Moody's Investors Service, ("Moody's") today affirmed Tapestry, Inc.'s ("Tapestry") Baa2 senior unsecured rating and changed the ratings outlook to negative from stable. "Although Tapestry has taken decisive measures to enhance its already excellent liquidity, the negative outlook reflects the risk of continued disruption from COVID-19 in the face of unprecedented temporary store and mall closures as well as the potential for ongoing weakness in consumer demand", stated Vice President, Christina Boni. "In addition to $1.2 billion of cash and short term investments at the end of 2019, the company drew $700 million under its $900 million revolving credit facility and has suspended its common dividend while having no near term maturities", Boni added.
Cohu (COHU) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Rating Action: Moody's affirms eight classes of CD 2016- CD1 Mortgage Trust. Global Credit Research- 26 May 2020. Approximately $577.6 million of structured securities affected.
Q1 2020 Cohu Inc Earnings Call
It looks like Cohu, Inc. (NASDAQ:COHU) is about to go ex-dividend in the next 4 days. You will need to purchase shares...
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Tapestry, Inc. New York, April 24, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Tapestry, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Ladies and gentlemen, thank you for standing by, and welcome to the Cohu, Inc.'s first-quarter 2020 financial results conference call. Good afternoon, and welcome to our conference call to discuss Cohu's first-quarter results and second-quarter 2020 outlook. If you need a copy of our earnings release, you may access it from our website, cohu.com, or by contacting Cohu Investor Relations.
Cohu, Inc. (NASDAQ: COHU), a global leader in back-end semiconductor equipment and services, will release financial results for first quarter 2020 on Tuesday, May 5, 2020 at 1:00 p.m. Pacific Time/4:00 p.m. Eastern Time.
B. Riley analyst Craig Ellis downgraded 10 chip stocks to neutral from buy on Thursday, writing that he "underestimated potential for a risk" from outbreak of COVID-19, the disease brought on by the novel coronavirus. Among the names he downgraded are: Axcelis Technologies Inc. , Airgain Inc. , Applied Materials Inc. , Alpha & Omega Semiconductor Inc. [a: aosl], Cohu Inc. , Ichor Holdings Ltd. , Intevac Inc. , Lam Research Corp. , Microchip Technology Inc. , and ON Semiconductor Corp. . Ellis said the ratings changes signal a move to "more defensive positioning" compared with a prior goal of "maximizing [year-to-date] upcycle exposure." He wrote that "[w]hile great fear has been priced in with a one-month -37% SOX decline, we can't rule out a move toward, or to, the Great Recession's -57% drop, a more severe outcome than our prior view."
Cohu, Inc. (NASDAQ: COHU), a global leader in back-end semiconductor equipment and services, today reported fiscal 2020 first quarter net sales of $138.9 million and GAAP loss of $17.3 million or $0.42 per share. Cohu also reported first quarter 2020 non-GAAP income of $0.1 million or $0.00 per share.(1)
5G is here. The new digital wireless technology first started to make waves in 2017, with connectivity tests in Argentina, Norway, and Poland. By late 2018, active 5G networks were starting to appear on a limited basis in various urban areas, and in 2019 the first nationwide networks went into operation in the US and China. As 2020 matures, industry analysts expect to see these networks expand, as providers move into the mid- and high-frequency bands.The new network rollout brings with it a slew of opportunities, as does any new technology. Original equipment manufacturers will need new components. The new networks will require a denser network of towers and transmitters, which in turn will require their own hardware. Semiconductor chip makers especially are looking forward to increased sales as the new equipment brings with it needs for updated and upgraded chips.But the chip makers, OEMs, and transmitter tower construction firms aren’t the only companies in line to gain from the 5G switchover. Semiconductor chips need to be quality controlled, and individual customers will need to update their modems and WiFi routers.We’ve delved into TipRanks’ database and found three companies that inhabit these niches – two that make chip testing gear and one that develops network communications equipment. All three are poised to gain as ancillaries to the big winners in 5G. Let's take a closer look.Cohu, Inc. (COHU)Cohu, first on our list today, designs and manufactures semiconductor testing equipment for major chip makers around the world. The chip makers have been showing gains in recent months, as they see improve demand at least in part attributable to 5G ramp-up, and COHU shares have been joining in the industry’s upbeat outlook. The company’s stock is up an impressive 80% in the past six months.The company showed a drastic improvement in its most recent earnings report, released earlier this month. The net loss shrank from $1.40 per share in Q3 to 42 cents in Q4. The improvement in earnings came even as net sales slipped by 16% to $142 million. Looking ahead, the Cohu expects to see 2020 start the year with first quarter earnings between $140 and $152 million, in line with the analyst forecast of $143.6 million.The narrowed losses helped the company support its dividend payment of 6 cents per share. At an annualized payout of 24 cents, this gives the dividend a modest 1.04% yield. Cohu has a twenty-year history of maintaining its dividend payment, even though the current payout ratio, in the negative, implies that it is not sustainable.5-star analyst Sidney Ho, of Deutsche Bank, writes of Cohu, “We believe the company is well positioned for a favorable set-up in CY20 and beyond as key end markets stabilize and Cohu benefits from secular growth trends such as 5G and data center growth. We believe there could be upside to 4Q19 and 1Q20 estimates as Cohu has started to see the initial 5G-enabled smartphone ramp in its test business and the auto market has shown signs of improvement.”Ho reiterates the Buy rating he initiated on this stock last month, and sets his price target at $27, suggesting an upside of 20%. (To watch Ho’s track record, click here)All in all, with 5 recent Buy ratings set, COHU gets a unanimous Strong Buy consensus view from Wall Street’s analysts. The stock is selling for$22.53, and the average price target of $29.20 indicates a 30% upside potential. (See Cohu stock analysis at TipRanks)Onto Innovation (ONTO)Our second stock, Onto, is another test equipment manufacturer. Specifically, Onto makes process and process control equipment for the semiconductor industry. Onto was formed this past October, as a result of the merger-of-equals between Rudolph Technologies and Nanometrics. Onto inherited Rudolph Technologies trading history, with the ticker ONTO.The merger created the fourth largest American company in the semiconductor capital supply field, with a market cap of nearly $2 billion. The company holds a leading position in the chip makers’ supply chain, and as they expand 5G chip production, Onto stands to gain with them.Onto’s Q4 earnings lived up to the hype of the merger, and of 5G. The company reported 41 cents EPS, beating out the 39-cent expectation by 5%. Revenues, at $120.6 million, beat the forecast by 3.2%, but gained an even more impressive 56% year-over-year. As with Cohu above, which inhabits a similar niche, Onto’s gains come as the chip industry begins to turn around after a difficult year.Mark Miller, 5-star analyst with Benchmark, is impressed with Onto’s quick increases in earnings and revenues – and he attributes it to the expansion of 5G. Miller writes, “A secular recovery is underway in Semicap equipment sales, and this recovery coupled with the ramp of 5G phones with greater memory chip content is expected to drive growth latter this year and into 2021.”Giving the stock a $50 price target, Miller suggests that it has room for a 31% upside. As such, Miller reiterated a Buy rating on ONTO shares. (To watch Miller’s track record, click here)Overall, this stock has 3 recent reviews, and all are Buys, making the analyst consensus another unanimous Strong Buy. The $49 average price target implies an upside of 28% from the $38 current trading price. (See Onto Innovation's price targets and analyst ratings on TipRanks)Casa Systems, Inc. (CASA)Last up is Casa, a small-cap player in the telecom equipment industry. This $366 million company is a provider of cable, modem, optical, and WiFi networking products, and offers solutions for both fixed and mobile service providers.Casa is at forefront of high-end 5G broadband access development, and is well positioned to expand its business – Casa has been working with Sprint on small cell systems since October of last year, and the T-Mobile-Sprint merger – which was cleared by a Federal judge earlier this month – promises to give Casa access to a much larger network. And that network will be in need of 5G modem solutions.The company next reports earnings on February 20, and may benefit from having lowered the bar back in November. At that time, when the company dropped its FY2019 estimate to the $255 to $270 million range (from $320 to $350 million), the stock fell 38%. It has not regained those losses – but by now, the lower guidance is baked in and the expected 2-cent loss for Q4 represents a 5-cent sequential improvement from Q3.Writing from Northland, 5-star analyst Tim Savageaux takes a bullish stance on CASA. He says of the stock’s general position, “The closing of the TMUS/S merger is one factor likely to accelerate 5G wireless builds in the US, joining an already aggressive push by VZ, which is in turn likely to drive stronger network investment among US Cable MSOs…”Looking at CASA specifically, Savageaux adds, “[We see] a strong finish to the year in Cable network spending, as well as the potential for accelerated 5G spending post the clearance of the TMUS/ S merger yesterday. CASA announced a win with S for its Pebble in Q419, and also highlighted its 5G fixed wireless CPE capability…”Savageaux upgraded his position on this stock, bumping it from Neutral to Buy, and giving CASA a $6 price target. His target implies an impressive upside here of 31%. (To watch Savageaux’s track record, click here)
Moody's rating action reflects a base expected loss of 6.3% of the current pooled balance, compared to 3.5% at Moody's last review. Three loans, constituting 22.0% of the pool, have investment-grade structured credit assessments.
5G is here. The new digital wireless technology first started to make waves in 2017, with connectivity tests in Argentina, Norway, and Poland. By late 2018, active 5G networks were starting to appear on a limited basis in various urban areas, and in 2019 the first nationwide networks went into operation in the US and China. As 2020 matures, industry analysts expect to see these networks expand, as providers move into the mid- and high-frequency bands.Looking ahead at the landscape 5G companies will have to navigate, Roth Capital's Scott Searle writes, “5G represents a multi-year product cycle that will drive multiple investable opportunities including incremental dollar content, the emergence and enablement of private networks and Industry 4.0, and incremental bandwidth/applications such as fixed wireless access…”The companies involved in the multiple aspects of the ongoing 5G rollout are going to attract plenty of attention in the coming months. But not all of them are going to bring investors the returns to justify the investment. We’ve opened up the TipRanks database to find two stocks positioned to gain in the 5G world, and also one that may be too risky to try.Viavi Solutions (VIAV)Our first stock is a provider of measurement and fiber test devices for network systems and providers. The company offers business intelligence consulting, custom analytics, installation and integration, field and lab testing, and operational assistance for its networking products. In addition to digital tech, Viavi also offers services in light management and optical coatings to banknote manufacturers.As 5G networks expand from their current phase, enter operation in new areas, and boost performance to the full potential of the technology, Viavi’s products will find increased demand. The company has been involved in 5G since the earliest days of the technology’s design, on the validation, verification, and visibility ends. While not directly involved in installation or hardware of the new networks, Viavi’s position in the 5G chain is essential.Viavi entered 2020 after a particularly strong year in calendar 2019. The company showed four consecutive quarters of rising earnings that consistently beat expectations. Calendar year Q4, which is usually VIAV’s strongest, saw the company post EPS of 19 cents, 18.8% above the forecast. The first quarter of 2020, however, was different. First off, the calendar year first quarter (the company’s fiscal Q3) is typically VIAV’s weakest. Second, the COVID-19 pandemic hit hard at revenues. The top line came in at $256.2 million, down 3.4% year-over-year, and well below VIAV’s previously published guidance numbers. The company’s Network and Service Enablement segment led the declines, while Optical Security and Performance Products showed stronger results. EPS for 1Q20 came in at 9 cents, 11% below the forecast – and also 11% below the year-ago quarter.That’s the bad news. The good news is that Viavi has a clear path forward, especially as economic restrictions are lifted in the second half of this year. Writing on the company from Northland Securities analyst Tim Savageaux maintains his Outperform rating on Viavi shares "given continued strength in 5G and 400G optical lab development at equipment OEMs and the overall positive impact of increased carrier network traffic." The analyst added, "…we believe network traffic and subscriber growth may provide offsets in addition to likely easing of lockdowns driving resumed network maintenance and subscriber deployments… We also believe the shares are likely to be supported by VIAV's strong cash flow generation."Savageaux's Outperform rating is backed by a $14 price target, which implies a healthy upside potential of 31% for the next 12 months. (To watch Savageaux’s track record, click here)Overall, it would appear that Wall Street agrees with Savageaux’s assessment of VIAV. The stock has 7 recent reviews, breaking down in a 6 to 1 split of Buy versus Hold. The average price target, $15.14, is actually more bullish than Savageaux’s, and suggests room for 42% upside growth from the current trading price of $10.68. (See Viavi stock analysis on TipRanks)Cohu, Inc. (COHU)The second stock on our list, Cohu, is a designer and manufacturer of test and inspection equipment in the semiconductor chip sector. COHU shares had been gaining in Q4 and Q1, as demand for semiconductor chips, fueled in part by the expansion of 5G networks. In the six months prior to the current bear cycle, COHU shares posted a gain of 86%. Since the bear cycle began, however, COHU shares have underperformed. The stock is still down 45% from its peak in early February. Cohu’s Q1 results, while rocky, were in-line with analyst expectations. The losses in the earnings report were attributed to slack demand due to the general economic situation – but that is seen as a temporary factor. As economies reopen, latent projects – including 5G network construction – will restart. Cohu’s products essential in the production of the new 5G chips, and are likely to see demand resume soon enough.Krish Sankar, 5-star analyst with Cowen, sees COHU shares as a buying opportunity. The analyst opined, “The 5G adoption (over 50% of mobility bookings) is benefiting the company and coupled with an eventual Auto recovery should drive a strong earnings profile in CY21.” The analyst added, "We like the stock - the upcoming 5G cycle (and eventual Auto recovery) should benefit COHU. Despite the uncertain environment, we do not see any liquidity risk."To this end, Sankar reiterated a Buy rating on Cohu shares, along with a $20 price target. That target implies a solid upside potential of 48%. (To watch Sankar’s track record, click here)COHU shares have a unanimous analyst consensus rating of Strong Buy, based on 5 recent Buy reviews. Shares are selling for a discounted $13.55, while the average price target of $19.60 indicates a robust one-year upside potential of 45%. (See Cohu stock analysis on TipRanks)Netscout Systems (NTCT)The third stock today, Netscout. The company provides solutions for application and network performance management, an important niche in today’s digital and/or cloud-based office world. The importance of Netscout’s products in the 5G ramp is manifest, but does not necessarily outweigh the current market headwinds.NTCT shares lost heavily in the bear cycle’s initial fall, but in volatile trading had regained most of the loss. That was derailed by a mixed fiscal Q4 earnings report.At the top line, results for the fiscal fourth quarter and FY20 were down from one year ago. Quarterly revenues came in at $229.4 million, down from last year’s $235 million. FY revenue slipped from fiscal 2019’s $909.9 million to $891.8 million. Netscout posted a net loss in fiscal 2020, of $2.8 million. From an investors’ perspective, the worst part of the earnings report was the forward guidance: the company withdrew it “given the rapidly evolving COVID-19 situation."Covering this stock for Piper Sandler, analyst James Fish maintained a Sell rating. Simply put, Fish does not see Netscout regaining pre-pandemic business quickly enough to make a solid recovery. He writes, “The company saw some deals occur later in the quarter than anticipated, with others pushed into April… As a reminder, NetScout had pulled forward revenue from FQ4 into FQ3 related to a Tier-1 NA carrier deal and was unable to 're-fill' the bucket… The company is seeing increased demand related to fixed line with carriers, but not on the mobile side.”Fish’s $21 price target predicts a downside to NTCT, of 9%. (To watch Fish’s track record, click here)Wall Street is evenly split on this stock. NTCT shares have received 1 Buy, 1 Hold, and 1 Sell rating in recent weeks, making the analyst consensus view a Hold. Shares are priced at $23.04, and the average price target of $25.33 suggests room for a 10% growth. (See Netscout stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Cohu, Inc. (NASDAQ: COHU), a global leader in back-end semiconductor equipment and services, today announced that management will participate at the following investor conferences being held virtually:
Cohu, Inc. (NASDAQ: COHU), a global leader in back-end semiconductor equipment and services, announced today that due to the COVID-19 pandemic and to support the health and safety of the company’s stockholders, employees, Board of Directors and surrounding communities, Cohu’s 2020 Annual Meeting of Stockholders will be held in a virtual-only format instead of as an in-person meeting. In light of this change, stockholders will not be able to attend the Annual Meeting in person.
Cohu (COHU) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Cohu, Inc. (NASDAQ: COHU), a global leader in back-end semiconductor equipment and services, today reported that the Company is withdrawing its fiscal first quarter 2020 financial guidance due to the heightened uncertainly relating to the potential impacts of COVID-19 on the Company’s business operations.
Q4 2019 Cohu Inc Earnings Call
Luis Müller became the CEO of Cohu, Inc. (NASDAQ:COHU) in 2014. This analysis aims first to contrast CEO compensation...