Looks Like a Sizzling Quarter for Chipmakers
Motorola leads off by topping earnings estimate.
Across the board, semiconductor companies should post strong first-quarter earnings. Overall demand in the industry is about the strongest in recent history. Unlike most other chip cycles, which have been largely driven by growth in the personal-computer industry, the current upswing is broadly based, benefiting from strong growth in areas such as the wireless-telecommunication and data-networking-equipment industries.
Motorola (MOT), the first blue-chip semiconductor company to report, posted first-quarter earnings of 59 cents a share late Monday, one cent more than analysts' consensus estimate. Although primarily known as a cell-phone manufacturer, in the quarter just ended, Motorola generated approximately $1.9 billion in sales, or about 20% of its total revenues, from its semiconductor unit. The chip division's first-quarter growth was impressive at 24%.
Jeremy Lopez does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.