From Briefing.com: 4:47 pm Texas Instruments prices $300 million of 2.750% senior unsecured notes due March 12, 2021 and $300 million of 2.625% senior unsecured notes due May 15, 2024 (TXN)
4:31 pm KLA-Tencor beats by $0.07, beats on revs (KLAC) :
Reports Q3 (Mar) earnings of $1.62 per share, $0.07 better than the Capital IQ Consensus of $1.55; revenues rose 28.4% year/year to $914 mln vs the $895.69 mln Capital IQ Consensus.
4:25 pm Brooks Automation beats by $0.03, beats on revs; guides Q3 EPS above consensus, revs above consensus (BRKS) :
Reports Q2 (Mar) earnings of $0.28 per share, $0.03 better than the Capital IQ Consensus of $0.25; revenues rose 25.1% year/year to $169.3 mln vs the $167.16 mln Capital IQ Consensus.
Revenue grew 25% year over year, 6% sequentially, driven by continued strength in both segments. Life Sciences revenue grew 31% year over year and is more than 20% of total revenue despite strong
Semiconductor growth, up 24% over the 2016 second quarter.
Co issues upside guidance for Q3, sees EPS of $0.29-0.33 vs. $0.26 Capital IQ Consensus Estimate; sees Q3 revs of $175-180 mln vs. $167.23 mln Capital IQ Consensus Estimate.
4:22 pm Flex reports EPS in-line, beats on revs; guides Q1 EPS below consensus, revs in-line (FLEX) :
Reports Q4 (Mar) earnings of $0.29 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.29; revenues rose 1.6% year/year to $5.86 bln vs the $5.68 bln Capital IQ Consensus.
Co issues guidance for Q1, sees EPS of $0.24-0.28, excluding non-recurring items, vs. $0.30 Capital IQ Consensus Estimate; sees Q1 revs of $5.7-6.1 bln vs. $5.79 bln Capital IQ Consensus Estimate.
4:22 pm Closing Market Summary: Major Averages Eke Out Win on Thursday (:WRAPX) :
Up to their eyeballs in earnings reports, investors decided to play it safe on Thursday, not wanting to get ahead of themselves before the next heavy batch arrived. The Nasdaq (+0.4%) outperformed while the S&P 500 (+0.1%) and the Dow (unch) ended little changed.
Nearly 300 companies released their quarterly results between Wednesday's close and Thursday's open. The reports had a minor impact at the macro level, but they did have some sway in the sector standings. For instance, the consumer discretionary space (+0.6%) finished near the top of the day's leaderboard, thanks in part to Comcast's (CMCSA 39.59, +0.80) advance. CMCSA jumped 2.1% after beating top and bottom line estimates. Under Armour (UAA 21.67, +1.96) also contributed to the cause, spiking 9.9%, on better than expected earnings.
The top-weighted technology sector (+0.6%) also outperformed the broader market after PayPal (PYPL 47.15, +2.74) climbed 6.2% in reaction to above-consensus earnings/revenues and upbeat guidance. Chipmakers also had a good showing, evidenced by the 1.4% increase in the PHLX Semiconductor Index.
Meanwhile, in the health care sector (+0.3%), Bristol-Myers Squibb (BMY 55.67, +1.90) added 3.5% on better than expected earnings/revenues and positive guidance. The lightly-weighted utilities (+0.3%) and real estate (+0.1%) sectors also finished in the green.
Outside of earnings, crude oil made for another focal point on Thursday. The commodity settled with a loss of 1.2% following Wednesday's inventory report from the Energy Information Administration, which showed an increase in gasoline inventories for the week ending April 21. In addition, crude oil battled technical forces on Thursday, moving below its 200-day simple moving average ($49.00/bbl). As a result, the energy sector (1.1%) settled near the bottom of the sector standings.
The telecom services (-1.3%) and financials (-0.5%) spaces also showed relative weakness. However, the financial sector's underperformance wasn't all that surprising in light of the sector's big week-to-date gain entering Thursday's session (+3.1%). The remaining groups--industrials (unch), materials (-0.2%), and consumer staples (-0.2%)--also finished in the red, but their losses were modest.
In the Treasury market, U.S. sovereign debt settled slightly higher with the benchmark 10-yr yield (2.30%) losing one basis point. Meanwhile, the U.S. dollar added 0.3% and 0.1%, respectively, against the euro (1.0874) and Japanese yen (111.22) after both the Bank of Japan and the European Central Bank decided to leave their monetary policies unchanged.
In addition to earnings reports, investors received a number of economic reports on Thursday, including March Durable Orders, Initial Claims, Advance International Trade in Goods, and March Pending Home Sales:
March durable goods orders rose 0.7%, which is below the 1.2% increase expected by the Briefing.com consensus. The prior month's reading was revised to 2.3% (from 1.7%). Excluding transportation, durable orders decreased 0.2% (Briefing.com consensus 0.4%) to follow the prior month's revised uptick of 0.7% (from 0.4%).The key takeaway from the report is that business spending is still relatively soft, up 2.1% year-over-year.The latest weekly initial jobless claims count totaled 257,000 while the Briefing.com consensus expected a reading of 242,000. Today's tally was above the revised prior week count of 243,000 (from 244,000). As for continuing claims, they rose to 1.988 million from the revised count of 1.978 million (from 1.979 million).The key takeaway from the report is that initial claims continue to run at very low levels consistent with a tight labor market.The Advance report for International Trade in Goods for March showed a deficit of $64.8 billion (Briefing.com consensus -$65.0 billion), up from a revised deficit of $63.9 billion for February (from -$64.8 billion).Pending Home Sales for March declined 0.8%. Today's reading follows a revised 5.6% increase in February (from 5.5%).On Friday, investors will receive another sizable batch of economic reports, including the advance estimate of first quarter GDP (Briefing.com consensus 1.1%) at 8:30 ET, April Chicago PMI (Briefing.com consensus 56.9) at 9:45 ET, and the final reading of the University of Michigan Consumer Sentiment Index for April (Briefing.com consensus 98.0) at 10:00 ET.
Nasdaq Composite +12.4% YTD
S&P 500 +6.7% YTD
Dow Jones Industrial Average +6.2% YTD
Russell 2000 +4.4% YTD
4:21 pm Amkor misses by $0.02, beats on revs; guides Q2 EPS in-line, revs in-line (AMKR) :
Reports Q1 (Mar) loss of $0.04 per share, $0.02 worse than the Capital IQ Consensus of ($0.02); revenues rose 5.2% year/year to $914 mln vs the $902.06 mln two analyst estimate.
Co issues in-line guidance for Q2, sees EPS of $0.03-0.19 vs. $0.07 two analyst estimate; sees Q2 revs of $955-1,035 mln vs. $978.79 mln two analyst estimate.
4:21 pm Super Micro Computer reports EPS in-line, beats on revs; guides Q4 EPS above consensus, revs above consensus (SMCI) :
Reports Q3 (Mar) earnings of $0.38 per share, in-line with the Capital IQ Consensus of $0.38; revenues rose 18.5% year/year to $631.12 mln vs the $599.02 mln Capital IQ Consensus.No customer accounted for more than 10% of net sales during the quarter ended March 31, 2017. Gross margin for the third quarter was 14.0% compared to 14.9% in the same period a year ago.
Co issues upside guidance for Q4, sees EPS of $0.40 - $0.50 vs. $0.44 Capital IQ Consensus Estimate; sees Q4 revs of $655 mln - $715 mln vs. $637.25 mln Capital IQ Consensus Estimate.
4:20 pm Skyworks beats by $0.05, beats on revs; guides JunQ EPS above consensus, revs above consensus (SWKS) :
Reports Q2 (Mar) earnings of $1.45 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $1.40 and above prior guidance of approx $1.40; revenues rose 9.9% year/year to $851.7 mln vs the $840.4 mln Capital IQ Consensus and vs prior guidance of approx $840 mln.
Co issues upside guidance for Q3 (Jun), sees EPS of approx $1.52, excluding non-recurring items, vs. $1.49 Capital IQ Consensus Estimate; sees Q3 revs of approx $890 mln vs. $869.1 mln Capital IQ Consensus Estimate.
"Skyworks exceeded financial expectations in [MarQ] driven by insatiable demand for high-speed, reliable, always-on connectivity spanning Mobile and Internet of Things ecosystems...We are capitalizing on these powerful macrotrends, pushing the technology envelope and extending our product reach to enable the world's most exciting communications platforms."
4:17 pm Pixelworks reports EPS in-line, revs in-line; guides Q2 revs above consensus (PXLW) :
Reports Q1 (Mar) earnings of $0.12 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.12; revenues rose 102.7% year/year to $22.7 mln vs the $22.49 mln Capital IQ Consensus. On a non-GAAP basis, first quarter 2017 gross profit margin was 54.8%, compared to 53.6% in the fourth quarter of 2016 and 48.0% in the first quarter of 2016.
Co issues upside guidance for Q2, sees Q2 revs of $20-21 mln vs. $19.43 mln Capital IQ Consensus Estimate; Co sees Q2 Gross profit margin of approximately 53% to 55% on both a GAAP basis and non-GAAP basis
4:15 pm Microsoft beats by $0.03, reports revs in-line (MSFT) :
Reports Q3 (Mar) earnings of $0.73 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.70; revenues rose 6.3% year/year to $23.56 bln vs the $23.62 bln Capital IQ Consensus. Commercial cloud annual run rate is above $15.2 bln.
Revenue in Productivity and Business Processes was $8.0 billion and increased 22% (up 23% in constant currency), with the following business highlights:
Office commercial products and cloud services revenue increased 7% (up 8% in constant currency) driven by Office 365 commercial revenue growth of 45% (up 45% in constant currency)
Office consumer products and cloud services revenue increased 15% (up 14% in constant currency) and Office 365 consumer subscribers increased to 26.2 million
Dynamics products and cloud services revenue increased 10% (up 11% in constant currency) driven by Dynamics 365 revenue growth of 81% (up 82% in constant currency)
LinkedIn contributed revenue of $975 million
Revenue in Intelligent Cloud was $6.8 billion and increased 11% (up 12% in constant currency), with the following business highlights:
Server products and cloud services revenue increased 15% (up 16% in constant currency) driven by Azure revenue growth of 93% (up 94% in constant currency)
Enterprise Services revenue decreased 1% (unchanged in constant currency) with declines in custom support agreements offset by growth in Premier Support Services and consulting
Revenue in More Personal Computing was $8.8 billion and decreased 7% (down 7% in constant currency) driven primarily by lower phone revenue, with the following business highlights:
Windows OEM revenue increased 5% (up 5% in constant currency)
Windows commercial products and cloud services revenue increased 6% (up 6% in constant currency)
Surface revenue decreased 26% (down 25% in constant currency)
Search advertising revenue excluding traffic acquisition costs increased 8% (up 9% in constant currency)
Gaming revenue increased 4% (up 6% in constant currency)
Will guide on the call
4:15 pm Western Digital beats by $0.25, beats on revs (WDC) :
Reports Q3 (Mar) earnings of $2.39 per share, $0.25 better than the Capital IQ Consensus of $2.14; revenues rose 64.7% year/year to $4.65 bln vs the $4.57 bln Capital IQ Consensus.
"We reported strong financial performance in the March quarter, enabled by excellent operational execution by our team in a healthy market environment with good demand for all NAND based products, as well as for capacity enterprise and client hard drives," said Steve Milligan, chief executive officer. "We also achieved targeted cost and efficiency improvements and improved our liquidity position with strong cash flow generation.
"With three consecutive quarters of strong financial results since completing the SanDisk acquisition, we are seeing continued validation of our growth strategy and our ongoing transformation into a comprehensive provider of diversified storage products and technologies. We have constructed a powerful platform with the broadest set of products, enabling us to be a leader in the storage industry. Our transformation provides us with the opportunity to not only compete in today's marketplace but also to be positioned to grow and thrive into the future."
4:12 pm Cypress Semi beats by $0.02, beats on revs; guides Q2 EPS in-line, revs above consensus (CY) :
Reports Q1 (Mar) adj. earnings of $0.13 per share, $0.02 better than the Capital IQ Consensus of $0.11; rev +1% Q/Q to $532 mln vs. $511 mln consensus.
Co issues guidance for Q2, sees EPS of $0.14-0.18, excluding non-recurring items, vs. $0.16 Capital IQ Consensus Estimate; sees Q2 revs of $530-560 mln vs. $533.87 mln Capital IQ Consensus Estimate.
4:10 pm Intel beats by $0.01, reports revs in-line; guides Q2 EPS in-line, revs in-line; raises FY17 guidance (INTC) :
Reports Q1 (Mar) earnings of $0.66 per share, $0.01 better than the Capital IQ Consensus of $0.65; revenues rose 8.0% year/year to $14.8 bln vs the $14.8 bln Capital IQ Consensus.
Co issues guidance for Q2, sees EPS of $0.63-0.73 vs. $0.64 Capital IQ Consensus Estimate; sees Q2 revs of $13.9-14.9 bln vs. $14.34 bln Capital IQ Consensus Estimate. Sees gross margin of 63% +/- a couple pct. pts.
Co raises guidance for FY17, sees EPS of $2.71-2.99 vs. $2.80 Capital IQ Consensus Estimate; sees FY17 revs of approx $60 bln vs. $59.93 bln Capital IQ Consensus Estimate. Sees grs margin of 63% +/- a couple pct. pts. Full-year outlook for revenue was raised $500 million and EPS was raised by 5 cents to $2.85
"The ASP strength we saw across nearly every segment of the business demonstrates continued demand for high-performance computing, which will only increase with the explosion of data."
4:06 pm Power Integrations beats by $0.02, beats on revs; guides Q2 revs in-line (POWI) :
Reports Q1 (Mar) earnings of $0.63 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.61; revenues rose 18.9% year/year to $104.7 mln vs the $102.21 mln Capital IQ Consensus.
Co issues in-line guidance for Q2, sees Q2 revs of $107 mln plus or minus 3 mln vs. $105.96 mln Capital IQ Consensus Estimate.
GAAP gross margin is expected to be between 48.8 percent and 49.3 percent; non-GAAP gross margin is expected to be between 50 percent and 50.5 percent. (The difference between the expected GAAP and non-GAAP gross margins is composed of approximately 0.9 percentage points from amortization of acquisition-related intangible assets and 0.3 percentage points from stock-based compensation.)
GAAP operating expenses are expected to be approximately $39 million; non-GAAP operating expenses are expected to be approximately $33.5 million. (Non-GAAP expenses are expected to exclude approximately $5 million of stock-based compensation expenses and $0.5 million of amortization of acquisition-related intangible assets.)
Commented Balu Balakrishnan, president and CEO of Power Integrations: "We are off to a strong start in 2017 with 19 percent revenue growth in the first quarter. Our growth is being fueled by innovative products such as our InnoSwitch ICs, and by multi-year secular trends such as energy-efficiency, faster charging for mobile devices, smarter homes and appliances, LED lighting, renewable energy, and the growing use of battery power in transportation, power tools and other applications. We also have a robust pipeline of new products coming to market over the next several quarters, which we believe will further enhance our competitive positioning and expand our addressable market."
4:04 pm Microsemi reports EPS in-line, revs in-line; guides Q3 EPS in-line, revs in-line (MSCC) :
Reports Q2 (Mar) earnings of $0.91 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.91; revenues fell 0.3% year/year to $442.9 mln vs the $439.79 mln Capital IQ Consensus.
Co issues in-line guidance for Q3, sees EPS of $0.94-1.04, excluding non-recurring items, vs. $0.97 Capital IQ Consensus Estimate; sees Q3 revs of $448-468 mln vs. $455.27 mln Capital IQ Consensus Estimate.
Non-GAAP gross margin for the second quarter of 2017 was a record 64.1 percent, up 310 basis points from the 61.0 percent in the second quarter of 2016 and up 60 basis points from the 63.5 percent reported in the first quarter of 2017.
4:01 pm Cohu reports EPS in-line, beats on revs; guides Q2 revs in-line (COHU) :
Reports Q1 (Mar) earnings of $0.24 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.24; revenues rose 23.3% year/year to $81.1 mln vs the $78.3 mln Capital IQ Consensus.
Co issues in-line guidance for Q2, sees Q2 revs of approx $86 mln vs. $89.20 mln Capital IQ Consensus Estimate.
Today's action was higher in the broader markets as the tech-heavy Nasdaq Composite added 23.71 points (+0.39%) to 6048.94. The S&P 500 was up 1.32 points (+0.06%) to 2388.77 at the close, while the Dow Jones Industrial Average gained 6.24 points (+0.03%) to 20981.33.
Economic data today included March durable goods orders which rose 0.7%. The prior month's reading was revised to 2.3% (from 1.7%). Excluding transportation, durable orders decreased 0.2% to follow the prior month's revised uptick of 0.7% (from 0.4%). The latest weekly initial jobless claims count totaled 257,000, above the revised prior week count of 243,000 (from 244,000). As for continuing claims, they rose to 1.988 million from the revised count of 1.978 million (from 1.979 million). Also, the Advance report for International Trade in Goods for March showed a deficit of $64.8 billion, up from a revised deficit of $63.9 billion for February (from -$64.8 billion). Lastly, Pending Home Sales for March declined 0.8%. Today's reading follows a revised 5.6% increase in February (from 5.5%).
The Technology (XLK 54.24, +0.22 +0.41%) space ended near highs of the day. Component Intuit (INTU 125.61, +9.80 +8.46%) was the best performer after reiterating certain guidance for Q3, FY17. The remaining ten S&P sectors were led by the Consumer Discretionary space XLY +0.53% followed by XLU +0.35%, XLV +0.21%, XLRE +0.06%, XLI -0.03%, XLP -0.13%, XLB -0.22%, IYZ -0.40%, XLF -0.46%, XLE -1.09%.
In the S&P 500 Information Technology (925.25, +5.54 +0.60%) space, trading was strong on the back of select earnings in the space. Namely, component PayPal (PYPL 47.15, +2.74 +6.17%) performed well today after the company's strong Q1 report. Other names in the space which outperformed today included MU +3.14%, KLAC +2.77%, GLW +2.22%, HRS +1.94%, JNPR +1.80%, NVDA +1.56%, FSLR +1.55%, AMAT +1.52%.
Other notable news items among sector components:
Synchronoss Tech's (SNCR 13.29, -11.33 -46.02%) CEO and CFO step down. The company now expects Q1 revenue to be $13-14 million less than prior guidance.
In addition to reporting quarterly results, PayPal (PYPL) announced $5 bln share buyback.
Micron (MU 27.63, +0.84 +3.14%) appointed Sanjay Mehrotra as president and CEO and a member of the board of directors, effective May 8, 2017; Mehrotra succeeds Mark Durcan.
Sapiens Int'l (SPNS 11.67, -1.68 -12.58%) announced the receipt of letter from customer alleging material breach of agreement, leading to the co not expecting to generate any further revs from the customer in 2017. As a result, the company revised 2017 revenue guidance to $265-275 million.
Intuit (INTU) released its second and final update for its fiscal year 2017 consumer tax offerings; reiterated Q3 and full-year company revenue, operating income and EPS guidance.
In reaction to quarterly results:
PayPal (PYPL) reported better than expected Q1 EPS and revenues of $0.44 and $2.98 billion, respectively. For Q2, the company guided EPS and revenues in-line at $0.41-0.43 and $3.05-3.10 billion, respectively. For FY17, PYPL sees EPS above expectations and revenues in-line at $1.74-1.79 and $12.52-12.72 billion, respectively.
Nokia (NOK 5.72, +0.35 +6.52%) reported in-line Q1 EPS of EUR0.03 on better than expected revenues of EUR5.39 billion.
Equinix (EQIX 410.94, +3.61 +0.89%) reported Q1 adjusted funds from operations of $4.14 on in-line revenues of $949.53 million. For Q2, revenues are expected in the range of $976-982 million. For FY17, revenues are expected to be greater than 3.977 billion.
Citrix Systems (CTXS 81.44, -2.68 -3.19%) reported better than expected Q1 EPS of $0.97 on in-line revenues of $662.7 million. For Q2, the company sees worse than expected EPS and revenues of $0.97-1.00 and $685-695 million, respectively. The company also reaffirmed FY17 EPS and revenues of $4.60-4.65 and $2.81-2.84 billion, respectively.
F5 Networks (FFIV 126.99, -10.31 -7.51%) reported worse than expected Q2 EPS of $1.95 and in-line revenues of $518.2 million. For Q3, the company sees EPS and revenues below market expectations at $2.01-2.04 and $520-530 million, respectively.
Companies scheduled to report quarterly results tonight/tomorrow morning: ATEN, GOOG, AMZN, AMKR, TEAM, BIDU, BNFT, EPAY, BRKS, COHU, CY, ELLI, EXPE, FICO, FLEX, FTNT, FTV, GIMO, GPRO, INTC, KLAC, MSCC, MSFT, MSTR, MITK, MOBL, NATI, NSR, PDFS, PXLW, POWI, SIMO, SWKS, SPSC, SSNC, SMCI, SYNA, TRMB, VDSI, VRSN, WDC/AVX, MGI, TYPE
Analyst actions:
CSCO was upgraded to Outperform from Underperform at Credit Suisse,
PYPL was upgraded to Neutral from Underweight at Piper Jaffray,
CTXS was upgraded to Outperform from Neutral at Robert W. Baird,
FSLR was upgraded to Mkt Perform from Mkt Underperform at JMP Securities;
MLNX was downgraded to Neutral from Overweight at Piper Jaffray, to Neutral from Buy at Roth Capital and to Neutral from Outperform at Credit Suisse,
ANET was downgraded to Neutral from Outperform at Credit Suisse,
NTRI was downgraded to Hold from Buy at Wunderlich,
AKAM was downgraded to Underweight from Equal Weight at Morgan Stanley,
SNCR was downgraded to Market Perform from Outperform at Wells Fargo and to Neutral from Overweight at JP Morgan,
SHOP was downgraded to Neutral from Buy at BTIG Research,
WIX was downgraded to Equal Weight from Overweight at Stephens
