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Qaem-5 precision-guided munition, documented by Conflict Armament Research in Ukraine. Shahed-131 UAV documented by Conflict Armament Research in Ukraine. Circuit boards of four different items of Russian military equipment found in Ukraine by Conflict Armament Research investigators. Electronic components documented by Conflict Armament Research investigators in Ukraine. Source: Conflict Armament Research
Analog Devices ' "best-in-class" free cash flow returns and exposure to a myriad of growth opportunities situate the chip stock for nearly 30% upside in the months ahead, according to Bank of America. "We value ADI at the higher end of peer comps due to ADI's growth potential and free cash flow generation." According to Arya, Analog Devices offers an intriguing combination of offensive and defensive attributes. ADI YTD mountain Shares of Analog Devices in 2023 Arya added that Analog Devices' valuation is also compelling. The stock's 2023 and 2024 enterprise value-to-free cash flow multiples are "about 2x turns below SPX industrial peers," he said.
The Philadelphia SE Semiconductor index (.SOX) is up about 16% so far this year, dwarfing the 3% year-to-date gain for the S&P 500 (.SPX) and the Nasdaq Composite’s (.IXIC) 8.5% rise. With semiconductors a key component in countless products, some investors are betting economic strength could help the shares outperform. "If that’s the case, then I think semiconductors can do very well.”Of course, economic strength has been a double-edged sword for stocks lately. Semiconductor shares have pulled back recently along with broader markets on worries of a "no landing" economic scenario in which strong growth keeps inflation elevated and prompts the Fed to raise interest rates higher for longer. And if tighter Fed policy eventually brings on a recession in the second half of the year, as some fear, semis could suffer.
The Philadelphia SE Semiconductor index (.SOX) is up about 16% so far this year, dwarfing the 3% year-to-date gain for the S&P 500 (.SPX) and the Nasdaq Composite’s (.IXIC) 8.5% rise. With semiconductors a key component in countless products, some investors are betting economic strength could help the shares outperform. "If that’s the case, then I think semiconductors can do very well.”Of course, economic strength has been a double-edged sword for stocks lately. Semiconductor shares have pulled back recently along with broader markets on worries of a "no landing" economic scenario in which strong growth keeps inflation elevated and prompts the Fed to raise interest rates higher for longer. And if tighter Fed policy eventually brings on a recession in the second half of the year, as some fear, semis could suffer.
This earnings season has been rocky, at best, but some companies have stood out and are expected to see strong gains going forward. Earnings growth estimates have also grown by more than 10 percentage points since then. The stock is up more than 20% this earnings season, and analysts see the stock rising about 20% over the next 12 months, FactSet data shows. Before the earnings season, they forecast a 34% profit decline. Shares of Aptiv, which develops automotive tech, are up more than 17% since the earnings season began, and analysts see nearly 20% more upside, FactSet data shows.
STMicroelectronics posts fourth-quarter sales rise
  + stars: | 2023-01-26 | by ( Martin Coulter | ) www.reuters.com   time to read: +1 min
LONDON, Jan 26 (Reuters) - European chipmaker STMicroelectronics on Thursday beat fourth-quarter sales expectations, despite challenging economic conditions, benefiting from strong customer demand. Net revenue rose to $4.42 billon from $4.32 billion the previous quarter. Analysts had on average expected sales of $4.32 billion, IBES data from Refinitiv Eikon showed. Citing strong demand and increased manufacturing capacity, Chery said the company expects full-year revenue of $16.8 billion to $17.8 billion. The company has previously targeted full-year revenue of $20 billion by 2027.
Texas Instruments Has a Lot Riding on Auto Chip Pileup
  + stars: | 2023-01-25 | by ( Dan Gallagher | ) www.wsj.com   time to read: 1 min
Texas Instruments just projected its biggest sales slowdown in three years. Wall Street almost seems disappointed it isn’t worse. The chipmaker’s fourth-quarter results late Tuesday reflected the sharp downturn in demand being felt across many of the sector’s end markets. Revenue growth went negative on a year-over-year basis for the first time since early 2020 as the company noted declining sales to its industrial market as well as segments reflecting communications equipment, personal electronics and gear used in data centers.
Jan 24 (Reuters) - Texas Instruments (TXN.O) forecast first-quarter revenue and profit largely below Wall Street targets on Tuesday, as an economic downturn threatens to shackle demand from the chipmaker's so far resilient markets. Order cancellations rose during the fourth quarter, head of investor relations Dave Pahl told analysts in an earnings call. Total revenue fell 3% to $4.67 billion in the quarter, compared with estimates of $4.62 billion. Texas Instruments expects revenue of $4.17 billion to $4.53 billion in the first quarter, the mid-point of which is lower than estimates of $4.41 billion, according to Refinitiv data. It expects current-quarter earnings per share between $1.64 and $1.90, the mid-point of which also fell short of expectations of $1.87.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC’s full interview with Virtus' Joe Terranova, SVB’s Shannon Saccocia and G-Squared’s Victoria GreeneVirtus' Joe Terranova, SVB’s Shannon Saccocia and G-Squared’s Victoria Greene, join 'Closing Bell: Overtime' to discuss Microsoft and Texas Instruments earnings reports and the broader market.
Jan 24 (Reuters) - Chipmaker Texas Instruments (TI) (TXN.O) forecast first-quarter revenue and profit below Wall Street targets on Tuesday as a wider economic downturn threatens to shake demand even in end-markets that were resilient last year. The automotive market was the only exception to weak demand, TI Chief Executive Rich Templeton, who will step down in April, said on Tuesday. TI's revenue fell 3% to $4.67 billion, but beat analysts' average estimate of $4.62 billion, according to Refinitiv data. The company expects revenue of $4.17 billion to $4.53 billion in the first quarter, the mid-point of which is lower than estimates of $4.41 billion. It expects current-quarter earnings per share between $1.64 and $1.90, the mid-point of which also fell short of expectations.
Morning Bid: It's all about the weather
  + stars: | 2023-01-24 | by ( ) www.reuters.com   time to read: +2 min
A look at the day ahead in European and global markets from Wayne Cole. Essentially banks could borrow at an average 0.145% fixed for five years to invest in JGBs - what could go wrong? The U.S. manufacturing PMI is forecast to dip to 46.0 from 46.2, with services at 45.0 from 44.7. Ironically, the weather in the States in recent weeks has been a lot worse than in Europe, which was not how this story was supposed to pan out. ($1 = 130.2100 yen)Reporting by Wayne Cole; Editing by Jacqueline WongOur Standards: The Thomson Reuters Trust Principles.
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailEconomic recession has already been priced into stocks, says Virtus' Joe TerranovaJoe Terranova, Virtus Investment Partners, joins 'Closing Bell: Overtime' to discuss Microsoft and Texas Instruments earnings reports and the broader market.
Morning bid: Tech tonic, recession rethink
  + stars: | 2023-01-24 | by ( ) www.reuters.com   time to read: +5 min
Pumped-up hopes for U.S. tech sector earnings in a heavy week for corporate updates generally have twinned with the latest sign Europe may have dodged a winter recession. With Microsoft in view, attention will be on the extent for cost cutting and job shedding in the tech and digital space. Music-streamer Spotify (SPOT.N) rose 2% on Monday as it joined a growing list of tech firms to announce staff cuts, shedding 6% of its workforce. Reports of Ford's F.N plan to cut 3,200 workers in Europe shows job attrition may not be confined to tech sector. Whether that's just too rosy and markets have yet to price a full-blown earnings recession is this year's big question.
Capital One — The financial stock dipped more than 1% in extended trading after the company posted an earnings miss. Texas Instruments — The chip stock rose under 1% in extended trading after the company reported quarterly results that came in above expectations. Texas Instruments reported earnings of $2.13 per share, beating expectations of $1.98 per share, according to FactSet. Canadian National Railway — Canadian National Railway saw its shares dip more than 4% in extended trading, even as its quarterly results beat expectations. The company reported an EPS of 2.10 in Canadian dollars, compared to FactSet's estimate of C$2.08.
"We expect non-US equities to outperform the S & P 500 in 2023, and many clients agree." One way to play the trend is through companies with foreign revenue exposure, according to Goldman. The Wall Street firm said its China Sales Exposure basket, which contains Russell 1000 companies with the highest sales exposure to China, has outpaced the S & P 500 by 5 percentage points as the dollar declined. Investors should also look at S & P 500 stocks with high international sales exposure, Goldman said. Netflix is one of the stocks with high international revenue exposure.
Did the economy end 2022 with a bang or a whimper?
  + stars: | 2023-01-22 | by ( Paul R. La Monica | ) edition.cnn.com   time to read: +7 min
But the United States economy still seems to be chugging along just fine after experiencing a hiccup in the first half of 2022. Despite worries about weaker consumer spending during the holidays, economists are forecasting solid growth for the fourth quarter. Yearning for earningsMore blue chip companies will report fourth quarter results (and perhaps give guidance about the first quarter of 2023 and beyond) this week. But according to FactSet senior earnings analyst John Butters, earnings for the tech sector are expected to fall nearly 10% in the fourth quarter compared to the fourth quarter of 2021. Verizon (VZ), Johnson & Johnson (JNJ), Travelers (TRV), 3M (MMM), Boeing (BA), Dow (DOW), Visa (V), Chevron (CVX) and American Express (AXP).
Within the portfolio, we'll get the latest earnings from Danaher (DHR), Halliburton (HAL), and Johnson & Johnson (JNJ) on Tuesday before the opening bell. While the results will be important as always, we are most interested in the earnings call with analysts and investors. Housing Starts fell 1.4% in December to a seasonally adjusted annual rate of 1.38 million, slightly above the 1.36 million expected. Building permits dropped 1.6% in December to a seasonally adjusted annual rate of 1.33 million, below expectations of 1.37 million. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
Texas Instruments Names Haviv Ilan as New Chief Executive
  + stars: | 2023-01-20 | by ( Denny Jacob | ) www.wsj.com   time to read: 1 min
Texas Instruments Inc.’s leadership transition comes at a challenging time for the chip industry that has gone from a period of shortage to glut. Texas Instruments Inc. on Thursday said its board selected Haviv Ilan as its next president and chief executive, effective April 1. The chip maker said Mr. Ilan will succeed Rich Templeton , who will transition out of these roles over the next two months after nearly 30 years at a senior level at the company. He will remain chairman.
I do think that will happen even more in the week ahead as the Fed is in a blackout period. S & P Global PMI data is released for both services and manufacturing Tuesday. "The market continues to think the Fed does not have to administer as much medicine as the Fed tells us they plan to. Earnings, earnings, earnings Stocks were lower in the past week, with the S & P 500 off by 1.8%. "It's a mild earnings recession, but it's an earnings recession.
Jan 19 (Reuters) - Chipmaker Texas Instruments Inc (TXN.O) said on Thursday that Chief Executive Rich Templeton will step down from the role in April after nearly 20 years. He will be succeeded by company veteran and Chief Operating Officer Haviv Ilan. Templeton will stay on as chairman of the board. Reporting by Yuvraj Malik in Bengaluru; Editing by Sriraj KalluvilaOur Standards: The Thomson Reuters Trust Principles.
Texas Instruments on Thursday announced that its CEO for almost 19 years, Rich Templeton, will step down on April 1 as Haviv Ilan, its chief operating officer, replaces him. But Texas Instruments had carried out a similar plan in 2018 that backfired. "Crutcher resigned due to violations of the company's code of conduct," Texas Instruments said at the time. Ilan arrived at Texas Instruments in 1999 by way of the company acquisition of the Israeli wireless startup Butterfly. Before becoming operating chief at Texas Instruments, he had been senior vice president of its analog signal chain and high-performance analog divisions.
Semiconductor stocks suffered a series of blows in 2022 as demand for consumer discretionary items fell off a cliff and supply chain disruptions continued. Betting on semiconductor favorites Despite ongoing volatility, some analysts and investors are still betting on once high-flying names in 2023, even though the challenges of 2022 continue. One of those is Advanced Micro Devices, a chip stock commonly connected with PC and server chips that fell hard in 2022. Texas Instruments held up better than the rest of the semiconductor market in 2022, shedding a little more than 12%. Bailey is mostly shying away from former, rapid growth names, with small bets on ASML and Marvell for clients looking for possible higher growth.
Josh Brown issued a warning for investors on Tuesday, noting that new bear market lows could soon be reached. I think we break the October lows," Brown, the CEO of Ritholtz Wealth Management, said Tuesday on CNBC's " Halftime Report ." Brown pointed to one view held among even bullish strategists on Wall Street that stocks will sell off in the first half of 2023, before rebounding in the second half of the year. "It's so much more rational to be in that camp, given all the headwinds, all of the negativity," Brown added. Brown named aerospace and defense as his favorite sector for 2023, saying equities in the sector will serve as an hedge for growing geopolitical risks this year.
Despite the comedown, many stocks still are expensive on a price-to-earnings basis when compared with the broader S & P 500, which trades at 18 times earnings. As of Monday's close, Meta shares trade at 11 times earnings on a 12-month trailing basis, down from 24 times at the start of 2022. PE ratios for all three stocks have come down significantly this year, with Cisco trading at 17 times earnings, compared to more than 23 times at the start of 2022. Within the semiconductor sector, Meeks favors names operating within industrials and autos, that are better positioned in a slowdown. While risk-averse tech may be the name of the game for 2023, some investors caution opting out of growth altogether.
The Special Technology Centre did not respond to a written request for comment. Russia's Ministry of Defence did not respond to questions from Reuters about the impact of sanctions and its relationship to the Special Technology Centre. Reached by phone, Alexey Terentyev, a top scientist and major shareholder at the Special Technology Centre, said the war has forced it to focus on making drones. Those corporate records show iLogic is based at the same St Petersburg office address as the Special Technology Centre. In a brief telephone interview, Roman Agafonnikov, chief executive officer of the Special Technology Centre, said he didn't know anything about iLogic.
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