TriQuint Shares Plunge 10% On Weak Q4 Guidance, But Q3 Results Top View

(RTTNews) - Shares of TriQuint Semiconductor, Inc. (TQNT) plunged more than 10 percent in extended trading on Wednesday after the foundry services provider issued earnings and revenue guidance for the fourth quarter, significantly below Street view.

However, the company reported a profit for the third quarter compared to a loss last year, reflecting significantly improved margins and double-digit revenue growth. The results also topped analysts' expectations.

"I am pleased with the strong growth and substantially improved earnings we achieved this quarter. Strong mobile demand drove improved factory utilization while expenses were managed closely," President and CEO Ralph Quinsey said in a statement.

The Hillsboro, Oregon-based company reported net income of $13.56 million or $0.08 per share for the third quarter, compared to a net loss of $11.25 million or $0.07 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $26.31 million or $0.16 per share, compared to $2.54 million $0.02 per share in the year-ago quarter.

On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.10 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased 25 percent to $250.84 million from $200.82 million in the same quarter last year, and topped twelve Wall Street analysts' consensus estimate of $250.10 million by a whisker. Mobile Devices market revenue surged 42 percent from last year.

Operating margin for the quarter expanded 1020 basis points to 7.5 percent, as gross margin improved 610 basis points to 36.8 percent, and total operating expense, as a percentage of revenues, declined 410 basis points to 29.3 percent.

Looking ahead to the fourth quarter, the company expects adjusted earnings in a range of $0.12 to $0.14 per share, on projected quarterly revenues between $260 million and $270 million. Street is currently looking for fourth-quarter earnings of $0.19 per share on revenues of $280.54 million.

"RF content growth is being fueled by next-generation smartphones operating in a more crowded spectrum with expanding frequency requirements. TriQuint is uniquely positioned to supply high-performance solutions for the most challenging and complex RF front end requirements," Quinsey added.

TQNT closed Wednesday's regular trading session at $8.31, down $0.63 or 7.05% on a volume of 5.80 million shares. The stock plunged a further $0.86 or 10.35% in after-hours trading.