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Thursday, January 29, 2015 8:30:14 PM
From Briefing.com: The stock market tossed and turned in early action, but its final turn was decidedly higher.
Bolstered by the S&P 500 holding a technical support level at the 1993/1992 level, a rebound in oil prices, and short-covering activity as the rebound effort solidified, the major indices posted some solid gains that enabled them to recoup most of Wednesday's losses.
On the busiest day of earnings reporting yet, the S&P 500 information technology sector (+1.1%) played an influential role in the broader market's advance. Once again, Apple (AAPL 118.90, +3.59, +3.1%) carried the sector load and fortified the recovery effort by the S&P 500.
Below are some of the more notable news items for technology companies that were considered during Thursday's trading activity:
Facebook (FB 78.00, +1.76, +2.3%): After Wednesday's close, the company reported Q4 (Dec) earnings of $0.54 per share, which was ahead of analysts' average expectation. Revenues rose 49.0% year/year to $3.85 bln, also ahead of expectations. Revenue from advertising was $3.59 billion, a 53% increase from the same quarter last year. Mobile advertising revenue represented approximately 69% of advertising revenue for the fourth quarter of 2014, up from approximately 53% of advertising revenue in the fourth quarter of 2013. Monthly active users (MAUs) were 1.39 billion (Briefing.com consensus 1.394 bln) as of December 31, 2014, an increase of 13% year-over-year. Mobile MAUs were 1.19 billion as of December 31, 2014, an increase of 26% year-over-year.
Qualcomm (QCOM 63.69, -7.30, -10.3%): After Wednesday's close, the company reported Q1 (Dec) earnings of $1.34 per share, excluding non-recurring items, which was ahead of analysts' average expectation. Revenues rose 7.2% year/year to $7.1 bln, also ahead of estimates. The company issued in-line guidance for Q2, saying it sees EPS of $1.28-1.40, excluding non-recurring items, and revenues of $6.5-7.1 bln. However, Qualcomm lowered its outlook for the second half of fiscal 2015 in its semiconductor business, QCT, largely driven by the effects of: A shift in share among OEMs at the premium tier, which has reduced its near-term opportunity for sales of our integrated Snapdragon processors and has skewed its product mix towards more modem chipsets in this tier. The company noted its expectation that the Snapdragon 810 processor will not be in the upcoming design cycle of a large customer's flagship device and heightened competition in China.
Citrix Systems (CTXS 60.76, +1.57, +2.7%): After Wednesday's close, Citrix reported Q4 (Dec) earnings of $1.10 per share, which was ahead of analysts' average expectation. Revenues rose 6.2% year/year to $851.5 mln, also ahead of estimates. For Q1, sees EPS of $0.70-0.72 vs. $0.80 Capital IQ Consensus Estimate; sees Q1 revs of $780-790 mln vs. $797.44 mln Capital IQ Consensus Estimate. For FY15, sees EPS of $3.60-3.65 and revenues of $3.290-3.330 bln, both of which are below expectations. Separately, announced a restructuring that will affect ~700 full-time and 200 contractor positions, and is expected to result in annualized pre-tax savings in the range of ~$90-100 mln.
Lam Research (LRCX 79.87, +0.15, +0.2%): After Wednesday's close, reported Q2 (Dec) earnings of $1.19 per share, excluding non-recurring items, ahead of expectations. Revenues rose 6.9% year/year to $1.23 bln, in-line with estimates. For Q3, sees EPS of $1.23-1.37, excluding non-recurring items, and revenues of $1.365-1.375 bln.
EMC Corp. (EMC 26.40, -0.20, -0.8%): Before Thursday's open, reported Q4 (Dec) earnings of $0.69 per share, excluding non-recurring items, slightly ahead of expectations. Revenues rose 5.5% year/year to $7.05 bln, which was shy of analysts' average expectation. For FY15, sees EPS of $1.98, excluding non-recurring items, and revenues of $26.1 bln, both of which are below estimates. EMC said it expects to repurchase an aggregate of $3.0 billion of the company's common stock in 2015.
Google (GOOG 510.66, +0.66, +0.1%) and VMware (VMW 76.19, +1.13, +1.5%) said they will collaborate on Enterprise Public Cloud. Google Cloud Platform will be integrated into vCloud Air, providing enterprise customers with greater access to cloud services on VMware's hybrid cloud platform. Google Cloud Platform services will include: Google Cloud Storag, Google BigQuery, Google Cloud Datastore, and Google Cloud DNS.
Micron (MU 29.71, +0.61, +2.1%): Announced that it intends to offer $750 mln aggregate principal amount of senior notes due 2023. The company intends to use the net proceeds from the offering for the retirement or repurchase of convertible notes and debt and general corporate purposes.
Research firm IDC reported that smartphone vendors shipped a total of 375.2 million units during the Q4, resulting in 28.2% growth year-over-year. The report notes that Apple (AAPL 118.90, +3.59, +3.1%), having spent 11 quarters prior to 4Q14 as the number two smartphone vendor in terms of shipments, managed to close the gap to a near tie with Samsung in 4Q14. Led by the success of its newer, larger iPhone 6/6+ models, Apple reduced the volume gap to just 600,000 units in the fourth quarter. Despite being far more profitable for quite some time, Apple's shipment volumes trailed Samsung's by more than 33 million units during the same quarter a year ago. Continued success from Apple, coupled with the ongoing challenges facing Samsung, could enable Apple to overtake Samsung during the 2015 calendar year.
Alibaba (BABA 89.81, -8.64, -8.8%): Before Thursday's open, reported Q3 (Dec) earnings of $0.81 per share, which was better than expected. Revenues rose 39.6% year/year to $4.22 bln but fell short of analysts' expectations. Said gross merchandise volume (GMV) transacted in China retail marketplaces in the quarter ended December 31, 2014 was RMB787 billion (US$127 billion), an increase of 49% compared to the same quarter of 2013, and compared to RMB556 billion in the quarter ended September 30, 2014, representing a net addition of RMB231 billion GMV in three months. Mobile GMV in the quarter ended December 31, 2014 was RMB327 billion (US$53 billion), an increase of 213% compared to the same quarter of 2013. Mobile GMV accounted for 42% of total GMV transacted in China retail marketplaces in this quarter, compared to 36% in the quarter ended September 30, 2014 and 20% in the same quarter of 2013.
Cirrus Logic (CRUS 26.14, -1.41, -5.1%): After Wednesday's close, reported Q3 (Dec) earnings of $0.97 per share, excluding non-recurring items, well ahead of expectations. Revenues rose 36.5% year/year to $298.6 mln, also well ahead of estimates. For Q4, sees revenues of $220-240 mln, which is well above what analysts were expecting.
Teradyne (TER 18.62, -0.12, -0.6%): After Wednesday's close, reported Q4 (Dec) earnings of $0.14 per share, excluding non-recurring items, ahead of analysts' average expectation. Revenues rose 13.3% year/year to $323.24 mln, topping estimates. For Q1, sees EPS of $0.09-0.14, excluding non-recurring items, and revenues of $320-345 mln. Teradyne also announced that its Board of Directors has approved a share repurchase program authorizing the Company to repurchase up to $500 million of its common stock through open market or private transactions. The $500 million authorization replaces the Company's existing repurchase program announced in 2010. Company expects to execute $300 mln of the share repurchase program this year.
Nokia (NOK 7.75, -0.14, -1.8%): Before Thursday's open, reported Q4 (Dec) earnings of 0.09 per share, in-line with estimates. Revenues rose 9.4% year/year to 3.8 bln, which was ahead of expectations. Nokia said it continues to expect Nokia Networks' net sales to grow on a year-on-year basis for the full year 2015 and its non-IFRS operating margin for the full year 2015 to be in-line with Nokia Networks' long-term non-IFRS operating margin range of 8% to 11%. Continues to expect Nokia Group capital expenditures to be approximately EUR 200 million in 2015, primarily attributable to capital expenditures by Nokia Networks.Postcript:
Google (GOOG 510.66, +0.66, +0.1%): After Thursday's close, reported Q4 (Dec) earnings of $6.88 per share, which was below analysts' average expectation. Revenues rose 15.2% year/year to $18.1 bln, which was also below estimates. Google Site Revenues +18% compared to +20% in Q3. Company said free cash flow was $2.81 billion compared to $2.98 billion in the fourth quarter of 2013 and that it expects to continue to make significant capital expenditures. Shares of GOOG were down 1.7% in after hours action.
Amazon.com (AMZN 311.78, +7.87, +2.6%): After Thursday's close, Reported Q4 (Dec) earnings of $0.45 per share, well ahead of expectations. Revenues rose 14.6% year/year to $29.33 bln compared to its guidance of $27.3-30.3 bln. Q4 operating income was $591 mln vs ($570)-430 mln guidance. For Q1, sees revenues of $20.9-22.9 bln. Operating income (loss) is expected to be between $(450) million and $50 mln versus $146 million in 1Q14. Shares of AMZN were up 8.4% in after hours action.
Visa (V 248.00, +1.64, +0.7%): After Thursday's close, reported Q1 (Dec) earnings of $2.53 per share, which was ahead of expectations. Revenues rose 7.2% year/year to $3.38 bln, also ahead of estimates, driven by solid growth in service revenues, data processing revenues and international transaction revenues. The strengthening of the U.S. dollar impacted net operating revenues by approximately 2 percentage points of negative growth during the quarter. Announced a 4-for-1 stock split and reaffirmed its FY15 financial outlook. Shares of V were up 3.8% in after hours action
Analyst Action:
Lam Research (LRCX 79.87, +0.15, +0.2%): target raised to $82 from $72 at RBC Capital Mkts; Sector Perform... target raised to $88 from $85 at Cowen; Outperform -- Remains a Top Pick... target raised to $103 from $84 at Pacific Crest; Outperform
Qualcomm (QCOM 63.69, -7.30, -10.3%): downgraded to Market Perform from Outperform at Northland Capital; target lowered to $70 from $85... FBR Capital reduces price target to $77 from $83... Cowen & Co. takes price target to $75 from $79; Maintains Outperform... downgraded to Neutral from Buy at UBS
Apple (AAPL 118.90, +3.59, +3.1%): target raised to $135 from $125 at Argus; remains at Buy
Facebook (FB 78.00, +1.76, +2.3%): Stifel Research raises target to $97 from $94...Oppenheimer leaves $100 price target unchanged; Reiterates Outperform... RBC Capital trims price target to $90 from $92; Reiterates Outperform... target raised to $90 from $84 at Raymond James; Outperform... target raised to $90 from $88 at Canaccord Genuity; Buy... target raised to $105 from $100 at Jefferies; Buy... target raised to $90 from $85 at Goldman Sachs; Buy
Microsoft (MSFT 42.01, +0.82, +2.0%): downgraded to Underweight from Neutral at Atlantic Equities
Changyou.com (CYOU 27.70, +0.95, +3.6%): upgraded to Overweight from Underweight at HSBC Securities; target raised to $35 from $20
VMware (VMW 76.19, +1.13, +1.5%): removed from US Global Focus List at Credit Suisse
Nokia (NOK 7.75, -0.14, -1.8%): target lowered to $8.50 from $9 at MKM Partners; remains at Neutral
EMC Corp. (EMC 26.40, -0.20, -0.8%): target lowered to $31 from $33 at FBR Capital; OutperformUpcoming earnings reports on Friday:
Before the open: MasterCard (MA 81.38, +0.64, +0.8%), Xerox (XRX 13.56, +0.32, +2.4%)
After the close: None
4:30 pm Rambus announces that Microsemi (MSCC) will serve as reseller for certain differential power analysis technologies developed by its Cryptography Research division (RMBS) : Co announced that Microsemi (MSCC) will serve as reseller for certain differential power analysis technologies developed by its Cryptography Research division.
This reseller agreement includes the DPA WorkStation and the recently-announced DPA Resistant AES cryptographic cores that offer chipmakers an easy-to-integrate solution to protect against side-channel attack vulnerabilities. MSCC will focus its reseller efforts on the government and military sectors.
The agreement also enables Microsemi to conduct training classes to help customers evaluate their vulnerability to DPA and related side-channel attacks, helping chip purchasers and downstream customers identify devices with the most effective security.
4:23 pm Emulex beats by $0.01, reports revs in-line; guides Q3 EPS in-line, revs in-line (ELX) :
Reports Q2 (Dec) earnings of $0.24 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.23; revenues fell 9.7% year/year to $111.1 mln vs the $110.5 mln consensus.
Co issues in-line guidance for Q3, sees EPS of $0.11-0.15 vs. $0.12 Capital IQ Consensus Estimate; sees Q3 revs of $97-103 mln vs. $100.50 mln Capital IQ Consensus Estimate.
4:10 pm : The stock market endured a volatile session on Thursday, but a steady rebound off morning lows helped the major averages register their first gain in three days. The Dow Jones Industrial Average paced the advance (+1.3%) while the S&P 500 (+1.0%) reclaimed its 100-day moving average (2,010).
Equities faced some selling pressure at the start amid continued weakness in crude oil. The energy component set a fresh January low in the $43.60/bbl area, but was able to charge back to unchanged by the pit close. That rebound improved the overall risk tolerance and helped the S&P 500 find support just a point above its January low (1988.12). Dip buyers entered the picture about 90 minutes after the start of the session, which helped all ten sectors rebound off their lows.
The materials space (+1.4%) finished in the lead thanks to better than expected earnings from Dow Chemical (DOW 45.02, +1.99). The stock spiked 4.6% and gave a boost to its peers. Meanwhile, the other commodity-related sector-energy (+0.2%)-was the weakest performer.
Elsewhere, the discretionary sector (+1.3%) outperformed throughout the session after several major components reported earnings. Homebuilders surged after PulteGroup (PHM 21.82, +1.24) and Ryland Group (RYL 39.62, +2.95) reported better than expected results with iShares Dow Jones US Home Construction ETF (ITB 25.86, +0.83) spiking 3.3%. Heavily-weighted Ford (F 14.85, +0.39) and McDonald's (MCD 93.27, +4.49) also rallied after the former beat estimates while the latter announced the retirement of its Chief Executive Officer. The broad strength within the sector overshadowed an 8.8% loss in the shares of Alibaba (BABA 89.81, -8.64) after the company missed revenue expectations.
Similarly, the industrial sector (+1.2%) outperformed while technology (+1.1%) overtook the broader market into the close. Top-weighted names like Apple (AAPL 118.90, +3.59), IBM (IBM 155.48, +3.93), and Microsoft (MSFT 42.01, +0.82) jumped between 2.0% and 3.1%, which helped overshadow a 10.3% decline in Qualcomm (QCOM 63.69, -7.30) brought on by disappointing guidance for the fiscal year.
When the dust settled, four of six cyclical sectors ended ahead of the S&P 500 while the utilities sector (+1.3%) represented the only outperformer on the countercyclical side.
Treasuries spent the day in a steady retreat with the 10-yr yield climbing four basis points to 1.76%.
Today's participation was a bit above average as 843 million shares changed hands at the NYSE floor.
Economic data was limited to jobless claims and pending home sales:
The initial claims level dropped to 265,000 for the week ending January 24 from an upwardly revised 308,000 (from 307,000) while the Briefing.com consensus expected a decline to 301,000
Not only did the drop break three consecutive weeks above 300,000, but the initial claims level fell to its lowest level since April 2000 o As it has for the past several months, the Department of Labor reported that there were no special factors impacting the report
The continuing claims level declined to 2.385 million from an upwardly revised 2.456 million (from 2.443 million) while the consensus expected a drop to 2.429 million
Pending home sales for December fell 3.7% while the Briefing.com consensus expected an increase of 0.6%
Tomorrow, the advance reading of Q4 GDP (Briefing.com consensus 3.2%) will be released at 8:30 ET alongside the Q4 Employment Cost Index (consensus 0.5%). The Chicago PMI report for January (consensus 58.0) will cross the wires at 9:45 ET while the final reading of the January Michigan Sentiment Index will be reported at 9:55 ET (consensus 98.2).
Nasdaq Composite -1.1% YTD
Russell 2000 -1.1% YTD
S&P 500 -1.8% YTD
Dow Jones Industrial Average -2.3% YTD
4:17 pm Broadcom beats by $0.03, beats on revs; guides Q1 revs in-line (BRCM) : Reports Q4 (Dec) earnings of $0.90 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.87; revenues rose 3.8% year/year to $2.14 bln vs the $2.11 bln consensus. Co reports gross margin of 54.7% compared to 52.3% in prior year. Co issues in-line guidance for Q1, sees Q1 revs of $1.925-2.075 bln vs. $2.01 bln Capital IQ Consensus Estimate. Sees Non-GAAP Gross Margin in the range of 53.9-55.4%.
4:13 pm Google misses by $0.25, misses on revs (GOOG) : Reports Q4 (Dec) earnings of $6.88 per share, $0.25 worse than the Capital IQ Consensus Estimate of $7.13; revenues rose 15.2% year/year to $18.1 bln vs the $18.44 bln consensus.
GOOG Site Revenues +18% compared to +20% in Q3.
Revenues and Monetization
Sites Revenues - Our sites generated revenues of $12.43 billion, or 69% of total revenues, in the fourth quarter of 2014. This represents an 18% increase over fourth quarter 2013 sites revenues of $10.54 billion. Network Revenues - Our partner sites generated revenues of $3.72 billion, or 20% of total revenues, in the fourth quarter of 2014. This represents a 6% increase over fourth quarter 2013 network revenues of $3.52 billion. Other Revenues - Other revenues were $1.95 billion, or 11% of total revenues, in the fourth quarter of 2014. This represents a 19% increase over fourth quarter 2013 other revenues of $1.65 billion. International Revenues - Our revenues from outside of the United States totaled $10.23 billion, representing 56% of total revenues in the fourth quarter of 2014, compared to 58% in the third quarter of 2014 and 56% in the fourth quarter of 2013.
Paid Clicks and Cost per Clicks
Paid Clicks increased approximately 14% y/y and 11% q/q. Cost-Per-Click decreased approximately 3% y/y and q/q. Cost-per-click for Google sites decreased approximately 8% y/y and q/q. Expenses
Operating expenses, other than cost of revenues, were $6.78 billion in the fourth quarter of 2014, or 37% of revenues, compared to $5.03 billion in the fourth quarter of 2013, or 32% of revenues. Free cash flow was $2.81 billion compared to $2.98 billion in the fourth quarter of 2013. We expect to continue to make significant capital expenditures
4:11 pm Riverbed Technology beats by $0.02, misses on revs (RVBD) : Reports Q4 (Dec) earnings of $0.34 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.32; revenues were unchanged from the year-ago period at $283.4 mln.
"Taking into account the revenue impact from the sale of SteelStore, our fourth quarter revenue performance was consistent with our original expectations, while we exceeded the top end of our EPS range due in part to a more favorable tax rate."
4:07 pm PMC-Sierra reports EPS in-line, beats on revs (PMCS) : Reports Q4 (Dec) earnings of $0.11 per share, in-line with the Capital IQ Consensus Estimate of $0.11; revenues rose 7.9% year/year to $136.9 mln vs the $135.31 mln consensus.
4:04 pm Coherent beats by $0.10, beats on revs (COHR) : Reports Q1 (Dec) earnings of $0.87 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus Estimate of $0.77; revenues rose 3.6% year/year to $200.6 mln vs the $196.0 mln consensus.
"We posted solid numbers in our first fiscal quarter with expected benefits arising from higher volume. A better mix and lower warranty costs were positive contributors to gross profit percentage. Orders reflected the timing of certain OEM bookings and are not indicative of either a market slowdown or changes in market share."
4:55 pm SunEdison and TerraForm Power (TERP) announce that they have completed the acquisition of First Wind Holdings (SUNE) : 4:30 pm Rambus announces that Microsemi (MSCC) will serve as reseller for certain differential power analysis technologies developed by its Cryptography Research division (RMBS) : Co announced that Microsemi (MSCC) will serve as reseller for certain differential power analysis technologies developed by its Cryptography Research division.
This reseller agreement includes the DPA WorkStation and the recently-announced DPA Resistant AES cryptographic cores that offer chipmakers an easy-to-integrate solution to protect against side-channel attack vulnerabilities. MSCC will focus its reseller efforts on the government and military sectors.
The agreement also enables Microsemi to conduct training classes to help customers evaluate their vulnerability to DPA and related side-channel attacks, helping chip purchasers and downstream customers identify devices with the most effective security.
4:23 pm Emulex beats by $0.01, reports revs in-line; guides Q3 EPS in-line, revs in-line (ELX) : Reports Q2 (Dec) earnings of $0.24 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.23; revenues fell 9.7% year/year to $111.1 mln vs the $110.5 mln consensus.
Co issues in-line guidance for Q3, sees EPS of $0.11-0.15 vs. $0.12 Capital IQ Consensus Estimate; sees Q3 revs of $97-103 mln vs. $100.50 mln Capital IQ Consensus Estimate.
4:18 pm QLogic beats by $0.07, beats on revs (QLGC) : Reports Q3 (Dec) earnings of $0.36 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.29; revenues rose 17.4% year/year to $140.2 mln vs the $137.68 mln consensus.
"Our strong revenue performance, combined with our intense focus on operating expense management resulted in a significant expansion of our operating profit during the third quarter. Based on our compelling product portfolio, our focus on consistent execution and the current momentum with the enterprise upgrade cycle, we believe we are well positioned to continue delivering solid revenue and earnings per share performance."
4:17 pm Broadcom beats by $0.03, beats on revs; guides Q1 revs in-line (BRCM) : Reports Q4 (Dec) earnings of $0.90 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.87; revenues rose 3.8% year/year to $2.14 bln vs the $2.11 bln consensus. Co reports gross margin of 54.7% compared to 52.3% in prior year. Co issues in-line guidance for Q1, sees Q1 revs of $1.925-2.075 bln vs. $2.01 bln Capital IQ Consensus Estimate. Sees Non-GAAP Gross Margin in the range of 53.9-55.4%.
4:13 pm Harmonic beats by $0.03, beats on revs; guides Q1 revs in-line (HLIT) :
Reports Q4 (Dec) earnings of $0.06 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.03; revenues fell 10.2% year/year to $107.9 mln vs the $101.66 mln consensus.
Co issues in-line guidance for Q1, sees Q1 revs of $100-110 mln vs. $102.40 mln Capital IQ Consensus Estimate.
4:13 pm Google misses by $0.25, misses on revs (GOOG) : Reports Q4 (Dec) earnings of $6.88 per share, $0.25 worse than the Capital IQ Consensus Estimate of $7.13; revenues rose 15.2% year/year to $18.1 bln vs the $18.44 bln consensus.
GOOG Site Revenues +18% compared to +20% in Q3.
Revenues and Monetization
Sites Revenues - Our sites generated revenues of $12.43 billion, or 69% of total revenues, in the fourth quarter of 2014. This represents an 18% increase over fourth quarter 2013 sites revenues of $10.54 billion. Network Revenues - Our partner sites generated revenues of $3.72 billion, or 20% of total revenues, in the fourth quarter of 2014. This represents a 6% increase over fourth quarter 2013 network revenues of $3.52 billion. Other Revenues - Other revenues were $1.95 billion, or 11% of total revenues, in the fourth quarter of 2014. This represents a 19% increase over fourth quarter 2013 other revenues of $1.65 billion. International Revenues - Our revenues from outside of the United States totaled $10.23 billion, representing 56% of total revenues in the fourth quarter of 2014, compared to 58% in the third quarter of 2014 and 56% in the fourth quarter of 2013. Paid Clicks and Cost per Clicks
Paid Clicks increased approximately 14% y/y and 11% q/q. Cost-Per-Click decreased approximately 3% y/y and q/q. Cost-per-click for Google sites decreased approximately 8% y/y and q/q. Expenses
Operating expenses, other than cost of revenues, were $6.78 billion in the fourth quarter of 2014, or 37% of revenues, compared to $5.03 billion in the fourth quarter of 2013, or 32% of revenues. Free cash flow was $2.81 billion compared to $2.98 billion in the fourth quarter of 2013. We expect to continue to make significant capital expenditures.
4:11 pm Riverbed Technology beats by $0.02, misses on revs (RVBD) : Reports Q4 (Dec) earnings of $0.34 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.32; revenues were unchanged from the year-ago period at $283.4 mln.
"Taking into account the revenue impact from the sale of SteelStore, our fourth quarter revenue performance was consistent with our original expectations, while we exceeded the top end of our EPS range due in part to a more favorable tax rate."
4:10 pm Amazon.com reports Q4 operating income above guidance/estimates with rev just below estimates; guides Q1 below consensus (AMZN) : Reports Q4 (Dec) earnings of $0.45 per share, $0.29 better than the Capital IQ Consensus Estimate of $0.16; revenues rose 14.6% year/year to $29.33 bln vs the $29.63 bln consensus and $27.3-30.3 bln guidance
Q4 operating income $591 mln vs ~$180 mln est and ($570)-430 mln guidance.
Co issues downside guidance for Q1, sees Q1 revs of $20.9-22.9 bln vs. $22.96 bln Capital IQ Consensus Estimate. Operating income (loss) is expected to be between $(450) million and $50 mln vs ~$145 mln consensus and $146 million in 1Q14.4:09 pm JDS Uniphase misses by $0.01, misses on revs; guides Q3 EPS below consensus, revs below consensus (JDSU) : Reports Q2 (Dec) earnings of $0.15 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.16; revenues fell 2.3% year/year to $437.1 mln vs the $444.38 mln consensus.
Guidance: Co issues downside guidance for Q3, sees EPS of $0.09, +/- $0.02, vs. $0.14 Capital IQ Consensus Estimate; sees Q3 revs of $418 mln, +/- $10 mln, vs. $431.23 mln Capital IQ Consensus Estimate.
4:07 pm PMC-Sierra reports EPS in-line, beats on revs (PMCS) : Reports Q4 (Dec) earnings of $0.11 per share, in-line with the Capital IQ Consensus Estimate of $0.11; revenues rose 7.9% year/year to $136.9 mln vs the $135.31 mln consensus.4:04 pm Coherent beats by $0.10, beats on revs (COHR) : Reports Q1 (Dec) earnings of $0.87 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus Estimate of $0.77; revenues rose 3.6% year/year to $200.6 mln vs the $196.0 mln consensus.
"We posted solid numbers in our first fiscal quarter with expected benefits arising from higher volume. A better mix and lower warranty costs were positive contributors to gross profit percentage. Orders reflected the timing of certain OEM bookings and are not indicative of either a market slowdown or changes in market share."
11:55 am 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
NOW (73.33 +6.41%): Reported Q4 earnings that beat EPS consensus estimates by $0.01, beat on revs; guided Q1 & FY15 revs above consensus; Price target raised at BMO Capital Mkts, Canaccord Genuity, RBC, others.
COH (38.81 +6.45%): Reported Q2 (Dec) earnings of $0.72 per share, $0.06 better than the Capital IQ Consensus Estimate of $0.66; revenues fell 14.1% year/year to $1.22 bln vs the $1.23 bln consensus. Q2 N Am comps of -22% vs -13.6% year ago and -24% last qtr (prior guidance was for FY15 mid to high 20s comp decline).
CL (68.64 +5.41%): Beat Q4 consensus EPS estimates by $0.02, reported revs in-line.
Large Cap Losers
QCOM (62.8 -11.54%): Beat Q1 by $0.09, beat on revs; guided Q2 in-line; lowered FY15 guidance; announced Snapdragon 810 processor will not be in Samsung's Galaxy S6; Downgraded at Northland, UBS, others.
HSY (99.99 -7.14%): Missed Q4 consensus estimates by $0.02, missed on revs; guided FY15 EPS below consensus, revs below consensus.
VRTX (112.7 -7.06%): Reported Q4 (Dec) loss of $0.55 per share, excluding non-recurring items, $0.09 worse than the Capital IQ Consensus Estimate of ($0.46); revenues fell 58.8% year/year to $144.56 mln vs the $135.59 mln consensus; sees KALYDECO net revenues of $560 to $580 million for 2015; Downgraded at Needham, Maxim, others.
Mid Cap Gainers
HAR (119.21 +18.02%): Beat Q2 consensus estimates by $0.51, beat on revs; guided FY15 EPS above consensus, reaffirmed FY15 revs guidance; Announced strategic collaboration with Baidu (BIDU).
CMPR (81.45 +12.53%): Beat Q2 consensus estimates by $0.50, beat on revs; guided FY15 EPS above consensus, revs below consensus.
KATE (32.51 +9.35%): Announced plan to focus investment on Kate Spade New York; guided FY14 and FY15; Announced JV with Walton Brown to scale and accelerate growth in China.
Mid Cap Losers
TGI (55.29 -10.36%): Reported Q3 (Dec) earnings of $1.42 per share, excluding non-recurring items, $0.10 worse than the Capital IQ Consensus Estimate of $1.52; revenues rose 0.2% year/year to $917.4 mln vs the $980.64 mln consensus; guided Q4 EPS in-line; guided FY15 revs in-line.
CLB (91 -8.86%): Reported EPS in-line, revs in-line; guided Q1 EPS below consensus, revs below consensus.
RES (10.89 -8.56%): Downgraded to Neutral from Accumulate at Global Hunter Securities.
11:51 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (253) outpacing new highs (147) (:SCANX) :
Stocks that traded to 52 week highs: AFB, ANGO, APTS, AYN, BA, BAF, BBF, BBK, BBN, BFK, BFS, BFZ, BNJ, BNY, BPS, BR, BRP, BSE, BTA, BTT, BUD, BYM, CCA, CCMP, CEMP, CGI, CMPR, CRMD, CSWC, CTCT, CXE, CXH, CXW, DBL, DEG, DMF, DOOR, EA, EIM, ENX, EVO, FFC, FLC, GBAB, GEO, GFF, GSH, HAR, HLS, HOLX, HSKA, HZO, IMAX, IQI, ITG, JBLU, JHP, KLIC, KRC, LUX, MD, MFL, MFM, MHD, MIY, MJI, MLNX, MMD, MNE, MNP, MQT, MTT, MUA, MUC, MUE, MUH, MUI, MUJ, MUS, MVF, MYC, MYD, MYJ, MYN, NAC, NAVG, NID, NIO, NIQ, NKG, NMA, NMO, NMT, NMY, NMZ, NOC, NOW, NPI, NPM, NPP, NPV, NQI, NQM, NQP, NQS, NQU, NRK, NTC, NUV, NVG, NVX, NXJ, NXN, NXZ, NZF, OCUL, OPK, ORAN, OVLY, PENN, PFO, PMF, PML, PMM, PMO, PMX, PNI, PSO, PZZA, QADB, RDUS, RESN, RIF, ROL, TA, TSCO, TSRA, TSS, VAR, VCV, VGM, VKI, VKQ, VMO, WX, XNCR, ZLTQ
Stocks that traded to 52 week lows: ABB, ACFN, ACI, AES, AGI, AIRM, AIXG, ALB, ALLY, ANGI, ANR, AOI, APPY, AR, ATV, AVL, AXE, BALT, BDE, BIOC, BMO, BNS, BORN, BOX, BPFH, BRDR, BRS, BSPM, BXE, CAM, CAT, CBNJ, CCJ, CEL, CERE, CFX, CHOP, CIG.C, CJES, CLB, CLD, CLNE, CM, CMO, CNTF, CNX, COP, CPS, CPSS, CRK, CRR, CRRS, CRS, CTCM, CTP, CVEO, CX, CXDC, CYCC, DANG, DMD, DNN, DPM, DSKY, DWA, ECPG, EFII, EGLE, EMN, EMR, ENRJ, ESEA, ETJ, EXH, EXP, FBRC, FCX, FET, FFHL, FITB, FIVN, FLR, FLS, FMER, FMSA, FOE, FTGC, FTI, FUEL, GBCI, GEF, GES, GEVO, GHL, GNW, GPRK, GRAM, GSOL, GTE, HEES, HELI, HGT, HNR, HP, HSC, HY, IBKC, IBM, ICA, IGLD, IKGH, IO, ITT, JEC, JMI, KEX, KMT, KOP, KRO, L, LDR, LEE, MBVT, MCC, MDLY, MDM, MFC, MGIC, MIND, MN, MOMO, MRC, MUR, MVC, NOA, NOV, NQ, NRG, NRIM, NUE, NVFY, OCLS, OGXI, OI, OII, OIS, ONCY, ONDK, OPTT, OPWR, OPXA, OPY, PACD, PB, PCBK, PDS, PERI, PFMT, PGN, PICO, PIM, PKX, PQ, PRGN, PSCE, PTC, PWE, QCOM, RAVN, RCMT, RES, RIBT, RIVR, RLOC, RMT, RNET, ROSE, ROYL, RRC, RS, RXN, RY, RYAM, RYI, SALT, SARA, SB, SBLK, SFUN, SGM, SLF, SMM, SNC, SNTA, SOL, SPE, SQNS, SR, SSE, STB, STRL, SXC, SZYM, TAT, TCB, TD, TDW, TEX, TGA, TGI, THR, THRX, TICC, TK, TLF, TMST, TOO, TPRE, TRC, TRMB, TRMK, TTI, TWI, TWIN, TZOO, UBNK, UBNT, UBSH, ULTR, UMBF, UMPQ, UNT, VBTX, VECO, VLY, VMW, VOC, VPCO, WABC, WAIR, WILN, WMGI, WRES, WSCI, WTI, XGTI, XOM, YGE, YNDX, ZHNE, ZINC, ZION, ZU
ETFs that traded to 52 week highs: none
ETFs that traded to 52 week lows: DBA, DBC, DJP, EWC, FXA, FXC, GSG, JJC, KOL, NIB, OIL, RJA, SLX, UNG, URA, USCI, USO, XES, XME
Bolstered by the S&P 500 holding a technical support level at the 1993/1992 level, a rebound in oil prices, and short-covering activity as the rebound effort solidified, the major indices posted some solid gains that enabled them to recoup most of Wednesday's losses.
On the busiest day of earnings reporting yet, the S&P 500 information technology sector (+1.1%) played an influential role in the broader market's advance. Once again, Apple (AAPL 118.90, +3.59, +3.1%) carried the sector load and fortified the recovery effort by the S&P 500.
Below are some of the more notable news items for technology companies that were considered during Thursday's trading activity:
Facebook (FB 78.00, +1.76, +2.3%): After Wednesday's close, the company reported Q4 (Dec) earnings of $0.54 per share, which was ahead of analysts' average expectation. Revenues rose 49.0% year/year to $3.85 bln, also ahead of expectations. Revenue from advertising was $3.59 billion, a 53% increase from the same quarter last year. Mobile advertising revenue represented approximately 69% of advertising revenue for the fourth quarter of 2014, up from approximately 53% of advertising revenue in the fourth quarter of 2013. Monthly active users (MAUs) were 1.39 billion (Briefing.com consensus 1.394 bln) as of December 31, 2014, an increase of 13% year-over-year. Mobile MAUs were 1.19 billion as of December 31, 2014, an increase of 26% year-over-year.
Qualcomm (QCOM 63.69, -7.30, -10.3%): After Wednesday's close, the company reported Q1 (Dec) earnings of $1.34 per share, excluding non-recurring items, which was ahead of analysts' average expectation. Revenues rose 7.2% year/year to $7.1 bln, also ahead of estimates. The company issued in-line guidance for Q2, saying it sees EPS of $1.28-1.40, excluding non-recurring items, and revenues of $6.5-7.1 bln. However, Qualcomm lowered its outlook for the second half of fiscal 2015 in its semiconductor business, QCT, largely driven by the effects of: A shift in share among OEMs at the premium tier, which has reduced its near-term opportunity for sales of our integrated Snapdragon processors and has skewed its product mix towards more modem chipsets in this tier. The company noted its expectation that the Snapdragon 810 processor will not be in the upcoming design cycle of a large customer's flagship device and heightened competition in China.
Citrix Systems (CTXS 60.76, +1.57, +2.7%): After Wednesday's close, Citrix reported Q4 (Dec) earnings of $1.10 per share, which was ahead of analysts' average expectation. Revenues rose 6.2% year/year to $851.5 mln, also ahead of estimates. For Q1, sees EPS of $0.70-0.72 vs. $0.80 Capital IQ Consensus Estimate; sees Q1 revs of $780-790 mln vs. $797.44 mln Capital IQ Consensus Estimate. For FY15, sees EPS of $3.60-3.65 and revenues of $3.290-3.330 bln, both of which are below expectations. Separately, announced a restructuring that will affect ~700 full-time and 200 contractor positions, and is expected to result in annualized pre-tax savings in the range of ~$90-100 mln.
Lam Research (LRCX 79.87, +0.15, +0.2%): After Wednesday's close, reported Q2 (Dec) earnings of $1.19 per share, excluding non-recurring items, ahead of expectations. Revenues rose 6.9% year/year to $1.23 bln, in-line with estimates. For Q3, sees EPS of $1.23-1.37, excluding non-recurring items, and revenues of $1.365-1.375 bln.
EMC Corp. (EMC 26.40, -0.20, -0.8%): Before Thursday's open, reported Q4 (Dec) earnings of $0.69 per share, excluding non-recurring items, slightly ahead of expectations. Revenues rose 5.5% year/year to $7.05 bln, which was shy of analysts' average expectation. For FY15, sees EPS of $1.98, excluding non-recurring items, and revenues of $26.1 bln, both of which are below estimates. EMC said it expects to repurchase an aggregate of $3.0 billion of the company's common stock in 2015.
Google (GOOG 510.66, +0.66, +0.1%) and VMware (VMW 76.19, +1.13, +1.5%) said they will collaborate on Enterprise Public Cloud. Google Cloud Platform will be integrated into vCloud Air, providing enterprise customers with greater access to cloud services on VMware's hybrid cloud platform. Google Cloud Platform services will include: Google Cloud Storag, Google BigQuery, Google Cloud Datastore, and Google Cloud DNS.
Micron (MU 29.71, +0.61, +2.1%): Announced that it intends to offer $750 mln aggregate principal amount of senior notes due 2023. The company intends to use the net proceeds from the offering for the retirement or repurchase of convertible notes and debt and general corporate purposes.
Research firm IDC reported that smartphone vendors shipped a total of 375.2 million units during the Q4, resulting in 28.2% growth year-over-year. The report notes that Apple (AAPL 118.90, +3.59, +3.1%), having spent 11 quarters prior to 4Q14 as the number two smartphone vendor in terms of shipments, managed to close the gap to a near tie with Samsung in 4Q14. Led by the success of its newer, larger iPhone 6/6+ models, Apple reduced the volume gap to just 600,000 units in the fourth quarter. Despite being far more profitable for quite some time, Apple's shipment volumes trailed Samsung's by more than 33 million units during the same quarter a year ago. Continued success from Apple, coupled with the ongoing challenges facing Samsung, could enable Apple to overtake Samsung during the 2015 calendar year.
Alibaba (BABA 89.81, -8.64, -8.8%): Before Thursday's open, reported Q3 (Dec) earnings of $0.81 per share, which was better than expected. Revenues rose 39.6% year/year to $4.22 bln but fell short of analysts' expectations. Said gross merchandise volume (GMV) transacted in China retail marketplaces in the quarter ended December 31, 2014 was RMB787 billion (US$127 billion), an increase of 49% compared to the same quarter of 2013, and compared to RMB556 billion in the quarter ended September 30, 2014, representing a net addition of RMB231 billion GMV in three months. Mobile GMV in the quarter ended December 31, 2014 was RMB327 billion (US$53 billion), an increase of 213% compared to the same quarter of 2013. Mobile GMV accounted for 42% of total GMV transacted in China retail marketplaces in this quarter, compared to 36% in the quarter ended September 30, 2014 and 20% in the same quarter of 2013.
Cirrus Logic (CRUS 26.14, -1.41, -5.1%): After Wednesday's close, reported Q3 (Dec) earnings of $0.97 per share, excluding non-recurring items, well ahead of expectations. Revenues rose 36.5% year/year to $298.6 mln, also well ahead of estimates. For Q4, sees revenues of $220-240 mln, which is well above what analysts were expecting.
Teradyne (TER 18.62, -0.12, -0.6%): After Wednesday's close, reported Q4 (Dec) earnings of $0.14 per share, excluding non-recurring items, ahead of analysts' average expectation. Revenues rose 13.3% year/year to $323.24 mln, topping estimates. For Q1, sees EPS of $0.09-0.14, excluding non-recurring items, and revenues of $320-345 mln. Teradyne also announced that its Board of Directors has approved a share repurchase program authorizing the Company to repurchase up to $500 million of its common stock through open market or private transactions. The $500 million authorization replaces the Company's existing repurchase program announced in 2010. Company expects to execute $300 mln of the share repurchase program this year.
Nokia (NOK 7.75, -0.14, -1.8%): Before Thursday's open, reported Q4 (Dec) earnings of 0.09 per share, in-line with estimates. Revenues rose 9.4% year/year to 3.8 bln, which was ahead of expectations. Nokia said it continues to expect Nokia Networks' net sales to grow on a year-on-year basis for the full year 2015 and its non-IFRS operating margin for the full year 2015 to be in-line with Nokia Networks' long-term non-IFRS operating margin range of 8% to 11%. Continues to expect Nokia Group capital expenditures to be approximately EUR 200 million in 2015, primarily attributable to capital expenditures by Nokia Networks.Postcript:
Google (GOOG 510.66, +0.66, +0.1%): After Thursday's close, reported Q4 (Dec) earnings of $6.88 per share, which was below analysts' average expectation. Revenues rose 15.2% year/year to $18.1 bln, which was also below estimates. Google Site Revenues +18% compared to +20% in Q3. Company said free cash flow was $2.81 billion compared to $2.98 billion in the fourth quarter of 2013 and that it expects to continue to make significant capital expenditures. Shares of GOOG were down 1.7% in after hours action.
Amazon.com (AMZN 311.78, +7.87, +2.6%): After Thursday's close, Reported Q4 (Dec) earnings of $0.45 per share, well ahead of expectations. Revenues rose 14.6% year/year to $29.33 bln compared to its guidance of $27.3-30.3 bln. Q4 operating income was $591 mln vs ($570)-430 mln guidance. For Q1, sees revenues of $20.9-22.9 bln. Operating income (loss) is expected to be between $(450) million and $50 mln versus $146 million in 1Q14. Shares of AMZN were up 8.4% in after hours action.
Visa (V 248.00, +1.64, +0.7%): After Thursday's close, reported Q1 (Dec) earnings of $2.53 per share, which was ahead of expectations. Revenues rose 7.2% year/year to $3.38 bln, also ahead of estimates, driven by solid growth in service revenues, data processing revenues and international transaction revenues. The strengthening of the U.S. dollar impacted net operating revenues by approximately 2 percentage points of negative growth during the quarter. Announced a 4-for-1 stock split and reaffirmed its FY15 financial outlook. Shares of V were up 3.8% in after hours action
Analyst Action:
Lam Research (LRCX 79.87, +0.15, +0.2%): target raised to $82 from $72 at RBC Capital Mkts; Sector Perform... target raised to $88 from $85 at Cowen; Outperform -- Remains a Top Pick... target raised to $103 from $84 at Pacific Crest; Outperform
Qualcomm (QCOM 63.69, -7.30, -10.3%): downgraded to Market Perform from Outperform at Northland Capital; target lowered to $70 from $85... FBR Capital reduces price target to $77 from $83... Cowen & Co. takes price target to $75 from $79; Maintains Outperform... downgraded to Neutral from Buy at UBS
Apple (AAPL 118.90, +3.59, +3.1%): target raised to $135 from $125 at Argus; remains at Buy
Facebook (FB 78.00, +1.76, +2.3%): Stifel Research raises target to $97 from $94...Oppenheimer leaves $100 price target unchanged; Reiterates Outperform... RBC Capital trims price target to $90 from $92; Reiterates Outperform... target raised to $90 from $84 at Raymond James; Outperform... target raised to $90 from $88 at Canaccord Genuity; Buy... target raised to $105 from $100 at Jefferies; Buy... target raised to $90 from $85 at Goldman Sachs; Buy
Microsoft (MSFT 42.01, +0.82, +2.0%): downgraded to Underweight from Neutral at Atlantic Equities
Changyou.com (CYOU 27.70, +0.95, +3.6%): upgraded to Overweight from Underweight at HSBC Securities; target raised to $35 from $20
VMware (VMW 76.19, +1.13, +1.5%): removed from US Global Focus List at Credit Suisse
Nokia (NOK 7.75, -0.14, -1.8%): target lowered to $8.50 from $9 at MKM Partners; remains at Neutral
EMC Corp. (EMC 26.40, -0.20, -0.8%): target lowered to $31 from $33 at FBR Capital; OutperformUpcoming earnings reports on Friday:
Before the open: MasterCard (MA 81.38, +0.64, +0.8%), Xerox (XRX 13.56, +0.32, +2.4%)
After the close: None
4:30 pm Rambus announces that Microsemi (MSCC) will serve as reseller for certain differential power analysis technologies developed by its Cryptography Research division (RMBS) : Co announced that Microsemi (MSCC) will serve as reseller for certain differential power analysis technologies developed by its Cryptography Research division.
This reseller agreement includes the DPA WorkStation and the recently-announced DPA Resistant AES cryptographic cores that offer chipmakers an easy-to-integrate solution to protect against side-channel attack vulnerabilities. MSCC will focus its reseller efforts on the government and military sectors.
The agreement also enables Microsemi to conduct training classes to help customers evaluate their vulnerability to DPA and related side-channel attacks, helping chip purchasers and downstream customers identify devices with the most effective security.
4:23 pm Emulex beats by $0.01, reports revs in-line; guides Q3 EPS in-line, revs in-line (ELX) :
Reports Q2 (Dec) earnings of $0.24 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.23; revenues fell 9.7% year/year to $111.1 mln vs the $110.5 mln consensus.
Co issues in-line guidance for Q3, sees EPS of $0.11-0.15 vs. $0.12 Capital IQ Consensus Estimate; sees Q3 revs of $97-103 mln vs. $100.50 mln Capital IQ Consensus Estimate.
4:10 pm : The stock market endured a volatile session on Thursday, but a steady rebound off morning lows helped the major averages register their first gain in three days. The Dow Jones Industrial Average paced the advance (+1.3%) while the S&P 500 (+1.0%) reclaimed its 100-day moving average (2,010).
Equities faced some selling pressure at the start amid continued weakness in crude oil. The energy component set a fresh January low in the $43.60/bbl area, but was able to charge back to unchanged by the pit close. That rebound improved the overall risk tolerance and helped the S&P 500 find support just a point above its January low (1988.12). Dip buyers entered the picture about 90 minutes after the start of the session, which helped all ten sectors rebound off their lows.
The materials space (+1.4%) finished in the lead thanks to better than expected earnings from Dow Chemical (DOW 45.02, +1.99). The stock spiked 4.6% and gave a boost to its peers. Meanwhile, the other commodity-related sector-energy (+0.2%)-was the weakest performer.
Elsewhere, the discretionary sector (+1.3%) outperformed throughout the session after several major components reported earnings. Homebuilders surged after PulteGroup (PHM 21.82, +1.24) and Ryland Group (RYL 39.62, +2.95) reported better than expected results with iShares Dow Jones US Home Construction ETF (ITB 25.86, +0.83) spiking 3.3%. Heavily-weighted Ford (F 14.85, +0.39) and McDonald's (MCD 93.27, +4.49) also rallied after the former beat estimates while the latter announced the retirement of its Chief Executive Officer. The broad strength within the sector overshadowed an 8.8% loss in the shares of Alibaba (BABA 89.81, -8.64) after the company missed revenue expectations.
Similarly, the industrial sector (+1.2%) outperformed while technology (+1.1%) overtook the broader market into the close. Top-weighted names like Apple (AAPL 118.90, +3.59), IBM (IBM 155.48, +3.93), and Microsoft (MSFT 42.01, +0.82) jumped between 2.0% and 3.1%, which helped overshadow a 10.3% decline in Qualcomm (QCOM 63.69, -7.30) brought on by disappointing guidance for the fiscal year.
When the dust settled, four of six cyclical sectors ended ahead of the S&P 500 while the utilities sector (+1.3%) represented the only outperformer on the countercyclical side.
Treasuries spent the day in a steady retreat with the 10-yr yield climbing four basis points to 1.76%.
Today's participation was a bit above average as 843 million shares changed hands at the NYSE floor.
Economic data was limited to jobless claims and pending home sales:
The initial claims level dropped to 265,000 for the week ending January 24 from an upwardly revised 308,000 (from 307,000) while the Briefing.com consensus expected a decline to 301,000
Not only did the drop break three consecutive weeks above 300,000, but the initial claims level fell to its lowest level since April 2000 o As it has for the past several months, the Department of Labor reported that there were no special factors impacting the report
The continuing claims level declined to 2.385 million from an upwardly revised 2.456 million (from 2.443 million) while the consensus expected a drop to 2.429 million
Pending home sales for December fell 3.7% while the Briefing.com consensus expected an increase of 0.6%
Tomorrow, the advance reading of Q4 GDP (Briefing.com consensus 3.2%) will be released at 8:30 ET alongside the Q4 Employment Cost Index (consensus 0.5%). The Chicago PMI report for January (consensus 58.0) will cross the wires at 9:45 ET while the final reading of the January Michigan Sentiment Index will be reported at 9:55 ET (consensus 98.2).
Nasdaq Composite -1.1% YTD
Russell 2000 -1.1% YTD
S&P 500 -1.8% YTD
Dow Jones Industrial Average -2.3% YTD
4:17 pm Broadcom beats by $0.03, beats on revs; guides Q1 revs in-line (BRCM) : Reports Q4 (Dec) earnings of $0.90 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.87; revenues rose 3.8% year/year to $2.14 bln vs the $2.11 bln consensus. Co reports gross margin of 54.7% compared to 52.3% in prior year. Co issues in-line guidance for Q1, sees Q1 revs of $1.925-2.075 bln vs. $2.01 bln Capital IQ Consensus Estimate. Sees Non-GAAP Gross Margin in the range of 53.9-55.4%.
4:13 pm Google misses by $0.25, misses on revs (GOOG) : Reports Q4 (Dec) earnings of $6.88 per share, $0.25 worse than the Capital IQ Consensus Estimate of $7.13; revenues rose 15.2% year/year to $18.1 bln vs the $18.44 bln consensus.
GOOG Site Revenues +18% compared to +20% in Q3.
Revenues and Monetization
Sites Revenues - Our sites generated revenues of $12.43 billion, or 69% of total revenues, in the fourth quarter of 2014. This represents an 18% increase over fourth quarter 2013 sites revenues of $10.54 billion. Network Revenues - Our partner sites generated revenues of $3.72 billion, or 20% of total revenues, in the fourth quarter of 2014. This represents a 6% increase over fourth quarter 2013 network revenues of $3.52 billion. Other Revenues - Other revenues were $1.95 billion, or 11% of total revenues, in the fourth quarter of 2014. This represents a 19% increase over fourth quarter 2013 other revenues of $1.65 billion. International Revenues - Our revenues from outside of the United States totaled $10.23 billion, representing 56% of total revenues in the fourth quarter of 2014, compared to 58% in the third quarter of 2014 and 56% in the fourth quarter of 2013.
Paid Clicks and Cost per Clicks
Paid Clicks increased approximately 14% y/y and 11% q/q. Cost-Per-Click decreased approximately 3% y/y and q/q. Cost-per-click for Google sites decreased approximately 8% y/y and q/q. Expenses
Operating expenses, other than cost of revenues, were $6.78 billion in the fourth quarter of 2014, or 37% of revenues, compared to $5.03 billion in the fourth quarter of 2013, or 32% of revenues. Free cash flow was $2.81 billion compared to $2.98 billion in the fourth quarter of 2013. We expect to continue to make significant capital expenditures
4:11 pm Riverbed Technology beats by $0.02, misses on revs (RVBD) : Reports Q4 (Dec) earnings of $0.34 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.32; revenues were unchanged from the year-ago period at $283.4 mln.
"Taking into account the revenue impact from the sale of SteelStore, our fourth quarter revenue performance was consistent with our original expectations, while we exceeded the top end of our EPS range due in part to a more favorable tax rate."
4:07 pm PMC-Sierra reports EPS in-line, beats on revs (PMCS) : Reports Q4 (Dec) earnings of $0.11 per share, in-line with the Capital IQ Consensus Estimate of $0.11; revenues rose 7.9% year/year to $136.9 mln vs the $135.31 mln consensus.
4:04 pm Coherent beats by $0.10, beats on revs (COHR) : Reports Q1 (Dec) earnings of $0.87 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus Estimate of $0.77; revenues rose 3.6% year/year to $200.6 mln vs the $196.0 mln consensus.
"We posted solid numbers in our first fiscal quarter with expected benefits arising from higher volume. A better mix and lower warranty costs were positive contributors to gross profit percentage. Orders reflected the timing of certain OEM bookings and are not indicative of either a market slowdown or changes in market share."
4:55 pm SunEdison and TerraForm Power (TERP) announce that they have completed the acquisition of First Wind Holdings (SUNE) : 4:30 pm Rambus announces that Microsemi (MSCC) will serve as reseller for certain differential power analysis technologies developed by its Cryptography Research division (RMBS) : Co announced that Microsemi (MSCC) will serve as reseller for certain differential power analysis technologies developed by its Cryptography Research division.
This reseller agreement includes the DPA WorkStation and the recently-announced DPA Resistant AES cryptographic cores that offer chipmakers an easy-to-integrate solution to protect against side-channel attack vulnerabilities. MSCC will focus its reseller efforts on the government and military sectors.
The agreement also enables Microsemi to conduct training classes to help customers evaluate their vulnerability to DPA and related side-channel attacks, helping chip purchasers and downstream customers identify devices with the most effective security.
4:23 pm Emulex beats by $0.01, reports revs in-line; guides Q3 EPS in-line, revs in-line (ELX) : Reports Q2 (Dec) earnings of $0.24 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.23; revenues fell 9.7% year/year to $111.1 mln vs the $110.5 mln consensus.
Co issues in-line guidance for Q3, sees EPS of $0.11-0.15 vs. $0.12 Capital IQ Consensus Estimate; sees Q3 revs of $97-103 mln vs. $100.50 mln Capital IQ Consensus Estimate.
4:18 pm QLogic beats by $0.07, beats on revs (QLGC) : Reports Q3 (Dec) earnings of $0.36 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.29; revenues rose 17.4% year/year to $140.2 mln vs the $137.68 mln consensus.
"Our strong revenue performance, combined with our intense focus on operating expense management resulted in a significant expansion of our operating profit during the third quarter. Based on our compelling product portfolio, our focus on consistent execution and the current momentum with the enterprise upgrade cycle, we believe we are well positioned to continue delivering solid revenue and earnings per share performance."
4:17 pm Broadcom beats by $0.03, beats on revs; guides Q1 revs in-line (BRCM) : Reports Q4 (Dec) earnings of $0.90 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.87; revenues rose 3.8% year/year to $2.14 bln vs the $2.11 bln consensus. Co reports gross margin of 54.7% compared to 52.3% in prior year. Co issues in-line guidance for Q1, sees Q1 revs of $1.925-2.075 bln vs. $2.01 bln Capital IQ Consensus Estimate. Sees Non-GAAP Gross Margin in the range of 53.9-55.4%.
4:13 pm Harmonic beats by $0.03, beats on revs; guides Q1 revs in-line (HLIT) :
Reports Q4 (Dec) earnings of $0.06 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.03; revenues fell 10.2% year/year to $107.9 mln vs the $101.66 mln consensus.
Co issues in-line guidance for Q1, sees Q1 revs of $100-110 mln vs. $102.40 mln Capital IQ Consensus Estimate.
4:13 pm Google misses by $0.25, misses on revs (GOOG) : Reports Q4 (Dec) earnings of $6.88 per share, $0.25 worse than the Capital IQ Consensus Estimate of $7.13; revenues rose 15.2% year/year to $18.1 bln vs the $18.44 bln consensus.
GOOG Site Revenues +18% compared to +20% in Q3.
Revenues and Monetization
Sites Revenues - Our sites generated revenues of $12.43 billion, or 69% of total revenues, in the fourth quarter of 2014. This represents an 18% increase over fourth quarter 2013 sites revenues of $10.54 billion. Network Revenues - Our partner sites generated revenues of $3.72 billion, or 20% of total revenues, in the fourth quarter of 2014. This represents a 6% increase over fourth quarter 2013 network revenues of $3.52 billion. Other Revenues - Other revenues were $1.95 billion, or 11% of total revenues, in the fourth quarter of 2014. This represents a 19% increase over fourth quarter 2013 other revenues of $1.65 billion. International Revenues - Our revenues from outside of the United States totaled $10.23 billion, representing 56% of total revenues in the fourth quarter of 2014, compared to 58% in the third quarter of 2014 and 56% in the fourth quarter of 2013. Paid Clicks and Cost per Clicks
Paid Clicks increased approximately 14% y/y and 11% q/q. Cost-Per-Click decreased approximately 3% y/y and q/q. Cost-per-click for Google sites decreased approximately 8% y/y and q/q. Expenses
Operating expenses, other than cost of revenues, were $6.78 billion in the fourth quarter of 2014, or 37% of revenues, compared to $5.03 billion in the fourth quarter of 2013, or 32% of revenues. Free cash flow was $2.81 billion compared to $2.98 billion in the fourth quarter of 2013. We expect to continue to make significant capital expenditures.
4:11 pm Riverbed Technology beats by $0.02, misses on revs (RVBD) : Reports Q4 (Dec) earnings of $0.34 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.32; revenues were unchanged from the year-ago period at $283.4 mln.
"Taking into account the revenue impact from the sale of SteelStore, our fourth quarter revenue performance was consistent with our original expectations, while we exceeded the top end of our EPS range due in part to a more favorable tax rate."
4:10 pm Amazon.com reports Q4 operating income above guidance/estimates with rev just below estimates; guides Q1 below consensus (AMZN) : Reports Q4 (Dec) earnings of $0.45 per share, $0.29 better than the Capital IQ Consensus Estimate of $0.16; revenues rose 14.6% year/year to $29.33 bln vs the $29.63 bln consensus and $27.3-30.3 bln guidance
Q4 operating income $591 mln vs ~$180 mln est and ($570)-430 mln guidance.
Co issues downside guidance for Q1, sees Q1 revs of $20.9-22.9 bln vs. $22.96 bln Capital IQ Consensus Estimate. Operating income (loss) is expected to be between $(450) million and $50 mln vs ~$145 mln consensus and $146 million in 1Q14.4:09 pm JDS Uniphase misses by $0.01, misses on revs; guides Q3 EPS below consensus, revs below consensus (JDSU) : Reports Q2 (Dec) earnings of $0.15 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.16; revenues fell 2.3% year/year to $437.1 mln vs the $444.38 mln consensus.
Guidance: Co issues downside guidance for Q3, sees EPS of $0.09, +/- $0.02, vs. $0.14 Capital IQ Consensus Estimate; sees Q3 revs of $418 mln, +/- $10 mln, vs. $431.23 mln Capital IQ Consensus Estimate.
4:07 pm PMC-Sierra reports EPS in-line, beats on revs (PMCS) : Reports Q4 (Dec) earnings of $0.11 per share, in-line with the Capital IQ Consensus Estimate of $0.11; revenues rose 7.9% year/year to $136.9 mln vs the $135.31 mln consensus.4:04 pm Coherent beats by $0.10, beats on revs (COHR) : Reports Q1 (Dec) earnings of $0.87 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus Estimate of $0.77; revenues rose 3.6% year/year to $200.6 mln vs the $196.0 mln consensus.
"We posted solid numbers in our first fiscal quarter with expected benefits arising from higher volume. A better mix and lower warranty costs were positive contributors to gross profit percentage. Orders reflected the timing of certain OEM bookings and are not indicative of either a market slowdown or changes in market share."
11:55 am 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
NOW (73.33 +6.41%): Reported Q4 earnings that beat EPS consensus estimates by $0.01, beat on revs; guided Q1 & FY15 revs above consensus; Price target raised at BMO Capital Mkts, Canaccord Genuity, RBC, others.
COH (38.81 +6.45%): Reported Q2 (Dec) earnings of $0.72 per share, $0.06 better than the Capital IQ Consensus Estimate of $0.66; revenues fell 14.1% year/year to $1.22 bln vs the $1.23 bln consensus. Q2 N Am comps of -22% vs -13.6% year ago and -24% last qtr (prior guidance was for FY15 mid to high 20s comp decline).
CL (68.64 +5.41%): Beat Q4 consensus EPS estimates by $0.02, reported revs in-line.
Large Cap Losers
QCOM (62.8 -11.54%): Beat Q1 by $0.09, beat on revs; guided Q2 in-line; lowered FY15 guidance; announced Snapdragon 810 processor will not be in Samsung's Galaxy S6; Downgraded at Northland, UBS, others.
HSY (99.99 -7.14%): Missed Q4 consensus estimates by $0.02, missed on revs; guided FY15 EPS below consensus, revs below consensus.
VRTX (112.7 -7.06%): Reported Q4 (Dec) loss of $0.55 per share, excluding non-recurring items, $0.09 worse than the Capital IQ Consensus Estimate of ($0.46); revenues fell 58.8% year/year to $144.56 mln vs the $135.59 mln consensus; sees KALYDECO net revenues of $560 to $580 million for 2015; Downgraded at Needham, Maxim, others.
Mid Cap Gainers
HAR (119.21 +18.02%): Beat Q2 consensus estimates by $0.51, beat on revs; guided FY15 EPS above consensus, reaffirmed FY15 revs guidance; Announced strategic collaboration with Baidu (BIDU).
CMPR (81.45 +12.53%): Beat Q2 consensus estimates by $0.50, beat on revs; guided FY15 EPS above consensus, revs below consensus.
KATE (32.51 +9.35%): Announced plan to focus investment on Kate Spade New York; guided FY14 and FY15; Announced JV with Walton Brown to scale and accelerate growth in China.
Mid Cap Losers
TGI (55.29 -10.36%): Reported Q3 (Dec) earnings of $1.42 per share, excluding non-recurring items, $0.10 worse than the Capital IQ Consensus Estimate of $1.52; revenues rose 0.2% year/year to $917.4 mln vs the $980.64 mln consensus; guided Q4 EPS in-line; guided FY15 revs in-line.
CLB (91 -8.86%): Reported EPS in-line, revs in-line; guided Q1 EPS below consensus, revs below consensus.
RES (10.89 -8.56%): Downgraded to Neutral from Accumulate at Global Hunter Securities.
11:51 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (253) outpacing new highs (147) (:SCANX) :
Stocks that traded to 52 week highs: AFB, ANGO, APTS, AYN, BA, BAF, BBF, BBK, BBN, BFK, BFS, BFZ, BNJ, BNY, BPS, BR, BRP, BSE, BTA, BTT, BUD, BYM, CCA, CCMP, CEMP, CGI, CMPR, CRMD, CSWC, CTCT, CXE, CXH, CXW, DBL, DEG, DMF, DOOR, EA, EIM, ENX, EVO, FFC, FLC, GBAB, GEO, GFF, GSH, HAR, HLS, HOLX, HSKA, HZO, IMAX, IQI, ITG, JBLU, JHP, KLIC, KRC, LUX, MD, MFL, MFM, MHD, MIY, MJI, MLNX, MMD, MNE, MNP, MQT, MTT, MUA, MUC, MUE, MUH, MUI, MUJ, MUS, MVF, MYC, MYD, MYJ, MYN, NAC, NAVG, NID, NIO, NIQ, NKG, NMA, NMO, NMT, NMY, NMZ, NOC, NOW, NPI, NPM, NPP, NPV, NQI, NQM, NQP, NQS, NQU, NRK, NTC, NUV, NVG, NVX, NXJ, NXN, NXZ, NZF, OCUL, OPK, ORAN, OVLY, PENN, PFO, PMF, PML, PMM, PMO, PMX, PNI, PSO, PZZA, QADB, RDUS, RESN, RIF, ROL, TA, TSCO, TSRA, TSS, VAR, VCV, VGM, VKI, VKQ, VMO, WX, XNCR, ZLTQ
Stocks that traded to 52 week lows: ABB, ACFN, ACI, AES, AGI, AIRM, AIXG, ALB, ALLY, ANGI, ANR, AOI, APPY, AR, ATV, AVL, AXE, BALT, BDE, BIOC, BMO, BNS, BORN, BOX, BPFH, BRDR, BRS, BSPM, BXE, CAM, CAT, CBNJ, CCJ, CEL, CERE, CFX, CHOP, CIG.C, CJES, CLB, CLD, CLNE, CM, CMO, CNTF, CNX, COP, CPS, CPSS, CRK, CRR, CRRS, CRS, CTCM, CTP, CVEO, CX, CXDC, CYCC, DANG, DMD, DNN, DPM, DSKY, DWA, ECPG, EFII, EGLE, EMN, EMR, ENRJ, ESEA, ETJ, EXH, EXP, FBRC, FCX, FET, FFHL, FITB, FIVN, FLR, FLS, FMER, FMSA, FOE, FTGC, FTI, FUEL, GBCI, GEF, GES, GEVO, GHL, GNW, GPRK, GRAM, GSOL, GTE, HEES, HELI, HGT, HNR, HP, HSC, HY, IBKC, IBM, ICA, IGLD, IKGH, IO, ITT, JEC, JMI, KEX, KMT, KOP, KRO, L, LDR, LEE, MBVT, MCC, MDLY, MDM, MFC, MGIC, MIND, MN, MOMO, MRC, MUR, MVC, NOA, NOV, NQ, NRG, NRIM, NUE, NVFY, OCLS, OGXI, OI, OII, OIS, ONCY, ONDK, OPTT, OPWR, OPXA, OPY, PACD, PB, PCBK, PDS, PERI, PFMT, PGN, PICO, PIM, PKX, PQ, PRGN, PSCE, PTC, PWE, QCOM, RAVN, RCMT, RES, RIBT, RIVR, RLOC, RMT, RNET, ROSE, ROYL, RRC, RS, RXN, RY, RYAM, RYI, SALT, SARA, SB, SBLK, SFUN, SGM, SLF, SMM, SNC, SNTA, SOL, SPE, SQNS, SR, SSE, STB, STRL, SXC, SZYM, TAT, TCB, TD, TDW, TEX, TGA, TGI, THR, THRX, TICC, TK, TLF, TMST, TOO, TPRE, TRC, TRMB, TRMK, TTI, TWI, TWIN, TZOO, UBNK, UBNT, UBSH, ULTR, UMBF, UMPQ, UNT, VBTX, VECO, VLY, VMW, VOC, VPCO, WABC, WAIR, WILN, WMGI, WRES, WSCI, WTI, XGTI, XOM, YGE, YNDX, ZHNE, ZINC, ZION, ZU
ETFs that traded to 52 week highs: none
ETFs that traded to 52 week lows: DBA, DBC, DJP, EWC, FXA, FXC, GSG, JJC, KOL, NIB, OIL, RJA, SLX, UNG, URA, USCI, USO, XES, XME
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