Category Archives: oud
Does Analog Devices’ Soft Q3 Guidance Prove Apple’s iPhone 7 Cut?
Apple ‘s ( AAPL ) iPhone 7 expectations might have dug into guidance provided Wednesday by Analog Devices ( ADI ), as the 3D Touch supplier topped Q2 expectations but guided to current-quarter sales that would dip 5% year over year. In early trading on the stock market today , Analog Devices shares were up a fraction, near 55.50. Fellow Apple suppliers Broadcom ( AVGO ), NXP Semiconductors ( NXPI ), Skyworks Solutions ( SWKS ) and Qorvo ( QRVO ) were up all by close to 2% or more. For its fiscal Q2 ended April 30, Analog Devices reported $779 million in sales and 64 cents earnings per share ex items, down a respective 5% and 12% vs. the year-earlier quarter. It was the first quarter in nine that Analog Devices’ sales have fallen and the second period of declining EPS. But both metrics beat the consensus of 29 analysts polled by Thomson Reuters for $777.6 million and 62 cents, as well as Analog Devices’ own guidance issued three months ago. Consumer sales toppled 27% year over year, leading a 3% fall in communications sales, Analog Devices said. Industrial and automotive sales — Analog Devices’ bread-and-butter segments — fell 1% apiece. For fiscal Q3, Analog Devices CEO Vincent Roche sees a return to consumer market growth and mid- to high-single-digit growth in the company’s business-to-business segments. But the high point of ADI’s Q3 sales and EPS guidance lagged Wall Street consensus. Analog Devices guided to $800 million to $840 million in sales and 66-74 cents, down a respective 5% and 9% vs. the year-earlier quarter, missing analysts’ model for $846.6 million and 75 cents. On average, Analog Devices’ Q3 sales have grown 13.5% year over year, trailing 20% growth in Q4. But recent reports indicate Apple might have cut its component orders for the iPhone 7, expected to be released in September.
Tesla Stock Getting Attractive At This Price, Says Goldman Sachs
Electric automaker Tesla ( TSLA ) got an upgrade Wednesday, as Goldman Sachs said the current share price isn’t accounting for the firm’s “disruptive potential.” Goldman Sachs analyst Patrick Archambault lifted his rating on Tesla stock to buy from neutral, though he kept his price target at 250, as the stock has fallen well below that level over the last three weeks. Tesla stock was up 4% in early trading on the stock market today , near 213. “While we believe the (production) volume targets are ambitious, Street and investor expectations seem more grounded, and following a 23% decline in the share price post the Model 3 unveil , we do not believe Tesla shares are fully capturing the company’s disruptive potential,” Archambault wrote in his research note. “This, combined with a more stable macro backdrop (relative to January/February) and increased confidence in Model 3 demand (from orders and our competitive benchmarking), drives attractive risk/reward.” Unlike his counterpart at Evercore last week, Archambault didn’t sound confident that Tesla could achieve its goal of 500,000 vehicles built by 2018, a new target CEO Elon Musk announced in Tesla’s its Q1 earnings report this month. The new goal is two years earlier than planned. But Archambault also thinks that most of Wall Street doesn’t really believe it either, lowering the downside risk. “While management was not clear why goals were set so aggressively, we view the adjustment as a target aimed at motivating employees and suppliers,” wrote the analyst. “We also believe these projections are heavily discounted with Street estimates for 2018 EBITDA and net income (excluding some of the more extreme outliers) coming in 21% and 24% below our base case.”