From Briefing.com: 4:38PM Apple beats by $0.11, beats on revs; guides Q4 EPS below consensus, revs below consensus (AAPL) 166.29 +1.14 : Reports Q3 (Jun) earnings of $1.19 per share, $0.11 better than the First Call consensus of $1.08; revenues rose 38.0% year/year to $7.46 bln vs the $7.37 bln consensus. Co issues downside guidance for Q4, sees EPS of $1.00 vs. $1.24 consensus; sees Q4 revs of $7.8 bln vs. $8.32 bln consensus. Gross margin was 34.8 percent (vs flat guidance from Q2 of 32.9%), down from 36.9 percent in the year-ago quarter. Apple shipped 2,496,000 Macintosh computers during the quarter, representing 41 percent unit growth and 43 percent revenue growth over the year-ago quarter. The Company sold 11,011,000 iPods during the quarter, representing 12 percent unit growth and seven percent revenue growth over the year-ago quarter. Quarterly iPhone units sold were 717,000 (vs over 700K guidance) compared to 270,000 in the year-ago-quarter.
4:38PM QLogic beats by $0.02, beats on revs (QLGC) 16.48 -0.12 : Reports Q1 (Jun) earnings of $0.31 per share, $0.02 better than the First Call consensus of $0.29; revenues rose 20.5% year/year to $168.4 mln vs the $161.9 mln consensus. "Our strong revenue performance was driven by sequential growth of 9% for both our Host Products and Network Products from the fourth quarter of fiscal 2008."
4:36PM Texas Instruments misses by $0.02, misses on revs; guides Q3 EPS below consensus, revs below consensus (TXN) 28.52 -0.30 : Reports Q2 (Jun) earnings of $0.44 per share, $0.02 worse than the First Call consensus of $0.46; revenues fell 2.2% year/year to $3.4 bln vs the $3.39 bln consensus. Co issues downside guidance for Q3, sees EPS of $0.41-0.47 vs. $0.51 consensus; sees Q3 revs of $3.26-3.54 bln vs. $3.56 bln consensus. The co says demand slowed unexpectedly in June primarily because distributors reduced inventory levels and did not replenish them late in the quarter. Additionally, Wireless revenue declined in the quarter, continuing its first-quarter weakness. "We believe this slower demand was due to a mix of reasons, including a weaker economic environment and greater confidence in TI's ability to deliver products within short lead times," Templeton said. "Our orders were up in the quarter and backlog grew, but we are cautious given the demand environment we just experienced. If demand strengthens as quickly as it slowed, we are well-positioned to meet it." (stock is halted)
4:30PM Photronics announces Resignation of CEO, Michael Luttati (PLAB) 6.21 -0.04 : The co announces that Michael Luttati will step down as Chief Executive Officer of the co and as a member of the Board of Directors effective immediately. Chairman of the Photronics Board of Directors, Constantine ("Deno") Macricostas will assume the role of interim CEO. Mr. Luttati will remain as a consultant to the Company for a period of time to help with the transition to new leadership. Photronics' Board of Directors has appointed a search committee and will retain an executive search co to lead the task of identifying a new Chief Executive Officer.
4:10PM Volterra Semi beats by $0.07, beats on revs (VLTR) 15.21 +0.03 : Reports Q2 (Jun) earnings of $0.25 per share, $0.07 better than the First Call consensus of $0.18; revenues rose 55.3% year/year to $28.7 mln vs the $27.5 mln consensus. According to President and CEO Jeff Staszak, "Our second quarter was another strong quarter for Volterra, as reflected in our record revenues and earnings per share results. I'm very pleased with our continuing execution and performance, as we scaled our business to achieve growth in each of our target markets."
4:05PM SanDisk misses by $0.23, misses on revs (SNDK) 18.01 +0.44 : Reports Q2 (Jun) loss of $0.10 per share, excluding non-recurring items, $0.23 worse than the First Call consensus of $0.13; revenues fell 1.3% year/year to $816 mln vs the $906.1 mln consensus. Co is delaying the start of the next phase of production ramp in Fab 4 and now expects it to start no sooner than April 2009. The co is also pushing out its decision to invest in Fab 5 until market conditions improve. These actions are aimed at reducing future capital expenditures and inventory growth in order to maintain a strong balance sheet... Co says, "Our Q2 sales were well below our expectations due to the rapid deterioration in consumer confidence which impacted our sales in U.S. retail and to handset OEMs. Product gross margin was negatively impacted by the lower sales volume and a substantial inventory write-down. Overall demand is expected to improve in the upcoming holiday season; however, industry-wide Flash inventories remain excessive and pricing and margins will therefore remain under pressure until supply and demand come into balance. We are taking significant actions to slow our captive supply growth, which will reduce our capital expenditure commitments, and allow us to better manage our inventory. We are also continuing to improve our cost structure through transitions to 43-nanometer MLC and the industry's first commercialized 3-bits per cell NAND flash. While the industry downturn has been more pronounced and severe than expected, we are optimistic about our long-term renewed growth when the market rebounds."
4:20 pm : The stock market posted a slight loss near the unchanged mark on Monday. A rise in oil prices and a steep drop in shares of two major pharmaceutical companies overshadowed a better-than-expected earnings report from one of the world's largest financial firms.
Bank of America (BAC 28.52, +1.03) reported a 43% drop in earnings per share to $0.72. However, the result easily topped Wall Street's forecast of $0.53 per share, due to a lower-than-expected write-down of $1.2 billion. BofA's CEO plans to recommend that the board leave the quarterly dividend at $0.64 per share (9.0% annual yield at current levels).
The financial sector climbed 2.8% shortly after the opening bell, but settled with a loss of 0.9% following some profit-taking efforts after last week's 11.4% surge.
In corporate news, pharmaceutical companies Merck (MRK 35.39, -2.29) and Schering-Plough (SGP 18.99, -2.45) tumbled 6.1% and 11% respectively, due to continued concerns over the cholesterol drug Vytorin. The companies delayed their earnings reports until after the market close to discuss a report that said Vytorin does not lower the risk of major heart valve problems.
European pharmaceutical company Roche Holdings offered to acquire the remainder of Genentech (DNA 93.69, +11.87) for $43.7 billion, or $89 per share in cash. Roche already owns a 56% stake in Genentech. Shares of DNA are trading higher than the offer price on speculation that Roche will have to raise its bid.
Yahoo! (YHOO 21.68, -0.77) and activist investor Carl Icahn have reached an agreement regarding their pending proxy contest. Under the deal, Icahn will be appointed to the board, and two more seats will be filled from a list of nine candidates recommended by Icahn. In turn, Icahn will withdraw his nominees for vote at the annual meeting.
Three of the ten sectors posted a gain. Energy stocks (+2.9%) led the way as crude prices climbed 2.1% to $131.56. The advance in oil prices came as a tropical storm entered the Gulf of Mexico.
Consumer discretionary (-1.3%), health care (-1.2%), and financials (-0.9%) were the main laggards.
On the economic front, June leading indicators fell 0.1%, which is in-line with expectations. For the most part, the report is a collection of previously announced economic indicators, and as a result it had a limited impact on the stock market. DJ30 -29.23 NASDAQ -3.25 NQ100 -0.2% R2K +0.7% SP400 +0.7% SP500 -0.68 NASDAQ Adv/Vol/Dec 1579/1.84 bln/1238 NYSE Adv/Vol/Dec 2034/1.20 bln/1115
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