8 Internet Stocks Brean Capital Is Watching Ahead Of Earnings

In a report published Tuesday, Brean Capital analyst Mike Burton previewed June quarter results for eight Internet stocks under his coverage.

Burton noted that mobile-exposed names have been under pressure due to China related concerns and low expectations for Samsung. On the other hand, Apple Inc. AAPL's suppliers are expected to perform well.

Elsewhere, Networking IC spend was "weak" in the second quarter but should pick up in the bottom half of the year. Finally 4K TVs aren't turning out to be the driver that some investors had hoped which has a negative implication for TVs and TV set-top sales.

Qualcomm (July 22): Low Expectations

According to Burton, expectations for QUALCOMM, Inc. QCOM are "low" given Samsung's poor demand and concerning smartphone sales in China.

Burton is expecting Qualcomm's results to be in-line with Street estimates, but the company's operating margins may dip by more than 700 basis points sequentially to bottom out below 10 percent. On the other side, an update to the company's cost savings in its QCT business could drive upside to the fiscal 2016 model.

PMC-Sierra (July 23): ‘Decent' Quarter Expected

According to Burton, PMC-Sierra Inc PMCS will report a "decent" quarter that is in-line with expectations, with potential upside coming from its Storage segment. The analyst also noted that Intel Corporation INTC's "sounded much better" about the demand for enterprise and data center which bodes well for the company. Finally, the company's SAS business' troubles were already communicated as the company already guiding down the business.

Skyworks (July 23): Benefited And Impacted By Samsung

According to Burton, Skyworks Solutions Inc SWKS is expected to report an in-line quarter as the company benefited from additional content from Samsung's GS6. At the same time, Skyworks was also negatively impacted by Samsung unit weakness.

In addition, Burton stated that MediaTek was "flattish" but saw a mix-up towards 4G. Also, performance in China was "in-line with Company expectations."

Silicon Motion (July 27): Gaining Market Share In SSD

According to Burton, Silicon Motion Technology Corp. (ADR) SIMO is expected to report an in-line quarter based on its already released preliminary announcement.

The analyst added that the company's client SSD adoption is increasing, resulting in market share gains that offset the negative effects of the weak PC market. In addition, the company's mobile market share is improving which could yield strong results from its Emmc/eMCP.

Qorvo (July 29): ‘Solid' Report And ‘Robust' Guide

Burton is expecting Qorvo Inc QRVO to report a better-than-expected gross margin and earnings per share driven by continued Apple strength, "relative strength" from Huawei, and MediaTek's ramping single-chip LTE platforms, where the company gained share versus the last generation.

Looking forward to the September quarter, Burton noted the company will guide its quarter higher by 16 percent sequentially due to continued content gains at Apple, continued strength from Huawei, a doubling of its exposure to MediaTek's 4G platform, and increasing content at Samsung.

Broadcom (July 30): Networking Business ‘Doing Well'

Burton stated that Broadcom Corporation BRCM's Networking business is "doing well" considering enterprise and data center strength. On the other hand, the company's telco is expected to be "weak" but in-line with the company's guidance.

Looking forward, the analyst noted that the strength of the company's portfolio will result in market share gains in a healthy end market (enterprise in data center).

Himax (August 7): Better-Than-Expected Forecast But ‘Cloudy' Outlook

According to Burton, Himax Technologies, Inc. (ADR) HIMX likely guided its quarter "conservatively" and the environment has actually improved relative to guidance which could result in a beat.

However, the analyst isn't expecting "huge upside" to the quarter and guidance due to weak 4K TV sales and a mix-shift towards AMOLED at Samsung, which impact's the company's large-panel DDI business as it does not yet supply AMOLED DDIs.

Ezchip (TBD): Focus On ZTE Revenue Trends

According to Burton, EZchip Semiconductor Ltd EZCH is likely to achieve its revenue guidance of a 4 percent rise due to a "rebound" in sales to ZTE.

Looking forward, the company will need to see another strong quarter from ZTE to "stay on track" to produce its expectations for flat year-over-year ZTE revenues.