|Bid||92.67 x 800|
|Ask||98.20 x 1000|
|Day's Range||97.16 - 102.01|
|52 Week Range||67.62 - 108.51|
|Beta (3Y Monthly)||1.43|
|PE Ratio (TTM)||13.82|
|Earnings Date||Oct 29, 2019 - Nov 4, 2019|
|Forward Dividend & Yield||1.00 (0.97%)|
|1y Target Est||116.75|
After downgrading the chip sector almost a year ago, brokerage firm Raymond James now is seeing some attractive semiconductor stocks. They include ON Semiconductor and NXP Semiconductors.
Expectations for ON Semiconductor and NXP Semiconductors are now low enough to present a great buying opportunity, according to Raymond James.
Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the...
(Bloomberg) -- Semiconductor companies are wincing as consumers around the globe are buying fewer cars amid continuing trade tensions between the U.S. and China.China has been a pain point for the sector as the two countries continue to spar on trade, and chipmakers had braced for slumping demand in the country to dent performance. The automotive sector has emerged as one of the biggest sources of weakness and is now threatening to dampen the chances of a recovery in the latter half of the year.It has so far been an unfortunate year for automakers, as global sales shrank 6.5% from a year earlier in the first quarter of 2019, and 7% in the next three months, according to Bloomberg Intelligence. China led the decline with car sales in the country falling for 12 consecutive months through June, amid slowing economic growth, trade-related turmoil, and a weak consumer demand, exacerbated by newer and stricter emissions rules. With the U.S. and China ratcheting the turmoil up a notch this week, some say the risks of tariffs on auto imports is now higher.Many auto parts suppliers, as well as Ford Motor Co., have reported disappointing results and issued weak forecasts for the year, citing the China slowdown. And now the effect is rippling through the rest of the supply chain, hurting chipmakers and other industrial manufacturers.“China weakness was expected, but in all honesty, we were expecting a trade deal by now,” Piper Jaffray & Co. analyst Harsh Kumar said in an interview. Kumar, who covers semiconductor stocks, said the companies supplying the automotive market were still seeing growth in radar and electrification-related products, while the traditional, gas engine segment is getting hit hard.Most of the automotive chip manufacturers have a larger piece of their business associated with traditional auto, and “that is not doing so well because there isn’t any market share or penetration to be gained; it is simply a units game,” Kumar said, referring to the fewer number of cars being sold.Maxim Integrated Products Inc., which makes chips that are used in various parts of a car including lighting, infotainment and driver assistance systems, said it expected the calendar third quarter to be slow, due to a “soft environment” for automotive production. The company’s battery management systems used in electric vehicles will also have fewer shipments, given the market uncertainty in China, the company said.The concerns were echoed by NXP Semiconductors NV, which makes components that help a car to sense its environment and process that data. Maxim and NXP’s customers include auto suppliers such as Aptiv Plc, Lear Corp. and Visteon Corp. as well as Fiat Chrysler Automobiles NV. Other chipmakers with substantial auto market exposure include Infineon Technologies AG, Analog Devices Inc., Texas Instruments Inc., and Microchip Technology Inc.Meanwhile, Rockwell Automation Inc., which counts both automotive and semiconductor sectors among its customers, saw both markets decline in the quarter ending June 30.“Overall, the combination of production cuts and reductions in component inventory is having an significant impact,” Morgan Stanley’s Craig Hettenbach, who covers semiconductors, said in an email interview. The analyst said that while the weakness is most pronounced in China, Europe has also been below expectations from the beginning of the year. “There is a lot of focus on when China will provide incentives to stimulate demand, but company and investor expectations for stimulus are pretty low right now,” Hettenbach said.A respite is not expected anytime soon. According to Moody’s, global vehicle sales are expected to fall 3.8% in 2019, amid further weakening demand in China and Western Europe. The latest round of trade war-related tarriffs could make matters even worse.To contact the reporter on this story: Esha Dey in New York at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Jennifer Bissell-Linsk, Morwenna ConiamFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Qualcomm (NASDAQ:QCOM) stock dropped again after reporting results that were short of estimates, posting on a non-GAAP basis net income of $1.2 billion, 81 cents per share, on revenue of $5.6 billion for the quarter ending in June. But QCOM stock watchers called the company's guidance "disappointing" because it stripped out its business with China's Huawei from the results.The shares lost about $3 on the news and ended the week just above $71 after touching $76.25 on July 29. This pushes the yield on the 62 cent per share dividend to 3.48%. The 30-year U.S. government bond currently yields just 2.49%.The numbers, however, have little to do with Qualcomm's business and more to do with its status as a legal and political pinata.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Qualcomm for AmericaAs I wrote on July 22, Qualcomm's legal claim linking patents to chip sales is now fully supported by the Trump administration, despite negative reaction from a court.Three agencies -- the Departments of Energy, Justice and Defense -- are now on the record arguing that legal action against the monopoly threatens national security. * 7 Stocks to Buy With Over 20% Upside From Current Levels The decision by U.S. District Court Judge Lucy Koh, an Obama appointee, calling Qualcomm's "no patent, no chips" practice illegal, continues to be fought by the administration, with letters to the Ninth Circuit Court of Appeals asking for a stay of the decision. Qualcomm for ChinaDespite administration rhetoric calling Qualcomm a bulwark against China's tech ambitions, Qualcomm continues to do business there. If anything, it's even more deeply involved with the world's second-biggest economy than ever before.Qualcomm recently signed a deal with Tencent Holdings (OTCMKTS:TCEHY) to collaborate on digital entertainment. This could result in the two companies jointly developing a mobile gaming device or smartphone. That's important as gaming shifts to online and mobile platforms, where Tencent is a clear leader.Qualcomm is also working with China to make 5G the standard communication system for self-driving cars. NXPI (NASDAQ:NXPI), which Qualcomm tried to buy last year, is behind a rival standard based on WiFi. A win for Qualcomm here could bring tens of billions of dollars in royalty payments down the road. The Legal DiscountHow well Qualcomm's doing depends a lot on whether you use GAAP or non-GAAP measurements.The former, which counts cash in escrow under legal dispute as income, shows the company earning $2.1 billion, or $1.75 per share of QCOM stock fully diluted, on revenue of $9.6 billion during the most recent quarter. Under non-GAAP accounting Qualcomm said it will earn just 65 cents-75 cents per share next quarter on $4.2-5.1 billion of revenue. * 7 A-Rated Stocks Under $10 In its latest report the company estimated it will get $4.7 billion from the settlement of its dispute with Apple (NASDAQ:AAPL), and those revenues are included in its GAAP calculations. Apple recently bought most of Intel's (NASDAQ:INTC) smartphone modem business for $1.2 billion, and plans to eventually replace Qualcomm modems with its own.Qualcomm CEO Steve Mollenkopf also said his company has yet to reach a final agreement with Huawei, so its outlook doesn't include those payments. He said Chinese carriers won't start launching 5G services until next year, eliminating a normal seasonal earnings boost. He predicted they will start seeing the full benefits of 5G in the first quarter of 2020. Bottom Line on QCOM StockThe uncertainty over China and its legal status means QCOM stock continues to be range-bound. Many analysts don't know what to think. What presents as a tech stock is trading like a law firm.The result is a bargain for income-oriented investors. Qualcomm easily out-earns its dividend and continues to accumulate cash. It also has more than $14 billion in cash and marketable securities on its books, meaning 34% of its assets are liquid. With older investors increasingly desperate for yield, this looks like an opportunity.For other investors, it looks like a speculation.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AAPL. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Most Shorted Stocks in the Markets Right Now * 7 Charts That Should Concern Marijuana Stock Investors * 8 Monthly Dividend Stocks to Buy for Consistent Income The post Qualcomm Stock Watchers Eyeing Both the Legal Discount and the Dividend appeared first on InvestorPlace.
(Bloomberg) -- China’s plan to standardize the use of 5G for vehicles to talk to each other could lead to the U.S. falling behind in the commercialization of self-driving cars, according to Qualcomm Inc. China will be “saving hundreds, if not thousands, of lives much sooner than we will as we fumble to determine which is the standard that is best for the long-term road map in the Western world,” Patrick Little, a Qualcomm senior vice president, said in an interview. “If we can get around a common standard, we can deploy it more quickly, save a lot of money and save a lot of time.”Little’s comments are part of an effort by Qualcomm and more than 100 companies to push regulators worldwide to embrace a standard called C-V2X -- cellular vehicle-to-everything -- that will run on 5G. The technology would enable vehicles and infrastructure to beam real-time traffic data to one another and reduce accidents. Rival firms are lining up behind a Wi-Fi-based standards and pursuing a market for car electronics data transmission that IHS Markit estimates will grow to $9.2 billion by 2025.While proponents of the Qualcomm-backed standard say it’s faster and more reliable, companies including top automotive chipmaker NXP Semiconductors NV argue that an existing Wi-Fi-based technology called DSRC is good enough. Other backers of DSRC include General Motors Co., Volkswagen AG and Honda Motor Co.“The big thing is, it is available, it is proven, it has millions of miles driven and tested,” NXP President Kurt Sievers said in an interview.Choosing between the two standards is only one piece of the puzzle involved in making self-driving cars a reality. China is years behind the U.S. in terms of road testing robocars, with Alphabet Inc.’s Waymo and others having logged millions of test miles in California alone.Still, China is the world’s biggest auto market and has sent a clear signal it will embrace C-V2X. In October, the country announced plans to use the standard and set aside airwaves specifically for connected cars. That’s led 5G Automotive Association, a group founded in September 2016, to predict China will be first to get C-V2X cars on the road. Ford Motor Co. and Byton have disclosed plans to make vehicles that adopt the standard.In the U.S., the Trump Administration has yet to make a decision on which standard to back. The European Commission was poised to back DSRC, but the proposal was shot down by member states in July. Elsewhere in Asia, Japan is planning to allocate spectrum to DSRC, and South Korea intends to set aside airwaves for both standards.DSRC’s entrenched position will hinder C-V2X’s adoption outside of China in the next three years, Bloomberg NEF wrote in an April report. But longer-term, the U.S., Korea and Japan are likely to switch to C-V2X as those countries aggressively deploy 5G networks, the analysts said.The prospect of improving road safety is a major incentive for regulators to speed up their decision-making. The University of Michigan Transportation Research Institute estimated last year that as many as 8.1 million car crashes and 44,000 deaths could be prevented in the U.S if the federal government picked a technology this year compared with three years from now.\--With assistance from Ian King and Kevin E Heinz.To contact the reporter on this story: Ed Ludlow in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Young-Sam Cho at email@example.com;Craig Trudell at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Chipmaker NXP Semiconductors topped Wall Street's second-quarter estimates, but gave cautious guidance. The NXP earnings report provided evidence that the chip down cycle is continuing.
NXP and many other chip stocks still trade at reasonable valuations. But the group's margin of safety has diminished some following recent gains, and industry news remains pretty mixed.
EINDHOVEN, The Netherlands, July 29, 2019 -- NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the second quarter of 2019, ended June 30, 2019. “NXP.
NXP Semiconductors (NASDAQ: NXPI ) announces its next round of earnings this Monday, July 29. Here's Benzinga's look at NXP Semiconductors's Q2 earnings report. Earnings and Revenue NXP Semiconductors ...
With semiconductor stocks reaching record highs despite trade war jitters, and smashing earnings estimates, it will be judicious to invest in some winning players.
EINDHOVEN, The Netherlands, July 24, 2019 -- NXP Semiconductors N.V. (NASDAQ: NXPI) today announced participation at the following events with the financial community:.
(Bloomberg Opinion) -- Today should be a good news day for AMS AG, the Austrian maker of key components for the facial recognition system in Apple Inc.’s iPhone.It seems finally to be delivering on its repeated promise that a multi-year, $2 billion investment in 3-D sensing technology would ultimately pay off. It forecast third-quarter revenue of between $600 million and $640 million, well above analysts’ $526 million average estimate.Yet the good news came with a sting in the tail. Chief Executive Officer Alexander Everke said AMS was again evaluating the possibility of a bid for Osram Licht AG, after being approached by unidentified “potential financial partners.” The revelation comes just a week after AMS decided not to pursue an offer for the Munich-based lighting maker, which had already agreed a sale to private equity firms Bain Capital and Carlyle Group LP. That climbdown from AMS in turn came after re-entering talks it had previously abandoned, and… well you get the idea. It’s flip-flopping in the extreme.Maybe Everke has made the right calls technologically. AMS’s initial struggles stemmed from the disappointing sales of Apple’s iPhone X range of handsets. Now Android handset-makers are following up with more 3-D sensors, boosting orders for AMS’s gear. Operating cash flow and order backlogs are on the increase.But Everke does himself few favors. The former NXP Semiconductors NV executive has made AMS an extremely tough investment case: the stock has consistently had the highest 120-day volatility of any European tech firm over the past three years. The Osram affair is a prime example of the behavior causing this.As a conference call on Tuesday progressed, AMS shares pared earlier gains of as much as 10%. Analysts repeatedly tried and failed to get clarity from Everke and his team on the logic behind any Osram bid, and investor faith in his strategy appeared to wane by the minute. Executives repeatedly parroted a line about any bid target needing to meet AMS’s acquisition criteria, without giving any sense as to whether or how Osram met them. By the time the call ended, the stock was trading just 1.9% higher than Monday’s close.I wrote last week how any bid would require a serious leap of faith from investors. Perhaps he thought that the upswing in earnings would help warrant such trust. But given the failure to explain why any deal for Osram might make sense, the leap he’s asking for is a blind one. Investors have been burned enough before to be wary about taking it.To contact the author of this story: Alex Webb at email@example.comTo contact the editor responsible for this story: Jennifer Ryan at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
NXP (NXPI) 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.