117.50 +0.32 (0.27%)
Pre-Market: 8:08AM EDT
|Bid||117.00 x 1400|
|Ask||116.99 x 800|
|Day's Range||116.76 - 118.44|
|52 Week Range||87.70 - 120.00|
|Beta (3Y Monthly)||1.26|
|PE Ratio (TTM)||21.27|
|Earnings Date||Jul 23, 2019|
|Forward Dividend & Yield||3.08 (2.60%)|
|1y Target Est||115.96|
We do not expect Texas Instruments (TXN) to perform well in Q2 owing to weakness in demand and an uncertain macro environment. However, strength in analog & embedded markets might aid results.
Qualcomm (NASDAQ:QCOM) stock has its share of challenges.The mobile chip maker saw a nice pop in mid-April, with shares rising from about $57 up to as high as $90 after settling its litigation with Apple (NASDAQ:AAPL). But concerns with a Federal Trade Commission (FTC) antitrust ruling have pushed the stock down to the $65-$75 price level.With government rulings threatening the company's competitive advantage, what is the next move for Qualcomm stock?InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip Read on to see why QCOM stock is a hold: Good News and Bad News for QCOMThe April Apple settlement boosted Qualcomm stock. After years of an ugly patent dispute, Apple settled, agreeing to pay Qualcomm between $4.5 billion and $4.7 billion and start a six-year licensing agreement.This good news helped push QCOM stock to new highs. Unfortunately, it was chased with a heavy dose of bad news.In May, Qualcomm stock tumbled after a ruling from the FTC. The FTC found that the company was engaging in unfair trade practices, exploiting its size to keep out competition and squeeze cell phone manufacturers. Qualcomm was ordered to license its technology to rival chip makers, negatively impacting the company's "edge."But Qualcomm has received a reprieve: the U.S. Department of Justice (DoJ) has asked the appeals cause to pause the antitrust ruling. The DoJ cited "Qualcomm's critical role in 5G technology in the short-term" as the rationale behind their decision.Does this mean QCOM is out of the woods? Maybe, maybe not. While the DoJ and other agencies believe Qualcomm's market power to be in the national interest, it is clear that QCOM's days of high margin licensing could be over.Without high margins, it becomes tougher to justify Qualcomm's valuation. With nonexistent growth, investors need a reason to keep bidding up QCOM shares. Qualcomm Earnings: Where is the Growth?QCOM last announced earnings on May 1st. For the quarter ending March 31, 2019, sales were down 5% year-over-year (YoY), primarily due to declines in the company's QTL licensing segment (down 8% YoY).Non-GAAP EPS for Q2 FY19 was 77 cents a share, about the same (78 cents) as in Q2 FY18.The company's aggressive share buyback program has been a factor in maintaining EPS. Qualcomm bought back $22.6 billion worth of shares in FY18, and has already bought back $1.02 billion in FY19. The company has $7.8 billion remaining under their current stock repurchase program.Qualcomm has also been able to maintain EPS via cost cutting. As discussed in the last 10-Q, QCOM successfully reduced annual operating costs by $1 billion.But to move the needle, Qualcomm needs organic growth. While the adoption of 5G is a solid future catalyst, it could be years before the new technology reaches critical mass. Qualcomm's investor communications speak little of "game-changers" in the pipeline.However, even with a lack of a growth story, Qualcomm does not trade at a discount. Let's take a look at its earnings multiples relative to peers: QCOM Stock Fairly ValuedCompared to its peers in the semiconductor space, Qualcomm's valuation seems reasonable. QCOM stock trades at 15 times forward earnings, and has a EV/EBITDA ratio of 14.9.Here are the earnings multiple metrics for Qualcomm's peers:Intel (NASDAQ:INTC): 11x forward earnings, EV/EBITDA of 7.3Texas Instruments (NASDAQ:TXN): 20.6x forward earnings, EV/EBITDA of 15.4Broadcom (NASDAQ:AVGO): 12x forward earnings, EV/EBITDA of 14.2With Qualcomm stock trading at EBITDA multiples similar to AVGO and TXN, it is hard to make a value case for QCOM. Until a solid discount to peers emerges, it is tough to find a compelling reason to enter the stock. Bottom Line: Avoid QCOM StockFor investors looking to enter Qualcomm today, the stock is not a buy. Despite the reprieve from the DoJ, Qualcomm's competitive advantage is materially impacted by the FTC decision.If the high operating margins of licensing are impacted, it becomes tougher to justify QCOM stock's current valuation. QCOM could be a buy if it starts trading at a discount to TXN and AVGO, but for the time being the stock appears fairly valued relative to its peers.On the other hand, QCOM could be attractive to dividend investors. As InvestorPlace contributor Brad Kenagy pointed out, QCOM offers a fairly high dividend yield (3.3%). Coupled with the company's buyback strategy, QCOM shareholders could see benefit even if the share price treads water.The next big move in QCOM stock will likely come from the company's earnings announcement on July 31st. Excluding the one-time item from the Apple agreement, QCOM projects quarterly non-GAAP diluted EPS to be between 70 cents and 80 cents per share, down 20-30% YoY.If QCOM exceeds expectations, shares could see a bump. But given they are not out of the woods regarding the antitrust decision, additional upside remains limited.Investors should take all of these factors into consideration before initiating a position in Qualcomm stock.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Qualcomm Earnings Still Threatened by FTC Ruling appeared first on InvestorPlace.
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Dr. Joe Duarte, technical expert and editor of In the Money Options, chose Texas Instruments (TXN) as his top investment idea for 2019. The stock has since risen 21.4%. Here's his latest update on the chip stock.
Texas Instruments (TXN) 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.
TI's 60-nA IQ buck converter increases efficiency and shrinks solution size in a variety of battery-powered industrial and personal electronics applications DALLAS , July 15, 2019 /PRNewswire/ -- Texas ...
DALLAS , July 9, 2019 /PRNewswire/ -- Texas Instruments Incorporated (TI) (NASDAQ: TXN) will webcast its second quarter 2019 earnings conference call on Tuesday, July 23 , at 3:30 p.m. Central time . Rafael ...
(Bloomberg) -- With the U.S. economic expansion getting longer and longer, nervous investors are pouring money into funds tracking the investment factor known as “quality.” It’s a category whose composition has changed.Gone are the days when having a rock-solid balance-sheet meant you made food, sold clothes or built industrial infrastructure. Now, technology firms are king, with chip manufacturers overrunning the list. The rules are the same -- quality denotes a high return on equity, low debt and lots of free cash flow. But the businesses that qualify have evolved.“These tech companies have kind of grown up and they meet the criteria,” said Nick Kalivas, senior equity product strategist for Invesco Ltd.’s ETF business. “They’re still more cyclical than kind of the old-school quality, so that’s a really interesting dynamic that has surfaced.”For bubble-watchers, it’s another example of how much the market has changed since the dot-com days. Agents of volatility back then, computer and software makers now are some of the oldest and most profitable firms around. Their contribution to the S&P 500’s overall earnings has quadrupled in two decades.Smart-beta ETFs that focus on quality stocks have taken in $3 billion in 2019, the best half-year period on record. As investors question the staying power of the bull run and economic cycle, finding companies with sound finances and profitability has become a priority.The $1.5 billion Invesco S&P 500 Quality ETF, which trades under the ticker SPHQ, devotes more of its cash to technology stocks than any other sector. A Bloomberg Portfolio analysis shows the fund’s tech allocation has steadily risen over the past decade, and now the ETF holds just about double the amount of tech stocks it did at the end of 2009.While much of that is in software and services, semiconductor stocks also have a bigger role. For years, Linear Technology Corp. was the lone semiconductor company that met the criteria for inclusion in the Invesco quality fund. Now there are seven, with popular names such as Applied Materials Inc., Intel Corp., Qualcomm Inc. and Texas Instruments Inc. making the cut. Linear was acquired three years ago and no longer exists.But the inclusion of more cyclical stocks also means the quality factor is experiencing a “step up” in risk, Kalivas said. Tech stocks are by nature higher-beta than their predecessors and that could amplify volatility going up and coming down. At the same time, “it’s hard to get fired for having something that returns a lot on equity, has low debt, and generates a lot of cash,” he said.Volatility has been friendly to quality owners in 2019. The Invesco S&P 500 Quality ETF is up 20% year-to-date, outperforming the broader S&P 500 Index, juiced by the 29% gain in technology stocks. Data compiled by Bloomberg shows that among the five stocks with the most influence on SPHQ, three were tech companies.Whether or not the makeover provides support when the stock market is falling is yet to be seen.“If the academic research plays out, that’s exactly what should happen,” Kalivas said. “They should not have that big downside, their ability to generate cash should support them.”To contact the reporter on this story: Sarah Ponczek in New York at email@example.comTo contact the editors responsible for this story: Jeremy Herron at firstname.lastname@example.org, Chris NagiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Of the 25 companies with the highest-paid public company CEOs in the region, 10 had some kind of turnover in the chief executive office since June 2018.
Infineon Technologies IFNNY / IFX is a leading broad-based European chipmaker with nice exposure to secular growth drivers in the industrial and automotive chip sectors. Looking at the automotive chip market, vehicles with advanced powertrain technology and safety systems require a variety of sensors and power management chips supplied by companies like Infineon. Similarly, the company's exposure to power management circuits positions it to benefit from trends in the electronics industry toward power conservation, not only in more efficient devices like industrial drives, but also in green energy solutions like solar panels.
During Tuesday night's Mad Money program, Jim Cramer mentioned that Texas Instruments could benefit from a trade truce with China. In this daily bar chart of TXN, below, we can see that prices have stalled a number of times in the $118-$120 area - not just in the past 12 months but since early 2018 (see the weekly chart, below). Price-wise the daily chart looks strong but trading volume has been declining since January, however, the On-Balance-Volume (OBV) line has only stalled in the past two months.
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TI's new current-sense amplifier and comparators enable smaller personal electronics, enterprise, industrial and communications applications DALLAS , June 25, 2019 /PRNewswire/ -- Texas Instruments (TI) ...
Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date. What Happened? The Dow closed at 828.85. Today, the Dow is trading at 26,727 and the S&P 500 is trading at 2,945. What Else Was Going On In The World?
Fiscal 2019 has been an interesting year for Broadcom (AVGO). Its revenue has fallen due to weak demand in the wireless communications market, but its profit margins have risen due to declining costs. While Broadcom is succeeding in improving its margins, profit is falling in dollar terms because of declining revenue.
After reading Texas Instruments Incorporated's (NASDAQ:TXN) most recent earnings announcement (31 March 2019), I found...
When Texas Instruments Incorporated (NASDAQ:TXN) released its most recent earnings update (31 March 2019), I wanted to...
The BAML survey highlighted the fact that investors are very bearish on growth expectations. A net 50% of the respondents expect global growth to weaken over the next 12 months. A record number of investors said that the global economy was in the late cycle.
New communication capabilities integrate EtherCAT, Ethernet and CAN FD for motor drive, factory automation and high-power grid applications DALLAS , June 19, 2019 /PRNewswire/ -- Texas Instruments (TI) ...
(Bloomberg) -- Shares of semiconductor companies rallied on Tuesday as optimism that trade tensions between the U.S. and China could be easing pushed investors to look past a growing consensus that an industry rebound is unlikely to occur in the second half of the year.The Philadelphia semiconductor index advanced as much as 5%, compared with a 1.4% increase in the S&P 500 Index. Among notable gainers, Nvidia Corp. rose 6.8% while Micron Technology Inc. jumped 6.8% and Western Digital Corp. added 6.4%. Texas Instruments Inc. gained 4.2% while Intel Corp. rose 4%.The advance came after President Donald Trump said he had a “very good” phone conversation with Chinese President Xi Jinping and that he would hold an “extended meeting” with him at the G-20 meeting. Trump had previously threatened to raise tariffs if Xi didn’t sit with him at next week’s meeting in Japan.Chipmakers have been highly correlated to the trade issue, as the companies derive a hefty percentage of their revenue from China. The country is also a key part of their supply chains. Recently, semiconductor volatility rose after the Trump administration blacklisted Huawei, a major consumer to a number of semiconductor companies. Last week, Broadcom Inc. cut its full-year sales forecast because of trade risks and its Huawei exposure.“Huawei casts a large shadow,” Stifel analysts wrote on Tuesday. “There is no getting around its significance.” Analyst Brian Chin lowered his estimates for a number of semiconductor companies for the second half of the year, saying that the industry’s “malaise” in May was “now too acute to ignore.”That view was echoed by analysts at KeyBanc Capital Markets in a report dated June 17. The firm wrote that “the recent U.S./China trade war escalation, including the Huawei ban, has dashed hopes for a 2H recovery for broad-based semiconductors.” Analyst Weston Twigg added that a trip to Asia “left us more cautious” on the industry, and that there was an “increased risk to forward estimates” as the trade dispute “has led to a meaningful decline in bookings.”Deutsche Bank analysts recently returned from an Asia trip of their own, emerging “more cautious on the semiconductor and semicap sectors” as a result, “especially given that the often promised H2 rebound is looking increasingly optimistic.”Analyst Rob Sanders wrote that trade tensions were “significantly elevating uncertainty surrounding near- and mid-term business conditions,” and that “in most instances, this uncertainty is acting as a headwind to demand.”The escalation in trade-related tensions came at a time when the industry has already been struggling with weak demand and high inventory levels. According to the Semiconductor Industry Association, total semiconductor sales sank 17.7% in April, its most recent month of data.To contact the reporter on this story: Ryan Vlastelica in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Jennifer Bissell-Linsk, Richard RichtmyerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Broadcom (AVGO) presented their second quarter earnings on Thursday after market close, and the call, as described by CNBC's Jim Cramer, was "truly depressing."
Global equities are under pressure on Friday as traders worry about the fallout from the attack on two energy tankers in the Persian Gulf as well as dismal economic data out of China, where industrial output growth slowed to a 17-year low.Semiconductor stocks are getting hit hard, with the pressure beginning over in Europe with names like Infineon, AMS and STMicroelectronics (NYSE:STM) feeling the hurt after Broadcom (NASDAQ:AVGO) cut forward guidance and warned of a demand slowdown due to a tech ban resulting from U.S.-China trade tensions.All eyes are now turning towards the Federal Reserve's next policy announcement on June 19, with hopes high that officials heed the message of the futures market and prepare for interest rate cuts later this year. The promise of easier credit could help juice the market higher as the economic data worldwide becomes more and more disappointing.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe specter for disappointment is extremely high, however, with history reminding us that the majority of prior Fed interest rate cuts come as a recession is already in flight. If so, the selling could well intensify, led by the makers of the silicon "raw materials" of our modern economy: Semiconductors. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 Here are four stocks in the industry to consider selling: Semiconductor Stocks: Intel (INTC)Intel (NASADQ:INTC) shares continue to languish below their 200-day moving average, marking a 22% decline from the late-April high a continuing a long sideways range going back to late 2017. A breakdown below critical support near the $42-a-share level would result in a likely decline back to the 2016-2017 trading range near $34, which would be worth a loss of more than 25% from here.The company will next report results on July 25 after the close. Analysts are looking for earnings of 90 cents per share on revenues of $15.6 billion. When the company last reported on April 25, earnings of 89 cents per share beat estimates by two cents. Nvidia (NVDA)Nvidia (NASDAQ:NVDA) shares are simply unable to get up off the mat, as the onetime momentum sweetheart languishes near its late December lows and remains well below its 50-day and 200-day moving averages. A slowdown in GPU sales, a loss to AMD (NASDAQ:AMD) on upcoming gaming console refreshes from Sony (NYSE:SNE) and Microsoft (NASDAQ:MSFT), and a popping of the bitcoin bubble have all contributed to the downturn. * 7 High-Quality Cheap Stocks to Buy With $10 The company will next report results on Aug. 15 after the close. Analysts are looking for earnings of $1.14 per share on revenues of $2.6 billion. When the company last reported on May 16, earnings of 88 cents per share beat estimates by seven cents on a 31% drop in revenues. Texas Instruments (TXN)Shares of Texas Instruments (NASDAQ:TXN) are rolling down what looks like the right shoulder of a nasty-looking head-and-shoulders reversal pattern bounced by a neckline that coincides with its 200-day moving average. A breakdown here would trace down to a decline back to its late-December lows, worth a loss of roughly 15% from here. Earlier in the month, analysts at Cascend Research noted that demand for power chips in the industrial, automotive, and consumer products area was weakening at a 18%-plus pace year-over-year. This was the worst result in eight years and will weigh on TXN stock's top line results.The company will next report results on July 23 after the close. Analysts are looking for earnings of $1.22 per share on revenues of $3.6 billion. When the company last reported on April 23, earnings of $1.26 beat estimates by nine cents on a 5.1% decline in revenues. Broadcom (AVGO)Broadcom shares are down sharply, nearly 7% as I write this, testing their 200-day moving average average. Management cut its forward guidance as part of its quarterly earnings report, warning that fiscal 2019 results would be dampened by waning demand and ongoing trade tensions. There are a few silver linings, from 10% expected bump in content growth thanks to the 5G wireless rollout to module wins in the upcoming Apple (NASDAQ:AAPL) iPhone 11. * 7 Stocks to Buy for the Coming Recession The company will next report results on Sept. 12 after the close. When the company last reported on June 13, earnings of $5.21 beat estimates by three cents on a 10% rise in revenues.As of this writing, William Roth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors Compare Brokers The post 4 Semiconductor Stocks to Sell appeared first on InvestorPlace.