To The Moon

$QuickLogic(QUIK)$ is slated to release its Q2 2023 results on 14 Aug Post Market.

QuickLogic Q2 results are likely benefit from the increasing adoption of the company’s sensor processing solutions and embedded FPGA (eFPGA) Intellectual Property (IP) Licensing products.

QuickLogic’s eFPGA IP-based products, which include the rad-hard program for the U.S. government, continued shipments of smart connectivity, display products and SensiML AI software platform, are likely to have been a key driver in the upcoming quarter reporting.

In Q1 2023, QuickLogic’s New products revenues accounted for 74% of total quarterly revenues, while Mature products segment represented the remaining 26%. QUIK’s New products include revenues from eFPGA IP intellectual property, professional services, QuickAI and SensiML AI software as a service.

In this article, I will be sharing on the fundamental data and technical analysis on how QuickLogic upcoming earnings would likely look like.

QuickLogic (QUIK) Earnings Data

QuickLogic has a healthy pipeline of deals which should have a positive impact on their revenue. I would foresee that QuickLogic could have a positive EPS which could beat the forecast.

I expect QuickLogic to post a positive EPS of between 0.05 to 0.09.

QuickLogic (QUIK) Earnings History

Based on the EPS estimate beat over the last 2 quarters, I would expect this earnings to post a better than expected revenue and with a better EPS.

QuickLogic has a few partnerships and with the demand for eFPGA technology in demand, I foresee that QUIK’s New products would bring in revenues from eFPGA IP intellectual property, professional services, QuickAI and SensiML AI software as a service.

QuickLogic (QUIK) Year-To-Date Earnings

QuickLogic have given investors a more than 40% returns YTD, and with the demand of eFPGA growing.

The share of North America is likely to have gone further up in Q2 2023. QuickLogic has been witnessing increasing demand for wearable products in the business-to-business market, primarily driven by higher demand from hospitals and fitness focused companies, which need to track body activities and biometric information.

QuickLogic (QUIK) Financial Overview

I will be looking out for the total revenue and cash in the upcoming earnings results. We most likely would see an increase in revenue from the increasing demand for wearable products in the business-to-business market.

What is also important is the free cash flow that the company have at the end, this would come down to how expenses have been allocated to Research and Development to capture the growing wearable market.

QuickLogic (QUIK) Revenue and Expenses Breakdown

As mentioned in the financial overview, I would expect QuickLogic to post a better than forecast revenue as the demand for wearables from healthcare and fitness sectors would help to improve the earnings.

From the last reported earnings, we can see that their expenses in Research and Development is lower than General and Administrative.

As QuickLogic is a technology based company which I would expect much innovation. I hope to see that more allocation into Research and Development could be seen in the upcoming results.

Technical Analysis – Simple Moving Averages (SMA)

QuickLogic is in a bull trend but currently the price is trending below SMA50.

This normally indicate a trend change to bearish potential. A worse than expected revenue and higher expenses could move QuickLogic into bear trend.

I would be monitoring how QuickLogic would be trading on 14 Aug 2023 premarket.

Technical Analysis – Relative Strength Index (RSI)

RSI momentum look like it is moving towards oversold. This might be due to some increased Buying activities expected.

With the healthy pipeline and increasing demand of wearable products in the B2B market, which is drive by higher demand from healthcare and wellness sectors.

Investors might have the interests increased.

Technical Analysis – Average Directional Index (ADX)

Based on ADX, which is between 20 and 40 indicating a developing trend. But -DI is above +DI which suggest that QuickLogic is actually in a bearish downside trend.

A positive outlook and better than expected results might be able to make a trend change.

I will be monitoring the price and volume movement closely when QuickLogic trade today (14 Aug 23).

Technical Analysis – Parabolic SAR (SAR)

Similar to ADX, SAR indicate that QuickLogic is in a bearish downwards trend even though there have been some indication suggest a better-than-expected results in Q2 2023 which is driven by increasing adoption of the company’s sensor processing solutions and embedded FPGA (eFPGA) Intellectual Property (IP) Licensing products.

I would continue to monitor this stock as there have been conflicting signals from how the company is doing vs Technical Analysis.

Summary

Based on what I have observed, it seems like QuickLogic have some healthy pipeline of deals and increasing demand for their technology in the healthcare and wellness sector wearable.

These positive indicators should help QuickLogic improve their share price but if we look at it from the technical analysis, it seem to indicate that QuickLogic is still in a bear trend and a much better results could help to propel it into a bull trend.

This could also drive investors interest in the stock and hence more buying might be expected today (14 Aug 23) if investors do think that QuickLogic have captured reasonable demand in the eFPGA market.

I would be holding onto my trade plan as I would monitor how QuickLogic trade would be building up in premarket on 14 Aug 23.

Appreciate if you could share your thoughts in the comment section whether you think QuickLogic would be able to benefit from a healthy pipeline of deals and see a positive revenue growth.

@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.