From Briefing.com: 4:31 pm SolarCity beats by $0.21, beats on revs; sees FY16 installations at low end of range -- vote on acquisition by Tesla is Nov. 17 (SCTY) : Reports Q3 (Sep) loss of $2.27 per share, excluding non-recurring items, $0.21 better than the Capital IQ Consensus of ($2.48); revenues rose 76.1% year/year to $200.6 mln vs the $164.78 mln Capital IQ Consensus.
"We installed 187 MW in the third quarter of 2016, significantly exceeding our guidance of 170 MW. Residential installations were 147 MW, and commercial and industrial ("C&I") installations were 40 MW... With the shareholder votes on Tesla's (TSLA) proposed acquisition of SolarCity scheduled for November 17, we are very excited about the prospects and implications of becoming a part of Tesla. We are heading into the potential combination with a strengthening cash balance, year-to-date revenue up 79% and gross profit up 91% vs. last year, and a growing solar loan/system sale mix improving our GAAP profitability. Building on this momentum and buoyed by our new Solar Loan-and Solar Roof-products, we expect continued improvement in our installation run rates, Cost per Watt, and most importantly our cash generation in the fourth quarter of 2016 and 2017. Based on our fourth quarter run rate, we expect to install ~900 MW for the full year 2016." Down from 900-1000MW.
4:26 pm SunPower beats by $0.24, misses on revs; guides Q4 revs below consensus; sees a significant near term market dislocation; prior 2017 guidance no longer current (SPWR) :
Reports Q3 (Sep) non-GAAP earnings of $0.68 per share, excluding non-recurring items, $0.24 better than the Capital IQ Consensus of $0.44; GAAP revenue rose 91.8% year/year to $729.35 mln vs the $782.94 mln Capital IQ Consensus.
Co issues downside guidance for Q4, sees Q4 GAAP revs of $900 mln to $1.10 bln vs. $1.37 bln Capital IQ Consensus Estimate.
During the quarter, the co continued to see strong demand for its SunPower Equinox residential complete solution while further building out its Helix solution footprint in the commercial space. The co also executed on its construction commitments in its power plant segment, including the sale of its 49% ownership stake in its 102-megawatt (:MW) Henrietta project to 8point3 Energy Partners, and launched its third-generation Oasis power plant complete solution.
"While prospects for long term solar industry growth remain strong, we are seeing a significant near term market dislocation in the solar market that we expect will impact our financial performance through 2017....given the current market environment, we have made the decision to implement a companywide cost reduction program, along with other proactive strategic initiatives, to focus on improving cash flow through the current market dislocation while positioning the company to succeed in the next phase of industry growth. We intend to conclude our cost reduction analysis in the near future and will formally announce our restructuring program on December 7, 2016."SPWR will implement the following initiatives:
1) Reduce capacity to lower inventory, improve cash flow and match to profitable demand; 2) Cost reduction programs that are expected to improve margins and reduce 2017 annual operating expenses to approximately $350 mln; 3) Target 2017 capital expenditures of approximately $100 million, a reduction of more than 50%; and 4) Initiatives to improve liquidity with the goal of generating positive cash flow from operations through the end of 2017 and exiting the year with approximately $300 mln in cash.
In light of the circumstances noted above, the company's previously issued 2017 guidance should no longer be considered current. The company expects to issue revised 2017 guidance once its restructuring proposal is finalized and announced in December.
4:16 pm Diodes beats by $0.02, reports revs in-line; guides Q4 revs below consensus (DIOD) :
Reports Q3 (Sep) earnings of $0.30 per share, $0.02 better than the Capital IQ Consensus of $0.28; revenues rose 20.0% year/year to $250.7 mln vs the $250.54 mln Capital IQ Consensus.
Co issues downside guidance for Q4, sees Q4 revs of $232-248 mln vs. $248.28 mln Capital IQ Consensus Estimate.
Expects gross margin to be 32.2 percent, plus or minus 1 percent.
Non-GAAP operating expenses, which are GAAP operating expenses adjusted for retention costs and amortization of acquisition-related intangible assets, are expected to be approximately 23.5 percent of revenue, plus or minus 1 percent.
Expects other expense to be approximately $3.9 million, and our income tax rate to be 29 percent, plus or minus 3 percent.
4:12 pm SolarEdge Technologies beats by $0.01, misses on revs; guides Q2 revs below consensus (SEDG) :
Reports Q1 (Sep) earnings of $0.46 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.45; revenues rose 11.7% year/year to $128.5 mln vs the $132.47 mln Capital IQ Consensus.
466 Megawatts (AC) of inverters shipped for the quarter
Co issues downside guidance for Q2, sees Q2 revs of $110-120 mln vs. $137.46 mln Capital IQ Consensus Estimate.
Gross margins to be within the range of 30% to 32%.
4:06 pm Harmonic misses by $0.04, misses on revs; guides Q4 EPS below consensus, revs below consensus (HLIT) :
Reports Q3 (Sep) loss of $0.01 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus of $0.03; revenues rose 22.1% year/year to $101.7 mln vs the $107.24 mln Capital IQ Consensus.
Near record backlog and deferred revenue of $181.1 million.
Bookings for the third quarter of 2016 were $97.3 million, compared with $117.3 million for the second quarter of 2016 and $74.6 million for the third quarter of 2015.
Co issues downside guidance for Q4, sees EPS of $0.05-0.07, excluding non-recurring items, vs. $0.13 Capital IQ Consensus Estimate; sees Q4 revs of $106-110 mln vs. $116.08 mln Capital IQ Consensus Estimate.
Gross margin to be 53.0% to 54.0%.
4:10 pm : The stock market ended the Wednesday affair on a broadly higher note as participants re-positioned to account for a Donald Trump presidency. Mr. Trump recorded an upset victory against Democratic presidential nominee Hillary Clinton last evening. The Dow Jones Industrial Average (+1.4%) finished ahead of both the S&P 500 (+1.1%) and the Nasdaq Composite (+1.1%).
Global markets endured a volatile overnight session as unexpected results in the US presidential race caught investors offside. Political pundits and recent polling data were proved wrong as Mr. Trump clinched the 270 electoral votes necessary to become the 45th President of the United States. The Republican nominee also helped ensure that the GOP maintained control of both houses of Congress.
The upset victory was largely unexpected, throwing a proverbial wrench in the market's expectations for the election. Index futures initially plunged on the news as rising uncertainty fueled a risk off posture. Futures on the benchmark index initially fell 5.0%, triggering a trading halt.
The broader market was able to stabilize in the early morning as President-elect Trump helped calm investors. Mr. Trump indicated in his acceptance speech that the country must come together after a fractious election and relationships must be forged overseas. The President-elect also underscored that infrastructure spending will play a large role in his administration.
Equity indices showed marked resilience as the group erased marginal losses by mid-morning. Resilience in the broader market continued to stoke risk appetite as investors worked to price-in expectations of aggressive infrastructure spending and responded to a lower likelihood for price controls in the health care space.
The benchmark index ended near its best level of the day as seven sectors finished in positive territory. The heavyweight financial (+4.1%) and health care (+3.4%) sectors led the pack while industrials (+2.4%) and materials (+2.1%) also outperformed. On the other hand, rate-sensitive utilities (-3.7%) and real estate (-2.3%) finished with the largest losses.
The economically-sensitive financial sector (+4.1%) outperformed as rapid steepening in the yield curve bolstered the earnings prospects for banking names. The sub-group was also on the rise amid hopes for reduced regulations under a Trump administration. Dow components Goldman Sachs (GS 192.63, +10.71) and JPMorgan Chase (JPM 73.25, +3.22) finished higher by 5.9% and 4.6%, respectively.
Biotechnology and pharmaceutical names led in the health care sector (+3.4%) as the groups shrugged off recent concerns regarding potential drug pricing measures. The iShares Nasdaq Biotechnology ETF (IBB 284.99, +23.27) ended higher by 8.9% while Dow component Pfizer (PFE 32.12, +2.12, +7.1%) finished at the top of the price-weighted average. On the flipside, managed health care names were under pressure as participants speculated about a potential repeal of the Affordable Care Act by the next administration. Dow component UnitedHealth (UNH 141.90, -1.00) fell 0.7%, rounding out the index.
In the industrial sector (+2.4%), defense and machinery names displayed relative strength as investors expressed some optimism for potential infrastructure projects and defense spending. Lockheed Martin (LMT 253.46, +14.27) and Caterpillar (CAT 91.20, +6.52) rose 6.0% and 7.7%, respectively.
The energy sector gained 1.5% as crude oil snapped a recent losing streak. The energy component rose following a mixed inventory report from the Department of Energy. The EIA reported that crude oil inventories increased by 2.43 million barrels (consensus: +1.33 million) while gasoline stockpiles fell by 2.84 million barrels (consensus: -1.03 million). WTI crude finished higher by 0.6% ($45.20/bbl; +$0.25).
Treasuries finished on a lower note as the long end of the curve underperformed. The yield on the 2-yr note finished higher by three basis points (0.90%) while the yield on the 10-yr note surged 22 basis points (2.08%).
Today's trading volume was above the average of 877 million as more than 1.39 billion shares changed hands at the NYSE floor.
Today's economic data was limited to the weekly MBA Mortgage Index and the Wholesale Inventory Report for September:
The MBA Mortgage Index indicated that mortgage applications fell 1.2% in the week ending November 5. This followed a 1.2% decline in the prior week.
Wholesale inventories increased 0.1% month-over-month in September (Briefing.com consensus +0.2%) following an upwardly revised 0.1% decline (from -0.2%) in August.
Wholesale sales were up 0.2% on the heels of an unrevised 0.7% increase in August.
Tomorrow's economic data will be limited to the 8:30 ET release of weekly initial claims (Briefing.com consensus 262k) and the 14:00 ET release of the October Treasury Budget.
Russell 2000: +8.2% YTD
Dow Jones: +6.7% YTD
S&P 500: +5.8% YTD
Nasdaq Composite: +4.9% YTD
DJ30 +256.84 NASDAQ +57.58 SP500 +23.67 NASDAQ Adv/Vol/Dec 2125/2.147 bln/832 NYSE Adv/Vol/Dec 1673/1.390 bln/1339
3:50 pm :
Commodities closed marginally higher despite a strong dollar in reaction to Donald Trump taking the White House while the Republicans maintained control of Congress.
Crude oil closed modestly higher +$0.25 (0.6%) to $45.2/barrel after inventories increased 2.4 million barrels versus last week, slightly more than expected.
Natural gas finished +$0.06 (2.3%)
December natural gas futures
Gold initially surged when Trump took the lead last but December gold futures ended today's session down $1.10 (0.1%) to $1273.5/oz
December silver closed today's session $0.04 higher (+0.2%) at $18.39/oz
December silver futures
Base metals were strong in as Donald Trump is expected to push infrastructure spending: Copper futures rose 3.4% to a new 52 week high while iron ore futures rose almost 6%.
The day after, the broader market closed modestly off highs, albeit with gains of more than +1% aross the board. Leading the post-election charge, the Dow Jones Industrial Average added 256.95 points (+1.40%) to 18589.69. The S&P 500 was up by 23.70 points (+1.11%) to 2163.26, and the Nasdaq Composite advanced 57.58 points (+1.11%) to 5251.07.
Global markets endured a volatile overnight session as unexpected results in the US presidential race caught investors offside. Political pundits and recent polling data were proved wrong as Mr. Trump clinched the 270 electoral votes necessary to become the 45th President of the United States. The Republican nominee also helped ensure that the GOP maintained control of both houses of Congress.
The upset victory was largely unexpected, throwing a proverbial wrench in the market's expectations for the election. Index futures initially plunged on the news as rising uncertainty fueled a risk off posture. Futures on the benchmark index initially fell 5.0%, triggering a trading halt.
The broader market was able to stabilize in the early morning as President-elect Trump helped calm investors. Mr. Trump indicated in his acceptance speech that the country must come together after a fractious election and relationships must be forged overseas. The President-elect also underscored that infrastructure spending will play a large role in his administration.
Equity indices showed marked resilience as the group erased marginal losses by mid-morning. Resilience in the broader market continued to stoke risk appetite as investors worked to price-in expectations of aggressive infrastructure spending and responded to a lower likelihood for price controls in the health care space.
Market data today included the MBA Mortgage Index which indicated that mortgage applications fell 1.2% in the week ending November 5. This followed a 1.2% decline in the prior week. Also, wholesale inventories increased 0.1% month-over-month in September following an upwardly revised 0.1% decline (from -0.2%) in August.
There was a defined split in S&P sectors, with the Technology (XLK 47.35, -0.06 -0.13%) space ending in the red, but just barely. Component Harris (HRS 101.20, +3.74 +3.84%) was the best performer, while First Solar (FSLR 32.10, -1.39 -4.15%) had the worst session, both on no apparent catalyst. Other sectors as measured by the S&P closed out Wednesday XLF +4.25%, XLFS +4.12%, XLV +3.52%, XLI +2.51%, XLB +2.12%, XLE +1.63%, XLY +0.20%, XLP -1.37%, XLRE -2.25%, XLU -3.68%.
In the S&P 500 Information Technology (797.66, -1.93 -0.24%) sector, trading took a step, albeit a modest step, back away from the $800-level after a strong session yesterday. Component HP (HPQ 15.57, +0.29 +1.90%) was one of the better performing names in the space today after the company announced it would increase its next dividend payout to a rate of $0.1327 per share. Other names in the space which underperformed today included CTSH -3.43%, WU -2.69%, EA -2.52%, ACN -2.17%, ATVI -2.10%, AVGO -2.02%, NVDA -1.69%, AMAT -1.29%.
Other notable news items among sector components:
Motorola Solutions (MSI 78.96, +0.40 +0.51%) disclosed the acquisition of Gridstone. Financial terms of the deal were not disclosed.
HP (HPQ) increased its quarterly dividend to $0.1327 per share from $0.124 per share.
Micron (MU 17.20, -0.21 -1.21%) provided written notice to Nanya Technology of its election to issue to it 57,780,138 shares of Micron's common stock for an aggregate purchase price of about $1 billion.
Skyworks Solutions (SWKS 77.66, +0.33 +0.43%) launched its portfolio of cable TV infrastructure solutions targeting DOCSIS 3.1 and EuroDOCSIS 3.1 cable applications.
Texas Instruments (TXN 69.79, -0.04 -0.06%) introduced the industry's first precision nanopower operational amplifiers. The LPV811 and LPV812 consume quiescent current as low as 320 nA and are part of a family of four new ultra-low-power op amps.
LatAm Autos announced LatAm Autos has executed a co-marketing agreement with eBay (EBAY 28.29, +0.26 +0.93%) Mexico to release a new digital auto-classifieds product in Mexico.
Elsewhere in the tech space:
GoPro (GPRO 10.41, -0.45 -4.14%) announced the recall of 2,500 Karma units.
Lumos Networks (LMOS 14.66, +0.51 +3.60%) signed a purchase agreement to acquire Clarity Communications Group expected to close in Q1 of 2017. The agreement is expected to be accretive on an adj. EBITDA basis, but other financial details were not disclosed. LMOS also said to be working with bankers to explore strategic alternatives for its regulated Local Exchange Carrier assets.
GTT Communications (GTT 23.50, +2.30 +10.85%) acquired Hibernia Networks for $590 million which consists of $515 million in cash and about 3.3 million shares of GTT common stock; expected to close in Q1 2017.
Pandora Media (P 10.43, -0.08 -0.76%) said it has initiated a search for a full-time CFO.
Kopin (KOPN 2.02, flat) delayed filing its form 10-Q for period ended Sept 2016 while investigating potential embezzlement.
In reaction to quarterly results:
CGI Group (GIB 50.14, +2.19 +4.57%) reported Q3 EPS of C$0.89 on revenues of C$2.58 billion.
Amdocs (DOX 56.73, -1.62 -2.78%) reported in-line Q4 EPS and revenues of $0.89 and $940.65 million. For Q1, the company sees in-line EPS and revenues of $0.87-0.93 and $935-975 million, respectively. For FY17, the company sees in-line EPS growth of +4.5-8.5% to about $3.73-3.87 and revenue growth of +2-6% to about $3.792-3.941 billion.
TripAdvisor (TRIP 52.63, -10.47 -16.59%) reported better than expected Q3 EPS of $0.53 on worse than expected revenues of $421 million. For 2017, the company sees adjusted EBITDA margins lower than the result achieved in 2016.
ViaSat (VSAT 78.45, +7.96 +11.29%) reported better than expected Q2 EPS and revenues of $0.40 and $399.2 million, respectively.
Convergys (CVG 25.98, -2.40 -8.46%) reported in-line EPS of $0.46 on worse than expected revenues of $741 million.
Vectrus (VEC 20.55, +3.70 +21.96%) reported better than expected Q3 EPS of $0.60 on worse than expected revenues of $283.8 million. For FY16, the company sees EPS of $2.12-2.28, from prior $2.07-2.32 on revenues of $1.19-1.20 billion, from $1.18-1.20 billion.
Companies scheduled to report quarterly results tonight/tomorrow morning: ATTO PMTS CSRA APPS DIOD EGAN EVRI HLIT CALL MRIN MIME NTES PFSW QNST RPD RBCN SREV SCTY SEDG SPWR TTGT TTEC TUBE VRTU WK YUME/BRKS CLFD HIMX MGIC MMS NICE WIX ZBRA
Analyst actions:
FFIV was upgraded to Neutral from Reduce at Nomura,
CHA was upgraded to Outperform from Market Perform at Bernstein;
GPRO was downgraded to Neutral from Outperform at Wedbush, to Sell from Neutral at Dougherty & Company, and to Mkt Perform from Outperform at Raymond James,
VSH was downgraded to Hold from Buy at Stifel,
SPWR was downgraded to Neutral from Buy at BofA/Merrill,
MMS was downgraded to Mkt Perform from Outperform at Raymond James
