Navitas Semiconductor Corporation’s Upcoming Q2 Earnings Preview
Deutsche Bank analysts provided their outlook on Navitas Semiconductor Corporation (NASDAQ:NVTS) ahead of the company’s upcoming Q2 earnings release on Aug 15.
The analysts believe that weak China smartphone demand and Android inventory concerns to weigh on H2/22. Similar to most China smartphone market exposed semi companies this earnings season, the analysts expect Navitas to potentially miss in Q2 with even more weakness to appear in the Q3 guide driven by the weaker than expected smartphone demand globally but particularly acute in China & Europe coupled with high channel/OEM inventory in the Android smartphone segment.
While the near-term impact from these macro headwinds appears to be worse than the analysts hoped, they mentioned that the company’s recent share gain at Tier 1 Korean smartphone OEM and its continued gains for in-box charger IC should help offset some of the near-term headwinds and help the company drive sequential growth, albeit at a much slower relative rise than prior expectations.
| Symbol | Price | %chg |
|---|---|---|
| AMD.BA | 23900 | 0.13 |
| TXN.BA | 54075 | 0.23 |
| LRCX.BA | 3375 | 2.96 |
| 000660.KS | 353000 | 5.52 |
Navitas Semiconductor Corporation's Upcoming Earnings and Financial Health
- Navitas Semiconductor Corporation (NASDAQ:NVTS) is set to release its quarterly earnings with an anticipated EPS loss of $0.05 and projected revenue of approximately $14.4 million.
- The company's innovative GaN technology is showcased in Xiaomi's next-generation 90W GaN charger, highlighting Navitas' growth potential.
- Despite a negative P/E ratio of -14.08, Navitas maintains a strong liquidity position with a current ratio of approximately 5.61 and a low debt-to-equity ratio of about 0.02.
Navitas Semiconductor Corporation, listed on the NASDAQ as NVTS, is a company that specializes in developing gallium nitride (GaN) power ICs. These are used in various applications, including fast chargers for electronic devices. Navitas is known for its innovative GaN technology, which offers higher efficiency and smaller size compared to traditional silicon-based solutions. The company faces competition from other semiconductor firms that are also exploring GaN technology.
On Monday, August 4, 2025, NVTS is set to release its quarterly earnings. Wall Street anticipates an earnings per share (EPS) loss of $0.05, with projected revenue of approximately $14.4 million. Despite the expected loss, Navitas is making strides in the industry. The company recently announced that its GaNSense Control ICs will power Xiaomi's next-generation 90W GaN charger, which is the world's smallest 90W charger. This product showcases Navitas' advanced technology and potential for future growth.
Navitas' financial metrics reveal some challenges. The company has a negative price-to-earnings (P/E) ratio of -14.08, indicating negative earnings. However, the price-to-sales ratio of 18.98 suggests that investors are willing to pay nearly 19 times the company's sales over the past year. This reflects investor confidence in Navitas' growth potential, despite current earnings challenges.
The company's enterprise value to sales ratio is approximately 18.06, which shows how the market values Navitas relative to its sales. However, the enterprise value to operating cash flow ratio is around -25.47, indicating negative operating cash flow. This suggests that while the company is valued highly, it is not yet generating positive cash flow from its operations.
Navitas maintains a strong liquidity position, with a current ratio of approximately 5.61. This means the company has more than enough current assets to cover its current liabilities. Additionally, Navitas has a low debt-to-equity ratio of about 0.02, indicating low leverage. This financial stability could support the company's efforts to innovate and expand in the competitive semiconductor market.
Navitas Semiconductor Reports Q4 Results, Shares Up 6%
Navitas Semiconductor Corporation (NASDAQ:NVTS) shares surged more than 6% on Friday after the company reported its Q4 results, with EPS of ($0.04) coming in better than the Street estimate of ($0.07). Revenue was $12.35 million, compared to the Street estimate of $13.06 million.
The company issued a slightly lower Q1 guide on the back of continued weakness in China handsets. The company continues to expect its handset-related business to bottom in Q1/23 (a combination of seasonality and macro headwinds), with a mobile rebound expected to begin in Q2/23 and incrementally grow throughout the year. However, more importantly, the company revealed its end market splits and demonstrated how far the business has come in diversifying its growth vectors away from solely mobile/consumer (with a focus on appliance/industrial, solar/storage, and EV).
Navitas Semiconductor Shares Surge 26% on Better Than Expected Q2 Results
Navitas Semiconductor Corporation (NASDAQ:NVTS) shares surged nearly 26% on Tuesday following the company’s reported Q2 results, with EPS of ($0.07) coming in better than the Street estimate of ($0.09). Revenue was $8.6 million, beating the Street estimate of $8.5 million.
According to Deutsche Bank analysts, the strong quarter was a result of new designs win in the Home Appliance market allowing the company to offset the well-known weakness in the China handset market. Unfortunately, even this solid diversification wasn’t enough to allow the company’s core business to avoid the handset pain, as Q3 GaN revenues appear likely to drop around 20% quarter-over-quarter due to weak demand and inventory reductions.
Looking beyond the core GaN business, the company announced the acquisition of GeneSiC Semiconductor, a privately owned fabless provider of SiC discretes, a deal the analysts view favorably as it strategically expands the company’s business exposure, patent and product portfolio, and most importantly accelerates revenue growth in its expansion markets (Enterprise, Solar & EV) while financially adding significant scale and being immediately accretive.
