QuickLogic (QUIK) to Report Q2 Earnings: What's in the Cards?
QuickLogic QUIK is slated to release second-quarter 2023 results on Aug 14.
For second-quarter revenues, the Zacks Consensus Estimate is currently pegged at $5 million, suggesting growth of 10.1% year over year.
The consensus mark for the bottom line is pegged at a loss of 2 cents per share, which remained unchanged in the past 60 days. The bottom-line estimate suggests a decline from the year-ago quarter's breakeven earnings.
QUIK’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 50.8%.
QuickLogic Corporation Price and EPS Surprise
QuickLogic Corporation price-eps-surprise | QuickLogic Corporation Quote
Factors to Note
QuickLogic’s second-quarter results are likely benefit from the increasing adoption of the company’s sensor processing solutions and embedded FPGA (eFPGA) Intellectual Property (IP) Licensing products. The company’s eFPGA IP-based products, which include the rad-hard program for the U.S. government, continued shipments of smart connectivity, display products and SensiML AI software platform, are likely to have been a key driver in the to-be-reported quarter.
In first-quarter 2023, QuickLogic’s New products revenues accounted for 74% of total quarterly revenues, while Mature products segment represented the remaining 26%. QUIK’s New products include revenues from eFPGA IP intellectual property, professional services, QuickAI and SensiML AI software as a service.
Further, a healthy pipeline of deals is likely to have positively impacted the company. In January, QuickLogic partnered with Andes Technology Corporation for eFPGA joint promotion. This was intended to ensure that Andes’ customers integrate QuickLogic eFPGA technology with the RISC-V processor-based subsystems to give their chip customers a wide range of post-manufacturing flexibility benefits.
In December 2022, QUIK signed an eFPGA IP agreement with Yu-Hsin Layout Technology to allow the Taiwan-based company to utilize QuickLogic eFPGA IP technology to add eFPGA integration to its wide array of design services. In November 2022, QUIK signed a similar deal with CHIP-gogo to match the Japanese firm’s broad semiconductor IP and LSI design experience and deep customer relationships throughout Japan with the extensive post-manufacturing re-programmability benefits offered by QuickLogic eFPGA technology.
Geographically, North America, Europe and Asia Pacific represented 80%, 3% and 17% of QuickLogic’s first-quarter revenues, respectively. The share of North America is likely to have gone further up in the quarter to be reported. The company has been witnessing increasing demand for wearable products in the business-to-business market, primarily driven by higher demand from hospitals and fitness focused companies, which need to track body activities and biometric information.
All these factors are likely to positively impact results of the to-be-reported quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for QuickLogic this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Although QUIK carries a Zacks Rank #3 at present, it has an Earnings ESP of -50.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Per our model, Navigator Holdings NVGS, Walmart WMT and Coty COTY have the right combination of elements to post an earnings beat in upcoming releases.
Navigator has an Earnings ESP of +8.00% and sports a Zacks Rank #1 at present. It is scheduled to report second-quarter 2023 results on Aug 16. NVGS’ earnings beat the Zacks Consensus Estimate in two of the preceding four quarters, missing twice, the negative surprise being 16.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVGS’ quarterly earnings is pegged at 25 cents per share, suggesting a year-over-year surge of 38.9%. Quarterly revenues are estimated to increase 10.4% year over year to $113.8 million.
Currently, Walmart has an Earnings ESP of +1.38% and carries a Zacks Rank #2. It is set to report fiscal second-quarter 2023 results on Aug 17, before market open. WMT’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering a surprise of 12%, on average.
The Zacks Consensus Estimate for WMT’s fiscal second-quarter earnings is pegged at $1.67 per share, implying a year-over-year decline of 5.7%. The company is estimated to report revenues of $159.52 billion, which suggests an improvement of 4.4% from the year-ago quarter.
Coty has an Earnings ESP of +20.00% and presently carries a Zacks Rank #2. It is slated to report its fiscal fourth-quarter 2023 results on Aug 22. COTY’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters, matching twice, the average surprise being 145%.
The Zacks Consensus Estimate for Coty’s fiscal fourth-quarter earnings is pegged at 2 cents per share, indicating a 300% increase from the year-ago quarter’s loss of a penny. The consensus mark for revenues is pegged at $1.32 billion, suggesting a year-over-year climb of 13.4%.
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