From Briefing.com: 4:28 pm NVIDIA beats by $0.26, beats on revs; guides Q4 revs well above consensus; adds $2 bln to buyback and raises dividend 22% to $0.14/share (NVDA) :
Reports Q3 (Oct) earnings of $0.94 per share, excluding non-recurring items, $0.26 better than the Capital IQ Consensus of $0.68; revenues rose 53.6% year/year to $2 bln vs the $1.69 bln Capital IQ Consensus; non-GAAP gross margin 59.2% vs. 57.5-58.5% guidance
Co issues upside guidance for Q4, sees Q4 revs of $2.1 bln vs. $1.69 bln Capital IQ Consensus Estimate; non-GAAP gross margin 58.5-59.5%.
For fiscal 2018, NVIDIA intends to return $1.25 billion to shareholders through ongoing quarterly cash dividends and share repurchases.
The company's board of directors has authorized an additional $2.00 billion under the company's stock repurchase program for a total of $2.96 billion available through the end of December 2020.
The company announced a 22 percent increase in its quarterly cash dividend to $0.14 per share from $0.115 per share, to be paid with its next quarterly cash dividend on December 19, 2016, to all shareholders of record on November 28, 2016.
"We had a breakout quarter - record revenue, record margins and record earnings were driven by strength across all product lines," said Jen-Hsun Huang, founder and chief executive officer, NVIDIA. "Our new Pascal GPUs are fully ramped and enjoying great success in gaming, VR, self-driving cars and datacenter AI computing. "We have invested years of work and billions of dollars to advance deep learning.
Our GPU deep learning platform runs every AI framework, and is available in cloud services from Amazon, IBM, Microsoft and Alibaba, and in servers from every OEM. GPU deep learning has sparked a wave of innovations that will usher in the next era of computing."
Announced that its NVIDIA DRIVE PX 2 platform will power a new AutoPilot system in all of Tesla Motors' factory produced vehicles - the Model S, Model X and upcoming Model 3.
4:16 pm Ingram Micro announces that the End Date by which its proposed acquisition by Tianjin Tianhai has been extended to December 15; continues to expects closing to occur in 2016 (IM) :
4:14 pm Photronics lowers Q4 EPS and revenue guidance (PLAB) :
Co issues lowered guidance for Q4 (Oct), sees EPS of $0.02-0.03 from $0.09-0.17 vs. $0.13 Capital IQ Consensus Estimate; lowers Q4 (Oct) revs to $107 mln from $118-128 mln vs. $123.46 mln Capital IQ Consensus Estimate.
"We had anticipated weak demand trends for both high end memory and high end FPD, with improvement in high end logic. However, the markets we projected to decline experienced more weakness than we anticipated, and the markets we expected to improve did not do so. With lower sales, earnings fell due to the high amount of operating leverage in our model, particularly for our high end operations. Despite the lower profit levels, we did build our cash position, with net cash reaching over $245 million."
4:05 pm Microsemi beats by $0.01, reports revs in-line; guides Q1 EPS in-line, revs in-line (MSCC) :
Reports Q4 (Sep) earnings of $0.91 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.90; revenues rose 36.9% year/year to $450.1 mln vs the $448.07 mln Capital IQ Consensus.
Non-GAAP gross margin for the fourth quarter of 2016 was a record 62.6 percent, up 610 basis points from the 56.5 percent in the fourth quarter of2015 and up 70 basis points from the 61.9 percent reported in the third quarter of 2016.
Co issues in-line guidance for Q1, sees EPS of $0.82-0.90, excluding non-recurring items, vs. $0.82 Capital IQ Consensus Estimate; sees Q1 revs of $428-442 mln vs. $433.83 mln Capital IQ Consensus Estimate.
4:15 pm : The stock market ended the Thursday affair on a mixed note as investors continued adjusting their positions in preparation for a Donald Trump presidency. The Dow Jones Industrial Average (+1.2%) notched a new all-time high while the S&P 500 (+0.2%) and the Nasdaq Composite (-0.8%) finished behind the price-weighted average.
Equity indices jumped out of the gate, looking to build on yesterday's strong performances. The major averages staged an impressive reversal on Wednesday, shrugging off unexpected results from the 2016 election cycle while assessing what a Trump administration may mean for capital markets. The benchmark index notched a high in the opening hour of today's session while the Dow Jones Industrial Average set a new all-time high in early afternoon action.
The major indices saw some intraday divergence as investors responded to expectations for reduced regulations, lower personal and corporate taxes, and fiscal stimulus through large infrastructure projects. The combination had heavily-weighted financials (+3.7%), industrials (+2.1%), and health care (+1.2%) at the top of the leaderboard.
The three sectors gained at the expense of the technology space (-1.6%). On that note, Alphabet (GOOG 762.56, -22.75) and Apple (AAPL 107.76, -3.12) fell roughly 2.9% apiece. The tech space underperformed as some participants shifted their exposure to areas that are expected to benefit from large public works projects.
The benchmark index finished the day modestly higher as six sectors logged gains. On the flipside, defensively-oriented consumer staples (-2.8%), utilities (-2.5%), and telecom services (-2.3%) rounded out the board.
The financial sector (+3.7%) displayed relative strength as banking names paced the advance amid growing hopes for reduced regulations. Another day of steepening in the yield curve also contributed to the sector's strength. The Wall Street Journal reported this afternoon that the Trump administration may consider scrapping portions of the Dodd-Frank Act. Dow components JPMorgan Chase (JPM 76.65, +3.40, +4.6%) and Goldman Sachs (GS 200.87, +8.24, +4.3%) finished at the top of the price-weighted average.
In the industrial sector (+2.1%), aerospace and defense names outperformed as United Technologies (UTX 108.41, +3.60) gained 3.4%. Meanwhile, the Dow Jones Transportation Average finished higher by 1.9% amid strength in rail names. Union Pacific (UNP 97.49, +3.54) rallied 3.8% amid rising commodity prices and expectations for large-scale infrastructure projects.
Biotechnology names outperformed in the health care space (+1.2%), evidenced by the 1.7% gain in the iShares Nasdaq Biotechnology ETF (IBB 289.78, +4.79). The group saw continued buying interest, shrugging off recent concerns regarding potential drug pricing measures. On a related note, Dow component Pfizer (PFE 33.49, +1.37) gained 4.3%.
The Treasury complex finished on a mostly lower note with the long-end of the curve underperforming. The yield on the 2-yr note finished higher by one basis point (0.91%) while the yield on the benchmark 10-yr note rose eight basis points to 2.14%.
Today's trading volume was above the average of 914 million as more than 1.4 billion shares changed hands at the NYSE floor.
Today's economic data included weekly initial claims and the Treasury Budget for October:
Initial jobless claims produced a positive surprise as they decreased by 11,000 for the week ending November 5 to 254,000 (Briefing.com consensus 262,000).
Continuing claims for the week ending October 29 increased by 18,000 to 2.041 million.
The Treasury Budget statement for October showed a deficit of $44.2 billion.
The Treasury data is not seasonally adjusted so the October deficit cannot be compared to the $136.6 billion deficit in September.
Tomorrow's economic data will be limited to the initial reading of the University of Michigan Consumer Sentiment Index for November (Briefing.com consensus 87.9), which will be released at 10:00 ET. DJ30 +218.19 NASDAQ -42.28 SP500 +4.22 NASDAQ Adv/Vol/Dec 1786/2.147 bln/1141 NYSE Adv/Vol/Dec 1427/1.403 bln/1628
3:30 pm :
The dollar index tested October 25th highs earlier in the session, was +0.3% around the 98.81 level, weighed on gold futures
Commodities, as measured by the Bloomberg Commodity Index, were -0.1% around the 83.84
Crude oil gave up all of yesterday's post-election gains ahead of tomorrow's rig count data
December crude oil futures fell $0.57 (-1.3%) to $44.63/barrel
The next official OPEC meeting will take place in Vienna, Austria on November 30.
Baker Hughes rig count data will be released tomorrow at 1 pm ET.
Natural gas added onto its initial morning losses after EIA reported a larger-than-expected build compared to Consensus
December natural gas closed $0.06 lower (-2.2%) at $2.63/MMBtu
EIA highlights:
Natural gas inventory showed a build of +54 bcf vs expectations for inventory to be a build of approximately +53 bcf.
Working gas in storage was 4,017 Bcf as of Friday, November 4, 2016, according to EIA estimates.
Stocks were 47 Bcf higher than last year at this time and 189 Bcf above the five-year average of 3,828 Bcf.
At 4,017 Bcf, total working gas is above the five-year historical range.
In precious metals, gold extended yesterday's post-election losses on continued strength in the dollar index
December gold ended today's session down $6.90 (-0.5%) to $1266.60/oz
December silver closed today's session $0.35 higher (+1.9%) at $18.74/oz
Base metal copper closed near a 52-week high for the third session in a row
December copper closed $0.09 higher (+3.7%) at $2.55/lb
The markets came to a split close on Thursday, as the Dow Jones Industrial Average eclipsed the other two major indices, adding 218.19 points (+1.17%) to 18807.88. The S&P 500 managed slight gains, higher by 4.22 points (+0.20%) to 2167.48, and the Nasdaq Composite shed 42.28 points (-0.81%) to 5208.80. Top Nasdaq 100 components NFLX -5.5%, MDLZ -4.8%, MNST -4.2%, KHC -4.1% and AMZN -3.8% held the index at bay as gains were had in other areas.
Equity indices jumped out of the gate, looking to build on yesterday's strong performances. The major averages staged an impressive reversal on Wednesday, shrugging off unexpected results from the 2016 election cycle while assessing what a Trump administration may mean for capital markets. The benchmark index notched a high in the opening hour of today's session while the Dow Jones Industrial Average set a new all-time high in early afternoon action.
Economic data today included the initial jobless claims reading, which produced a positive surprise as they decreased by 11,000 for the week ending November 5 to 254,000. Also, the Treasury Budget statement for October showed a deficit of $44.2 billion.
Among S&P sectors today, the Financials sector (XLF 21.61, +0.77 +3.69%) outperformed and the Technology (XLK 46.59, -0.76 -1.61%) space showed weakness weakness as investors took money out of the tech space, opting instead to invest in more "Trump" favorable areas like defense. Component CSRA (CSRA 29.96, +2.57 +9.38%) reported better than expected Q2 EPS and revenues, sending the stock higher. Other sectors as measured by the S&P closed the session XLF +3.74%, XLFS +3.65%, XLI +2.13%, XLV +1.23%, XLB +1.16%, XLE +0.43%, XLY +0.37%, XLRE -1.50%, IYZ -2.25%, XLU -2.41%, XLP -2.67%.
In the S&P 500 Information Technology (784.97, -12.70 -1.59%) sector, trading finished off lows,, but firmly below flat lines. Component NVIDIA (NVDA 67.77, -2.19 -3.13%) was weaker ahead of its quarterly print, and component Microsoft (MSFT 58.70, -1.47 -2.44%) saw an equally tepid session after the company's LinkedIn (LNKD 191.00, -0.01 -0.01%) deal was cleared by the South Africa commission, and the stock was upgraded premarket at Atlantic Equities to a Neutral rating. Other names in the space which closed lower today included ATVI -3.61%, ADBE -3.50%, EA -3.34%, AMAT -3.26%, AVGO -3.16%, GOOGL -3.14%, CRM -2.99%, MCHP -2.91%, GOOG -2.90%, AAPL -2.81%.
Other notable news items among sector components:
In addition to reporting quarterly results, TubeMogul (TUBE 13.94, +6.27 +81.75%) agreed to be acquired by Adobe (ADBE 104.08, -3.78 -3.50%) for $14 per share in cash, or about $540 million.
Yahoo! (YHOO 40.16, -1.05 -2.55%) provided an update in 10-Q regarding the security incident disclosed in Sep; has incurred expenses related to the Security Incident in Q4.
Xerox (XRX 9.58, +0.07 +0.74%) announced the effectiveness of Conduent Form 10 registration statement; Separation on track to complete on December 31, 2016.
LinkedIn (LNKD) and Microsoft's (MSFT) M&A deal was approved by South Africa commission.
Orange`s (ORAN 14.84, -0.44 -2.88%) mobile wallet app Orange Cash, supported by the German mobile payment expert Wirecard (WRCDF 45.48, -2.16 -4.55%), now supports Apple (AAPL 107.76, -3.12 -2.81%) Pay in France.
Hewlett Packard Enterprise (HPE 23.07, -0.16 -0.69%) increased its quarterly dividend to $0.065 per share from $0.055 per share.
IBM Watson Health (IBM 160.22, +5.41 +3.49%) and the Broad Institute of MIT and Harvard today announced a research initiative aimed at discovering the basis of cancer drug resistance. The five year, $50 million project will study thousands of drug resistant tumors and draw on Watson's computational and machine learning methods to help researchers understand how cancers become resistant to therapies.
GlobalSCAPE (GSB 3.68, +0.04 +1.10%) joined the Hewlett Packard Enterprise (HPE) Partner Ready for OEM program. The agreement will allow the two companies to work together to provide solutions and resources to address organizations' struggle to manage and secure data at rest or in motion. This includes adding Globalscape's flagship managed file transfer platform Enhanced File TransferTM (EFTTM) to HPE servers, which will be bundled up and sold as a solution.
Elsewhere in the tech space:
Twitter (TWTR 18.37, -0.76 -3.97%) announced that Adam Bain will step down as COO and explore opportunities outside the company. Anthony Noto who has served as the Company's Chief Financial Officer since July, 2014, has been named COO. As COO he will continue to manage the live content business, and assume responsibility for Twitter's revenue generating organizations including global advertising sales, data, revenue product, and MoPub, as well as global partnerships and business development, effective immediately. Bain will assist with the transition of the COO role over the coming weeks.
Speculation in midday trade that FitBit (FIT 8.86, +0.31 +3.63%) received an offer from private equity firm ABM Capital took shares higher, but action calmed down in the afternoon after the company released a statement refuting such a proposal.
In addition to reporting quarterly results, QuinStreet (QNST 2.78, -0.59 -17.51%) announced a stock buyback program and corporate resutucturing. As such, the company expects the restructuring will reduce fixed costs by about $17 million annually, including a reduction in personnel costs of about 25%. Also, QNST expects to incur a one-time restructuring charge in the range of $2.5 million to $3.5 million in the December quarter related to the restructuring.
Digital Ally (DGLY 5.15, +0.25 +5.10%) received a contract to provide up to 1,025 FirstVU HD body cameras and related cloud storage services to a non-law enforcement customer.
Remark Media (MARK 4.25, +0.21 +5.33%) entered into a $20 million common stock purchase agreement with Aspire Capital Fund.
TriNet Group (TNET 21.37, +0.64 +3.09%) announced a $50 million incremental increase to its ongoing stock repurchase program.
In reaction to quarterly results:
Netease.com (NTES 228.62, -23.24 -9.23%) reported better than expected Q3 EPS of $3.42 per ADS on worse than expected revenues which still rose 31.6% to $1.38 billion.
CSRA (CSRA) reported better than expected Q2 EPS and revenues of $0.56 and $1.26 billion, respectively. For FY17, the company reaffirmed its EPS and revenue guidance of $1.91-2.04 and $5.00-5.20 billion, respectively.
MAXIMUS (MMS 49.12, +3.91 +8.66%) reported better than expected Q4 EPS and revenues of $0.77 and $623.09 million, respectively. For FY17, the company sees EPS in-line at $2.90-3.10 on worse than expected revenues of $2.475-2.55 billion.
Wix.com (WIX 47.85, +5.25 +12.32%) reported a better than expected Q3 loss per share of $0.04 on better than expected revenues of $75.4 million. For Q4, the company sees better than expected revenues of $81-82 million.
TubeMogul (TUBE) reported a worse than expected Q3 loss per share of $0.34 on better than expected revenues which rose 20.7% compared to last year to $56.08 million. For Q4, the company sees revenues of $66-68 million and for FY16, the company sees revenues of $220-222 million.
Rapid7 (RPD 11.70, -2.53 -17.78%) reported a better than expected Q3 loss per share of $0.13 on better than expected revenues of $40.3 million. For Q4, the company sees EPS of ($0.26)-($0.28) on revenues of $42.2-43.6 million.
CPI Card Group (PMTS 3.70, -1.35 -26.73%) reported worse than expected Q3 EPS and revenues of $0.11 and $81.2 million, respectively. For FY16, the company now sees EPS of $0.24-0.26 from $0.50-0.53, and revenues of $300-305 million, from $335-345 million.
QuinStreet (QNST) reported worse than expected Q1 EPS and revenues of $0.01 and %73.43 million, respectively. For FY17, the company sees revenue growth of flat to up low single digits.
Companies scheduled to report tonight: ACIA AIRG DTRM LXFT MXPT MSCC NVDA TLND TTD UNXL UPLD
Analyst actions:
PCLN and EXPE were upgraded at Stifel,
IBM was upgraded to Buy from Neutral at BofA/Merrill,
MSFT was upgraded to Neutral from Underweight at Atlantic Equities;
QCOM was downgraded to Equal Weight from Overweight at Morgan Stanley,
VSLR and SEDG were downgraded to Mkt Perform at JMP Securities,
SEDG was downgraded to Mkt Perform at FBR & Co. and to Neutral from Buy at Roth Capital,
GIB was downgraded to Hold from Buy at Societe Generale,
WK was downgraded to Neutral from Outperform at Credit Suisse,
PMTS was downgraded to Sector Underperform from Sector Perform at CIBC,
EGAN was downgraded to Neutral from Buy at Ladenburg Thalmann,
YUME was downgraded to Underperform from Neutral at Boenning & Scattergood,
AVID was downgraded to Hold at BWS Financial,
TUBE was downgraded to Neutral at Piper Jaffray;
CTS was initiated with a Buy at B. Riley & Co.
