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QuickLogic (QUIK - Free Report) is a Zacks Rank #2 (Buy) that has an F for Value and an A for Growth. This is a semiconductor company that makes and sells ultra low power chips. These are ideal for the smartphone and wearable market. Let’s explore more about this company in this Bull of The Day article.
Description
QuickLogic Corporation is a semiconductor provider of ultra-low power, comprehensive, flexible sensor processing solutions enabling significantly longer battery life for the Smartphone, Wearable, and IoT markets. They are the only company integrating multi-core processing, programmable logic, sensor fusion and context aware algorithms, and embedded software. QuickLogic accelerates the pace of innovation for always-on motion, light, environmental, location, and voice-enabled user experiences.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For QuickLogic, I see two straight beats of the Zacks Consensus Estimate. The company did report two earnings misses over the last year as well.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
For QUIK estimates are moving higher.
This quarter has QUIK expected to earn $0.14, up from $0.07 cent 30 days ago.
Next quarter is the first quarter of 2024 and there is no estimate.
The full year 2023 has seen estimates move from $0.05 to $0.11 over the last 30 days.
Next fiscal year has seen a move higher from $0.32 to $0.36 over the same period.
Accelerating Growth
This year the company is looking for 30% topline growth and that is great but even better than that is the 2024 is calling for 31% topline growth. Accelerating growth on top is a great signal.
Valuation
I see a forward PE for QUIK at 116x, but that number drops to 38x when you extend it to the end of 2024. The price to book multiple of 12.6x is a little high, but chips names tend to trade at elevated levels. The company is expected to grow at a 30% rate, but the most recent quarter saw sales growth of 92% on a year over year basis and it that keeps up the growth rates will move dramatically higher. Price to sales comes in at 10x.
I see operating margins making some big moves higher. Solid revenue growth and better execution (margins) will lead to higher EPS estimates down the road.
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Bull Of The Day: QuickLogic (QUIK)
QuickLogic (QUIK - Free Report) is a Zacks Rank #2 (Buy) that has an F for Value and an A for Growth. This is a semiconductor company that makes and sells ultra low power chips. These are ideal for the smartphone and wearable market. Let’s explore more about this company in this Bull of The Day article.
Description
QuickLogic Corporation is a semiconductor provider of ultra-low power, comprehensive, flexible sensor processing solutions enabling significantly longer battery life for the Smartphone, Wearable, and IoT markets. They are the only company integrating multi-core processing, programmable logic, sensor fusion and context aware algorithms, and embedded software. QuickLogic accelerates the pace of innovation for always-on motion, light, environmental, location, and voice-enabled user experiences.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For QuickLogic, I see two straight beats of the Zacks Consensus Estimate. The company did report two earnings misses over the last year as well.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
For QUIK estimates are moving higher.
This quarter has QUIK expected to earn $0.14, up from $0.07 cent 30 days ago.
Next quarter is the first quarter of 2024 and there is no estimate.
The full year 2023 has seen estimates move from $0.05 to $0.11 over the last 30 days.
Next fiscal year has seen a move higher from $0.32 to $0.36 over the same period.
Accelerating Growth
This year the company is looking for 30% topline growth and that is great but even better than that is the 2024 is calling for 31% topline growth. Accelerating growth on top is a great signal.
Valuation
I see a forward PE for QUIK at 116x, but that number drops to 38x when you extend it to the end of 2024. The price to book multiple of 12.6x is a little high, but chips names tend to trade at elevated levels. The company is expected to grow at a 30% rate, but the most recent quarter saw sales growth of 92% on a year over year basis and it that keeps up the growth rates will move dramatically higher. Price to sales comes in at 10x.
I see operating margins making some big moves higher. Solid revenue growth and better execution (margins) will lead to higher EPS estimates down the road.