From Briefing.com: 4:41 pm MagnaChip Semi beats by $0.10, beats on revs; guides Q2 revs above two analyst estimate (MX) :
Reports Q1 (Mar) earnings of $0.01 per share, $0.10 better than the two analyst estimate of ($0.09); revenues rose 9.2% year/year to $161.7 mln vs the $160 mln two analyst estimate.
Foundry gross profit margin was 28.5% in the first quarter as compared with 23.8% in 1Q16 and 30.3% in 4Q16. Standard Products Group gross profit margin was 23.1% in the first quarter as compared with 23.6% in 1Q16 and 21.8% in 4Q16.
Co issues upside guidance for Q2, sees Q2 revs of $162-$168 mln vs. $162.35 mln two analyst estimate. Sees gross margin in range of 25-27% as compared to 22% in 2Q16.
4:18 pm Closing Market Summary: S&P 500 Posts First Loss of the Week (:WRAPX) :
The major averages held modest losses throughout Wednesday's session, but a late-afternoon uptick left the S&P 500 (-0.1%) just short of its unchanged mark. The Dow (unch) eked out a small win while the tech-heavy Nasdaq (-0.4%) and the domestically-oriented Russell 2000 (-0.6%) underperformed.
While there were some flaws in Apple's (AAPL 147.06, -0.45) latest earnings report--the number of iPhone units sold was below expectations, iPad unit sales fell below 10 million for the first time in six years, and sales in China were down 14.0% year-over-year--the tech giant largely overcame those concerns to end just a step below the broader market. The company's above-consensus earnings and upcoming iPhone 8 release helped keep losses in check.
With Apple not performing at the top of its game, the top-weighted technology sector (-0.1%) turned to Alphabet (GOOGL 948.45, +11.36) and chipmakers for support. GOOGL finished higher by 1.2% while the PHLX Semiconductor Index added 0.3% on First Solar's (FSLR 33.91, +3.59) better than expected earnings/revenues and upbeat guidance. FSLR shares spiked 11.8%.
Lightly-weighted sectors like real estate (-1.3%), telecom services (-0.6%), and materials (-1.0%) populated the bottom of the day's leaderboard with the weakness in the materials group owed to the commodity market's poor performance; gold (-0.8%), silver (-1.4%), and copper (-4.2%) all settled with solid losses. However, crude oil was able to eke out a win despite the EIA reporting a smaller than expected draw for the week ended April 28 (0.9 million actual vs 2.0 million consensus). The energy sector made the most of the relatively upbeat performance, adding 0.3%.
Media names weighed on the consumer discretionary sector (-0.6%) in today's session after Hulu announced a new live TV service for $40/month. Twenty-First Century Fox (FOX 28.35, -1.50) showed the widest decline, losing 5.0%, while Dow component Walt Disney (DIS 111.62, -2.75) tumbled 2.4%. The remaining laggards--health care and utilities--closed with losses of 0.4% and 0.5%, respectively.
On the flip side, the consumer staples (+0.1%) and financials (+0.6%) spaces outperformed. The consumer staples group received some help from Mondelez International (MDLZ 45.03, +1.29) and Estee Lauder (EL 91.30, +3.82), both of which beat earnings estimates. Meanwhile, the financial sector benefited from Allstate's (ALL 84.93, +3.10) better than expected earnings and revenues. The industrial sector (+0.1%) was the last sector to finish in positive territory.
The FOMC voted unanimously to leave the fed funds target range unchanged at 0.75%-1.00%, as expected, with the accompanying policy statement providing little new information. The market still expects the Fed to raise rates at its June meeting with the CME FedWatch Tool assigning an implied probability of 70.7% to said event. Treasuries settled generally lower with the 2-yr yield (1.29%) and the 10-yr yield (2.31%) adding three basis points apiece.
Market participants received a number of economic reports on Wednesday, including April ADP Employment Change, the April ISM Services Index, and the weekly MBA Mortgage Applications Index:
The ADP National Employment Report showed an increase of 177,000 in April (Briefing.com consensus 170,000) while the March reading was revised lower to 255,000 from 263,000.
The ADP reading precedes Friday's more influential Employment Situation Report for April, which the Briefing.com consensus expects will show the addition of 180,000 nonfarm payrolls. The Employment Situation Report for March indicated that nonfarm payrolls increased by 98,000.
The ISM Services Index for April rose to 57.5 from an unrevised reading of 55.2 in March while the Briefing.com consensus expected an uptick to 55.8.
The key takeaway from the report is that the non-manufacturing side of the economy, which accounts for a much larger slice of GDP than the manufacturing sector does, continues to hum along in an expansion mode, with new order activity driving the acceleration in April.
The weekly MBA Mortgage Applications Index decreased 0.1% to follow last week's 2.7% increase.Tomorrow, investors will receive a slew of economic data, including March Trade Balance (Briefing.com consensus -$44.4 billion), Initial Claims (Briefing.com consensus 246,000), and the preliminary reading of first quarter Productivity (Briefing.com consensus 0.1%) and Unit Labor Costs (Briefing.com consensus 2.6%) at 8:30 ET and March Factory Orders (Briefing.com consensus 0.4%), which will cross the wires a little later at 10:00 ET.
Nasdaq Composite +12.8% YTD
S&P 500 +6.7% YTD
Dow Jones Industrial Average +6.1% YTD
Russell 2000 +2.5% YTD
4:09 pm FormFactor beats by $0.04, beats on revs; guides Q2 EPS above consensus, revs above consensus (FORM) :
Reports Q1 (Mar) earnings of $0.24 per share, $0.04 better than the Capital IQ Consensus of $0.20; revenues rose 140.3% year/year to $128.8 mln vs the $124.07 mln Capital IQ Consensus.
Free cash flow for 1Q17 was $15.5 million.
Co issues upside guidance for Q2, sees EPS of $0.24-$0.30 vs. $0.22 Capital IQ Consensus Estimate; sees Q2 revs of $130-$138 mln vs. $125.47 mln Capital IQ Consensus Estimate. Sees Non-GAAP gross margin of 42-45%.
Commentary: "We continue to see strong momentum across all our product lines, as our large customers continue their technology node transitions and new design introductions. We are in a stronger position than we were one year ago, and are benefitting from significant scale, diversified market drivers, and a broad portfolio of leading test and measurement products. Our focus remains on execution to drive continued revenue growth and EPS expansion."
4:07 pm TTM Tech beats by $0.09, beats on revs; guides Q2 EPS in-line, revs in-line (TTMI) :
Reports Q1 (Mar) earnings of $0.37 per share, $0.09 better than the Capital IQ Consensus of $0.28; revenues rose 7.2% year/year to $625.2 mln vs the $615 mln Capital IQ Consensus.
"TTM delivered strong organic year on year growth in the first quarter of 7 percent, near the high end of our guidance, and profitability which exceeded our forecast," said Tom Edman, CEO of TTM. "On a year over year basis, most end markets grew, with the fastest growth coming from the cellular, computing and aerospace and defense end markets. This growth, along with strong operational execution, resulted in non-GAAP EPS above the high end of our guidance. These results represent the highest revenue and EBITDA for a first quarter in the history of the company."
Co issues in-line guidance for Q2, sees EPS of $0.31-$0.37 vs. $0.33 Capital IQ Consensus Estimate; sees Q2 revs of $605-$645 mln vs. $624.08 mln Capital IQ Consensus Estimate.
4:07 pm Cirrus Logic beats by $0.15, beats on revs; guides JunQ revs in-line (CRUS) :
Reports Q4 (Mar) earnings of $0.85 per share, excluding non-recurring items, $0.15 better than the Capital IQ Consensus of $0.70; revenues rose 41.3% year/year to $327.9 mln vs the $320.9 mln Capital IQ Consensus and vs prior guidance of $300-340 mln.
Co issues in-line guidance for Q1 (Jun), sees Q1 revs of $300-340 mln vs. $320.2 mln Capital IQ Consensus Estimate."We are extremely pleased with Cirrus Logic's FY17 financial performance as we delivered outstanding revenue, operating profit and earnings per share growth"The major average posted their first losses of the week, led lower by the Nasdaq Composite which lost about 22.82 points (-0.37%) to 6072.55. The S&P 500 shed 3.18 points (-0.13%) to 2387.99, while the Dow Jones Industrial Average declined about 12.37 points (-0.06%) to 20937.52. The brunt of the losses were a result of some worse than expected results out of some market bellwethers. Namely Apple (AAPL 147.06, -0.45 -0.31%).
That being said, while there were some flaws in Apple's (AAPL) latest earnings report--the number of iPhone units sold was below expectations, iPad unit sales fell below 10 million for the first time in six years, and sales in China were down 14.0% year-over-year--the tech giant largely overcame those concerns to end just a step below the broader market. The company's above-consensus earnings and upcoming iPhone 8 release helped keep losses in check.
Econ data today was headed by the FOMC vote; the financial body voted unanimously to leave the fed funds target range unchanged at 0.75%-1.00%, as expected, with the accompanying policy statement providing little new information. The market still expects the Fed to raise rates at its June meeting with the CME FedWatch Tool assigning an implied probability of 70.7% to said event. Additionally, the ADP National Employment Report showed an increase of 177,000 in April while the March reading was revised lower to 255,000 from 263,000. The ISM Services Index for April rose to 57.5 from an unrevised reading of 55.2 in March, and the weekly MBA Mortgage Applications Index decreased 0.1% to follow last week's 2.7% increase.
The Technology (XLK 54.81, -0.10 -0.18%) space also felt the modest hurt on Wednesday as the sector spent the entirety of the session in the red. Despite this action, component First Solar (FSLR 33.91, +3.59 +11.84%) managed to stay afloat given its better than expected Q1 report and strong guidance. Financials led the remaining 10 S&P sectors higher XLF +0.80% followed by XLE +0.28%, XLP +0.09%, XLI +0.08%, XLU -0.35%, XLV -0.49%, XLY -0.59%, XLB -0.98%, XLRE -1.22%, IYZ -3.47%.
In the S&P 500 Information Technology (937.79, -1.25 -0.13%) space, trading also held below flat lines today, but ended modestly off session lows. Component Akamai Tech (AKAM 52.80, -9.70 -15.52%) was the worst performer today following its mixed Q1 report and worse than expected Q2 guidance. Other names in the space which underperformed included ADP -6.25%, WU -4.32%, PAYX -2.28%, JNPR -1.91%, XRX -1.14%, YHOO -1.12%, RHT -1.08%, GLW -0.90%, CSRA -0.89%.
Other notable news items among sector components:
In addition to reporting quarterly results, Apple's (AAPL) Board approved a 10.5% increase to the company's quarterly dividend and increased its share repurchase authorization to $210 billion from the $175 billion level announced a year ago.
MakeMyTrip (MMYT 37.00, -3.20 -7.96%) disclosed a $330 million equity financing at $36 per ordinary share.
Elevate Credit (ELVT 7.65, +0.01 +0.13%) increased its debt facility with Victory Park Capital from $150 million to $250 million.
Straight Path Comms (STRP 155.20, +29.38 +23.35%) determined that a revised offer from a multi-national telecommunications company for $135.96 per share constitutes a 'superior proposal'.
DHI Group (DHX 3.50, +0.05 +1.45%) disclosed plans to divest a number of its online professional communities.
NetScout Systems (NTCT 36.85, -0.45 -1.21%) announced a multi-year agreement with Vodafone Group (VOD 26.54, +0.04 +0.15%) to serve as Vodafone's passive probing provider in Europe.
In reaction to quarterly results:
Apple (AAPL) reported better than expected Q2 EPS of $2.10 on in-line revenues of $52.9 billion. For Q3, the company sees revenues slightly below market expectations at $43.5-45.5 billion.
Automatic Data (ADP 97.51, -6.50 -6.25%) reported better than expected Q3 EPS of $1.31 on in-line revenues of 43.41 billion.
Sprint (S 7.77, -1.30 -14.33%) reported a worse than expected Q4 loss per share of $0.07 on better than expected revenues of $8.54 billion.
Harris (HRS 109.25, -0.29 -0.26%) reported better than expected Q3 EPS and revenues of $1.38 and $1.49 billion, respectively. For FY17, the company raised EPS guidance to $5.50-5.55 from $5.40-5.60.
Akamai Tech (AKAM) reported better than expected Q1 EPS of $0.69 on in-line revenues of $609 million. The company also guided Q2 EPS and revenues below market expectations at $0.59-0.61 and $597-609 million, respectively.
First Solar (FSLR) reported better than expected Q1 EPS and revenues of $0.25 and $892 million, respectively. For FY17, the company sees EPS and revenues ahead of market expectations at $0.25-0.75 (from $0.00-0.50) and $2.85-2.95 billion (from $2.80-2.90 billion), respectively.
FireEye (FEYE 13.78, +1.57 +12.86%) reported a better than expected Q1 loss per share of $0.09 on better than expected revenues of $173.7 million for the period. For Q2, FEYE sees EPS and revenues ahead of market expectations at ($0.14)-($0.10) and $173-179 million, respectively. For FY17, FEYE sees EPS and revenues ahead of market expectations at ($0.36)-($0.26) and $724-736 million, respectively.
Twilio (TWLO 25.01, -8.93 -26.31%) reported a better than expected Q1 loss per share of $0.04 on better than expected revenues of $87.4 million. For Q2, the company sees EPS and revenues below market expectations at ($0.11)-($0.10) and $85.5-87.5 million, respectively. For FY17, the company lowered their EPS and revenue guidance to ($0.30)-($0.27) from ($0.19)-($0.15) and $356-362 million from $364-372 million, respectively.
Groupon (GRPN 3.47, -0.53 -13.25%) reported better than expected Q1 EPS of $0.01 on worse than expected revenues of $673.63 million.
Frontier Communications (FTR 1.61, -0.32 -16.58%) reported a worse than expected Q1 loss per share of $0.11 on in-line revenues which rose 73.9% compared to last year to $2.36 billion.
Inphi (IPHI 36.16, -4.38 -10.80%) reported in-line Q1 EPS and revenues of $0.44 and $93.58 million, respectively. For Q2, IPHI sees worse than expected EPS and revenues of $0.27-0.39 and $80.0-88.0 million, respectively.
Companies scheduled to report quarterly results tonight/tomorrow morning: HIVE, AIRG, AOSL, ANSS, ARRS, BKFS, CACI, CTL, CRUS, CMP, PMTS, CSGS, EXTR, FB, FIT, FIVN, FORM, GLUU, INOV, NSIT, ITRI, KEYW, MX, MANT, MULE, NXPI, QTWO, QRVO, RUBI, SQ, DATA, TIVO, TTMI, XPER/ACIW, ACTA, ALSK, ARW, BCOR, CEVA, CCOI, COMM, CNSL, DBD, EMKR, EPAM, IT, GPN, GSAT, GOGO, GTT, KVHI, LDOS, LQDT, MMS, MITL, MBLY, NTCT, NICE, ORBC, PRFT, PERI, RDCM, WILN, WIN
Analyst actions:
FEYE was upgraded to Outperform from Market Perform at William Blair,
FSLR was upgraded to Hold from Sell at Axiom Capital,
FTR was upgraded to Neutral from Sell at Citigroup;
AKAM was downgraded at Wells Fargo, SunTrust and DA Davidson,
TWLO was downgraded to Sector Weight from Overweight at Pacific Crest,
BLKB was downgraded to Neutral from Buy at B. Riley & Co.,
FTR was downgraded to Market Perform from Outperform at Cowen and to Neutral from Buy at UBS,
FIS was downgraded to Neutral from Buy at Compass Point,
SHOP was downgraded to Equal Weight from Overweight at First Analysis Sec
7:32 am Vishay beats by $0.05, beats on revs; guides Q2 revs in-line (VSH) :
Reports Q1 (Mar) earnings of $0.28 per share, $0.05 better than the Capital IQ Consensus of $0.23; revenues rose 6.2% year/year to $606 mln vs the $598.72 mln Capital IQ Consensus.
Co issues in-line guidance for Q2, sees Q2 revs of $610-650 mln vs. $616.33 mln Capital IQ Consensus Estimate.
"In the first quarter Vishay again was able to offset the negative impact of general inflation and price decline on its contributive margin by cost reduction and innovation...For the second quarter, we guide for revenues of $610 to $650 million and gross margins of 26% to 28% at constant exchange rates."
6:56 am Kulicke & Soffa beats by $0.06, beats on revs; guides Q3 revs above consensus (KLIC) :
Reports Q2 (Mar) earnings of $0.40 per share, $0.06 better than the Capital IQ Consensus of $0.34; revenues rose 27.6% year/year to $199.6 mln vs the $190.89 mln Capital IQ Consensus. Ball bonder equipment net revenue increased by 46.1% over the December quarter. Wedge bonder equipment net revenue increased by 5.5% over the December quarter.
Co issues upside guidance for Q3, sees Q3 revs of $235-245 mln vs. $211.92 mln Capital IQ Consensus Estimate.
