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Tuesday, July 29, 2014 8:22:39 PM
Briefing.com: 4:20 pm : The stock market ended the Tuesday session on a lower note after generally upbeat earnings took the back seat to geopolitical concerns. The S&P 500 (-0.5%) and Nasdaq Composite (-0.1%) ended on their lows, while the Russell 2000 (+0.3%) displayed relative strength.
Once again, market participants were focused on quarterly reports in the early going, but geopolitical worries overshadowed the impact of mostly better than expected earnings. Specifically, equities retreated after it was reported that European EU officials have prepared the new set of sanctions against Russia. The imposition of new sanctions may pique concerns about a boomerang effect on the global economy, and Europe in particular, but it is worth noting that the Russian ruble and Market Vectors Russia ETF (RSX 23.85, -0.50) strengthened in reaction to the news.
The reports of forthcoming sanctions were followed by afternoon headlines from Washington indicating the Treasury Department has added VTB, the Bank of Moscow, and Russian Agriculture Bank to the sanction list. After the news crossed the wires, the RSX and the ruble dropped to fresh lows, as did the S&P 500.
Nine of ten sectors registered losses with the industrial space (-1.2%) spending the day at the bottom of the leaderboard. The sector was pressured by transport stocks after UPS (UPS 98.86, -3.80) reported disappointing results and guided lower. For its part, the Dow Jones Transportation Average logged its fourth consecutive loss, tumbling 1.4% with 17 of its 20 components ending in the red.
Unlike the industrial sector, other cyclical groups fared a bit better. Financials (-0.6%) and materials (-0.7%) lagged, while consumer discretionary (-0.3%) and technology (-0.2%) displayed relative strength.
In the discretionary sector, Honda Motor (HMC 36.02, +0.84) advanced 2.4% after reporting a slim earnings beat. The carmaker underpinned the sector, which also drew strength from retailers. The SPDR S&P Retail ETF (XRT 84.24, 0.00) ended flat.
Elsewhere, the relative strength of the technology sector kept the broader market from sliding deeper into the red. High-beta chipmakers contributed to the outperformance with the likes of AMD (AMD 3.79, +0.06), Broadcom (BRCM 37.99, +0.27), and Taiwan Semiconductor (TSM 20.55, +0.18) adding between 0.7% and 1.6%.
Similarly, biotech companies also rallied with the iShares Nasdaq Biotechnology ETF (IBB 254.78, +2.87) ending higher by 1.1%. Meanwhile, the health care sector settled flat.
On the upside, only one sector finished in the green. Telecom services (+2.2%) rallied after Windstream (WIN 11.83, +1.30) was cleared by the Internal Revenue Service to spin off its assets into a publically-traded REIT. Peers AT&T (T 36.59, +0.94) and Verizon (VZ 51.97, +0.39) gained 2.6% and 0.8%, respectively on speculation they could also explore conversions into REITs.
On the fixed income side, Treasuries ended the session with modest gains that pressured the 10-yr yield lower by two basis points to 2.46%.
Participation was on the light side with 615 million shares changing hands at the NYSE.
Economic data was limited to the Case-Shiller 20-city Index and the Consumer Confidence report:
The Case-Shiller 20-city Home Price Index for May rose 9.3%, while a 10.0% increase had been expected by the Briefing.com consensus
This followed the previous month's increase of 10.8%
The Conference Board's Consumer Confidence Index spiked to 90.9 in July from an upwardly revised 86.4 (from 85.2), while the Briefing.com consensus pegged the Index at 85.6
Consumer confidence is now at its highest level since October 2007
The Present Situation Index increased to 88.3 from 86.3 and the Expectations Index rose to 92.7 from 86.4
Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET, while the ADP Employment Change for July (Briefing.com consensus 215K) will be reported at 8:15 ET. The advance reading of Q2 GDP will be released at 8:30 ET (consensus 3.2%), while the FOMC will reveal its latest policy statement at 14:00 ET.
S&P 500 +6.6% YTD
Nasdaq Composite +6.4% YTD
Dow Jones Industrial Average +2.0% YTD
Russell 2000 -1.8% YTD
DJ30 -70.48 NASDAQ -2.21 SP500 -8.96 NASDAQ Adv/Vol/Dec 1396/1.96 bln/1347 NYSE Adv/Vol/Dec 1194/614.9 mln/1831 3:35 pm :
Aug gold fell into negative territory after trading as high as $1310.30 per ounce in morning action as the dollar index strengthened. The yellow metal brushed a session low of $1295.50 per ounce and eventually settled with a 0.4% loss at $1298.20 per ounce.
Sep silver also pulled back from its session high of $20.79 per ounce set in early morning pit trade and brushed a session low of $20.50 per ounce. It inched slightly higher heading into the close and settled 1 cent higher at $20.58 per ounce.
Sep crude oil extended yesterday's losses as the stronger dollar index weighed on prices. The energy component spent its entire floor session in the red, trading as low as $100.32 per barrel. Unable to gain buying support, it settled at $100.91 per barrel, or 0.8% lower.
Sep natural gas dipped to a session low of $3.74 per MMBtu in morning action and chopped around slightly below the unchanged level. Buyers stepped in during the last hour of floor trade and took prices up as high as $3.83 per MMBtu. Natural gas settled at $3.82 per MMBtu, or 1.3% higher.
Like the broader market, the technology sector vacillated on Tuesday before giving way to some late selling pressure. The indecisive nature of the trading action for most of the session could be pinned on a wait-and-see stance in front of Wednesday's session, which will include the advance estimate for second quarter GDP (Briefing.com consensus 3.2%), the ADP Employment Change report for July (Briefing.com consensus 215,000), and the FOMC decision.
There was also some hesitation ahead of Twitter's (TWTR 38.59, +0.66) earnings report after the close and amid some nettlesome headlines reporting new sanctions being levied against Russia by the US and the EU.
Influential newsflow within the technology sector was limited as most of the headlines detailed minor developments that had little to no bearing on trading sentiment within the technology sector.
Some exceptions to the latter observation included the earnings report from Corning (GLW 20.00, -2.05) and the word from Windstream (WIN 11.83, +1.30) that the IRS cleared it to spin off certain telecommunication network assets into an independent, publicly-traded REIT.
The news from Windstream put a healthy bid in the telecom services sector as market participants banked on other companies, like Verizon (VZ 51.97, +0.39), AT&T (T 36.59, +0.94), and CenturyLink (CTL 39.90, +2.19), following suit. UBS poured some cold water on the notion, contending that AT&T and Verizon would be unlikely to consider a similar move since it would force them to open up their networks to competitors.
The telecom stocks saw stronger gains get pared as the session progressed, yet collectively they still stood out as one of the best-performing areas in Tuesday's market.
Corning for its part was one of the market's biggest laggards. It dropped nearly 10% after coming up short of EPS expectations for the June quarter and cutting its full-year outlook for cover glass shipment growth to 20% from more than 24%. That reduction was pinned on weaker than expected demand in the tablet market.
Separately, Blackberry's (BBRY 9.51, -0.44) slide continued after Ford Motor (F 17.57, -0.07) said it will be replacing Blackberry phones for approximately 3300 employees with Apple (AAPL 98.38, -0.64) iPhones by the end of the year. That's an obvious plus for Apple, yet there wasn't a counter trade in its stock, which slipped 0.7% and acted as an influential weight on the technology sector along with IBM (IBM 194.57, -1.21).
Elsewhere, RF Micro Devices (RFMD 11.38, +0.46) caught a bid on some takeover rumors while Microstrategy (MSTR 150.37, +12.84) jumped nicely after announcing a restructuring plan to streamline its workforce and get its cost structure more in-line with its business strategy. Shares of MSTR were also upgraded by JMP Securities to Market Outperform from Market Perform.
Losses in Intel (INTC 34.19, -0.04), Qualcomm (QCOM 75.31, -0.52), Texas Instruments (TXN 46.77, -0.58), and Applied Materials (AMAT 21.19, -0.17) held back the SOX Index, which dropped 0.3%. Meanwhile, Kulicke & Soffa (KLIC 14.20, +0.43) got a nice boost after providing better than expected revenue guidance for its fiscal fourth quarter and outlegged an otherwise weak semiconductor equipment group.
Postscript:
After the close, Twitter reported a small but unexpected profit for its second quarter on revenue growth of 124% that also exceeded expectations. The company also reported that average monthly active users were 271 mln as of June 30, 2014, representing 24% growth on a year-over-year basis.
Shares of TWTR were skyrocketing in after hours trading. They were up 35% as of this posting.
4:23 pm Cray beats by $0.08, beats on revs; guides Q3 revs below consensus; guides FY14 revs in-line (CRAY) : Reports Q2 (Jun) loss of $0.22 per share, $0.08 better than the Capital IQ Consensus Estimate of ($0.30); revenues rose 0.7% year/year to $85.1 mln vs the $74.8 mln consensus.
Outlook: Co states, "For 2014, while a wide range of results remains possible, the company anticipates revenue to be in the range of $600 million for the year and, as previously indicated, to be heavily weighted to the fourth quarter as has been typical in recent years. Non-GAAP gross margin for 2014 is anticipated to be in the mid-30% range. Total non-GAAP operating expenses for the year are anticipated to be about $175 mln. Based on this outlook, the company expects to be profitable on both a GAAP and non-GAAP basis for 2014."Guidance: Co issues downside guidance for Q3, sees Q3 revs of $125 mln vs. $156.48 mln Capital IQ Consensus Estimate. Co issues in-line guidance for FY14, sees FY14 revs of $600 mln vs. $599.54 mln Capital IQ Consensus Estimate.
4:12 pm Applied Micro reports EPS in-line, misses on revs (AMCC) : Reports Q1 (Jun) net of breakeven, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of ($0.00); revenues fell 7.2% year/year and fell 3% sequentially to $50.3 mln vs the $52.1 mln consensus.
"We are very pleased to report that we have shipped initial production X-Gene units. Purchase orders continue to grow and backlog is building. The creation of the ARM 64-bit based server category is underway.""We experienced strong demand for our connectivity products while we saw a sharp decline in legacy PowerPC embedded products. The contributions of the base business continue to support our growth initiatives."
4:07 pm Power Integrations beats by $0.03, reports revs in-line; guides Q3 revs in-line (POWI) : Reports Q2 (Jun) earnings of $0.61 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.58; revenues rose 1.3% year/year to $89 mln vs the $88.95 mln consensus. Co issues in-line guidance for Q3, sees Q3 revs of $92-97 mln vs. $96.74 mln Capital IQ Consensus Estimate.Non-GAAP gross margin is expected to be between 55 percent and 55.5 percent. (Excludes approximately $0.3 million of stock-based compensation and $0.6 million of amortization of acquisition-related intangibles.) GAAP gross margin is expected to be between 54 percent and 54.5 percent. Operating expenses (GAAP and non-GAAP) are expected to be flat to slightly lower compared with the second quarter.
12:18 pm 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
LVLT (47.04 +4.75%): Beat on EPS by $0.06, beat on revs; announced proposed private offering of senior notes by subsidiary, Level 3 Escrow II, that mature in 2022 valued at $600 mln.
CTL (39.16 +3.85%): Telecoms trading higher on WIN REIT news (T also higher).
WM (45.3 +3.21%): Beat on EPS by $0.01, missed on revs; plans to meet or exceed its FY14 EPS guidance; executed agreements to repurchase $600 mln in shares; signed definitive agreement for $1.94 bln divestiture of Wheelabrator Technologies to Energy Capital Partners.
Large Cap Losers
GLW (19.9 -9.75%): Missed on EPS by $0.01, beat on revs; sees continued growth.
EMN (82.21 -7.29%): Beat on EPS by $0.08, slightly missed on revs; reaffirmed FY14 EPS guidance.
ETN (72.06 -6.11%): Reported EPS in-line, revs in-line; guided Q3 EPS below consensus; lowered high end of FY14 EPS guidance.
Mid Cap Gainers
MDSO (46.1 +17.72%): Reported EPS in-line, beat on revs; guided FY14 revs in-line.
CGNX (44.37 +17.38%): Beat on EPS by $0.10, beat on revs; guided Q3 revs well above consensus.
IDTI (15.19 +12.27%): Beat on EPS by $0.01, beat on revs; announced that an IDT wireless power receiver was incorporated on LG's latest flagship G3 smartphone; tgt raised to $20 at Craig Hallum.
Mid Cap Losers
OSK (46.65 -12.3%): Missed on EPS by $0.14, reported revs in-line; guided FY14 EPS below consensus, revs below consensus.
HLF (60.35 -10.57%): Missed on EPS by $0.02, missed on revs; guided Q3 EPS in-line; guided FY14 EPS in-line.
SSW (22.24 -6.73%): Missed on EPS by $0.02, reported revs in-line.
12:04 pm Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (103) outpacing new lows (71) (:SCANX) : Stocks that traded to 52 week highs: AAPL, ABAX, ACH, AEM, AKS, AMID, APD, ARLP, ARRS, BABY, BBD, BBL, BHP, BNS, CGNX, CHA, CHE, CHTR, CHU, CM, CMCSA, CMG, CNSL, CTL, CTRP, CVC, DMLP, ECF, EDUC, EFX, ENVE, EQR, FLT, FSRV, FTR, GCI, GILD, GLP, GPRE, GRUB, GTIV, HCA, HLS, HNRG, HPP, HPQ, INTU, IPDN, IPG, IPHS, ITUB, KALU, KTWO, LAWS, LEJU, LVLT, LYB, MITSY, MMC, MSTR, NDAQ, NTES, NTRS, NTT, NVEC, OPB, OVBC, PKX, Q, REX, RFMD, RGA, SAVE, SBAC, SCG, SEM, SGC, SHG, SIMO, SKX, SNCR, SRC, SUMR, SUSS, SYA, T, TAHO, TCX, TD, THC, TMH, TOUR, TQNT, TRNS, TWC, TWTC, UDR, UFI, UHS, VZ, WIN, XL, XOM
Stocks that traded to 52 week lows: ACPW, ACXM, AVL, AVP, AWRE, BCOV, BDE, BPI, BRP, CAS, CGA, CLRX, CNHI, COT, CPWR, CVLT, DCTH, DSX, DVR, ECYT, EDMC, ENTR, ESI, FRAN, GLF, GLT, GNC, HLIT, IBP, IKAN, INBK, IPAR, KBIO, KBR, LPX, MDCO, MTZ, NCFT, NKSH, NPK, NPTN, NWBI, OCRX, OFLX, OGXI, PIKE, PT, QLGC, QNST, QRM, RCPI, RNDY, RSH, SAGE, SCL, SCVL, SKYW, SQI, TAXI, TCCO, TELK, TLMR, TNDM, TR, TRGT, TSE, TTS, TUP, UBS, VSAR, ZGNX
ETFs that traded to 52 week highs: EEM, EPP, EWH, EWY, FXI, GXC, IHF, IYZ, SLX, TLT, XLK
ETFs that traded to 52 week lows: RJA, TBT
11:16 am VirnetX Holding announces denial of three Microsoft (MSFT) petitions for inter partes review (VHC) : Co announced that last week, the USPTO denied three petitions for inter partes review filed by Microsoft (MSFT). These petitions sought review of certain claims of VirnetX's U.S. Patent Nos. 6,502,135 and 7,188,180. Like some of the petitions filed by Apple (AAPL) and all of the petitions filed by RPX, the USPTO found that Microsoft's petitions were not filed within the time limit imposed by the statute and declined to institute inter partes review. Microsoft was found to infringe both '135 and '180 patents in a prior lawsuit filed by VirnetX against Microsoft.
10:21 am Solar Power entering into purchase agreement for $25-million private placement (SOPW) : When received, the company intends to use the net proceeds from the sale of the shares for expansion of its global PV project activities, continued investment in ramping its YES! Solar solution for the residential and small business segments, for working capital purposes and to pay down debt.
9:32 am Trina Solar responds to U.S. Department of Commerce's announcement of preliminary findings in antidumping investigations on certain solar energy products originating in mainland China and Taiwan; opposes the preliminary findings and believes the allegations made by SolarWorld are contrary to the principles of free and fair trade and are unfounded (TSL) : Co notes the preliminary findings on July 25, 2014 by the U.S. Department of Commerce relating to the antidumping duty investigations concerning imports into the United States of certain crystalline silicon photovoltaic products from mainland China and Taiwan.
Trina Solar is one of the China-based suppliers of these products to the United States. The U.S. Department of Commerce preliminarily determined that certain crystalline silicon photovoltaic products from mainland China and Taiwan have been sold in the United States at dumping margins ranging from 26.33% to 58.87% and from 27.59% to 44.18%, respectively. Trina Solar was a compulsory respondent to the China investigation in which it received a preliminary dumping margin of 26.33%, the lowest among the Chinese exporters. Trina Solar opposes the preliminary findings and believes the allegations made by SolarWorld are contrary to the principles of free and fair trade and are unfounded.TriQuint Semiconductor (TQNT) announced that it is the first gallium nitride RF chip manufacturer to achieve Manufacturing Readiness Level 9.
Silicom (SILC) has achieved its first design win for the Silicom Coleto Creek encryption and compression card. The design win is from one of co's existing customers, a provider of smart network solutions, who will use Silicom's Coleto Creek and Silicom Quad-Port 10G Networking cards in one of its next-generation network appliances. Sales related to these design wins are expected to triple the revs from this customer to ~ $1.5 mln per year.
SunPower (SPWR) has started construction on the 135-megawatt Quinto Solar Project in Merced County, Calif. In accordance with the company's recently announced holdco strategy, co expects to own and operate the solar power plant during construction.
IDTI +7.2% (announced that an IDT wireless power receiver was incorporated on LG's latest flagship G3 smartphone; co also reported earnings)
8:03 am IPG Photonics beats by $0.07, beats on revs; guides Q3 EPS in-line, revs in-line (IPGP) : Reports Q2 (Jun) earnings of $0.92 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.85; revenues rose 14.3% year/year to $192.2 mln vs the $182.6 mln consensus.
Guidance: Co issues in-line guidance for Q3, sees EPS of $0.88-$1.03 vs. $0.94 Capital IQ Consensus Estimate; sees Q3 revs of $190-$205 mln vs. $195.55 mln Capital IQ Consensus Estimate. Commentary: "As we enter the second half of 2014, we remain focused on generating profitable growth through expanding our business with existing and new OEMs, developing new applications and introducing new fiber laser-based products. Order flow in Q2 was strong and, with a book-to-bill ratio of greater than one, we anticipate sequential and year-over-year revenue growth for the third quarter. We will continue to target margins in the range of 50% to 55% while making strategic investments to enhance our product pipeline and expand our worldwide infrastructure."
7:53 am Aixtron misses by $0.04, misses on revs; reiterates 2014 guidance (AIXG) : Reports Q2 (Jun) loss of 0.10 per share, 0.04 worse than the Capital IQ Consensus Estimate of ( 0.06); revenues rose 2.0% year/year to 46.2 mln vs the 47.54 mln consensus.
AIXTRON's Q2/2014 equipment order intake, at EUR 38.2m, showed a year-on-year increase of 25% from the EUR 30.5m in Q2/2013. Sequentially, the equipment order intake was also up (Q1/2014: EUR 37.7m), representing the fifth consecutive quarter of rising orders. The total equipment order backlog of EUR 66.4m as at June 30, 2014 was 14% higher than the 2014 opening backlog of EUR 58.1m.Management reiterates its original guidance for fiscal year 2014 made at the end of February, for revenues to be in line with those of last year. Concurrently, the Company is not expected to be profitable on an EBIT basis over the course of this year. Nevertheless, Management continues to expect a year-on-year improvement in earnings due to progress made in cost savings and restructuring.
7:34 am Micros Systems: expiration date of tender offer for Micros Systems, Inc. shares extended to August 15, 2014; extension is in accordance with Oracle (ORCL) merger agreement (MCRS) : Oracle (ORCL) announced that, in accordance with the terms of its merger agreement with Micros Systems, Inc., Rocket Acquisition Corporation, a subsidiary of OC Acquisition, a subsidiary of Oracle Corporation, has extended its all-cash tender offer for $68.00/share for all of the issued and outstanding shares of common stock, par value of $0.025/share, of MICROS Systems, Inc. to 12:00 Midnight, New York City time, at the end of August 15, 2014, unless further extended. The tender offer was previously set to expire at 12:00 Midnight, New York City time, at the end of July 31, 2014.
7:18 am Corning misses by $0.01, beats on revs; sees continued growth (GLW) : Reports Q2 (Jun) earnings of $0.37 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.38; revenues rose 27.5% year/year to $2.58 bln vs the $2.53 bln consensus.
Display Technologies segment core sales were $1.1 billion, a 62% increase over core sales of $670 million a year ago. The sales improvement was driven by the consolidation of Corning Precision Materials. Core earnings for the quarter increased by 9% from the year-ago comparable period. LCD glass volume grew in the low teens percentage sequentially and was higher than anticipated. As the company expected, price declines were more moderate versus the first quarter. Optical Communications segment sales were $686 million, a 14% increase from $601 million in quarter two of last year. The sales increase was stronger than anticipated, driven primarily by continued demand for Corning's fiber-to-the-home solutions in North America and Europe.Outlook:
"We have accomplished a great deal with our first-half business performance. We expect the third quarter will bring Corning's eighth consecutive year-over-year quarterly sales (consensus +27%) and earnings (consensus $0.42 vs. $0.33 LY) improvement, and we are on track for strong earnings growth for the full year," James B. Flaws, vice chairman and chief financial officer, remarked. In the third quarter, the company anticipates its LCD glass volume will be up by a mid-single digit percentage, sequentially. Glass price declines are expected to moderate further, returning to the rates experienced through most of 2013. Optical Communications segment third-quarter sales are expected to increase by a mid-single digit percentage year over year, driven by continued strong sales of fiber-to-the-home solutions in North America and Europe. For the Environmental Technologies segment, third-quarter year-over-year sales are anticipated to grow by 20% to 25%. Corning continues to benefit from strong demand for its heavy-duty diesel emissions control products in North America, China, and Europe. Specialty Materials segment sales are expected to grow ~10% sequentially as demand for Gorilla Glass increases in the second half of the year. Life Sciences segment sales are expected to be up slightly on a year-over-year comparison. "Synergies from the Corning Precision Materials acquisition are rapidly being achieved, and we expect to surpass our original goal. The company is delivering excellent growth in our Environmental Technologies and Optical Communications business segments, which we expect will continue through the second half of this year," Flaws said. "Corning continues to invest in research and development to drive our future growth," he pointed out. "We are working on new glass substrates for high-performance displays to enhance consumer viewing experiences, improved diesel emissions filters and substrates, and advancements in fiber-to-the-home and next-generation, data-center network solutions. Additionally, we have developments underway in wireless communications, and we plan to introduce a new, enhanced generation of our market-leading Gorilla Glass later this year."
7:06 am Canadian Solar comments on the Department of Commerce preliminary anti-dumping determination; says 'preliminary AD announcement will definitely jeopardize what we have worked so hard for and have achieved in the last few years in the U.S. market' (CSIQ) : Co released this statement on behalf of Thomas Koerner, General Manager of the cos Americas division, in response to the United States Department of Commerce's preliminary decision made last Friday to impose anti-dumping tariffs of up to 44.18% on certain Taiwanese photovoltaic cell imports:
Comments that they are deeply disappointed by the DOC's decision, especially in context of the overwhelming damaging impact on the U.S. solar industryStates this preliminary AD announcement will jeopardize what they have worked so hard for and have achieved in the last few years in the U.S. market: solar industry job creation and affordable clean energy - from small residential installations to large utility scale power plants. While they applaud the government's vocal dedication to sustainable development and job creation via fostering the solar market; the pattern of protectionism directly contradicts these commitments. They declare that this decision in favor of one non-competitive PV manufacturer will cost tens and thousands of jobs across the entire U.S. solar industry, which currently employs more than 140,000 local workers
7:03 am Entegris beats by $0.02, beats on revs; guides Q3 EPS below consensus, revs in-line (ENTG) : Reports Q2 (Jun) earnings of $0.20 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.18; revenues rose 41.7% year/year to $251.6 mln vs the $240.2 mln consensus. Co issues mixed guidance for Q3, sees EPS of $0.15-0.20, excluding non-recurring items, vs. $0.21 Capital IQ Consensus Estimate; sees Q3 revs of $255-275 mln vs. $278.34 mln Capital IQ Consensus Estimate.
7:00 am Kulicke & Soffa misses by $0.01, beats on revs; guides Q4 revs above consensus (KLIC) : Reports Q3 (Jun) earnings of $0.34 per share, $0.01 worse than the GAAP Capital IQ Consensus Estimate of $0.35; revenues rose 27.8% year/year to $180.5 mln vs the $170 mln consensus; gross margin +50 bps YoY to 47.2%.
Co issues upside guidance for Q4, sees Q4 revs of ~$185-195 mln vs. $180.78 mln Capital IQ Consensus.
"The 58% revenue increase, over the March Quarter, was driven by increased demand for our market-leading equipment solutions. While these offerings individually serve targeted segments, they collectively cover a wide-range of the industry's interconnect requirements. We expect to drive further enhancements to the diversity and breadth of our equipment portfolio as our ongoing Advanced Packaging investments come to fruition."
Once again, market participants were focused on quarterly reports in the early going, but geopolitical worries overshadowed the impact of mostly better than expected earnings. Specifically, equities retreated after it was reported that European EU officials have prepared the new set of sanctions against Russia. The imposition of new sanctions may pique concerns about a boomerang effect on the global economy, and Europe in particular, but it is worth noting that the Russian ruble and Market Vectors Russia ETF (RSX 23.85, -0.50) strengthened in reaction to the news.
The reports of forthcoming sanctions were followed by afternoon headlines from Washington indicating the Treasury Department has added VTB, the Bank of Moscow, and Russian Agriculture Bank to the sanction list. After the news crossed the wires, the RSX and the ruble dropped to fresh lows, as did the S&P 500.
Nine of ten sectors registered losses with the industrial space (-1.2%) spending the day at the bottom of the leaderboard. The sector was pressured by transport stocks after UPS (UPS 98.86, -3.80) reported disappointing results and guided lower. For its part, the Dow Jones Transportation Average logged its fourth consecutive loss, tumbling 1.4% with 17 of its 20 components ending in the red.
Unlike the industrial sector, other cyclical groups fared a bit better. Financials (-0.6%) and materials (-0.7%) lagged, while consumer discretionary (-0.3%) and technology (-0.2%) displayed relative strength.
In the discretionary sector, Honda Motor (HMC 36.02, +0.84) advanced 2.4% after reporting a slim earnings beat. The carmaker underpinned the sector, which also drew strength from retailers. The SPDR S&P Retail ETF (XRT 84.24, 0.00) ended flat.
Elsewhere, the relative strength of the technology sector kept the broader market from sliding deeper into the red. High-beta chipmakers contributed to the outperformance with the likes of AMD (AMD 3.79, +0.06), Broadcom (BRCM 37.99, +0.27), and Taiwan Semiconductor (TSM 20.55, +0.18) adding between 0.7% and 1.6%.
Similarly, biotech companies also rallied with the iShares Nasdaq Biotechnology ETF (IBB 254.78, +2.87) ending higher by 1.1%. Meanwhile, the health care sector settled flat.
On the upside, only one sector finished in the green. Telecom services (+2.2%) rallied after Windstream (WIN 11.83, +1.30) was cleared by the Internal Revenue Service to spin off its assets into a publically-traded REIT. Peers AT&T (T 36.59, +0.94) and Verizon (VZ 51.97, +0.39) gained 2.6% and 0.8%, respectively on speculation they could also explore conversions into REITs.
On the fixed income side, Treasuries ended the session with modest gains that pressured the 10-yr yield lower by two basis points to 2.46%.
Participation was on the light side with 615 million shares changing hands at the NYSE.
Economic data was limited to the Case-Shiller 20-city Index and the Consumer Confidence report:
The Case-Shiller 20-city Home Price Index for May rose 9.3%, while a 10.0% increase had been expected by the Briefing.com consensus
This followed the previous month's increase of 10.8%
The Conference Board's Consumer Confidence Index spiked to 90.9 in July from an upwardly revised 86.4 (from 85.2), while the Briefing.com consensus pegged the Index at 85.6
Consumer confidence is now at its highest level since October 2007
The Present Situation Index increased to 88.3 from 86.3 and the Expectations Index rose to 92.7 from 86.4
Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET, while the ADP Employment Change for July (Briefing.com consensus 215K) will be reported at 8:15 ET. The advance reading of Q2 GDP will be released at 8:30 ET (consensus 3.2%), while the FOMC will reveal its latest policy statement at 14:00 ET.
S&P 500 +6.6% YTD
Nasdaq Composite +6.4% YTD
Dow Jones Industrial Average +2.0% YTD
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DJ30 -70.48 NASDAQ -2.21 SP500 -8.96 NASDAQ Adv/Vol/Dec 1396/1.96 bln/1347 NYSE Adv/Vol/Dec 1194/614.9 mln/1831 3:35 pm :
Aug gold fell into negative territory after trading as high as $1310.30 per ounce in morning action as the dollar index strengthened. The yellow metal brushed a session low of $1295.50 per ounce and eventually settled with a 0.4% loss at $1298.20 per ounce.
Sep silver also pulled back from its session high of $20.79 per ounce set in early morning pit trade and brushed a session low of $20.50 per ounce. It inched slightly higher heading into the close and settled 1 cent higher at $20.58 per ounce.
Sep crude oil extended yesterday's losses as the stronger dollar index weighed on prices. The energy component spent its entire floor session in the red, trading as low as $100.32 per barrel. Unable to gain buying support, it settled at $100.91 per barrel, or 0.8% lower.
Sep natural gas dipped to a session low of $3.74 per MMBtu in morning action and chopped around slightly below the unchanged level. Buyers stepped in during the last hour of floor trade and took prices up as high as $3.83 per MMBtu. Natural gas settled at $3.82 per MMBtu, or 1.3% higher.
Like the broader market, the technology sector vacillated on Tuesday before giving way to some late selling pressure. The indecisive nature of the trading action for most of the session could be pinned on a wait-and-see stance in front of Wednesday's session, which will include the advance estimate for second quarter GDP (Briefing.com consensus 3.2%), the ADP Employment Change report for July (Briefing.com consensus 215,000), and the FOMC decision.
There was also some hesitation ahead of Twitter's (TWTR 38.59, +0.66) earnings report after the close and amid some nettlesome headlines reporting new sanctions being levied against Russia by the US and the EU.
Influential newsflow within the technology sector was limited as most of the headlines detailed minor developments that had little to no bearing on trading sentiment within the technology sector.
Some exceptions to the latter observation included the earnings report from Corning (GLW 20.00, -2.05) and the word from Windstream (WIN 11.83, +1.30) that the IRS cleared it to spin off certain telecommunication network assets into an independent, publicly-traded REIT.
The news from Windstream put a healthy bid in the telecom services sector as market participants banked on other companies, like Verizon (VZ 51.97, +0.39), AT&T (T 36.59, +0.94), and CenturyLink (CTL 39.90, +2.19), following suit. UBS poured some cold water on the notion, contending that AT&T and Verizon would be unlikely to consider a similar move since it would force them to open up their networks to competitors.
The telecom stocks saw stronger gains get pared as the session progressed, yet collectively they still stood out as one of the best-performing areas in Tuesday's market.
Corning for its part was one of the market's biggest laggards. It dropped nearly 10% after coming up short of EPS expectations for the June quarter and cutting its full-year outlook for cover glass shipment growth to 20% from more than 24%. That reduction was pinned on weaker than expected demand in the tablet market.
Separately, Blackberry's (BBRY 9.51, -0.44) slide continued after Ford Motor (F 17.57, -0.07) said it will be replacing Blackberry phones for approximately 3300 employees with Apple (AAPL 98.38, -0.64) iPhones by the end of the year. That's an obvious plus for Apple, yet there wasn't a counter trade in its stock, which slipped 0.7% and acted as an influential weight on the technology sector along with IBM (IBM 194.57, -1.21).
Elsewhere, RF Micro Devices (RFMD 11.38, +0.46) caught a bid on some takeover rumors while Microstrategy (MSTR 150.37, +12.84) jumped nicely after announcing a restructuring plan to streamline its workforce and get its cost structure more in-line with its business strategy. Shares of MSTR were also upgraded by JMP Securities to Market Outperform from Market Perform.
Losses in Intel (INTC 34.19, -0.04), Qualcomm (QCOM 75.31, -0.52), Texas Instruments (TXN 46.77, -0.58), and Applied Materials (AMAT 21.19, -0.17) held back the SOX Index, which dropped 0.3%. Meanwhile, Kulicke & Soffa (KLIC 14.20, +0.43) got a nice boost after providing better than expected revenue guidance for its fiscal fourth quarter and outlegged an otherwise weak semiconductor equipment group.
Postscript:
After the close, Twitter reported a small but unexpected profit for its second quarter on revenue growth of 124% that also exceeded expectations. The company also reported that average monthly active users were 271 mln as of June 30, 2014, representing 24% growth on a year-over-year basis.
Shares of TWTR were skyrocketing in after hours trading. They were up 35% as of this posting.
4:23 pm Cray beats by $0.08, beats on revs; guides Q3 revs below consensus; guides FY14 revs in-line (CRAY) : Reports Q2 (Jun) loss of $0.22 per share, $0.08 better than the Capital IQ Consensus Estimate of ($0.30); revenues rose 0.7% year/year to $85.1 mln vs the $74.8 mln consensus.
Outlook: Co states, "For 2014, while a wide range of results remains possible, the company anticipates revenue to be in the range of $600 million for the year and, as previously indicated, to be heavily weighted to the fourth quarter as has been typical in recent years. Non-GAAP gross margin for 2014 is anticipated to be in the mid-30% range. Total non-GAAP operating expenses for the year are anticipated to be about $175 mln. Based on this outlook, the company expects to be profitable on both a GAAP and non-GAAP basis for 2014."Guidance: Co issues downside guidance for Q3, sees Q3 revs of $125 mln vs. $156.48 mln Capital IQ Consensus Estimate. Co issues in-line guidance for FY14, sees FY14 revs of $600 mln vs. $599.54 mln Capital IQ Consensus Estimate.
4:12 pm Applied Micro reports EPS in-line, misses on revs (AMCC) : Reports Q1 (Jun) net of breakeven, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of ($0.00); revenues fell 7.2% year/year and fell 3% sequentially to $50.3 mln vs the $52.1 mln consensus.
"We are very pleased to report that we have shipped initial production X-Gene units. Purchase orders continue to grow and backlog is building. The creation of the ARM 64-bit based server category is underway.""We experienced strong demand for our connectivity products while we saw a sharp decline in legacy PowerPC embedded products. The contributions of the base business continue to support our growth initiatives."
4:07 pm Power Integrations beats by $0.03, reports revs in-line; guides Q3 revs in-line (POWI) : Reports Q2 (Jun) earnings of $0.61 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.58; revenues rose 1.3% year/year to $89 mln vs the $88.95 mln consensus. Co issues in-line guidance for Q3, sees Q3 revs of $92-97 mln vs. $96.74 mln Capital IQ Consensus Estimate.Non-GAAP gross margin is expected to be between 55 percent and 55.5 percent. (Excludes approximately $0.3 million of stock-based compensation and $0.6 million of amortization of acquisition-related intangibles.) GAAP gross margin is expected to be between 54 percent and 54.5 percent. Operating expenses (GAAP and non-GAAP) are expected to be flat to slightly lower compared with the second quarter.
12:18 pm 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
LVLT (47.04 +4.75%): Beat on EPS by $0.06, beat on revs; announced proposed private offering of senior notes by subsidiary, Level 3 Escrow II, that mature in 2022 valued at $600 mln.
CTL (39.16 +3.85%): Telecoms trading higher on WIN REIT news (T also higher).
WM (45.3 +3.21%): Beat on EPS by $0.01, missed on revs; plans to meet or exceed its FY14 EPS guidance; executed agreements to repurchase $600 mln in shares; signed definitive agreement for $1.94 bln divestiture of Wheelabrator Technologies to Energy Capital Partners.
Large Cap Losers
GLW (19.9 -9.75%): Missed on EPS by $0.01, beat on revs; sees continued growth.
EMN (82.21 -7.29%): Beat on EPS by $0.08, slightly missed on revs; reaffirmed FY14 EPS guidance.
ETN (72.06 -6.11%): Reported EPS in-line, revs in-line; guided Q3 EPS below consensus; lowered high end of FY14 EPS guidance.
Mid Cap Gainers
MDSO (46.1 +17.72%): Reported EPS in-line, beat on revs; guided FY14 revs in-line.
CGNX (44.37 +17.38%): Beat on EPS by $0.10, beat on revs; guided Q3 revs well above consensus.
IDTI (15.19 +12.27%): Beat on EPS by $0.01, beat on revs; announced that an IDT wireless power receiver was incorporated on LG's latest flagship G3 smartphone; tgt raised to $20 at Craig Hallum.
Mid Cap Losers
OSK (46.65 -12.3%): Missed on EPS by $0.14, reported revs in-line; guided FY14 EPS below consensus, revs below consensus.
HLF (60.35 -10.57%): Missed on EPS by $0.02, missed on revs; guided Q3 EPS in-line; guided FY14 EPS in-line.
SSW (22.24 -6.73%): Missed on EPS by $0.02, reported revs in-line.
12:04 pm Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (103) outpacing new lows (71) (:SCANX) : Stocks that traded to 52 week highs: AAPL, ABAX, ACH, AEM, AKS, AMID, APD, ARLP, ARRS, BABY, BBD, BBL, BHP, BNS, CGNX, CHA, CHE, CHTR, CHU, CM, CMCSA, CMG, CNSL, CTL, CTRP, CVC, DMLP, ECF, EDUC, EFX, ENVE, EQR, FLT, FSRV, FTR, GCI, GILD, GLP, GPRE, GRUB, GTIV, HCA, HLS, HNRG, HPP, HPQ, INTU, IPDN, IPG, IPHS, ITUB, KALU, KTWO, LAWS, LEJU, LVLT, LYB, MITSY, MMC, MSTR, NDAQ, NTES, NTRS, NTT, NVEC, OPB, OVBC, PKX, Q, REX, RFMD, RGA, SAVE, SBAC, SCG, SEM, SGC, SHG, SIMO, SKX, SNCR, SRC, SUMR, SUSS, SYA, T, TAHO, TCX, TD, THC, TMH, TOUR, TQNT, TRNS, TWC, TWTC, UDR, UFI, UHS, VZ, WIN, XL, XOM
Stocks that traded to 52 week lows: ACPW, ACXM, AVL, AVP, AWRE, BCOV, BDE, BPI, BRP, CAS, CGA, CLRX, CNHI, COT, CPWR, CVLT, DCTH, DSX, DVR, ECYT, EDMC, ENTR, ESI, FRAN, GLF, GLT, GNC, HLIT, IBP, IKAN, INBK, IPAR, KBIO, KBR, LPX, MDCO, MTZ, NCFT, NKSH, NPK, NPTN, NWBI, OCRX, OFLX, OGXI, PIKE, PT, QLGC, QNST, QRM, RCPI, RNDY, RSH, SAGE, SCL, SCVL, SKYW, SQI, TAXI, TCCO, TELK, TLMR, TNDM, TR, TRGT, TSE, TTS, TUP, UBS, VSAR, ZGNX
ETFs that traded to 52 week highs: EEM, EPP, EWH, EWY, FXI, GXC, IHF, IYZ, SLX, TLT, XLK
ETFs that traded to 52 week lows: RJA, TBT
11:16 am VirnetX Holding announces denial of three Microsoft (MSFT) petitions for inter partes review (VHC) : Co announced that last week, the USPTO denied three petitions for inter partes review filed by Microsoft (MSFT). These petitions sought review of certain claims of VirnetX's U.S. Patent Nos. 6,502,135 and 7,188,180. Like some of the petitions filed by Apple (AAPL) and all of the petitions filed by RPX, the USPTO found that Microsoft's petitions were not filed within the time limit imposed by the statute and declined to institute inter partes review. Microsoft was found to infringe both '135 and '180 patents in a prior lawsuit filed by VirnetX against Microsoft.
10:21 am Solar Power entering into purchase agreement for $25-million private placement (SOPW) : When received, the company intends to use the net proceeds from the sale of the shares for expansion of its global PV project activities, continued investment in ramping its YES! Solar solution for the residential and small business segments, for working capital purposes and to pay down debt.
9:32 am Trina Solar responds to U.S. Department of Commerce's announcement of preliminary findings in antidumping investigations on certain solar energy products originating in mainland China and Taiwan; opposes the preliminary findings and believes the allegations made by SolarWorld are contrary to the principles of free and fair trade and are unfounded (TSL) : Co notes the preliminary findings on July 25, 2014 by the U.S. Department of Commerce relating to the antidumping duty investigations concerning imports into the United States of certain crystalline silicon photovoltaic products from mainland China and Taiwan.
Trina Solar is one of the China-based suppliers of these products to the United States. The U.S. Department of Commerce preliminarily determined that certain crystalline silicon photovoltaic products from mainland China and Taiwan have been sold in the United States at dumping margins ranging from 26.33% to 58.87% and from 27.59% to 44.18%, respectively. Trina Solar was a compulsory respondent to the China investigation in which it received a preliminary dumping margin of 26.33%, the lowest among the Chinese exporters. Trina Solar opposes the preliminary findings and believes the allegations made by SolarWorld are contrary to the principles of free and fair trade and are unfounded.TriQuint Semiconductor (TQNT) announced that it is the first gallium nitride RF chip manufacturer to achieve Manufacturing Readiness Level 9.
Silicom (SILC) has achieved its first design win for the Silicom Coleto Creek encryption and compression card. The design win is from one of co's existing customers, a provider of smart network solutions, who will use Silicom's Coleto Creek and Silicom Quad-Port 10G Networking cards in one of its next-generation network appliances. Sales related to these design wins are expected to triple the revs from this customer to ~ $1.5 mln per year.
SunPower (SPWR) has started construction on the 135-megawatt Quinto Solar Project in Merced County, Calif. In accordance with the company's recently announced holdco strategy, co expects to own and operate the solar power plant during construction.
IDTI +7.2% (announced that an IDT wireless power receiver was incorporated on LG's latest flagship G3 smartphone; co also reported earnings)
8:03 am IPG Photonics beats by $0.07, beats on revs; guides Q3 EPS in-line, revs in-line (IPGP) : Reports Q2 (Jun) earnings of $0.92 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.85; revenues rose 14.3% year/year to $192.2 mln vs the $182.6 mln consensus.
Guidance: Co issues in-line guidance for Q3, sees EPS of $0.88-$1.03 vs. $0.94 Capital IQ Consensus Estimate; sees Q3 revs of $190-$205 mln vs. $195.55 mln Capital IQ Consensus Estimate. Commentary: "As we enter the second half of 2014, we remain focused on generating profitable growth through expanding our business with existing and new OEMs, developing new applications and introducing new fiber laser-based products. Order flow in Q2 was strong and, with a book-to-bill ratio of greater than one, we anticipate sequential and year-over-year revenue growth for the third quarter. We will continue to target margins in the range of 50% to 55% while making strategic investments to enhance our product pipeline and expand our worldwide infrastructure."
7:53 am Aixtron misses by $0.04, misses on revs; reiterates 2014 guidance (AIXG) : Reports Q2 (Jun) loss of 0.10 per share, 0.04 worse than the Capital IQ Consensus Estimate of ( 0.06); revenues rose 2.0% year/year to 46.2 mln vs the 47.54 mln consensus.
AIXTRON's Q2/2014 equipment order intake, at EUR 38.2m, showed a year-on-year increase of 25% from the EUR 30.5m in Q2/2013. Sequentially, the equipment order intake was also up (Q1/2014: EUR 37.7m), representing the fifth consecutive quarter of rising orders. The total equipment order backlog of EUR 66.4m as at June 30, 2014 was 14% higher than the 2014 opening backlog of EUR 58.1m.Management reiterates its original guidance for fiscal year 2014 made at the end of February, for revenues to be in line with those of last year. Concurrently, the Company is not expected to be profitable on an EBIT basis over the course of this year. Nevertheless, Management continues to expect a year-on-year improvement in earnings due to progress made in cost savings and restructuring.
7:34 am Micros Systems: expiration date of tender offer for Micros Systems, Inc. shares extended to August 15, 2014; extension is in accordance with Oracle (ORCL) merger agreement (MCRS) : Oracle (ORCL) announced that, in accordance with the terms of its merger agreement with Micros Systems, Inc., Rocket Acquisition Corporation, a subsidiary of OC Acquisition, a subsidiary of Oracle Corporation, has extended its all-cash tender offer for $68.00/share for all of the issued and outstanding shares of common stock, par value of $0.025/share, of MICROS Systems, Inc. to 12:00 Midnight, New York City time, at the end of August 15, 2014, unless further extended. The tender offer was previously set to expire at 12:00 Midnight, New York City time, at the end of July 31, 2014.
7:18 am Corning misses by $0.01, beats on revs; sees continued growth (GLW) : Reports Q2 (Jun) earnings of $0.37 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.38; revenues rose 27.5% year/year to $2.58 bln vs the $2.53 bln consensus.
Display Technologies segment core sales were $1.1 billion, a 62% increase over core sales of $670 million a year ago. The sales improvement was driven by the consolidation of Corning Precision Materials. Core earnings for the quarter increased by 9% from the year-ago comparable period. LCD glass volume grew in the low teens percentage sequentially and was higher than anticipated. As the company expected, price declines were more moderate versus the first quarter. Optical Communications segment sales were $686 million, a 14% increase from $601 million in quarter two of last year. The sales increase was stronger than anticipated, driven primarily by continued demand for Corning's fiber-to-the-home solutions in North America and Europe.Outlook:
"We have accomplished a great deal with our first-half business performance. We expect the third quarter will bring Corning's eighth consecutive year-over-year quarterly sales (consensus +27%) and earnings (consensus $0.42 vs. $0.33 LY) improvement, and we are on track for strong earnings growth for the full year," James B. Flaws, vice chairman and chief financial officer, remarked. In the third quarter, the company anticipates its LCD glass volume will be up by a mid-single digit percentage, sequentially. Glass price declines are expected to moderate further, returning to the rates experienced through most of 2013. Optical Communications segment third-quarter sales are expected to increase by a mid-single digit percentage year over year, driven by continued strong sales of fiber-to-the-home solutions in North America and Europe. For the Environmental Technologies segment, third-quarter year-over-year sales are anticipated to grow by 20% to 25%. Corning continues to benefit from strong demand for its heavy-duty diesel emissions control products in North America, China, and Europe. Specialty Materials segment sales are expected to grow ~10% sequentially as demand for Gorilla Glass increases in the second half of the year. Life Sciences segment sales are expected to be up slightly on a year-over-year comparison. "Synergies from the Corning Precision Materials acquisition are rapidly being achieved, and we expect to surpass our original goal. The company is delivering excellent growth in our Environmental Technologies and Optical Communications business segments, which we expect will continue through the second half of this year," Flaws said. "Corning continues to invest in research and development to drive our future growth," he pointed out. "We are working on new glass substrates for high-performance displays to enhance consumer viewing experiences, improved diesel emissions filters and substrates, and advancements in fiber-to-the-home and next-generation, data-center network solutions. Additionally, we have developments underway in wireless communications, and we plan to introduce a new, enhanced generation of our market-leading Gorilla Glass later this year."
7:06 am Canadian Solar comments on the Department of Commerce preliminary anti-dumping determination; says 'preliminary AD announcement will definitely jeopardize what we have worked so hard for and have achieved in the last few years in the U.S. market' (CSIQ) : Co released this statement on behalf of Thomas Koerner, General Manager of the cos Americas division, in response to the United States Department of Commerce's preliminary decision made last Friday to impose anti-dumping tariffs of up to 44.18% on certain Taiwanese photovoltaic cell imports:
Comments that they are deeply disappointed by the DOC's decision, especially in context of the overwhelming damaging impact on the U.S. solar industryStates this preliminary AD announcement will jeopardize what they have worked so hard for and have achieved in the last few years in the U.S. market: solar industry job creation and affordable clean energy - from small residential installations to large utility scale power plants. While they applaud the government's vocal dedication to sustainable development and job creation via fostering the solar market; the pattern of protectionism directly contradicts these commitments. They declare that this decision in favor of one non-competitive PV manufacturer will cost tens and thousands of jobs across the entire U.S. solar industry, which currently employs more than 140,000 local workers
7:03 am Entegris beats by $0.02, beats on revs; guides Q3 EPS below consensus, revs in-line (ENTG) : Reports Q2 (Jun) earnings of $0.20 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.18; revenues rose 41.7% year/year to $251.6 mln vs the $240.2 mln consensus. Co issues mixed guidance for Q3, sees EPS of $0.15-0.20, excluding non-recurring items, vs. $0.21 Capital IQ Consensus Estimate; sees Q3 revs of $255-275 mln vs. $278.34 mln Capital IQ Consensus Estimate.
7:00 am Kulicke & Soffa misses by $0.01, beats on revs; guides Q4 revs above consensus (KLIC) : Reports Q3 (Jun) earnings of $0.34 per share, $0.01 worse than the GAAP Capital IQ Consensus Estimate of $0.35; revenues rose 27.8% year/year to $180.5 mln vs the $170 mln consensus; gross margin +50 bps YoY to 47.2%.
Co issues upside guidance for Q4, sees Q4 revs of ~$185-195 mln vs. $180.78 mln Capital IQ Consensus.
"The 58% revenue increase, over the March Quarter, was driven by increased demand for our market-leading equipment solutions. While these offerings individually serve targeted segments, they collectively cover a wide-range of the industry's interconnect requirements. We expect to drive further enhancements to the diversity and breadth of our equipment portfolio as our ongoing Advanced Packaging investments come to fruition."
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