Stock Alert for Energy Conversion Devices Inc. (ENER)
  • Stock Report for Eastman Kodak Company (EK)
  • Stock Report for Coldwater Creek Inc. (CWTR)
  • " />

    Stock Report for RF Micro Devices Inc. (RFMD)

    RF Micro Devices Inc. (RFMD) designs and manufactures high-performance radio frequency components and compound semiconductor technologies. Its products enable worldwide mobility, provide enhanced connectivity and support advanced functionality in the cellular handset, wireless infrastructure, wireless local area network (WLAN), CATV/broadband and aerospace and defense markets. RFMD is recognized for its diverse portfolio of semiconductor technologies and RF systems expertise and is a preferred supplier to the world’s leading mobile device, customer premises and communications equipment providers.

    Share Statistics (27-July-11)   FY

    2010

    FY

    2011

    %

    Chg

    Q2

    2010

    Q2

    2011

    %

    Chg

    Symbol RFMD Revenue, $Mn 978.39 1,051.76 7.5% 260.82 213.33 -18.2%
    Current price $6.54 Gross marg. 36.3% 37.0% 1.9% 37.7% 35.4% -6.1%
    52wk Range: $4.00-$8.48 Oper. margin 13.0% 5.9%
    Avg Vol (3m): 5,847,060 Net margin 7.3% 11.8% 61.6% 10.2% 11.3% 10.8%
    Market Cap. 1.81B              
    Shares Outstanding 276.86M EPS, $ 0.25 0.45 80.0% 0.10 0.09 -10.0%

    Source: Reuters.com, SEC Filings.

    Recent News

    RFMD’s share price jumped by 7% on Wednesday, a day after it announced its June quarter results, which beat the Street’s expectations.  Investors also cheered the microchip maker’s raising of its revenue for its fiscal second quarter.

    RFMD reported revenue of $214.2 million for the fiscal first quarter ended July 2, 2011, up from the previous quarter’s $213.3 million but down from the prior-year quarter’s revenue of $273.8 million. The Company attributed the sequential increase to growth in its core business, which more than offset a drop in sales of legacy transceiver products. Though lower than last year by 22%, revenue for the first quarter was still ahead of the $207.7 million expected by analysts..

    Net income for the quarter came in at $8.9 million, or 3 cents per share, down 69% from the prior-year quarter’s $28.3 million, or 10 cents per share.  When excluding one-time items, the Company earned 8 cents per share. That beat the 9 cents per share expected by analysts polled by FactSet.

    “During the June quarter, RFMD enjoyed strong design momentum in 3G/4G smartphones and across MPG’s diversified markets,” RFMD president and CEO Bob Bruggeworth commented in the release.  “We launched several industry-leading new products, and this fueled a sharp improvement in our customer and product mix — yielding our most diverse quarter by customer concentration. We see further customer diversification in the September quarter, supported by share gains in smartphones, tablets, smart energy management solutions, point-to-point radio chipsets for cellular backhaul, and other growth markets.

    For the September 2011 quarter, RFMD expects revenue to grow by 6% to $227.1 million or so sequentially, which implies revenue of $383.3 million, ahead of the consensus of $226.6 million.

    RFMD shares gained 1.24% to close at $6.53, on above-average volume of 19.77 million shares. The stock has been moving within a range of $4.00 – $8.48 over the past 52-weeks. RFMD is currently trading above its 50-day moving average of $5.98 and just below its 200-day moving average of $6.54. Market capitalization currently stands at $1.81 billion and it has 276.86 million outstanding shares.

    Financial Strength (27-July-2011)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 3.34 2.49 2.10 0.65
    Current Ratio (MRQ) 4.45 3.04 2.62 1.01
    LT Debt to Equity (MRQ) 26.22 25.61 14.35 121.95
    Total Debt to Equity (MRQ) 26.79 49.41 24.41 160.20
    Interest Coverage (TTM) 3.15 0.94 19.91

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    This is the consensus forecast among 18 polled investment analysts. Against the RF Micro Devices Inc company.

    Analyst Detail

    Buy

    Outperform

    Hold

    Underperform

    Sell

    No Opinion

    Latest 8 4 5 1 0 0
    4 weeks ago 8 3 7 1 0 0
    2 months ago 7 3 7 1 0 0
    3 months ago 7 3 7 1 0 0
    Last year 12 3 4 2 0 0

    The 15 analysts offering 12-month price targets for RFMD have a median target of 8.00, with a high estimate of 13.00 and a low estimate of 6.00. The median estimate represents a 24.03% increase from the last price of 6.45.

    Source: markets.ft.com

    Consensus Estimates Analysis

    # of Estimates

    Mean

    High

    Low

    1 Year Ago

    SALES (in millions)
    Quarter Ending Sep-11 18 229.51 270.00 215.00 282.41
    Quarter Ending Dec-11 18 253.00 290.00 225.00 297.15
    Year Ending Mar-11 18 1,053.44 1,062.00 1,048.40
    Year Ending Mar-12 19 931.38 1,082.00 855.00 1,142.97
    Year Ending Mar-13 15 1,073.11 1,259.50 920.00 1,182.92
    EARNINGS (per share)
    Quarter Ending Sep-11 16 0.10 0.18 0.08 0.17
    Quarter Ending Dec-11 16 0.13 0.18 0.11 0.19
    Year Ending Mar-11 15 0.61 0.63 0.59
    Year Ending Mar-12 16 0.42 0.65 0.34 0.69
    Year Ending Mar-13 13 0.59 0.90 0.44
    LT Growth Rate (%) 6 15.83 20.00 15.00 16.00

    Technical Analysis

    Source: http://stockcharts.com

    RFMD is trading above its 20-day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.

    RFMD is within its Bollinger Bands. This is a normal condition suggesting that it is neither overbought nor oversold relative to the recent levels.

    The MACD for RFMD currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0 which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    July27-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Broadcom Corp. BRCM 37.04 19.86B 13.28 12.43 2.63 2.39
    Skyworks Solutions Inc. SWKS 26.10 4.86B 14.34 12.49 3.52 3.06
    Agilent Technologies Inc. A 42.46 14.78B 14.74 12.98 2.23 2.06
    Semiconductor – Integrated Circuits Median       14.87 n/a 1.66 n/a
    RF Micro Devices Inc. RFMD 6.54 1.81B 15.57 11.08 1.96 1.69

    Source: Thomson Financial

    DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

    The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

    Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

    Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

    Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

    We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

    To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

    We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

    Leave a Reply

    Your email address will not be published. Required fields are marked *