Stock Analysis

QuickLogic Corporation (NASDAQ:QUIK) Released Earnings Last Week And Analysts Lifted Their Price Target To US$11.00

NasdaqCM:QUIK
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QuickLogic Corporation (NASDAQ:QUIK) shareholders are probably feeling a little disappointed, since its shares fell 4.7% to US$7.70 in the week after its latest second-quarter results. It looks like the results were pretty good overall. While revenues of US$4.5m were in line with analyst predictions, statutory losses were much smaller than expected, with QuickLogic losing US$0.04 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for QuickLogic

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NasdaqCM:QUIK Earnings and Revenue Growth August 18th 2022

Taking into account the latest results, the current consensus from QuickLogic's three analysts is for revenues of US$19.2m in 2022, which would reflect a meaningful 18% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 46% to US$0.20. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$19.2m and losses of US$0.20 per share in 2022.

The consensus price target rose 10% to US$11.00, with the analysts increasing their valuations as the business executes in line with forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on QuickLogic, with the most bullish analyst valuing it at US$12.00 and the most bearish at US$8.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await QuickLogic shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that QuickLogic's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 40% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 0.04% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 8.4% annually. Not only are QuickLogic's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for QuickLogic going out to 2023, and you can see them free on our platform here.

You still need to take note of risks, for example - QuickLogic has 4 warning signs we think you should be aware of.

Valuation is complex, but we're here to simplify it.

Discover if QuickLogic might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.