ARM, QCOM, and SWKS are all gapping lower today
Shares of semiconductor stocks Arm Holdings PLC (NASDAQ:ARM), Qualcomm Inc (NASDAQ:QCOM), and Skyworks Solutions Inc (NASDAQ:SWKS) are gapping lower after their respective earnings reports. Below, let's take a look at the results and the negative reactions.
Arm Misses on Revenue
ARM is down 3.8% to trade at $166.76 at last glance, after the company missed fiscal third-quarter revenue estimates and trimmed its full-year forecast. Nevertheless, nine analysts raised their price targets, including Rosenblatt Securities to $225 from $180. Shares still boast a 125% year-over-year lead, with support at their 20-day moving average poised to contain today's losses.
Drilling down to today's options activity, 45,000 calls and 36,000 puts have crossed the tape, which is five times the volume typically seen at this point. New positions are now being opened at the most popular contract, which is the weekly 2/7 170-strike call.
QCOM Brushes Off Bull Note
Qualcomm announced better-than-expected earnings and revenue for the fiscal first quarter, but unveiled a disappointing growth outlook for its patent licensing business. The stock was last seen down 5.1% to trade at $166.92, brushing off Deutsche Bank's price-target hike to $175 from $170. Today testing a floor at the $167 level, QCOM still added 20.5% in the last 12 months.
Overall options volume is today running at seven times the intraday average volume, with 32,000 calls and 25,000 puts exchanged. Most active is the weekly 2/7 170-strike call, where new positions are being opened.
SWKS Eyes Worst Day Ever
Underperforming its peers, SWKS is down a whopping 26.2% to trade at $64.26 at last glance, well on its way to its worst single-day percentage loss on record. While the firm beat profit estimates for the fiscal first quarter, its fiscal second-quarter forecast missed the mark. In the last 12 months, the stock shed more than 38%.
In response, Mizuho and Stifel downgraded the stock to "neutral" and "hold" from "buy" and "outperform," respectively, with Rosenblatt Securities mirroring the former. Shares also attracted at least eight price-target cuts, with both Susquehanna and J.P. Morgan Securities lowering their objectives to $70 from $100. Brokerages are already leaned bearish prior to today, with 20 of 25 in coverage sporting a "hold" or worse rating.