Latest news with #Moore'sLaw
Yahoo
3 hours ago
- Business
- Yahoo
Seagate Technology (NASDAQ:STX) Exceeds Q2 Expectations But Stock Drops
Data storage manufacturer Seagate (NASDAQ:STX) announced better-than-expected revenue in Q2 CY2025, with sales up 29.5% year on year to $2.44 billion. On the other hand, next quarter's revenue guidance of $2.5 billion was less impressive, coming in 2.5% below analysts' estimates. Its non-GAAP profit of $2.59 per share was 6% above analysts' consensus estimates. Is now the time to buy Seagate Technology? Find out in our full research report. Seagate Technology (STX) Q2 CY2025 Highlights: Revenue: $2.44 billion vs analyst estimates of $2.43 billion (29.5% year-on-year growth, 0.6% beat) Adjusted EPS: $2.59 vs analyst estimates of $2.44 (6% beat) Adjusted EBITDA: $697 million vs analyst estimates of $699 million (28.5% margin, in line) Revenue Guidance for Q3 CY2025 is $2.5 billion at the midpoint, below analyst estimates of $2.56 billion Adjusted EPS guidance for Q3 CY2025 is $2.30 at the midpoint, below analyst estimates of $2.32 Operating Margin: 23.2%, up from 16.6% in the same quarter last year Free Cash Flow Margin: 17.4%, down from 20.1% in the same quarter last year Inventory Days Outstanding: 86, down from 96 in the previous quarter Market Capitalization: $31.93 billion "Seagate's strong FQ4 performance underscores our commitment to profitable growth, marked by a 30% year-over-year revenue increase, record gross margin, and non-GAAP EPS expanding to the top of our guidance range. These achievements reflect the structural enhancements we've implemented in our business and ongoing demand strength from cloud customers for our high-capacity drives," said Dave Mosley, Seagate's chief executive officer. Company Overview The developer of the original 5.25inch hard disk drive, Seagate (NASDAQ:STX) is a leading producer of data storage solutions, including hard drives and Solid State Drives (SSDs) used in PCs and data centers. Revenue Growth Reviewing a company's long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Seagate Technology struggled to consistently generate demand over the last five years as its sales dropped at a 2.8% annual rate. This was below our standards and is a tough starting point for our analysis. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. Long-term growth is the most important, but short-term results matter for semiconductors because the rapid pace of technological innovation (Moore's Law) could make yesterday's hit product obsolete today. Seagate Technology's annualized revenue growth of 11% over the last two years is above its five-year trend, suggesting its demand recently accelerated. This quarter, Seagate Technology reported robust year-on-year revenue growth of 29.5%, and its $2.44 billion of revenue topped Wall Street estimates by 0.6%. Beyond the beat, this marks 5 straight quarters of growth, implying that Seagate Technology is in the middle of its cycle - a typical upcycle generally lasts 8-10 quarters. Company management is currently guiding for a 15.3% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 15.2% over the next 12 months, an improvement versus the last two years. This projection is admirable and implies its newer products and services will catalyze better top-line performance. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Product Demand & Outstanding Inventory Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business' capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production. This quarter, Seagate Technology's DIO came in at 86, which is 11 days above its five-year average. These numbers suggest that despite the recent decrease, the company's inventory levels are higher than what we've seen in the past. Key Takeaways from Seagate Technology's Q2 Results We were impressed by Seagate Technology's strong improvement in inventory levels. We were also glad its EPS outperformed Wall Street's estimates. On the other hand, its both revenue and EPS guidance for next quarter missed, and this is weighing on shares. The stock traded down 7% to $142.25 immediately after reporting. Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
4 hours ago
- Business
- Yahoo
No Surprises In Teradyne's (NASDAQ:TER) Q2 Sales Numbers But Quarterly Revenue Guidance Misses Expectations
Semiconductor testing company Teradyne (NASDAQ:TER) met Wall Street's revenue expectations in Q2 CY2025, but sales fell by 10.7% year on year to $651.8 million. On the other hand, next quarter's revenue guidance of $740 million was less impressive, coming in 2.3% below analysts' estimates. Its non-GAAP profit of $0.57 per share was 4.9% above analysts' consensus estimates. Is now the time to buy Teradyne? Find out in our full research report. Teradyne (TER) Q2 CY2025 Highlights: Revenue: $651.8 million vs analyst estimates of $650.5 million (10.7% year-on-year decline, in line) Adjusted EPS: $0.57 vs analyst estimates of $0.54 (4.9% beat) Adjusted Operating Income: $98.2 million vs analyst estimates of $97.05 million (15.1% margin, 1.2% beat) Revenue Guidance for Q3 CY2025 is $740 million at the midpoint, below analyst estimates of $757.2 million Adjusted EPS guidance for Q3 CY2025 is $0.78 at the midpoint, below analyst estimates of $0.89 Operating Margin: 13.9%, down from 28.8% in the same quarter last year Free Cash Flow Margin: 20.2%, down from 23.5% in the same quarter last year Inventory Days Outstanding: 114, down from 116 in the previous quarter Market Capitalization: $14.53 billion 'Our Semiconductor Test Group drove better than expected results in the second quarter. System-on-a-Chip (SOC), primarily for artificial intelligence applications, was the strongest growth driver,' said Teradyne CEO, Greg Smith. Company Overview Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ:TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices. Revenue Growth A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Teradyne struggled to consistently increase demand as its $2.83 billion of sales for the trailing 12 months was close to its revenue five years ago. This wasn't a great result and suggests it's a lower quality business. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. Long-term growth is the most important, but short-term results matter for semiconductors because the rapid pace of technological innovation (Moore's Law) could make yesterday's hit product obsolete today. Just like its five-year trend, Teradyne's revenue over the last two years was flat, suggesting it is in a slump. This quarter, Teradyne reported a rather uninspiring 10.7% year-on-year revenue decline to $651.8 million of revenue, in line with Wall Street's estimates. Company management is currently guiding for flat sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 12.5% over the next 12 months, an improvement versus the last two years. This projection is noteworthy and implies its newer products and services will fuel better top-line performance. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Product Demand & Outstanding Inventory Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business' capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production. This quarter, Teradyne's DIO came in at 114, which is 28 days above its five-year average. These numbers suggest that despite the recent decrease, the company's inventory levels are higher than what we've seen in the past. Key Takeaways from Teradyne's Q2 Results We enjoyed seeing Teradyne beat analysts' EPS expectations this quarter. We were also happy its adjusted operating income narrowly outperformed Wall Street's estimates. On the other hand, its revenue guidance for next quarter missed. Overall, this quarter was mixed. The stock traded up 3% to $93.36 immediately after reporting. So should you invest in Teradyne right now? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Business Insider
19 hours ago
- Business
- Business Insider
Father-son startup MAUI Imaging raises $14 million to transform ultrasound technology. Read its pitch deck.
Medical startup MAUI Imaging announced Tuesday it has raised $14 million in Series D funding to develop ultrasound technology that can glimpse beyond traditional devices. While ultrasounds are mostly used for soft tissue, MAUI says it's developing a system to see through and around traditional barriers like bone, gas, fat, instruments, and implants. The company aims to expedite diagnosis and treatment, particularly in trauma scenarios, given that this kind of imaging typically requires CT or MRI scans. A father-son duo founded MAUI — an acronym for Multiple Aperture Ultrasound Insonification — out of their Silicon Valley garage in 2006. The late Don Specht started developing the technology while building space telescopes at Lockheed Martin, and sought — alongside his son David, a former Air Force flyer-turned-entrepreneur who serves as MAUI's CEO — to apply it to the human body. "We had to wait for Moore's Law to catch up," David Specht said of MAUI's long developmental road. The company emerged from stealth in August 2024 with a $4 million Department of Defense contract to study its applications in the field. The military is particularly interested in using the portable system for trauma assessment by corpsmen or medics with minimal training, Specht said. "They're trying to move the decision-making point as far forward as possible because they don't have enough doctors," Specht said. He added that MAUI's imaging results in a massive trove of data that could be useful for AI health tools. MAUI counts eight employees and eight consultants, and it has raised roughly $40 million to date. The Series D included equity funding and was led by ultrasound device company Acertara, which now has exclusive distribution rights to the system. The average sales price for the system is $85,000, plus maintenance costs, Specht said. While the FDA has cleared the device for traditional ultrasound uses, MAUI — which has 160 patents — will use data gleaned from its clinical trials with the military as it seeks clearance to make claims about seeing through and around obstructions. Here's a look at the pitch deck MAUI Imaging used to raise its $14 million Series D. Some slides and details have been redacted in order to share the deck publicly. MAUI Imaging MAUI Imaging MAUI Imaging MAUI Imaging MAUI Imaging MAUI Imaging MAUI Imaging MAUI Imaging MAUI Imaging MAUI Imaging MAUI Imaging MAUI Imaging MAUI Imaging MAUI Imaging MAUI Imaging
Time of India
5 days ago
- Business
- Time of India
Intel's foundry future depends on securing a customer for next-gen chipmaking tech
By Max A. Cherney and Stephen Nellis SAN FRANCISCO: Intel warned investors on Thursday that it may have to get out of the chip manufacturing business if it does not land external customers to make chips in its factories. New CEO Lip-Bu Tan said on Thursday the company's engineers were busy working with customers to jump-start its next-generation contract manufacturing process, or foundry, as the company announced big layoffs alongside a wider-than-expected third-quarter loss outlook. Those customers for the company's so-called 14A manufacturing process are crucial to the success of the technology - so much so that if it fails to secure a big one, it could shut down its cutting-edge manufacturing business altogether, according to Intel's quarterly filing on Thursday. The possibility that Intel could drop out of the cutting-edge manufacturing business would be a historic shift for a company that has described itself as a steward of Moore's Law - an observation by Intel co-founder Gordon Moore about the fast rate of development of the chip industry that held true for decades. Intel is the only U.S. chipmaker capable of making advanced computing chips. Intel has struggled for years due to management missteps, missing out on the AI race and losing market share to its longtime rival AMD . Former CEO Patrick Gelsinger poured money into Intel's foundry business, aiming to compete with chip manufacturing giant TSMC . Tan, who has already taken steps to right the ship, said on a post-earnings call on Thursday that he was personally reviewing all chip designs and investments. "We're developing Intel 14A ... from the ground up in close partnership with large external customers," Tan said in a memo released with the results. "Going forward, our investment in Intel 14A will be based on confirmed customer commitments. "We will build what our customers need, when they need it, and earn their trust through consistent execution." Intel said that without a significant customer, it would consider cancelling or pausing development of 14A and subsequent technologies. Should the company take the step, it planned to continue to manufacture chips with its 18A technology and a variant through 2030, according to the filing. In a post-earnings conference call, Tan said on Thursday that he is focused on working with customers to ensure 14A is a success and that tight collaboration with external customers is something that was absent from the company's 18A, which is set to go into high-volume production later this year. Tan said bringing those prospective customers in and gaining their feedback during 14A's development has already made it more promising than 18A. "That gave me a lot more confidence that this time, we have customers (that) are engaging early enough in the inception" of 14A, Tan said. "We learn from our mistakes, and we can learn quicker and then get a better result." The consequences of a decision to halt internal manufacturing would be significant for Intel, the filing said. It would mean that over time, Intel would become dependent on Taiwan's TSMC for contract manufacturing, or foundry, services. Doing so would also put it at a competitive disadvantage to competitors such as AMD, which has longer relationships and experience working with TSMC. Intel had roughly $100 billion of chipmaking equipment as of June 28. If the company halted its 14A manufacturing line, the company expects "significant material impairments" related to the company's foundry assets, the company's filing said.
The Hindu
5 days ago
- Business
- The Hindu
Intel's foundry future depends on securing a customer for next-gen chipmaking tech
Intel warned investors on Thursday that it may have to get out of the chip manufacturing business if it does not land external customers to make chips in its factories. New CEO Lip-Bu Tan said on Thursday the company's engineers were busy working with customers to jump-start its next-generation contract manufacturing process, or foundry, as the company announced big layoffs alongside a wider-than-expected third-quarter loss outlook. Those customers for the company's so-called 14A manufacturing process are crucial to the success of the technology and so much so that if it fails to secure a big one, it could shut down its cutting-edge manufacturing business altogether, according to Intel's quarterly filing on Thursday. The possibility that Intel could drop out of the cutting-edge manufacturing business would be a historic shift for a company that has described itself as a steward of Moore's Law: an observation by Intel co-founder Gordon Moore about the fast rate of development of the chip industry that held true for decades. Intel is the only U.S. chipmaker capable of making advanced computing chips. Intel has struggled for years due to management missteps, missing out on the AI race and losing market share to its longtime rival AMD. Former CEO Patrick Gelsinger poured money into Intel's foundry business, aiming to compete with chip manufacturing giant TSMC . Tan, who has already taken steps to right the ship, said on a post-earnings call on Thursday that he was personally reviewing all chip designs and investments. "We're developing Intel 14A ... from the ground up in close partnership with large external customers," Tan said in a memo released with the results. "Going forward, our investment in Intel 14A will be based on confirmed customer commitments. "We will build what our customers need, when they need it, and earn their trust through consistent execution." Intel said that without a significant customer, it would consider cancelling or pausing development of 14A and subsequent technologies. Should the company take the step, it planned to continue to manufacture chips with its 18A technology and a variant through 2030, according to the filing. In a post-earnings conference call, Tan said on Thursday that he is focused on working with customers to ensure 14A is a success and that tight collaboration with external customers is something that was absent from the company's 18A, which is set to go into high-volume production later this year. Tan said bringing those prospective customers in and gaining their feedback during 14A's development has already made it more promising than 18A. "That gave me a lot more confidence that this time, we have customers (that) are engaging early enough in the inception" of 14A, Tan said. "We learn from our mistakes, and we can learn quicker and then get a better result." The consequences of a decision to halt internal manufacturing would be significant for Intel, the filing said. It would mean that over time, Intel would become dependent on Taiwan's TSMC for contract manufacturing, or foundry, services. Doing so would also put it at a competitive disadvantage to competitors such as AMD, which has longer relationships and experience working with TSMC. Intel had roughly $100 billion of chipmaking equipment as of June 28. If the company halted its 14A manufacturing line, the company expects "significant material impairments" related to the company's foundry assets, the company's filing said.
