GCT Semiconductor (NYSE:GCTS) Posts Earnings Results, Misses Expectations By $0.17 EPS

GCT Semiconductor (NYSE:GCTS) announced its quarterly earnings results on Monday. The company reported ($0.25) EPS for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.17), Zacks reports. The firm had revenue of $0.97 million for the quarter, compared to analysts’ expectations of $3.30 million.

Here are the key takeaways from GCT Semiconductor’s conference call:

• 5G chipset shipments exceeded 5,100 units in Q2, up approximately 71% sequentially, with shipments spanning four customers and multiple applications including FWA, aviation, mobile hotspots, and push-to-talk phones.
• GCT said its pipeline is broadening across terrestrial broadband, satellite and non-terrestrial connectivity, and industrial IoT and specialized networking; it also signed a new undisclosed UAV and defense-related customer after quarter-end.
• Customer deployment schedules shifted by one to two quarters, resulting in lower-than-expected Q2 revenue and continued near-term uncertainty despite management maintaining that long-term demand is intact.
• Revenue fell 18% year over year to $1.0 million, gross margin was negative, and net loss widened to $20.4 million, including a $12.3 million non-cash loss from changes in warrant liability fair value.
• Management expects quarterly cash burn of approximately $9 million to $9.5 million under current supply-chain conditions, although it ended the quarter with $30.2 million in cash and said wafer purchases can be adjusted if customer ramps are delayed.

GCT Semiconductor Price Performance

NYSE:GCTS opened at $2.46 on Tuesday. GCT Semiconductor has a one year low of $0.95 and a one year high of $3.93. The business has a fifty day moving average price of $2.47 and a 200-day moving average price of $1.84. The firm has a market capitalization of $223.77 million, a price-to-earnings ratio of -3.04 and a beta of 1.81.

Analyst Upgrades and Downgrades

GCTS has been the subject of a number of research analyst reports. Wall Street Zen raised shares of GCT Semiconductor from a “sell” rating to a “hold” rating in a research report on Sunday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of GCT Semiconductor in a report on Monday, August 3rd. Two equities research analysts have rated the stock with a Buy rating and two have issued a Sell rating to the stock. According to MarketBeat, GCT Semiconductor currently has an average rating of “Hold” and a consensus price target of $3.50.

Institutional Trading of GCT Semiconductor

Several hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. increased its position in GCT Semiconductor by 3.3% in the third quarter. Vanguard Group Inc. now owns 1,583,800 shares of the company’s stock worth $2,407,000 after buying an additional 50,799 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of GCT Semiconductor by 4.5% during the 4th quarter. Geode Capital Management LLC now owns 414,944 shares of the company’s stock valued at $498,000 after acquiring an additional 17,867 shares during the period. Jane Street Group LLC bought a new position in shares of GCT Semiconductor during the 2nd quarter valued at approximately $246,000. State Street Corp increased its holdings in GCT Semiconductor by 8.9% in the 4th quarter. State Street Corp now owns 144,689 shares of the company’s stock worth $174,000 after acquiring an additional 11,800 shares in the last quarter. Finally, Bridgeway Capital Management LLC increased its holdings in GCT Semiconductor by 50.0% in the 4th quarter. Bridgeway Capital Management LLC now owns 75,000 shares of the company’s stock worth $90,000 after acquiring an additional 25,000 shares in the last quarter. Institutional investors own 28.06% of the company’s stock.

About GCT Semiconductor

GCT Semiconductor Holding, Inc, operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It also develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, hotspots, CPEs, USB dongles, routers, and M2M applications.