Tag Archives: aapl

Skyworks Guidance Lags By $50 Mil On Petering Apple iPhone Demand

Apple ’s ( AAPL ) “iPhone drag” tugged Skyworks Solutions ’ ( SWKS ) fiscal Q3 guidance by $50 million late Thursday, prompting shares of radio-frequency chip rivals Broadcom ( AVGO ) and Qorvo ( QRVO ) to topple early Friday. Skyworks stock led a broad Apple chip sphere fall, down 4.5%, near 68, in morning trading on the stock market today . Shares of competitors Broadcom and Qorvo were down a respective 2% and 2.5%. NXP Semiconductors ( NXPI ), Qualcomm ( QCOM ) and InvenSense ( INVN ) stocks followed, down 1%, 3% and 4%, respectively. Apple stock was down 2%. For its fiscal Q2, which ended April 1, Skyworks reported $775.1 million in sales and $1.25 earnings per share minus items, in line and topping the consensus of 25 analysts polled by Thomson Reuters for $775.6 million and $1.24. But EPS slipped to single-digit growth for the first time in 13 quarters, rising 9% year over year. Sales rose 2%, in the single-digit range for the first time in 14 quarters. Both metrics have decelerated for five consecutive quarters. Current-quarter guidance for $750 million in sales and $1.21 EPS ex items would be down 7% and 10%, respectively, vs. the year-earlier quarter. On a year-over-year basis, sales have never declined in the past five years. EPS has declined twice, but this quarter’s decline would be the biggest. And both metrics lagged the consensus for $800.5 million and $1.32. Mizuho analyst Vijay Rakesh blamed the “iPhone drag” for Skyworks’ weak guidance. On Tuesday, Apple reported its first year-over-year decline in iPhone sales and its first quarterly revenue drop in 13 years. Apple CEO Tim Cook said Tuesday that the company planned to cut channel inventories in the June quarter “in light of the macroeconomic environment.” Late Tuesday, supplier Cirrus Logic ( CRUS ) offered Q3 guidance that also missed Wall Street views. But Skyworks expects a strong September quarter, with 20% and 40% content gains at Samsung and Huawei. On average, Chinese smartphones are growing content by 20% year over year, Rakesh wrote in a research report. Rakesh cut his price target on Skyworks stock to 99 from 105 but reiterated a buy rating. Cowen analyst Timothy Arcuri estimates that 40 million to 50 million iPhones will be sold in the June quarter, leading to better upside in Skyworks’ fiscal Q4. But he adds that Qorvo might be a stronger RF competitor now. Both analysts suggest that Skyworks look to diversify amid the slowing Chinese and iPhone markets. Arcuri reduced his price target on Skyworks stock to 76 from 78 and kept his market perform rating.

A Google-Fiat Chrysler Self-Driving Alliance Is So Crazy It Could Work

Alphabet ( GOOGL ) is in late-stage talks with Fiat Chrysler ( FCAU ) about a partnership regarding autonomous vehicles, according to multiple reports Thursday. At first glance, it seems like a crazy idea. Why would Alphabet’s Google want to team up with Fiat Chrysler. The automaker has invested very little in autonomous technology, largely sitting out the Detroit-Silicon Valley autonomous arms race involving the likes of Alphabet, Tesla Motors ( TSLA ), General Motors ( GM ), Toyota ( TM ), Ford ( F ) and Apple ( AAPL ). Indeed, Fiat Chrysler is unusually dependent on high-margin, gas guzzling Jeeps and pickups. And its major brands are usually at or near the bottom of quality surveys. But Fiat Chrysler has the virtue of its defects. Alphabet has sought alliances for years with major automakers on self-driving cars, lacking any experience in mass-producing vehicles or handling a far-flung dealer network. Fiat Chrysler CEO Sergio Marchionne has been looking for industry alliances or mergers to beef up the size of his company. Many experts believe that midsize companies such as Fiat Chrysler will have trouble investing enough — and spreading out those costs on sufficient sales — to keep up with global giants. Simply put, Fiat Chrysler needs Google more than General Motors. GM has made several related acquisitions and has invested in Lyft as part of an alliance with the ride-hailing service that involves autonomous efforts. As as a result, Alphabet’s self-driving arm might be able to drive a better bargain with Fiat Chrysler. Also, AutoExtremist.com , which first reported on the story, said an alliance might include an autonomous version of Chrysler’s Pacifica minivan. Apple, Tesla News Separately, Apple may have dropped some Apple Car hints Thursday in an SEC filing stating that “off-balance sheet obligations” were up 75% year over year to $12 billion, with some of the spike possible due to Apple’s “Project Titan car efforts. Tesla Motors reports first-quarter earnings next week, as does Mobileye ( MBLY ). Mobileye’s camera-based systems are being used by Tesla and several other major carmakers for semi- and fully autonomous car efforts.

Facebook Surges To New All-Time High But Closes Below Buy Range

Loading the player… After Facebook ’s ( FB ) stellar quarterly report Wednesday evening, the social networking giant’s stock hit a new all-time high in the stock market today . For most of the day, the stock was trading in buy range, but Facebook closed the regular session just below that level. The attempted breakout comes as other big names have recently neared buying opportunities but crumbled on their quarterly results, including Google owner Alphabet ( GOOGL ), Microsoft ( MSFT ) and Starbucks ( SBUX ). Facebook’s earnings jumped 83%, while sales grew 52%. Both topped views and marked a third straight quarter of accelerating growth for the top and bottom lines. Shares jumped 7.2% in huge volume, hitting a new all-time high  and breaking out of a cup-with-handle base with a 117.09 buy point in intraday trade. But the stock faded as the market sold off and closed the day at 116.73. After hours, the stock rose a fraction to reclaim the buy point. Facebook earns an IBD Composite Rating of 95 out of 99, meaning its shares outperform 95% of all stocks in the market, based on fundamental and technical factors. IBD’s Take: How healthy are the shares of Facebook and its rivals? Find out at IBD Stock Checkup Alphabet gapped below its 50-day line after its report last week. Shares tested support at the 200-day line in Wednesday’s session and are breaching that level today. Alphabet is now trading 12% below its February high, down 2.3% in intraday trade. Microsoft also gapped below its 50-day line in the wake of its results last week. Shares are breaking below their 200-day line in intraday trade Thursday, falling 2%, and are about 12% below their December peak. Starbucks is now trading below its 50-day and 200-day lines, and hit a new two-month low in intraday trade as it fell 0.8%. Shares are 11% below their October high. And while Apple ( AAPL ) wasn’t near buy range ahead of its report Tuesday night, shares gapped down to a two-month low on disappointing results. Apple is 28% below its high, reached exactly one year ago today, with shares down 3.1%. Meanwhile, Amazon ( AMZN ) was flirting with trading in buy range ahead of its quarterly report after the close. Shares jumped late on view-topping results.