Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) [Detail Analytic Report] eased down in per trading session on Monday as it reported that its Q1 earnings of 65 cents that easily beat Zacks Consensus Estimate of 62 cents. The automotive market was again strong in previous quarter with the improvement in industrial being broad-based.
The Communications equipment market was reliable with year-before quarter. The Embedded Processing segment, which includes the processor, microcontroller and connectivity product lines, was up 4.1% sequentially and 8.5% from previous year. Even as strength from previous year was broad-based across Processors, microcontrollers and connectivity products, processors were the strongest. Management said that last quarter’s record performance was attributable to their decision to invest in the embedded business.
Bernstein Research reduced that its Q2 revenue estimate for Apple’s foundry provider Taiwan Semiconductor Manufacturing Corp., (TSMC) following Apple (AAPL) declared that it would cut inventory by $2B. According to Bernstein, TSMC will meet its 2016 revenue growth target of 5%-10%. First, TSMC’s assessment of the smartphone market is realistic. The smartphone market has seen a sharp slowdown with global shipments growing 12.9% in 2015, down more than half from 27.7% in 2014. TSMC sees 7% growth this year, in line with Bernstein’s 7.1% forecast.
Shares of Marvell Technology Group Ltd. (NASDAQ:MRVL) [Detail Analytic Report] dropped 4,4% in last session as it recently declared that it signed contract with activist investor Starboard Value LP to add three independent directors to its board. The chipmaker reported that it has began searching for a new chief executive, following previous CEO Sehat Sutardja left company earlier this month. The search will be overseen by a committee chaired by one of the new board members Peter Feld, who has been a managing member and head of research at Starboard Value since 2011. Starboard owns 6.5% of Marvell’s outstanding stock. Feld said in a statement that they are pleased to contain reached a constructive accord with Marvell.
The BOD will elect a non-executive Chairman of Board from amid independent members of Board. The Executive Compensation Committee will be chaired by Mr. Khaykin, and Dr. Gromer, Dr. Kassakian and Mr. Feld will be members. The Audit Committee will be chaired by Mr. Switz, and Dr. Gromer and Dr. Kassakian will be members.
Skyworks Solutions Inc. (NASDAQ:SWKS) [Detail Analytic Report] revealed that its fiscal Q2 revenue that missed analysts’ anticipations, but beat on bottom line by a penny, and estimate results this quarter below consensus. CEO David Aldrich called the results “solid,” while CFO David Palette said that this quarter, firm is anticipating “an inventory adjustment at a large customer,” a reference to the $2 billion inventory correction that Apple (AAPL) announced on Tuesday evening.
Craig Ellis with B. Riley keep his Buy rating on shares, but reduced his price target to $91 from $102, writing that dissatisfaction with Apple’s iPhone masks a lot of good things that happened in the quarter: “Healthy Broad Markets segment growth, substantive and diversified tier-1 and tier-2 content gain, retained or increased market share, plus stellar GM and opex execution were simply more than offset by an iPhone 6s adjustment greater than RILY expected.”