From Briefing.com: 4:04 pm Plexus beats by $0.05, beats on revs; guides Q4 EPS in-line, revs in-line (PLXS) : Reports Q3 (Jun) earnings of $0.82 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $0.77; revenues fell 0.3% year/year to $667.61 mln vs the $655.43 mln Capital IQ Consensus.
ROIC for the fiscal third quarter of 2016 was 13.0%.
Co issues in-line guidance for Q4, sees EPS of $0.76-0.84, excluding non-recurring items, vs. $0.80
Capital IQ Consensus Estimate; sees Q4 revs of $655-685 mln vs. $676.86 mln Capital IQ Consensus Estimate.
4:10 pm Mellanox Tech beats by $0.05, reports revs in-line; guides Q3 revs in-line (MLNX) :
Reports Q2 (Jun) earnings of $0.87 per share, $0.05 better than the Capital IQ Consensus of $0.82; revenues rose 31.7% year/year to $214.8 mln vs the $212.76 mln Capital IQ Consensus
Non-GAAP gross margins of 71.4 percent, unchanged from the first quarter of 2016
Co issues in-line guidance for Q3, sees Q3 revs of $221-227 mln vs. $226.67 mln Capital IQ Consensus Estimate.
4:11 pm Intel beats by $0.06, reports revs in-line; guides Q3 revs ~in-line; reaffirms FY16 guidance (INTC) :
Reports Q2 (Jun) earnings of $0.59 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $0.53; revenues rose 2.6% year/year to $13.53 bln vs the $13.55 bln Capital IQ Consensus; non-GAAP gross margin 61.8% vs. ~61% guidance at midpoint.
Client Computing Group revenue of $7.3 bln, down 3% sequentially and down 3% year-over-year; volume -15%, ASP +13% Y/Y
Data Center Group revenue of $4.0 bln, up 1% sequentially and up 5% year-overyear; volume +5% ASP -1% Y/Y.
Internet of Things Group revenue of $572 mln, down 12% sequentially and up 2% year-over-year
Non-Volatile Memory Solutions Group revenue of $554 mln, down 1% sequentially and down 20% year-over-year
Intel Security Group revenue of $537 mln, flat sequentially and up 10% year-over-year
Programmable Solutions Group revenue of $465 mln, up 30% sequentially. Note the comparable period did not include $99 mln of revenue as a result of acquisition-related adjustments.
Co issues guidance for Q3, sees Q3 revs of $14.4-15.4 bln vs. $14.69 bln Capital IQ Consensus; gross margin ~62% (+/- couple %).
Co reaffirms guidance for FY16, sees mid single digit rev growth (consensus +3.6%) vs. $57.33 bln Capital IQ Consensus; gross margin 62% (+/- couple %).
4:11 pm F5 Networks beats by $0.02, reports revs in-line; guides Q4 EPS in-line, revs in-line (FFIV) :
Reports Q3 (Jun) earnings of $1.81 per share, $0.02 better than the Capital IQ Consensus of $1.79; revenues rose 2.7% year/year to $496.52 mln vs the $495.7 mln Capital IQ Consensus.
Co issues in-line guidance for Q4, sees EPS of $1.92-1.95 vs. $1.92 Capital IQ Consensus Estimate; sees Q4 revs of $515-525 vs. $517.47 mln Capital IQ Consensus Estimate.
"The Americas and Asia Pacific both contributed strong sequential revenue growth, while EMEA revenues were down from the prior quarter against the backdrop of the UK's referendum to withdraw from the
European Union. Reflecting steadily increasing deployment of our products in public and private cloud environments, software sales continued to grow as a percentage of overall product revenue. Our expanding footprint in public and private clouds also contributed to sequential growth in sales of our security products during the quarter."
4:14 pm Qualcomm beats by $0.19, beats on revs; guides Q4 EPS in-line, revs in-line (QCOM) :
Reports Q3 (Jun) earnings of $1.16 per share, $0.19 better than the Capital IQ Consensus of $0.97; revenues rose 2.9% year/year to $6 bln vs the $5.58 bln Capital IQ Consensus.
MSM chip shipments were 201 mln vs 225 mln in prior year; total reported device sales $62.6 bln vs. $60.4 bln in prior year.
Co issues in-line guidance for Q4, sees EPS of $1.05-1.15 vs. $1.08 Capital IQ Consensus Estimate; sees Q4 revs of $5.4-6.2 bln vs. $5.73 bln Capital IQ Consensus Estimate.
Sees MSM chip shipments of 195-215 mln and total reported device sales of $57.0-65.0 bln.
"We delivered strong results this quarter, with EPS well ahead of our guidance based on meaningful progress with licensees in China," said Steve Mollenkopf, CEO of Qualcomm Incorporated
"Our chipset business is also benefiting from a strong new product ramp across tiers, particularly with fast growing OEMs in China. We are executing well on our strategic priorities, and we remain confident that our focused investments in 5G and other advanced technologies will create a strong foundation for long-term earnings growth."
4:21 pm eBay beats by $0.01, beats on revs; guides Q3 EPS in-line, revs above consensus; raises FY16 guidance; announces $2.5 bln buyback (EBAY) :
Reports Q2 (Jun) earnings of $0.43 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.42; revenues rose 5.7% year/year to $2.23 bln vs the $2.17 bln Capital IQ Consensus.
"Q2 was another good quarter where we delivered strong results and had acceleration in growth"
The Marketplace platforms delivered $19.8 billion of GMV and $1.8 billion of revenue in the second quarter.
Marketplace revenue was up 3% on an FX-Neutral basis and 1% on an as-reported basis, driven by accelerating GMV growth of 5% on an FX-Neutral basis and 3% on an as-reported basis as well as growth in Marketing Services & Other revenue.
StubHub growth accelerated in the quarter, with GMV of $1.1 billion, up 35%, and revenue of $225 million, up 40%, aided by strength across multiple genres and the continued benefit from ongoing product innovation.
The Classifieds platforms delivered another quarter of strong performance with revenue of $207 million, up 15%, primarily driven by the Automotive and Real Estate verticals across several key geographies, including Germany and Canada.
Co issues guidance for Q3, sees EPS of $0.42-0.44, excluding non-recurring items, vs. $0.44 Capital IQ Consensus Estimate; sees Q3 revs of $2.16-2.19 bln vs. $2.14 bln Capital IQ Consensus Estimate.
Co issues guidance for FY16, raises EPS to $1.85-1.90 from $1.82-1.87, excluding non-recurring items, vs. $1.86 Capital IQ Consensus; raises FY16 revs to $8.85-8.95 bln from $8.6-8.8 bln vs. $8.81 bln Capital IQ Consensus Estimate.
In July 2016, eBay's board of directors authorized an additional $2.5 billion stock repurchase program, with no expiration from the date of authorization.4:15 pm : The stock market ended the midweek affair on a higher note as above-consensus quarterly results from Microsoft (MSFT 55.91, +2.82) facilitated a bid in the heavyweight technology sector (+1.4%). Investors maintained a decidedly risk-on approach, bidding cyclical sectors and the beleaguered biotechnology sub-group. The S&P 500 (+0.4%) and the Dow Jones Industrial Average (+0.2%) each carved out new all-time closing highs while the Nasdaq Composite (+1.1%) notched a new 2016 closing high.
Equities began the day on a modestly higher note as investors responded to a positive bias in global bourses. Germany's DAX (+1.6%) paced the advance as participants examined better-than-expected corporate earnings reports. German software company SAP (SAP 83.71, +4.39) outperformed after topping analysts' estimates for the quarter and reaffirming its outlook. The company also stated that it has yet to see any impact from last month's surprise Brexit vote. On that note, the European Central Bank is scheduled to meet Thursday, marking its first meeting since the referendum. The central bank is widely expected to leave its policy stance unchanged.
The major averages ratcheted higher after the first hour of trade, corresponding to a reversal in crude oil. WTI crude erased an early loss as investors weighed the latest inventory data from the Department of Energy. The EIA reported that crude oil inventories fell by 2.34 million barrels (estimate: -2.10 million barrels) while gasoline inventories rose by 0.91 million barrels (estimate: -0.83 million barrels). The benchmark index finished off its session high with six sectors in positive territory. In front of the pack, technology (+1.4%), health care (+0.9%), and consumer discretionary (+0.4%) led while energy (-0.2%), utilities (-0.4%), and consumer staples (-0.5%) rounded out the board.
The technology sector (+1.4%) paced today's advance as Dow component Microsoft (MSFT 55.91, +2.82) rallied 5.3%. The stock finished on top of the price-weighted index after impressing investors with its cloud service business. The high-beta chipmakers also outperformed as Marvell (MRVL 11.23, +1.38) surged 14.1% after beating bottom-line estimates. Separately, Qualcomm (QCOM 55.82, +0.68) and Intel (INTC 35.69, +0.54) gained a respective 1.2% and 1.5% ahead of this evening's quarterly reports.
In the health care space (+0.9%), biotechnology displayed relative strength, evidenced by the 2.4% gain in the iShares Nasdaq Biotechnology ETF (IBB 276.54, +6.55). In the group, Mylan Labs (MYL 47.20, +2.27) jumped 5.1% after announcing the launch of its Crestor generic in the United States. In the broader sector, Intuitive Surgical (ISRG 703.05, +31.15) rallied 4.6% after reporting above-consensus quarterly results and receiving several price target increases.
Media names underperformed in the consumer discretionary space (+0.4%) as Dow component Disney (DIS 98.22, -1.25) weighed. The stock slipped 1.3% after it was downgraded to "Hold" from "Buy" at Stifel. Elsewhere, 21st Century Fox (FOXA 27.00, -0.75) fell 2.7% amid uncertainty regarding Fox News CEO Roger Ailes. Reports indicated that 21st Century Fox is reviewing allegations of sexual assault after a lawsuit was filed against Mr. Ailes.
The U.S. Dollar Index (97.11, +0.05) finished modestly higher as it gained against the euro, commodity currencies, and the yen. The euro/dollar pair ended lower by 0.1% (1.1014) while the dollar ticked higher by 0.3% against the commodity-sensitive Canadian dollar (1.3062). Separately, the dollar jumped 0.8% against the safe-haven yen (106.93).
The Treasury complex settled off its session low, but the yield on the 10-yr note rose two basis points to 1.58%.
Today's trading volume was below the recent average as fewer than xxx million shares changed hands on the NYSE floor.
Today's economic data was limited to the weekly MBA Mortgage Index:
The weekly MBA Mortgage Index showed a seasonally adjusted decrease of 1.3% in mortgage applications after rising 7.2% in the prior week.
Tomorrow's economic data will include weekly initial claims (Briefing.com consensus 265k) and the July Philadelphia Fed Survey (Briefing.com consensus 5.0), which will both be released at 8:30 ET. Separately, the FHFA Housing Price Index for May will cross the wires at 9:00 ET. Finally, the day's data will be capped off with Existing Home Sales (Briefing.com consensus 5.50 million) for June and June Leading Indicators (Briefing.com consensus 0.3%), which will both be reported at 10:00 ET.
Dow Jones +6.7% YTD
Russell 2000 +6.5% YTD
S&P 500 +6.3% YTD
Nasdaq +1.7% YTD
DJ30 +36.02 NASDAQ +53.56 SP500 +9.24 NASDAQ Adv/Vol/Dec 1972/1.69 bln/900 NYSE Adv/Vol/Dec 2026/732.3 mln/957
3:30 pm :
The dollar index is trading flat, around the 96.12 level
Commodities, as measured by the Bloomberg Commodity Index, are down -0.7% at the 85.16 level
Crude oil surges to session highs after the release of petroleum inventory data
September crude oil futures rose $1.06 (+2.4%) to $45.73/barrel
Crude oil futures have changed their front months to September from August, as indicated by the active amount of volume in the contracts
Crude oil inventories had a draw of -2.342 mln (consensus called for a draw between -1.3 mln and -1.7 mln barrels)
Gasoline inventories had a build of 0.911 mln
Distillate inventories had a draw of 0.214 mln
Weekly rig count data will be released Friday at 1 pm ET
Natural gas ends near session lows ahead of tomorrow's inventory number
August natural gas closed $0.07 lower (-2.6%) at $2.66/MMBtu
In precious metals, gold extends yesterday's losses as the dollar trades flat
August gold ended today's session down $13.20 (-1.0%) to $1319.30/oz
Silver sees an afternoon of consolidation near its morning lows as the dollar index trades flat
September silver closed today's session $0.40 lower (-2.0%) at $19.61/oz
Base metal copper ends pit trading unchanged
September copper closed flat at $2.26/lb
Index futures ticked higher alongside European bourses overnight as investors weighed a collection of better than expected quarterly reports and looked ahead to tomorrow's European Central Bank policy meeting. Software name SAP (SAP 83.71, +4.39 +5.53%) added to the positive bias after beating top- and bottom-line estimates for the quarter. Additionally, the EIA reported that crude oil inventories declined by 2.34 million barrels, compared to the estimated 2.10 million barrel draw. As a result, September crude oil futures finished the day up $1.06 (+2.4%) to $45.73/barrel.
Market data today was limited to the weekly MBA Mortgage Index which showed a seasonally adjusted decrease of 1.3% in mortgage applications after rising 7.2% in the prior week.
The broader market closed Wednesday with the S&P and Dow notching new all-time highs. To that end, the advanced today was led by the Nasdaq Composite, which did not make a new all-time high today, yet still advanced 53.56 points (+1.06%) to 5089.93. The S&P 500 added 9.24 points (+0.43%) to 2173.02, and the Dow Jones Industrial Average was higher by 36.02 (+0.19%) to 18595.03.
Through half of the week, the Technology (XLK 45.80, +0.55 +1.22%) sector closed near highs as component Verizon (VZ 55.62, -0.08 -0.14%) was among the few under-performers today following a premarket downgrade at Oppenheimer to a Perform rating. Other sectors as measured by the S&P closed the session XLV +0.91%, XLY +0.42%, XLI +0.19%, XLF +0.17%, XLB +0.04%, XLE -0.14%, IYZ -0.26%, XLP -0.36%, XLU -0.58% as Tech led all sectors higher and Utilities were the worse performer.
In the S&P 500 Information Technology (756.94, +10.34 +1.38%) sector, trading closed near highs with action decidedly to the upside all day as component Microsoft (MSFT 55.91, +2.82 +5.31%) out-performed the broader market on the back of a better than expected Q4 top and bottom line. Other notable movers in the sector today included TDC +3.93%, TEL +3.83%, MU +2.80%, XRX +2.51%, CSCO +2.37%, YHOO +1.91%, LRCX +1.91%, EBAY +1.85%, ACN +1.83%.
Other notable news items among sector components:
According to a company announcement, Facebook (FB 121.92, +1.31 +1.09%) Messenger surpassed 1 billion monthly active users.
Telecom Italia (TI 7.54, -0.02 -0.26%) and Hewlett Packard Enterprise (HPE 20.06, +0.27 +1.36%) were awarded the Consip tender for a EUR 500 million contract with Italy's Public Administration.
NovoCure (NVCR 11.89, +0.32 +2.77%) provided notice of non-renewal to Harris (HRS 86.03, +0.71 +0.83%) of their Strategic Supplier Agreement. The agreement will terminate on July 21, 2017.
RSA, The Security Division of EMC (EMC 28.17, +0.06 +0.21%), has announced the results of research that demonstrates organizations in Asia Pacific & Japan (APJ) investing in detection and response technologies are better poised to defend against today's advanced threats, in comparison to those primarily utilizing perimeter-based solutions. The results of the second annual RSA Cybersecurity Poverty Index found that 74% of survey respondents in the APJ region face a significant risk of cyber incidents -- closely aligned to the global average of 75%.
Cognizant (CTSH 58.72, +1.05 +1.82%) announced that Kern Health Systems (KHS) has modernized and transformed its technology infrastructure and operations using Cognizant's deep healthcare and technology consulting expertise, coupled with its market-leading TriZetto software.
Elsewhere in the tech space:
Orange (ORAN 15.67, -0.05 -0.32%) completed its acquisition of Log'in Internation. Financial terms of the deal were not disclosed.
Verizon (VZ) announced the U.S. General Services Administration has awarded contract extensions under the agency's Networx program.
Valencell announced a non-exclusive patent license agreement with Samsung (SSNLF). Under this patent license agreement, Valencell has licensed hearable patents owned by Valencell to Samsung for use in its hearable devices.
JD.com (JD 22.66, +0.24 +1.07%) announced partnerships with several of Japan's leading home and kitchenware brands to tap into fast-growing demand from Chinese consumers for premium Japanese-made homeware and home appliances. Japanese brands including Tiger, Pearl Life and Nishikawa Sangyo are working with JD.com to sell their products directly to Chinese consumers.
Omnicell (OMCL 36.32, +0.82 +2.31%) announces that Henry Mayo Newhall Hospital has selected the company's medication automation solutions to streamline provider workflows and enhance patient care at its facility in Valencia, Calif.
In reaction to quarterly results:
Microsoft (MSFT) reported better than expected Q4 EPS of $0.69 and better than expected revenues which rose 2.1% versus last year to $22.64 billion. MSFT also issued guidance for Q1 revs including -- Productivity and Business Processes revenues of $6.4-6.6 billion; Intelligent Cloud segment revenues of $6.1-6.3 billion; Personal Computing revenues of $8.7-9 billion; Summing these gives total revenue guidance of $21.2-21.9 billion.
Marvell (MRVL 11.23, +1.38 +14.06%) reported better than expected Q4 EPS of $0.11 on revenues which fell 28.2% versus last year to $616 million and missed expectations.
SAP AG (SAP) reported better than expected Q2 GAAP EPS of EUR 0.68 on revenues which increased 5% year-over-year to EUR 5.24 billion.
Manhattan Assoc (MANH 61.31, -1.44 -2.29%) reported better than expected Q2 EPS of $0.49 on in-line revenues which rose 11.3% versus last year to $154.9 million. The company also issued guidance for FY16 EPS of $1.78-1.81 vs prior guidance of $1.73-1.76. MANH also reaffirmed prior FY16 revenue guidance of $615-620 million.
Tech companies scheduled to report quarterly results tonight/tomorrow morning: BKFS, EBAY, FFIV, INTC, MLNX, PLXS, PTC, QCOM/ADS, BHE, DST, FCS, SYNT, UTEK
Analyst actions:
WDAY, YELP, SPLK were downgraded to Neutral from Buy at Citigroup,
ERIC was downgraded to Mkt Underperform from Mkt Perform at Charter Equity,
VZ was downgraded to Perform from Outperform at Oppenheimer,
AMTD was downgraded to Hold from Buy at Deutsche Bank;
TTGT was initiated with a Buy at Sidoti
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