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Apple Chipmaker Integrated Device Tops Q4 Views On Record Sales

Integrated Device Technology ( IDTI ) stock rocketed early Tuesday after the Apple ( AAPL ) Watch and Samsung Galaxy supplier topped analysts’ fiscal Q4 and full-year estimates on record quarterly and wireless charging sales. Needham analyst Quinn Bolton reiterated a buy rating and upped his price target on Integrated Device stock to 27 from 26. Integrated Device’s fiscal Q4 included the completed acquisition of privately held ZMDI. For the quarter ended April 3, Integrated Device reported $189.4 million in sales and 36 cents earnings per share minus items, up a respective 20% and 24% vs. the year-earlier quarter. Wall Street had modeled $187.1 million and 33 cents. Three months ago, Integrated Device guided to $187 million in sales, plus or minus $5 million. Integrated Device wrapped up fiscal 2016 with $697 million in sales and $1.37 EPS ex items, crushing the consensus of 12 analysts polled by Thomson Reuters for $695.2 million and $1.34. Year over year, sales and EPS grew 22% and 49%, respectively. Current-quarter sales guidance for $191 million, plus or minus $5 million, met the consensus for $191.6 million and would be up 6% vs. the year-earlier quarter. Integrated Device stock was up nearly 7% in early trading in the stock market today , near 21. But shares are down 20% this year, hurt by a 27% plunge on Feb. 2 after the chipmaker’s fiscal Q4 sales guidance missed expectations. Wireless charging sales hit $19 million in Q4, CFO Brian White told analysts on the company’s earnings conference call late Monday. In that segment, Integrated Device supplies the Apple Watch and Samsung Galaxy. Consumer end-market sales, which include wireless charging sales, rose 53% quarter over quarter and represented 17% of total sales (about $32.2 million), CEO Greg Waters said on the call. That business benefited from a full quarter of ZMDI’s sensors. Automotive and industrial sales of $16 million exceeded views by $2 million, Bolton wrote in a research report. Communication and computing sales, however, declined by a respective 7% and 10% quarter over quarter. For fiscal Q1, communications and auto/industrial sales are expected to grow a respective 1% and 6% sequentially. Consumer and computing sales are modeled flat. Integrated Device trades at a steep discount, Bolton wrote. “IDT holds leading market segment share in products that accounted for 77% of fiscal 2016 revenue,” he wrote. “IDT’s revenue concentration in these four segments may be a reason IDTI trades at a discount to its peer group.”

Pfizer Raises Guidance As Lead Drugs Drive Q1 Beat; Stock Up

Big pharma Pfizer ( PFE ) rose early Tuesday after it beat Wall Street’s Q1 estimates and raised its guidance, as the company moved on after it and Allergan ( AGN ) last month called off their mammoth $160 billion merger. Before the open, Pfizer said earnings, excluding one-time items, rose 32% over the year-earlier quarter to 67 cents a share, beating analysts’ consensus by 12 cents. Revenue increased 20% to $13 billion, beating consensus by about $1 billion. The accounting in Q1 was complicated by several factors, including the Sept. 3 acquisition of generic drugmaker Hospira. “If we look closely to year-over-year revenue growth, it is worth mentioning that out of $2.1 billion growth vs. Q1 ’15 (or $2.9 billion of operational growth or 26% year-over-year) favorable FX (foreign-exchange rates) contributed $729 million, and inclusion of Hospira contributed $1.2 billion,” wrote Evercore ISI analyst Mark Schoenebaum in an email to clients. “Excluding FX and Hospira, Pfizer stand-alone revenue increased by $1.7 billion (15% year-over-year growth). “There is also an additional factor favorably contributing to revenues — $900 million due to an additional five selling days this quarter. Excluding this impact, operational year-over-year revenue growth comes as 8%, which is still very good growth for Pfizer with its relatively mature portfolio of products.” Still, none of these factors except foreign exchange contributed to Pfizer’s full-year guidance increase. The company added $2 billion to its revenue guidance, now $51 billion to $53 billion, and 18 cents to its EPS range, now $2.38 to $2.48. Pfizer said that about $1 billion of the revenue hike and 12 cents of the EPS gain were due to improved operating performance. Pfizer stock was up 2.4% in early trading on the stock market today , near 33.60. A number of important drugs also beat consensus, including breast-cancer treatment Ibrance, epilepsy drug Lyrica, and pneumococcal vaccine Prevnar 13. Enbrel —  Amgen ‘s ( AMGN ) rheumatoid-arthritis drug, which Pfizer markets outside the U.S. — also beat expectations, as it did domestically for Amgen in its Q1 report last week. Nonetheless, investors’ minds may be elsewhere, wrote Credit Suisse analyst Vamil Divan in a research note. “We expect investors to view the quarter as a positive but maintain their focus on the strategic outlook of the company following the failed Allergan deal and ahead of a decision on a potential split of Pfizer ,” he wrote. Pfizer and Allergan, based in low-tax Ireland, called off their merger , which would have been the industry’s largest ever, after the U.S. Treasury unveiled new rules to curb tax inversion deals.

Sprint Added Phone Customers Last Quarter, Topping AT&T, Verizon

Sprint ( S ) early Tuesday reported a higher-than-expected fiscal Q4 loss, but the wireless services provider also added postpaid phone subscribers for the third straight quarter. Sprint stock was up 2.5% in premarket trading Tuesday, following its earnings release. Sprint added 22,000 postpaid phone customers in the March quarter, while Verizon Communications ( VZ ) lost 8,000 and AT&T ( T ) lost 363,000. T-Mobile US ( TMUS ) was the biggest share gainer last quarter, adding 877,000 postpaid phone customers. “Postpaid” refers to customers who are billed monthly, a group that tends to spend more than prepaid customers who buy minutes as needed. In its fiscal year ended March 31, Sprint said it added 438,000 postpaid phone subscribers. Smaller Sprint and T-Mobile have been competing aggressively vs. wireless leaders Verizon and AT&T. “We generated positive postpaid phone net additions for the first time in three years, capped off by surpassing both Verizon and AT&T for the first time on record this quarter,” Sprint CEO Marcelo Claure said in the company’s earnings release. Sprint — majority owned by Japan’s Softbank ( SFTBY ) — said it lost 14 cents per share in fiscal Q4 vs. a 6-cent per-share loss in the year-earlier period. Revenue fell 2.5% to $8.07 billion. Analysts had modeled a 12 cent per-share loss on revenue of $8.02 billion. “Sprint reported solid fiscal Q4 results that were better than feared in a seasonally weak quarter,” said Wells Fargo analyst Jennifer Fritzsche in a research report. “The company added post-pay handsets in a quarter where AT&T and Verizon both reported net losses, and continues to make progress on its cost-reduction initiatives.”