Chipmaker Qualcomm on April 23 reported revenue of $6.9 billion on net income of $1.05 billion, or $1.40 per share, for its fiscal 2015 second quarter ended March 29.
Although net income was down 46% compared to the prior year’s Q2, the results still surpassed the expectations of analysts, who were estimating earnings per share of $1.33 on revenue of $6.8 billion.
Looking ahead, however, the San Diego-based chipmaker lowered its guidance for the coming year to between $4.60 and $5 per share on revenue between $25 billion and $27 billion. This is down compared to its previous statement that it expected to earn $4.85 and $5.05 per share on revenue of between $26.3 billion and $28 billion. Qualcomm cited the lowered outlook as a result of the loss of “ a large customer” as well as delays in product launches by some smartphone makers using its flagship chip. Still, TheStreet’s ratings team rated Qualcomm a “Buy,” citing strengths such as revenue growth, reasonable debt levels and an “impressive record of earnings per share growth and increase in net income.” Meanwhile, Exane BNP Paribas downgraded the stock from “Outperform” to “Neutral.”
Intel on April 15 reported revenue of $12.8 billion on net income of $1.99 billion, or 41 cents per share, for the first quarter ended March 28.
Revenue was flat compared to the year prior and slightly below analysts’ average estimate of $12.9 billion. Net income was up compared to $1.93 billion, or 38 cents per share, the year before.
The results were not unexpected considering that the chipmaker had cut its first-quarter revenue forecast by nearly $1 billion to $12.8 billion in March, citing weak demand for PCs that use the company’s chips.
“I think the full-year guidance being flat year over year [is] supportive of a stable PC environment, despite the first-quarter weakness,” Topeka Capital Markets analyst Suji Desilva was quoted by Reuters as saying.
Intel also said it would slash 2015 capital expenditures to $8.7 billion from $10 billion in a move that analysts said should improve free cash flow.
On Jan. 25, NVIDIA posted revenue of $4.68 billion for FY 2015, a record for the company and up 13% from 2014. Fourth-quarter revenue of $1.25 billion was also a record and up 9% from 2014. NVIDIA also reported net income of $193 million for Q4, an increase of 40% compared to the year prior and exceeding analysts’ expectations.
NVIDIA’s fiscal 2016 first quarter results are due out on May 7. A recent Zacks Industry Rank Report noted that analysts appear more bullish as of late on the company’s prospects in both the short- and long-term. Over the past month, current quarter estimates have climbed to 26 cents per share compared to 25 cents per share while current-year estimates have increased to $1.20 per share compared with $1.18 per share. Zacks has a “Buy” rating on the stock.
On April 21, British chip designer ARM Holdings reported Q1 revenue and earnings that exceeded analysts’ expectations.
Revenue for the three months ended March 31, rose 14% to $348 million, yielding EPS of 31.7 cents per American Depository Receipt (or 7.1 pence compared to 5.6 pence) in the year ago Q1.
“As the world becomes more digital and more connected, we continue to see an increase in the demand for ARM’s smart and energy-efficient technology, which is driving both our licensing and royalty revenue,” said Simon Segars, ARM Holdings’ CEO, in a written statement.
ARM’s licensing business was up 3% to $133.2 million, and its royalty business surged 28% to $184.7 million.
Apple Inc. is an ARM licensee.
Canaccord Genuity reiterated a Buy rating on the stock, and raised its price target to $63 from $60.
Freescale Semiconductor on April 23 reported Q1 revenue of $1.17 billion on net income of $70 million, after reporting a loss in the same period a year earlier, according to Associated Press reports.
On a per-share basis, the Austin, Texas-based computer chipmaker posted net income of 22 cents. Earnings, adjusted for costs related to mergers and acquisitions and stock option expense, amounted to 48 cents per share.
The results exceeded analysts’ expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 45 cents per share.
The computer chipmaker posted revenue of $1.17 billion in the period. Four analysts surveyed by Zacks expected $1.16 billion.
For the current quarter ending in June, Freescale Semiconductor said it expects revenue in the range of $1.16 billion to $1.21 billion.
Freescale Semiconductor’s shares have increased 58 percent since the beginning of the year. In the final minutes of trading on April 23, shares reached $39.98, a 61% increase in the last 12 months.
Also, the Austin Business Journal reported on April 22 that Freescale Semiconductor plans to begin designing the process for merging with NXP Semiconductors NV next month. The proposed $11.8 billion merger is slated for completion during the second half of the year, according to the ABJ.
4G chipmaker Sequans Communications on April 23 announced Q1 revenue of $4.8 million and a net loss of $8 million, or 14 cents per diluted share/ADS.
For the three months ended March 31, revenue was up 7% compared to Q1 2014 mainly because of new design wins in the U.S. The company had reported a net loss of $8.3 million, or 14 cents per diluted share/ADS, in the first quarter of 2014.
Analysts were expecting earnings per share of 13 cents.
Silicon Laboratories on Feb. 4 reported record Q4 revenue of $161.9 million, beating analyst earnings estimates. The company saw its shares jump by more than 8% on Feb. 4 in response to the results and news of its plans to acquire Finland’s Bluegiga Technologies for $61 million in a cash deal.
The Austin company is due to release Q1 earnings on April 29. In February, the company said it expected revenue in Q1 to be in the range of $156 million to $162 million and diluted earnings per share to be between 8 cents and 14 cents on a GAAP basis and between 42 cents and 48 cents on a non-GAAP basis.
On Feb. 9, MediaTek reported worse-than-expected Q4 earnings.
Sales at MediaTek were down 3.5% from the third quarter to $1.8 billion – in line with the company guidance and consensus estimate, according to Barrons.com.
However, MediaTek’s operating profit margin dropped by 6.2% to 17.8%, missing the company’s own guidance of 24-28%. The Taiwanese company’s management said it spent money on intellectual property licenses and hired aggressively to establish a broader global footprint. As a result, earnings per share was 22 cents, missing consensus by 14%.
Looking ahead, the company expects revenue to grow by 10-20% this year, vs. the 14% expected by analysts and for its market share in China to double from 20% last year. UBS upgraded the stock’s rating to “Buy.” Meanwhile, Credit Suisse meanwhile, which also has a Buy rating, lowered its price target.
