Integrated Device Technology Inc (NASDAQ: IDTI)
Integrated Device Technology is having an incredible day in the market today, and for good reason. Yesterday, after the closing bell, the company released its earnings report for the fiscal fourth quarter, proving that it had an incredibly three months. Today, we’ll talk about what we saw from the report, how investors reacted to the news, and what we can expect to see from IDTI moving forward. So, let’s get right to it…
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IDTI Reports Strong Q4 Results
As mentioned above, Integrated Device Technology is having a strong day in the market today after reporting results from the fourth fiscal quarter yesterday after the closing bell. Here’s what we saw from the report:
- Revenue – In the fourth quarter, IDTI did incredibly well with regards to revenue. In the quarter, analysts expected that the company would generate a total of $187.12 million in revenue. However, the company actually reported revenue in the amount of $189.4 million, beating expectations in a big way.
- Earnings – When it comes to earnings, IDTI definitely didn’t disappoint. During the quarter, analysts expected that the company would generate earnings in the amount of $0.33 per share. However, the company actually reported earnings in the amount of $0.36 per share, beating expectations by $0.03 per share.
As you can see from the information above, the earnings report offered by IDTI was overwhelmingly positive. In a statement, Greg Waters, Integrated Device Technology CEO, had the following to offer:
“We concluded fiscal year 2016 with fourth quarter revenue of $189.4 million, our 10th consecutive quarter of year-over-year revenue growth. This strength in the quarter was driven by sales of communications infrastructure products, automotive and industrial products, and wireless power products. The acquisition of ZMDI is already yielding tremendous benefits to IDT and we remain on track with integration, which should be completed by December of this year…”
How The Market Reacted To The News
As investors, we know that the news moves the market. Any time there is positive news surrounding a publicly-traded company, we can expect to see gains in the value of the stock associated with that company as a result. Adversely, negative news will yield declines. In this particular case, the news that was released by IDTI was overwhelmingly positive. So naturally, we’re seeing gains in the value of the company’s stock at the moment. Currently (10:32), the stock is trading at $20.90 per share after a gain of $1.20 per share or 6.12% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from IDTI. The reality is that through this earnings report, the company is showing a strong trend. Integrated Device Technology realized growth in revenue for 10 consecutive quarters, there’s a lot to be said about this milestone. All in all, IDTI has a strong list of products, a great management team, and a solid plan for continued growth. As a result, I’m expecting to see further gains on the stock.
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What Do You Think?
Where do you think IDTI is headed moving forward and why? Let us know your opinion in the comments below!
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