Chip stocks rose on Tuesday after upbeat earnings reports from Integrated Device Technology (IDTI), Monolithic Power Systems (MPWR) and Quantenna Communications (QTNA).
XThe Philadelphia Semiconductor Index, known as SOX, climbed 1.7% on the stock market today. The iShares PHLX Semiconductor ETF (SOXX), which tracks the SOX, had fallen in eight of the previous nine trading sessions as chip investors fretted about a possible downturn in the sector.
Quantenna Shares Soar
Quantenna Communications stock soared 19.4% to close at 15.13 on Tuesday after reporting better-than-expected first-quarter results late Monday.
The Fremont, Calif.-based company earned an adjusted 3 cents a share, unchanged from a year earlier. Sales were $45.1 million, up 19%, in the March quarter. Analysts expected earnings of 1 cent a share on sales of $43.9 million.
Quantenna expects to earn a 8 cents a share on sales of $52 million, based on its outlook midpoint, for the second quarter. Wall Street had forecast earnings of 6 cents on sales of $49 million.
Quantenna makes Wi-Fi chips for wireless local area networks.
Needham analyst Quinn Bolton on Tuesday reiterated his strong buy rating on Quantenna with a price target of 20. "QTNA remains our top pick for 2018," he said in a note to clients.
IDT Beats Views
Integrated Device Technology shares rose 2% to close ta 28.39 on Tuesday. The company beat Wall Street's targets late Monday for its fiscal fourth quarter ended April 1.
IDT earned an adjusted 46 cents a share, up 31% year over year. Sales were $224.6 million, up 28%, in the quarter. Analysts expected 44 cents and $222.2 million.
For the current quarter, IDT expects to earn an adjusted 43 cents a share on sales of $227 million, based on the midpoint of its guidance. Wall Street was modeling 43 cents and $225 million.
The San Jose, Calif.-based company also announced that it's on track to meet its targeted annualized revenue run rate of $1 billion before 2020 as previously estimated.
IDT makes chips for automotive, industrial, computing and consumer electronics markets.
MPS Gets Price-Target Hikes
Monolithic Power Systems received at least three price-target hikes to its stock after posting better-than-expected first-quarter results late Monday.
Needham analyst Quinn Bolton raised his price target on MPS to 150 from 140 and reiterated his buy rating. MPS stock rose 1.7% to close at 119.12 on Tuesday.
MPS has now met or beat guidance with its results for 16 consecutive quarters, he said. Its first-quarter results were driven by strength in its automotive, storage and computing and high-value consumer markets, Bolton said.
The San Jose, Calif.-based company makes power-control chips for electronic devices.
Broadcom Price Targets Cuts
At least nine Wall Street firms cut their price targets on Broadcom (AVGO) stock after the chipmaker warned about weakness in smartphone chip sales on Monday.
Broadcom also gave a sales estimate for its fiscal third quarter that was below views.
Broadcom's warning was not a big surprise given news reports about slowing Apple (AAPL) iPhone sales, Susquehanna Financial Group analyst Christopher Rolland said in a report.
Broadcom's sales guidance for the July quarter of $5.05 billion missed consensus estimates by $180 million to $200 million.
"Partially offsetting the weak wireless demand in July is continued strong demand in the wired (communications) and enterprise storage segments, driven by cloud data center demand," he said.
Rolland cut his price target on Broadcom to 300 from 325, but maintained his positive rating on the stock.
Broadcom shares gained 0.4% to close at 230.38 on Tuesday.
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The post Chip Stocks Notch Solid Gains After Latest Earnings Reports appeared first on Investor's Business Daily.
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