On Wednesday, Oppenheimer adjusted its price target for QuickLogic (NASDAQ: NASDAQ:QUIK), a semiconductor company, reducing it to $13.00 from the previous $16.00. Despite the price target reduction, the firm maintained its Outperform rating on the stock.
The adjustment followed QuickLogic's second-quarter financial report, which showcased revenues of $6.0 million and earnings per share (EPS) of $0.12.
These figures surpassed the consensus estimates of $4.5 million in revenue and $0.01 EPS. However, the company's guidance for the third quarter indicated a year-over-year revenue decline of 37%.
According to the firm, QuickLogic experienced multiple customer push-outs, which have influenced the company's near-term performance. Consequently, management has revised its revenue growth forecast for 2024, lowering it from an expected 30% to 15%.
Despite the setbacks, the analyst noted that the push-outs were not related to competition or internal delays at QuickLogic. The company's sales funnel has increased to $189 million, and it is beginning to see contributions from its Storefront and Chiplet initiatives, which are anticipated to start generating revenue by late 2025.
In conclusion, the firm expressed continued confidence in QuickLogic's long-term growth potential and profitability. The updated estimates and the reiterated Outperform rating reflect the firm's optimism, albeit with a more conservative price target based on the revised 2024 outlook.
In other recent news, QuickLogic Corporation has seen a significant 45% year-over-year revenue increase in its first quarter of fiscal 2024, primarily driven by robust EFPGAIP contract growth. The company's new product revenue saw a near 60% rise, contributing to a forecast of over 30% expected revenue growth for the year.
QuickLogic also anticipates a $4.5 billion revenue forecast for Q2, marking a 55% increase year-over-year. In addition to financial growth, QuickLogic has entered into distribution agreements with Astute Electronics and Spur Microwave Inc. (Spur India) to extend its global reach.
The company has also announced a significant partnership with Intel (NASDAQ:INTC) Foundry Services for the development of eFPGA solutions. Lastly, QuickLogic is set to join the Russell 3000® Index, a move expected to broaden the company's investor base. These are among the recent developments from QuickLogic.
InvestingPro Insights
Following Oppenheimer's adjustment of QuickLogic's price target, a look at the real-time data from InvestingPro provides additional context for investors. QuickLogic, with a market capitalization of $135.87 million, is trading at a high earnings multiple with a P/E ratio of 120.9, reflecting a premium valuation relative to its earnings. The company's strong revenue growth in the last twelve months, at 42.27%, signals robust business expansion, which aligns with the firm's recognition of QuickLogic's long-term growth potential.
InvestingPro Tips highlight that analysts predict QuickLogic will be profitable this year, which aligns with the positive earnings per share reported in the second quarter. However, two analysts have recently revised their earnings expectations downwards for the upcoming period, indicating potential headwinds or a more conservative outlook. With the stock's significant return over the last week, up 8.9%, investors have reacted positively in the short term, despite a more turbulent month where the stock declined by 18.65%.
For those seeking a deeper dive into QuickLogic's performance and future prospects, InvestingPro offers additional tips, providing a comprehensive analysis to support investment decisions. With QuickLogic's next earnings date on the horizon, staying informed with the latest data and expert insights will be crucial for investors navigating the semiconductor sector's dynamic landscape.
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