Recent IPO Aquantia Jumps On Quarterly Results, Bullish Reports

Recent IPO Aquantia (AQ), which makes high-speed communications chips for ethernet connectivity, saw its shares leap on Tuesday after getting a number of positive reports from Wall Street analysts following its first quarterly report as a public company.




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Aquantia shares soared by 14.1% for a new closing high of 13.46 on the stock market today. Aquantia went public at $9 a share on Nov. 3.

The San Jose, Calif.-based chipmaker late Monday reported an adjusted loss of 19 cents a share in the third quarter, compared with a profit of a penny a share in the year-earlier period. Sales rose 19% to $26.7 million.

Data center business accounted for 56% of total revenue, with enterprise infrastructure making up 40% of sales. The remainder of Aquantia’s business came from access and automotive markets.

“In the third quarter, we delivered record quarterly revenue,” Aquantia Chief Executive Faraj Aalaei said in a news release. He credited Aquantia’s leadership in integrated circuits for multi-gigabit ethernet connectivity in multiple markets.


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For the fourth quarter, Aquantia expects revenue in the range of $26.5 million to $28.0 million and gross profit margin to be in the range of 56% to 58%. Its gross margin in the September quarter was 56.5%.

At least five Wall Street analysts initiated coverage of Aquantia on Tuesday with buy ratings: Barclays, Deutsche Bank, Morgan Stanley, Needham and Raymond James.

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View more information: https://www.investors.com/news/technology/recent-ipo-aquantia-jumps-on-quarterly-results-bullish-reports/

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