From Briefing.com: 4:35 pm Apple beats by $0.01, reports revs in-line; guides Q1 revs above consensus, gross margin below (AAPL) :
Reports Q4 (Sep) earnings of $1.67 per share, $0.01 better than the Capital IQ Consensus of $1.66; revenues fell 9.0% year/year to $46.85 bln vs the $46.98 bln Capital IQ Consensus. Apple reports Q4 gross margins 38.0% vs 38% ests vs 39.9% last year.
iPhone shipments 45.5 mln vs 45.2 million ests and 48.05 million last year.
iPads 9.3 mln vs 9.3 million ests versus 9.9 million in Q4 of last year.
Macs 4.9 mln vs 5.2 million ests versus 5.7 million in Q4 of last year.
Co issues upside guidance for Q1, sees Q1 revs of $76-78 bln vs. $75.33 bln Capital IQ Consensus; gross margins of 38.0-38.5% vs 39% ests vs 40.1% last year; op-ex $6.9-7.0 bln;
"We are pleased to have generated $16.1 billion in operating cash flow, a new record for the September quarter."
Rev by geography: Americas -7%; Europe +3%, Greater China -30%; Japan +10%, Asia Pac. -1%.
4:24 pm Juniper Networks beats by $0.06, beats on revs; guides Q4 EPS in-line, revs in-line (JNPR) :
Reports Q3 (Sep) earnings of $0.58 per share, $0.06 better than the Capital IQ Consensus of $0.52; revenues rose 2.9% year/year to $1.29 bln vs the $1.25 bln Capital IQ Consensus. Q3 Non-GAAP operating margin for the third quarter of 2016 was 24.4%, a decrease from 25.5% in the third quarter of
2015, and an increase from 22.5% in the second quarter of 2016.
Co issues in-line guidance for Q4, sees EPS of $0.59-0.65 vs. $0.60 Capital IQ Consensus Estimate; sees Q4 revs of $1.32-1.38 bln vs. $1.32 bln Capital IQ Consensus Estimate. Non-GAAP operating margin will be ~25% at the midpoint of revenue guidance.
While the Company continues to see pricing pressure and product mix fluctuations, it remains focused on cost improvements.
4:04 pm iRobot beats by $0.27, beats on revs; guides Q4 EPS below consensus, revs in-line (IRBT) :
Reports Q3 (Sep) GAAP earnings of $0.70 per share, $0.27 better than the Capital IQ Consensus of $0.43; revenues rose 17.4% year/year to $168.61 mln vs the $157.46 mln Capital IQ Consensus.
"As we have said previously, the revenue split between Q3 and Q4 is always difficult to predict due to the timing and shipment of consumer products for the holiday season. This year, our new partner in China requested Q3 delivery of some Braava jet and Roomba orders that we were expecting to ship in Q4. This resulted in higher than anticipated consumer revenue and profitability in Q3."
Co issues guidance for Q4, sees EPS of $0.36-0.44 vs. $0.60 Capital IQ Consensus Estimate; sees Q4 revs of $202-207 mln vs. $204.72 mln Capital IQ Consensus Estimate.
4:10 pm : The stock market ended the Tuesday affair on a modestly lower note as investors evaluated the latest batch of quarterly reports. Today's trade also featured a pullback in crude oil and increased volatility in the foreign exchange market. The Nasdaq Composite (-0.5%) settled behind the S&P 500 (-0.4%) and the Dow Jones Industrial Average (-0.3%).
The major averages inched lower at the start of the session, responding to mixed quarterly results from some market bellwethers. Dow components Procter & Gamble (PG 87.97, +2.87, +3.4%) and Merck (MRK 61.95, +1.20, +2.0%) finished at the top of the price-weighted average after reporting upbeat quarterly results. On the flipside, Dow members 3M (MMM 166.23, -5.04, -2.9%) and Caterpillar (CAT 84.48, -1.51, -1.8%) finished behind the index after cautious guidance stymied buying interest.
Equities extended their losses after the opening hour as some strengthening in the U.S. Dollar Index (98.73, -0.02, -0.02%) flashed warning signs to the broader market. The move higher came on the heels of some fleeting depreciation in the British pound. Sterling plunged 1.3% against the dollar (1.2083) ahead of commentary from Bank of England Governor Mark Carney. However, remarks from Governor Carney proved to be rather innocuous and the currency pair narrowed its loss throughout the remainder of the session. The pound lost 0.5% against the dollar (1.2183).
Crude oil was also unable to find its bearings today as the energy component extended its losing streak. Participants remained unsettled after Iraq indicated in the prior session that it may seek an exemption from the previously discussed OPEC supply freeze agreement. WTI crude ended its session lower by 1.3% ($49.87/bbl; -$0.65), extending its weekly loss to 1.9%. The American Petroleum Institute is scheduled to release its weekly inventory report after today's close while the Department of Energy will report its more influential inventory data tomorrow at 10:30 ET.
The broader market finished in the bottom of today's trading range as nine S&P 500 sectors ended in negative territory. Consumer discretionary (-1.2%), materials (-1.0%), telecom services (-0.6%), and technology (-0.4%) rounded out the leaderboard.
The consumer discretionary sector (-1.2%) bore the brunt of today's selling interest as the home retailer, apparel, and automobile sub-groups each moved lower following disappointing earnings and/or guidance. Lowe's (LOW 68.47, -2.51, -3.5%) and Home Depot (HD 123.34, -4.44, -3.5%) were under pressure after Sherwin-Williams (SHW 247.61, -30.27, -10.9%) missed quarterly earnings estimates and lowered its earnings outlook for the remainder of the year. Shares of Under Armour (UA 32.89, -5.01) tumbled 13.2% as below-consensus revenue guidance for the fourth quarter masked a bottom-line beat. Separately, General Motors (GM 31.60, -1.38) finished down 4.2% despite reporting a better-than-expected quarter.
In the technology sector (-0.5%), top-weighted Apple (AAPL 118.25, +0.60) finished higher by 0.5% ahead of its quarterly report. Meanwhile, Corning (GLW 22.97, -0.92) fell 3.9% despite reporting above-consensus quarterly results. The high-beta chipmakers finished slightly ahead of the broader sector as the PHLX Semiconductor Index slipped 0.2%.
The industrial group (-0.4%) settled in-line with the broader market as aerospace and defense names led. Lockheed Martin (LMT 249.26, +17.10, +7.4%) beat earnings estimates for the quarter and raised its full-year outlook. Separately, large caps Caterpillar (CAT 84.48, -1.51, -1.8%) and 3M (MMM 166.23, -5.04, -2.9%) each finished lower.
Treasuries finished on a mixed note with the short end of the curve underperforming. The yield on the 2-yr note rose two basis points to 0.86% while the yield on the benchmark 10-yr note ended down one basis point at 1.76%.
Today's trading volume was below the average of 853 million as 819 million shares changed hands at the NYSE floor.
Today's economic data included the Case-Shiller 20-city Index for August, the FHFA Housing Price Index for August, and Consumer Confidence for October:
The FHFA Housing Price Index for August rose 0.7%, which followed an increase of 0.5% in July.
The Case-Shiller 20-city Home Price Index for August rose 5.1%, which fell in-line with the Briefing.com consensus. This followed the previous month's unrevised reading of 5.0%.
The Conference Board's Consumer Confidence Index fell to 98.6 in October from a downwardly revised 103.5 (from 104.1) in September. The downturn in October followed back-to-back monthly gains in the Index.
For more on these economic releases, be sure to visit Briefing.com's Economic Calendar page.
Tomorrow's economic data will include the weekly MBA Mortgage Index and International Trade in Goods for September, which will be released at 7:00 ET and 8:30 ET, respectively. The day's data will be capped off with the 10:00 ET release of New Home Sales for September (Briefing.com consensus 610k).
Russell 2000: +7.0% YTD
Nasdaq Composite: +5.5% YTD
S&P 500: +4.9% YTD
Dow Jones: +4.3% YTD
DJ30 -53.76 NASDAQ -26.43 SP500 -8.17 NASDAQ Adv/Vol/Dec 888/1.428 bln/1917 NYSE Adv/Vol/Dec 1162/818.4 mln/1774 3:30 pm :
Commodities, as measured by the Bloomberg Commodity Index, were -0.2% around the 86.01 level
Crude oil broke & ended below the $50.00/barrel support level ahead of today's API data
December crude oil futures fell $0.65 (-1.3%) to $49.87/barrel
API data will be released today after the bell.
Weekly EIA petroleum storage data will be released tomorrow at 10:30 am ET.
Baker Hughes rig count data will be released Friday at 1 pm ET.
The next official OPEC meeting will take place in Vienna, Austria on November 30.
Monthly IEA oil data will be released November 10.
Reminder: Yesterday, it was reported that Iraq's oil minister stated Iraq will not be part of the previously announced OPEC production cut, discussing that its market share would be much higher if not for the wars it has been fighting since the 1980's. Iraq also added they could raise output slightly this month from Sept levels around 4.774 mln barrels/day.
Natural gas ended lower for the fifth consecutive session, ahead of Thursday's inventory data
November natural gas closed $0.06 lower (-2.1%) at $2.78/MMBtu
Weekly EIA natural gas data will be released Thursday at 10:30 am ET
In precious metals, gold's rally was outpaced by the gains in silver as the dollar index traded nearly flat; the gold:silver ratio extended yesterday's decline
December gold ended today's session up $10.10 (+0.8%) to $1273.60/oz
December silver closed today's session $0.18 higher (+1.0%) at $17.78/oz
The gold:silver ratio was ~71.6, compared to yesterday's pit trading close ratio of ~71.8
Base metal copper extended this morning's rally after 4 previous sessions of nearly directionless trading
December copper closed $0.05 higher (+2.4%) at $2.14/lb
The broader market gave back Monday's gains on Tuesday, with all three major US indices ending lower amid mixed earnings results. Leading the negative bias, the Nasdaq Composite shed 26.43 points (-0.50%) to 5283.40. The S&P 500 was down 8.17 points (-0.38%) to 2143.16, and the Dow Jones Industrial Average ended lower by 53.76 points (-0.30%) to 18169.27.
As it were, the major averages began lower at the start of the session, responding to mixed quarterly results from some market bellwethers. Dow components Procter & Gamble (PG 87.97, +2.87, +3.4%) and Merck (MRK 61.95, +1.20, +2.0%) finished at the top of the price-weighted average after reporting upbeat quarterly results. On the flipside, Dow members 3M (MMM 166.23, -5.04, -2.9%) and Caterpillar (CAT 84.48, -1.51, -1.8%) finished behind the index after cautious guidance stymied buying interest.
Equities extended their losses after the opening hour as some strengthening in the U.S. Dollar Index (98.73, -0.02, -0.02%) flashed warning signs to the broader market. The move higher came on the heels of some fleeting depreciation in the British pound. Sterling plunged 1.3% against the dollar (1.2083) ahead of commentary from Bank of England Governor Mark Carney. However, remarks from Governor Carney proved to be rather innocuous and the currency pair narrowed its loss throughout the remainder of the session. The pound lost 0.5% against the dollar (1.2183).
Crude oil was also unable to find its bearings today as the energy component extended its losing streak. Participants remained unsettled after Iraq indicated in the prior session that it may seek an exemption from the previously discussed OPEC supply freeze agreement. WTI crude ended its session lower by 1.3% ($49.87/bbl; -$0.65), extending its weekly loss to 1.9%. The American Petroleum Institute is scheduled to release its weekly inventory report after today's close while the Department of Energy will report its more influential inventory data tomorrow at 10:30 ET.
The Technology (XLK 47.82, -0.17 -0.35%) sector ended the session in the red, but skewed toward the middle of the ladder as far as S&P sectors go. Component Corning (GLW22.97, -0.92 -3.85%) was the worst performer despite reporting better than expected Q3 EPS and revenues this morning. Other sectors as measured by the S&P closed Tuesday trading XLU +0.62%, XLP +0.31%, XLF -0.10%, XLRE -0.13%, XLI -0.26%, XLV -0.29%, XLFS -0.32%, XLE -0.53%, IYZ -0.76%, XLB -0.91%, XLY -1.17%.
In the S&P 500 Information Technology (808.82, -2.86 -0.35%) sector, action ended lower but slightly off lows of the session. Component Apple (AAPL 118.25, +0.60 +0.51%) finished modestly higher today ahead of earnings which are scheduled to be released tonight after the close. Other name in the space which underperformed today included CSRA -2.14%, VRSN -2.13%, QRVO -1.68%, AVGO -1.64%, ADBE -1.61%, TEL -1.48%, CTXS -1.47%, EA -1.45%, V -1.37%, FFIV -1.30%.
Other notable news items among sector components:
Alphabet (GOOG 807.67, -5.44 -0.67%) purchased eye-tracking technology company Eyefluence.
IBM's (IBM 150.88, +0.31 +0.21%) board authorized $3 billion in additional funds for use in IBM's stock repurchase program. This amount is in addition to about $3 billion remaining at the end of September 2016 from a prior authorization. With this new authorization, IBM will have about $6 billion for its stock repurchase program.
Alliance Data (ADS 203.90, -2.59 -1.25%) priced an upsized offering of $500 million (from $400 million) aggregate principal amount of 5.875% Senior Notes due 2021.
Red Hat (RHT 77.35, -0.86 -1.10%) announced that Produban, the IT services arm of the Spanish banking leader Grupo Santander, has picked RHT as its technology partner to create a modern cloud infrastructure with Red Hat OpenShift Container Platform on Red Hat OpenStack Platform.
First Data (FDC 13.87, -0.33 -2.32%) to bring the Alipay mobile payment solution to United States merchants beginning in November. Verifone (PAY 15.79, +0.16 +1.02%) also expanded its Alipay acceptance to retailers in North America and Europe.
Mastercard (MA 102.88, -0.31 -0.30%) announced a partnership with Fit Pay, Inc. to bring Mastercard contactless payments to consumer wearables and Internet of Things (IoT) devices.
Fiserv (FISV 99.72, -0.79 -0.79%) announced that Farm Credit Services of America, based in Omaha, Nebraska, has selected the DNA account processing platform from Fiserv to support its agricultural lending operations.
Elsewhere in the tech space:
Netflix (NFLX 126.51, -0.82 -0.64%) priced an upsized offering of $1 billion (from $800 million) 4.375% senior notes due 2026.
Towerstream (TWER 1.40, +0.22 +18.64%) expects to add 100 new buildings to its On-Net footprint in Q4 to 437 total buildings. This is more than double the 265 that were in the On-Net footprint at the end of H1. In addition to this expansion, management is considering select M&A transactions that would complement its organic growth. The company seeks fixed wireless companies that are similar to it and would be accretive.
According to Bloomberg, Twitter (TWTR 17.26, -0.77 -4.27%) may be planning an 8% workforce reduction.
Intelsat (I 2.80, +0.03 +1.08%) announced a contract with Nine Network Australia to distribute programming to its six domestic television stations.
Blackbaud (BLKB 65.06, +0.06 +0.09%) reaffirmed FY16 EPS of $1.90-1.98, sales of $725-740 million. Also raised OCF guidance to $147.0-157.0 million from $135.0-145.0 million. The company also adopted stock compensation accounting standard early.
Fitch placed AT&T's (T 36.70, -0.16 -0.43%) 'A-' IDR on Negative Watch on proposed Time Warner (TWX 87.16, +0.42 +0.48%) acquisition.
AVX Corp (AVX 13.79, -0.16 -1.15%) entered into a technology disclosure agreement with its majority stockholder, Kyocera Corporation (KYO 49.47, +0.29 +0.59%).
In reaction to quarterly results:
Visa (V 82.03, -1.14 -1.37%) reported better than expected Q4 EPS of $0.78 on revenues which rose 19.3% compared to last year to $4.26 billion. Also, management guided FY17 on a GAAP basis with annual net revenue growth in a 16% to 18% range on a nominal dollar basis, including 1.0 to 1.5 ppts of negative foreign currency impact. Sees client incentives as a percent of gross revenues in 20.5% to 21.5% range. Sees annual operating margin in the mid 60s on an effective tax rate in the low 30s. Also sees annual diluted class A common stock earnings per share growth of low 30s on a GAAP nominal dollar basis and mid-teens on an adjusted, non-GAAP nominal dollar basis, both including 1.5 to 2.0 ppts of negative foreign currency impact.
Sprint (S 6.50, -0.42 -6.07%) reported a better than expected Q2 loss per share of $0.04 on better than expected revenues which rose 3.4% compared to last year to $8.25 billion. S also reaffirmed FY16 EBITDA guidance of $9.5-10.0 billion and adjusted free cash flow of around breakeven. Also raised operating income guidance from $1.0-1.5 billion to $1.2-1.7 billion.
Corning (GLW) reported better than expected Q3 EPS and revenues of $0.42 and $2.55 billion, respectively.
Cadence Design (CDNS 25.51, -0.23 -0.89%) reported better than expected Q3 EPS of $0.30 on in-line revenues of $446.2 million. CDNS also sees worse than expected Q4 EPS of $0.32-0.34 on revenues of $463-473 million.
Intersil (ISIL 22.10, +0.02 +0.09%) reported better than expected Q3 EPS and revenues of $0.22 and $139.05 million, respectively.
Electronics For Imaging (EFII 43.03, -0.57 -1.31%) reported in-line Q3 EPS and revenues of $0.58 and $245.6 million, respectively.
Companies scheduled to report tonight/tomorrow morning: AKAM, AAPL, JNPR, LOGI, MRCY, NCR, P, RSYS, RNG, FUEL, TSS, UIS, ZIXI/AVX, ENTG, FLIR, GRUB, MMYT, SLAB, SONS, VNTV, VG
Analyst actions:
TWX was upgraded to Outperform from Neutral at Wedbush,
T was upgraded to Hold from Sell at Independent Research;
V was downgraded to Neutral from Buy at Guggenheim,
ERIC was downgraded to Neutral from Overweight at JP Morgan;
INOV was initiated with an Equal Weight at First Analysis Sec,
NTNX was initiated at RBC Capital Mkts, Raymond James, Goldman, Stifel, JP Morgan, Piper Jaffray, Credit Suisse, Morgan Stanley, Robert W. Baird, Oppenheimer, William Blair, Pacific Crest and Needham, LOGI was initiated with a Buy at Brean Capital,
ANET was initiated with a Buy at Argus,
COHR was initiated with a Buy at Northcoast
6:59 am II-VI beats by $0.12, reports revs in-line; guides Q2 EPS above two analyst estimate, revs mid-point above consensus (IIVI) :
Reports Q1 (Sep) adj earnings of $0.35 per share, $0.12 better than the two analyst estimate of $0.23; revenues rose 17.1% year/year to $221.5 mln vs the $220.04 mln Capital IQ Consensus. Co issues guidance for Q2, sees EPS of $0.24-0.29 vs. $0.23 two analyst estimate; sees Q2 revs of $220-230 mln vs. $220.90 mln Capital IQ Consensus Estimate.Co reported Q1 bookings of $244.3 mln, up 31% YoY. "We started our new fiscal year with a very good first quarter, reporting results at the high end of our guidance. Component sales into the optical communications market led the growth in margins, and our industrial laser business remained steady. Our new acquisitions met our expectations, and we have made good progress in our investment programs to scale our technology platforms to address fast-growing, emerging markets such as 3D sensing."
