QuickLogic stock has plummeted 48% YTD due to scheduling delays and low revenue realization

From Nasdaq: 2024-09-10 11:15:00

QuickLogic (QUIK) shares have plummeted 48.4% YTD, contrasting with the industry’s 9% growth. Comparatively, QUIK has also underperformed the Zacks Computer and Technology sector and S&P 500 index, which returned 13.6% and 14.4%, respectively, YTD.

The scheduled delays have resulted in QuickLogic lowering its full-year revenue outlook, impacting near-term revenue. IP contracts in the deliverable phase are leading to lower revenue realization, with future contributions expected from various divisions in the coming years.

The Rad-Hard FPGA market faces stiff competition from major players like AMD, Microchip, and Intel, affecting QuickLogic’s position. AMD’s Xilinx and Microchip’s RTG4 series compete with QUIK’s products, while Intel’s Agilex series poses a challenge with its advanced technology.

Given QuickLogic’s challenges with scheduling delays and low revenue realization, alongside a stretched valuation with a Value Score of F, investors are advised to avoid investing in this Zacks Rank #4 (Sell) stock at this time.



Read more at Nasdaq: QuickLogic Plunges 48% YTD: How Should Investors Play the Stock?