TriQuint Semiconductor Earnings Preview

Motley Fool Staff
Updated

TriQuint Semiconductor (NAS: TQNT) met its estimates last quarter, but investors hope that it will beat them this quarter. The company will unveil its latest earnings on Wednesday, April 25. Triquint Semiconductor is a supplier of modules, components, and foundry services to communications companies.

What analysts say:

  • Buy, sell, or hold?: Half of analysts think investors should stand pat on TriQuint Semiconductor. Analysts don't like TriQuint Semiconductor as much as competitor RF Micro Devices overall. Seven out of 15 analysts rate RF Micro Devices a buy compared to four out of 10 for TriQuint Semiconductor. While analysts still rate the stock a hold, they are a little more optimistic about it compared to three months ago.

  • Revenue forecasts: On average, analysts predict $214.7 million in revenue this quarter. That would represent a decline of 4.3% from the year-ago quarter.

  • Wall Street earnings expectations: The average analyst estimate is a loss of $0.01 per share. Estimates range from a loss of $0.02 to a profit of $0.01.

What our community says:
CAPS All-Stars are strongly supporting the stock, with 99% assigning it an outperform rating. The greater community backs the All-Stars, as 97.3% give it a rating of outperform. With just nine posts in the past month, Fools have kept relatively quiet about TriQuint Semiconductor despite their generally positive feelings towards the stock. Even with a robust four out of five stars, TriQuint Semiconductor's CAPS rating falls a little short of the community's upbeat outlook.


Management:
TriQuint Semiconductor's income has fallen year over year by an average of 53% over the past five quarters. Revenue has fallen in the past two quarters. The company's gross margin shrank by 9.5 percentage points in the last quarter. Revenue fell 10.4% while cost of sales rose 3.5% to $159.9 million from a year earlier.

Now let's get some insight into how efficient management is at running the business. Traditionally, margins serve as an illustration of how efficiently a company captures portions of sales dollars. TriQuint Semiconductor's net margins, which reflect what percentage of revenue becomes profit, have been dropping year-over-year for the last four quarters. See how TriQuint Semiconductor has been doing for the last four quarters:

Quarter

Q4

Q3

Q2

Q1

Gross Margin

29.5%

34.9%

40.3%

39%

Operating Margin

2.4%

5.6%

9.3%

9%

Net Margin

1.9%

6.9%

7.2%

5.5%

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The Motley Fool owns shares of TriQuint Semiconductor. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Earnings estimates provided by Zacks.

At the time thisarticle was published

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