From Briefing.com: 4:47 pm Linear Tech misses by $0.01, reports revs in-line (LLTC) : Reports Q1 (Sep) earnings of $0.53 per share, $0.01 worse than the Capital IQ Consensus of $0.54; revenues rose 9.4% year/year to $373.9 mln vs the $377.22 mln Capital IQ Consensus.
Outlook:
"Looking forward, the December quarter is typically a seasonally weaker quarter due to a slower European market and in particular a weaker Industrial market that historically often results in a sequential quarterly revenue decline. Given a slightly positive first quarter book-to-bill ratio and based upon our current bookings rate, we are anticipating relatively flat sequential revenue in our fiscal second quarter representing growth in the 7% to 8.5% range on a year-over-year basis."
Current estimates call for Q2 revs of $365.64 mln, -3.1% Q/Q
As a result of the pending transaction with Analog Devices (ADI), the Company will not hold a quarterly earnings conference call.
4:21 pm Yahoo! beats by $0.06, reports revs in-line; guides Q4 revs below consensus (YHOO) :
Reports Q3 (Sep) earnings of $0.20 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $0.14; revenues fell 14.6% year/year to $857 mln vs the $860.82 mln Capital IQ Consensus.Q3 Maven (Mobile, Video, Native and Social)
Revenue +24% y/y; Q2 +26% y/y
Q3 Mobile revenue represented 32% y/y of traffic-driven revenue; Q2 +46% y/y
Q1 Search Revenue:
Gross search revenue -14% y/y; Q2 -13% y/y
Number of Paid Clicks -22% y/y; Q2 -22% y/y
Price-per-Click +9% y/y; Q1 +8% y/y Q1
Display Revenue:
GAAP display revenue -7% y/y; Q2 -7% y/y
Number of Ads Sold -5% y/y; Q2 +9% y/y
Price-per-Ad +1% y/y; Q2 -15% y/yCo issues downside guidance for Q4, sees Q4 revs of $880-920 vs. $939.30 mln Capital IQ Consensus Estimate; ; Adjusted EBITDA in the range of $260-300 mln.Tightens FY16 revenue guidance to $3.440-3.480 bln ex tac (Prior$3.4-3.6 bln); Raises adjusted EBITDA to $810-850 mln (Prior adj. EBITDA $700-800 mln).
4:12 pm Intel beats Q3 estimates after raising revenue, gross margin guidance on Sept 16; guides Q4 revs in-line, gross margin lower Q/Q at midpoint (INTC) :
Reports Q3 (Sep) earnings of $0.80 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.72; revenues rose 9.1% year/year to $15.78 bln vs the $15.61 bln Capital IQ Consensus; adj. gross margin 64.8%. GAAP EPS $0.69 vs. $0.67 consensus.
On September 16, co raised Q3 rev guidance to $15.3-15.9 bln from $14.4-15.4 bln; raised non-GAAP gross margin to 63% from 62%.
Q3 results by segment:
Client Computing Group revenue of $8.9 bln, up 21 percent sequentially and up 5 percent yearover-year
Data Center Group revenue of $4.5 bln, up 13 percent sequentially and up 10 percent yearover-year
Internet of Things Group revenue of $689 mln, up 20 percent sequentially and up 19% Y/Y
Non-Volatile Memory Solutions Group revenue of $649 mln, up 17 percent sequentially and down 1% Y/Y
Intel Security Group revenue of $537 mln, flat sequentially and up 6% Y/Y
Programmable Solutions Group revenue of $425 mln, down 9 percent sequentially
Co issues in-line guidance for Q4, sees Q4 revs of $15.2-16.2 bln vs. $15.88 bln Capital IQ Consensus; gross margin 63% +/- a couple percent. This revenue forecast is lower than the average seasonal increase for the fourth quarter.
4:09 pm Cree misses by $0.01, reports revs in-line; guides Q2 EPS below consensus, revs below consensus (numbers excluding sale of WolfSpeed) (CREE) :
Reports Q1 (Sep) earnings of $0.09 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.10; revenues fell 15.8% year/year to $321.3 mln vs the $322.77 mln Capital IQ Consensus. Co issues downside guidance for Q2, sees EPS of $0.04-0.10 vs. $0.13 Capital IQ Consensus Estimate; sees Q2 revs of $310-330 mln vs. $336.73 mln Capital IQ Consensus Estimate. Gross margin from continuing operations increased from 26.4% in Q4 of fiscal 2016 to 26.9% on a GAAP basis and decreased from 28.2% to 27.7% on a non-GAAP basis.Wolfspeed Sale Update: As previously announced, Cree reached an agreement to sell the Wolfspeed business to Infineon Technologies (IFNNY). The parties are continuing to work together to obtain the customarily required regulatory approvals in various jurisdictions, including foreign and domestic antitrust approvals, as well as CFIUS approval. The parties received a second request for additional information from the United States Federal Trade Commission in late September. Cree and Infineon continue to target closing the transaction around the end of calendar 2016.
4:15 pm : The stock market ended the Tuesday affair on a higher note as positive quarterly results from Netflix (NFLX 118.79, +18.99) and a few other bellwethers stoked risk appetite in the broader market. The tech-heavy Nasdaq (+0.9%) finished ahead of both the S&P 500 (+0.6%) and the Dow Jones Industrial Average (+0.4%).
The third-quarter earnings reporting season picked up in earnest this morning as participants pored over reports from the likes of Netflix (NFLX 118.79, +18.99), UnitedHealth (UNH 143.39, +9.26), Goldman Sachs (GS 172.63, +3.63), IBM (IBM 150.72, -4.05) and Johnson & Johnson (JNJ 115.41, -3.08). All five names topped bottom-line estimates for the quarter, but the results were met with mixed reactions.
A positive bias in global markets and some mixed inflation data also contributed to today's upbeat demeanor.
European markets outperformed on the heels of an above-consensus inflation reading out of the UK. The UK's September Consumer Price Index (CPI) increased to a two-year high of 1.0% year-over-year (expected: +0.9%). However, CPI data from the US came in slightly mixed relative to consensus estimates. Total CPI rose 0.3% in September (Briefing.com consensus +0.3%) while core CPI, which excludes food and energy, rose by 0.1% (Briefing.com consensus +0.2%).
The latest domestic inflation data led to some minute adjustments to U.S. rate hike expectations, but they were largely walked back by the end of the day. The response was fairly muted as participants assessed progress towards the Fed's long-run inflation target of 2.0%. Total CPI and core CPI are up a respective 1.5% and 2.2% year-over-year.
The Tuesday advance lost some steam in the final hour as the S&P 500 (+0.6%) narrowed its gain into the close.
All eleven S&P 500 sectors finished in the green with health care (+1.1%), materials (+0.9%), utilities (+0.8%), financials (+0.8%), and technology (+0.7%) leading the pack.
The health care space (+1.1%) paced the advance as managed health names drafted higher alongside Dow component UnitedHealth (UNH 143.39, +9.26). The stock finished atop the price-weighted average after beating analysts' estimates for the quarter and issuing above consensus full-year guidance. Conversely, Johnson & Johnson (JNJ 115.41, -3.08) declined by 2.6% despite beating bottom-line estimates for the quarter.
Biotechnology names finished slightly ahead of the broader health care sector as the iShares Nasdaq Biotechnology ETF (IBB 269.43, +3.71) gained 1.4%, The ETF narrowed its October loss to 6.9%.
In the consumer discretionary space (+0.6%), Netflix (NFLX 118.79, +18.99) spiked 19.0% after handily beating earnings and net subscriber growth estimates.
Fellow F.A.N.G. members gained following the upbeat report as Facebook (FB 128.57, +1.03), Amazon (AMZN 817.65, +4.70), and Alphabet (GOOG 795.26, +15.30) advanced between 0.6% and 2.0%.
The influential technology sector (+0.7%) finished slightly ahead of the broader market as chipmakers outperformed. Intel (INTC 37.75, +0.46) gained 1.2% ahead of this evening's quarterly earnings report. On the flipside, IBM (IBM 150.72, -4.05) lost 2.6% despite beating estimates.
Treasuries finished on a higher note as yields pulled back across the curve. The yield on the 2-yr note declined one basis point to 0.81% while the yield on the benchmark 10-yr note settled lower by two basis points (1.74%).
Today's trading volume fell below the average of 858 million as 742 million shares changed hands at the NYSE floor.
Today's economic data included the CPI Report for September and the NAHB Housing Market Index for October:
The all items index was up 0.3% in September, which was in-line with expectations, while the all items index, excluding food and energy, was up 0.1% (Briefing.com consensus +0.2%).
The NAHB Housing Market Index for October came in at 63 (Briefing.com consensus 59.0) from an unrevised 65 in September.
Tomorrow's economic data will include the 7:00 ET release of the the weekly MBA Mortgage Index. Separably, Housing Starts (Briefing.com consensus 1168k) and Building Permits (Briefing.com consensus 1164k) for September will each cross the wires at 8:30 ET. The day's data will be capped off with the release of the Fed's Beige Book for October at 14:00 ET.
Russell 2000: +7.2% YTD
Nasdaq Composite: +4.7% YTD
S&P 500: +4.7% YTD
Dow Jones: +4.2% YTD
DJ30 +75.54 NASDAQ +44.01 SP500 +13.10 NASDAQ Adv/Vol/Dec 1812/1.331 bln/1000 NYSE Adv/Vol/Dec 2284/722.9 mln/707 3:30 pm :
Commodities, as measured by the Bloomberg Commodity Index, were +0.2% around the 86.55 level
Crude oil reclaimed the $50.00/barrel level, closed near multi-month highs, snapped its 2-session loss streak ahead of tonight's API data
November crude oil futures rose $0.32 (+0.6%) to $50.29/barrel
The next OPEC meeting will take place in Vienna, Austria on November 30.
Baker Hughes rig count data will be released this Friday at 1 pm ET.
Weekly EIA petroleum inventory data will be released tomorrow at 10:30 am ET.
Chinese import/export data will be released this Friday.
Natural gas snapped its 2-session loss streak, closed near session highs ahead of Thursday's inventory number
November natural gas closed $0.02 higher (+0.6%) at $3.26/MMBtu
Weekly EIA natural gas data will be released Thursday at 10:30 am ET
In precious metals, gold & silver ended modestly higher after 2 previous sessions of nearly directionless trading
December gold ended today's session up $0.80 (+0.1%) to $1256.50/oz
December silver closed today's session $0.01 higher (+0.1%) at $17.47/oz
The broader market closed Tuesday higher, yet lost steam into the bell. Trading in the Nasdaq Composite led the three major US indices with gains of 44.01 points (+0.85%) to 5243.84. The S&P 500 was next, higher by 13.10 points (+0.62%) to 2139.60, and the Dow Jones Industrial Average shaved about 64 points off the highs of the day when the session ended, albeit still closing out the day higher by 75.54 points (+0.42%) to 18161.94.
The stock market ended the Tuesday affair on a higher note as positive quarterly results from Netflix (NFLX 118.79, +18.99 +19.03%) and a few other bellwethers stoked risk appetite in the broader market.
A positive bias in global markets and some mixed inflation data also contributed to today's upbeat demeanor.
European markets outperformed on the heels of an above-consensus inflation reading out of the UK. The UK's September Consumer Price Index (CPI) increased to a two-year high of 1.0% year-over-year. However, CPI data from the US came in slightly mixed relative to consensus estimates. Total CPI rose 0.3% in September while core CPI, which excludes food and energy, rose by 0.1%.
The latest domestic inflation data led to some minute adjustments to U.S. rate hike expectations, but they were largely walked back by the end of the day. The response was fairly muted as participants assessed progress towards the Fed's long-run inflation target of 2.0%. Total CPI and core CPI are up a respective 1.5% and 2.2% year-over-year.
Market data today included the all items index which was up 0.3% in September, while the all items index, excluding food and energy was up 0.1%. Also, the NAHB Housing Market Index for October came in at 63 from an unrevised 65 in September.
All 12 S&P sectors were in the green today with Technology (XLK 47.53, +0.26 +0.55%) about middle of the pack as the index ultimately finished higher but limped into the close on modest volume. Component IBM (IBM 150.72, -4.05 -2.62%) was the worst performer today following last night's quarterly results. Other S&P sectors finished Tuesday XLV +1.20% XLB +0.91% XLU +0.85% XLF +0.83% XLFS +0.82% IYZ +0.73% XLY +0.64% XLRE +0.51% XLE +0.40% XLP +0.31% XLI +0.21% with Healthcare and Materials leading the positive bias.
In the S&P 500 Information Technology (799.08, +5.18 +0.65%) sector, trading finished firmly in the green yet lost steam into the bell. Component Intel (INTC 37.75, +0.46 +1.23%) was modestly higher today ahead of earnings as the shares were upgraded in the pre-market session to an Overweight rating from an Equal Weight at Barclays. Also worth noting today, shares of GOOG (801.61) and GOOGL (828.81) both made fresh all-time highs, but ended modestly down off those highs though as the broader sector tailed off into the bell. Other names in the space which out-performed today included TSS +2.77%, CTXS +2.59%, MU +2.47%, ADS +2.24%, EA +2.05%, GOOG +1.96%, AVGO +1.95%, JNPR +1.87%, ADSK +1.86%, GOOGL +1.82%, QRVO +1.79%.
Other notable news items among sector components:
Visa (V 81.58, -0.57 -0.69%) announced that Charlie Scharf is resigning as CEO effective December 1, 2016, and the board of directors has unanimously voted to appoint Alfred Kelly, Jr. as his successor. Mr. Kelly, a current Visa board member, is the president and CEO of Intersection Co. and the former president of American Express (AXP 60.08, +0.18 +0.30%).
Qualcomm (QCOM 66.10, +0.91 +1.40%) announced that its subsidiary, Qualcomm Technologies, Inc., has worked closely with Telstra (TLSYY 19.30, +0.12 +0.63%), Ericsson (ERIC 5.47, +0.04 +0.74%) and
NETGEAR (NTGR 52.70, +0.35 +0.67%) on the world's first Gigabit Class LTE mobile device, and the first Gigabit Class LTE commercially ready network.
Qualcomm (QCOM) announced that its subsidiary, Qualcomm Technologies, Inc., introduced three new Qualcomm Snapdragon processors.
QuickBooks Online will be one of the first small business platforms enabling merchants to get paid quickly and easily on outstanding invoices via newly launched Apple (AAPL 117.47, -0.08 -0.07%) Pay on the web, Intuit (INTU 107.15, +0.27 +0.25%) announced.
CBS (CBS 55.10, -0.29 -0.52%) has ordered CANDY CRUSH, a new one-hour, live action game show series based on the globally renowned mobile game franchise. CBS, Lionsgate (LGF 18.72, +0.14 +0.75%) and Activision Blizzard's (ATVI 44.17, +0.64 +1.47%) King will join together on the new format created and executive produced by Matt Kunitz that will be distributed domestically by CBS Television Distribution and internationally by LGF.
Broadcom (AVGO 172.17, +3.29 +1.95%) announced a new 4x4 802.11ac Wave2 solution which enables significantly better range performance in addition to video over Wi-Fi acceleration capability.
Texas Instruments (TXN 69.25, +0.83 +1.21%) introduced the dual-port quad deserializer hub that is compliant with the MIPI Camera Serial Interface 2 (CSI-2) specification.
Microsoft (MSFT 57.66, +0.44 +0.77%) announced an expanded partnership with SAP (SAP 87.66, +1.31 +1.52%) to provide public cloud services for the SAP SuccessFactors HCM Suite. SAP will make its cloud-based human capital management solutions available on Microsoft Azure over the next five years.
IBM Watson Health (IBM 150.72, -4.05 -2.62%) and Quest Diagnostics (DGX 83.70, +0.66 +0.79%) announced the launch of IBM Watson Genomics from Quest Diagnostics, a service that helps advance precision medicine by combining cognitive computing with genomic tumor sequencing.
Elsewhere in the tech space:
According to Bloomberg, Verizon (VZ 50.27, -0.16 -0.32%) is getting anxious about Yahoo! (YHOO 41.68, -0.11 -0.26%) data breach as it relates to the acquisition.
Sprint (S 6.86, -0.06 -0.87%) sees Q2 operating revenues of $8.25 billion, worse than market expectations. Sees a net loss of $142 million in the quarter compared to a net loss of $585 million a year ago. Sees adjusted EBITDA of $2.35 billion compared to $2.01 billion last year. Expects total platform net additions of 740,000 on postpaid net adds of 344,000 and prepaid net losses of 427,000 with wholesale and affiliate net adds of 823,000. Lastly, S sees platform postpaid churn of 1.52%, up two basis points versus last year on postpaid phone churn of 1.37%.
Vivint Solar (VSLR 3.15, flat) named Chance Allred as chief sales officer, Paul Dickson as chief revenue officer and Bryan Christiansen as chief operations officer.
MakeMyTrip (MMYT 29.45, +9.05 +44.36%) and Naspers' (NPSNY 16.38, +0.26 +1.62%) ibibo Group agreed to combine their Indian travel businesses. Upon closing of the transaction, MMYT will own 100% of ibibo Group. Naspers and Tencent (TCEHY 27.32, +0.36 +1.34%) will become the single largest shareholder in MMYT, owning a 40% stake, and will contribute proportionate working capital upon closing.
Shenandoah Telecom (SHEN 26.55, +0.95 +3.71%) increased its annual dividend to $0.25 per share from $0.24 per share.
In reaction to quarterly results:
IBM (IBM) reported better than expected Q3 EPS of $3.29 on better than expected revenues of $19.23 billion. Further, management reaffirmed their outlook for FY16 EPS of 'at least $13.50.'
Netflix (NFLX) reported better than expected Q3 EPS of $0.12 on revenues which rose 31.7% compared to last year to $2.29 billion. Also in Q3, NFLX reported better than expected domestic net adds of 0.370 million and international net adds of 3.20 million. For Q4, NFLX sees domestic net adds of 1.45 million on international net adds of 3.75 million. Lastly, for Q4, NFLX sees better than expected EPS of $0.13.
Companies scheduled to report tonight/tomorrow morning: ADNT, CREE, INTC, LLTC, MANH, YHOO/APH, ASML, STX
Analyst actions:
INTC was upgraded to Overweight from Equal Weight at Barclays;
YHOO was downgraded to Hold from Buy at Needham,
CY was downgraded to Equal Weight from Overweight at Barclays;
CRTO was initiated with a Buy at Berenberg,
APTI was initiated at Goldman, Jefferies, Barclays, RBC Capital Mkts, JP Morgan, BofA/Merrill, and Pacific Crest,
GSUM was initiated at Goldman and Stifel,
LVLT was initiated with an Overweight at Barclays,
PSTG was initiated with a Neutral at JP Morgan,
NTNX was initiated with a Mkt Outperform at JMP Securities,
SYNC was initiated with a Buy at Ladenburg Thalmann,
CRM was initiated with a Buy at Rosenblatt
