Integrated Device Technology, Inc. (NASDAQ:IDTI) delivered fiscal third-quarter 2019 non-GAAP earnings of 50 cents per share, beating the Zacks Consensus Estimate by 4 cents. The figure also increased 19% on a year-over-year basis.
Revenues increased 10.8% year over year and 2.2% on a sequential basis to $240.6 million. The figure also came ahead of the Zacks Consensus Estimate of $237 million.
The company entered into a definitive agreement to be acquired by Renesas Electronics Corporation for around $6.7 billion in an all-cash transaction. The deal is expected to be closed in the first half of 2019.
Notably, shares of Integrated Device have returned 44.2% in the past year compared with the industry’s rally of 1.6%.
End-Market Details
Integrated Device’s expanding product portfolio and strategic partnerships contributed to the third-quarter results.
The company announced its deal with Toshiba Memory Corporation in the reported quarter. Per the deal, IDT will be providing power management integrated circuits (PMIC) for Toshiba Memory’s solid-state drive (SSD) solutions.
To bolster its datacenter and communication infrastructure, the company also introduced a high-gain broadband RF amplifier. Notably, the new product offers lowest power consumption for 4G and 5G cellular applications.
Integrated Device also announced the availability of ZWIR4532 connectivity module, providing wireless connectivity to link devices to the Internet of Things (IoT). Further, the company also complemented its ZMOD family of integrated gas sensors with the launch of a new firmware. The product launches strengthened the company’s presence in the Auto & Industrial market.
Moreover, the company’s ZMOD4450 gas sensor platform enables manufacturers to add odor detection and mitigation capabilities in refrigerators. This boosted Integrated Device’s Consumer market.
Integrated Device Technology, Inc. Price, Consensus and EPS Surprise
Zacks Rank & Stocks to Consider
Integrated Device currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader computer and technology sector include Xilinx, Inc. (NASDAQ:XLNX) , Twitter, Inc. (NYSE:TWTR) and Cloudera, Inc. (NYSE:CLDR) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Expected long-term earnings growth rate for Xilinx, Twitter and Cloudera is 9.5%, 22.1% and 8%, respectively.
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