Reported Earnings • May 05
Second quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2022 results: EPS: US$1.21 (up from US$5.13 loss in 2Q 2021). Revenue: US$324.1m (up 12% from 2Q 2021). Net income: US$34.6m (up US$184.4m from 2Q 2021). Profit margin: 11% (up from net loss in 2Q 2021). The move to profitability was primarily driven by lower expenses. Revenue exceeded analyst estimates by 2.9%. Earnings per share (EPS) missed analyst estimates by 28%. Over the next year, revenue is forecast to grow 2.8%, compared to a 20% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Board Change • Apr 27
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 4 experienced directors. 3 highly experienced directors. Independent Director Anne Roby was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Mar 15
Upcoming dividend of US$0.46 per share Eligible shareholders must have bought the stock before 22 March 2022. Payment date: 22 April 2022. The company is not currently making a profit but it is cash flow positive. Trailing yield: 1.0%. Lower than top quartile of American dividend payers (3.7%). Lower than average of industry peers (1.4%). Reported Earnings • Feb 04
First quarter 2022 earnings: EPS misses analyst expectations First quarter 2022 results: EPS: US$0.96 (down from US$1.08 in 1Q 2021). Revenue: US$317.0m (up 10% from 1Q 2021). Net income: US$27.4m (down 13% from 1Q 2021). Profit margin: 8.7% (down from 11% in 1Q 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 47%. Over the next year, revenue is forecast to grow 3.8%, compared to a 18% growth forecast for the industry in the US. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 95 percentage points per year, which is a significant difference in performance. Price Target Changed • Jan 27
Price target increased to US$181 Up from US$167, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of US$176. The company is forecast to post earnings per share of US$7.40 next year compared to a net loss per share of US$2.35 last year. Recent Insider Transactions Derivative • Dec 30
Independent Director exercised options and sold US$3.9m worth of stock On the 22nd of December, Barbara Klein exercised 28k options at a strike price of around US$35.47 and sold these shares for an average price of US$178 per share. This trade did not impact their existing holding. Since March 2021, Barbara's direct individual holding has increased from 22.86k shares to 23.45k. Company insiders have collectively sold US$17m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions • Dec 29
VP & President of Electronic Materials recently sold US$1.7m worth of stock On the 20th of December, Daniel Woodland sold around 9k shares on-market at roughly US$184 per share. This was the largest sale by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Recent Insider Transactions Derivative • Dec 22
Interim CFO exercised options to buy US$65k worth of stock. On the 20th of December, Jeanette Press exercised options to buy 347 shares at a strike price of around US$146, costing a total of US$51k. This transaction amounted to 16% of their direct individual holding at the time of the trade. Since June 2021, Jeanette's direct individual holding has increased from 305.00 shares to 2.24k. Company insiders have collectively sold US$4.3m more than they bought, via options and on-market transactions in the last 12 months. Upcoming Dividend • Dec 14
Upcoming dividend of US$0.46 per share Eligible shareholders must have bought the stock before 21 December 2021. Payment date: 28 January 2022. The company is not currently making a profit but it is cash flow positive. Trailing yield: 1.3%. Lower than top quartile of American dividend payers (3.6%). Higher than average of industry peers (1.1%). Reported Earnings • Nov 12
Full year 2021 earnings released: US$2.35 loss per share (vs US$4.90 profit in FY 2020) The company reported a soft full year result with weaker earnings and weaker control over costs, although revenues improved. Full year 2021 results: Revenue: US$1.20b (up 7.5% from FY 2020). Net loss: US$68.6m (down 148% from profit in FY 2020). Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Upcoming Dividend • Oct 05
Upcoming dividend of US$0.46 per share Eligible shareholders must have bought the stock before 12 October 2021. Payment date: 05 November 2021. Trailing yield: 1.5%. Lower than top quartile of American dividend payers (3.6%). Higher than average of industry peers (1.3%). Price Target Changed • Aug 06
Price target decreased to US$164 Down from US$177, the current price target is an average from 4 analysts. New target price is 33% above last closing price of US$124. Stock is down 23% over the past year. Reported Earnings • Aug 05
Third quarter 2021 earnings released: EPS US$1.15 (vs US$1.19 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: US$309.5m (up 13% from 3Q 2020). Net income: US$33.6m (down 2.6% from 3Q 2020). Profit margin: 11% (down from 13% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Upcoming Dividend • Jun 15
Upcoming dividend of US$0.46 per share Eligible shareholders must have bought the stock before 22 June 2021. Payment date: 30 July 2021. Trailing yield: 1.2%. Lower than top quartile of American dividend payers (3.4%). In line with average of industry peers (1.3%). Reported Earnings • May 07
Second quarter 2021 earnings released: US$5.13 loss per share (vs US$1.12 profit in 2Q 2020) The company reported a soft second quarter result with weaker earnings and weaker control over costs, although revenues improved. Second quarter 2021 results: Revenue: US$290.5m (up 2.2% from 2Q 2020). Net loss: US$149.8m (down US$182.7m from profit in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Major Estimate Revision • Apr 16
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate fell from US$6.91 to US$6.21 per share. Revenue forecast steady at US$1.20b. Net income forecast to grow 28% next year vs 44% growth forecast for Semiconductor industry in the US. Consensus price target of US$187 unchanged from last update. Share price was steady at US$190 over the past week. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment improved over the past week After last week's 15% share price gain to US$197, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 31x in the Semiconductor industry in the US. Total returns to shareholders of 90% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$95.50 per share. Upcoming Dividend • Mar 16
Upcoming Dividend of US$0.46 Per Share Will be paid on the 23rd of April to those who are registered shareholders by the 22nd of March. The trailing yield of 1.1% is below the top quartile of American dividend payers (3.5%), and is lower than industry peers (1.5%). Recent Insider Transactions Derivative • Mar 11
President exercised options and sold US$4.0m worth of stock On the 5th of March, David Li exercised 38k options at a strike price of around US$60.27 and sold these shares for an average price of US$165 per share. This trade did not impact their existing holding. For the year to September 2020, David's total compensation was 14% salary and 86% non-salary (Indicating these sales could comprise a meaningful part of their income for the year). Since June 2020, David's direct individual holding has increased from 56.26k shares to 66.91k. Company insiders have collectively sold US$7.8m more than they bought, via options and on-market transactions in the last 12 months. Is New 90 Day High Low • Feb 25
New 90-day high: US$179 The company is up 18% from its price of US$151 on 25 November 2020. The American market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Semiconductor industry, which is up 16% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$93.83 per share. Price Target Changed • Feb 23
Price target raised to US$178 Up from US$163, the current price target is an average from 5 analysts. The new target price is 7.7% above the current share price of US$165. As of last close, the stock is up 8.9% over the past year. Major Estimate Revision • Feb 11
Analysts increase EPS estimates to US$6.91 The 2021 consensus revenue estimate increased from US$1.15b to US$1.20b. The earnings per share estimate also received an upgrade from US$6.21 to US$6.91 for the same period. Net income is expected to grow by 51% next year compared to 42% growth forecast for the Semiconductor industry in the US. The consensus price target increased from US$163 to US$172. Share price is up 6.1% to US$167 over the past week. Is New 90 Day High Low • Feb 09
New 90-day high: US$173 The company is up 3.0% from its price of US$169 on 10 November 2020. The American market is up 16% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Semiconductor industry, which is up 25% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$94.13 per share. Reported Earnings • Feb 05
First quarter 2021 earnings released: EPS US$1.08 (vs US$1.32 in 1Q 2020) The company reported a soft first quarter result with weaker earnings and profit margins, although revenues improved. First quarter 2021 results: Revenue: US$287.9m (up 1.7% from 1Q 2020). Net income: US$31.5m (down 18% from 1Q 2020). Profit margin: 11% (down from 14% in 1Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 21% per year, which means it is tracking significantly ahead of earnings growth. Analyst Estimate Surprise Post Earnings • Feb 05
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 3.4%. Earnings per share (EPS) missed analyst estimates by 17%. Over the next year, revenue is forecast to grow 3.5%, compared to a 17% growth forecast for the Semiconductor industry in the US. Is New 90 Day High Low • Jan 20
New 90-day high: US$173 The company is up 14% from its price of US$151 on 21 October 2020. The American market is up 13% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Semiconductor industry, which is up 19% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$104 per share. Recent Insider Transactions • Dec 16
VP & President of Performance Materials recently sold US$201k worth of stock On the 10th of December, Jeffrey Dysard sold around 1k shares on-market at roughly US$147 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$3.2m more than they bought in the last 12 months. Recent Insider Transactions Derivative • Dec 13
VP & President of Performance Materials notifies of intention to sell stock Jeffrey Dysard intends to sell roughly 1.37k shares in the next 90 days after lodging an Intent To Sell Form on the 10th of December. If the sale is conducted around the recent share price of US$146, it would amount to US$201k. Since December 2019, Jeffrey's direct individual holding has increased from 4.01k shares to 6.11k. Company insiders have collectively sold US$10m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions • Dec 02
Independent Director recently sold US$95k worth of stock On the 25th of November, Barbara Klein sold around 625 shares on-market at roughly US$152 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$3.3m more than they bought in the last 12 months. Recent Insider Transactions Derivative • Nov 30
Independent Director notifies of intention to sell stock Barbara Klein intends to sell roughly 6.63k shares in the next 90 days after lodging an Intent To Sell Form on the 25th of November. If the sale is conducted around the recent share price of US$152, it would amount to US$1.0m. Since March 2020, Barbara's direct individual holding has decreased from 28.70k shares to 23.49k. Company insiders have collectively sold US$10.0m more than they bought, via options and on-market transactions in the last 12 months. Major Estimate Revision • Nov 26
Analysts update estimates The 2021 consensus earning per share (EPS) estimate was lowered from US$7.10 to US$6.21. Revenue estimate was approximately flat at US$1.15b. Net income is expected to grow by 21% next year compared to 28% growth forecast for the Semiconductor industry in the US. The consensus price target increased from US$154 to US$155. Share price is up 6.8% to US$151 over the past week. Reported Earnings • Nov 20
Full year 2020 earnings released: EPS US$4.90 The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: US$1.12b (up 7.6% from FY 2019). Net income: US$142.8m (up 264% from FY 2019). Profit margin: 13% (up from 3.8% in FY 2019). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Analyst Estimate Surprise Post Earnings • Nov 20
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 0.5%. Earnings per share (EPS) exceeded analyst estimates by 6.4%. Over the next year, revenue is forecast to grow 3.0%, compared to a 16% growth forecast for the Semiconductor industry in the US. Valuation Update With 7 Day Price Move • Nov 14
Market pulls back on stock over the past week After last week's 16% share price decline to US$135, the stock is trading at a trailing P/E ratio of 45.9x, down from the previous P/E ratio of 54.4x. This compares to an average P/E of 37x in the Semiconductor industry in the US. Total returns to shareholders over the past three years are 43%. Reported Earnings • Nov 12
Full year 2020 earnings released: EPS US$4.90 The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: US$1.12b (up 7.6% from FY 2019). Net income: US$142.8m (up 264% from FY 2019). Profit margin: 13% (up from 3.8% in FY 2019). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Analyst Estimate Surprise Post Earnings • Nov 12
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 0.5%. Earnings per share (EPS) exceeded analyst estimates by 6.4%. Over the next year, revenue is forecast to grow 2.7%, compared to a 16% growth forecast for the Semiconductor industry in the US. Is New 90 Day High Low • Nov 12
New 90-day high: US$169 The company is up 3.0% from its price of US$164 on 14 August 2020. The American market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Semiconductor industry, which is up 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$122 per share.