119.20 +0.06 (0.05%)
After hours: 7:22PM EST
|Bid||119.00 x 1100|
|Ask||120.90 x 1200|
|Day's Range||117.75 - 120.40|
|52 Week Range||66.29 - 128.48|
|Beta (5Y Monthly)||1.24|
|PE Ratio (TTM)||24.94|
|Earnings Date||Apr 29, 2020 - May 03, 2020|
|Forward Dividend & Yield||1.76 (1.51%)|
|Ex-Dividend Date||Feb 09, 2020|
|1y Target Est||129.80|
Shares of companies that supply Apple Inc. fell Tuesday after the iPhone maker issued a profit warning Monday because of COVID-19, the disease cause by the novel coronavirus. Apple shares fell more than 2% Tuesday after the iPhone maker said it will miss quarterly revenue targets because of the outbreak. The announcement hit shares of chip suppliers with the PHLX Semiconductor Index falling 1.8% Tuesday. Shares of Micron Technology Inc. declined 1.5%, Qualcomm Inc. shares fell 1.8%, Skyworks Solutions Inc. shares fell 2%, Qorvo Inc. dropped 2.7%, Cirrus Logic Inc. shares fell 3%, Broadcom Inc. shares fell 2.1%, and Intel Corp. shares were down 2%.
U.S. stocks dropped on Tuesday after a surprise sales warning from tech bellwether Apple highlighted the impact of the coronavirus outbreak on global supply chains. The news also sent Apple suppliers, including Qualcomm Inc , Broadcom Inc, Qorvo Inc and Skyworks Solutions Inc, lower by 1.8% to 2.3%.
Technology stocks dragged down Wall Street on Tuesday after a surprise sales warning from bellwether Apple fanned worries about the impact of the coronavirus outbreak on global supply chains. The world's most valuable technology firm said it was unlikely to meet its March-quarter sales guidance because of slower iPhone production and weaker demand in China, sending its shares down 2.5%.
Wall Street was set to open lower on Tuesday as a surprise sales warning from bellwether Apple fanned worries about the impact of the coronavirus outbreak on global supply chains. The world's most valuable technology firm said it was unlikely to meet its March-quarter sales guidance because of slower iPhone production and weaker demand in China, sending its shares down 2.3% in premarket trading. Apple's warning highlights issues that will eventually hurt a lot of companies with exposure to China, said Art Hogan, chief market strategist at National Securities in New York.
In 1982, the late Neil Peart wrote, with conscious irony, “constant change is here to stay.” The years since have only proved his insight, with the added twist that the true constant is the steady acceleration in the rate of change. And nowhere is that more evident than in the tech industry.The continuing shift to 5G digital is a perfect example. The new digital technology promises to thoroughly upend the cellular market, bringing in faster mobile internet connection times and download speeds, and clearer voice signals. The new tech has been available since 2017, and nationwide networks debuted in the US last year. 5G has been available at smaller scales, mainly in urban areas, since late 2018.The switchover, like any great change, promises opportunity and profit to those able to get in on the ground floor. Wall Street’s top analysts have been busy searching the market, finding those companies that are best positioned to strike it big in the 5G shift. We’ve run three of their top choices through the TipRanks Stock Comparison tool, to see where they stand now, as the “Year of 5G” get started. Let's take a closer look.Inseego Corporation (INSG)Our first stock is an IoT company. Inseego specializes in mobile connection systems for industrial internet, providing advanced modems and routers for enhanced device-to-cloud integration. It’s no surprise, then, that Inseego is deeply involved in 5G; the faster connection and download times will be essential in developing the full potential of IoT systems. Last year, Inseego took a step in that direction with the first commercially available 5G mobile broadband hotspot.Inseego’s potential as it moves toward the new digital tech is clear from the stock’s recent performance. INSG shares gained 76% in 2019, with particularly strong gains in Q4. That quarter’s earnings will be reported in early March. Analysts expect to see a net loss of 13 cents, a common occurrence for cutting edge tech companies. It’s important to remember, however, that the company’s revenues are growing. In Q3, INSG posted $62.72 million in revenues, beating forecasts by 5.4% and growing 23.8% year-over-year. A similar showing in Q4 will reinforce investors’ faith in the company.Roth Capital analyst Scott Searle, who rates 4 stars from TipRanks, says of the company, “Entering 2020 Inseego is positioned to transform its balance sheet, embark on a new enterprise product platform and solutions strategy, and benefit from general 5G momentum. Importantly, increasing spectrum availability and an expansive 5G FWA market will be key global drivers into 2021 and beyond.”Searle’s gives INSG a $9.50 price target with his Buy rating, implying an upside of 14%. (To watch Searle’s track record, click here)Overall, the average price target of $8.42 suggests a minimal upside – but also reflects the stock’s recent gains. The stock’s Strong Buy consensus rating is based on 5 Buys and a single Hold given in recent weeks. (See Inseego stock analysis at TipRanks)Skyworks Solutions (SWKS)The semiconductor industry also stands to gain from 5G, as device and equipment manufacturers buy upgraded chips to handle the new signal bands and speeds. Skyworks, which supplies chips to the wireless handset industry, is perfectly positioned to gain from this. The company’s main focus is on small-cell and MIMP tech, which are directly applicable to the 5G ramp. 5G, especially on the higher-end, is shorter ranged than existing 4G signals, and the new networks will require denser grid systems of small-cell towers and transmitters.Among Skyworks’ chief products are the RF chips that make broadband, mobile, and wireless infrastructure possible. The company is invested in Samsung and Huawei, with about 10% of sales going to the two Asian giants, but its largest customer is Apple. Apple makes up about 47% of Skyworks’ total sales, and the chipmaker provides components for the latest 5G capable iPhone models.Skyworks reported fiscal Q4 results late last year, beat both revenue and EPS forecasts. At $1.52 per share, EPS was 1.3% better than expected. Revenues came in at $827.4 million, a quarter point over expectations.More recently, the company’s fiscal Q1 results showed even stronger beats. The Q1 EPS of $1.68 was 1.8% over the forecast, while the $896.1 million in revenue beat estimates by 2%. Management credited the better-than-expected earnings and revenue to increased 5G business, especially in cell phone handsets. Mobile products made up 73% of the revenues.Wall Street’s analysts were upbeat after the Q1 report. Harsh Kumar, from Piper Sandler, wrote of the company’s Q1 performance, “Skyworks reported solid December quarter results and provided strong March quarter guidance, as both were higher than Street expectations. The company is now starting to ship 5G components to Chinese OEMs... We expect 5G to be a meaningful tailwind for Skyworks, and management sounded extremely optimistic about its prospects with the large U.S. handset OEM.”Kumar’s $140 price target implies an upside of 14% for SKWS, supporting his Buy rating. (To watch Kumar’s track record, click here)5-star analyst Ruben Roy agrees with Kumar. He wrote, “SWKS management executed well in the sometimes challenging 2019 calendar year and the Company’s margin and cash flow metrics remain amongst the best across the semiconductor group. With the 5G handset cycle now ramping, SWKS delivered results and March quarter outlook above consensus expectations.”Ruben gives SWKS another $140 price target, along with a Buy Rating. (To watch Ruben’s track record, click here)With 14 Buy ratings against 6 Holds, Skyworks has a Moderate Buy from the analyst consensus. Shares are not cheap, priced at $122, but the average price target suggests room for 10% growth on the upside – a clear incentive for investors. (See Skyworks’ stock analysis at TipRanks)MasTec, Inc. (MTZ)Our final stock today may not strike you as a clear gainer from 5G. MasTec is an engineering firm, solidly based in the energy and construction industries. The company has a 20-year history and has grown into a $4.9 billion behemoth. And, it has a workforce of trained technicians capable of actually putting up the new cell towers that expanding 5G networks require.The company is optimistic about gaining 5G construction and installation business. By mid-2019, MasTec was even reporting a labor shortage – there simply weren’t enough technicians to manage all of the installation jobs, and the company had about 15% more tenders than available crews. Recruiting and training have become major expenditures for MasTec as it works to attract 5G-related business.In the meantime, MTZ has been reporting strong earnings. For Q3, the company showed $2.02 billion in revenue, up 2% year-over-year, and EPS of $1.73. The EPS number was 6% over estimates and up 30% yoy. Looking ahead, MTZ is expected to report $1.22 EPS for Q4 on February 27. The slip from Q3 would be in-line with past performance patterns.Barclays analyst Adam Seiden writes of MTZ’s prospects, “The start of the 5G buildout has been later than anticipated, but is not a matter of if, but a matter of when. MTZ noted at a conference in Dec that both its Wireless and Wireline businesses could grow at double-digit rates until 3Q20-2Q21, when 5G spending could start to inflect even higher.”Seiden set a $75 price target on MTZ, along with a Buy rating. His price target indicates confidence in a 23% upside potential. (To watch Seiden’s track record, click here.)MTZ has only three recent analyst reviews, split 2 Buys to 1 Hold for a Moderate Buy consensus rating. The stock sells for $60.75, and the average price target of $75.67 suggests an upside potential of 24%. (See MasTec’s stock analysis at TipRanks)
U.S. stock futures have fluctuated on Monday as investors work out what to make of the latest coronavirus developments.
After a relatively soft performance in 2018, semiconductor companies delivered significantly better results in 2019 and might be poised to extend that uptrend into 2020, especially semiconductor dividend stocks with above-average yields, explains Ned Piplovic, an editor at DividendInvestor.
The wealthiest people don’t always have the biggest salaries. And the wealthiest companies aren’t necessarily those with the best earnings lately Continue reading...
Advanced Micro Devices is climbing Monday, and could end the day at an all-time high—despite the risks posed by coronavirus.
More than 100,000 people are scheduled to attend Mobile World Congress in Barcelona later this month. The coronavirus has companies re-thinking their plans.
Skyworks Solutions (SWKS) has seen solid earnings estimate revision activity over the past month, and belongs to a strong industry as well.
(Bloomberg) -- Qualcomm Inc. tamped down expectations for sales growth next quarter, saying the payoff from the introduction of smartphones capable of using new high-speed wireless networks will take longer than anticipated.The chipmaker, which has tied its success to the roll out of fifth-generation, or 5G, networks, gave a sales forecast for the second fiscal quarter that topped analysts’ estimates. But revenue will be little changed in the following three-month period ending in June, Chief Financial Officer Akash Palkhiwala said Wednesday on a conference call after earnings were reported.Analysts had predicted Qualcomm’s revenue would increase quarter over quarter through the year. Shares, which had initially gained in extended trading, fell about 2% on the remarks.Consumers have been hanging on to handsets longer as technology advances slow. Qualcomm and the rest of the industry are arguing that 5G will reverse that trend. While 5G networks are beginning to roll out, much of that demand won’t come until the introduction of new smartphones in the September quarter, Palkhiwala said.“We expect the next inflection point with the launch of additional 5G flagship handsets to be in the fourth quarter and extend into fiscal 2021,” Palkhiwala said on the call. “We expect our third fiscal quarter performance to be in line with our second fiscal quarter.”Revenue will be $4.9 billion to $5.7 billion in the fiscal second quarter, which ends in March, the San Diego-based company said in a statement. Analysts, on average, estimated $5.1 billion, according to data compiled by Bloomberg. Fiscal first-quarter sales and profit also beat estimates.The company has factored in the possible disruption of the coronavirus in China, the biggest market for smartphones, on consumer demand, Palkhiwala said.Qualcomm shares declined to a low of $86.68 in extended trading after closing at $90.91 in New York. The stock has gained 79% in the past 12 months.In the first quarter, net income fell to $925 million, or 80 cents a share, from $1.07 billion, or 87 cents, a year earlier. Excluding certain items, profit was 99 cents a share, compared with an average estimate of 85 cents.Revenue rose 4.9% to $5.08 billion in the period, which ended Dec. 29. Analysts on average had predicted $4.83 billion in sales. It was the first year-over-year sales growth in six quarters.The chipmaker is the largest provider of technology underpinning modern phone networks, making its results a key indicator of industry demand. Qualcomm predicted that as many as 1.85 billion phones will be sold in 2020, a return to growth after a decline last year.The company gets the bulk of its profit from licensing patents that it says cover the fundamentals of modern phone systems. Qualcomm charges a percentage of the selling price of each handset, payable by phone makers regardless of whether they use its chips. The company’s modems and processors provide it with the majority of revenue.Technology licensing revenue jumped 38% to $1.4 billion in the fiscal first quarter, but the company projected a decline to $1 billion to $1.2 billion in the current period. The chip division generated $3.6 billion, falling 3.2% from a year earlier. Qualcomm predicted sales will reach as much as $4.5 billion this quarter.The company is emerging from years of legal disputes and regulatory proceedings that threatened its licensing model. It still has to reach an agreement in a patent-fee standoff with China’s Huawei Technologies Co. and overturn a sweeping U.S. antitrust decision through an appeal that is due to start next week.Qualcomm settled a broad-ranging legal dispute with Apple Inc. and the iPhone maker agreed to resume using Qualcomm chips. But a Federal Trade Commission case alleged unfair business practices and Qualcomm has been ordered to renegotiate patent licenses. The company has won a stay on that decision. Other branches of the U.S. government have said they support Qualcomm’s position against the FTC and the lower court, sparking optimism it will succeed.Separately, Qualcomm disclosed in a filing that it received a request for information on Dec. 3 from the European Commission, which is investigating whether the company engaged in anti-competitive behavior by exploiting its market position in baseband processors to help it in the 5G radio-frequency chip market. Qualcomm said it’s in the process of responding.The company has increased its efforts in RF chips, which help convert radio waves into data that can be processed by other parts of a phone. It competes in the market with Broadcom Inc., Qorvo Inc. and Skyworks Solutions Inc. While Qualcomm has touted its success in RF in new handset models, 5G phones are still a fraction of the total smartphones sold.(Updates with EU investigation in the final two paragraphs)To contact the reporter on this story: Ian King in San Francisco at email@example.comTo contact the editors responsible for this story: Alistair Barr at firstname.lastname@example.org, Andrew Pollack, Jillian WardFor 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.
It looks like Skyworks Solutions, Inc. (NASDAQ:SWKS) is about to go ex-dividend in the next 4 days. If you purchase...
DEEP DIVE Remember the China-trade fear and sales decline that caused Apple’s stock to plunge? It might seem like ancient history, but the stock bottomed only a year ago. And now, with Apple’s quarterly numbers backing the huge increase in its stock price, it may be time for its biggest suppliers — and other semiconductor companies — to go along for the ride.
Semiconductor stocks were mixed on Wednesday after a rough week of trading as concerns have grown about the impact of the Wuhan coronavirus on the Chinese economy. This week, Bank of America analyst Vivek Arya said the coronavirus creates downside risk in the first quarter for semiconductor stocks, especially those exposed to smartphone, auto and industrial end-markets.