Foundry services provider TriQuint Semiconductor, Inc. (TQNT), which is in a merger with peer RF Micro Devices, Inc. (RFMD), reported Tuesday a profit for the third quarter that nearly doubled from last year, reflecting significantly improved margins and revenue growth.
Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company are provided earnings and revenue guidance for the fourth quarter, above Street view. Its shares were up 5 percent in extended trading on the rosy outlook.
"Our financial results in the third quarter were well above expectations due to strong demand and an improved product mix driven by a strategic focus on delivering high performance solutions in each of our markets. The success we are seeing today is due to years of investment in BAW/SAW and high performance GaAs/GaN technologies," President and CEO Ralph Quinsey said in a statement.
The Hillsboro, Oregon-based company reported net income of $26.18 million or $0.14 per share for the third quarter, higher fr0m $13.56 million or $0.08 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter was $51.41 million or $0.28 per share, compared to $26.31 million or $0.16 per share in the year-ago quarter.
On average, 24 analysts polled by Thomson Reuters expected the company to report earnings of $0.24 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter increased 8 percent to $272.15 million from $250.84 million in the same quarter last year, and topped twelve Wall Street analysts' consensus estimate of $261.34 million.
Operating margin for the quarter expanded 570 basis points to 13.2 percent, as gross margin improved 870 basis points, partially offset by a 300 basis points increased in total operating expense, as a percentage of revenues, due to merger and integration related costs.
Looking ahead to the fourth quarter, the company expects adjusted earnings in a range of $0.40 to $0.45 per share, on projected quarterly revenues between $330 million and $340 million. Street is currently looking for earnings of $0.35 per share on revenues of $313.9 million for the quarter.
"We continue to see robust demand and are raising our outlook for the fourth quarter. We remain on track to launch a new combined company, Qorvo, with the merger of TriQuint and RFMD expected to close by year end," Quinsey added.
TQNT closed Tuesday's regular trading session at $18.43, up $0.62 or 3.48% on a volume of 4.38 million shares. The stock gained a further $0.87 or 4.72% in after-hours trading.
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