From Briefing.com: 5:05 pm Teradyne beats by $0.06, beats on revs; guides Q2 EPS and rev above consensus (TER) : Reports Q1 (Mar) adj. earnings of $0.44 per share, $0.06 better than the Capital IQ Consensus of $0.38; revenues rose 6.0% year/year to $457 mln vs the $440.96 mln Capital IQ Consensus. Orders in the first quarter of 2017 were $595 million of which $476 million were in Semiconductor Test, $46 million in System Test, $45 million in Industrial Automation, and $27 million in Wireless Test.
Co issues upside guidance for Q2, sees adj. EPS of $0.81-0.90 vs. $0.60 Capital IQ Consensus Estimate; sees Q2 revs of $660-700 mln vs. $555.19 mln Capital IQ Consensus Estimate.
"Semiconductor Test year over year quarterly orders were up 56% on broad strength in mobile, automotive, industrial analog, and Flash memory end market demand. Universal Robots' (:UR) year over year quarterly sales were up 117% powered by an expanding range of customers embracing the power of UR's collaborative robots to reduce production costs and improve product quality. "With our large backlog and strong first quarter orders, our Q2 revenue is expected to increase 28% year on year at the mid-point of our Q2 guidance. While we expect the familiar seasonality in the second half, we're on track for another year of revenue and operating profit growth."
4:38 pm F5 Networks missed by $0.02, reported revs in-line; guided Q3 EPS and revenue below consensus (FFIV) :
Reports Q2 (Mar) earnings of $1.95 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus of $1.97; revenues rose 7.1% year/year to $518.2 mln vs the $523.12 mln Capital IQ Consensus, driven by solid execution in the Americas and strong sales of security solutions. Partially offsetting these positive trends was continued soft demand in Europe.
Several new products scheduled to begin shipping in the current quarter are designed to help enable customers to deploy their applications across a variety of cloud environments. These solutions include Application Connector 1.0 for connecting public and private cloud application infrastructures, support for BIG-IP in the Google Public Cloud, and Container Connector and Application Services Proxy for microservices environments.
Co issues downside guidance for Q3, sees EPS of $2.01-2.04, excluding non-recurring items, vs. $2.09 Capital IQ Consensus Estimate; sees Q3 revs of $520-530 mln vs. $537.84 mln Capital IQ Consensus Estimate.
Stock down 7% after hours.
4:33 pm MKS Instruments beats by $0.19, beats on revs; guides Q2 EPS above consensus, revs above consensus (MKSI) :
Reports Q1 (Mar) earnings of $1.27 per share, $0.19 better than the Capital IQ Consensus of $1.08; revenues rose 138.0% year/year to $437.2 mln vs the $413.26 mln Capital IQ Consensus.
Non-GAAP gross margin of 47.0% compared to 45.3% in year ago period.
Co issues upside guidance for Q2, sees EPS of $1.236-$1.50 vs. $1.10 Capital IQ Consensus Estimate; sees Q2 revs of $440-$480 mln vs. $415.06 mln Capital IQ Consensus Estimate.
Commentary: "Our strategic objective to drive sustainable and profitable growth has allowed MKS to not only leverage technology inflection points within the semiconductor market, but also to further drive growth in a number of adjacent markets. In the first quarter, semiconductor revenue and sales to other advanced markets, on a pro-forma basis, increased 54% and 10% respectively from a year ago."
4:30 pm Closing Market Summary: Stocks Finish Wednesday Flat (:WRAPX) :
Investors played a wait-and-see strategy ahead of the 'unveiling' of President Trump's tax reform plan on Tuesday afternoon, but then engaged in a little profit taking after the announcement provided little new information. The major averages settled just a tick below their unchanged marks with the S&P 500 (-0.1%) closing between the Dow (-0.1%) and the Nasdaq (unch). Meanwhile, the domestically-oriented Russell 2000 (+0.6%) outperformed.
Treasury Secretary Steven Mnuchin and NEC Director Gary Cohn presented the core principles of President Trump's tax plan on Tuesday afternoon. The general framework, which revolves around making business rates more competitive, bringing back overseas profits to create jobs, simplifying the tax system, and lowering tax rates, is certainly encouraging for the stock market.
However, the plan still lacks many details, most notable of which is how it gets paid for. Mr. Mnuchin believes the tax cuts will pay for themselves with increased economic growth, the reduction in allowable tax deductions, and the closing of tax loopholes. Still, assuming that logic checks out, the tax cuts would increase the deficit, which will be a tough pill for some conservative lawmakers to swallow.
Retailers received a nice bump today, evidenced by the 1.0% increase in the SPDR S&P 500 Retail ETF (XRT 43.53, +0.42), after Mr. Trump's tax plan made no mention of a border-adjustment tax. The retailers' outperformance helped the consumer discretionary sector (+0.5%) close ahead of the broader market.
The health care sector (+0.5%) also put together a positive performance. Reports that the House Freedom Caucus supports the GOP's new health care bill didn't really phase the sector with investors choosing to focus their attention on the earnings front. Thermo Fisher (TMO 168.01, +9.20) helped fuel the health care space's solid performance, adding 5.8% on better than expected earnings/revenues and upbeat guidance.
Elsewhere on the earnings front, three Dow components--Procter & Gamble (PG 87.74, -2.26), United Technologies (UTX 118.20, +1.33), and Boeing (BA 181.71, -1.80)--reported their quarterly results on Tuesday morning. United Technologies finished higher by 1.1% after beating top and bottom line estimates. However, Boeing and Procter & Gamble slipped 1.0% and 2.5%, respectively, after coming up short on revenues; BA missed top-line estimates while PG issued slightly disappointing revenue guidance. PG's negative performance doomed the consumer staples sector (-0.8%) to the bottom of the day's leaderboard with only the real estate group (-0.9%) posting a larger loss.
In the end, only four sectors--consumer discretionary (+0.5%), health care (+0.5%), telecom services (+1.2%), and financials (unch)--finished in positive territory. However, outside of the real estate and consumer discretionary groups, the laggards finished with losses of no more than 0.4%.
U.S. Treasuries settled slightly higher across the board, leaving the benchmark 10-yr yield two basis points lower at 2.31%.
Wednesday's economic data was limited to the weekly MBA Mortgage Applications Index:
The weekly MBA Mortgage Applications Index increased 2.7% to follow last week's 1.8% decrease.Tomorrow, investors will receive a slew of economic reports, including March Durable Orders (Briefing.com consensus 1.2%), Initial Claims (Briefing.com consensus 242,000), and Advance International Trade in Goods (Briefing.com consensus -$65.0 billion) at 8:30 ET and March Pending Home Sales at 10:00 ET.
Nasdaq Composite +11.9% YTD
S&P 500 +6.6% YTD
Dow Jones Industrial Average +6.1% YTD
Russell 2000 +4.6% YTD
4:26 pm Xilinx beats by $0.03, reports revs in-line; guides Q1in-line; raises dividend 6% to $0.35/share (XLNX) :
Reports Q4 (Mar) earnings of $0.57 per share, $0.03 better than the Capital IQ Consensus of $0.54; revenues rose 6.7% year/year to $609.5 mln vs the $605.25 mln Capital IQ Consensus.
Co issues in-line guidance for Q1, sees EPS of $0.53-0.66 vs. $0.59 Capital IQ Consensus Estimate; sees Q1 revs of $600-630 mln vs. $613.25 mln Capital IQ Consensus Estimate.
Xilinx recently increased its quarterly dividend by $0.02 per share to $0.35 per share, effective in the June quarter of fiscal 2018, marking its 12th consecutive year of dividend increases.
4:20 pm AXT beats by $0.01, beats on revs (AXTI) :
Reports Q1 (Mar) earnings of $0.02 per share, $0.01 better than the Capital IQ Consensus of $0.01; revenues rose 10.2% year/year to $20.6 mln vs the $18.45 mln Capital IQ Consensus.
"Q1 was a busy and productive quarter," said Morris Young, chief executive officer. "We are seeing encouraging progress in the adoption of several emerging technologies and are continuing to invest in our product development, production capacity, and customer engagement and support capabilities in order to position ourselves for coming business opportunities."
4:19 pm Ultra Clean Holdings beats by $0.05, beats on revs; guides Q2 EPS above consensus, revs above consensus (UCTT) :
Reports Q1 (Mar) earnings of $0.47 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $0.42; revenues rose 82.4% year/year to $204.6 mln vs the $192.61 mln Capital IQ Consensus.
Co issues upside guidance for Q2, sees EPS of $0.49-0.55, excluding non-recurring items, vs. $0.34 Capital IQ Consensus Estimate; sees Q2 revs of $210-220 mln vs. $186.85 mln Capital IQ Consensus Estimate.
"During this period of extraordinary semiconductor equipment demand, we have consistently responded and quickly ramped our operations, allowing us to meet our customers' needs and be a vital contributor to their success. We continue to increase UCT's presence on our customers' product platforms and are expanding our opportunities for future growth."
4:18 pm American Superconductor reports prelim 4Q16 results; expects revs of $15-16 mln vs $24.6 mln consensus and guides for 1Q17 revs of $8-9 mln vs $21.5 mln consensus --shares halted-- (AMSC) :
For 4Q16, AMSC expects its revenues will be in the range of $15-16 million, compared to its previous Q4 revenue guidance of $22-26 million.
The lower than expected revenue in the fourth quarter was driven primarily by fewer than anticipated electrical control system ("ECS") shipments to Inox Wind Ltd. ("Inox"), due to what is believed by Inox to be a temporary demand dislocation caused by the reaction in certain states in India to a recent national wind energy auction that resulted in a record-low power purchase tariff.
As a result of the revenue shortfall, AMSC's net loss and non-GAAP net loss for the fourth quarter of fiscal 2016 are both expected to be higher than its previous guidance.
For the first quarter ending June 30, 2017, AMSC currently expects that its revenues will be in the range of $8 million to $9 million, taking into account anticipated seasonally lower ECS shipments to Inox as well as the temporary demand dislocation previously discussed.
4:14 pm Mellanox Tech misses by $0.20, misses on revs; guides Q2 revs below consensus (MLNX) :
Reports Q1 (Mar) earnings of $0.29 per share, $0.20 worse than the Capital IQ Consensus of $0.49; revenues fell 4.1% year/year to $188.65 mln vs the $204.7 mln Capital IQ Consensus.
"Our first quarter InfiniBand revenues were down year-over-year, impacted by delays in the general availability of next generation x86 CPUs, seasonal trends in high-performance computing, and technology transitions occurring across several end users and OEM customers. We believe InfiniBand has maintained share in HPC, and expect revenues will see sequential growth in the coming quarters driven by current backlog and additional pipeline opportunities," said Eyal Waldman, president and CEO of Mellanox Technologies. "Our first quarter Ethernet revenues grew across all product families sequentially, driven by the adoption of our 25/50/100 gigabit solutions. We expect 2017 to be a growth year for Mellanox."
Co issues downside guidance for Q2, sees Q2 revs of $205-215 mln vs. $222.38 mln Capital IQ Consensus Estimate.
4:12 pm Cavium Networks beats by $0.02, beats on revs (CAVM) :
Reports Q1 (Mar) earnings of $0.58 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.56; revenues rose 125.3% year/year to $229.58 mln vs the $227.22 mln Capital IQ Consensus.
Non-GAAP operating margin came in at 22.0% vs 21.6% in Q4 (Dec).
Note: Co usually guides on the call, it's at 5pm ET today.For Q2, co also sees non-GAAP gross margins of 70.5 percent to 71.5 percentAt the moment, MLNX is indicated about -14.7% in after hours action on light volume
4:05 pm NETGEAR beats by $0.03, beats on revs; guides Q2 revs in-line; authorizes 3 mln share repurchase program (NTGR) :
Reports Q1 (Mar) earnings of $0.64 per share, $0.03 better than the Capital IQ Consensus of $0.61; revenues rose 4.3% year/year to $323.7 mln vs the $309.48 mln Capital IQ Consensus.
Share Repurchase Program: The Company also announced that its Board of Directors has authorized a program to repurchase up to 3,000,000 shares of the Company's common stock, or approximately 9.1% of the outstanding shares.
Co issues in-line guidance for Q2, sees Q2 revs of $315-330 mln vs. $320.97 mln Capital IQ Consensus Estimate.
"Looking forward to the second quarter of 2017, we expect net revenue to be in the range of $315 million to $330 million. GAAP operating margin is expected to be in the range of 5.3% to 6.3% and non-GAAP operating margin is expected to be in the range of 8.0% to 9.0%. Our GAAP tax rate is expected to be approximately 37.0% and our non-GAAP tax rate is expected to be 34.5% for the second quarter of 2017."
4:04 pm Monolithic Power beats by $0.01, reports revs in-line; guides Q2 revs above consensus (MPWR) :
Reports Q1 (Mar) earnings of $0.58 per share, $0.01 better than the Capital IQ Consensus of $0.57; revenues rose 18.8% year/year to $100.4 mln vs the $100.02 mln Capital IQ Consensus.
Co issues upside guidance for Q2, sees Q2 revs of $109-113 mln vs. $109.01 mln Capital IQ Consensus Estimate.
Sees non-GAAP gross margin between 55.0% and 56.0%, which excludes an estimated impact of stock-based compensation expenses of 0.4% and amortization of acquisition-related intangible assets of 0.5%.
Investors played a wait-and-see strategy ahead of the 'unveiling' of President Trump's tax reform plan on Tuesday afternoon, but then engaged in a little profit taking after the announcement provided little new information. When the dust settled, the major averages were lower with the Dow Jones Industrial Average shedding 21.03 points (-0.10%) to 20975.09. The S&P 500 lost 1.16 points (-0.05%) to 2387.45, while the Nasdaq Composite ended down less than a point (-0.00%) to 6025.23.
Treasury Secretary Steven Mnuchin and NEC Director Gary Cohn presented the core principles of President Trump's tax plan on Tuesday afternoon. The general framework, which revolves around making business rates more competitive, bringing back overseas profits to create jobs, simplifying the tax system, and lowering tax rates, is certainly encouraging for the stock market.
However, the plan still lacks many details, most notable of which is how the GOP plans to pay for it. Mr. Mnuchin believes the tax cuts will pay for themselves with increased economic growth, the reduction in allowable tax deductions, and the closing of tax loopholes. Still, assuming that logic checks out, the tax cuts would definitely balloon the national debt in the short term, which will be a tough pill for some conservative lawmakers to swallow.
For its part, the Technology (XLK 54.02, -0.06 -0.11%) space finished lower with the broader market. Component Seagate Tech (STX 42.01, -8.50 -16.83%) was the worst performer today behind its mixed Q3 report. The remaining S&P sectors closed with the Real Estate space XLRE -0.84% performing the worst, followed by XLP -0.81%, XLE -0.33%, XLU -0.31%, XLF -0.08%, XLB -0.02%, XLI +0.02%, XLY +0.47%, IYZ +0.52%, XLV +0.55%.
In the S&P 500 Information Technology (919.71, -2.40 -0.26%) space, trading ended lower but flat enough to not cause any serious damage. Component Texas Instruments (TXN 81.11, -1.25 -1.52%) was another name that was weaker today despite the company's better than anticipated Q1 report as the Q2 guidance came in a little light. Other names in the space which closed lower included INTU -2.75%, WDC -2.61%, FLIR -2.03%, ADI -1.73%, XLNX -1.15%, SWKS -0.99%, KLAC -0.89%, NTAP -0.85%, MCHP -0.76%, MU -0.74%.
Other notable news items among sector components:
ManTech (MANT 35.88, +0.35 +0.99%) received a $229 million EAGLE II Task Order to provide business intelligence support to the U.S. Department of Homeland Security, Customs and Border Protection, Office of Information and Technology.
Cree (CREE 22.07, -2.75 -11.08%) formed a joint venture with San'an Optoelectronics to produce and deliver to market high-performing, mid-power lighting class LED packaged products in an exclusive arrangement to serve the expanding markets of North and South America, Europe and Japan, and serve China.
Vantiv (VNTV 63.63, -2.11 -3.21%) agreed to acquire Paymetric, a portfolio company of Francisco Partners; financial details not disclosed.
Amtech Systems (ASYS 6.11, +0.61 +11.09%) received a follow-on order for the second phase of a multi-phase 1GW project, in addition to the order for the first phase announced in January 2017.
Rosetta Stone (RST 11.39, +0.26 +2.34%) agreed to sell Japanese subsidiary.
In reaction to quarterly results:
AT&T (T 40.44, +0.50 +1.25%) reported in-line Q1 EPS of $0.74 on worse than expected revenues of $39.4 billion. The company also reaffirmed FY17 adjusted EPS guidance of mid-single digits.
Texas Instruments (TXN) reported better than expected Q1 EPS and revenues of $0.89 and $3.4 billion, respectively. For Q2, the company guided EPS of $0.89-1.01 including a $0.03 tax benefit, on revenues of $3.4-3.7 billion.
BCE Inc (BCE 45.95, +0.49 +1.08%) reported better than expected Q1 EPS of CAD0.87 on in-line revenues of CAD5.38 billion. For FY17, the company sees EPS below market expectations at CAD3.30-3.40 on revenue growth of 4-6% compared to prior expectations of growth of 1-2%.
TE Connectivity (TEL 76.64, +1.04 +1.38%) reported better than expected Q2 EPS and revenues of $1.19 and $3.23 billion, respectively. For Q3, the company sees EPS and revenues ahead of market expectations at $1.14-1.18 and $3.2-3.3 billion, respectively. For FY17, TEL sees better than expected EPS and revenues of $4.58-4.66 and $12.6-12.8 billion, respectively.
Seagate Tech (STX) reported better than expected Q3 EPS of $1.10 on worse than expected revenues of $2.67 billion.
T
witter (TWTR 15.82, +1.16 +7.91%) reported better than expected Q1 EPS and revenues of $0.11 and $548 million, respectively. Average monthly active users were 328 million in Q1, an increase of 6% year-over-year and compared to 319 million in the previous quarter.
Companies scheduled to report quarterly results tonight/tomorrow morning: AXTI, CSLT, CAVM, CMPR, CTXS, DMRC, DLB, ECHO, EQIX, FFIV, FISV, FORR, KS, KN, MLNX, MKSI, MPWR, NTGR, NTRI, OSIS, PYPL, ROG, NOW, SHOR, TER, TYL, UCTT, XLNX/AUO, AVT, CCMP, CHKP, CLFD, CTS, DSPG, DST, ENTG, GRUB, I, IDCC, IRDM, NOK, SFE, SILC, STM, TDC, TZOO, WEX, WNS, YNDX
Analyst actions:
ASYS was upgraded to Buy from Hold at The Benchmark Company,
RDWR was upgraded to Buy from Neutral at Dougherty,
APTI was upgraded to Overweight from Neutral at JP Morgan;
SAP was downgraded to Sell from Hold at Stifel,
SHOP was downgraded to Sector Perform from Outperform at RBC Capital Mkts,
CREE was downgraded to Neutral from Overweight at JP Morgan,
LN was downgraded to Sell from Underperform at CLSA;
SNAP was initiated with a Mkt Perform at Raymond James,
RNG was initiated with a Buy at Dougherty,
FSNN was initiated with a Buy at B. Riley & Co.
