From Briefing.com: 4:38 pm Microchip beats by $0.09, beats on revs; guides Q2 EPS above consensus, revs above consensus, co says it's tracking well ahead of our prior FY17 EPS guidance (MCHP) :
Reports Q1 (Jun) earnings of $0.84 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus of $0.75; non-GAAP revenues rose 58.1% year/year to $844 mln vs the $821.3 mln Capital IQ Consensus and above prior guidance of $799.1-841.9 mln.
Co issues upside guidance for Q2, sees EPS of $0.83-0.91, excluding non-recurring items, vs. $0.80 Capital IQ Consensus Estimate; sees Q2 non-GAAP revs of $844-877.8 mln, excluding non-recurring items, vs. $838.4 mln Capital IQ Consensus Estimate.
FY17 Outlook: "We are tracking well ahead of our guidance for non-GAAP [EPS] for fiscal 2017 which we commented on in our May 4, 2016 earnings conference call."
"We achieved strong revenue growth in the microcontroller businesses of both core Microchip and Atmel in the June quarter...All microcontroller business units for Microchip, as well as for Atmel, outperformed our expectations in the June quarter. Atmel's customers felt reassured about Microchip's plans to continue to support Atmel's microcontroller products going forward and launched their new products with confidence."
4:20 pm Rackspace beats by $0.06, reports revs in-line; guides Q3 revs above consensus; guides FY16 revs above consensus (RAX) :
Reports Q2 (Jun) earnings of $0.28 per share, $0.06 better than the Capital IQ Consensus of $0.22; revenues rose 7.0% year/year to $523.6 mln vs the $521.08 mln Capital IQ Consensus.
Co issues upside guidance for Q3, sees Q3 revs of $534-539 mln vs. $530.39 mln Capital IQ Consensus Estimate; sees revs of $510-515 mln ex-FX and ex-divestitures
Co issues upside guidance for FY16, sees FY16 revs of $2.13-2.15 bln vs. $2.11 bln Capital IQ Consensus Estimate; sees revs of $2.06-2.08 bln ex-FX and ex-divestitures.
4:19 pm Rackspace sells its Cloud Sites business unit to Liquid Web; terms not disclosed (RAX) : Liquid Web is a global provider of professional cloud and application hosting services with over $90 million in annual revenue. The transaction is expected to close in the third quarter of 2016.
4:08 pm Vivint Solar beats by $0.71, beats on revs (VSLR) :
Reports Q2 (Jun) earnings of $0.12 per share, $0.71 better than the Capital IQ Consensus of ($0.59); revenues rose 116.6% year/year to $34.94 mln vs the $27.21 mln Capital IQ Consensus.
MW Booked of approximately 74 MWs for the quarter, approximately flat year-over-year.
MW Installed of approximately 61 MWs, down 6% year-over-year.
Total cumulative MWs installed were approximately 575 MWs.
Installations were 8,641 for the quarter, down 7% year-over-year; Cumulative installations were 84,872.
Estimated Nominal Contracted Payments Remaining increased by approximately $191 million during the quarter and was approximately $2.3 billion, up 56% year-over-year.
Estimated Retained Value increased by approximately $103 million during the quarter to approximately $1.1 billion, up 64% year-over-year; Estimated Retained Value per Watt was $1.95
Cost per Watt was $2.94, down from $3.34 in the first quarter of 2016 and down from $3.00 in the second quarter of 2015.
4:10 pm : The stock market began the week on a quiet note as the Nasdaq Composite (-0.2%) settled behind the S&P 500 (-0.1%) and the Dow Jones Industrial Average (-0.1%). The benchmark index meandered in an eight-point trading range as a rally in crude oil helped counter weakness from the heavyweight consumer discretionary (-0.3%) and health care (-0.9%) sectors.
U.S. equities began the day on a modestly higher note, responding to a positive bias in global bourses. Asia-Pacific indices outperformed as participants reacted to Friday's above-consensus reading of the U.S. Employment Situation Report for July. The employment data showed continued improvement to the hiring landscape as nonfarm payrolls (255K; Briefing.com consensus 185K) handily beat estimates for the second consecutive month. Conversely, there was no negative response to China's disappointing Trade Balance Report after the People's Bank of China suggested potential "innovative" stimulus measures.
The major averages pulled back through the opening hour as the heavyweight technology (UNCH), consumer discretionary (-0.3%), and health care (-0.9%) sectors weighed on the broader market. The move to the downside was limited though, as investors eyed a rebound in crude oil. WTI crude rallied 3.0% ($43.07/bbl; +$1.24) amid reports that several members of OPEC are attempting to revitalize a production freeze agreement. The energy component extended its August gain to 3.6%.
The benchmark index carved out a session low in the afternoon (2177.85), but recovered in the final hour to end just below its flat line. Seven sectors ended in the red with heavily-weighted industrials (UNCH) and technology (UNCH) showing the slimmest losses. On the flipside, financials (+0.1%), materials (+0.2%), and energy (+1.2%) outperformed.
The countercyclical health care sector (-0.9%) ended at the bottom of the leaderboard as pharmaceutical names weighed. In the group, Bristol-Myers (BMY 60.30, -2.98) extended its two-session losing streak to 19.9%. The company came under pressure last Friday after announcing that its Opdivo medication failed to meet its primary endpoints. Biotechnology also underperformed after Allergan (AGN 248.31, -5.54) reported mixed quarterly results and updated its outlook to reflect the sale of the Actavis Generics division to Teva Pharmaceuticals (TEVA 53.30, -0.91).
Influential Netflix (NFLX 95.11, -1.92) weighed on the consumer discretionary space (-0.3%) after reports indicated that Alibaba (BABA 85.00, +0.41) is not seeking to invest in the company. Separately, Chinese streaming service Leeco announced that it is looking to add additional U.S. employees. Amazon (AMZN 766.56, +0.58) finished flat after Wal-Mart (WMT 73.34, -0.42) agreed to purchase Amazon competitor Jet.com. Wal-Mart agreed to pay $3 billion in cash for the company. Elsewhere, on the M&A front, Mattress Firm (MFRM 63.75, +34.01) spiked after Steinhoff offered to acquire the company for $64 per share.
The PHLX Semiconductor Index (-0.2%) ended behind the broader technology sector (UNCH) as Qorvo (QRVO 54.30, -0.75) continued to underperform. The name has been under pressure after reporting its quarterly results on August 2. Separately, ON Semiconductor (ON 10.11, +0.12) ended higher by 1.2% after beating analysts' estimates for the quarter and offering in-line guidance for the third quarter.
The U.S. Dollar Index (96.39, +0.19) settled modestly higher as the greenback gained ground against the pound and yen. Sterling lost 0.2% against the buck (1.3042) while the dollar/yen pair ended the day higher by 0.6% (102.44). Elsewhere, the dollar lost 0.1% against the commodity-sensitive Canadian dollar (1.3165).
Treasuries ended a quiet session on a flat note as the yield on the benchmark 10-yr note finished flat at 1.59%.
Participation was below the recent average as fewer than 772 million shares changed hands on the NYSE floor.
There was no economic data of note released today.
Tomorrow's economic data will include the preliminary estimate of second quarter Productivity (Briefing.com consensus 0.5%) and Unit Labor Costs (Briefing.com consensus 1.7%), which will cross the wires at 8:30 ET. Separately, Wholesale Inventories for June (Briefing.com consensus +0.2%) will be released at 10:00 ET.
Russell 2000 +8.3% YTD
S&P 500 +6.7% YTD
Dow Jones +6.3% YTD
Nasdaq Composite +4.1% YTD
DJ30 -14.24 NASDAQ -7.98 SP500 -1.98 NASDAQ Adv/Vol/Dec 1389/1.473 bln/1542 NYSE Adv/Vol/Dec 1696/772.9 mln/1255
3:30 pm :
The dollar index held onto its morning gains, +0.2% around the 96.39 level
Commodities, as measured by the Bloomberg Commodity Index, were up +0.6% around the 84.32 level
Crude oil rallies most of the day, seeing a notable sell-off into the close, still closing well in the green ahead of tomorrow's API data
September crude oil futures rose $1.24 (+3.0%) to $43.07/barrel
Monthly IEA data will be released Aug 11
Weekly EIA data will be released Wednesday at 10:30 am ET
API data will be released tomorrow after the bell
Natural gas declines & closes lower for the third consecutive trading session
September natural gas closed $0.02 lower (-0.7%) at $2.75/MMBtu
In precious metals, gold ends lower while silver trades nearly flat in afternoon pit trading
December gold ended today's session down $3.30 (-0.3%) to $1341.20/oz
September silver closed today's session $0.02 higher (+0.1%) at $19.82/oz
Global markets tilted to the upside overnight as investors responded to Friday's stronger-than-expected reading of the Employment Situation Report for July. The report reduced concerns regarding the U.S. employment picture, indicating that headline nonfarm payrolls (255K) increased faster-than-expected. The report also showed positive strides in average hourly earnings (+0.3%). On the flipside, China's Trade Balance Report for July disappointed with imports (-12.5%) and exports (-4.4%) contracting more than expected.
To begin the week, the broader market began with a slight advance but pared gains to end the session in the red. The S&P 500 notched a new all-time high intraday today at $2185.44, but finished well off that mark. To that end, the Nasdaq Composite was the worst performer today, shedding 7.98 points (-0.15%) to 5213.14. The S&P 500 lost 1.98 points (-0.09%) to 2180.89, and the Dow Jones Industrial Average declined 14.24 points (-0.08%) to 18529.29 despite a strong session from September crude oil futures which rose $1.24 (+3.0%) to $43.07/barrel.
About middle of the pack, the Technology (XLK 47.04, -0.01 -0.02%) sector retreated yet finished just lower following a late-day advance. Component Cognizant Tech (CTSH 58.31, -1.40 -2.34%) was notably weak today following a premarket downgrade at Nomura to a Neutral rating as the firm highlighted their cautious view on the FY16 guidance reduction from last week. Other sectors as measured by the S&P closed Monday XLE +1.33%, XLB +0.21%, XLI +0.14%, XLF +0.12%, XLU -0.04, XLP -0.11%, XLY -0.33%, IYZ -0.39%, XLV -0.85% with the best performer being Energy and Healthcare posting the worst session in general.
In the S&P 500 Information Technology (781.09, -0.15 -0.02%) sector, trading capped off the Monday affair barely in negative territory. Names in the space which turned in slight losses included CSRA -1.52%, TSS -1.52%, QRVO -1.36%, FLIR -1.19%, HPE -1.19%, FISV -1.14%, AVGO -1.04%, SWKS -0.92%, AKAM -0.89, GPN -0.80%, ACN -0.80%.
Other notable news items among sector components:
CSRA Inc. (CSRA 25.84, -0.40 -1.51%) has developed a strategic alliance with Docker, a provider of open container platforms.
According to GeekWire, Apple (AAPL 108.37, +0.89 +0.83%) acquired AI startup Turi. Financial terms of the deal were not disclosed.
Qualcomm (QCOM 61.58, -0.42 -0.68%) entered into a new 3G and 4G Chinese Patent License Agreement with vivo Communication Technology Co., Ltd. Under the terms of the agreement, Qualcomm has granted vivo a royalty-bearing patent license to develop, manufacture and sell 3G WCDMA and CDMA2000 and 4G LTE complete devices for use in China. The royalties payable by vivo are consistent with the terms of the rectification plan submitted by Qualcomm to China's National Development and Reform Commission (NDRC).
According to Alphabet's (GOOG 781.76, -0.46 -0.06%) Google, the company acquired commerce platform provider Orbitera. Financial terms of the deal were not disclosed.
Elsewhere in the tech space:
Rambus (RMBS 13.59, -0.08 -0.59%) named Martin Pilling as interim Chief Financial Officer amid ongoing search for permanent CFO.
Ciena (CIEN 19.98, -0.24 -1.19%) repurchased about $205 million in aggregate principal amount of its outstanding 0.875% Convertible Senior Notes due 2017 in a private transaction.
Payment Data Systems' (PYDS 1.65, -0.05 -2.94%) Co-Founder and CEO Michael Long retired; the company also named Louis Hoch as CEO.
Tesla (TSLA 226.16, -3.87 -1.68%) updated investors regarding the Gigafcatory in a 10-Q filed on Friday after the close. The company stated that their current expectations and the Gigafactory may take longer to bring online than they had previously anticipated.
ScanSource (SCSC 42.28, +0.68 +1.63%) to acquire Intelisys Communications for about $83.6 million in cash, plus earn-out payments. The company also lowered their Q4 net sales expectations to be about $880-885 million vs prior guidance of $900-950 million.
Fairchild Semi (FCS 19.86, +0.19 +0.97%) filed to delay Form 10-Q following discovery of embezzlement by a former non-management employee at its Korean subsidiary. The company stated it does not expect the matter to affect pending acquisition by ON Semiconductor (ON 10.11, +0.12 +1.20%).
LightPath (LPTH 1.91, +0.06 +3.24%) to acquire ISP Optics Corporation for $18 million.
BCE (BCE 62.80, +0.02 +0.03%) to acquire full ownership of the data center operator Q9 Networks in a transaction valued at about $675 million.
In reaction to quarterly results:
Ebix (EBIX 55.05, +0.27 +0.49%) reported better than expected Q2 EPS of $0.70 and better than expected revenues which increased 12% compared to last year to $72.6 million.
ON Semiconductor (ON) reported Q2 net income of $0.13 on revenues which increased 7% year-over-year to $350 million.
Companies scheduled to report quarterly results tonight/tomorrow morning: CSLT CSC CNXR CVG DTSI ELNK IPHI MXL MCHP MIME MODN MTSC NPTN NUAN PFSW RAX RPD RNET ROG SREV SINA TUBE TWLO VSLR WBMD WB/IOTS BITA BR SATS MWW RSTI VRTU VPG ZBRA
Analyst actions:
INAP was upgraded to Buy from Hold at Craig Hallum; CCOI and CBB were downgraded to Mkt Perform from Outperform at Raymond James, SHEN was downgraded to Mkt Perform from Outperform at FBR Capital, CTSH was downgraded to Neutral from Buy at Nomura, TTEC was downgraded to Market Perform from Outperform at Wells Fargo; ORCL, HDP and DATA were initiated with Buy ratings at Rosenblatt, LN was initiated with an Overweight at Morgan Stanley
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