Integrated Device Technology Second Quarter Earnings Sneak Peek

Integrated Device Technology, Inc. (NASDAQ:IDTI) will unveil its latest earnings on Monday, October 29, 2012. Integrated Device Technology designs, develops, manufactures and markets a broad range of low-power, high-performance mixed signal semiconductor solutions for the advanced communications, computing and consumer industries.

Integrated Device Technology, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 5 cents per share, a decline of 44.4% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 25% compared to last year’s 21 cents.

Past Earnings Performance: Last quarter, the company reported net income of 6 cents per share versus a mean estimate of profit of. The company has beaten estimates for the past three quarters.

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A Look Back: In the first quarter, the company swung to a loss of $4.3 million (3 cents a share) from a profit of $7.7 million (5 cents) a year earlier, but beat analyst expectations. Revenue fell 14.1% to $130.2 million from $151.5 million.

Stock Price Performance: Between July 30, 2012 and October 23, 2012, the stock price rose 79 cents (15.9%), from $4.97 to $5.76. The stock price saw one of its best stretches over the last year between September 7, 2012 and September 14, 2012, when shares rose for six straight days, increasing 11.8% (+67 cents) over that span. It saw one of its worst periods between May 7, 2012 and May 18, 2012 when shares fell for 10 straight days, dropping 10.7% (-64 cents) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 3.8% in revenue from the year-earlier quarter to $133.1 million.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 17.1% in the second quarter of the last fiscal year, 21.7% in third quarter of the last fiscal year and 19.1% in the fourth quarter of the last fiscal year and then fell again in the first quarter.

Analyst Ratings: With three analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 5.42 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 6.06 in the fourth quarter of the last fiscal year to the last quarter driven in part by a decrease in current assets. Current assets decreased 8.5% to $440.6 million while liabilities rose by 2.3% to $81.3 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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