53.76 0.00 (0.00%)
After hours: 5:09PM EST
|Bid||53.74 x 2200|
|Ask||53.83 x 1100|
|Day's Range||53.75 - 54.14|
|52 Week Range||34.21 - 54.37|
|Beta (3Y Monthly)||0.59|
|PE Ratio (TTM)||24.11|
|Forward Dividend & Yield||1.60 (2.99%)|
|1y Target Est||N/A|
(Bloomberg) -- Applied Materials Inc. gave a sales forecast for the current quarter that topped analysts’ estimates, suggesting a slump in orders for chipmaking equipment is ending.The company is the largest maker of machinery used in the manufacture of semiconductors, which are among the most important parts of the electronics supply chain. Customers of the Santa Clara, California-based company include Samsung Electronics Co., Intel Corp. and Taiwan Semiconductor Manufacturing Co., giving it a reach that makes its results and forecasts an important early indicator of business confidence. Intel and other chipmakers order equipment months in advance of starting new factories and production lines.Key InsightsFiscal first-quarter sales will be about $4.1 billion, Applied Materials said Thursday in a statement. That compares with analysts’ average estimate of $3.71 billion, according to data compiled by Bloomberg.Adjusted earnings per share will be 87 cents to 95 cents, the company said. Analysts projected 75 cents a share.The results “reflect a healthy uptick in demand for semiconductor equipment, combined with strong execution across the company,” Chief Executive Officer Gary Dickerson said in the statement.Chip-equipment makers often experience wild earnings swings. Machines cost tens of millions of dollars each. Delaying factory build outs is one of the fastest ways a chipmaker can preserve cash when they’re unsure of future demand.Net income was $698 million, or 75 cents a share in the period ended Oct. 27, compared with $757 million, or 77 cents a share, a year earlier.Revenue was little changed at $3.75 billion. Analysts were looking for $3.68 billion.Stock ReactionShares rose about 4% in extended trading after the announcement. The stock closed at $56.96 in New York and has increased 74% this year.More InformationFor more details, click here.To see the statement, click here.To contact the reporter on this story: Ian King in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Andrew Pollack, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Nvidia's diverse portfolio of GPU functionalities gives me confidence that this firm is going to continue to impress the markets in the years to come.
(Bloomberg) -- Hon Hai Precision Industry Co. reported quarterly profit above analysts’ estimates, indicating solid demand for Apple Inc.’s iPhone 11 range.The assembler of most of the world’s iPhones and iPads posted net income of NT$30.7 billion ($1 billion) for the September quarter, compared with an average estimate of NT$27.7 billion.Apple last month forecast holiday revenue that surpassed Wall Street’s projections, suggesting healthy appetite for iPhone 11 models with lower entry prices and vastly improved cameras. It’s now said to expect iPhone shipments to return to growth in 2020 when it finally introduces its own 5G devices -- a boon to hardware suppliers such as Hon Hai and chipmaker Taiwan Semiconductor Manufacturing Co. coping with a decelerating smartphone market. Assembly partners like Hon Hai and TSMC typically begin gearing up for production weeks, if not months, ahead of a device’s commercial launch.The outlook for Apple and its main suppliers remains overshadowed by an ongoing trade war. AirPods, Apple Watch, HomePod and other devices made in China have been hit with 15% tariffs, and U.S. President Donald Trump hasn’t ruled out the possibility of a levy on iPhones starting Dec. 15. Hon Hai said it’s getting into the production of wearable gear next year, potentially competing for more Apple business but also increasing its exposure to the trade war.Hon Hai, which gets half its revenue from its Cupertino, California partner, is now diversifying away from its main Chinese production base to mitigate the impact of potential punitive tariffs. It’s spending more than NT$17 billion building factories in India and Vietnam, responding to customers’ needs, Chief Financial Officer David Huang said at an earnings conference. Those two countries will become regional manufacturing hubs, he added.Read more: Apple Expects IPhone Shipments to Return to Growth in 2020Hon Hai’s investment encapsulates a fundamental trend that’s beginning to shake up production of most of the world’s electronics. Taiwanese companies like Hon Hai, which today make most of the most recognizable brands, began investing in China decades ago, kicking off a transformation that’s made China the world’s factory floor. But faced with growing trade tensions and U.S. tariffs, the leaders of those companies -- which typically operate on wafer-thin margins -- are reconsidering their commitment to China.Read more: The Tycoons Behind China’s Gadget Factories Boom Prepare to ExitAlthough any pivot away from the country is just starting, factories that leave won’t come back anytime soon. In Hon Hai’s case, billionaire founder Terry Gou has even promised to shift jobs and production into the American heartland. Gou has said he intends to press ahead with construction of a display panel factory in the state of Wisconsin, an endeavor once tagged as a $10 billion investment but that has fallen far behind schedule. Vice Chairman Jay Lee said that project was “‘on track.” Hon Hai has completed initial construction on the first, main factory and the company will also target the defense and aviation markets with its panels, he added.Hon Hai executives also forecast a rebound in consumer electronics demand in 2020, which could help prop up its top line. The company reported NT$1.39 trillion in sales for the September quarter, barely changed from a year earlier. Chairman Young Liu said the firm’s goal is to achieve 10% gross margins within three to five years. Its shares closed down 1.4% ahead of the earnings on Wednesday, after gaining 27% this year.“The lower pricing of the iPhone 11 has been effective in driving demand past the Street’s expectations,” Sean Lin, an analyst at President Capital Management Corp., said in a Nov. 4 note.(Updates with executives’ comments from the fifth paragraph)To contact the reporter on this story: Debby Wu in Taipei at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
ANSYS (ANSS) Q3 results benefits from the acquisition synergies and growth across lease, maintenance and service revenues. Also, strong product portfolio drove the quarterly results.
Model N (MODN) Q4 results benefit from its transition of revenue management to cloud. This has aided the company in customer addition during the quarter.
Microchip's (MCHP) Q2 results rides on expanding product portfolio, robust demand for microcontrollers and collaboration with Amazon Web services.
Groupon's (GRPN) partnership with Grubhub and ParkWhiz along with ongoing brand awareness programs will aid revenues. Further, launching new products on a regular basis is a positive.
(Bloomberg Opinion) -- You’ve got to feel for Mark Liu. The chairman of Taiwan Semiconductor Manufacturing Co. just wants to make chips.And he does; the best chips for the best companies in the world. Unfortunately, one of his clients is Huawei Technologies Co. So it’s not surprising that the world’s largest contract chipmaker has found itself in something of a pickle. On the one hand, you’ve got officials in Washington repeatedly asking Taiwan’s government to restrain TSMC from selling chips to Huawei, as the Financial Times reported Monday, citing government sources in both the U.S. and Taiwan. The Chinese electronics giant — which the U.S. has accused of spying — is one of TSMC’s top-five clients and likely contributes roughly 5% to 10% of annual revenue.On the other is China, with a government-led policy to design and build more semiconductors in the coming years. Demand from U.S. companies currently dwarfs that of Huawei and other Chinese names. American tech giants such as Apple Inc., Qualcomm Inc., Broadcom Corp. and Nvidia Corp. together account for 61% of TSMC’s revenue, and comprise the biggest buyers of the Taiwanese company’s most advanced technologies. But China is growing quickly, which leaves TSMC with an unappealing choice: Upset its current large client base in the U.S., or risk losing a future client base in China.There are two things that the U.S. is most scared about when it comes to TSMC. The first is that Chinese companies may get access to the best technology, including semiconductors, that could be used for nefarious purposes, which explains the pressure the FT cites. The other is that the U.S. itself may be cut off from the hardware supply chain, at the heart of which is TSMC.This is why U.S. officials have been hoping that manufacturers like TSMC would expand in America. At present, most of the company’s capacity is spread across three locations in north, central and southern Taiwan. It has two factories in China (the technology made there isn’t as advanced as back home) and one older facility in the U.S. Liu has politely pushed back against U.S. expansion citing the steep costs. In reality, it’s more the daunting logistics of setting up and staffing an advanced factory so far from home base where all the R&D is done. Each of its Taiwan facilities are close enough that engineers can move around and troubleshoot with relative ease. That makes TSMC the belle of the ball. Which sounds nice, except when it comes to choosing a dance partner — and Liu doesn’t want to have to decide. I’ve argued before that everyone will need to pick sides at some point as the digital Iron Curtain falls. For TSMC, this probably won’t come as a declaratory statement, but through quiet and subtle decisions on which cases it will accept and which it will turn down. This brings us back to Liu. In response to the FT report, TSMC spokeswoman Elizabeth Sun told Bloomberg News that the U.S. has not in fact asked it to stop supplying Huawei. Liu met with Commerce Department officials during a U.S. trip earlier this year where they talked about the Chinese company, she said, without elaborating on what they discussed. Meanwhile, a Taiwan cabinet spokeswoman denied that the U.S. asked its government to stop TSMC from shipping to Huawei. (1)I have covered TSMC for almost 20 years, and the notion that the Taiwan government would, or even could, tell the chipmaker what to do is hard to fathom. TSMC is Taiwan’s largest company. It’s publicly listed, has independent management and board of directors, and an impeccable reputation for corporate governance. As a chipmaker to the stars, there’s no other company in the world that can do what TSMC does in terms of technological prowess or sheer capacity. Samsung Electronics Co. and Intel Corp. are its nearest rivals.For now Liu can afford to rebuff pressure — direct or indirect — to cut off Huawei and expand in the U.S. TSMC holds all the cards because American clients desperately need the Taiwanese company’s technology, and Chinese ones aren’t big enough to buy up all of its factory capacity. It may end up offering to build a facility in America as an appeasement move.But TSMC won’t be able to sit on the fence forever. While Liu may want to just make chips, he’ll eventually have to make a choice.(1) I take the denial of Taiwan’s governmentwith a pinch of salt. It’s likely the U.S. consulted with Taiwanese officials on how to deal with the issue, though they may have stopped short of pressuring the company directly.To contact the author of this story: Tim Culpan at firstname.lastname@example.orgTo contact the editor responsible for this story: Rachel Rosenthal at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Qorvo (QRVO) benefited from increased demand in the performance-tier for RF Fusion based solutions, antenna tuning, discrete components and BAW-based multiplexers.
Others embrace less volatile Taiwanese stocks and the iShares MSCI Taiwan ETF (NYSE: EWT) fit into the latter category. The $3.14 billion EWT, which turns 20 years next year, is higher by 22.60% year to date, or more than double the returns of the MSCI Emerging Markets Index, in which Taiwan is one of the largest country weights after China. “Outside money, fueled by an easing of U.S.-China trade tensions, has helped boost Taiwan asset prices.
Mellanox (MLNX) is benefiting from robust demand for ethernet adapters, switches and LinkX cables. Also, robust demand for it's InfiniBand solutions is a key catalyst.
(Bloomberg) -- Taiwan Semiconductor Manufacturing Corp. Chairman Mark Liu said the company aims to resolve chip security issues by developing new technology to track where chips go and prevent them from being tampered with. He said making chips in the U.S. is not the solution for ensuring security for defense chips.Liu made his comments at a tech forum in Hsinchu, TaiwanThe American government has contacted its customers about making semiconductors in the U.S. TSMC did not hear directly from the Pentagon about U.S. productionU.S. chip production is “very difficult” due to cost issuesTo contact the reporter on this story: Debby Wu in Taipei at firstname.lastname@example.orgTo contact the editor responsible for this story: Peter Elstrom at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.