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NXP (NXPI) Q3 View Up on End-Market Strength, Stock Rises

NXP (NXPI) Q3 View Up on End-Market Strength, Stock Rises

NXP Semiconductors N.V. NXPI recently provided an update on third-quarter 2020 guidance. The company is set to report third-quarter results on Oct 26.

It now anticipates third-quarter revenues of $2.27 billion, up from the prior guided range of $1.9-$2.1 billion, citing strength in end markets served, particularly automotive and mobile.

The current guidance indicates a 25% increase from the prior quarter. The Zacks Consensus Estimate for the same is currently pegged at $2.01 billion.

On a non-GAAP basis, the company expects gross profit to be $1.14 billion versus prior expectation of $980 million. Gross margin is expected to be 50.1% versus 49% provided earlier.

Moreover, management anticipates non-GAAP operating income to be $586 million versus $444 million in the prior quarter. Operating margin is expected to be 25.8% versus 22.2% provided earlier.

NXP Semiconductors N.V. Price and Consensus

NXP Semiconductors N.V. Price and Consensus

NXP Semiconductors N.V. price-consensus-chart | NXP Semiconductors N.V. Quote

Strength in End Markets: A Key Catalyst

NXP is optimistic about third-quarter earnings. The company believes that the business environment has improved more than expected due to the strength in end markets served.

It has witnessed a material improvement in demand across all end markets, particularly in Automotive and Mobile. Additionally, the company expects improved demand in both direct and distribution channels.

Therefore, it expects a broad-based increase in revenues and gross margin for the to-be-reported quarter.

NXP’s president and CEO, Kurt Sievers said, “Relative to the mid-point of our guidance, we experienced material improvement in demand across all end markets, but particularly in the Automotive and Mobile end markets.”

Notably, the company has been continuously making efforts to develop an improved 5nm design strategy with an aim of increasing software performance required in future cars.

The growing adoption of NXP’s offerings is expected to strengthen the company’s presence in the automotive market.

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Fintech’s role in financial inclusion rises but infrastructure, literacy challenges loom – Business

Fintech’s role in financial inclusion rises but infrastructure, literacy challenges loom – Business

Indonesian fintech companies are still facing basic infrastructure and literacy issues in their attempt to increase financial inclusion in the country.

Some two-thirds of surveyed fintech companies were already serving both the unbanked and underbanked population, including in rural areas, according to a recent survey by the Indonesia Fintech Association (Aftech), which has 362 members offering various financial services.

However, 75 percent of the fintech companies reported they were still facing low financial literacy among the target market, 57 percent reported facing basic infrastructure problems and 44 percent reported facing limited capital or resources challenges.

“So if we can work on this part, all of these three things, we can actually reach our target even faster,” Aftech board member Chrisma Albandjar said on Thursday during the Jakpost Fintech Fest webinar series organized by The Jakarta Post.

“If we are very focused on that part we will actually achieve the 90 percent financial inclusion,” she added, referring to the national target in 2024.

According to a 2019 survey by the Financial Services Authority (OJK), Indonesia’s financial inclusion rate stood at 76.1 percent, marking an increase of some 40 million unbanked adults from 2017, when the rate was nearly 50 percent.

To overcome the challenges, 45 percent of fintech companies told the Aftech survey they collaborated with traditional financial institutions such as banks and 23 percent took part in the government’s strategic partnership.

Chrisma was expecting the COVID-19 pandemic to accelerate the progress because it was leading to faster adoption of digital financial services as people had to stay at home or at least comply with social distancing rules.

The government also has interest in more and more people having a formal financial account so it can transfer its Rp 695 trillion (US$46.4 billion) coronavirus relief package efficiently, said Chaikal Nuryakin,

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Dow rises 161 points as economic-stimulus talks show progress

Dow rises 161 points as economic-stimulus talks show progress



a man standing in front of a computer: Xinhua/Wang Ying/ Getty Images


© Xinhua/Wang Ying/ Getty Images
Xinhua/Wang Ying/ Getty Images

  • US stocks moved higher Friday on continued hope that negotiations on fiscal stimulus will lead to a deal before the election.
  • House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued negotiations, trying to find middle ground on the size and scope of a new deal.
  • President Donald Trump this week reversed his stance on a stimulus deal and said he now favors a large deal.
  • “Covid Relief Negotiations are moving along,” Trump tweeted on Friday. “Go Big!”
  • Watch major indexes update live here.

US stocks moved higher on Friday as negotiations continued on another round of fiscal stimulus to combat the economic decline caused by the COVID-19 pandemic.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin had been trying to make a deal before the November election, but President Donald Trump said earlier this week that negotiations were over.

Fast-forward to Friday, and the talks are back on.

“Covid Relief Negotiations are moving along,” Trump tweeted on Friday. “Go Big!”

Here’s where US indexes stood at the 4 p.m. ET market close on Friday:

Read more: Fund manager Brandon Nelson is tripling his benchmark in 2020 with ‘less-discovered’ companies that become big winners. Here are 3 themes and 9 stocks he’s betting on.

Senate Majority Leader Mitch McConnell said on Friday morning that a stimulus deal before the election was unlikely. But shortly after McConnell spoke, the White House economic advisor Larry Kudlow said Trump had raised his offer to a $1.8 trillion deal from $1.6 trillion. House Democrats recently passed a $2.2 trillion bill.

“I would like to see a bigger stimulus package, frankly, than either the Democrats or the Republicans are offering,” Trump said in a radio interview with Rush Limbaugh on Friday.

Video: White House

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Dycom (DY) Rises 104% in 6 Months: Will the Rally Continue?

Dycom (DY) Rises 104% in 6 Months: Will the Rally Continue?

Dycom Industries Inc. DY has been riding high on strong prospects in the telecommunication business, continuous contract wins and solid backlog. Earnings estimates for fiscal 2021 and 2022 have moved 6.4% and 0.9% north in the past 30 days, depicting bullish analysts’ sentiments.

Shares of this specialty contracting firm have rallied 104.1% over the past six months, outperforming the Zacks Building Products – Heavy Construction industry’s 26.9% growth.

This Zacks Rank #1 (Strong Buy) stock has also outperformed the Zacks Construction sector and S&P 500 Index’s 47.7% and 22.9% rally, respectively, in the said time frame. You can see the complete list of today’s Zacks #1 Rank stocks here.

 

Factors Narrating Dycom’s Growth Story

Strong Prospects in Telecommunication Business: Accounting for 90.8% of contract revenues, Dycom’s Telecommunication business primarily benefits from increased demand for network bandwidth and mobile broadband, given the proliferation of smart phones. As telecommunication networks face increased demand, customers need to expand the capacity and improve the performance of existing networks and in certain instances, deploy new networks. Presently, a number of major industry participants are deploying significant wireline networks to offer bandwidth-enabling 1-gigabit speeds, thereby creating significant opportunities for Dycom.

In the last few quarters, the company’s top line benefited immensely from extensive deployment of 1-gigabit wireline networks by major customers. Dycom remains optimistic about the strengthening industry environment, given strong end-market drivers. Although the recent market trend is a concern, telecommunication networks that are a crucial infrastructure for the country will gain momentum as the effects of the pandemic phase out.

Solid Backlog: Dycom continues to register a stable 12-month backlog despite a challenging economic backdrop. This indicates persistent growth through the next calendar year. The company recorded backlog of $6.441 billion at the end of second-quarter fiscal 2021, almost in line sequentially. Of

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