From Briefing.com:
4:22 pm Micron: Industry Breakdown from Presentation (MU) :
DRAM Guidance
Expect 2017 supply bit growth in the 15%-20% range.
Assumes suppliers won't add significant wafer capacity.
Longer-term, expect bit demand growth of approximately 20%-25%.
NAND Guidance
Expect 2017 supply bit growth in the high 30% to low 40% range.
Assumes impact of 3D NAND conversions.
Longer-term, expect bit demand growth of approximately 40%-45%.
Expect to ship 3D XPointTM technology for revenue in 2017.
DRAM (61% of Q1 revenue)
Mobile represented approximately 30%.
PC segment was in the mid-20s % range.
Server business was in the high-teens % range.
Specialty DRAM, which includes networking, graphics, automotive and other embedded technologies, was in the mid-20s % range.
NAND (32% of Q1 revs)
Consumer, which includes memory cards, USB and components, represented 40%.
Mobile was in the low-20s %.
SSDs were in the mid-teens %.
Automotive and Industrial Multi-Market Segment and other embedded applications were in the 20% range.
Storage Business Unit
Revenue up 13% Q/Q.
Continued to strengthen NAND and SSD product portfolios.
Now in fully-ramped production and customer qualification for 3D NAND TLC client and cloud drives.
Embedded Business Unit
Revenue up 13% Q/Q driven by seasonal strength
Consumer revenue driven by home automation and camera
Saw continued strength and increasing demand in Automotive
Mobile Business Unit
Revenue up 54% Q/Q driven by customer qualifications.
Saw strong sales of LPDRAM and Mobile NAND products.
Improved profitability from continued 20nm ramp and reduced higher-cost early production inventory.
Computer and Networking Business Unit
Revenue up 18% Q/Q due to strong demand and 20nm shipments.
Saw additional Cloud growth and qualifications for top customers.
Graphics demand fueled by GPU launches and strong console sales.
4:10 pm Micron sees Q2 revenues in the ragne of $4.35-4.70 bln, Capital IQ consensus $4.026 bln; Sees EPS in the range of $0.58-0.68, Capital IQ consensus $0.43 (MU) :
Gross Margin in the range of 31-34%.
Operating Expense $590-640 mln.
Operating Income $800-900 mln.
4:04 pm Micron beats by $0.03, reports revs in-line (MU) :
Reports Q1 (Nov) earnings of $0.32 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.29; revenues rose 18.5% year/year to $3.97 bln vs the $3.94 bln Capital IQ Consensus.
The increase in the company's revenues of 23 percent for the first quarter of fiscal 2017 compared to the fourth quarter of fiscal 2016 was due primarily to 18 percent and 26 percent increases in DRAM and trade NAND sales volumes, respectively, and a 5 percent increase in DRAM average selling prices.
The company's overall consolidated GAAP gross margin of 25 percent for the first quarter of fiscal 2017 was 7 percentage points higher compared to the fourth quarter of fiscal 2016 primarily due to manufacturing cost reductions and increases in DRAM average selling prices.
4:10 pm CalAmp misses by $0.05, reports revs in-line; guides Q4 in-line; CFO retires (CAMP) :
Reports Q3 (Nov) earnings of $0.21 per share, excluding non-recurring items, $0.05 worse than the Capital IQ Consensus of $0.26; revenues rose 11.6% year/year to $83.4 mln vs the $83.94 mln Capital IQ Consensus. The latest quarter included revenue of $29.9 million from LoJack products and services that was slightly lower than expected, as anticipated orders from two large international licensees were received late in the quarter and could not be fulfilled until early in Q4... Q3 earnings were impacted by higher legal expense of approximately $1.6 million over the comparable period last year and foreign currency exchange rate losses of $0.6 million.
Revenue from international customers reached a record of 28.5% of consolidated quarterly revenues.
MRM telematics product sales reached the highest level of the past four quarters with fleet and connected car device revenue at record levels. SaaS revenue grew 6% sequentially, driven by solid fleet subscriber growth and outstanding performance from LoJack Italy.
Co issues in-line guidance for Q4, sees EPS of $0.25-0.31, excluding non-recurring items, vs. $0.26 Capital IQ Consensus; sees Q4 revs of $84-89 mln vs. $85.69 mln Capital IQ Consensus.
The co announced that its Executive Vice President, Chief Financial Officer and Corporate Secretary, Rick Vitelle, plans to retire from the company after sixteen years of service. Mr. Vitelle will remain with the company until his successor is recruited and fully on-boarded, to ensure an orderly and seamless transition.
4:10 pm : The stock market endured a quiet pre-holiday session that was confined to negative territory. The S&P 500 shed 0.3% while small caps underperformed, leading to a 0.7% retreat in the Russell 2000.
All in all, the Wednesday affair had all the hallmarks of pre-holiday trade as the S&P 500 spent the day in a six-point range. which widened into the close. Intraday NYSE floor volume was below average, but a spike in activity during the final minutes brought the total up to 850 million shares, shy of the 200-day average (933 million). A handful of heavily-weighted sectors spent the day in negative territory, which offset gains in smaller groups and prevented the market from turning positive.
Cyclical sectors like technology (-0.2%), financials (-0.2%), and industrials (-0.4%) spent the day in negative territory while the health care sector (-0.6%) retreated into the afternoon. Biotechnology contributed to the weakness in the health care sector, sending the iShares Nasdaq Biotechnology ETF (IBB 267.85, -3.07) lower by 1.1%.
The top-weighted technology sector was restrained by a mixed showing from large cap names. Accenture (ACN 117.90, -6.20) lost 5.0% after missing estimates and lowering its full-year guidance. Chipmakers had a better showing than the broader sector, as the PHLX Semiconductor Index settled just above its flat line.
For its part, the industrial sector (-0.4%) struggled throughout the day after FedEx (FDX 192.12, -6.62) reported disappointing results. The stock lost 3.3% while the broader Dow Jones Transportation Average surrendered 0.9%.
Staying on the earnings front, Nike (NKE 52.30, +0.51) added 1.0% after reporting above-consensus results. Other apparel names did not follow Nike higher, likely due to some caution related to weak results and guidance from Finish Line (FINL 21.00, -2.01), which surrendered 8.7%. Homebuilders outperformed, helping the consumer discretionary sector (-0.1%) stay near its flat line. The iShares Dow Jones US Home Construction ETF (ITB 28.28, +0.18) gained 0.7%.
Two other cyclical groups-energy (+0.2%) and materials (+0.1%)-spent the day atop the leaderboard, with energy advancing despite a 1.3% slide in crude oil to $52.55/bbl. The energy component retreated after the release of bearish inventory data from the Department of Energy.
Treasuries spent the day inside narrow ranges, climbing into the afternoon. The 10-yr yield slipped two basis points to 2.54%.
Also of note, the U.S. Dollar Index (103.00, -0.26) pulled back from a fresh 13-year high, giving up ground to the euro (1.0426) and the yen (117.50). The euro backed off its intraday high of 1.4050 after the Financial Times reported that Italy's Banca Monte dei Paschi di Siena is expected to be nationalized as part of a newly-approved EUR20 billion bank rescue fund after failing to attract private investors.
Today's economic data was limited to November Existing Home Sales, which increased 0.7% from October to an annualized rate of 5.61 million units while the Briefing.com consensus expected a reading of 5.50 million.
Tomorrow will be busy on the data front with weekly initial claims (Briefing.com consensus 256,000), the third estimate of Q3 GDP (Briefing.com consensus 3.3%), and November Durable Orders (Briefing.com consensus -4.5%) set to be released at 8:30 ET. The October FHFA Housing Price Index will be released at 9:00 ET while November Leading Indicators (Briefing.com consensus 0.1%), November Personal Income (Briefing.com consensus 0.3%), Personal Spending (Briefing.com consensus 0.4%), and core PCE Prices (Briefing.com consensus 0.1%) will be reported at 10:00 ET.
Russell 2000 +21.1% YTD
Dow Jones Industrial Average +14.4% YTD
S&P 500 +10.8% YTD
Nasdaq Composite +9.3% YTD
DJ30 -32.66 NASDAQ -12.51 SP500 -5.58 NASDAQ Adv/Vol/Dec 1110/1.36 bln/1830 NYSE Adv/Vol/Dec 1390/849.9 mln/1564
3:30 pm :
Crude oil reversed initial post-API morning gains after EIA reported a surprise build vs. expectations for a draw, ended at its lowest level of the session
Feb 2017 crude oil futures fell $0.69 (-1.3%) to $52.55/barrel
EIA highlights:
Crude oil inventories had a build of +2.3 mln barrels (consensus called for a draw of -2.52 mln barrels)
Gasoline inventories had a draw of -1.3 mln barrels (consensus called for a build of +1.42 mln barrels)
Distillate inventories had a draw of -2.4 mln barrels
Natural gas rallied off of its 2-week low as preliminary expectations call for a notable draw in tomorrow's EIA inventory data
Jan 2017 natural gas closed $0.28 higher (+8.6%) at $3.54/MMBtu
Weekly EIA natural gas inventory data will be released tomorrow at 10:30 am ET.
Consensus calls for a draw of about 204 bln cubic ft, vs last week's draw of 147 bln cubic ft. If realized, this would be the largest single draw for natural gas inventory in nearly 7 years.
In precious metals, silver closed near yesterday morning's 8-month low, gold ended nearly flat despite a decline in the dollar index
Feb 2017 gold ended today's session down $0.10 (-0.1%) to $1133.30/oz
Mar 2017 silver closed today's session $0.13 lower (-0.8%) at $15.98/oz
The dollar index was -0.3% around the 103.00 level, just below a recent 14-year high, decline did not appear to support precious metals
Commodities, as measured by the Bloomberg Commodity Index, were +0.3% around the 86.40 level
After starting the week with back to back winning sessions, the broader market turned decidedly negative. Flirting with flat lines for the middle part of the session, the S&P 500 ultimately ended down 5.58 points (-0.25%) to 2265.18. The Nasdaq Composite shed 12.51 points (-0.23%) to 5471.43, while the Dow Jones Industrial Average lost about 32.66 points (-0.16%) to 19941.96.
All in all, the Wednesday affair had all the hallmarks of pre-holiday trade as the S&P 500 spent the day in a six-point range which widened into the close. Intraday NYSE floor volume was below average, but a spike in activity during the final minutes brought the total up to 850 million shares, shy of the 200-day average (933 million). A handful of heavily-weighted sectors spent the day in negative territory, which offset gains in smaller groups and prevented the market from turning positive.
Also of note, the U.S. Dollar Index (103.00, -0.26) pulled back from a fresh 13-year high, giving up ground to the euro (1.0426) and the yen (117.50). The euro backed off its intraday high of 1.4050 after the Financial Times reported that Italy's Banca Monte dei Paschi di Siena is expected to be nationalized as part of a newly-approved EUR20 billion bank rescue fund after failing to attract private investors.
Today's economic data was limited to November Existing Home Sales, which increased 0.7% from October to an annualized rate of 5.61 million units.
The Technology (XLK 49.02, -0.10 -0.20%) space also came off Monday and Tuesday strength as action turned lower initially and never came back. Component Accenture (ACN 117.90, -6.20 -5.00%) was weaker today after a worse than expected Q1 earnings report from this morning. Other sectors as measured by the S&P closed Wednesday XLE +0.16%, XLB +0.04%, XLP -0.02%, XLY -0.05%, XLF -0.21%, XLI -0.38%, XLU -0.41%, XLV -0.56%, IYZ -0.74%, XLRE -1.27%.
In the S&P 500 Information Technology (821.78, -1.47 -0.18%) space, trading held above the $800 level despite a soft session out of the broader market. Component Apple (AAPL 117.06, +0.11 +0.09%) finished higher despite news out intraday of a lawsuit by Nokia (NOK 4.76, -0.14 -2.86%) in Europe and the United States alleging infringement of NOK patents. Other names in the space which closed lower today included FSLR -3.68%, VRSN -1.84%, XRX -1.52%, CA -1.37%, AKAM -1.21%, NTAP -1.17%, TDC -0.91%, PAYX -0.87%, CSRA -0.84%, GPN -0.77%, INTC -0.62%, TSS -0.59%.
Other notable news items in the tech space:
Nokia (NOK) sued Apple (AAPL) in Europe and the US for infringement of Nokia patents.
Motorola Solutions (MSI 83.99, +0.23 +0.27%) shares were active after company was granted patent for 'method, device, and system for operating a multi-function voice-collaboration device to manage battery life.'
Microsoft (MSFT 63.54, flat) was awarded a $927 million Defense Information Systems Agency contract.
GoPro's (GPRO 8.90, flat) Board approved an increase of about $7 million to its estimated total aggregate restructuring charges.
EU Commission cleared acquisition of Yahoo! (YHOO 39.15, -0.01 -0.03%) by Verizon (VZ 52.98, -0.14 -0.26%).
Twitter's (TWTR 17.08, -0.84 -4.69%) CTO Adam Messinger to leave the company.
TDK Corporation (TTDKY 70.07, -1.52 -2.12%) to acquire InvenSense (INVN 12.75, +1.91 +17.62%) for $13.00 per share in cash.
xG Technology (XGTI 1.60, -2.02 -55.80%) priced about $10 million offering of Class A and Class B units.
Corning (GLW 24.83, +0.24 +0.98%) acquired STRAN Technologies. Financial terms of the deal were not disclosed.
Agilent (A 46.04, -0.17 -0.37%) will acquire Multiplicom for about EUR68 million in cash.
InterNAP (INAP 1.62, +0.49 +43.36%) reaffirmed 2016 revenues guidance at $297-300 million and sees 2017 revenue of $275-285 million.
CSRA (CSRA 32.00, -0.27 -0.84%) received a $744 million task order to deliver mission-essential logistics for the U.S. Army.
Spok (SPOK 21.25, flat) announced a special cash dividend of $0.25 per share.
Gogo (GOGO 9.92, -0.30 -2.94%) priced $65 million private offering of additional 12.500% senior secured notes due 2022.
Pandora Media's (P 13.28, -0.13 -0.97%) Chief Operating Officer Sara Clemens resigned.
In reaction to quarterly results:
Accenture (ACN) reported worse than expected Q1 EPS of $1.40 on revenues which rose 6.3% compared to last year to $8.52 billion. For Q2, the company sees revenues below market expectations at $8.15-8.40 billion. For FY17, ACN lowered EPS guidance to $5.64-5.87 from $5.75-5.98, and sees revenues of +3-6% to about $33.87-34.86 billion.
Paychex (PAYX 61.39, -0.54 -0.87%) reported in-line Q2 EPS and revenues of $0.56 and $771 million, respectively.
Analyst actions:
MU was upgraded to Buy from Sell at Summit Redstone; INVN was downgraded to Neutral from Buy at Roth Capital; GOOG was initiated with a Buy at Aegis Capital, NXPI and QCOM were initiated with Neutral ratings at Citigroup, TXN, QCOM, MCHP, MXL, CRUS and IDTI were initiated with Positive ratings at Susquehanna, XLNX and MBLY were initiated with Neutral ratings at Susquehanna, GLW was initiated with a Market Perform at Wells Fargo, KEYW was initiated with a Neutral at Seaport Global Securities, GIMO was initiated with a Buy at Dougherty
