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What's in the Cards for QuickLogic (QUIK) in Q1 Earnings?
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Semiconductor solutions provider, QuickLogic Corporation (QUIK - Free Report) is set to report first-quarter 2017 earnings on May 10, 2017. Last quarter, the company reported a loss of 5 cents, which was narrower than a loss of 8 cents reported in the year-ago quarter and the Zacks Consensus Estimate of a loss of 7 cents per share. Revenues of $3 million came in line with the Zacks Consensus Estimate.
The company has delivered an average positive earnings surprise of 9.52% for the four trailing quarters.
We note that the positive result has helped the stock outperform the Zacks Electronics- Semiconductors industry on a year-to-date basis. While the stock returned 20.1%, the industry gained 17.7% over the same period.
Let's see how things are shaping up for this announcement.
Key Factors to Consider
For the first quarter, QuickLogic expects to generate revenues of $3.1 million (+/-10%). Of the total revenue, approximately $1.7 million is expected to come from new products while $1.4 million will be realized in mature product revenues.
Non-GAAP gross margin is forecast to be approximately 40% (+/-3%). At the mid-point of the company’s guidance, non-GAAP loss is expected to be approximately $3.3 million or 5 cents per share.
The company has integrated the "Alexa" voice trigger and optimized it in hardware in its flagship product, EOS S3 sensor processing platform running the Sensory TrulyHandsfree technology. The collaboration with Amazon (AMZN - Free Report) is expected to drive top-line growth.
Moreover, we also note that a few of the company’s wearable designs are being used for Beta testing by tier one smartphone customers, which is also a positive.
Earnings Whispers
Our proven model does not conclusively show that QuickLogic is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: QuickLogic’s Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 5 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: QuickLogic has a Zacks Rank #3, which when combined with a 0.00% ESP makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Rank #4 or #5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank #2.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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What's in the Cards for QuickLogic (QUIK) in Q1 Earnings?
Semiconductor solutions provider, QuickLogic Corporation (QUIK - Free Report) is set to report first-quarter 2017 earnings on May 10, 2017. Last quarter, the company reported a loss of 5 cents, which was narrower than a loss of 8 cents reported in the year-ago quarter and the Zacks Consensus Estimate of a loss of 7 cents per share. Revenues of $3 million came in line with the Zacks Consensus Estimate.
The company has delivered an average positive earnings surprise of 9.52% for the four trailing quarters.
We note that the positive result has helped the stock outperform the Zacks Electronics- Semiconductors industry on a year-to-date basis. While the stock returned 20.1%, the industry gained 17.7% over the same period.
Let's see how things are shaping up for this announcement.
Key Factors to Consider
For the first quarter, QuickLogic expects to generate revenues of $3.1 million (+/-10%). Of the total revenue, approximately $1.7 million is expected to come from new products while $1.4 million will be realized in mature product revenues.
Non-GAAP gross margin is forecast to be approximately 40% (+/-3%). At the mid-point of the company’s guidance, non-GAAP loss is expected to be approximately $3.3 million or 5 cents per share.
The company has integrated the "Alexa" voice trigger and optimized it in hardware in its flagship product, EOS S3 sensor processing platform running the Sensory TrulyHandsfree technology. The collaboration with Amazon (AMZN - Free Report) is expected to drive top-line growth.
Moreover, we also note that a few of the company’s wearable designs are being used for Beta testing by tier one smartphone customers, which is also a positive.
Earnings Whispers
Our proven model does not conclusively show that QuickLogic is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: QuickLogic’s Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 5 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: QuickLogic has a Zacks Rank #3, which when combined with a 0.00% ESP makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Rank #4 or #5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
QuickLogic Corporation Price and EPS Surprise
QuickLogic Corporation Price and EPS Surprise | QuickLogic Corporation Quote
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Jack In The Box Inc. (JACK - Free Report) has an Earnings ESP of +4.4% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank #2.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>