Avery Schumer
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4 Semiconductor Earnings To Watch This Week

Four of the biggest semiconductor stocks are scheduled to report their earnings this week and what investors can expect, according to KeyBanc's John Vinh.

Integrated Device

  • Integrated Device Technology Inc IDTI will report its third-quarter results Monday.
  • The company is expected to report in-line results with "solid" guidance.
  • The company benefited in the quarter from stabilized demand trends in China's wireless infrastructure, the roll out of IoT and 4.5G deployments.
  • Yinh maintains an Overweight rating on Integrated Device's stock with an unchanged $30 price target (17x fiscal 2019 estimated EPS of $1.77) which is currently under review pending the earnings report.

Cavium Inc

  • Cavium Inc CAVM will report its third-quarter results Wednesday.
  • Cavium is expected to report "solid" near-term results and guidance.
  • Similar to Integrated Device, Cavium's quarter was favorable from stabilizing Chinese wireless infrastructure demand trends but also from QLogic and new product ramps.
  • The ramp of LiquidSecurity will likely be incremental to the financials.
  • Yinh maintains an Overweight rating on Cavium's stock with an unchanged $80 price target (23x 2018 estimated EPS of $3.51).

Qorvo

  • Qorvo Inc QRVO will report its third-quarter results Wednesday.
  • Qorvo is expected to report "solid" results and an in-line guidance.
  • The company likely benefited from "modest" share gains at SAmsung and in China smartphones but this will be slightly offset from a "more muted" smartphone demand.
  • Apple Inc. AAPL will likely be looking to ramp its long-lead time component suppliers to resolve potential iPhone X supply constraints.
  • Yinh maintains a Sector Weight rating on Qorvo's stock with a fair value range of $70 to $75 per share (11x estimated 2019 EPS $6.56).

Cirrus Logic

  • Cirrus Logic, Inc. CRUS is scheduled to report its third-quarter results Thursday.
  • Cirrus is expected to report "solid" results and in-line guidance despite iPhone X related supply constraints.
  • Apple will likely be looking to build a component inventory if it resolves any ongoing supply constraints.
  • But until iPhone X demand catches up with demand there is likely to be limited near-term catalysts for not only Cirrus Logic but the entire Apple supply chain.
  • Yinh maintains an Overweight rating on Cirrus Logic's stock with an unchanged $70 price target (14x estimated 2019 EPS of $4.93).

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