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Thursday, April 30, 2015 9:50:37 PM
From Briefing.com: It was a down day all around for the equity market on the last day of April. Every major average finished lower by at least 1.0% and every sector in the S&P 500 finished in negative territory.
The broad-based weakness was fed by stepped-up profit-taking interest that kicked in as technical support levels were violated and as former leadership stocks/groups like Apple (AAPL 125.24, -3.40, -2.7%), the transports, the biotech issues, and consumer discretionary names remained on the defensive.
Pulled lower by Apple's weakness, the S&P 500 information technology sector (-1.6%) was the worst-performing sector in Thursday's trade. Apple, however, had plenty of company as 57 of the sector's 66 components lost ground.
Notable news items from sector components included the following:
Apple (AAPL 125.24, -3.40, -2.7%): According to The Wall Street Journal, Apple reportedly found defects in a watch component supplied by Chinese firm AAC Technologies Holdings that curtailed the availability of the watch.
Autodesk (ADSK 56.81, -2.74, -4.6%): Announced it is working with Microsoft (MSFT 48.64, -0.42, -0.9%) to embed its 3D printing platform in Windows 10, and that it intends to make its 3D modeling software interoperable with Microsoft's mixed reality environment
Automatic Data Processing (ADP 84.54, -0.85, -1.0%): Before Thursday's open, reported Q3 (Mar) earnings of $1.04 per share, which was ahead of analysts' average expectation. Revenues rose 7.3% year/year to $3.03 bln. For FY15, raises EPS growth to +14% from +12-14% and lowers revenue growth to +7% from +7-8% due to FX (2% headwind). This forecast, the company said, anticipates at least 75 basis points of pretax margin expansion from 18.4% in fiscal 2014
Fidelity National Information Services (FIS 62.49, -1.66, -2.6%): Before Thursday's open, reported Q1 (Mar) earnings of $0.65 per share, excluding non-recurring items, which was slightly below analysts' average expectation. Revenues rose 1.6% year/year to $1.54 bln, also below estimates. For FY15, sees EPS of $3.27-3.37 and revenues of $6.49-6.62 bln. Harris (HRS 80.23, +0.98, +1.2%): Company and Thales Defense & Security were awarded a ceiling $3,885,119,045 firm-fixed-price and cost reimbursable, indefinite-delivery/indefinite-quantity contract with options for rifleman radios and associated services. Funding and work location will be determined with each order with an estimated completion date of April 28, 2025.
Microsoft (MSFT 48.64, -0.42, -0.9%): According to The Wall Street Journal, Microsoft to purchase N-Trig for $30 mln
Visa (V 66.05, -1.29, -1.9%): After Thursday's close, reported Q2 (Mar) earnings of $0.63 per share, a penny ahead of analysts' average expectation. Revenues rose 7.8% year/year to $3.41 bln, which was ahead of estimates. Visa Inc. reaffirmed its financial outlook for the following metrics for fiscal full-year 2015: Constant dollar revenue growth of low double digits, with an expectation of two percentage points of negative foreign currency impact; Client incentives as a percent of gross revenues: 17.5% to 18.5% range; Annual operating margin: Mid 60s; Tax rate: Low 30s; Annual free cash flow greater than $6 billion. Annual diluted class A common stock earnings per share growth: Low-end of the mid-teens range.
Western Union (WU 20.28, -0.11, -0.5%): After Thursday's close, reported Q1 (Mar) earnings of $0.39 per share, which was a penny ahead of analysts' average expectation. Revenues fell 2.2% year/year to $1.32 bln. For FY15, sees EPS of $1.58-1.65. Company reaffirmed FY15 revenue guidance of a low to mid-single digit GAAP revenue decrease.
Elsewhere in the technology space:
Alibaba (BABA 81.29, -1.16, -1.4%): Alibaba's Tmall Global announced the launch of a new "World Duty Free" service that allows Chinese tourists to prepay for their duty-free purchases before going on vacation.
Arrow Electronics (ARW 59.71, -3.25, -4.9%): Before Thursday's open, reported Q1 (Mar) earnings of $1.32 per share, excluding non-recurring items, which was ahead of analysts' average expectation. Revenues rose 3.4% year/year to $5.01 bln, which was slightly below estimates. For Q2, sees EPS of $1.43-1.55 and revenues of $5.45-5.85 bln.
Brocade (BRCD 11.30, -0.52, -4.5%): Announced it is redefining networking for IP storage systems with the industry's first purpose-built storage connectivity portfolio for both data center and disaster recovery applications to help enterprise IT teams manage growth, mitigate risk, and reduce costs. EMC will continue to work to integrate new IP storage technology features to the EMC Connectrix family of network switches and management software.
Cypress Semiconductor (CY 13.33, +0.53, +4.1%): Before Thursday's open, reported Q1 (Mar) loss of $0.45 per share, which includes a $107 mln adjustment for aged and excess inventory acquired through the merger with Spansion. Revenues rose 22.8% year/year to $209.1 mln, which was slightly below analysts' average expectation. CY closed a $5 billion merger with Spansion Inc. on March 12, earlier than anticipated. Says $8.4 million in annualized synergies already realized. Company raised synergy cost savings to $160 mln from $135 mln after closing Spansion merger. Sees Q2 non-GAAP EPS $0.11-0.15 and revenue of $475-500 mln.
FireEye (FEYE 41.30, -1.66, -3.9%): After Thursday's close, reported Q1 (Mar) loss of $0.48 per share, which was ahead of analysts' average expectation. Revenues rose 69.5% year/year to $125.4 mln, also ahead of estimates. For Q2, sees EPS of ($0.50)-($0.47), excluding non-recurring items, and revenues of $140-144 mln. Both guidance ranges are in-line with estimates. For FY15, sees EPS of ($1.85)-($1.75), excluding non-recurring items, and revenues of $615-635 mln.
LinkedIn (LNKD 252.13, -5.02, -2.0%): After Thursday's close, reported Q1 (Mar) earnings of $0.57 per share, a penny ahead of analysts' average expectation. Revenues rose 34.9% year/year to $638 mln, also slightly ahead of estimates. For Q2, sees EPS of ~$0.28 and revenues of $670-675 mln. For FY15, lowers EPS to ~$1.90 from ~$2.95, which may not be comparable consensus expectations; lowers FY15 revenues to ~$2.90 bln from $2.93-2.95 bln. Shares of LNKD were trading 26% lower in after-hours action.
Nokia (NOK 6.58, -0.91, -12.2%): Before Thursday's open, reported Q1 (Mar) earnings of 0.05 per share, in-line with expectations. Revenues rose 20.0% year/year to 3.2 bln vs the 3.01 bln consensus. 15% year-on-year net sales growth driven by growth in four out of our six regions, with non-IFRS operating margin declining to 3.2% from 9.3%. 21% year-on-year growth in Global Services net sales, primarily driven by strong growth in the network implementation business line. 10% year-on-year growth in Mobile Broadband net sales, primarily driven by overall radio technologies, particularly LTE. Company expects net sales for Nokia Networks to increase year-over-year in FY15.
OmniVision Technologies (OVTI 27.910, +1.35, +5.1%): Before Thursday's open, the company announced that it has entered into a definitive agreement to be acquired by a consortium composed of Hua Capital management Co., Ltd., CITIC Capital holdings Limited, and Goldstone Investment Co., Ltd. Under the terms of the agreement, OmniVision stockholders will receive $29.75 per share in cash, or a total of approximately $1.9 billion. the agreement was unanimously approved by OmniVision's Board of Directors.
NXP Semi (NXPI 96.08, +0.66, +0.6%): Before Thursday's open, reported Q1 (Mar) earnings of $1.35 per share, which was ahead of analysts' average expectation. Revenues rose 17.7% year/year to $1.47 bln. For Q2, sees EPS of $1.33-1.43 and revenues of $1.49-1.54 bln.
Twitter (TWTR 38.96, +0.47, +1.3%): After Wednesday's close, Twitter disclosed that in connection with the acquisition of TellApart, it agreed to issue up to an aggregate of ~12.6 mln shares of its common stock as a portion of the consideration for all of the outstanding equity of TellApart IDC reports overall shipments for tablets and 2-in-1 devices fell to 47.1 million in 1Q15, a -5.9% YoY.
In industry news, IDC said Apple still leads the overall market despite five consecutive quarters of negative annual shipment growth. Apple shipped 12.6 million iPads in the first quarter, capturing 26.8% of the market in volume and declining -22.9% when compared to 1Q14. Samsung (19.1% share) maintained its second place in the market despite a -16.5% decline in shipments compared to the same period last year.
Analyst Action:
MasterCard (MA 90.21, -0.04, -0.04%): target raised to $105 from $91 at Susquehanna
Microsoft (MSFT 48.64, -0.42, -0.9%): target raised to $54 from $50 at RBC Capital Markets; Outperform
Salesforce.com (CRM 72.82, -1.83, -2.6%): target raised to $83 from $79 at Stifel; Buy... downgraded to Outperform from Buy at Credit Agricole
Yelp (YELP 39.39, -11.89, -23.8%): target lowered to $48 from $51 at UBS; Neutral... target lowered to $42 from $48 at Axiom Capital; Hold... downgraded to Sector Perform from Outperform at RBC Capital Markets; target to $50 from $82... target lowered to $75 from $90 at Wunderlich; Buy... target lowered to $68 from $78 at Cantor Fitzgerald... downgraded to Neutral from Buy at Bank of America/Merrill Lynch... target lowered to $55 from $80 at Needham; Buy... target lowered to $60 from $76 at Oppenheimer; Outperform... target lowered to $52 from $70 at Sun Trust Robonson Humphrey(Disclosure: Briefing.com has a business relationship with Microsoft)
5:05 pm Teradyne beats by $0.05, beats on revs; guides Q2 EPS above consensus, revs in-line (TER) : Reports Q1 (Mar) earnings of $0.17 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.12; revenues rose 6.5% year/year to $342 mln vs the $331.38 mln consensus.
Orders in the first quarter of 2015 were $490 million of which $397 million were in Semiconductor Test, $66 million in System Test and $27 million in Wireless Test.
Co states: "On the capital return front, we repurchased 2.4 million shares and paid $13 million in dividends in the first quarter. For the full year, we remain on track to repurchase at least $300 million of the $500 million Board authorization."
Guidance: Co issues mixed guidance for Q2, sees EPS of $0.42-$0.48 vs. $0.36 Capital IQ Consensus Estimate; sees Q2 revs of $470-$500 mln vs. $448.23 mln Capital IQ Consensus Estimate.
4:51 pm Aehr Test Systems announces an order receipt for an ABTS burn-in and test system from a Chinese customer (AEHR) : Co announced it has received an order from a new customer in China for immediate shipment of an ABTS burn-in and test system for high temperature operating life testing of devices for reliability characterization. The system is expected to ship within the next month.
4:38 pm QLogic beats by $0.02, misses on revs (QLGC) : Reports Q4 (Mar) earnings of $0.28 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.26; revenues rose 15.0% year/year to $133 mln vs the $135.36 mln consensus.
4:35 pm AXT beats by $0.01, reports revs in-line (AXTI) : Reports Q1 (Mar) loss of $0.03 per share, $0.01 better than the Capital IQ Consensus Estimate of ($0.04); revenues rose 2.6% year/year to $20.1 mln vs the $19.94 mln consensus.
4:31 pm First Solar and Caterpillar (CAT) announce a strategic alliance to develop an integrated photovoltaic solar solution for microgrid applications (FSLR) : Under the agreement, First Solar will design and manufacture a pre-engineered turnkey package for use in remote microgrid applications, such as small communities and mine sites. The package will feature Cat-branded solar panels manufactured by First Solar and will include a balance of system components.
Caterpillar will exclusively sell and support the integrated solution featuring Cat-branded solar panels through its worldwide Cat dealer network, along with its current offerings of generator sets and energy storage. Caterpillar expects to first market the new microgrid solution in the Asia Pacific, Africa, and Latin America regions, with the integrated PV solution, including Cat-branded solar panels, available for customers in that region in the second half of 2015
4:30 pm Brooks Automation beats by $0.02, beats on revs; guides Q3 EPS in-line, revs in-line (BRKS) : Reports Q2 (Mar) earnings of $0.08 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.06; revenues rose 10.6% year/year to $139.3 mln vs the $132.83 mln consensus.
Co issues in-line guidance for Q3, sees EPS of $0.08-0.12, excluding non-recurring items, vs. $0.11 Capital IQ Consensus Estimate; sees Q3 revs of $136-142 mln vs. $138.77 mln Capital IQ Consensus Estimate.
4:29 pm SunPower beats by $0.05, misses on revs; Reiterates not guiding until ot sees more clarity in YieldCo biz (SPWR) : Reports Q1 (Mar) earnings of $0.13 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.08; revenues fell 37.0% year/year to $430.6 mln vs the $443.61 mln consensus.
Non-GAAP Gross Margin 20.5% compared to 22.0% in prior year period. SunPower believes that its underlying business fundamentals remain strong for 2015. However, in light of the company's announcement on Feb. 23, 2015 of its intention to form a joint YieldCo vehicle, 8point3 Energy Partners, with First Solar, and the pending S-1 registration statement, the company will withhold fiscal year 2015 guidance until the company can finalize the estimates regarding the impact of the proposed YieldCo vehicle on the company's expected financial performance. The company will provide an update at a later date.
4:28 pm Cohu beats by $0.10, beats on revs (COHU) : Reports Q1 (Mar) earnings of $0.03 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus Estimate of ($0.07); revenues rose 4.9% year/year to $68.1 mln vs the $62.74 mln consensus.
4:17 pm Skyworks beats by $0.02, beats on revs; guides Q3 above consensus (SWKS) : Reports Q2 (Mar) earnings of $1.15 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $1.13; revenues rose 58.4% year/year to $762 mln vs the $751.82 mln consensus.
Co issues upside guidance for Q3, sees EPS of $1.28, excluding non-recurring items, vs. $1.19 Capital IQ Consensus Estimate; sees Q3 revs of $800 mln vs. $781.02 mln Capital IQ Consensus Estimate.
4:10 pm JDS Uniphase beats by $0.03, misses on revs; guides Q4 EPS below consensus, revs below consensus (JDSU) :
Reports Q3 (Mar) earnings of $0.12 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.09; revenues fell 1.7% year/year to $410.7 mln vs the $418.12 mln consensus.
Co issues downside guidance for Q4, sees EPS of $0.09-0.13 vs. $0.16 Capital IQ Consensus Estimate; sees Q4 revs of $413-433 mln vs. $444.36 mln Capital IQ Consensus Estimate.
"JDSU delivered better-than-expected operating margin and EPS despite muted carrier spending that impacted our Network and Service Enablement businesses. We saw strength in optical components for datacom, achieving a record revenue quarter, and are encouraged by progress in our next generation service enablement solutions. Lumentum and Viavi Solutions are building momentum and we remain on plan to complete the spin in the third calendar quarter this year."
4:15 pm : The major averages ended April on a lower note, but managed to escape with monthly gains. The S&P 500 lost 1.0% and narrowed its April advance to 0.9% while the Nasdaq Composite (-1.6%) underperformed today and ended the month (+0.8%) just behind the benchmark index.
Equity indices faced selling pressure from the get-go with the largest sector-technology (-1.6%)-leading the daylong retreat. The influential group faced broad-based weakness with its top component-Apple (AAPL 125.15, -3.49)-sliding 2.7% after the Wall Street Journal reported that some watch components provided by AAC Technologies (AACAY 53.31, -2.79) may be defective. That being said, other sector members also struggled with Yelp (YELP 39.36, -11.92) cratering in reaction to its quarterly report. Shares of YELP tumbled 23.2% in reaction to disappointing earnings/revenue and cautious revenue guidance for Q2.
The tech sector contributed to the underperformance of the Nasdaq, but the index also faced significant weakness in the biotech group. The iShares Nasdaq Biotechnology ETF (IBB 333.66, -11.15) lost 3.2% and settled just above its 100-day moving average (331.05). The ETF dropped 2.8% in April while the health care sector (-1.5%) underperformed today and lost 1.4% for the month.
Elsewhere among influential groups, the industrial sector (-0.9%) ended ahead of the broader market, but that masked relative weakness among transport stocks. The Dow Jones Transportation Average lost 1.3%, ending the month lower by 1.7%. On the earnings front, freight carrier Con-way (CNW 41.10, -1.40) lost 3.3% after reporting a one-cent beat on light revenue while shipper Kirby (KEX 78.53, -3.37) dropped 4.1% after its cautious guidance overshadowed a one-cent beat.
All ten sectors finished the day in negative territory with energy (-0.4%) succumbing to the pressure during late afternoon action. The sector displayed intraday strength thanks to crude oil's 1.8% advance to $59.63/bbl. For the month, the energy sector gained 6.6% while crude oil spiked 20.8% amid a pullback in the dollar.
Fittingly, the Dollar Index (94.78, -0.43) retreated again today, which represented the seventh consecutive decline. Greenback weakness was a recurring theme in April with the Dollar Index losing 3.5% for the month after posting nine monthly gains. The euro benefitted from the pullback in the dollar with the single currency rising from 1.0731 to 1.1225 in April.
Treasuries retreated in the morning, but reclaimed all of their losses during the day. The 10-yr yield ended at 2.04%, representing the highest level since mid-March.
Today's participation was above average with month-end flows likely responsible for the difference. As a result, more than a billion shares changed hands at the NYSE floor.
Economic data included initial claims, Personal Income/Spending data, Q1 Employment Cost Index, and Chicago PMI:
The initial claims level declined to 262,000 for the week ending April 25 from an upwardly revised 296,000 (from 295,000) while the Briefing.com consensus expected a decline to 290,000
According to the Department of Labor, there were no special factors that impacted the initial claims reading, which hit the lowest level since April 2000
Personal income growth was virtually flat in March after increasing 0.4% in February while the Briefing.com consensus expected an increase of 0.2%
That was the weakest personal income increase since December 2013
Personal spending increased 0.4% in March after increasing an upwardly revised 0.2% (from 0.1%) in February while the consensus expected an increase of 0.5%
The Employment Cost Index increased 0.7% in Q1 2015 after increasing a downwardly revised 0.5% (from 0.6%) in Q4 2014 while the Briefing.com consensus expected an increase of 0.6%
Wages and salaries increased 0.7% in the first quarter, up from a 0.6% increase in Q4 2014
Benefits spending growth held steady at 0.6%
The Chicago PMI increased to 52.3 in April from 46.3 in March while the Briefing.com Consensus expected an increase to 50.0
The increase ended two consecutive monthly contractions
The Production Index increased to 52.7 in April from 49.3 in March
Tomorrow, the ISM Index for April (Briefing.com consensus 51.9), March Construction Spending (expected 0.4%), and the final reading of the April Michigan Sentiment Index (consensus 96.0) will all be released at 10:00 ET.
Nasdaq Composite +4.3% YTD
Russell 2000 +1.3% YTD
S&P 500 +1.3% YTD
Dow Jones Industrial Average +0.1% YTD
DJ30 -195.01 NASDAQ -82.22 SP500 -21.34 NASDAQ Adv/Vol/Dec 679/1.96 bln/2699 NYSE Adv/Vol/Dec 698/1.05 bln/2375
3:35 pm :
Natural gas futures surge higher on storage data, closing floor trading 6% higher at $2.75/MMBtu
WTI crude oil was strong as well, rally above the $59/barrel level, closing +$1.02 at $59.54/barrel'
Precious metals tanked today, but recovered some
June gold lost -2.3% (or -$27.80) to $1182.20/oz, while July silver closed -3.2% to $16.15/oz
July copper rallied +$0.08 to $2.88/lb
Large Cap Gainers
ROK (119.01 +5.95%): Beat Q2 consensus EPS estimates by $0.17, reported revs in-line; reaffirmed FY15 EPS guidance, guided FY15 revs below consensus.
EQIX (260.43 +6.38%): Reported Q1 (Mar) results, revs in-line; guided Q2 revs above consensus; guided FY15 revs in-line; Price tgt raised at Canaccord Genuity.
ABC (115.63 +2.84%): Beat Q2 consensus EPS estimates by $0.26, beat on revs; guided FY15 EPS above consensus; announced new special $1 bln share repurchase program.
Large Cap Losers
BIDU (203.49 -7.08%): Beat Q1 consensus EPS estimates by $0.11, reported revs in-line; guided Q2 revs in-line;
VALE (7.06 -2.75%): Reported Q1 results, Adjusted EBITDA was $1.602 billion; Gross revenues reached $6.358 bln and may not comp to $7.01 bln consensus.
ZMH (110.61 -4.1%): Reported Q1 EPS in-line, missed on revs; lowered FY15 EPS on FX; raised synergy, lowered accretion guidance for Biomet merger.
Mid Cap Gainers
WX (43.31 +9.65%): Announced receipt of proposal to acquire all outstanding shares for $46/ADS share in cash.
PPC (25.07 +4.11%): Reported Q1 (Mar) earnings of $0.82 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.77; revenues rose 1.7% year/year to $2.05 bln vs the $2.08 bln consensus.
COMM (29.61 +6.63%): Beat Q1 consensus EPS estimates by $0.06, reported revs in-line; guided Q2 EPS below consensus, revs below consensus; reaffirmed FY15 EPS guidance.
Mid Cap Losers
YELP (40.02 -21.95%): Missed Q1 consensus EPS estimates by $0.06, missed on revs; guided Q2 revs below consensus; reaffirmed FY15 revs guidance; Downgraded at RBC Capital Mkts, Northland Capital, BofA/Merrill, others.
PCRX (68.99 -15.99%): Reports Q1 (Mar) earnings of $0.27 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $0.21; revenues rose 59.1% year/year to $58.31 mln vs the $61.36 mln consensus; suspended its full year 2015 guidance for EXPAREL.
STM (7.97 -13.19%): Reported Q1 EPS in-line, revs in-line; guided Q2 revs in-line; downgraded at Kepler Cheuvreux.
11:52 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (96) outpacing new highs (60) (:SCANX) : Stocks that traded to 52 week highs: ABC, ALLE, APTS, ASH, ATRC, AVG, AVY, BGCP, BKSC, BLVD, CACC, CBS.A, CHMT, CKSW, CLBH, CLRO, CMT, COLM, CORI, COWN, CSGP, CYOU, DHIL, EQIX, ETFC, EURN, FIX, FPF, GSH, HF, HOLX, IGTE, INTL, IVZ, JBT, JCAP, KEN, LQ, LUX, MELI, MFLX, MLM, MYCC, NYCB, OEC, OSHC, PATK, PBHC, RDWR, SCI, STRZA, TASR, TILE, TPX, TREE, TSLF, VAC, VRX, WIFI, WX
Stocks that traded to 52 week lows: AIXG, AKAO, AP, ARDX, ARR, ASEI, ASND, AXE, BPI, BSI, BV, BVSN, BWEN, CALL, CBLI, CBYL, CDNA, CIDM, CIM, CLI, CUZ, DEST, DRYS, DSS, DV, DXM, EGL, EGP, EMMS, ERIC, FARO, FORR, FPO, FTEK, FUEL, GLRI, GOV, GRC, ICLD, IF, ISH, IVAC, LL, LPTN, LXP, MHGC, MNKD, MOBL, MPEL, MSL, MTGE, MXPT, NATH, NKTR, NLY, NNVC, NOK, NRP, NVDQ, NVTA, OCRX, OFG, OPXA, ORN, PANL, PCRX, PDII, PDM, PERF, PFMT, PKY, PNX, PRTS, PTBI, PTNT, QUIK, RDEN, RWLK, RYN, SJT, SNH, SPDC, SPW, SSYS, STRI, STRM, TCO, TSU, TTF, UPLD, UTIW, VTNR, VVUS, WPCS, WPG, XOMA
ETFs that traded to 52 week highs: TAO
ETFs that traded to 52 week lows: IDX
8:04 am Cypress Semi reports Q1 results, misses on revs (CY) : Reports Q1 (Mar) loss of $0.45 per share, which includes a $107 mln adjustment for aged and excess inventory acquired through the merger with Spansion. This does not compare to the $0.07 CapIQ consensus. Revenues rose 22.8% year/year to $209.1 mln vs the $215.59 mln consensus.
CY closed a $5 billion merger with Spansion Inc. on March 12, earlier than anticipated. Says $8.4 million in annualized synergies already realized.
8:01 am Microvision misses by $0.01 (MVIS) : Reports Q1 (Mar) loss of $0.09 per share, $0.01 worse than the Capital IQ Consensus Estimate of ($0.08). As of March 31, 2015, backlog was $18.7 million and cash and cash equivalents were $16.7 million. The cash balance includes funds received during the quarter of approximately $2.3 million from the exercise of previously issued warrants and $1.0 million from the sale of stock through an At-the-Market (:ATM) equity facility MicroVision established last June, which is now completed.
8:01 am OmniVision confirms it will be acquired by consortium for $29.75 per share, or ~$1.9 bln (shares halted) (OVTI) : The co announced that it has entered into a definitive agreement to be acquired by a consortium composed of Hua Capital Management Co., Ltd., CITIC Capital Holdings Limited, and GoldStone Investment Co., Ltd. Under the terms of the agreement, OmniVision stockholders will receive $29.75 per share in cash, or a total of approximately $1.9 billion. The agreement was unanimously approved by OmniVision's Board of Directors.
7:43 am DSP Group beats by $0.03, beats on revs (DSPG) : Reports Q1 (Mar) earnings of $0.09 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.06; revenues rose 16% year/year to $38.0 mln vs the $37.1 mln consensus.
6:26 am Cabot Micro misses by $0.10, misses on revs (CCMP) : Reports Q2 (Mar) earnings of $0.55 per share, $0.10 worse than the Capital IQ Consensus of $0.65; revenues rose 5.4% year/year to $104.9 mln vs the $106.81 mln consensus.
"Looking ahead, some of our customers and industry reports are calling for softer semiconductor industry conditions during the June quarter compared to the March quarter. Through the first month of our third fiscal quarter we have also seen some softness in demand for our CMP consumables products. However, we are confident that we can continue to successfully manage our business over a range of demand environments, and believe that we are well positioned for the future."
4:55 am UTStarcom wins major contract to support carrier Wi-Fi system in Bangladesh (UTSI) : Co announced that it has been awarded a significant contract to support a major Carrier Wi-Fi system integration for Banglalion Communications, a WiMAX 4G operator in Bangladesh. This partnership further complements UTStarcom's efforts to expand its global footprint and will allow the Company to enter a new growth market.
As part of the contract, UTStarcom will supply the Carrier Wi-Fi solution to Banglalion Communications within Bangladesh. It will also include the Access Controller, Access Point and EMS management system. UTStarcom will also supply and integrate the Carrier Wi-Fi system equipped with a TD-LTE service and this will enable the operator to unify user and billing management
3:14 am Advanced Semi misses by NT$0.02; beats on revs (ASX) : Reports Q1 EPS NT$0.56 vs NT$0.58 Cap IQ consensus; revs increased 18% YoY to NT$64.66 bln vs NT$64.21 bln consensus
OUTLOOK
Based on our current business outlook and exchange rate assumptions, management projects overall performance for the second quarter of 2015 to be as follows:
IC ATM production capacity will be up 2%; blended IC ATM utilization should be flat to up 2%
IC ATM gross margin should stay relatively unchanged from the previous quarter
EMS business should reach a level between the results of the last two quarters
EMS gross margin might be slightly lower than the normalized margin in the previous quarter due to customer supply chain issues
1:42 am NXP Semi beats by $0.04, reports revs in-line; guides Q2 EPS in-line, revs in-line (NXPI) : Reports Q1 (Mar) earnings of $1.35 per share, $0.04 better than the Capital IQ Consensus Estimate of $1.31; revenues rose 17.7% year/year to $1.47 bln vs the $1.48 bln consensus.
Non-GAAP Gross margin 48.5%
Guidance:
Co issues in-line guidance for Q2, sees EPS of $1.33-1.43 vs. $1.41 Capital IQ Consensus Estimate; sees Q2 revs of $1.49-1.54 bln vs. $1.54 bln Capital IQ Consensus Estimate.
The broad-based weakness was fed by stepped-up profit-taking interest that kicked in as technical support levels were violated and as former leadership stocks/groups like Apple (AAPL 125.24, -3.40, -2.7%), the transports, the biotech issues, and consumer discretionary names remained on the defensive.
Pulled lower by Apple's weakness, the S&P 500 information technology sector (-1.6%) was the worst-performing sector in Thursday's trade. Apple, however, had plenty of company as 57 of the sector's 66 components lost ground.
Notable news items from sector components included the following:
Apple (AAPL 125.24, -3.40, -2.7%): According to The Wall Street Journal, Apple reportedly found defects in a watch component supplied by Chinese firm AAC Technologies Holdings that curtailed the availability of the watch.
Autodesk (ADSK 56.81, -2.74, -4.6%): Announced it is working with Microsoft (MSFT 48.64, -0.42, -0.9%) to embed its 3D printing platform in Windows 10, and that it intends to make its 3D modeling software interoperable with Microsoft's mixed reality environment
Automatic Data Processing (ADP 84.54, -0.85, -1.0%): Before Thursday's open, reported Q3 (Mar) earnings of $1.04 per share, which was ahead of analysts' average expectation. Revenues rose 7.3% year/year to $3.03 bln. For FY15, raises EPS growth to +14% from +12-14% and lowers revenue growth to +7% from +7-8% due to FX (2% headwind). This forecast, the company said, anticipates at least 75 basis points of pretax margin expansion from 18.4% in fiscal 2014
Fidelity National Information Services (FIS 62.49, -1.66, -2.6%): Before Thursday's open, reported Q1 (Mar) earnings of $0.65 per share, excluding non-recurring items, which was slightly below analysts' average expectation. Revenues rose 1.6% year/year to $1.54 bln, also below estimates. For FY15, sees EPS of $3.27-3.37 and revenues of $6.49-6.62 bln. Harris (HRS 80.23, +0.98, +1.2%): Company and Thales Defense & Security were awarded a ceiling $3,885,119,045 firm-fixed-price and cost reimbursable, indefinite-delivery/indefinite-quantity contract with options for rifleman radios and associated services. Funding and work location will be determined with each order with an estimated completion date of April 28, 2025.
Microsoft (MSFT 48.64, -0.42, -0.9%): According to The Wall Street Journal, Microsoft to purchase N-Trig for $30 mln
Visa (V 66.05, -1.29, -1.9%): After Thursday's close, reported Q2 (Mar) earnings of $0.63 per share, a penny ahead of analysts' average expectation. Revenues rose 7.8% year/year to $3.41 bln, which was ahead of estimates. Visa Inc. reaffirmed its financial outlook for the following metrics for fiscal full-year 2015: Constant dollar revenue growth of low double digits, with an expectation of two percentage points of negative foreign currency impact; Client incentives as a percent of gross revenues: 17.5% to 18.5% range; Annual operating margin: Mid 60s; Tax rate: Low 30s; Annual free cash flow greater than $6 billion. Annual diluted class A common stock earnings per share growth: Low-end of the mid-teens range.
Western Union (WU 20.28, -0.11, -0.5%): After Thursday's close, reported Q1 (Mar) earnings of $0.39 per share, which was a penny ahead of analysts' average expectation. Revenues fell 2.2% year/year to $1.32 bln. For FY15, sees EPS of $1.58-1.65. Company reaffirmed FY15 revenue guidance of a low to mid-single digit GAAP revenue decrease.
Elsewhere in the technology space:
Alibaba (BABA 81.29, -1.16, -1.4%): Alibaba's Tmall Global announced the launch of a new "World Duty Free" service that allows Chinese tourists to prepay for their duty-free purchases before going on vacation.
Arrow Electronics (ARW 59.71, -3.25, -4.9%): Before Thursday's open, reported Q1 (Mar) earnings of $1.32 per share, excluding non-recurring items, which was ahead of analysts' average expectation. Revenues rose 3.4% year/year to $5.01 bln, which was slightly below estimates. For Q2, sees EPS of $1.43-1.55 and revenues of $5.45-5.85 bln.
Brocade (BRCD 11.30, -0.52, -4.5%): Announced it is redefining networking for IP storage systems with the industry's first purpose-built storage connectivity portfolio for both data center and disaster recovery applications to help enterprise IT teams manage growth, mitigate risk, and reduce costs. EMC will continue to work to integrate new IP storage technology features to the EMC Connectrix family of network switches and management software.
Cypress Semiconductor (CY 13.33, +0.53, +4.1%): Before Thursday's open, reported Q1 (Mar) loss of $0.45 per share, which includes a $107 mln adjustment for aged and excess inventory acquired through the merger with Spansion. Revenues rose 22.8% year/year to $209.1 mln, which was slightly below analysts' average expectation. CY closed a $5 billion merger with Spansion Inc. on March 12, earlier than anticipated. Says $8.4 million in annualized synergies already realized. Company raised synergy cost savings to $160 mln from $135 mln after closing Spansion merger. Sees Q2 non-GAAP EPS $0.11-0.15 and revenue of $475-500 mln.
FireEye (FEYE 41.30, -1.66, -3.9%): After Thursday's close, reported Q1 (Mar) loss of $0.48 per share, which was ahead of analysts' average expectation. Revenues rose 69.5% year/year to $125.4 mln, also ahead of estimates. For Q2, sees EPS of ($0.50)-($0.47), excluding non-recurring items, and revenues of $140-144 mln. Both guidance ranges are in-line with estimates. For FY15, sees EPS of ($1.85)-($1.75), excluding non-recurring items, and revenues of $615-635 mln.
LinkedIn (LNKD 252.13, -5.02, -2.0%): After Thursday's close, reported Q1 (Mar) earnings of $0.57 per share, a penny ahead of analysts' average expectation. Revenues rose 34.9% year/year to $638 mln, also slightly ahead of estimates. For Q2, sees EPS of ~$0.28 and revenues of $670-675 mln. For FY15, lowers EPS to ~$1.90 from ~$2.95, which may not be comparable consensus expectations; lowers FY15 revenues to ~$2.90 bln from $2.93-2.95 bln. Shares of LNKD were trading 26% lower in after-hours action.
Nokia (NOK 6.58, -0.91, -12.2%): Before Thursday's open, reported Q1 (Mar) earnings of 0.05 per share, in-line with expectations. Revenues rose 20.0% year/year to 3.2 bln vs the 3.01 bln consensus. 15% year-on-year net sales growth driven by growth in four out of our six regions, with non-IFRS operating margin declining to 3.2% from 9.3%. 21% year-on-year growth in Global Services net sales, primarily driven by strong growth in the network implementation business line. 10% year-on-year growth in Mobile Broadband net sales, primarily driven by overall radio technologies, particularly LTE. Company expects net sales for Nokia Networks to increase year-over-year in FY15.
OmniVision Technologies (OVTI 27.910, +1.35, +5.1%): Before Thursday's open, the company announced that it has entered into a definitive agreement to be acquired by a consortium composed of Hua Capital management Co., Ltd., CITIC Capital holdings Limited, and Goldstone Investment Co., Ltd. Under the terms of the agreement, OmniVision stockholders will receive $29.75 per share in cash, or a total of approximately $1.9 billion. the agreement was unanimously approved by OmniVision's Board of Directors.
NXP Semi (NXPI 96.08, +0.66, +0.6%): Before Thursday's open, reported Q1 (Mar) earnings of $1.35 per share, which was ahead of analysts' average expectation. Revenues rose 17.7% year/year to $1.47 bln. For Q2, sees EPS of $1.33-1.43 and revenues of $1.49-1.54 bln.
Twitter (TWTR 38.96, +0.47, +1.3%): After Wednesday's close, Twitter disclosed that in connection with the acquisition of TellApart, it agreed to issue up to an aggregate of ~12.6 mln shares of its common stock as a portion of the consideration for all of the outstanding equity of TellApart IDC reports overall shipments for tablets and 2-in-1 devices fell to 47.1 million in 1Q15, a -5.9% YoY.
In industry news, IDC said Apple still leads the overall market despite five consecutive quarters of negative annual shipment growth. Apple shipped 12.6 million iPads in the first quarter, capturing 26.8% of the market in volume and declining -22.9% when compared to 1Q14. Samsung (19.1% share) maintained its second place in the market despite a -16.5% decline in shipments compared to the same period last year.
Analyst Action:
MasterCard (MA 90.21, -0.04, -0.04%): target raised to $105 from $91 at Susquehanna
Microsoft (MSFT 48.64, -0.42, -0.9%): target raised to $54 from $50 at RBC Capital Markets; Outperform
Salesforce.com (CRM 72.82, -1.83, -2.6%): target raised to $83 from $79 at Stifel; Buy... downgraded to Outperform from Buy at Credit Agricole
Yelp (YELP 39.39, -11.89, -23.8%): target lowered to $48 from $51 at UBS; Neutral... target lowered to $42 from $48 at Axiom Capital; Hold... downgraded to Sector Perform from Outperform at RBC Capital Markets; target to $50 from $82... target lowered to $75 from $90 at Wunderlich; Buy... target lowered to $68 from $78 at Cantor Fitzgerald... downgraded to Neutral from Buy at Bank of America/Merrill Lynch... target lowered to $55 from $80 at Needham; Buy... target lowered to $60 from $76 at Oppenheimer; Outperform... target lowered to $52 from $70 at Sun Trust Robonson Humphrey(Disclosure: Briefing.com has a business relationship with Microsoft)
5:05 pm Teradyne beats by $0.05, beats on revs; guides Q2 EPS above consensus, revs in-line (TER) : Reports Q1 (Mar) earnings of $0.17 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.12; revenues rose 6.5% year/year to $342 mln vs the $331.38 mln consensus.
Orders in the first quarter of 2015 were $490 million of which $397 million were in Semiconductor Test, $66 million in System Test and $27 million in Wireless Test.
Co states: "On the capital return front, we repurchased 2.4 million shares and paid $13 million in dividends in the first quarter. For the full year, we remain on track to repurchase at least $300 million of the $500 million Board authorization."
Guidance: Co issues mixed guidance for Q2, sees EPS of $0.42-$0.48 vs. $0.36 Capital IQ Consensus Estimate; sees Q2 revs of $470-$500 mln vs. $448.23 mln Capital IQ Consensus Estimate.
4:51 pm Aehr Test Systems announces an order receipt for an ABTS burn-in and test system from a Chinese customer (AEHR) : Co announced it has received an order from a new customer in China for immediate shipment of an ABTS burn-in and test system for high temperature operating life testing of devices for reliability characterization. The system is expected to ship within the next month.
4:38 pm QLogic beats by $0.02, misses on revs (QLGC) : Reports Q4 (Mar) earnings of $0.28 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.26; revenues rose 15.0% year/year to $133 mln vs the $135.36 mln consensus.
4:35 pm AXT beats by $0.01, reports revs in-line (AXTI) : Reports Q1 (Mar) loss of $0.03 per share, $0.01 better than the Capital IQ Consensus Estimate of ($0.04); revenues rose 2.6% year/year to $20.1 mln vs the $19.94 mln consensus.
4:31 pm First Solar and Caterpillar (CAT) announce a strategic alliance to develop an integrated photovoltaic solar solution for microgrid applications (FSLR) : Under the agreement, First Solar will design and manufacture a pre-engineered turnkey package for use in remote microgrid applications, such as small communities and mine sites. The package will feature Cat-branded solar panels manufactured by First Solar and will include a balance of system components.
Caterpillar will exclusively sell and support the integrated solution featuring Cat-branded solar panels through its worldwide Cat dealer network, along with its current offerings of generator sets and energy storage. Caterpillar expects to first market the new microgrid solution in the Asia Pacific, Africa, and Latin America regions, with the integrated PV solution, including Cat-branded solar panels, available for customers in that region in the second half of 2015
4:30 pm Brooks Automation beats by $0.02, beats on revs; guides Q3 EPS in-line, revs in-line (BRKS) : Reports Q2 (Mar) earnings of $0.08 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.06; revenues rose 10.6% year/year to $139.3 mln vs the $132.83 mln consensus.
Co issues in-line guidance for Q3, sees EPS of $0.08-0.12, excluding non-recurring items, vs. $0.11 Capital IQ Consensus Estimate; sees Q3 revs of $136-142 mln vs. $138.77 mln Capital IQ Consensus Estimate.
4:29 pm SunPower beats by $0.05, misses on revs; Reiterates not guiding until ot sees more clarity in YieldCo biz (SPWR) : Reports Q1 (Mar) earnings of $0.13 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.08; revenues fell 37.0% year/year to $430.6 mln vs the $443.61 mln consensus.
Non-GAAP Gross Margin 20.5% compared to 22.0% in prior year period. SunPower believes that its underlying business fundamentals remain strong for 2015. However, in light of the company's announcement on Feb. 23, 2015 of its intention to form a joint YieldCo vehicle, 8point3 Energy Partners, with First Solar, and the pending S-1 registration statement, the company will withhold fiscal year 2015 guidance until the company can finalize the estimates regarding the impact of the proposed YieldCo vehicle on the company's expected financial performance. The company will provide an update at a later date.
4:28 pm Cohu beats by $0.10, beats on revs (COHU) : Reports Q1 (Mar) earnings of $0.03 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus Estimate of ($0.07); revenues rose 4.9% year/year to $68.1 mln vs the $62.74 mln consensus.
4:17 pm Skyworks beats by $0.02, beats on revs; guides Q3 above consensus (SWKS) : Reports Q2 (Mar) earnings of $1.15 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $1.13; revenues rose 58.4% year/year to $762 mln vs the $751.82 mln consensus.
Co issues upside guidance for Q3, sees EPS of $1.28, excluding non-recurring items, vs. $1.19 Capital IQ Consensus Estimate; sees Q3 revs of $800 mln vs. $781.02 mln Capital IQ Consensus Estimate.
4:10 pm JDS Uniphase beats by $0.03, misses on revs; guides Q4 EPS below consensus, revs below consensus (JDSU) :
Reports Q3 (Mar) earnings of $0.12 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.09; revenues fell 1.7% year/year to $410.7 mln vs the $418.12 mln consensus.
Co issues downside guidance for Q4, sees EPS of $0.09-0.13 vs. $0.16 Capital IQ Consensus Estimate; sees Q4 revs of $413-433 mln vs. $444.36 mln Capital IQ Consensus Estimate.
"JDSU delivered better-than-expected operating margin and EPS despite muted carrier spending that impacted our Network and Service Enablement businesses. We saw strength in optical components for datacom, achieving a record revenue quarter, and are encouraged by progress in our next generation service enablement solutions. Lumentum and Viavi Solutions are building momentum and we remain on plan to complete the spin in the third calendar quarter this year."
4:15 pm : The major averages ended April on a lower note, but managed to escape with monthly gains. The S&P 500 lost 1.0% and narrowed its April advance to 0.9% while the Nasdaq Composite (-1.6%) underperformed today and ended the month (+0.8%) just behind the benchmark index.
Equity indices faced selling pressure from the get-go with the largest sector-technology (-1.6%)-leading the daylong retreat. The influential group faced broad-based weakness with its top component-Apple (AAPL 125.15, -3.49)-sliding 2.7% after the Wall Street Journal reported that some watch components provided by AAC Technologies (AACAY 53.31, -2.79) may be defective. That being said, other sector members also struggled with Yelp (YELP 39.36, -11.92) cratering in reaction to its quarterly report. Shares of YELP tumbled 23.2% in reaction to disappointing earnings/revenue and cautious revenue guidance for Q2.
The tech sector contributed to the underperformance of the Nasdaq, but the index also faced significant weakness in the biotech group. The iShares Nasdaq Biotechnology ETF (IBB 333.66, -11.15) lost 3.2% and settled just above its 100-day moving average (331.05). The ETF dropped 2.8% in April while the health care sector (-1.5%) underperformed today and lost 1.4% for the month.
Elsewhere among influential groups, the industrial sector (-0.9%) ended ahead of the broader market, but that masked relative weakness among transport stocks. The Dow Jones Transportation Average lost 1.3%, ending the month lower by 1.7%. On the earnings front, freight carrier Con-way (CNW 41.10, -1.40) lost 3.3% after reporting a one-cent beat on light revenue while shipper Kirby (KEX 78.53, -3.37) dropped 4.1% after its cautious guidance overshadowed a one-cent beat.
All ten sectors finished the day in negative territory with energy (-0.4%) succumbing to the pressure during late afternoon action. The sector displayed intraday strength thanks to crude oil's 1.8% advance to $59.63/bbl. For the month, the energy sector gained 6.6% while crude oil spiked 20.8% amid a pullback in the dollar.
Fittingly, the Dollar Index (94.78, -0.43) retreated again today, which represented the seventh consecutive decline. Greenback weakness was a recurring theme in April with the Dollar Index losing 3.5% for the month after posting nine monthly gains. The euro benefitted from the pullback in the dollar with the single currency rising from 1.0731 to 1.1225 in April.
Treasuries retreated in the morning, but reclaimed all of their losses during the day. The 10-yr yield ended at 2.04%, representing the highest level since mid-March.
Today's participation was above average with month-end flows likely responsible for the difference. As a result, more than a billion shares changed hands at the NYSE floor.
Economic data included initial claims, Personal Income/Spending data, Q1 Employment Cost Index, and Chicago PMI:
The initial claims level declined to 262,000 for the week ending April 25 from an upwardly revised 296,000 (from 295,000) while the Briefing.com consensus expected a decline to 290,000
According to the Department of Labor, there were no special factors that impacted the initial claims reading, which hit the lowest level since April 2000
Personal income growth was virtually flat in March after increasing 0.4% in February while the Briefing.com consensus expected an increase of 0.2%
That was the weakest personal income increase since December 2013
Personal spending increased 0.4% in March after increasing an upwardly revised 0.2% (from 0.1%) in February while the consensus expected an increase of 0.5%
The Employment Cost Index increased 0.7% in Q1 2015 after increasing a downwardly revised 0.5% (from 0.6%) in Q4 2014 while the Briefing.com consensus expected an increase of 0.6%
Wages and salaries increased 0.7% in the first quarter, up from a 0.6% increase in Q4 2014
Benefits spending growth held steady at 0.6%
The Chicago PMI increased to 52.3 in April from 46.3 in March while the Briefing.com Consensus expected an increase to 50.0
The increase ended two consecutive monthly contractions
The Production Index increased to 52.7 in April from 49.3 in March
Tomorrow, the ISM Index for April (Briefing.com consensus 51.9), March Construction Spending (expected 0.4%), and the final reading of the April Michigan Sentiment Index (consensus 96.0) will all be released at 10:00 ET.
Nasdaq Composite +4.3% YTD
Russell 2000 +1.3% YTD
S&P 500 +1.3% YTD
Dow Jones Industrial Average +0.1% YTD
DJ30 -195.01 NASDAQ -82.22 SP500 -21.34 NASDAQ Adv/Vol/Dec 679/1.96 bln/2699 NYSE Adv/Vol/Dec 698/1.05 bln/2375
3:35 pm :
Natural gas futures surge higher on storage data, closing floor trading 6% higher at $2.75/MMBtu
WTI crude oil was strong as well, rally above the $59/barrel level, closing +$1.02 at $59.54/barrel'
Precious metals tanked today, but recovered some
June gold lost -2.3% (or -$27.80) to $1182.20/oz, while July silver closed -3.2% to $16.15/oz
July copper rallied +$0.08 to $2.88/lb
Large Cap Gainers
ROK (119.01 +5.95%): Beat Q2 consensus EPS estimates by $0.17, reported revs in-line; reaffirmed FY15 EPS guidance, guided FY15 revs below consensus.
EQIX (260.43 +6.38%): Reported Q1 (Mar) results, revs in-line; guided Q2 revs above consensus; guided FY15 revs in-line; Price tgt raised at Canaccord Genuity.
ABC (115.63 +2.84%): Beat Q2 consensus EPS estimates by $0.26, beat on revs; guided FY15 EPS above consensus; announced new special $1 bln share repurchase program.
Large Cap Losers
BIDU (203.49 -7.08%): Beat Q1 consensus EPS estimates by $0.11, reported revs in-line; guided Q2 revs in-line;
VALE (7.06 -2.75%): Reported Q1 results, Adjusted EBITDA was $1.602 billion; Gross revenues reached $6.358 bln and may not comp to $7.01 bln consensus.
ZMH (110.61 -4.1%): Reported Q1 EPS in-line, missed on revs; lowered FY15 EPS on FX; raised synergy, lowered accretion guidance for Biomet merger.
Mid Cap Gainers
WX (43.31 +9.65%): Announced receipt of proposal to acquire all outstanding shares for $46/ADS share in cash.
PPC (25.07 +4.11%): Reported Q1 (Mar) earnings of $0.82 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.77; revenues rose 1.7% year/year to $2.05 bln vs the $2.08 bln consensus.
COMM (29.61 +6.63%): Beat Q1 consensus EPS estimates by $0.06, reported revs in-line; guided Q2 EPS below consensus, revs below consensus; reaffirmed FY15 EPS guidance.
Mid Cap Losers
YELP (40.02 -21.95%): Missed Q1 consensus EPS estimates by $0.06, missed on revs; guided Q2 revs below consensus; reaffirmed FY15 revs guidance; Downgraded at RBC Capital Mkts, Northland Capital, BofA/Merrill, others.
PCRX (68.99 -15.99%): Reports Q1 (Mar) earnings of $0.27 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $0.21; revenues rose 59.1% year/year to $58.31 mln vs the $61.36 mln consensus; suspended its full year 2015 guidance for EXPAREL.
STM (7.97 -13.19%): Reported Q1 EPS in-line, revs in-line; guided Q2 revs in-line; downgraded at Kepler Cheuvreux.
11:52 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (96) outpacing new highs (60) (:SCANX) : Stocks that traded to 52 week highs: ABC, ALLE, APTS, ASH, ATRC, AVG, AVY, BGCP, BKSC, BLVD, CACC, CBS.A, CHMT, CKSW, CLBH, CLRO, CMT, COLM, CORI, COWN, CSGP, CYOU, DHIL, EQIX, ETFC, EURN, FIX, FPF, GSH, HF, HOLX, IGTE, INTL, IVZ, JBT, JCAP, KEN, LQ, LUX, MELI, MFLX, MLM, MYCC, NYCB, OEC, OSHC, PATK, PBHC, RDWR, SCI, STRZA, TASR, TILE, TPX, TREE, TSLF, VAC, VRX, WIFI, WX
Stocks that traded to 52 week lows: AIXG, AKAO, AP, ARDX, ARR, ASEI, ASND, AXE, BPI, BSI, BV, BVSN, BWEN, CALL, CBLI, CBYL, CDNA, CIDM, CIM, CLI, CUZ, DEST, DRYS, DSS, DV, DXM, EGL, EGP, EMMS, ERIC, FARO, FORR, FPO, FTEK, FUEL, GLRI, GOV, GRC, ICLD, IF, ISH, IVAC, LL, LPTN, LXP, MHGC, MNKD, MOBL, MPEL, MSL, MTGE, MXPT, NATH, NKTR, NLY, NNVC, NOK, NRP, NVDQ, NVTA, OCRX, OFG, OPXA, ORN, PANL, PCRX, PDII, PDM, PERF, PFMT, PKY, PNX, PRTS, PTBI, PTNT, QUIK, RDEN, RWLK, RYN, SJT, SNH, SPDC, SPW, SSYS, STRI, STRM, TCO, TSU, TTF, UPLD, UTIW, VTNR, VVUS, WPCS, WPG, XOMA
ETFs that traded to 52 week highs: TAO
ETFs that traded to 52 week lows: IDX
8:04 am Cypress Semi reports Q1 results, misses on revs (CY) : Reports Q1 (Mar) loss of $0.45 per share, which includes a $107 mln adjustment for aged and excess inventory acquired through the merger with Spansion. This does not compare to the $0.07 CapIQ consensus. Revenues rose 22.8% year/year to $209.1 mln vs the $215.59 mln consensus.
CY closed a $5 billion merger with Spansion Inc. on March 12, earlier than anticipated. Says $8.4 million in annualized synergies already realized.
8:01 am Microvision misses by $0.01 (MVIS) : Reports Q1 (Mar) loss of $0.09 per share, $0.01 worse than the Capital IQ Consensus Estimate of ($0.08). As of March 31, 2015, backlog was $18.7 million and cash and cash equivalents were $16.7 million. The cash balance includes funds received during the quarter of approximately $2.3 million from the exercise of previously issued warrants and $1.0 million from the sale of stock through an At-the-Market (:ATM) equity facility MicroVision established last June, which is now completed.
8:01 am OmniVision confirms it will be acquired by consortium for $29.75 per share, or ~$1.9 bln (shares halted) (OVTI) : The co announced that it has entered into a definitive agreement to be acquired by a consortium composed of Hua Capital Management Co., Ltd., CITIC Capital Holdings Limited, and GoldStone Investment Co., Ltd. Under the terms of the agreement, OmniVision stockholders will receive $29.75 per share in cash, or a total of approximately $1.9 billion. The agreement was unanimously approved by OmniVision's Board of Directors.
7:43 am DSP Group beats by $0.03, beats on revs (DSPG) : Reports Q1 (Mar) earnings of $0.09 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.06; revenues rose 16% year/year to $38.0 mln vs the $37.1 mln consensus.
6:26 am Cabot Micro misses by $0.10, misses on revs (CCMP) : Reports Q2 (Mar) earnings of $0.55 per share, $0.10 worse than the Capital IQ Consensus of $0.65; revenues rose 5.4% year/year to $104.9 mln vs the $106.81 mln consensus.
"Looking ahead, some of our customers and industry reports are calling for softer semiconductor industry conditions during the June quarter compared to the March quarter. Through the first month of our third fiscal quarter we have also seen some softness in demand for our CMP consumables products. However, we are confident that we can continue to successfully manage our business over a range of demand environments, and believe that we are well positioned for the future."
4:55 am UTStarcom wins major contract to support carrier Wi-Fi system in Bangladesh (UTSI) : Co announced that it has been awarded a significant contract to support a major Carrier Wi-Fi system integration for Banglalion Communications, a WiMAX 4G operator in Bangladesh. This partnership further complements UTStarcom's efforts to expand its global footprint and will allow the Company to enter a new growth market.
As part of the contract, UTStarcom will supply the Carrier Wi-Fi solution to Banglalion Communications within Bangladesh. It will also include the Access Controller, Access Point and EMS management system. UTStarcom will also supply and integrate the Carrier Wi-Fi system equipped with a TD-LTE service and this will enable the operator to unify user and billing management
3:14 am Advanced Semi misses by NT$0.02; beats on revs (ASX) : Reports Q1 EPS NT$0.56 vs NT$0.58 Cap IQ consensus; revs increased 18% YoY to NT$64.66 bln vs NT$64.21 bln consensus
OUTLOOK
Based on our current business outlook and exchange rate assumptions, management projects overall performance for the second quarter of 2015 to be as follows:
IC ATM production capacity will be up 2%; blended IC ATM utilization should be flat to up 2%
IC ATM gross margin should stay relatively unchanged from the previous quarter
EMS business should reach a level between the results of the last two quarters
EMS gross margin might be slightly lower than the normalized margin in the previous quarter due to customer supply chain issues
1:42 am NXP Semi beats by $0.04, reports revs in-line; guides Q2 EPS in-line, revs in-line (NXPI) : Reports Q1 (Mar) earnings of $1.35 per share, $0.04 better than the Capital IQ Consensus Estimate of $1.31; revenues rose 17.7% year/year to $1.47 bln vs the $1.48 bln consensus.
Non-GAAP Gross margin 48.5%
Guidance:
Co issues in-line guidance for Q2, sees EPS of $1.33-1.43 vs. $1.41 Capital IQ Consensus Estimate; sees Q2 revs of $1.49-1.54 bln vs. $1.54 bln Capital IQ Consensus Estimate.
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