Zacks_Analysts' Blog : Earnings Scorecard: TriQuint - Analyst Blog

TriQuint Semiconductor Inc. (TQNT) recently reported fourth quarter 2009 net income per share of 14 cents, beating the Zacks Consensus Estimate of 11 cents and management’s revised expectation of 12 – 13 cents.

TriQuint is an original equipment manufacturer of semiconductor communication integrated circuits. The company specifically targets the wireless handset segment, infrastructure networks and defense markets.

The company reported revenues of $193.3 million in the fourth quarter, up 12% sequentially and up 30% year-over-year driven by solid growth from all end-markets. Revenue for 2009 came in at $654.3 million, up 14% from the prior year.

We have discussed the quarterly results at length:

http://www.zacks.com/stock/news/30996/TriQuint+Tops+Expectations

AGREEMENT IN REVISIONS

Following better-than-expected results for the fourth quarter, four of the five analysts following the stock have raised their earnings estimates for 2010 over the past 30 days, with no revision in the opposite direction.

For the first quarter, four of the five analysts following the stock have raised their earnings estimates with no revision in the opposite direction.

There have been no revisions in estimates for 2011.

MAGNITUDE – ESTIMATES UPPED MODESTLY

The current Zacks Consensus Estimate for 2010 is 46 cents, up five cents in the last 30 days.

For fiscal 2011, TriQuint is expected to deliver 28.79% bottom line growth resulting in a Zacks Consensus Estimate of 60 cents.

TriQuint has consistently met or exceeded its guidance. In terms of earnings surprises, earnings exceeded the Zacks Consensus Estimate in the last quarter by 9.09% while the third quarter met expectations.

Earnings estimates for the first quarter are up by two cents with the current Zacks Consensus Estimate at 7 cents. Management had guided EPS to come between 8 cents and 10 cents.

OUR RECOMMENDATION

TriQuint foresees a sustained demand for handset and defense products. Management projects revenues between $170 million and $175 million in the first quarter of 2010. First quarter is a seasonally weak quarter for the company. For full fiscal 2010, management expects revenue to grow by 20%.

Management continues to see solid adoption of its 3G products in multi-band smart phones. We remain cautiously optimistic of the company’s projected path of growth.

Our long-term recommendation for TriQuint is Neutral (Zacks #3 Rank), which means that the company will perform roughly in line with the broader market.