworth, president and chief executive officer of Qorvo, said, “Qorvo delivered an exceptional June quarter, with revenue and EPS well above guidance. The Qorvo team continues to operate very well in a challenging environment. We are supporting leading customers with best-in-class products, and our technology investments are aligned with long-term market drivers in 5G handsets and infrastructure, defense, Wi-Fi 6 and IoT.”Strategic Highlights * Achieved record infrastructure revenue supporting 5G base station deployments and sampled GaN power amplifiers for upcoming U.S. C-band spectrum allocations * Ramped programmable power management solution and Wi-Fi 6 FEM for a leading drone manufacturer, enabling longer flight time, greater range and larger payload * Awarded design wins for integrated GaN multi-chip broadband Tx/Rx module and 50-watt GaN power amplifier for defense radar programs * Experienced continued strong demand for Wi-Fi 6 products, including FEMs and BAW filters, driven by work-from-home trends * Commenced shipments of integrated ultra-low power, multi-protocol Zigbee, BLE and Thread IoT solution supporting one of the largest providers of smart home infrastructure solutions * Requested an emergency use authorization (EUA) from the FDA for COVID-19 antibody testing using Qorvo Biotechnologies’ platform featuring a unique sensor technology * Ramped innovative antennaplexer solution addressing antenna network complexity and optimizing system efficiency for upcoming foldable smartphone * Captured complete main path (highly integrated low-band, mid-/high-band and ultra-high-band modules) at leading Android® smartphone manufacturers for upcoming 5G product launches * Commenced high volume UWB shipments enabling superior accuracy and reliability in spatial awareness applications, including contact tracing/social distancing, for numerous customers globally * Increased mobile power management shipments, driven by adoption of 4G/5G dual transmitFinancial Commentary and OutlookMark Murphy, chief financial officer of Qorvo, said, “The rollout of 5G and Qorvo’s operational performance helped drive a June quarter well above our expectations. During the September quarter, we expect robust end market demand and ongoing operational improvements to drive healthy revenue growth, gross margin expansion to approximately 50%, and continued strong free cash flow.”Qorvo currently believes the demand environment in its end markets supports the following expectations for the September 2020 quarter: * Quarterly revenue in the range of $925 million to $955 million * Non-GAAP gross margin of approximately 50% * Non-GAAP diluted earnings per share of $1.90 at the midpoint of guidance * Note: fiscal year 2021 is a 53-week fiscal year, and the September quarter is a 14-week fiscal quarterQorvo’s actual quarterly results may differ from these expectations and projections, and such differences may be material.Selected Financial InformationThe following tables set forth selected GAAP and non-GAAP financial information for Qorvo for the periods indicated. See the more detailed financial information for Qorvo, including reconciliations of GAAP and non-GAAP financial information, attached. SELECTED GAAP RESULTS (Unaudited) (In millions, except for percentages and EPS) For the quarter ended June 27, 2020 For the quarter ended March 28, 2020 Change vs. Q4 FY 2020 Revenue$787.5 $787.8 $(0.3) Gross profit$325.8 $335.8 $(10.0) Gross margin 41.4% 42.6% (1.2)ppt Operating expenses$233.1 $233.6 $(0.5) Operating income$92.7 $102.2 $(9.5) Net income$96.9 $50.4 $46.5 Weighted average diluted shares 116.8 117.8 (1.0) Diluted EPS$0.83 $0.43 $0.40 SELECTED NON-GAAP RESULTS1 (Unaudited) (In millions, except for percentages and EPS) For the quarter ended June 27, 2020 For the quarter ended March 28, 2020 Change vs. Q4 FY 2020 Gross profit$382.5 $390.9 $(8.4) Gross margin 48.6% 49.6% (1.0)ppt Operating expenses$178.7 $181.0 $(2.3) Operating income$203.7 $209.9 $(6.2) Net income$175.1 $185.3 $(10.2) Weighted average diluted shares 116.8 117.8 (1.0) Diluted EPS$1.50 $1.57 $(0.07) SELECTED GAAP RESULTS (Unaudited) (In millions, except for percentages and EPS) For the quarter ended June 27, 2020 For the quarter ended June 29, 2019 Change vs. Q1 FY 2020 Revenue$787.5 $775.6 $11.9 Gross profit$325.8 $294.3 $31.5 Gross margin 41.4% 37.9% 3.5 ppt Operating expenses$233.1 $239.1 $(6.0) Operating income$92.7 $55.2 $37.5 Net income$96.9 $39.5 $57.4 Weighted average diluted shares 116.8 121.1 (4.3) Diluted EPS$0.83 $0.33 $0.50 SELECTED NON-GAAP RESULTS1 (Unaudited) (In millions, except for percentages and EPS) For the quarter ended June 27, 2020 For the quarter ended June 29, 2019 Change vs. Q1 FY 2020 Gross profit$382.5 $358.0 $24.5 Gross margin 48.6% 46.2% 2.4 ppt Operating expenses$178.7 $167.9 $10.8 Operating income$203.7 $190.1 $13.6 Net income$175.1 $165.3 $9.8 Weighted average diluted shares 116.8 121.1 (4.3) Diluted EPS$1.50 $1.36 $0.14 1Excludes stock-based compensation expense, amortization of intangible assets, restructuring related charges, acquisition and integration related costs, accelerated depreciation, loss (gain) on assets, start-up costs, gain (loss) on investments, other (income) expense and an adjustment of income taxes.Non-GAAP Financial MeasuresIn addition to disclosing financial results calculated in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this earnings release contains some or all of the following non-GAAP financial measures: (i) non-GAAP revenue, (ii) non-GAAP gross profit and gross margin, (iii) non-GAAP operating income and operating margin, (iv) non-GAAP net income, (v) non-GAAP net income per diluted share, (vi) non-GAAP operating expenses (research and development; selling, general and administrative), (vii) free cash flow, (viii) EBITDA, (ix) non-GAAP return on invested capital (ROIC), and (x) net debt or positive net cash. Each of these non-GAAP financial measures is either adjusted from GAAP results to exclude certain expenses or derived from multiple GAAP measures, which are outlined in the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables, attached, and the “Additional Selected Non-GAAP Financial Measures and Reconciliations” tables, attached.In managing Qorvo's business on a consolidated basis, management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures. In developing and monitoring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce costs with the goal of increasing gross margin and operating margin. In addition, management relies upon these non-GAAP financial measures to assess whether research and development efforts are at an appropriate level, and when making decisions about product spending, administrative budgets, and other operating expenses. Also, we believe that non-GAAP financial measures provide useful supplemental information to investors and enable investors to analyze the results of operations in the same way as management. We have chosen to provide this supplemental information to enable investors to perform additional comparisons of our operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to operations, certain non-cash expenses and stock-based compensation expense, which may obscure trends in Qorvo's underlying performance.We believe that these non-GAAP financial measures offer an additional view of Qorvo's operations that, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of Qorvo's results of operations and the factors and trends affecting Qorvo's business. However, these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.Our rationale for using these non-GAAP financial measures, as well as their impact on the presentation of Qorvo's operations, are outlined below:Non-GAAP gross profit and gross margin. Non-GAAP gross profit and gross margin exclude stock-based compensation expense, amortization of intangible assets, accelerated depreciation, restructuring related charges and certain non-cash expenses. We believe that exclusion of these costs in presenting non-GAAP gross profit and gross margin gives management and investors a more effective means of evaluating Qorvo's historical performance and projected costs and the potential for realizing cost efficiencies. We believe that the majority of Qorvo's purchased intangibles are not relevant to analyzing current operations because they generally represent costs incurred by the acquired company to build value prior to acquisition, and thus are effectively part of transaction costs rather than ongoing costs of operating Qorvo's business. In this regard, we note that (i) once the intangibles are fully amortized, the intangibles will not be replaced with cash costs and therefore, the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time, and (ii) although we set the amortization expense based on useful life of the various assets at the time of the transaction, we cannot influence the timing and amount of the future amortization expense recognition once the lives are established. Similarly, we believe that presentation of non-GAAP gross profit and gross margin and other non-GAAP financial measures that exclude the impact of stock-based compensation expense assists management and investors in evaluating the period-over-period performance of Qorvo's ongoing operations because (i) the expenses are non-cash in nature, and (ii) although the size of the grants is within our control, the amount of expense varies depending on factors such as short-term fluctuations in stock price volatility and prevailing interest rates, which can be unrelated to the operational performance of Qorvo during the period in which the expense is incurred and generally are outside the control of management. Moreover, we believe that the exclusion of stock-based compensation expense in presenting non-GAAP gross profit and gross margin and other non-GAAP financial measures is useful to investors to understand the impact of the expensing of stock-based compensation to Qorvo's gross profit and gross margins and other financial measures in comparison to prior periods. We also believe that the adjustments to profit and margin related to accelerated depreciation, restructuring related charges and certain non-cash expenses do not constitute part of Qorvo's ongoing operations and therefore the exclusion of these items provides management and investors with better visibility into the actual revenue and actual costs required to generate revenues over time and gives management and investors a more effective means of evaluating our historical and projected performance. We believe disclosure of non-GAAP gross profit and gross margin has economic substance because the excluded expenses do not represent continuing cash expenditures and, as described above, we have little control over the timing and amount of the expenses in question.Non-GAAP operating income and operating margin. Non-GAAP operating income and operating margin exclude stock-based compensation expense, amortization of intangible assets, restructuring related charges, acquisition and integration related costs, loss (gain) on assets, accelerated depreciation, start-up costs and certain non-cash expenses. We believe that presentation of a measure of operating income and operating margin that excludes amortization of intangible assets and stock-based compensation expense is useful to both management and investors for the same reasons as described above with respect to our use of non-GAAP gross profit and gross margin. We believe that restructuring related charges, acquisition and integration related costs, loss (gain) on assets, accelerated depreciation, start-up costs and certain non-cash expenses do not constitute part of Qorvo's ongoing operations and therefore, the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time and gives management and investors a more effective means of evaluating our historical and projected performance. We believe disclosure of non-GAAP operating income and operating margin has economic substance because the excluded expenses are either unrelated to ongoing operations or do not represent current cash expenditures.Non-GAAP net income and non-GAAP net income per diluted share. Non-GAAP net income and non-GAAP net income per diluted share exclude the effects of stock-based compensation expense, amortization of intangible assets, restructuring related charges, acquisition and integration related costs, loss (gain) on assets, accelerated depreciation, start-up costs, certain non-cash expenses, (gain) loss on investments, other (income) expense and also reflect an adjustment of income taxes. The income tax adjustment primarily represents the use of research and development tax credit carryforwards, deferred tax expense (benefit) items not affecting taxes payable, adjustments related to the deemed and actual repatriation of historical foreign earnings, non-cash expense (benefit) related to uncertain tax positions and other items unrelated to the current fiscal year or that are not indicative of our ongoing business operations. We believe that presentation of measures of net income and net income per diluted share that exclude these items is useful to both management and investors for the reasons described above with respect to non-GAAP gross profit and gross margin and non-GAAP operating income and operating margin. We believe disclosure of non-GAAP net income and non-GAAP net income per diluted share has economic substance because the excluded expenses are either unrelated to ongoing operations or do not represent current cash expenditures.Non-GAAP research and development and selling, general and administrative expenses. Non-GAAP research and development and selling, general and administrative expenses exclude stock-based compensation expense, amortization of intangible assets and certain non-cash expenses (primarily acquisition and integration related costs). We believe that presentation of measures of these operating expenses that exclude amortization of intangible assets and stock-based compensation expense is useful to both management and investors for the same reasons as described above with respect to our use of non-GAAP gross profit and gross margin. We believe that acquisition and integration related costs and certain non-cash expenses do not constitute part of Qorvo's ongoing operations and therefore, the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time and gives management and investors a more effective means of evaluating our historical and projected performance. We believe disclosure of these non-GAAP operating expenses has economic substance because the excluded expenses are either unrelated to ongoing operations or do not represent current cash expenditures.Free cash flow. Qorvo defines free cash flow as net cash provided by operating activities during the period minus property and equipment expenditures made during the period. We use free cash flow as a supplemental financial measure in our evaluation of liquidity and financial strength. Management believes that this measure is useful as an indicator of our ability to service our debt, meet other payment obligations and make strategic investments. Free cash flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our entire statement of cash flows.EBITDA. Qorvo defines EBITDA as earnings before interest expense and interest income, income tax expense (benefit), depreciation and intangible amortization. Management believes that this measure is useful to evaluate our ongoing operations and as a general indicator of our operating cash flow (in conjunction with a cash flow statement which also includes among other items, changes in working capital and the effect of non-cash charges).Non-GAAP ROIC. Return on invested capital (ROIC) is a non-GAAP financial measure that management believes provides useful supplemental information for management and the investor by measuring the effectiveness of our operations' use of invested capital to generate profits. We use ROIC to track how much value we are creating for our shareholders. Non-GAAP ROIC is calculated by dividing annualized non-GAAP operating income, net of an adjustment for income taxes (as described above), by average invested capital. Average invested capital is calculated by subtracting the average of the beginning balance and the ending balance of current liabilities (excluding the current portion of long-term debt and other short-term financings) from the average of the beginning balance and the ending balance of net accounts receivable, inventories, other current assets, net property and equipment and a cash amount equal to seven days of quarterly revenue.Net debt or positive net cash. Net debt or positive net cash is defined as unrestricted cash, cash equivalents and short-term investments minus any borrowings under our credit facility and the principal balance of our senior unsecured notes. Management believes that net debt or positive net cash provides useful information regarding the level of Qorvo's indebtedness by reflecting cash and investments that could be used to repay debt.Forward-looking non-GAAP measures. Our earnings release contains forward-looking gross margin, income tax rate and diluted earnings per share. We provide these non-GAAP measures to investors on a prospective basis for the same reasons (set forth above) that we provide them to investors on a historical basis. We are unable to provide a reconciliation of the forward-looking non-GAAP financial measures to the most directly comparable forward-looking GAAP financial measures without unreasonable effort due to variability and difficulty in making accurate projections for items that would be required to be included in the GAAP measures, such as stock-based compensation, acquisition and integration related costs, restructuring related charges, asset impairments and the provision for income taxes. We believe such reconciliations would imply a degree of precision that would be confusing or misleading to investors.Limitations of non-GAAP financial measures. The primary material limitations associated with the use of non-GAAP financial measures as an analytical tool compared to the most directly comparable GAAP financial measures are these non-GAAP financial measures (i) may not be comparable to similarly titled measures used by other companies in our industry, and (ii) exclude financial information that some may consider important in evaluating our performance, thus limiting their usefulness as a comparative tool. We compensate for these limitations by providing full disclosure of the differences between these non-GAAP financial measures and the corresponding GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the corresponding GAAP financial measures, to enable investors to perform their own analysis of our gross profit and gross margin, operating expenses, operating income, net income, net income per diluted share and net cash provided by operating activities. We further compensate for the limitations of our use of non-GAAP financial measures by presenting the corresponding GAAP measures more prominently.Qorvo will conduct a conference call at 5:00 p.m. ET today to discuss today’s press release. The conference call will be broadcast live over the Internet and can be accessed by any interested party at http://www.qorvo.com (under “Investors”). A telephone playback of the conference call will be available approximately two hours after the call’s completion and can be accessed by dialing 719-457-0820 and using the passcode 2952909. The playback will be available through the close of business August 5, 2020.About Qorvo Qorvo (Nasdaq:QRVO) makes a better world possible by providing innovative Radio Frequency (RF) solutions at the center of connectivity. We combine product and technology leadership, systems-level expertise and global manufacturing scale to quickly solve our customers’ most complex technical challenges. Qorvo serves diverse high-growth segments of large global markets, including advanced wireless devices, wired and wireless networks and defense radar and communications. We also leverage unique competitive strengths to advance 5G networks, cloud computing, the Internet of Things, and other emerging applications that expand the global framework interconnecting people, places and things. Visit www.qorvo.com to learn how Qorvo connects the world.Qorvo is a registered trademark of Qorvo, Inc. in the U.S. and in other countries. All other trademarks are the property of their respective owners.This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions, and are not historical facts and typically are identified by use of terms such as "may," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue" and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements included herein represent management's current judgment and expectations, but our actual results, events and performance could differ materially from those expressed or implied by forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as is required under U.S. federal securities laws. Our business is subject to numerous risks and uncertainties, including those relating to fluctuations in our operating results; our substantial dependence on developing new products and achieving design wins; our dependence on a few large customers for a substantial portion of our revenue; a loss of revenue if contracts with the United States government or defense and aerospace contractors are canceled or delayed or if defense spending is reduced; the COVID-19 outbreak, which has and will likely continue to negatively impact the global economy and disrupt normal business activities, and which may have an adverse effect on our results of operations; our dependence on third parties; risks related to sales through distributors; risks associated with the operation of our manufacturing facilities; business disruptions; poor manufacturing yields; increased inventory risks and costs due to timing of customer forecasts; our inability to effectively manage or maintain evolving relationships with platform providers; risks from international sales and operations; economic regulation in China; changes in government trade policies, including imposition of tariffs and export restrictions; our ability to implement innovative technologies; underutilization of manufacturing facilities as a result of industry overcapacity; we may not be able to borrow funds under our credit facility or secure future financing; we may not be able to generate sufficient cash to service all of our debt; restrictions imposed by the agreements governing our debt; volatility in the price of our common stock; damage to our reputation or brand; fluctuations in the amount and frequency of our stock repurchases; our recent and future acquisitions and other strategic investments could fail to achieve financial or strategic objectives; our ability to attract, retain and motivate key employees; our reliance on our intellectual property portfolio; claims of infringement of third-party intellectual property rights; security breaches and other similar disruptions compromising our information; theft, loss or misuse of personal data by or about our employees, customers or third parties; warranty claims, product recalls and product liability; and risks associated with environmental, health and safety regulations and climate change. Many of the foregoing risks and uncertainties are, and will continue to be, exacerbated by the COVID-19 outbreak and any worsening of the global business and economic environment as a result. These and other risks and uncertainties, which are described in more detail in Qorvo's most recent Annual Report on Form 10-K and in other reports and statements filed with the Securities and Exchange Commission, could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.Financial Tables to Follow QORVO, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Three Months Ended June 27, 2020 June 29, 2019 Revenue$787,451 $775,598 Costs and expenses: Cost of goods sold461,662 481,309 Research and development130,071 118,920 Selling, general and administrative86,604 88,979 Other operating expense16,402 31,164 Total costs and expenses694,739 720,372 Operating income92,712 55,226 Interest expense(18,849) (11,864) Other income23,137 1,835 Income before income taxes97,000 45,197 Income tax expense(78) (5,656) Net income$96,922 $39,541 Net income per share, diluted$0.83 $0.33 Weighted average outstanding diluted shares116,751 121,123 QORVO, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except per share data) (Unaudited) Three Months Ended June 27, 2020 March 28, 2020 June 29, 2019 GAAP operating income$92,712 $102,154 $55,226 Stock-based compensation expense21,859 13,768 24,953 Amortization of intangible assets71,944 69,183 58,182 Restructuring related charges938 3,958 8,031 Acquisition and integration related costs12,663 23,986 23,130 Accelerated depreciation— 221 15,938 Loss (gain) on assets, start-up costs and other non-cash expenses3,622 (3,326) 4,599 Non-GAAP operating income$203,738 $209,944 $190,059 GAAP net income$96,922 $50,390 $39,541 Stock-based compensation expense21,859 13,768 24,953 Amortization of intangible assets71,944 69,183 58,182 Restructuring related charges938 3,958 8,031 Acquisition and integration related costs12,663 23,986 23,130 Accelerated depreciation— 221 15,938 Loss (gain) on assets, start-up costs and other non-cash expenses3,622 (3,326) 4,599 (Gain) loss on investments(14,617) 18,789 (661) Other (income) expense(3,039) 3,765 661 Adjustment of income taxes(15,212) 4,607 (9,105) Non-GAAP net income$175,080 $185,341 $165,269 GAAP weighted average outstanding diluted shares116,751 117,757 121,123 Dilutive stock-based awards— — — Non-GAAP weighted average outstanding diluted shares116,751 117,757 121,123 Non-GAAP net income per share, diluted$1.50 $1.57 $1.36 QORVO, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) Three Months Ended (in thousands, except percentages)June 27, 2020 March 28, 2020 June 29, 2019 GAAP gross profit/margin$325,789 41.4% $335,781 42.6% $294,289 37.9% Amortization of intangible assets51,945 6.6% 49,866 6.3% 40,763 5.3% Restructuring related charges— —% 2,058 0.3% 1,836 0.2% Stock-based compensation expense4,616 0.6% 2,571 0.3% 3,041 0.4% Accelerated depreciation— —% 221 —% 15,938 2.1% Other non-cash expenses125 —% 408 0.1% 2,089 0.3% Non-GAAP gross profit/margin$382,475 48.6% $390,905 49.6% $357,956 46.2% Three Months Ended Non-GAAP Operating IncomeJune 27, 2020 (as a percentage of sales) GAAP operating income11.8% Stock-based compensation expense2.8% Amortization of intangible assets9.1% Restructuring related charges0.1% Acquisition and integration related costs1.6% Loss on assets, start-up costs and other non-cash expenses0.5% Non-GAAP operating income25.9% Three Months Ended Free Cash Flow (1)June 27, 2020 (in millions) Net cash provided by operating activities$214.3 Purchases of property and equipment(29.9) Free cash flow$184.4 (1) Free Cash Flow is calculated as net cash provided by operating activities minus property and equipment expenditures.QORVO, INC. AND SUBSIDIARIES ADDITIONAL SELECTED NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (In thousands) (Unaudited) Three Months Ended June 27, 2020 March 28, 2020 June 29, 2019 GAAP research and development expense$130,071 $127,029 $118,920 Less: Stock-based compensation expense6,964 6,242 6,063 Other non-cash expenses526 482 487 Non-GAAP research and development expense$122,581 $120,305 $112,370 Three Months Ended June 27, 2020 March 28, 2020 June 29, 2019 GAAP selling, general and administrative expense$86,604 $85,111 $88,979 Less: Stock-based compensation expense10,277 4,955 15,849 Amortization of intangible assets19,999 19,318 17,419 Other non-cash expenses173 182 185 Non-GAAP selling, general and administrative expense$56,155 $60,656 $55,526 QORVO, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) June 27, 2020 March 28, 2020 ASSETS Current assets: Cash and cash equivalents$1,136,302 $714,939 Accounts receivable, net325,993 367,172 Inventories523,690 517,198 Other current assets93,344 91,193 Total current assets2,079,329 1,690,502 Property and equipment, net1,235,676 1,259,203 Goodwill2,615,178 2,614,274 Intangible assets, net738,346 808,892 Long-term investments36,921 22,515 Other non-current assets177,236 165,296 Total assets$6,882,686 $6,560,682 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued liabilities$418,258 $464,755 Other current liabilities91,074 74,248 Total current liabilities509,332 539,003 Long-term debt1,869,502 1,567,231 Other long-term liabilities152,607 161,783 Total liabilities2,531,441 2,268,017 Stockholders’ equity4,351,245 4,292,665 Total liabilities and stockholders’ equity$6,882,686 $6,560,682 At Qorvo® Doug DeLieto VP, Investor Relations 1.336.678.7968
- TipRanks
Earnings: 3 “Strong Buy” Stocks to Watch This Evening
Earnings season is in full swing, and investors are waiting – eagerly – for the results. So far, the first 26% of companies to report results have showed a 4 to 1 split in favor of positive earnings surprises, beating the forecasts. It’s a good result, but only partially a result of good performance. The bar was set low for Q2, especially after Q1’s grim results. 1H20, encompassing the coronavirus crisis and the associated economic shutdowns, saw GDP contract dramatically, and earnings and revenues – in absolute numbers – have reflected that.One measure of the damage that coronavirus did is the aggregate decline in earnings year-over-year. Looking at S&P 500 companies, that figure is 42%. If the trend holds, it will make Q2 2020 the worst since the 69% decline in Q4 2008.But not every company is putting lipstick on a pig. Three Big Techs are reporting this evening, and early analyst reports have set a mood of guarded optimism. Using TipRanks database, we’ve pulled up the details. Here is what to expect.Facebook, Inc. (FB)A range of notable names are lined up to report results this evening. One worth watching is social media giant Facebook. The stakes are high for the company, as its stock has been soaring nearly 60% since March’s novel coronavirus selloff. But it didn't come easily. The company faced serious inquiry into the platform’s practices regarding hate speech – which brings us back to questions of corporate censorship which always seem to dog the company – and potentially hundreds of advertisers are threatening to boycott the company. This comes just as Mr. Zuckerberg is being summoned before Congress again.On a positive note, Facebook saw gains in both Monthly Average Users and Average Revenue per User, two key metrics in measuring a social platform’s performance. The social lockdowns of the first half of the year kept people at home – and many turned to Facebook for solace and connection. The result was greater traffic, and more ad clicks.And that has Wall Street expecting year-over-year gains for the social media giant. Revenues are expected to grow 3%, to $16.9 billion, while EPS is expected at $1.39, up an impressive 53% from last year. 5-star analyst Lloyd Walmsley, of Deutsche Bank, takes a favorable view of Facebook’s near- and mid-term prospects. He writes, “Attention around FB has primarily been related to the social unrest in June and boycott in July and how it may impact 2Q results as well as the outlook / tone on the Facebook call. We trim our estimates but still remain above-consensus for Facebook and view the shares favorably positioned for the second half.”Regarding advertiser boycotts, Walmsley believes that these will more likely than not turn out to be a blip: “While we do recognize that certain national brand advertisers are staying off FB with medium- or longer-term intentions, we have heard in checks that advertisers heavily dependent on FB to reach certain demographics, seem to have no choice but to continue their ad spend on the platform.”In line with these comments, Walmsley rates FB shares a Buy, with a $275 price target representing a 18% upside potential in the coming year. (To watch Walmsley’s track record, click here)The conventional wisdom agrees that Facebook shares are Buying proposition. FB has an analyst consensus rating of Strong Buy, based on 30 Buys against just 4 Holds. The stock is selling for $231.55, and the average price target, $259.40, suggests an upside potential of 12% from that level. (See Facebook stock analysis on TipRanks)PayPal Holdings, Inc. (PYPL)Next on our list, PayPal, had an obvious path to succeed during the corona crisis: when life moved online during the shutdown policies, the major online payment processor saw business boom. PYPL shares rose steeply during the pandemic period, in sharp contrast to the general market turndown, and outperformed the market by a wide margin. PYPL is up an impressive 42% since the February/March market crash, compared to the S&P 500 which is down a net of 4.9% over the same time frame.During the first quarter, which saw the strongest shut-down measures and greatest fears regarding the pandemic, PayPal did see earnings contract. EPS fell from Q4’s 67 cents per share to 44 cents. But the Q2 forecast is looking better; analyst estimates predict a rise back to 61 cents per share. At the top line, the expected revenue of $4.99 billion should represent 16% growth year-over-year. The big metric, however, will be in the total payment volume, a key measure of the company’s business performance: analysts expect it to reach $210 billion, up 10% from Q1, and 22% year-over-year.Writing for Piper Sandler, 4-star analyst Christopher Donat initiates coverage of PYPL shares with an unequivocal bullish tone: “We view PayPal as one of the best-positioned companies to take advantage of changes in consumer purchasing behavior due to the pandemic. We would encourage investors to build or add to positions in PYPL, especially in any future pandemic-related market pullbacks. We expect PayPal to be one of the better revenue growth stories in the payments sector in coming quarters.”Donat’s rating, of course, is a Buy, and his $210 price target implies a one-year upside of 15%. (To watch Donat’s track record, click here)The Strong Buy analyst consensus rating on PayPal is based on 33 reviews, including 27 Buys and 6 Holds. The shares have appreciated recently, and the $181.80 trading price is pushing up to the average target of $184.14. (See PayPal’s stock analysis on TipRanks)Qorvo, Inc. (QRVO)Last on our list today is Qorvo, a semiconductor chip maker with a solid reputation for quality integrated circuits in the networking communications niche. The company’s products are used in PCs, laptops, smartphones, and tablets to enable wireless connections, and are also found in older hardware such as cordless phones and industrial radios.The essential nature of Qorvo’s niche has insulated the company, and shares recovered from the market crash well. QRVO is currently trading back at levels seen in early February. And, despite a sequential drop in EPS for Q1, Qorvo reported an earnings beat in the last quarter; the EPS of $1.46 beat the forecast by 24%. The calendar first quarter typically has Qorvo’s lowest EPS of the year, so it’s important to note that Q1 2020 showed a 28% gain year-over-year.Looking ahead to tonight’s calendar Q2 release, analysts are less sanguine. The company faces headwinds from a series of bottlenecks related to the pandemic: manufacturing slowdowns, supply and distribution chain disruptions, and lower sales. EPS is expected to come in at 96 cents. On a positive note, the company is well positioned to benefit from the shift to wifi 6 for IoT apps, and the shift to 5G which will require new modem chips.Rajvindra Gill, from Needham, sees those last positives as overbalancing the headwinds in the long term. He writes, “We view QRVO as a major beneficiary of the expected upgrade cycle at Apple and Samsung with 5G phones. Although we expect QRVO's RF content to remain relatively flat at Apple, it is benefiting from higher builds, plus QRVO has multiple 5G engagements at four of the largest Chinese OEMs. Moreover, we expect QRVO's margin profile to benefit from a higher mix of IDP sales, which include 5G infrastructure and IoT.”Gill’s upbeat stance and Buy rating are backed by a $160 price target, indicating a robust upside potential of 41% in the year ahead. (To watch Gill’s track record, click here.)Qorvo has 13 Buys and 4 Holds behind its Strong Buy analyst consensus rating. The stock’s $124.47 average price target suggests an upside potential of nearly 8% from the trading price of $115.37. (See Qorvo stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
- Zacks
Analysts Estimate Mirati (MRTX) to Report a Decline in Earnings: What to Look Out for
Mirati (MRTX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
- GlobeNewswire
Qorvo® to Webcast Quarterly Earnings Conference Call on July 29, 2020
GREENSBORO, N.C., July 15, 2020 -- Qorvo® (Nasdaq: QRVO), a leading provider of innovative RF solutions that connect the world, will host a conference call to review fiscal.
- Insider Monkey
Were Hedge Funds Right About Qorvo Inc (QRVO)?
At the end of February we announced the arrival of the first US recession since 2009 and we predicted that the market will decline by at least 20% in (see why hell is coming). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. […]
- Insider Monkey
Did Hedge Funds Make The Right Call On Mirati Therapeutics, Inc. (MRTX) ?
At the end of February we announced the arrival of the first US recession since 2009 and we predicted that the market will decline by at least 20% in (see why hell is coming). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. […]
- PR Newswire
MRTX Investor Alert: Bronstein, Gewirtz & Grossman, LLC Announces Investigation of Mirati Therapeutics, Inc. and Encourages Investors to Contact the Firm
Attorney Advertising--Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Mirati Therapeutics, Inc. ("Mirati" or the "Company") (NASDAQ: MRTX). Investors who purchased Mirati securities are encouraged to obtain additional information and assist the investigation by visiting the firm's site: www.bgandg.com/mrtx.
- TipRanks
Morgan Stanley Bets on These 3 Hot Tech Stocks
Last week was grim for the stock market, including the worst single-day loss since March, but the trend lines are turning upwards again this week. Treasury Secretary Mnuchin’s statement that the US cannot shut down its economy again gave investors a boost of confidence – and this week’s May retail sales report gave an even bigger one.This is the good news background lending credence a recent report from Morgan Stanley, on finding the advantageous tech position for a V-shaped recovery. The report, lead-authored by 5-star analyst Joseph Moore, details the strengths and weaknesses of the tech sector as companies respond to the economic recovery and the resumption of a more normal consumer activity. Moore pinpoints three tech stocks that are likely to gain – and upgrades their ratings in consequence.We’ve used the TipRanks database to pull the details on these three tech stocks, to find out what makes them such compelling opportunities. Qualcomm, Inc. (QCOM)Qualcomm has a clear path forward as retail markets reopen. The semiconductor chip maker is heavily invested in both the smartphone market and the burgeoning 5G rollout, and both sectors are expected to expand dramatically with the resumption of consumer demand. The May retail numbers are relevant on this point, indicating that consumers are willing to spend and have the resources to do so.The company’s forward prospects were blurred slightly by underperformance in 1H20 – but that underperformance should be taken with some careful skepticism. QCOM’s calendar fourth quarter is historically the company’s strongest, so declines in Q1 and Q2 were to be expected even without the coronavirus turndown. In the event, however, QCOM overperformed in both quarters, beating EPS and revenue expectations. Q1 saw $5.08 billion at the top line; Q2 saw an improvement to $5.22 billion.Reviewing QCOM shares for Morgan Stanley, analyst James Faucette upgrades the stock to Buy from Neutral, and supports his rating with a $102 price target. Faucette’s target implies a healthy upside of 13% for the stock. (To watch Faucette’s track record, click here)In his comments on QCOM, Faucette writes, “We see smartphone demand improving through the year, with a rising average selling price as we transition to 5G; volumes down 30% y/y in 2q should be a good entry point as we see consumption rebounding quickly.” Overall, the Moderate Buy analyst consensus rating on QCOM still reflects Wall Street’s recent caution in the markets. The 19 reviews on the stock break down as 11 Buys, 5 Holds, and 3 Sells. Shares are selling for $89.52, and the $91 average price target suggests a minimal upside of nearly 2%. (See Qualcomm stock analysis on TipRanks)Qorvo, Inc. (QRVO)Next on our list, Qorvo, is another chip maker. This company has a strong reputation and niche in the wifi segment, where it provides integrated circuits for networking communications hardware. Countless PCs, laptops, tablets, and smartphones use Qorvo chips, and the company’s products are important in older applications such as cordless phones and industrial radio.Qorvo’s solid niche position in the essential wireless tech industry helped insulate the stock from the economic turmoil of Q1 and Q2. Yes, the company saw revenues and earnings slip in both quarters, but in both cases the results were within the expectations of historical performance patterns. Calendar Q4 is QRVO’s strongest, and the company beat the forecasts in both calendar Q1 and Q2.The most recent report, for the company’s fiscal fourth quarter, shows the picture. QRVO saw revenue of $787.8 million, up 15% year-over-year, while the EPS of $1.57 beat the $1.32 forecast by a wide margin. QRVO’s share price reflects the earnings and market position. The stock has recovered from the February-March dip, and is trading up 8% from pre-bear levels.Morgan Stanley’s Craig Hettenbach, rated 5-stars in the TipRanks database, writes of QRVO: “We upgrade QRVO to Overweight on a recovery in mobile in 2H and expectation of further acceleration in 2021… We expect a cyclical rebound in smartphones, with 5G adoption adding another kicker as RF $ content should increase more than $5 per phone or over 30%...”Hettenbach supports his new Buy rating with a $130 that implies a one-year upside of 15% for the stock. (To watch Hettenback’s track record, click here)QRVO shares have a Strong Buy rating from the analyst consensus. Wall Street’s reviewers have posted 16 analyses of the stock, breaking down to 12 Buys and 4 Holds. Shares are trading now at $113.26, and the $119.85 average price target suggests the stock has room for a modest 6% growth. (See Qorvo stock analysis on TipRanks)Lam Research (LRCX)Last on our list of Morgan Stanley recommendations is Lam Research, a company with an interesting niche in the semiconductor industry. They don’t make chips; rather, they specialize in wafer fabrication, the preparation of the silicon wafer from which chips are produced. Lam primary operations are the design, manufacture, and marketing of processing equipment used in front-end wafer processing. The company saw $9.7 billion in revenue last year, and netted $2.2 billion in income.For the most recent quarter, the company’s fiscal third, LRCX reported strong results. $2.5 billion in revenue, 46% gross margins, and $3.88 EPS left management feeling confident.Joseph Moore wrote the Morgan Stanley review on LRCX, saying, “…buying these stocks near the bottom of the macroeconomic cycle requires looking through some uncertainty, and favor Lam over peers given the higher exposure to memory – particularly NAND – where we see trailing spending as well below normal, improving from here…”Moore upgrades LRCX from Neutral to Buy, and raises his price target from $253 to $334. His new target implies an upside of 9.3% for the coming year. (To watch Moore’s track record, click here)LRCX has 21 recent analyst reviews, including 17 Buys and only 4 Holds. It’s the most expensive stock on this list, currently selling for $312.65. The average price target, at $309.86, indicates that Wall Street generally is more cautious than the Morgan Stanley analyst team. (See Lam Research’s stock stock-price forecast on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
- MarketWatch
Nvidia, Intel stocks get downgraded at Morgan Stanley
Morgan Stanley analyst Joseph Moore downgraded shares of Nvidia Corp. and Intel Corp. to equal weight from overweight Tuesday, writing that he's shifting his chip-sector preferences toward names that stand to benefit from a broader economic recovery. He previously showed a preference for stocks that could benefit from remote-working trends. Nvidia shares are off 0.6% in Tuesday morning trading while Intel shares are up 1.7%. Moore wrote that in a recent Nvidia note, he drew comparisons between Nvidia and high-growth software names to justify his price target. "As much as we like the longer-term growth story, that's simply not a comparison that we're totally comfortable with," he said. On Intel, Moore wrote that consensus estimates seem low for the second-half of this year but "the growth deceleration implied by consensus numbers does imply significant risk to CY21." He upgraded shares of Lam Research Corp. , Qualcomm Inc. , and Qorvo Inc. [s QRVO] to overweight from equal weight. Nvidia shares have added 84% over the past three months as Intel's stock has rallied 38%. The S&P 500 is up 32% in that time as the Dow Jones Industrial Average , of which Intel is a component, is up 31%.
- InvestorPlace
The 7 Best Semiconductor Stocks on the Market Now
Moore's Law says that the number of transistors on a silicon chip will double every two years. That premise of ever-expanding computing power has been the driving force behind the modern digital revolution. It has also meant that semiconductor stocks have been a force to be reckoned with. * The InvestorPlace Q&A: ProShares Pet Care ETF Is a Treat for Investors But not every company that has built its business around silicon is worth investing in. The road is littered with failures like 3dfx Interactive. To stay safe and reap big gains, these seven picks should be at the top of your list if you want a piece of the semiconductor action: * Advanced Micro Devices (NASDAQ:AMD) * Intel (NASDAQ:INTC) * Maxim Integrated Products (NASDAQ:MXIM) * Qorvo (NASDAQ:QRVO) * Skyworks Solutions (NASDAQ:SWKS) * Analog Devices (NASDAQ:ADI) * Broadcom (NASDAQ:AVGO)Some have been in business since the PC era began, while several of these companies are relative newcomers. What they all share in common is a focus on silicon chips, and stocks that are going to continue to be strong performers.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Best Semiconductor Stocks: Advanced Micro Devices (AMD)Source: Sundry Photography / Shutterstock.com First up is a stellar performer among semiconductor stocks. Advanced Micro Devices was the best-performing stock in the S&P 500 in 2019, posting 148% growth. AMD stock is up 9% so far in 2020, despite the novel coronavirus pandemic.AMD has been all but written off twice. First, after the 2000 dot-com crash, and again in 2008, when PC shipments began to stall, and AMD's processors and graphics cards just weren't competitive. All of that has changed in recent years. Under the direction of CEO Lisa Su, AMD has been relentless in its development of new chip architecture. Its Ryzen processors have been taking market share from Intel in the PC space, including an aggressive push into laptops for 2020. The company's EPYC processors are winning marketshare in the lucrative data center market. Its Radeon graphics cards are giving market leader Nvidia (NASDAQ:NVDA) fits. And both the Xbox Series X and PlayStation 5 video game consoles will be powered by custom AMD chips when they launch later this year. Above all, as I wrote earlier this year, AMD maintains an ambitious vision for the future. Look for that vision to continue powering the company's success. Intel (INTC)Source: Kate Krav-Rude / Shutterstock.com Intel is the senior statesman among these semiconductor stocks. It has been focused on silicon chips since 1968. In fact Gordon Moore of Moore's Law fame is Intel's cofounder.One of Intel's key strengths is its resilience. Intel has faced challenges over the past five years that would hobble many other companies. Even as Intel's core PC market continues to shrink, AMD has been winning over consumers and manufacturers with its Ryzen processors. Intel has faced crippling chip shortages plus fallout from the Meltdown and Spectre chip vulnerabilities. It abandoned the smartphone processor market, and last year dropped its smartphone modem business, selling it to Apple (NASDAQ:AAPL). Adding to the gloomy news, it has been reported that Apple is on the verge of ditching Intel processors in its Mac PCs.So why the nod to Intel? Despite the many challenges, Intel remains a dominant force. Its new 10nm chips are beginning to hit the market, and production delays are expected to be resolved. Intel Xeon processors remain the chip of choice in the data center market, and that market is growing. Last year, Intel showed off its own Xe graphics cards, which will position it to take on AMD and Nvidia in that market. Intel is also dominant in the growing Internet of Things (IoT) sector -- a key component of smart home and self-driving car technologies.Perhaps the strongest argument is that despite the many challenges, INTC stock continues to perform. Over the past five years, it's up 105%. * 7 Oil Stocks That Are Struggling to Survive In addition, Intel is generous with its dividends. Its latest quarterly dividend was 33 cents per share, paid on June 1. Maxim Integrated Products (MXIM)Source: Casimiro PT / Shutterstock.com Maxim Integrated is another of those semiconductor stocks with a long history. This company dates back to the 1980s and specializes in integrated circuits (ICs). These are the embedded chips used in a huge variety of products, ranging from cars to heath trackers to automated factory equipment.Maxim Integrated is positioned to benefit from some of the most promising areas of technology growth, including wearables, 5G wireless, automotive IoT, solar cells, military, aerospace and smart building automation.MXIM stock has posted growth of 79% over the past five years. Although it's still under water for 2020, it has been recovering from the March market selloff. At its current price, MXIM stock is up nearly 40% from its March 16 close. Qorvo (QRVO)Source: Piotr Swat / Shutterstock.com Qorvo is a relative newcomer among the semiconductor stocks scene. Founded in 2015, Qorvo describes itself as providing: "the industry's broadest portfolio of critical enabling technologies with expertise in mobile devices, complex infrastructure and global aerospace and defense applications."The RF business encompasses 5G and Wi-Fi 6, the latest tech in a red-hot communication sector. In 2019, Qorvo announced it had shipped 100 million RF devices for use in 5G infrastructure. On the foundry side, Qorvo specializes in custom solutions for the U.S. Department of Defense. That's a market that is always growing, no matter what the economic situation. Power management includes battery management components and power loss protection. Qorvo is growing through acquisition as well. Its latest purchase took place earlier this year, when it completed the purchase of Decawave -- a company specializing in ultra-wideband (UWB) technology.QRVO stock was up an impressive 91% in 2019. It has been hit hard in 2020, but since bottoming out in March has re-gained nearly 66%. * The 9 Best Cryptocurrencies to Watch for the Rest of 2020 Expect that recovery to continue, based on the company's latest guidance: "While our June quarter guidance reflects the ongoing demand and supply effects of COVID-19, we are encouraged by continued growth in 5G handsets and infrastructure, and we remain confident in the long-term growth drivers of our business." Skyworks Solutions (SWKS)Source: madamF / Shutterstock.com Skyworks Solutions' primary product is radio frequency semiconductors used by smartphones to communicate with wireless networks. From 2002 through 2008, SWKS stock bounced around below the $10 level, but since 2009 it has been on a growth path. That's no surprise, given that Apple is Skyworks' largest customer, and the iPhone was the hottest-selling smartphone on the planet. That relationship can have its downside -- 2018 saw SWKS stock slide, a reaction blamed on lower iPhone demand.However, 5G adoption is expected to spur iPhone demand this fall. That prospect helped to once again light a fuse under SWKS, starting in October. Before the coronavirus pandemic spooked the markets and spoiled the party, Skyworks' stock had gained 70% since the start of October. Even after a March plummet, the prospect of 5G iPhones boosting revenue for the at least the next few years has helped SWKS to recover and more. Now at the $132 level, it's up nearly 9% so far in 2020. Analog Devices (ADI)Source: Shutterstock This Massachusetts-based semiconductor company specializes in analog, mixed-signal and digital signal (DSP) integrated circuits.Its ICs can be found in products that are on the leading edge of technology, sectors that are all expected to see massive growth in coming years. This includes electric cars, self-driving vehicles, 5G infrastructure, industrial automation and smart sensors (Industry 4.0) and digital health solutions. Analog Devices claims over 100,000 customers, worldwide. The widespread use of its products, combined with a big presence in new technology sectors has served the company and its investors well. In addition, ADI has been rewarding investors with dividends and share buybacks -- to the tune of $340 million last quarter. * 7 Great Biotech Stocks to Buy and Hold Now ADI stock is up 85% over the past five years, and has even managed to stay afloat in 2020. Broadcom (AVGO)Source: Sasima / Shutterstock.com Finally, another instantly recognizable semiconductor giant: Broadcom. The Singapore-based company is known for its presence in the data center and network infrastructure sectors. While other tech companies have taken a hit from the coronavirus pandemic, the move to working from home has boosted Broadcom's balance sheet. In its most recent quarter, earnings of $5.74 billion were up 4% year-over-year.Broadcom is not content to sit on its own semiconductor IP. Acquisitions are a key part of its strategy. It even took a shot at purchasing Qualcomm (NASAQ:QCOM) at the height of that company's fight with Apple. The proposed $117 billion deal would have been the biggest ever tech merger. However, in 2018, President Trump blocked it, citing security concerns.The company moved on quickly. In 2019, Broadcom snapped up enterprise security provider Symantec, for $10.7 billion. The move bolstered Broadcom's cloud offerings and helped to diversify from its reliance on hardware.AVGO stock is still down slightly for 2020, but it's well on the path of recovery. With 126% growth over the past five years and a proven track record of thinking big, Broadcom is a winner among semiconductor stocks.Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system -- with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the "Master Key" to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * Top Stock Picker Reveals His Next 1,000% Winner * The 1 Stock All Retirees Must Own * Look What America's Richest Family Is Investing in Now The post The 7 Best Semiconductor Stocks on the Market Now appeared first on InvestorPlace.
- Zacks
Mirati (MRTX) Up 4.1% Since Last Earnings Report: Can It Continue?
Mirati (MRTX) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
- PR Newswire
Mirati Therapeutics to Present at 41st Annual Goldman Sachs Global Healthcare Conference
Mirati Therapeutics, Inc. (NASDAQ: MRTX), a clinical-stage targeted oncology company, will participate in the upcoming 41st Annual Goldman Sachs Global Healthcare Conference on Thursday, June 11, 2020. Charles M. Baum, M.D., Ph.D., President and Chief Executive Officer at Mirati will represent the Company during the fireside chat at 1:20 p.m. EDT/ 10:20 a.m. PDT.
- Investopedia
Chip Stocks Rally Despite US–China Tensions
Semiconductor stocks have been at the forefront of the market's pandemic recovery. Trade industry-leading names with these tactical ideas.
- Insider Monkey
Hedge Funds Are Nibbling On Mirati Therapeutics, Inc. (MRTX)
The financial regulations require hedge funds and wealthy investors that exceeded the $100 million equity holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn't the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F […]
- Insider Monkey
Here is What Hedge Funds Think About Qorvo Inc (QRVO)
Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors' consensus returns have been exceptional. In the following paragraphs, we find out […]
- PR Newswire
Mirati Therapeutics Appoints Joseph A. Leveque, M.D. As Chief Medical Officer
Mirati Therapeutics, Inc. (NASDAQ: MRTX), a clinical-stage targeted oncology company, today announced that Joseph Leveque, M.D. has been named Chief Medical Officer effective May 18, 2020. Isan Chen, M.D., will step down as Chief Medical and Development Officer to lead an early-stage biotech company, however, Dr. Chen will continue to act as an advisor to Mirati.
- Bloomberg
U.S.-China Fight Over Chip Kingpin Rattles Tech Industry
(Bloomberg) -- Since its founding more than three decades ago, Taiwan Semiconductor Manufacturing Co. has built its business by working behind the scenes to make customers like Apple Inc. and Qualcomm Inc. shine. Now the low-profile chipmaker has landed squarely in the middle of the U.S.-China trade war, an incalculably valuable asset that both sides are vying to control.The Trump administration opened up a new front in the conflict on Friday by barring any chipmaker using American equipment from supplying China’s Huawei Technologies Co. without U.S. government approval. That means TSMC and rivals will have to cut off Huawei unless they get waivers from the U.S. Commerce Dept. TSMC has already stopped accepting new orders from Huawei, the Nikkei newspaper reported Monday.The move threatens to wreak havoc throughout the complex ecosystem that produces technology for consumers and companies around the world. An attack on Huawei threatens not just its workers and its standing as a world leader in making smartphones and telecom equipment, but also hundreds of suppliers. The Chinese government has vowed to protect its national champion, with threats of retribution against U.S. companies that depend on China like Apple Inc. and Boeing Co.“China likely will retaliate, and investors should brace themselves for a possible trade war escalation,” Sanford C. Bernstein & Co. analysts led by Mark Li wrote in a research note on Friday.Read more: U.S. Tightens Rules to Crack Down on Huawei’s Chip Supply Huawei suppliers across Asia fell on Monday, with AAC Technologies Holdings Inc., Q Technology Group Co., Sunwoda Electronic and Lens Technology all sliding 5% or more. TSMC, which gets an estimated 14% of its revenue from Huawei, dropped as much as 2.5%.The U.S. already blacklisted Huawei last year, preventing American companies from supplying the Chinese company unless they got a license. The latest move tightens those restrictions to prevent chipmakers -- American or foreign -- from working with Huawei and its secretive chip-design unit HiSilicon on the cutting-edge semiconductors they need to make smartphones and communications equipment. The Trump administration sees Huawei as a dire security threat, an allegation the company denies.“We must amend our rules exploited by Huawei and HiSilicon and prevent U.S. technologies from enabling malign activities contrary to U.S. national security and foreign policy interests,” Commerce Secretary Wilbur Ross said in a tweet.Huawei countered by accusing the U.S. of ulterior motives.“The so-called cybersecurity reasons are merely an excuse,” Richard Yu, head of the Chinese tech giant’s consumer electronics unit wrote in a post to his account on messaging app WeChat. “The key is the threat to the technology hegemony of the U.S” posed by Huawei, he added.The U.S. decision is likely to hurt not just Huawei and TSMC, but also a clutch of American players including gear-makers Applied Materials Inc., KLA and Lam Research Corp. themselves, Morgan Stanley analysts wrote. Disruptions to Huawei’s production will also hurt U.S. customers from Micron Technology Inc. and Qorvo Inc. to Texas Instruments Inc., they said. But “it bears repeating that any escalation of trade tensions is negative for the stocks overall,” they wrote in a research report.It would have been impossible to imagine TSMC becoming such a coveted chit between the world’s great powers when it was founded in 1987. Morris Chang, born in China and trained in the U.S., started the company as a so-called foundry, manufacturing semiconductors for any customer that didn’t want to construct its own fabrication facility, or fab.At the time, the business wasn’t nearly as glamorous as making chips yourself. Dominating the industry at the time were companies like Intel Corp. and Advanced Micro Devices Inc., which made processors for personal computers. “Real men have fabs,” AMD co-founder Jerry Sanders would say, making clear that was an insult.But in the intervening years, the foundry industry has become far more strategic for the technology industry. Customers from Apple and Huawei to Qualcomm and Nvidia Corp. have found they can innovate more quickly if they focus on chip designs and then turn to foundries like TSMC to produce them. Innovators in emerging technologies like artificial intelligence or the internet of things also depend on foundries to crack open new markets.Today, many of the chips for mobile phones, autonomous vehicles, artificial intelligence and any other key technology are made at foundries. TSMC has become the leading foundry in the world by investing heavily in ever more advanced fabs, with annual capital spending of about $16 billion this year.It can now manufacture at 5 nanometers, about twice the width of human DNA, while China’s top foundry, Semiconductor Manufacturing International Corp., or SMIC, is at 14 nanometers. That makes TSMC’s chips far more powerful and energy efficient.Huawei and HiSilicon will have few good options if they are cut off from TSMC. One possibility is to procure off-the-shelf chips from Taiwan’s MediaTek Inc. and South Korea’s Samsung Electronics Co., an option Huawei’s rotating Chairman Eric Xu mentioned in late March. But even that may no longer be viable under the new Commerce restrictions.SMIC itself is keen on moving up the technology ladder, eyeing a secondary share listing that could raise more than $3 billion on top of a large capital infusion from the state.Read more: China Injects $2.2 Billion Into Local Chip Firm Amid U.S. CurbsBut that’s a longer-term endeavor and Huawei’s products meanwhile are likely to suffer, putting them at risk of falling behind those of rivals like Apple or Xiaomi Corp.For TSMC, it’s growing ever more difficult to remain neutral amid the growing tensions between the U.S. and China. The company brands itself “everybody’s foundry,” effectively the Switzerland of the tech industry. It supplies Chinese customers like Huawei and the American military, while relying on U.S. producers of semiconductor-making equipment like Applied Materials and Lam Research.TSMC did take one step closer to the U.S. last week, saying it would build a $12 billion chip plant in Arizona. The Department of Defense has expressed concern that overseas fabs may be vulnerable to cyberattacks and domestic manufacturing would assure a more reliable supply of chips.The proposal appears to be carefully calculated to address such security issues without too much damage to profits or its political balancing act. Suppliers to the military, such as Xilinx Inc., would be able to use the U.S. fab, but the facility would likely account for less than 5% of revenue so margins won’t be compromised.It’s not clear if the plans for a U.S. plant will win TSMC leniency in supplying Huawei, however.“TSMC will not be granted or granted a license based on their intent to build a 5 nanometer fab here in the United States. That’s not part of it at all,” Keith Krach, undersecretary for economic growth, energy and the environment at the State Department, told reporters on a call. “There’s no assurance on that and we don’t anticipate that.”Meanwhile, China appears to be preparing to retaliate for the new restrictions on Huawei. On Friday, the Global Times -- a Chinese tabloid run by the flagship newspaper of the Communist Party -- reported Beijing was ready to initiate countermeasures, including imposing restrictions on Apple, suspending the purchase of Boeing airplanes and putting U.S. companies on an ‘unreliable entity list.’The list will cover “foreign entities that cause actual or potential damage to Chinese companies and industries,” the newspaper said.(Updates with Nikkei report in second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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