Apple Chipmaker Integrated Device Tops Q4 Views On Record Sales

By | May 3, 2016

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Integrated Device Technology ( IDTI ) stock rocketed early Tuesday after the Apple ( AAPL ) Watch and Samsung Galaxy supplier topped analysts’ fiscal Q4 and full-year estimates on record quarterly and wireless charging sales. Needham analyst Quinn Bolton reiterated a buy rating and upped his price target on Integrated Device stock to 27 from 26. Integrated Device’s fiscal Q4 included the completed acquisition of privately held ZMDI. For the quarter ended April 3, Integrated Device reported $189.4 million in sales and 36 cents earnings per share minus items, up a respective 20% and 24% vs. the year-earlier quarter. Wall Street had modeled $187.1 million and 33 cents. Three months ago, Integrated Device guided to $187 million in sales, plus or minus $5 million. Integrated Device wrapped up fiscal 2016 with $697 million in sales and $1.37 EPS ex items, crushing the consensus of 12 analysts polled by Thomson Reuters for $695.2 million and $1.34. Year over year, sales and EPS grew 22% and 49%, respectively. Current-quarter sales guidance for $191 million, plus or minus $5 million, met the consensus for $191.6 million and would be up 6% vs. the year-earlier quarter. Integrated Device stock was up nearly 7% in early trading in the stock market today , near 21. But shares are down 20% this year, hurt by a 27% plunge on Feb. 2 after the chipmaker’s fiscal Q4 sales guidance missed expectations. Wireless charging sales hit $19 million in Q4, CFO Brian White told analysts on the company’s earnings conference call late Monday. In that segment, Integrated Device supplies the Apple Watch and Samsung Galaxy. Consumer end-market sales, which include wireless charging sales, rose 53% quarter over quarter and represented 17% of total sales (about $32.2 million), CEO Greg Waters said on the call. That business benefited from a full quarter of ZMDI’s sensors. Automotive and industrial sales of $16 million exceeded views by $2 million, Bolton wrote in a research report. Communication and computing sales, however, declined by a respective 7% and 10% quarter over quarter. For fiscal Q1, communications and auto/industrial sales are expected to grow a respective 1% and 6% sequentially. Consumer and computing sales are modeled flat. Integrated Device trades at a steep discount, Bolton wrote. “IDT holds leading market segment share in products that accounted for 77% of fiscal 2016 revenue,” he wrote. “IDT’s revenue concentration in these four segments may be a reason IDTI trades at a discount to its peer group.” Scalper1 News

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