NEW YORK (TheStreet) -- These five semiconductor companies are leading the S&P 500 in an industry-wide rally on Tuesday.
Integrated Device Technology (IDTI - Get Report) led the gains, jumping 12.3% to $10.67 as of 12:20 p.m. EDT. On Monday evening, the San Jose, Calif.-based company reported second-quarter earnings of 10 cents a share on revenue of $124.6 million, compared to 9 cents on $133.4 million a year earlier. Analysts surveyed by Thomson Reuters had expected 8 cents a share on revenue of $125.1 million.
Management also announced it had increased its share repurchase authorization to $150 million and will resume repurchase activity in the current quarter.
TheStreet Ratings team rates Integrated Device Tech as a Buy with a ratings score of B-. The team has this to say about its recommendation:"We rate Integrated Device Tech INC (IDTI) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
- You can view the full analysis from the report here: IDTI Ratings Report
- The revenue growth greatly exceeded the industry average of 9.0%. Since the same quarter one year prior, revenues rose by 44.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 729.16% and other important driving factors, this stock has surged by 225.53% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MU should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Micron Technology Inc reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, Micron Technology Inc turned its bottom line around by earning $1 a share vs. -$1.04 a share in the prior year. This year, the market expects an improvement in earnings ($2.13 vs. $1).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 802.9% when compared to the same quarter one year prior, rising from -$243 million to $1,708 million.
- You can view the full analysis from the report here: MU Ratings Report
- You can view the full analysis from the report here: CCMP Ratings Report
- You can view the full analysis from the report here: TQNT Ratings Report
- The revenue growth came in higher than the industry average of 9%. Since the same quarter one year prior, revenues slightly increased by 9.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- HIMX's debt-to-equity ratio is very low at 0.17 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.41, which illustrates the ability to avoid short-term cash problems.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, Himax Technologies Inc's return on equity exceeds that of both the industry average and the S&P 500.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 398.71% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HIMX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Himax Technologies Inc has improved earnings per share by 22.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, Himax Technologies Inc increased its bottom line by earning 30 cents a share vs. 6 cents a share in the prior year. This year, the market expects an improvement in earnings (37 cents vs. 30 cents).
- You can view the full analysis from the report here: HIMX Ratings Report
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