HALISTER: Dialog Semi Drops as Fellow Apple Supplier Sees Market Weakness

Dialog Semi Drops as Fellow Apple Supplier Sees Market Weakness

(Bloomberg) -- Dialog Semiconductor declines as much as 4.4%, most on SX8P index, after InvenSense quarterly outlook misses ests., co. sees weakness in mobile market.
  • Pares decline to 2%, trading vol. 50% of 3-mo. daily avg
  • InvenSense adds to recent negative newsflow from Apple supply chain, Charles Bordes, analyst at AlphaValue (buy on Dialog) says by phone
    • “The same goes for the two” with both cos. being “very dependent” on Apple
    • In addition, investors may have fears that next iPhone will be “only a slight evolution” from existing one, adding uncertainty on any potential sales growth
    • Dialog’s share buyback announcement after market close yday “always positive,” yet size too small to have any significant impact on shares
  • Pacific Crest (sector weight on InvenSense) says in note that “things go from bad to worse” for InvenSense, even with muted expectations
    • Samsung share loss, high Apple channel inventories continue to hurt demand
RELATED:
  • Dialog Semi cut its 2016 rev. outlook last week, Kepler sees lower projections linked to coming iPhone 7 ramp-up
  • Dialog gets ~71% of its rev. from Apple, InvenSense ~30%, according to Bloomberg data
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
AAPL US (Apple Inc)
DLG GR (Dialog Semiconductor PLC)
INVN US (InvenSense Inc)

People
Charles Bordes (Alphavalue Sas)

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