BMO Capital and RBC Capital are two more firms now cutting estimates for Apple's September quarter given what they see will be a delay in availability of the next iPhone, but both bulls are unfazed by the matter, seeing a simple shifting of revenue from that quarter into December and subsequent quarters.
Bernstein chip analyst Stacy Rasgon surmises a second hold-out to Qualcomm on royalties could be Chinese telecom equipment giant Huawei, which, if true, raises questions about the long struggle Qualcomm went through with Chinese regulators.
Shares of Skyworks slipped despite a quarterly earnings beat and higher forecast. Bulls raised price targets and urged investors not to be upset about the potential for a delay in the manufacturing of Apple's next iPhone, in which Skyworks plays an increasingly prominent role, they contend.
Chip makere Maxim lost 6% in late trading, as it said revenue will come in lower than analysts expected this quarter because of weakness in the smartphone market it serves, even though every other part of its business is doing "very, very well," including sales of chips for 100-gigabit-per-second links" for data centers.
Shares of Skyworks, which makes power amplifiers for the cellular connection in iPhone and other mobile devices, dropped almost 5% in late trading despite the company beating quarterly expectations and forecasting this quarter higher as well.
Qualcomm's chip sales improved, suggesting it is beating battle the threat of Intel, but its licensing business remains under the shadow of its legal battle with top customer Apple. All that adds up to a "binary" situation, say some, a stock worth $30 or $80.
Qualcomm stock sagged by about 3% in late trading, even though it beat fiscal Q3 revenue expectations and also beat with its revenue outlook this quarter. The EPS forecast was below what Wall Street has been modeling for this quarter, which Raymond James analyst Tavis McCourt thinks may be a result of the company getting many more modem-chip shipments than expected but at a lower profit margin than would have been expected.