Tag Archives: avgo

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%.

Apple Retina MacBook 2016: Intel, Broadcom Inside; NXP Loses?

Heavyweight chipmakers Broadcom ( AVGO ), Intel ( INTC ) and Texas Instruments ( TXN ) again dominated as chip suppliers for the Apple ( AAPL ) Retina MacBook 2016, according to an iFixit teardown , which notes the MacBook finally joined its iPhone and iPad cousins in rose gold solidarity. The 12-inch MacBook comes equipped with “a faster processor and zippier flash memory.” Intel again supplied the core processor and an HD graphics card, and both flash-memory NAND chips (256 gigabytes) came from Toshiba. Samsung and Micron Technology ( MU ) split the difference in other memory vectors. Two Samsung chips provide a total 8 GB of RAM, and Micron supplied a single 4 GB DRAM (dynamic random-access memory) chip. Broadcom re-won its touchscreen controller and what iFixit believes to be a wireless chipset, and STMicroelectronics ( STM ) again supplied a microcontroller. Texas Instruments supplied a total of four chips, including a system management controller. The Dallas-based chipmaker showed up six times in the earlier iteration, but the 2016 teardown wasn’t as extensive as the 2015 teardown , iFixit said. Fellow Apple supplier NXP Semiconductors ( NXPI ) was seemingly ousted from the Retina MacBook 2016 logic board. In the 2015 model, the teardown showed NXP supplied a microcontroller and two interface expanders. Like its 2015 counterpart, the Retina MacBook 2016 earned a 1 out of a possible 10 in repairability from iFixit. The main reason is because the display is a single, fused unit, so “if the display needs replacing, it’ll cost a pretty penny.” In early afternoon trading on the stock market today , shares of both NXP and STMicroelectronics were down 2%, while Intel and Micron stock were each down 1%. Broadcom stock was lower by a fraction, and Texas Instruments stock was up a fraction.

Mellanox Tanks On Q2 Guide; But ‘Well Ahead’ Of Intel, Broadcom

Mellanox Technologies ( MLNX ) stock dove Thursday on weaker-than-expected Q2 guidance late Wednesday, but analysts say the IBD Leaderboard stock won’t succumb to competition from “large incumbents” Intel ( INTC ) and Apple ( AAPL ) supplier Broadcom ( AVGO ). Summit Research analyst Srini Nandury calls Mellanox stock “the name to own in this space,” talking about the Ethernet and Infiniband markets. But Mellanox stock was down 14% in midday trading on the stock market today , at a two-month low below 48. For Q1, Mellanox reported 81 cents earnings per share ex items on $196.8 million in sales, up a respective 35% and 34%. Both metrics topped the consensus of 14 analysts polled by Thomson Reuters for 75 cents and $191.7 million. IBD take: Mellanox is a big mover today, and the move is down, but it had been doing well. The Q2 guide was Wall Street’s sticking point, Credit Suisse analyst John Pitzer wrote in a research report, though he retained an outperform rating and 60 price target on Mellanox stock. Current-quarter sales guidance for $180 million to $185 million, up 12% at the midpoint, missed Wall Street expectations for $214.6 million, Pitzer wrote. Q1 was Mellanox’s seventh consecutive beat and fourth straight of record quarterly revenue, Piper Jaffray analyst Andrew Nowinski and Summit Research analyst Srini Nandury wrote in separate reports. Nowinski maintained his overweight rating and 65 price target on Mellanox stock. Nandury rates Mellanox stock a buy and also has a 65 price target. Both note Intel’s Omnipath isn’t, so far, holding a candle to Mellanox’s 100-gigabyte/second Infiniband product. Omnipath is also 100GB, but Mellanox is on track to launch 200GB and 400GB products in 2017 and a 1-terabyte/second product early next decade. “Mellanox is seemingly ahead of everybody in the market and is executing flawlessly on the Infiniband road map,” Nandury wrote. He said Mellanox is the only OEM to deliver 25/50/100-Gb Ethernet adapters in addition to switches, “well ahead of Broadcom.” Intel stock was down a fraction and Broadcom stock down 1% midday Wednesday. No. 1 chipmaker Intel, late Tuesday, reported mixed Q1 results on a minimal year-over-year climb in PC sales and announced it would layoff 12,000 in an effort to focus on stronger segments.