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Apple Supplier NXP Semiconductors Earnings Top On Eve Of Apple Report

Apple ( AAPL ) supplier NXP Semiconductors ( NXPI ) late Monday reported first-quarter earnings that fell a little less than estimates, a day before Apple itself is expected to report declining profit and a sharp drop in iPhone sales. NXP Semi gave guidance that was in line to slightly above forecasts. Earnings per share fell nearly 16% to $1.14 a share excluding various items vs. $1.35 a year earlier. Revenue, fueled by acquisitions, climbed about 52% to $2.224 billion from $1.467 billion a year earlier. Economists had expected EPS of $1.09 and sales of $2.21 billion. Comparable revenue fell 11% vs. a year earlier, NXP said, citing “semiconductor industry weakness that accelerated throughout the second half of 2015.” For Q2, NXP Semiconductors sees revenue of $2.295 billion to $2.395 billion, with the midpoint at $2.345 billion. It expects EPS of $1.30-$1.40, with the midpoint at $1.35. Analysts expected EPS of $1.32 and revenue of $2.34 billion. For the full year, Wall Street had projected EPS of $5.64 and sales of $9.54 billion. NXP Semiconductors is a leading chip supplier for the Apple iPhone and Samsung smartphones. But it’s also a major supplier of chips for the auto industry, especially after its recent acquisition of Freescale Semiconductor. Auto-related sales hit $805 million, up 167% vs. a year earlier on a reported basis, or just 1% with Freescale’s year-earlier results included. NXP will hold its post-earnings conference call before the market open Tuesday. NXP released its results well after the market close, so investors will have to wait until Tuesday pre-market trading to get some indication of how the stock will react. Shares closed down 1.2% to 83.34 on the stock market today . NXP is not in the latest Apple Retina MacBook, according to an iFixit teardown , after having several chips in the 2015 model, while Broadcom ( AVGO ) and Texas Instruments ( TXN ) remain big chip suppliers. Texas Instruments reports earnings on Wednesday. Texas Instruments closed up 0.6% on Monday. Broadcom fell 0.8%. Apple retreated 0.6% to 105.08, approaching its  50-day moving average. Analysts expect Apple earnings to fall 14% to $2 a share and sales 10% to $51.97 billion, with iPhone unit sales down 21%.

How Much Will iPhone Sales Fall In Apple’s March Quarter?

Apple ( AAPL ) investors are bracing for bad news in the company’s fiscal second-quarter report due out after the market close Tuesday. Apple executives have already signaled that iPhone unit sales will fall on a year-over-year basis for the first time ever in Q2. The big money questions are: How much will iPhone sales fall and how will the product fare ahead of the fall launch of the iPhone 7? Wall Street analysts on average expect Apple to report fiscal Q2 iPhone sales of about 50 million units. That compares with 61.17 million units in the same quarter last year. “Given that Apple is nearing the end of the iPhone 6-series cycle and facing difficult iPhone comparisons, we are modeling a year-over-year decline in sales, profits and iPhone units in Q2,” Drexel Hamilton analyst Brian White said in a research note Monday. He remains positive on the stock because of the potential for upgrades around the iPhone 7 as well as an enhanced capital return program for shareholders expected to be announced Tuesday. White rates Apple stock a buy, with a price target of 200. Apple fell 0.6% to 105.08 on the stock market today . White is modeling for Apple to sell 48.05 million iPhones in Q2, down 21%. He predicts that Apple will sell 39.05 million iPhones in fiscal Q3 and 42.05 million in fiscal Q4, down 18% and 12%, respectively. RBC Capital Markets analyst Amit Daryanani on Sunday reiterated his outperform rating on Apple stock with a price target of 130. He predicts that Apple sold 48.3 million iPhones in the March quarter. Cowen analyst Timothy Arcuri on Sunday maintained his outperform rating on Apple stock with a price target of 135. Arcuri is modeling for Apple to sell 47 million iPhones in fiscal Q2. He is looking for Apple to sell 44.5 million units in Q3 and 50.5 million units in Q4, down 6% and up 5%, respectively. BMO Capital Markets analyst Tim Long estimates that Apple sold 52 million iPhones in the March quarter, down 15%. For the June quarter, he sees 44 million iPhone sales, down 7%. Analysts polled by Thomson Reuters expect Apple to earn $2 a share on sales of $51.97 billion in the March quarter. On a year-over-year basis, earnings per share are forecast to fall 14% with sales down 10%. It would mark the company’s first quarterly decline in EPS in nearly three years and first drop in sales since 2003. For the current quarter, Wall Street is modeling Apple to earn $1.76 a share, down 5%, on sales of $47.32 billion, also down 5%. Image provided by Shutterstock . RELATED: Apple Q2 Earnings To Clash With New Cash Return Plan

Apple Supplier Integrated Device Rated Buy; Discount ‘Unwarranted’

Apple ( AAPL ) Watch supplier Integrated Device Technology ( IDTI ) is outgrowing the broad chip market with “superior” financial returns, a Needham analyst wrote Monday as he initiated coverage of the stock. But Integrated Device stock hasn’t recovered from a Feb. 2 nosedive that saw shares plunge 27% on the company’s massive March-quarter guidance miss. Wall Street had set the high bar after Integrated Device acquired privately-held ZMDI in December. Shares are now down 23% for the year. Intraday on the stock market today , Integrated Device stock was down more than 1%, near 20, despite Needham analyst N. Quinn Bolton’s buy rating and 26 price target. Integrated Device stock trades at an “unwarranted” discount to rivals, Bolton wrote in his research note. The company leads in its bread-and-butter wireless charging market with design wins at Samsung, Apple, LG, Ikea and Marriott ( MAR ). Bolton estimates the market will be a $500 million opportunity by 2020. By 2019, the market for memory interfaces — which improve computer memory bandwidth in servers — will grow to a $452 million opportunity from $144 million in 2011, Bolton estimates. “Though we expect a pause in Integrated Device’s memory interface revenue in 2017 as Broadwell-based servers ramp, we forecast a resumption in growth in 2018 as Intel ‘s ( INTC ) Purley platform ramps,” he wrote. Sales of high-performance, energy-efficient analog/mixed-signal chips will grow to $138 million in 2018 from $5 million in 2014, he says. Integrated Device diversified into that segment with its ZMDI acquisition.