How many different ways can you say "surging wireless handset volume?"
Last week, both Nokia
For the third quarter, the company grew revenues 13% to $2.5 billion, beating the high end of the guidance it gave last month. Of that, semiconductor sales grew 16% to $2.1 billion, driven by a 30% increase from the wireless market sales. Meanwhile, net income more than doubled to $447 million or $0.25 per share, including a $0.13-per-share gain from the sale of Micron
The greater volume also lent itself to efficiency. Gross margins improved to 40.7% from 37.1% in last year's quarter, reflecting greater capacity utilization rates.
And it doesn't stop with the third quarter. Semiconductor orders are up 29% to $2.3 billion, bringing the book-to-bill ratio to a healthy 1.08. As a result, TI expects fourth-quarter sales between $2.49 billion and $2.7 billion along with increased earnings to $0.14 and $0.19 per share, besting previous analyst estimates of $2.48 billion and EPS of $0.11.
Reflecting TI's guidance, its shares are up 7% to $27.50 in midday trading.
It's apparent that strength in the wireless markets are helping to drive growth among chip makers. But the real question is: Is this sustainable?
Jeff Hwang owns share of Cree. He can be reached at JHwang@fool.com.