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Inphi (IPHI) Gears Up for Q4 Earnings: What's in the Cards?

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Inphi Corporation is set to report fourth-quarter 2019 results on Feb 4. It delivered a positive earnings surprise of 21.6% in the last reported quarter.

The company topped the Zacks Consensus Estimate in the trailing four quarters, with average of 13.2%.

Q4 Forecasts

For the fourth quarter, the company expects revenues in the range of $97.8-$101.8 million. The Zacks Consensus Estimate for revenues is currently pegged at $99.86 million, indicating growth of 15.4% from the year-ago quarter.

Non-GAAP earnings are expected in the range of $40-$50 per share. The Zacks Consensus Estimate for earnings is currently pegged at 45 cents.

Performance in the Last Reported Quarter

Inphi had reported fourth-quarter 2019 non-GAAP earnings of 45 cents per share, beating the Zacks Consensus Estimate of 37 cents.

Revenues of $94.2 million outpaced the Zacks Consensus Estimate of $89 millionand improved 20.8% on a year-over-year basis.

Inphi Corporation Price and EPS Surprise

 

Factors to Consider

Inphi’s robust product portfolio is expected to have helped the company to expand top-line growth in the quarter. The company’s cloud products including PAM DSP products, Gearboxes, CDRs, COLORZ and Cloud TiAs continued to serve as growth drivers in the quarter.

Production ramp for PAM inside data centers is expected to have been strong during the fourth quarter. Also, M200 coherent DSP continued to ramp at multiple customers worldwide. In addition, strength of the 100-gig COLORZ module and M200 coherent DSP should have helped it to contribute to the revenue upside in the quarter.

The company’s legacy transport business is expected to have performed well in the to-be-reported quarter, driven by benefits from acquisitions.

However, the ongoing geopolitical condition, which includes the ongoing Huawei situation, is expected to affect its results to some extent. Also, headwinds from a few customers may negatively impact the results.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Inphi this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.

Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Inphihas a Zacks Rank #1.

Stocks That Warrant a Look

Here are a few stocks worth considering, as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.

Advanced Energy Industries, Inc. (AEIS - Free Report) has an Earnings ESP of +10.80% and a Zacks Rank #1.

Microchip Technology Incorporated (MCHP - Free Report) has an Earnings ESP of +1.33% and a Zacks Rank of 1.

Applied Optoelectronics, Inc (AAOI - Free Report) has an Earnings ESP of +8.12% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

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