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Thursday, April 24, 2014 6:42:50 PM
From Briefing.com: 4:15 pm : The Nasdaq Composite (+0.5%) and S&P 500 (+0.2%) posted modest gains on Thursday, but not before enduring a morning dip into the red, which took place in reaction to reports indicating Russia has commenced military exercises on the Ukrainian border.
The news from Europe knocked the key indices from their early highs, while giving a boost to safe-haven assets like gold futures (+0.5% to $1290.80/ozt), Treasuries (10-yr yield -1 bps to 2.69%), and the Japanese yen (102.30 vs USD); however the morning spike in safety flows was retraced partially, while equities rallied off their lows with the technology sector (+1.1%) setting the pace.
Tech shares (and the Nasdaq) received significant support from the shares of Apple (AAPL 567.77, +43.02), which surged 8.2% after the top-weighted tech company handily beat earnings expectations. In addition, Apple increased its share buyback to $90 billion and announced a 7:1 stock split, which will go into effect on June 2.
Apple notwithstanding, the market heard from several other tech names like Citrix Systems (CTXS 60.00, +4.01), Facebook (FB 60.87, -0.49), F5 Networks (FFIV 105.98, -2.21), and Texas Instruments (TXN 48.47, +2.01), all of which reported better than expected earnings.
Elsewhere, the discretionary sector (+0.5%) was the only other noteworthy pocket of strength, thanks to a boost from homebuilders. DR Horton (DHI 23.13, +1.78) gained 8.3% after reporting above-consensus results, while the broader iShares Dow Jones US Home Construction ETF (ITB 23.90, +0.57) advanced 2.4%. The discretionary space also received significant support from Amazon.com (AMZN 337.15, +12.57), which rallied 3.9% ahead of its after-hours earnings release.
Even though two of the four largest sectors displayed relative strength, that was not the case with the other two top-weighed groups. Health care (-0.2%) and financials (-0.1%) lagged throughout the session, with the relative weakness in health care largely due to the underperformance of biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 229.62, -1.37) lost 0.6%, but managed to close above its 20-day moving average (228.55).
Also of note, the industrial sector (-0.2%) ended among the laggards after several components reported earnings. 3M (MMM 136.65, -1.34) and UPS (UPS 98.64, -0.60) missed expectations, while Caterpillar (CAT 105.28, +1.90) reported well ahead of estimates. For its part, United Continental (UAL 41.53, -4.53) also beat bottom-line estimates, but slumped 9.8%.
Participation remained relatively light as less than 650 million shares changed hands at the NYSE.
Reviewing today's data:
The initial claims level increased to 329,000 for the week ending April 19 from an upwardly revised 305,000 (from 304,000) for the week ending April 12. The Briefing.com consensus expected the claims level to increase to 312,000. A 24,000 increase from the previous week may seem like a lot, but it took place at a time when the Department of Labor normally has difficulty adjusting for the Easter holiday. In all likelihood, the low claims levels at the beginning of the month were a result of seasonal biases and not a change in layoff trends. Claims are likely to stabilize in the 320,000 -- 330,000 range over the next few weeks.
Durable goods orders increased 2.6% in March after increasing a downwardly revised 2.1% (from 2.2%) in February. The Briefing.com consensus expected durable goods orders to increase 2.0%. For the past few months, durable goods orders have been reliant on Boeing for growth. That wasn't necessarily the case in March as demand strengthened across the board. Transportation orders were still important, up 4.0% after increasing 6.7% in February, but were not the sole provider of growth. Durable goods orders excluding transportation increased 2.0% in March, up from a 0.1% increase in February. That was also well above the consensus expectation of a 0.5% gain.
Tomorrow, the final reading of the Michigan Consumer Sentiment survey for April (Briefing.com consensus 82.6) will be released at 9:55 ET.
S&P 500 +1.6% YTD
Dow Jones Industrial Average -0.5% YTD
Nasdaq Composite -0.7% YTD
Russell 2000 -1.5% YTD
DJ30 0.00 NASDAQ +21.37 SP500 +3.22 NASDAQ Adv/Vol/Dec 1131/1.99 bln/1536 NYSE Adv/Vol/Dec 1548/646.0 mln/1470
3:30 pm :
Precious metals began pit trade in the red but rallied sharply into positive territory moments after equity markets opened.
June gold brushed a session low of $1268.50 per ounce in early morning action and popped to a session high of $1299.00 per ounce. It then consolidated near the $1290.00 per ounce level and settled with a 0.5% gain at $1290.80 per ounce.
May silver traded as low as $18.98 per ounce in early morning pit trade and rallied to a session high of $19.91 per ounce. It eventually settled at $19.69 per ounce, or 1.3% higher. June crude oil also traded higher, brushing a session high of $102.37 per barrel. It settled with a 0.5% gain at $101.95 per barrel.
May natural gas touched a session high of $4.79 per MMBtu shortly after inventories were released. However, it retreated into negative territory as investors digested the data which showed a build of 49 bcf vs expectations for a build of 36-42 bcf. The energy component dipped to a session low of $4.67 per MMBtu and settled with a 0.4% loss at $4.71 per MMBtu.
4:30PM Mellanox Tech misses by $0.02, misses on revs (MLNX) 39.68 -0.42 : Reports Q1 (Mar) earnings of $0.10 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.12; revenues rose 18.8% year/year to $98.7 mln vs the $102.88 mln consensus; non-GAAP gross margin 68.6%.
4:27PM KLA-Tencor beats by $0.12, beats on revs (KLAC) 67.74 +1.02 : Reports Q3 (Mar) earnings of $1.23 per share, $0.12 better than the Capital IQ Consensus Estimate of $1.11; revenues rose 14.1% year/year to $832 mln vs the $822.47 mln consensus.
"KLA-Tencor delivered solid results for the third quarter of fiscal year 2014, demonstrating our market leadership and strong operational execution," commented Rick Wallace, President and CEO of KLA-Tencor. "Semiconductor device manufacturers are facing enormous challenges in transitioning from planar to 3D transistor structures and in implementing new process technologies at the leading edge such as multi-patterning lithography. Although the semiconductor capital equipment industry is currently experiencing a pause in demand after a strong initial ramp of some of these new technologies, we remain focused on partnering with our customers to address yield issues associated with these ramps."
4:25PM Monolithic Power beats by $0.13, reports revs in-line; guides Q2 revs in-line (MPWR) 38.09 +1.04 : Reports Q1 (Mar) earnings of $0.39 per share, excluding non-recurring items, $0.13 better than the Capital IQ Consensus Estimate of $0.26; revenues rose 16.7% year/year to $60.1 mln vs the $60.2 mln consensus. Co issues in-line guidance for Q2, sees Q2 revs of $65-69 mln vs. $66.1 mln Capital IQ Consensus Estimate.
4:24PM Broadcom beats by $0.05, beats on revs; guides Q2 revs in-line (BRCM) 31.14 +0.73 : Reports Q1 (Mar) earnings of $0.51 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.46; revenues fell 1.0% year/year to $1.98 bln vs the $1.96 bln consensus.
Co issues in-line guidance for Q2, sees Q2 revs of $2.0-2.1 bln vs. $2.07 bln Capital IQ Consensus Estimate.
Non-GAAP product gross margin of up ~75 to ~175 basis points from 1Q14
Broadcom delivered overall results ahead of expectations in the March quarter," said Scott McGregor, Broadcom's President and Chief Executive Officer.
The upside was driven by strength in Broadband and Infrastructure, stronger-than-expected gross margins and continued operating expense discipline.
"In the current quarter, we expect momentum in Infrastructure and Broadband to continue, driven by service provider spending on network build outs and technology upgrades."
4:19PM Applied Micro beats by $0.01, misses on revs (AMCC) 9.79 +0.44 : Reports Q4 (Mar) earnings of $0.01 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of ($0.00); revenues fell 8.0% year/year to $51.8 mln vs the $52.32 mln consensus.
"We are very excited with the progress we have made to commercialize X-Gene...Design win momentum is strong, and we have purchase orders in-hand. We expect to begin sampling X-Gene 2 later this spring....In addition, our leadership in the OTN / converged Ethernet market has positioned us very well to benefit from the adoption of 100Gbps connectivity within and between data centers.
4:18PM Altera beats by $0.05, beats on revs; guides Q2 revs above consensus (ALTR) : Reports Q1 (Mar) earnings of $0.37 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.32; revenues rose 12.3% year/year to $461.1 mln vs the $437.97 mln consensus.
Co issues upside guidance for Q2, sees Q2 revs up 2-6% sequentially (roughly $470-488 mln) vs. $461.34 mln Capital IQ Consensus Estimate.
"The quarter exceeded our expectations as stronger than anticipated Chinese LTE deployments drove wireless sales."
4:15PM Freescale Semi appoints Dan Durn CFO (FSL) 25.88 +1.08 : FSL announced that it has selected Dan Durn as senior vice president and chief financial officer, replacing current CFO, Alan Campbell, who announced his decision to retire in January of this year.
Durn will assume CFO responsibilities for the company in June 2014.
Campbell completes a 34-year career at Freescale and will remain at co during the transition.
Durn most recently served as chief financial officer and executive vice president of finance and administration at GLOBALFOUNDRIES, the industry's second largest semiconductor foundry.
4:12PM Freescale Semi beats by $0.03, beats on revs; guides Q2 revs above consensus (FSL) 25.88 +1.08 : Reports Q1 (Mar) earnings of $0.27 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.24; revenues rose 14.9% year/year to $1.13 bln vs the $1.09 bln consensus.
GAAP gross margin was 44.8%, EBITDA was $244 mln, and capital expenditures for the quarter were $56 million.
Guidance: Co issues upside guidance for Q2, sees Q2 revs of $1.14-$1.20 bln vs. $1.13 bln Capital IQ Consensus Estimate. Expects gross margin to increase approximately 50-75 basis points on a sequential basis.
4:10PM SunPower beats by $0.17, beats on revs; guides Q2 EPS in-line, revs below consensus; guides FY14 EPS in-line, revs in-line (SPWR) 32.02 +0.54 : Reports Q1 (Mar) earnings of $0.49 per share, $0.17 better than the Capital IQ Consensus Estimate of $0.32; revenues rose 19.0% year/year to $683.7 mln vs the $668.95 mln consensus. Non-GAAP GM was 22.0%.
Co issues mixed guidance for Q2, sees EPS of $0.15-0.35, excluding non-recurring items, vs. $0.30 Capital IQ Consensus Estimate; sees Q2 revs of $575-625 mln vs. $631.73 mln Capital IQ Consensus Estimate. Sees MW recognition of 275-300 MW. GM expected to be 18-20%.
Co issues in-line guidance for FY14, sees EPS of $1.10-1.40, excluding non-recurring items, vs. $1.22 Capital IQ Consensus Estimate; sees FY14 revs of $2.50-2.65 bln vs. $2.56 bln Capital IQ Consensus Estimate. Expects GW recognized in the range of 1.2-1.3 GW. GM between 19-21%. CapEx between $150-170 mln.
4:09PM Microsoft beats by $0.05, reports revs in-line (MSFT) 79.48 +1.53 : Reports Q3 (Mar) earnings of $0.68 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.63; revenues fell 0.4% year/year to $20.4 bln vs $20.0-20.5 bln guidance and the the $20.37 bln consensus.
Devices and Consumer revenue grew 12% to $8.30 bln vs. $7.8-8.1 bln guidance.
Windows OEM revenue grew 4%, driven by strong 19% growth in Windows OEM Pro revenue.
Office 365 Home now has 4.4 million subscribers, adding nearly 1 million subscribers in just three months.
Microsoft sold in 2.0 million Xbox console units, including 1.2 million Xbox One consoles.
Surface revenue grew over 50% to ~$500 million.
Bing U.S. search share grew to 18.6% and search advertising revenue grew 38%.
Commercial revenue grew 7% to $12.23 bln vs. the $1.2-12.4 bln guidance.
Office 365 revenue grew over 100%, and commercial seats nearly doubled, demonstrating strong enterprise momentum for Microsoft's cloud productivity solutions.
Azure revenue grew over 150%, and the company has announced more than 40 new features that make the Azure platform more attractive to cloud application developers.
Windows volume licensing revenue grew 11%, as business customers continue to make Windows their platform of choice.
Lync, SharePoint, and Exchange, our productivity server offerings, collectively grew double-digits.
Microsoft expects to close the acquisition of the Nokia Devices and Services business on April 25, 2014.
"We are making good progress in our consumer services like Bing and Office 365 Home, and our commercial customers continue to embrace our cloud solutions. Both position us well for long-term growth,"
4:08PM Microsemi reports EPS in-line, revs in-line; guides Q3 EPS in-line, revs below consensus (MSCC) 25.61 +0.43 : Reports Q2 (Mar) earnings of $0.51 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.51; revenues rose 22.0% year/year to $287 mln vs the $286.5 mln consensus.
Non-GAAP gross margin was 55.2% and Book-to-Bill ratio was greater than 1:1.
Guidance: Co issues mixed guidance for Q3, sees EPS of $0.55-$0.61 vs. $0.57 Capital IQ Consensus Estimate; sees Q3 revs of $287-$293 mln vs. $296.35 mln Capital IQ Consensus Estimate.
4:05PM CalAmp misses by $0.02, misses on revs; guides MayQ EPS below consensus, revs below consensus (CAMP) 24.63 -0.47 : Reports Q4 (Feb) earnings of $0.20 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.22; revenues rose 23.7% year/year to $59.8 mln vs the $61.5 mln consensus. Co issues downside guidance for Q1 (May), sees EPS of $0.17-0.21, excluding non-recurring items, vs. $0.23 Capital IQ Consensus Estimate; sees Q1 revs of $56-60 mln vs. $64.4 mln Capital IQ Consensus Estimate.
Co says Q4 had performance issues on the part of a contract manufacturer that the co inherited with the Navman Wireless product line acquisition. This prevented the co from shipping approximately $2 mln in product orders in Q4.
4:04PM Lattice Semi beats by $0.04, beats on revs; guides Q2 revs above consensus (LSCC) 8.11 +0.00 : Reports Q1 (Mar) earnings of $0.10 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.06; revenues rose 35.7% year/year to $96.6 mln vs the $89.5 mln consensus.
Gross margin was 56.0%, compared to 54.3% in 4Q13 and 53.6% in 1Q13.
Guidance: Co issues upside guidance for Q2, sees Q2 revs flat to up 4% sequentially, equating to approximately $96.6-$100.5 mln vs. $91.15 mln Capital IQ Consensus Estimate. Gross margin percentage is expected to be approximately 55% plus or minus 2%. Total operating expenses are expected to be approximately flat on a sequential basis.
4:04PM Maxim Integrated beats by $0.03, reports revs in-line; guides Q4 EPS in-line, revs in-line (MXIM) : Reports Q3 (Mar) earnings of $0.43 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.40; revenues rose 0.2% year/year to $606 mln vs the $604.83 mln consensus.
Co issues in-line guidance for Q4, sees EPS of $0.45-0.49 vs. $0.46 Capital IQ Consensus Estimate; sees Q4 revs of $635-665 mln vs. $638.82 mln Capital IQ Consensus Estimate.
4:02PM Cirrus Logic beats by $0.09, beats on revs; guides Q1 revs in-line (CRUS) : Reports Q4 (Mar) earnings of $0.41 per share, $0.09 better than the Capital IQ Consensus Estimate of $0.32; revenues fell 27.6% year/year to $149.7 mln vs the $142.72 mln consensus.
Co issues in-line guidance for Q1, sees Q1 revs of $135-155 mln vs. $138.24 mln Capital IQ Consensus Estimate.
4:00PM Trina Solar supplies 36MW of high efficiency modules to large-scale chile solar project (TSL) 13.13 +0.35 : TSL announced it has signed an agreement to supply 36MW of high efficiency TSM-PC14 modules to a large-scale PV project in Chile.
Trina Solar's TSM-PC14 module is IEC certified to 1,000V and is ideal for large-scale installations in areas prone to high temperatures and dry conditions.
The Company expects to complete the shipment in the second quarter of 2014.
Upon completion,the 36MW Trina solar modules are expected to generate approximately 97,000 MWh of solar electricity annually, enough to mitigate 48,600 metric tonnes of CO2 per year, equivalent to taking more than 10,800 cars off the road
12:47PM Notable movers of interest (SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).
Large Cap Gainers
ZMH (101.82 +11.34%): Beat on EPS by $0.03, missed on revs; lowered FY14 EPS to reflect share count following acquisition of Biomet; reaffirmed FY14 revs; co to combine with Biomet in transaction valued at $13.35 bln; expected to be double-digit accretive to Zimmer's adjusted diluted earnings per share in the first year; target raised to $122 at Needham.
CTXS (61.57 +9.97%): Beat on EPS by $0.05, beat on revs; guided Q2 EPS below consensus, revs below consensus; raised bottom end of FY14 EPS & revs in line with ests; announced proposed private offering of $1.25 bln Convertible Senior Notes due 2019.
AET (72.61 +5.36%): Beat on EPS by $0.46, beat on revs; raised FY14 EPS above consensus.
Large Cap Losers
XLNX (47.55 -9.29%): Missed on EPS by $0.02, reported revs in-line; guided Q1 revs in-line; downgraded to Neutral from Outperform at Credit Suisse; tgt lowered to $54 from $57 at MKM Partners.
UAL (42.24 -8.29%): Beat on EPS by $0.03, reported revs in-line; sees Q2 capacity flat to +1%; FY15 capacity +0.5-1.5%.
UA (51.2 -5.95%): Beat on EPS by $0.02, beat on revs; raised FY14 guidance; unfavorable mention on yesterday's Mad Money.
Mid Cap Gainers
LRCX (58.21 +11.41%): Beat on EPS by $0.10, reported revs in-line; guided Q4 above consensus; tgt raised to $60 at Cowen.
DHI (22.92 +7.35%): Beat on EPS by $0.04, beat on revs; upgraded to Buy from Neutral at Citigroup.
TQNT (14.29 +7.61%): Beat on EPS by $0.05, reported revs in-line; guided Q2 EPS above consensus, revs above consensus; upgraded to Outperform from Market Perform at Northland Capital; tgt raised to $17.50 from $9; tgt raised to $15 from $13 at Canaccord Genuity.
Mid Cap Losers
IM (26.33 -13.02%): Missed on EPS by $0.05, reported revs in-line, reaffirmed FY rev guidance; selected to provide mobility distribution and supply chain solutions to key Verizon Wireless (VZ) dealers; tgt raised to $35 at Needham.
TCBI (57.08 -11.6%): Missed on EPS by $0.13; downgraded to Mkt Perform at Raymond James.
LOGI (13.56 -8.87%): Beat on EPS by $0.08, beat on revs; guided FY15 revs below consensus.
11:43AM Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (136) outpacing new lows (34) (SCANX) : Stocks that traded to 52 week highs: AA, AAV, ABG, AEP, AGRO, ALGT, AMKR, APH, ARCW, ARCX, ASMI, ASX, ATHL, AVA, AZN, BFR, BIOF, BPO, BWA, BXE, CAM, CAT, CCK, CFR, CHSP, CLCT, CNC, CNOB, CNQ, CNX, CRK, CRZO, CWEI, CXDC, CXO, CXP, DLPH, EDN, EMN, ENBL, EOG, EQT, ERF, ESXB, FN, FNSR, FPP, FTK, FWLT, GAS, GBX, GGAL, GLDC, GMK, GT, HCBK, HMHC, HP, HST, HUBG, IMO, JOY, KED, KEP, KND, LCUT, LSI, LSTR, MAR, MJN, MO, MOD, MPAA, MPET, MRH, MTB, MU, NORD, NS, NSH, NTCT, NVDA, ODFL, OFED, OKE, ORM, PAC, PDS, PHII, PMBC, PPC, PPL, PSX, PTP, PTSI, QTS, RDS.B, RE, RES, RFMD, RHI, RNR, ROIC, RRC, SANM, SCI, SGU, SIAL, SLG, SMLP, SNDK, SPN, SRLP, SU, SUP, SWKS, SYA, SYNA, SYRG, TFSL, TOT, TQNT, TRW, TSLX, TXT, UGI, UHAL, UNT, UTSI, VDSI, VET, VLO, WES, WIN, XEC, ZMH
Stocks that traded to 52 week lows: ACFN, AXR, BCO, CACH, CFFI, CREE, CSLT, CTHR, EGRX, EROC, ESNT, FBR, FLXN, GRVY, HEAR, HERO, ICUI, IGT, IMPV, LPCN, LQDT, MGT, PBPB, PFSI, QDEL, QSII, RAX, STRL, TEU, TGE, UNXL, VHI, VSTM, ZNH
ETFs that traded to 52 week highs: AFK, DBA, DIG, DJP, EWK, GULF, IEO, IGE, IYE, IYK, IYT, JJA, OIH, USCI, XLE, XLP, XOP
ETFs that traded to 52 week lows: none
9:03AM Ultratech misses by $0.02, misses on revs (UTEK) 25.92 : Reports Q1 (Mar) loss of $0.25 per share, $0.02 worse than the Capital IQ Consensus Estimate of ($0.23); revenues fell 47.9% year/year to $31.6 mln vs the $32.98 mln consensus.
Commentary:
"Our revenues for the first quarter of 2014 increased 32 percent sequentially, driven by both our advanced packaging and high-brightness LED businesses...Our customers trust Ultratech to deliver innovative technologies that are critical for the industry to continue to advance, and we are encouraged by the adoption of our laser spike annealing systems for 14 nanometer technology. Based on customer input, increased quote activity and orders in hand, we believe that we are well positioned to have a stronger second half of the year."
Apple (AAPL) reported second quarter earnings of $11.62 per share, which is higher than expected, while revenues rose 4.7% year/year to $45.65 billion which is higher than expected gross margins of 39.3% versus guidance 37-38%... Buybacks added $0.81/share to EPS -- analyst models include buybacks). The company issued guidance for the third quarter with revenues of $36-38 billion which is line with estimates and sees Q3 gross margins of 37-38%. iPhone shipments 43.7 million vs. ~38 million estimates. iPad 16.4 million vs. 19 million estMac 4.13 million vs. 4 million estCo announced that its Board of Directors has authorized another significant increase to the Company's program to return capital to shareholders. The co expects to utilize a total of over $130 billion of cash under the expanded program by the end of calendar 2015. As part of the program, the Board has increased its share repurchase authorization to $90 bln from the $60 bln level announced last year. The Company expects to continue to utilize about $1 billion annually to net-share-settle vesting restricted stock units. Co raises quarterly dividend 8% to $3.29 per common share, payable on May 15, 2014 to shareholders of record as of the close of business on May 12, 2014.The co also plans to increase its dividend on an annual basis. With annual payments of $11 billion, Apple is among the largest dividend payers in the world.Co also announced a 7:1 stock split.
Facebook (FB) reported first quarter earnings of $0.34 per share, which is higher than expected, while revenues rose 71.6% year/year to $2.5 bililon which is higher than expected. Daily active users (DAUs) were 802 million on average for March 2014, an increase of 21% year-over-year. Mobile DAUs were 609 million on average for March 2014, an increase of 43% year-over-year. Monthly active users (MAUs) were 1.28 billion as of March 31, 2014, an increase of 15% year-over-year. Mobile MAUs were 1.01 billion as of March 31, 2014, an increase of 34% year-over-year. Revenue for the first quarter of 2014 totaled $2.50 billion, an increase of 72%, compared with $1.46 billion in the first quarter of 2013. Revenue from advertising was $2.27 billion, an 82% increase from the same quarter last year. Mobile advertising revenue represented approximately 59% of advertising revenue for the first quarter of 2014, up from approximately 30% of advertising revenue in the first quarter of 2013. For the first quarter of 2014, GAAP income from operations was $1.08 billion, up 188% compared to $373 million in the first quarter of 2013. Excluding share-based compensation and related payroll tax expenses, non-GAAP income from operations for the first quarter of 2014 was $1.37 billion, up 144% compared to $563 million for the first quarter of 2013. GAAP operating margin was 43% for the first quarter of 2014, compared to 26% in the first quarter of 2013. Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 55% for the first quarter of 2014, compared to 39% for the first quarter of 2013. CFO Transition Facebook today also announced that David Ebersman has informed the company of his intention to step down as chief financial officer after serving in the position for almost five years. On June 1, 2014, he will be succeeded as CFO by David Wehner, currently Facebook's Vice President, Corporate Finance and Business Planning. Ebersman will remain with the company through September to ensure a seamless transition of his responsibilities. Wehner joined Facebook in November 2012 from Zynga, where he served as CFO.
Fusion-io (FIO) reported third quarter loss of $0.10 per share, which is line with estimates, while revenues rose 14.6% year/year to $100.5 million which is higher than expected. Metrics: Non-GAAP gross margin was 52.4%. Cash used in operations was $18.8 million in fiscal third quarter 2014 and $22.9 million fiscal year-to-date. Inventory was $72.7 million at the end of fiscal third quarter 2014, a decrease of $7.7 million from the prior quarter-end Guidance: The company sees Q4 revs to be in-line to slightly up sequentially. The company sees Non-GAAP gross margin of 52-54% and operating margin of negative 13-17%.
Angie's List (ANGI) reported first quarter loss of $0.06 per share, which is higher than expected, while revenues rose 39.3% year/year to $72.7 million which is in line with estimates Membership revenue in the first quarter of 2014 was $18.3 million, an increase of 25 percent compared to the prior year period. Service provider revenue remains the largest and fastest growing component of total revenue at $54.4 million for the quarter, representing a 45 percent growth rate year-over-year. Service provider revenue includes revenue from advertising contracts and fees from e-commerce transactions. Advertising revenue was $48.1 million in the first quarter of 2014, an increase of 46 percent compared to the prior year period, and e-commerce revenue was $6.3 million, an increase of 34 percent year-over-year. Marketing expense increased 19 percent, or $3.8 million, compared to the prior year period. The company issues upside guidance for the second quarter with revenues of $79.5-80.5 million which is higher than expected.
TriQuint Semi (TQNT) reported first quarter loss of $0.06 per share, which is higher than expected, while revenues fell 3.6% year/year to $177.6 million which is in line with estimates. The company issued guidance for the upside guidance for the second quarter with EPS of $0.06-0.08 which is above estimtes and revenues of $215-225 million which is above estimates.
The news from Europe knocked the key indices from their early highs, while giving a boost to safe-haven assets like gold futures (+0.5% to $1290.80/ozt), Treasuries (10-yr yield -1 bps to 2.69%), and the Japanese yen (102.30 vs USD); however the morning spike in safety flows was retraced partially, while equities rallied off their lows with the technology sector (+1.1%) setting the pace.
Tech shares (and the Nasdaq) received significant support from the shares of Apple (AAPL 567.77, +43.02), which surged 8.2% after the top-weighted tech company handily beat earnings expectations. In addition, Apple increased its share buyback to $90 billion and announced a 7:1 stock split, which will go into effect on June 2.
Apple notwithstanding, the market heard from several other tech names like Citrix Systems (CTXS 60.00, +4.01), Facebook (FB 60.87, -0.49), F5 Networks (FFIV 105.98, -2.21), and Texas Instruments (TXN 48.47, +2.01), all of which reported better than expected earnings.
Elsewhere, the discretionary sector (+0.5%) was the only other noteworthy pocket of strength, thanks to a boost from homebuilders. DR Horton (DHI 23.13, +1.78) gained 8.3% after reporting above-consensus results, while the broader iShares Dow Jones US Home Construction ETF (ITB 23.90, +0.57) advanced 2.4%. The discretionary space also received significant support from Amazon.com (AMZN 337.15, +12.57), which rallied 3.9% ahead of its after-hours earnings release.
Even though two of the four largest sectors displayed relative strength, that was not the case with the other two top-weighed groups. Health care (-0.2%) and financials (-0.1%) lagged throughout the session, with the relative weakness in health care largely due to the underperformance of biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 229.62, -1.37) lost 0.6%, but managed to close above its 20-day moving average (228.55).
Also of note, the industrial sector (-0.2%) ended among the laggards after several components reported earnings. 3M (MMM 136.65, -1.34) and UPS (UPS 98.64, -0.60) missed expectations, while Caterpillar (CAT 105.28, +1.90) reported well ahead of estimates. For its part, United Continental (UAL 41.53, -4.53) also beat bottom-line estimates, but slumped 9.8%.
Participation remained relatively light as less than 650 million shares changed hands at the NYSE.
Reviewing today's data:
The initial claims level increased to 329,000 for the week ending April 19 from an upwardly revised 305,000 (from 304,000) for the week ending April 12. The Briefing.com consensus expected the claims level to increase to 312,000. A 24,000 increase from the previous week may seem like a lot, but it took place at a time when the Department of Labor normally has difficulty adjusting for the Easter holiday. In all likelihood, the low claims levels at the beginning of the month were a result of seasonal biases and not a change in layoff trends. Claims are likely to stabilize in the 320,000 -- 330,000 range over the next few weeks.
Durable goods orders increased 2.6% in March after increasing a downwardly revised 2.1% (from 2.2%) in February. The Briefing.com consensus expected durable goods orders to increase 2.0%. For the past few months, durable goods orders have been reliant on Boeing for growth. That wasn't necessarily the case in March as demand strengthened across the board. Transportation orders were still important, up 4.0% after increasing 6.7% in February, but were not the sole provider of growth. Durable goods orders excluding transportation increased 2.0% in March, up from a 0.1% increase in February. That was also well above the consensus expectation of a 0.5% gain.
Tomorrow, the final reading of the Michigan Consumer Sentiment survey for April (Briefing.com consensus 82.6) will be released at 9:55 ET.
S&P 500 +1.6% YTD
Dow Jones Industrial Average -0.5% YTD
Nasdaq Composite -0.7% YTD
Russell 2000 -1.5% YTD
DJ30 0.00 NASDAQ +21.37 SP500 +3.22 NASDAQ Adv/Vol/Dec 1131/1.99 bln/1536 NYSE Adv/Vol/Dec 1548/646.0 mln/1470
3:30 pm :
Precious metals began pit trade in the red but rallied sharply into positive territory moments after equity markets opened.
June gold brushed a session low of $1268.50 per ounce in early morning action and popped to a session high of $1299.00 per ounce. It then consolidated near the $1290.00 per ounce level and settled with a 0.5% gain at $1290.80 per ounce.
May silver traded as low as $18.98 per ounce in early morning pit trade and rallied to a session high of $19.91 per ounce. It eventually settled at $19.69 per ounce, or 1.3% higher. June crude oil also traded higher, brushing a session high of $102.37 per barrel. It settled with a 0.5% gain at $101.95 per barrel.
May natural gas touched a session high of $4.79 per MMBtu shortly after inventories were released. However, it retreated into negative territory as investors digested the data which showed a build of 49 bcf vs expectations for a build of 36-42 bcf. The energy component dipped to a session low of $4.67 per MMBtu and settled with a 0.4% loss at $4.71 per MMBtu.
4:30PM Mellanox Tech misses by $0.02, misses on revs (MLNX) 39.68 -0.42 : Reports Q1 (Mar) earnings of $0.10 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.12; revenues rose 18.8% year/year to $98.7 mln vs the $102.88 mln consensus; non-GAAP gross margin 68.6%.
4:27PM KLA-Tencor beats by $0.12, beats on revs (KLAC) 67.74 +1.02 : Reports Q3 (Mar) earnings of $1.23 per share, $0.12 better than the Capital IQ Consensus Estimate of $1.11; revenues rose 14.1% year/year to $832 mln vs the $822.47 mln consensus.
"KLA-Tencor delivered solid results for the third quarter of fiscal year 2014, demonstrating our market leadership and strong operational execution," commented Rick Wallace, President and CEO of KLA-Tencor. "Semiconductor device manufacturers are facing enormous challenges in transitioning from planar to 3D transistor structures and in implementing new process technologies at the leading edge such as multi-patterning lithography. Although the semiconductor capital equipment industry is currently experiencing a pause in demand after a strong initial ramp of some of these new technologies, we remain focused on partnering with our customers to address yield issues associated with these ramps."
4:25PM Monolithic Power beats by $0.13, reports revs in-line; guides Q2 revs in-line (MPWR) 38.09 +1.04 : Reports Q1 (Mar) earnings of $0.39 per share, excluding non-recurring items, $0.13 better than the Capital IQ Consensus Estimate of $0.26; revenues rose 16.7% year/year to $60.1 mln vs the $60.2 mln consensus. Co issues in-line guidance for Q2, sees Q2 revs of $65-69 mln vs. $66.1 mln Capital IQ Consensus Estimate.
4:24PM Broadcom beats by $0.05, beats on revs; guides Q2 revs in-line (BRCM) 31.14 +0.73 : Reports Q1 (Mar) earnings of $0.51 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.46; revenues fell 1.0% year/year to $1.98 bln vs the $1.96 bln consensus.
Co issues in-line guidance for Q2, sees Q2 revs of $2.0-2.1 bln vs. $2.07 bln Capital IQ Consensus Estimate.
Non-GAAP product gross margin of up ~75 to ~175 basis points from 1Q14
Broadcom delivered overall results ahead of expectations in the March quarter," said Scott McGregor, Broadcom's President and Chief Executive Officer.
The upside was driven by strength in Broadband and Infrastructure, stronger-than-expected gross margins and continued operating expense discipline.
"In the current quarter, we expect momentum in Infrastructure and Broadband to continue, driven by service provider spending on network build outs and technology upgrades."
4:19PM Applied Micro beats by $0.01, misses on revs (AMCC) 9.79 +0.44 : Reports Q4 (Mar) earnings of $0.01 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of ($0.00); revenues fell 8.0% year/year to $51.8 mln vs the $52.32 mln consensus.
"We are very excited with the progress we have made to commercialize X-Gene...Design win momentum is strong, and we have purchase orders in-hand. We expect to begin sampling X-Gene 2 later this spring....In addition, our leadership in the OTN / converged Ethernet market has positioned us very well to benefit from the adoption of 100Gbps connectivity within and between data centers.
4:18PM Altera beats by $0.05, beats on revs; guides Q2 revs above consensus (ALTR) : Reports Q1 (Mar) earnings of $0.37 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.32; revenues rose 12.3% year/year to $461.1 mln vs the $437.97 mln consensus.
Co issues upside guidance for Q2, sees Q2 revs up 2-6% sequentially (roughly $470-488 mln) vs. $461.34 mln Capital IQ Consensus Estimate.
"The quarter exceeded our expectations as stronger than anticipated Chinese LTE deployments drove wireless sales."
4:15PM Freescale Semi appoints Dan Durn CFO (FSL) 25.88 +1.08 : FSL announced that it has selected Dan Durn as senior vice president and chief financial officer, replacing current CFO, Alan Campbell, who announced his decision to retire in January of this year.
Durn will assume CFO responsibilities for the company in June 2014.
Campbell completes a 34-year career at Freescale and will remain at co during the transition.
Durn most recently served as chief financial officer and executive vice president of finance and administration at GLOBALFOUNDRIES, the industry's second largest semiconductor foundry.
4:12PM Freescale Semi beats by $0.03, beats on revs; guides Q2 revs above consensus (FSL) 25.88 +1.08 : Reports Q1 (Mar) earnings of $0.27 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.24; revenues rose 14.9% year/year to $1.13 bln vs the $1.09 bln consensus.
GAAP gross margin was 44.8%, EBITDA was $244 mln, and capital expenditures for the quarter were $56 million.
Guidance: Co issues upside guidance for Q2, sees Q2 revs of $1.14-$1.20 bln vs. $1.13 bln Capital IQ Consensus Estimate. Expects gross margin to increase approximately 50-75 basis points on a sequential basis.
4:10PM SunPower beats by $0.17, beats on revs; guides Q2 EPS in-line, revs below consensus; guides FY14 EPS in-line, revs in-line (SPWR) 32.02 +0.54 : Reports Q1 (Mar) earnings of $0.49 per share, $0.17 better than the Capital IQ Consensus Estimate of $0.32; revenues rose 19.0% year/year to $683.7 mln vs the $668.95 mln consensus. Non-GAAP GM was 22.0%.
Co issues mixed guidance for Q2, sees EPS of $0.15-0.35, excluding non-recurring items, vs. $0.30 Capital IQ Consensus Estimate; sees Q2 revs of $575-625 mln vs. $631.73 mln Capital IQ Consensus Estimate. Sees MW recognition of 275-300 MW. GM expected to be 18-20%.
Co issues in-line guidance for FY14, sees EPS of $1.10-1.40, excluding non-recurring items, vs. $1.22 Capital IQ Consensus Estimate; sees FY14 revs of $2.50-2.65 bln vs. $2.56 bln Capital IQ Consensus Estimate. Expects GW recognized in the range of 1.2-1.3 GW. GM between 19-21%. CapEx between $150-170 mln.
4:09PM Microsoft beats by $0.05, reports revs in-line (MSFT) 79.48 +1.53 : Reports Q3 (Mar) earnings of $0.68 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.63; revenues fell 0.4% year/year to $20.4 bln vs $20.0-20.5 bln guidance and the the $20.37 bln consensus.
Devices and Consumer revenue grew 12% to $8.30 bln vs. $7.8-8.1 bln guidance.
Windows OEM revenue grew 4%, driven by strong 19% growth in Windows OEM Pro revenue.
Office 365 Home now has 4.4 million subscribers, adding nearly 1 million subscribers in just three months.
Microsoft sold in 2.0 million Xbox console units, including 1.2 million Xbox One consoles.
Surface revenue grew over 50% to ~$500 million.
Bing U.S. search share grew to 18.6% and search advertising revenue grew 38%.
Commercial revenue grew 7% to $12.23 bln vs. the $1.2-12.4 bln guidance.
Office 365 revenue grew over 100%, and commercial seats nearly doubled, demonstrating strong enterprise momentum for Microsoft's cloud productivity solutions.
Azure revenue grew over 150%, and the company has announced more than 40 new features that make the Azure platform more attractive to cloud application developers.
Windows volume licensing revenue grew 11%, as business customers continue to make Windows their platform of choice.
Lync, SharePoint, and Exchange, our productivity server offerings, collectively grew double-digits.
Microsoft expects to close the acquisition of the Nokia Devices and Services business on April 25, 2014.
"We are making good progress in our consumer services like Bing and Office 365 Home, and our commercial customers continue to embrace our cloud solutions. Both position us well for long-term growth,"
4:08PM Microsemi reports EPS in-line, revs in-line; guides Q3 EPS in-line, revs below consensus (MSCC) 25.61 +0.43 : Reports Q2 (Mar) earnings of $0.51 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.51; revenues rose 22.0% year/year to $287 mln vs the $286.5 mln consensus.
Non-GAAP gross margin was 55.2% and Book-to-Bill ratio was greater than 1:1.
Guidance: Co issues mixed guidance for Q3, sees EPS of $0.55-$0.61 vs. $0.57 Capital IQ Consensus Estimate; sees Q3 revs of $287-$293 mln vs. $296.35 mln Capital IQ Consensus Estimate.
4:05PM CalAmp misses by $0.02, misses on revs; guides MayQ EPS below consensus, revs below consensus (CAMP) 24.63 -0.47 : Reports Q4 (Feb) earnings of $0.20 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.22; revenues rose 23.7% year/year to $59.8 mln vs the $61.5 mln consensus. Co issues downside guidance for Q1 (May), sees EPS of $0.17-0.21, excluding non-recurring items, vs. $0.23 Capital IQ Consensus Estimate; sees Q1 revs of $56-60 mln vs. $64.4 mln Capital IQ Consensus Estimate.
Co says Q4 had performance issues on the part of a contract manufacturer that the co inherited with the Navman Wireless product line acquisition. This prevented the co from shipping approximately $2 mln in product orders in Q4.
4:04PM Lattice Semi beats by $0.04, beats on revs; guides Q2 revs above consensus (LSCC) 8.11 +0.00 : Reports Q1 (Mar) earnings of $0.10 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.06; revenues rose 35.7% year/year to $96.6 mln vs the $89.5 mln consensus.
Gross margin was 56.0%, compared to 54.3% in 4Q13 and 53.6% in 1Q13.
Guidance: Co issues upside guidance for Q2, sees Q2 revs flat to up 4% sequentially, equating to approximately $96.6-$100.5 mln vs. $91.15 mln Capital IQ Consensus Estimate. Gross margin percentage is expected to be approximately 55% plus or minus 2%. Total operating expenses are expected to be approximately flat on a sequential basis.
4:04PM Maxim Integrated beats by $0.03, reports revs in-line; guides Q4 EPS in-line, revs in-line (MXIM) : Reports Q3 (Mar) earnings of $0.43 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.40; revenues rose 0.2% year/year to $606 mln vs the $604.83 mln consensus.
Co issues in-line guidance for Q4, sees EPS of $0.45-0.49 vs. $0.46 Capital IQ Consensus Estimate; sees Q4 revs of $635-665 mln vs. $638.82 mln Capital IQ Consensus Estimate.
4:02PM Cirrus Logic beats by $0.09, beats on revs; guides Q1 revs in-line (CRUS) : Reports Q4 (Mar) earnings of $0.41 per share, $0.09 better than the Capital IQ Consensus Estimate of $0.32; revenues fell 27.6% year/year to $149.7 mln vs the $142.72 mln consensus.
Co issues in-line guidance for Q1, sees Q1 revs of $135-155 mln vs. $138.24 mln Capital IQ Consensus Estimate.
4:00PM Trina Solar supplies 36MW of high efficiency modules to large-scale chile solar project (TSL) 13.13 +0.35 : TSL announced it has signed an agreement to supply 36MW of high efficiency TSM-PC14 modules to a large-scale PV project in Chile.
Trina Solar's TSM-PC14 module is IEC certified to 1,000V and is ideal for large-scale installations in areas prone to high temperatures and dry conditions.
The Company expects to complete the shipment in the second quarter of 2014.
Upon completion,the 36MW Trina solar modules are expected to generate approximately 97,000 MWh of solar electricity annually, enough to mitigate 48,600 metric tonnes of CO2 per year, equivalent to taking more than 10,800 cars off the road
12:47PM Notable movers of interest (SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).
Large Cap Gainers
ZMH (101.82 +11.34%): Beat on EPS by $0.03, missed on revs; lowered FY14 EPS to reflect share count following acquisition of Biomet; reaffirmed FY14 revs; co to combine with Biomet in transaction valued at $13.35 bln; expected to be double-digit accretive to Zimmer's adjusted diluted earnings per share in the first year; target raised to $122 at Needham.
CTXS (61.57 +9.97%): Beat on EPS by $0.05, beat on revs; guided Q2 EPS below consensus, revs below consensus; raised bottom end of FY14 EPS & revs in line with ests; announced proposed private offering of $1.25 bln Convertible Senior Notes due 2019.
AET (72.61 +5.36%): Beat on EPS by $0.46, beat on revs; raised FY14 EPS above consensus.
Large Cap Losers
XLNX (47.55 -9.29%): Missed on EPS by $0.02, reported revs in-line; guided Q1 revs in-line; downgraded to Neutral from Outperform at Credit Suisse; tgt lowered to $54 from $57 at MKM Partners.
UAL (42.24 -8.29%): Beat on EPS by $0.03, reported revs in-line; sees Q2 capacity flat to +1%; FY15 capacity +0.5-1.5%.
UA (51.2 -5.95%): Beat on EPS by $0.02, beat on revs; raised FY14 guidance; unfavorable mention on yesterday's Mad Money.
Mid Cap Gainers
LRCX (58.21 +11.41%): Beat on EPS by $0.10, reported revs in-line; guided Q4 above consensus; tgt raised to $60 at Cowen.
DHI (22.92 +7.35%): Beat on EPS by $0.04, beat on revs; upgraded to Buy from Neutral at Citigroup.
TQNT (14.29 +7.61%): Beat on EPS by $0.05, reported revs in-line; guided Q2 EPS above consensus, revs above consensus; upgraded to Outperform from Market Perform at Northland Capital; tgt raised to $17.50 from $9; tgt raised to $15 from $13 at Canaccord Genuity.
Mid Cap Losers
IM (26.33 -13.02%): Missed on EPS by $0.05, reported revs in-line, reaffirmed FY rev guidance; selected to provide mobility distribution and supply chain solutions to key Verizon Wireless (VZ) dealers; tgt raised to $35 at Needham.
TCBI (57.08 -11.6%): Missed on EPS by $0.13; downgraded to Mkt Perform at Raymond James.
LOGI (13.56 -8.87%): Beat on EPS by $0.08, beat on revs; guided FY15 revs below consensus.
11:43AM Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (136) outpacing new lows (34) (SCANX) : Stocks that traded to 52 week highs: AA, AAV, ABG, AEP, AGRO, ALGT, AMKR, APH, ARCW, ARCX, ASMI, ASX, ATHL, AVA, AZN, BFR, BIOF, BPO, BWA, BXE, CAM, CAT, CCK, CFR, CHSP, CLCT, CNC, CNOB, CNQ, CNX, CRK, CRZO, CWEI, CXDC, CXO, CXP, DLPH, EDN, EMN, ENBL, EOG, EQT, ERF, ESXB, FN, FNSR, FPP, FTK, FWLT, GAS, GBX, GGAL, GLDC, GMK, GT, HCBK, HMHC, HP, HST, HUBG, IMO, JOY, KED, KEP, KND, LCUT, LSI, LSTR, MAR, MJN, MO, MOD, MPAA, MPET, MRH, MTB, MU, NORD, NS, NSH, NTCT, NVDA, ODFL, OFED, OKE, ORM, PAC, PDS, PHII, PMBC, PPC, PPL, PSX, PTP, PTSI, QTS, RDS.B, RE, RES, RFMD, RHI, RNR, ROIC, RRC, SANM, SCI, SGU, SIAL, SLG, SMLP, SNDK, SPN, SRLP, SU, SUP, SWKS, SYA, SYNA, SYRG, TFSL, TOT, TQNT, TRW, TSLX, TXT, UGI, UHAL, UNT, UTSI, VDSI, VET, VLO, WES, WIN, XEC, ZMH
Stocks that traded to 52 week lows: ACFN, AXR, BCO, CACH, CFFI, CREE, CSLT, CTHR, EGRX, EROC, ESNT, FBR, FLXN, GRVY, HEAR, HERO, ICUI, IGT, IMPV, LPCN, LQDT, MGT, PBPB, PFSI, QDEL, QSII, RAX, STRL, TEU, TGE, UNXL, VHI, VSTM, ZNH
ETFs that traded to 52 week highs: AFK, DBA, DIG, DJP, EWK, GULF, IEO, IGE, IYE, IYK, IYT, JJA, OIH, USCI, XLE, XLP, XOP
ETFs that traded to 52 week lows: none
9:03AM Ultratech misses by $0.02, misses on revs (UTEK) 25.92 : Reports Q1 (Mar) loss of $0.25 per share, $0.02 worse than the Capital IQ Consensus Estimate of ($0.23); revenues fell 47.9% year/year to $31.6 mln vs the $32.98 mln consensus.
Commentary:
"Our revenues for the first quarter of 2014 increased 32 percent sequentially, driven by both our advanced packaging and high-brightness LED businesses...Our customers trust Ultratech to deliver innovative technologies that are critical for the industry to continue to advance, and we are encouraged by the adoption of our laser spike annealing systems for 14 nanometer technology. Based on customer input, increased quote activity and orders in hand, we believe that we are well positioned to have a stronger second half of the year."
Apple (AAPL) reported second quarter earnings of $11.62 per share, which is higher than expected, while revenues rose 4.7% year/year to $45.65 billion which is higher than expected gross margins of 39.3% versus guidance 37-38%... Buybacks added $0.81/share to EPS -- analyst models include buybacks). The company issued guidance for the third quarter with revenues of $36-38 billion which is line with estimates and sees Q3 gross margins of 37-38%. iPhone shipments 43.7 million vs. ~38 million estimates. iPad 16.4 million vs. 19 million estMac 4.13 million vs. 4 million estCo announced that its Board of Directors has authorized another significant increase to the Company's program to return capital to shareholders. The co expects to utilize a total of over $130 billion of cash under the expanded program by the end of calendar 2015. As part of the program, the Board has increased its share repurchase authorization to $90 bln from the $60 bln level announced last year. The Company expects to continue to utilize about $1 billion annually to net-share-settle vesting restricted stock units. Co raises quarterly dividend 8% to $3.29 per common share, payable on May 15, 2014 to shareholders of record as of the close of business on May 12, 2014.The co also plans to increase its dividend on an annual basis. With annual payments of $11 billion, Apple is among the largest dividend payers in the world.Co also announced a 7:1 stock split.
Facebook (FB) reported first quarter earnings of $0.34 per share, which is higher than expected, while revenues rose 71.6% year/year to $2.5 bililon which is higher than expected. Daily active users (DAUs) were 802 million on average for March 2014, an increase of 21% year-over-year. Mobile DAUs were 609 million on average for March 2014, an increase of 43% year-over-year. Monthly active users (MAUs) were 1.28 billion as of March 31, 2014, an increase of 15% year-over-year. Mobile MAUs were 1.01 billion as of March 31, 2014, an increase of 34% year-over-year. Revenue for the first quarter of 2014 totaled $2.50 billion, an increase of 72%, compared with $1.46 billion in the first quarter of 2013. Revenue from advertising was $2.27 billion, an 82% increase from the same quarter last year. Mobile advertising revenue represented approximately 59% of advertising revenue for the first quarter of 2014, up from approximately 30% of advertising revenue in the first quarter of 2013. For the first quarter of 2014, GAAP income from operations was $1.08 billion, up 188% compared to $373 million in the first quarter of 2013. Excluding share-based compensation and related payroll tax expenses, non-GAAP income from operations for the first quarter of 2014 was $1.37 billion, up 144% compared to $563 million for the first quarter of 2013. GAAP operating margin was 43% for the first quarter of 2014, compared to 26% in the first quarter of 2013. Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 55% for the first quarter of 2014, compared to 39% for the first quarter of 2013. CFO Transition Facebook today also announced that David Ebersman has informed the company of his intention to step down as chief financial officer after serving in the position for almost five years. On June 1, 2014, he will be succeeded as CFO by David Wehner, currently Facebook's Vice President, Corporate Finance and Business Planning. Ebersman will remain with the company through September to ensure a seamless transition of his responsibilities. Wehner joined Facebook in November 2012 from Zynga, where he served as CFO.
Fusion-io (FIO) reported third quarter loss of $0.10 per share, which is line with estimates, while revenues rose 14.6% year/year to $100.5 million which is higher than expected. Metrics: Non-GAAP gross margin was 52.4%. Cash used in operations was $18.8 million in fiscal third quarter 2014 and $22.9 million fiscal year-to-date. Inventory was $72.7 million at the end of fiscal third quarter 2014, a decrease of $7.7 million from the prior quarter-end Guidance: The company sees Q4 revs to be in-line to slightly up sequentially. The company sees Non-GAAP gross margin of 52-54% and operating margin of negative 13-17%.
Angie's List (ANGI) reported first quarter loss of $0.06 per share, which is higher than expected, while revenues rose 39.3% year/year to $72.7 million which is in line with estimates Membership revenue in the first quarter of 2014 was $18.3 million, an increase of 25 percent compared to the prior year period. Service provider revenue remains the largest and fastest growing component of total revenue at $54.4 million for the quarter, representing a 45 percent growth rate year-over-year. Service provider revenue includes revenue from advertising contracts and fees from e-commerce transactions. Advertising revenue was $48.1 million in the first quarter of 2014, an increase of 46 percent compared to the prior year period, and e-commerce revenue was $6.3 million, an increase of 34 percent year-over-year. Marketing expense increased 19 percent, or $3.8 million, compared to the prior year period. The company issues upside guidance for the second quarter with revenues of $79.5-80.5 million which is higher than expected.
TriQuint Semi (TQNT) reported first quarter loss of $0.06 per share, which is higher than expected, while revenues fell 3.6% year/year to $177.6 million which is in line with estimates. The company issued guidance for the upside guidance for the second quarter with EPS of $0.06-0.08 which is above estimtes and revenues of $215-225 million which is above estimates.
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