On Friday, Ambarella posted higher-than-expected second-quarter earnings.
The video compression/ image processing semiconductor company’s adjusted earnings of 21 cents a share for the quarter significantly surpassed Zacks Consensus Estimate of 3 cents per share.
Revenue of $56.4 million for the quarter came in lower than the year-ago quarter’s $62.5 million, but beat analysts’ estimate of $52 million (according to Zacks).
Ambarella’s forecast for the fiscal third-quarter revenue ranges between $63 million and $67 million.
Ambarella CEO Fermi Wang emphasized that the company’s optimism for its fiscal year 2020 prospects has increased, despite geopolitical uncertainty.
Craig-Hallum analysts cut their price target on the shares to $46 from $50.
On the other hand, Deutsche Bank decided to keep its hold rating on the stock, and left the price target unchanged at $47.
Applied Materials beat the latest quarterly earnings estimates.The company reiterated its guidance for 2019, expecting a double-digit decline (mid to high teens) in wafer fabrication equipment sales and a rebound in 2020.
Since the low at the beginning of June, semiconductor manufacturer Lam Research (Nasdaq: LRCX) has been trending higher and a trend line connects the stock's lows over the last two months.The stock hit the trend line earlier this week and has bounced since then.
We see that the trend line connects the lows from June 17, June 25, and July 8.
chip equipment maker Applied Materials Inc. has agreed to acquire Japanese peer Kokusai Electric for $2.2 billion from KKR & Co Inc.
The deal will be financed by a combination of cash and debt , as mentioned by Applied Materials.As of March 2018, Kokusai generated revenue of $1.24 billion.
According to Japan's Nikkei business newspaper, the acquisition would boost Applied Materials’ semiconductor equipment market share to over 20%.
Sentiment among U.S. small businesses slumped in January to the lowest level since Donald Trump became president, as the economic outlook weakened amid the longest-ever U.S. government shutdown.
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Shares of Lam Research surged nearly +15% on Thursday, after the company reported an estimate-beating Q2 performance.
According to the company, 2018 proved to be the strongest financial year in its history, after it reported +14%, +27% and +50% growth in revenue, EPS and operating cash flow, respectively.
For the second quarter, the company reported revenue of $2.55 billion compared to analyst estimates of $2.45 billion, and reported an EPS of $3.87 against an estimate of $3.38.
A gross margin of 46.3% also beat consensus by 0.3%, while operating margin stood at 28.8% against a consensus of 27.5%.Ending deferred revenue for the company for Q2 stood at $493 million compared to the $626 million in Q1.
Lam Research has also confirmed a $5 billion share repurchase program that will be carried out through combination of cash on hand, cash generation, and borrowings.
Kulicke and Soffa remains a relatively cheap, cash-rich name with a great balance sheet, unencumbered by debt.
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