From Briefing.com: 4:07PM Silicon Labs raises Q2 EPS and revs guidance (SLAB) 35.84 +0.02 : Co sees Q2 EPS of $0.40-0.42, up from $0.37-0.39 vs $0.38 First Call consensus; revs $102-104 mln, up from $98-101 mln vs $100.00 mln First Call consensus. Co cites stronger than expected demand, particularly in the voice and embedded modem businesses. The guidance revision was provided as an update concurrent with the announcement of the acquisition of Integration Associates, also made today.
4:04PM Silicon Labs to acquire Integration Associates; expected to be slightly dilutive to 2008 earnings, accretive in 2009 (SLAB) 35.84 +0.02 : Co announces it has signed a definitive agreement to acquire Integration Associates for net $80 mln. The company has built quarterly revenue to a run rate of approx $8 mln. The acquisition is expected to be slightly dilutive to SLAB in 2008, offset by better than previously anticipated performance in SLABs' existing business. The acquisition is expected to be accretive in 2009.
4:04PM Jabil Circuit beats by $0.06, reports revs in-line; guides Q4 EPS in-line, guides Q4 revs (JBL) 14.29 +0.05 : Reports Q3 (May) earnings of $0.26 per share, excluding non-recurring items, $0.06 better than the First Call consensus of $0.20; revenues rose 2.9% year/year to $3.09 bln vs the $3.08 bln consensus. Co issues guidance for Q4, sees EPS of $0.29-0.33, excluding non-recurring items, vs. $0.29 consensus; sees Q4 revs of $3.2-3.3 bln vs. $3.19 bln consensus.
9:01AM Flextronics announces that its Computing segment has been chosen by HPQ to design and manufacture a high-volume consumer notebook computer (FLEX) 9.81 : (HPQ)
4:20 pm : The stock market posted a modest loss Tuesday, after a volatile trading session. A rebound in financial stocks helped partially offset some disappointment over weak consumer sentiment, falling home prices and an earnings warning from UPS. Small-cap stocks were out of favor, with the Russell 2000 Index falling 1.7% compared to the S&P 500's decline of 0.3%.
The financial sector settled the session with a 1.5% gain after being down as much as 2.2%. According to reports, Wachovia (WB 17.88, +0.96) said it hired Goldman Sachs to "perform analytics on our loans to evaluate various alternatives." Meanwhile, shares of UBS (UBS 22.07, +1.47) rose 7% on speculation that HSBC Holdings (HBC 79.06, +0.01) would make an offer to acquire UBS.
Crude oil prices (+0.2% at $136.96) are up 98% compared to one-year ago, which is taking a toll on energy dependent companies. UPS (62.27, -3.99) lowered its second quarter earnings guidance, citing the increase in fuel costs and the sluggish U.S. economy. UAL Corp (UAUA 6.02, -0.07), parent company of United Airlines, is laying off 950, or 15%, of its pilots and reducing its fleet by 100 aircraft. Dow Chemical (DOW 36.61, -1.01) is again raising prices to combat rising energy costs, with a price increase of as much as 25% in July.
On the economic front, consumer confidence in June slipped 13% to its lowest level since 1992, after consumers were bombarded with reports of spiking food and energy costs and rising unemployment. However, these surveys do not always correlate with actual consumer spending, so Briefing.com puts more emphasis on the consumer spending report -- set for release on Friday.
The housing industry remains sluggish, although the rate of home price declines is slowing. The S&P/Case Shiller Index showed that home prices in 20 major metro areas fell 1.6% compared to last month -- the smallest drop since September. However, home prices are now down 15.2% year-over-year -- the largest drop in the composite's eight year history.
The Fed kicked off its two-day FOMC meeting today. Investors expect that the fed funds rate will remain unchanged, although the wording of tomorrow's directive is likely to move the market. Expect the Fed's policy statement around 2:15 PM ET Wednesday.DJ30 -34.93 NASDAQ -17.46 NQ100 -0.5% R2K -1.7% SP400 -1.3% SP500 -3.71 NASDAQ Adv/Vol/Dec 779/2.18 bln/2089 NYSE Adv/Vol/Dec 970/1.34 bln/2172
09:27 am Micron: . Cowen initiated MU with a Neutral saying even though MU has underperformed the SOX over the past year, they do not expect fundamentals to support a sustained upward move near term. At the same time the firm says, the memory market is not structurally broken, and there are some potentially positive catalysts on the horizon -- it is equally tough to short the stock, particularly in light of the current depressed valuation.
09:27 am Qimonda: . Cowen & Co initiates QI with a Underperform saying QI stock has underperformed the semiconductor universe over the past year, but they still see the stock as a short following an uptick that seems to be based on desperate hopes for successful execution of strategic alternatives. The firm says the analysis suggests that QI's weak position in a highly commoditized market leaves it few options, and even a strategic buyer may not be willing to pay a premium to the current valuation.
09:26 am SanDisk: . Cowen & Co initiates SNDK with a Underperform saying SNDK has helped create an entirely new consumer market, but its products have become commoditized, and profitability and returns diminished. The firm says the stock is well off recent highs, but near-term NAND oversupply will likely cap profitability, while longer term they expect continued margin compression to drive further downside relative to the market.
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