Dialog Semiconductor: Q4-15 beats, but Q1-16 revenue outlook disappointing. Looking to set up a share buy-back.NEUTRAL, Fair Value EUR38 (+15%)
This morning, Dialog Semiconductor reports Q4-15 results above consensus estimates. Q4-15 sales at USD397m (up +20.1% seq.) were already known as the data was pre-released in January. For Q4-15, Underlying EBIT, which is the one comparable to consensus data, is USD105m and EPS came out at USD0.97, i.e. 9% above consensus expectations of EBIT at USD96.6m and EPS at USD0.89. However, for Q1-16, the company sees revenue in the range of USD230m to USD245m, which, at the mid-point (USD238m) is 7% below the current Street expectation of USD257m and 6% below our estimate at USD254m. Finally, the group adds that it is looking to put in place a share buy-back program. We keep our Neutral recommendation, waiting for the conference call to be held today at 10:30am.
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