The Zacks Analyst Blog Highlights:Intel, Altera, Applied Micro Circuits,
Lattice Semiconductor and Rambus
CHICAGO, April 17, 2013
CHICAGO, April 17, 2013 /PRNewswire/ --Zacks.com announces the list of stocks
featured in the Analyst Blog. Every day the Zacks Equity Research analysts
discuss the latest news and events impacting stocks and the financial markets.
Stocks recently featured in the blog include Intel (Nasdaq:INTC), Altera Corp.
(Nasdaq:ALTR), Applied Micro Circuits Corp. (Nasdaq:AMCC), Lattice
Semiconductor Corporation (Nasdaq:LSCC) and Rambus Inc. (Nasdaq:RMBS).
Get the most recent insight from Zacks Equity Research with the free Profit
from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Tuesday's Analyst Blog:
Intel Slightly Misses Earnings
Intel (Nasdaq:INTC), reported earnings after the bell, posting an EPS of
$0.40, missing the Zacks consensus estimate of $0.42. Moreover, revenues were
in line with the consensus numbers at $12.6 billion.
This earnings release is the first time in 5 quarters that INTC did not have a
positive earnings surprise (previous 4 quarters showed an average surprise
9.13% above consensus). Over the past 30 days, there have been multiple
estimate downgrades, showing an overall negative earnings sediment. Also,
analysts are concerned about the companies mobile phone strategy, and the
13.9% year over year decline in PC shipments.
Another concern is the increase in CAPEX. In 2012, CAPEX was $11 billion, and
2013 was projected to be $13 billion (CEO Stacy Smith announced, after hours,
a revision to 12 billion for the year). The expenses are designed to invest
in core business segments.
According to Stacy Smith, he believes that INTC is, "well positioned for
growth." Mr. Smith stated that the transition client category of ultrabooks,
convertibles, and android tablets are sources of expected unit growth for the
company. Mr. Smith went on further to state that he is, "OK with top line
growth projections, and expects single digit revenue growth for 2013." He
also pointed out that INTC has recently won 11 phone design competitions, and
is the performance leader in third party chips.
On a positive note, Mr. Smith announced that 40% of their free cash flow has
been earmarked for dividends (posting a 4% dividend yield). Moreover, INTC
intends to allocate funds for a stock repurchase.
In afterhours trading, INTC has declined 0.52%, suggesting that street is
still very cautious about future top line, and revenue growth.
Applied Micro Divests Biz to Altera
Leading semiconductor manufacturer Altera Corp. (Nasdaq:ALTR) recently decided
to acquire TPACK, a wholly-owned subsidiary of Applied Micro Circuits Corp.
(Nasdaq:AMCC), for an undisclosed amount. The strategic move is aimed at
strengthening Altera's position in the OTN (optical transport network)
equipment market that is anticipated to reach $13 billion by 2017, according
to research firm Infonetics.
TPACK develops OTN solutions for packet and optical networking equipment
suppliers. The company has a long-term business association with Altera since
2007 relating to joint marketing and product development initiatives. The
acquisition further builds on their business ties and leverages Altera's 2010
purchase of Avalon Microelectronics, a leading OTN IP provider, to provide
customers with flexible, scalable solutions in a dynamic market characterized
by changing protocols and evolving standards.
On the other hand, the divestiture by Applied Micro is likely to increase its
liquidity as high operating expenses, driven by a nearly three-fold increase
in research and development expenditure, led to a significantly high operating
loss of $73.2 million in the third quarter of fiscal 2013 (ending Dec 31,
Headquartered in Sunnyvale, CA, Applied Micro is a premier provider of
high-bandwidth low power integrated circuits (ICs), which are essential for
the processing, transporting and storing of information. The company provides
semiconductor solutions for the enterprise, telecom and consumer/small medium
For the telecom and enterprise market, Applied Micro primarily utilizes a
combination of design expertise coupled with system-level knowledge and
multiple technologies to offer IC products for wireline and wireless
communications equipment, such as wireless access points, wireless base
stations, multi-function printers, enterprise and edge switches, blade
servers, storage systems, gateways, core switches, routers, metro, long-haul,
and ultra-long-haul transport platforms.
For the consumer/small medium business, Applied Micro combines optimized
software and system-level expertise with highly integrated semiconductors to
deliver comprehensive reference designs and stand-alone semiconductor
solutions for wireline and wireless communications equipment, such as wireless
access points, network attached storage, and residential and smart energy
Applied Micro presently has a Zacks Rank #3 (Hold). Other companies in the
industry that are comparatively better-placed include Lattice Semiconductor
Corporation (Nasdaq:LSCC) and Rambus Inc. (Nasdaq:RMBS), each carrying a Zacks
Rank #1 (Strong Buy).
Want more from Zacks Equity Research? Subscribe to the free Profit from the
Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative
analysis to help investors know what stocks to buy and which to sell for the
Continuous coverage is provided for a universe of 1,150 publicly traded
stocks. Our analysts are organized by industry which gives them keen insights
to developments that affect company profits and stock performance.
Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the
latest analysis from Zacks Equity Research. Subscribe to this free newsletter
Zacks.com is a property of Zacks Investment Research, Inc., which was formed
in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in
stock market data that would lead to superior investment results. Amongst his
many accomplishments was the formation of his proprietary stock picking
system; the Zacks Rank, which continues to outperform the market by nearly a 3
to 1 margin. The best way to unlock the profitable stock recommendations and
market insights of Zacks Investment Research is through our free daily email
newsletter; Profit from the Pros. In short, it's your steady flow of
Profitable ideas GUARANTEED to be worth your time! Register for your free
subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance
numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook:
Disclaimer: Past performance does not guarantee future results. Investors
should always research companies and securities before making any investments.
Nothing herein should be construed as an offer or solicitation to buy or sell
Zacks Investment Research
800-767-3771 ext. 9339
SOURCE Zacks Investment Research, Inc.
Press spacebar to pause and continue. Press esc to stop.