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InvenSense Sales Expected To Topple After Apple iPhone Shortfall

Apple ‘s ( AAPL ) iPhone shortfall could draw InvenSense ( INVN ) into the tornado late Monday when the sensor-chipmaker is expected to report its first-ever sales decline and its biggest earnings fall to date. InvenSense stock toppled 5.5% to 7, falling the most of IBD’s 41-company Electronic Semiconductor-Fabless industry group which was up a fraction on the stock market today . Fellow Apple suppliers Broadcom ( AVGO ) and Qualcomm ( QCOM ) stocks rose 1.2% and 0.1%, respectively, vs. flat shares of NXP Semiconductors ( NXPI ) and Cirrus Logic ( CRUS ). InvenSense follows radio-frequency supplier Qorvo ( QRVO ), which reported earnings last Wednesday. The consensus of 13 analysts polled by Thomson Reuters models $79.9 million in sales and 2 cents earnings per share ex items for InvenSense’s fiscal Q4. On a year-over-year basis, sales and EPS would be down 20% and 83%, respectively. It would be InvenSense’s fifth straight quarter of decelerating sales growth, and the first time the Apple supplier has seen sales fall vs. the year-earlier quarter. Earnings fell 14% last quarter. Three months ago, InvenSense guided to $77 million to $83 million in sales and 0-2 cents EPS ex items. During the January conference call, CFO Mark Dentinger noted a step-down at “the North American customer” — widely assumed to be Apple — and lighter sales in Korea. He expected Internet of Things sales to help fill those holes. On April 26, Apple reported its first-ever year-over-year iPhone sales decline and its first revenue drop since 2003. Teardowns show InvenSense supplies a gyroscope/accelerometer combination chip for the iPhone 6S. But InvenSense is forecast for 13% sales and 2% EPS growth in fiscal 2016 to $420.9 million and 47 cents, respectively, on healthier metrics earlier in the year. Apple shares rose 1% intraday after hitting a 2-year low on Friday.

China Internet Giant JD.com Dives After Mixed Q1 Earnings

JD.com ( JD ), one of China’s four biggest Internet companies, posted mixed Q1 earnings early Monday and gave an outlook slightly short of views. Its shares were among the many U.S.-traded techs falling after Chinese markets retreated overnight on renewed concerns about that nation’s economic recovery. JD, China’s largest online direct sales company, similar to Amazon.com ( AMZN ), reported revenue of $8.4 billion, slightly above the consensus of $8.35 billion and up 48% in local currency year over year. Its revenue has grown at double- or triple-digit rates for more than 18 quarters. The company recorded a per-share loss of 2 cents minus items, matching the consensus estimate of analysts polled by Thomson Reuters. Its Q2 revenue guidance of $9.8 billion to $10.1 billion was slightly below the consensus of $10 billion at the midpoint. IBD Take: JD.com ranks just No. 17 in its group. IBD Stock Checkup can help explain why. JD stock was down 8.5%, near 23, in morning trading in the stock market today , but U.S. shares of Alibaba ( BABA ) and  Tencent Holdings ( TCEHY ) were flat. Baidu ( BIDU ) stock was down 3%, near 168, Monday morning after it announced new measures  in response to a student’s death and a government probe into its health care advertising Alibaba, Tencent and Baidu are China’s largest Internet companies, along with JD. Alibaba is China’s largest etail company, while Baidu is China’s largest search company, and Tencent leads in gaming and social networking. JD said its gross merchandise volume, which is the total value of goods sold on its website, rose 55% in local currency to the equivalent of $20 billion. “We had a solid first quarter of the year with healthy growth in revenues, new users and mobile traffic,” said JD CEO Richard Liu said in the company’s earnings release. Alibaba turned in a quarterly earnings report Thursday that largely eased concerns of slowing performance, despite a sluggish Chinese economy.

Apple Stock Oversold; RBC Sees Buying Opportunity

  Apple ‘s ( AAPL ) recent stock slide is an overreaction to the company’s disappointing March-quarter earnings report and could spell a buying opportunity, RBC Capital Markets analyst Amit Daryanani said in a research report Sunday. Before Monday, Apple shares had fallen in 14 of the last 16 trading sessions and were down 17.3% since April 14. Apple stock was up nearly 1%, near 93.50, in morning trading on the stock market today . Daryanani reiterated his outperform rating on Apple stock, with a price target of 120. “Investor feedback on Apple post-earnings call is skewed negative,” Daryanani said. “But we think the stock is oversold and should see a healthy bounce from here.” Apple stock has come under “severe pressure” since its fiscal second-quarter earnings report on April 26, he said. “There has been increased investor interest especially at current levels as investors are trying to gauge if the stock is near a bottom,” Daryanani said. “Our perspective remains — stock is oversold and valuation should provide support at these levels.” For fiscal Q2, Apple posted its first year-over-year sales decline since 2003 and first-ever drop in iPhone unit sales. For the current Q3, Apple is targeting sales of $42 billion, down 15% from the same period last year. Apple’s iPhone sales are slumping because of tough comparisons to the huge iPhone 6 upgrade cycle and slowing smartphone sales overall. Bears on Apple stock say iPhone replacement cycles will be extended and that the upcoming iPhone 7 won’t be compelling enough to spur upgrades. They see Apple struggling in China and profit margins heading down. Bulls on Apple stock say iPhone growth will accelerate over the next few years and services revenue, including App Store and Apple Pay, will continue to grow rapidly. Also, new products, such as a rumored Internet TV service, could provide a lift to Apple over the next five years, Daryanani said. RELATED: Apple Stock Hits 2016 Low Amid Doubts About Its Future Apple Watch Still Preferred By Dudes; Fitbit Liked By Ladies