On Wednesday, QuickLogic (NASDAQ:QUIK) Corporation (NASDAQ: QUIK), a semiconductor company, received a positive assessment from Oppenheimer. The firm raised its price target for the stock to $16.00, up from the previous $12.00, while maintaining an Outperform rating. The adjustment follows QuickLogic's reported fourth-quarter revenue and earnings per share (EPS) which exceeded the consensus estimates.
In the fourth quarter of 2023, QuickLogic posted revenues of $7.5 million and EPS of $0.18, surpassing the consensus estimates of $7.4 million in revenue and $0.13 EPS. The company experienced significant year-over-year revenue growth of 83%, attributed mainly to the increased sales of eFPGA IP and professional services licenses. This growth was also reflected in the company's impressive 78% gross margins.
QuickLogic's guidance for the first quarter indicates a 50% year-over-year revenue growth, driven by a 67% growth in new product sales. This optimistic outlook is supported by the expansion of the company's sales funnel to $168 million and the network effects that are expected to lead to new deals.
A significant defense contract win in 2024 was highlighted by the company, with expectations for another deal to close within the current week. Oppenheimers' analyst expressed confidence in QuickLogic's growth trajectory and profitability outlook, citing the company's strong pipeline and potential for margin expansion as key factors.
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