GCT Semiconductor (NYSE:GCTS) Announces Quarterly Earnings Results

GCT Semiconductor (NYSE:GCTS) released its quarterly earnings results on Monday. The company reported ($0.25) earnings per share (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 analyst estimates 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

Shares of GCTS stock traded up $0.17 during trading hours on Wednesday, reaching $2.21. 1,495,330 shares of the stock were exchanged, compared to its average volume of 4,618,975. The business’s fifty day moving average is $2.44 and its two-hundred day moving average is $1.84. The firm has a market capitalization of $200.57 million, a P/E ratio of -2.76 and a beta of 1.81. GCT Semiconductor has a 12-month low of $0.95 and a 12-month high of $3.93.

Institutional Investors Weigh In On GCT Semiconductor

A number of large investors have recently modified their holdings of GCTS. State Street Corp increased its holdings in GCT Semiconductor by 8.9% in the fourth quarter. State Street Corp now owns 144,689 shares of the company’s stock valued at $174,000 after buying an additional 11,800 shares during the last quarter. Geode Capital Management LLC boosted its position 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 worth $498,000 after acquiring an additional 17,867 shares in the last quarter. Vanguard Group Inc. raised its position in shares of GCT Semiconductor by 3.3% during the 3rd quarter. Vanguard Group Inc. now owns 1,583,800 shares of the company’s stock worth $2,407,000 after acquiring an additional 50,799 shares in the last quarter. Jane Street Group LLC purchased a new stake in GCT Semiconductor during the second quarter worth approximately $246,000. Finally, Goldman Sachs Group Inc. boosted its holdings in GCT Semiconductor by 57.5% in the first quarter. Goldman Sachs Group Inc. now owns 69,917 shares of the company’s stock valued at $115,000 after purchasing an additional 25,535 shares in the last quarter. 28.06% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

GCTS has been the topic of several research analyst reports. Wall Street Zen upgraded GCT Semiconductor from a “sell” rating to a “hold” rating in a report on Sunday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of GCT Semiconductor in a research report on Monday, August 3rd. Two analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $3.50.

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.