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Thursday, July 19, 2012 9:53:41 PM
From Briefing.com: 4:15 pm : Stocks finished with modest gains despite this morning's disappointing economic data and slew of earnings reports that saw bottom line beats accompanied by top line misses. All of today's economic data fell short of expectations with initial and continuing claims, existing home sales, the Philadelphia Fed, and leading indicators all missing their marks. Technology shares were strong as the Nasdaq paced today's advance with a 0.8% gain. Meanwhile, the S&P 500 tacked on 0.3% to finish at a two-month high.
International Business Machines (IBM 195.34, +7.09) was a notable winner, rallying 3.8% and regaining its 200-day moving average as the stock was able to shake off a top line miss.
YUM! Brands (YUM 65.86, +0.31) was another example of the low second quarter expectations as erased early selling pressure and pushed back into positive territory. This despite a $0.03 miss on the bottom line. The company did outpace revenue expectations which appears to be enough to offset cost concerns at this point.
Morgan Stanley (MS 13.25, -0.74) was a notable underperformer after the firm missed on both the top and bottom lines.
Technology names eBay (EBAY 43.95, +3.49), Qualcomm (QCOM 58.44, +2.39), F5 Networks (FFIV 102.75, +4.16), Mellanox Technologies (MLNX 93.90, +27.52) and Skyworks Solutions (SWKS 29.17, +2.53) are ended higher after reporting earnings following yesterday's closing bell.
New Oriental Education & Technology (EDU 11.20, +1.70) jumped 17.9% after the company responded to accusations from research firm Muddy Waters. The research firm suggested a significant number of the firm’s 664 owned and operated schools and learning centers were instead operated by franchisees and that the company represented these operations as their own. A response from the company suggested, “The Muddy Waters report is wrong....New Oriental has never included these cooperation facilities, which never exceeded 21 facilities in total, in the counts of its own schools and learning centers, nor has New Oriental included student enrollments from these cooperation facilities as its own student enrollments.”
Shares of Walgreens (WAG 34.62, +3.65) and Express Scripts (ESRX 58.76, +1.07) rallied after the two companies announced a pharmacy network agreement. Terms of the contract were not disclosed; however, the deal will allow Walgreens to participate in the broadest Express Scripts retail network available to new and existing clients. Today’s gains had shares of Express Scripts testing all-time highs near the $60 level.
Homebuilders Toll Brothers (TOL 29.42, -0.19) and Lennar Corp. (LEN 30.32, -0.06) fell 0.6% and 0.2% respectively after this morning's disappointing existing home sales data.
Treasuries finished near session lows as most maturities finished just below their respective flat lines. The complex was unable to garner any meaningful strength despite today’s lackluster economic data as the 10-yr yield ticked up to 1.515%.
There is no data set for release tomorrow.DJ30 +34.66 NASDAQ +23.30 SP500 +3.73 NASDAQ Adv/Vol/Dec 1093/1.66 bln/1463 NYSE Adv/Vol/Dec 1563/756.6 mln/1463
3:25 pm : Crude oil steadily climbed higher during today’s pit session as the dollar weakened. It came off its session low of $90.67 and peaked at $92.97 in afternoon action. Although it pulled back slightly into the close, the energy component booked a solid gain of 3.2% at $92.81 per barrel. Natural gas touched a session high of $3.03 per MMBtu following better-than-expected inventory data that showed a build of 28 bcf when a build of 30 bcf was anticipated. It then spent the majority of pit trade chopping around just above the unchanged line before settling up 1.0% at $3.00 per MMBtu.
Precious metals also saw a boost from the weaker dollar and disappointing U.S. data. Both gold and silver spent their entire sessions in the black, touching respective highs of $1591.50 and $27.58 per ounce. However, a sell-off to session lows moments before the close left gold to settle with a gain of 0.6% at $1580.10 while silver booked a 0.5%advance, closing at $27.21 per ounce.DJ30 +37.84 NASDAQ +25.07 SP500 +3.60 NASDAQ Adv/Vol/Dec 1139/1.37 bln/1341 NYSE Adv/Vol/Dec 1537/525.2 mln/1481
5:15PM Monolithic Power wins in patent dispute and obtains injunction order against Fitipower (MPWR) 19.50 +0.75 : Co announced that on June 14, 2012, the Intellectual Property Court (IP Court) in Taiwan issued a judgment finding Fitipower Integrated Technology (Fitipower) infringes MPS Patent No. I299935. The IP Court also granted an injunctive relief ordering Fitipower to destroy and to stop making, selling, importing, use and offer to sell infringing products and datasheets including TA2154, FR9758, FR9706 and FP6340. In the ruling, the IP Court awarded MPS monetary damages in the amount of $1.8 mln New Taiwan Dollars against Fitipower. MPS Patent No. I299935 enables efficient low-voltage, low-current power conversion such as DC-DC step-down converter applications. In 2010, MPS filed two patent infringement lawsuits against Fitipower with the IP Court in Taiwan.
4:22PM Advanced Micro misses by $0.01, reports revs in-line; guides Q3 revs below consensus (AMD) 4.86 -0.03 : Reports Q2 (Jun) earnings of $0.06 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.07; revenues fell 10.2% year/year to $1.41 bln vs the $1.41 bln consensus; non-GAAP GM flat QoQ at 46%. Co issues downside guidance for Q3, sees Q3 revs of -4 to +2% QoQ to ~$1.35-1.42 bln vs. $1.5 bln Capital IQ Consensus Estimate. "Overall weakness in the global economy, softer consumer spending and lower channel demand for our desktop processors in China and Europe made the closing weeks of the quarter challenging. We are taking definitive steps to improve our performance and correct the issues within our control as we expect headwinds will continue in the third quarter as the industry sets a new baseline. We remain optimistic about our core businesses as well as future opportunities with our competitively differentiated next-generation Accelerated Processor Units (APUs). Our recently launched Trinity APU continues to gain traction with customers."
4:10PM Microsoft beats by $0.11 (MSFT) 30.67 +0.22 : Reports Q4 (Jun) earnings of $0.73 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus Estimate of $0.62; GAAP revenues rose 4.0% year/year to $18.06 bln; non-GAAP rev +7% to $18.6 bln, consensus is $18.21 bln consensus. The Server & Tools business revenue grew 13% for the fourth quarter and 12% for the full year. The Microsoft Business Division revenue grew 7% for the fourth quarter and 7% for the full year reflecting continued momentum in Office 2010 sales. The Windows & Windows Live Division revenue declined 13% for the fourth quarter and 3% for the full year. Adjusting for the impact of the Windows Upgrade Offer, Windows Division non-GAAP revenue declined 1% for the fourth quarter and 1% for the full year. Windows 7 adoption continued with more than 50% of worldwide enterprise desktops now running Windows 7. The next version of Windows will release to manufacturing this August and will become generally available October 26, 2012. The Online Services Division revenue grew 8% for the fourth quarter and 10% for the full year reflecting growth in our search business. Bing organic U.S. search market share was 15.6% for the month of June 2012, up 120 points from the prior year period. The Entertainment and Devices Division revenue grew 20% for the fourth quarter and 8% for the full year primarily reflecting the addition of Skype. "Over the coming year, we'll release the next versions of Windows, Office, Windows Server, Windows Phone, and many other products and services that will drive our business forward and provide unprecedented opportunity to our customers and partners."
4:08PM SanDisk beats by $0.02, beats on revs (SNDK) : Reports Q2 (Jun) earnings of $0.21 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.19; revenues fell 24.9% year/year to $1.03 bln vs the $1.02 bln consensus.
4:07PM Rambus misses by $0.09, misses on revs (RMBS) 5.21 +0.00 : Reports Q2 (Jun) loss of $0.29 per share, $0.09 worse than the Capital IQ Consensus Estimate of ($0.20); revenues fell 15.1% year/year to $56.2 mln vs the $62.95 mln consensus.
4:06PM Freescale Semi beats by $0.04, beats on revs; guides Q3 revs below consensus (FSL) 10.21 +0.68 : Reports Q2 (Jun) earnings of $0.07 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.03; revenues fell 15.9% year/year to $1.03 bln vs the $1 bln consensus. Co issues downside guidance for Q3, sees Q3 revs of $955-1005 vs. $1.06 bln Capital IQ Consensus Estimate, Q3 gross margins to decrease approximately 75 basis points on a sequential basis.
4:06PM Google beats by $0.03, beats on revs (GOOG) 593.06 +12.30 : Reports Q2 (Jun) earnings of $10.12 per share, $0.03 better than the Capital IQ Consensus Estimate of $10.09; revenues rose 39.0% year/year to $9.61 bln vs the $8.41 bln consensus.
GOOG Q2 Costs per click +1% q/q; -16% y/y; Q1 results were -6% q/q, -12% y/y. GOOG Q2 Paid Clicks +1% q/q, +42% y/y; Q1 results +7% q/q, +39% y/y.
Traffic acquisition costs, the portion of revenues shared with Google's partners, increased to $2.60 billion in the second quarter of 2012, compared to $2.11 billion in the second quarter of 2011. TAC as a percentage of advertising revenues was 25% in the second quarter of 2012, compared to 24% in the second quarter of 2011.
Operating expenses, other than cost of revenues, were $4.0 billion in the second quarter of 2012, or 33% of revenues, compared to $2.97 billion in the second quarter of 2011, or 33% of revenues.
Excluding gains related to our foreign exchange risk management program, had foreign exchange rates remained constant from the first quarter of 2012 through the second quarter of 2012, our Google revenues in the second quarter of 2012 would have been $68 million higher.
4:04PM Integrated Device acquires NXP's (NXPI) data converter assets and Alvand Technologies; terms not disclosed (IDTI) 5.06 +0.01 : These transactions solidify IDT's position as a comprehensive solutions provider for wireless infrastructure. The Company can now offer its customers a one-stop shop for wireless base stations, including radio frequency (RF) components, analog-to-digital converters (ADCs), digital-to-analog converters (DACs), Serial RapidIO switches and bridges, high-performance timing devices, data compression IP, and power management ICs. The acquisitions increase the Company's dollar content in the base station by offering all the key components in the signal chain.
4:02PM Universal Display and Plextronics announce strategic alliance to develop next-generation OLED material systems (PANL) 37.68 +1.53 : Co and Plextronics announced they have entered into a strategic alliance to accelerate the development and commercialization of solution-based OLED material systems incorporating Plextronics' hole injection and hole transport materials with Universal Display's phosphorescent OLED emissive layer materials. The companies entered into a three-year joint development agreement, and Universal Display made a $4 mln investment in Plextronics.
9:50AM Semiconductor Hldrs ETF gap higher extension brings resistance zone into play (SMH) 31.56 +0.44 : Strong performance on Wednesday has been extended off the open with the gap higher start testing resistance in the 31.55/31.67 area which marks the 62% retrace of June/July decline and 50 ema (session high 31.59). Yesterday's leader INTC -1% has stalled near its 50 ema for the second day in a row -- BRCM +4.4%, MRVL +3.4%, ALTR +1.7%, SNDK +1.5%, NVDA +1.1%.
Research In Motion (RIMM) released an update of the BlackBerry 10 developer toolkits. The toolkits are available in beta as free downloads.
8:16AM Ultratech beats by $0.02, beats on revs (UTEK) 30.77 : Reports Q2 (Jun) earnings of $0.41 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.39; revenues rose 9.6% year/year to $59.1 mln vs the $54.83 mln consensus.
8:01AM Oracle announced that it has entered into an agreement to acquire substantially all of the assets of Skire; financial terms not disclosed (ORCL) 30.49 : Co announced that it has entered into an agreement to acquire substantially all of the assets of Skire, a leading provider of capital program management and facilities management applications available both in the cloud and on-premise.
7:35AM Verizon reports EPS in-line, revs in-line (VZ) 45.89 : Reports Q2 (Jun) earnings of $0.64 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.64; revenues rose 3.7% year/year to $28.55 bln vs the $28.54 bln consensus... Retail postpaid ARPU grew 3.7 percent over second-quarter 2011, to a record $56.13, the highest growth in three years. Retail postpaid data ARPU increased to $24.53, up 15.4 percent year over year. Retail service ARPU grew 3.4 percent year over year, to a record $54.29... Co reported 1.2 million retail net customer additions, excluding acquisitions and adjustments, includes 888,000 retail postpaid net customers; low retail postpaid churn of 0.84 percent; 94.2 million total retail customers; 88.8 million total retail postpaid customers.
"Verizon delivered another strong quarter of earnings growth and cash generation, and we remain on track to meet our financial objectives and produce solid double-digit earnings growth for the year... We reported sequential improvement in second-quarter Wireline margins, and we expect to see that improving trend carry through the second half of the year. We also look forward to the closing of strategic transactions and to the integration of process improvements that will set the stage for continued long-term profitable growth across all our business units."
7:32AM Fairchild Semi misses by $0.02, misses on revs; guides Q3 revs below consensus (FCS) 13.33 : Reports Q2 (Jun) earnings of $0.14 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.16; revenues fell 16.6% year/year to $361.5 mln vs the $370.67 mln consensus. Co issues downside guidance for Q3, sees Q3 revs of $360-380 mln vs. $389.44 mln Capital IQ Consensus Estimate. "Our current scheduled backlog is nearly sufficient to achieve the low end of this range. We expect adjusted gross margin to be flat to up 150 basis points due primarily to better product mix. We anticipate R&D and SG&A spending to be roughly flat with the prior quarter. The adjusted tax rate is forecast at 15 percent plus or minus 3 percent for the quarter. Consistent with our usual practices, we are not assuming any obligation to update this information, although we may choose to do so before we announce third quarter results
12:55AM Emcore provides update on manufacturing for its flood-impacted fiber optics products (EMKR) 4.70 : Co announces it expects to be fully recovered from the impact of the Thailand floods on its manufacturing operations, and able to achieve pre-flood production levels on all of its continuing product lines by October 2012. Co expects increased shipments for its fiber optics segment in the coming quarters as manufacturing volume ramps to normal levels.
IBM (IBM $194.14 +5.89) reported second quarter earnings of $3.51 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $3.43, while revenues fell 3.3% year/year to $25.78 billion versus the $26.34 billion consensus. The company issued upside guidance for fiscal year 2012 with raised EPS to at least $15.10, excluding non-recurring items, from at least $15.00 versus the $15.05 consensus. The Americas' second-quarter revenues were $11.1 billion, a decrease of 1% (up 1%, adjusting for currency) from the 2011 period. Revenues from Europe/Middle East/Africa were $7.9 billion, down 9% (flat, adjusting for currency). Asia-Pacific revenues increased 2% (up 4%, adjusting for currency) to $6.3 billion. OEM revenues were $512 million, down 24% compared with the 2011 second quarter. Software revenue, flat, up 4% adjusting for currency; Services revenue down 3%, up 1% adjusting for currency: Services pre-tax income up 18%; Services backlog of $136 billion, down 6%, flat adjusting for currency; Systems and Technology revenue down 9%, down 7% adjusting for currency; Growth markets revenue up 2%, up 8% adjusting for currency; Business analytics revenue up 13% in the first half; Smarter Planet revenue up more than 20% in the first half; Cloud revenue doubled first-half 2011 revenue.
F5 Networks (FFIV $97.82 -0.77) reported third quarter earnings of $1.14 per share, in-line with the Capital IQ consensus of $1.14, while revenues rose 21.3% year/year to $352.6 million versus the $353.16 mln consensus. "Overall, revenue growth slowed in Q3, but revenue by region was generally consistent with historical patterns; 57 percent for the Americas (primarily the United States) and 43 percent for EMEA and APJ, with EMEA contributing 21 percent of the total. The company issued downside guidance for the first quarter with EPS of $1.16-1.19, excluding non-recurring items, vs. $1.24 Capital IQ Consensus Estimate; sees Q1 (Dec) revs of $360-370 mln vs. $383.97 mln Capital IQ Consensus Estimate. Lowered guidance is due to 'cautious spending environment'
Qualcomm (QCOM $58.79 +2.79) reported third quarter earnings of $0.85 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.86, while revenues rose 27.8% year/year to $4.63 billion versus the $4.68 billion consensus. The company issued downside guidance for the fourth quarter with EPS of $0.78-0.84 versus the $0.89 consensus and revenues of $4.45-4.85 billion versus the $4.9 billion consensus. The company issued downside guidance for the fiscal year 2012 with EPS of $3.61-3.67 versus the $3.74 consensus, down from prior guidance of $3.61-3.76; sees FY12 revenues of $18.7-19.1 billion versus the $19.21 billion consensus, down from prior guidance of $18.7-19.7 billion. "Looking forward, our growth estimates for 3G/4G device shipments in calendar 2012 have moderated slightly, and we now expect the demand profile of the calendar year to be more back-end loaded as new devices are launched for the holiday season. Although our outlook for semiconductor volumes in the fiscal fourth quarter has been reduced from our prior expectations, we are ramping supply of our 28 nanometer chipsets to help enable what we expect to be a strong December quarter for our semiconductor business."
Skyworks (SWKS $29.00 +2.36) reported third quarter arnings of $0.45 per share, excluding non-recurring items, $0.01 better than the Capital IQ consensus of $0.44, while revenues rose 9.2% year/year to $389 mln vs the $383.02 million consensus. The company issued in-line guidance for the fourth quarter with EPS of 0.50-0.51, excluding non-recurring items, versus the $0.51 consensus and revenues of 415-420 million versus the $418.03 million consensus. "Our strategic diversification across OEMs and chipset partners is enabling us to produce consistently strong operating results despite the macro economy. Specifically, we are gaining share within adjacent vertical markets including automotive, medical, avionics, military, location services and broadband communications. At the same time, our innovative solutions are powering the world's most popular smartphones, tablets, home automation platforms and network infrastructure systems. In short, we have created a differentiated business model that is delivering demonstrable, best in class mobile internet growth with analog semiconductor shareholder returns."
eBay (EBAY $44.17 +3.75) reported second quarter earnings of $0.56 per share, excluding non-recurring items, $0.01 better than the Capital IQ consensus of $0.55, while revenues rose 23.1% year/year to $3.4 billion versus the $3.36 billion consensus. The company issued guidance for the third quarter with EPS of $0.53-0.55, excluding non-recurring items, versus the $0.55 consensus with revenues of $3.3-3.4 billion versus the $3.41 billion consensus. The company reaffirmed guidance for fiscal year 2012 with EPS of $2.30-2.35, excluding non-recurring items, versus the $2.35 consensus and revenues of $13.8-14.1 billion versus the $14 billion consensus. Q2 non-GAAP op margin of 27.3% vs 26.9% last qtr and 27.6% year ago; Q2 active users of 104.8 mln vs 102.4 mln last qtr. PayPal ended the quarter with 113.2 million active registered accounts, a 13% increase over the second quarter of 2011. PayPal revenue increased 26% year over year, driven primarily by increased penetration on eBay as well as continued merchant and consumer adoption and strong growth in Bill Me Later. "Our entire company is strong, but we're particularly pleased with eBay Marketplaces, which delivered its strongest organic growth in gross merchandise volume, excluding vehicles, since 2006. And mobile continues to be a game changer. We now expect eBay and PayPal mobile to each transact $10 billion in volume in 2012 -- that's more than double 2011, a staggering surge in mobile shopping and payments on devices that did not exist just a few years ago. Retail is at an inflection point, and we are helping to reshape how people around the world shop and pay."
09:16 am Skyworks upgraded to Buy at Sterne Agee; tgt $31: . Sterne Agee upgrades SWKS to Buy from Neutral and sets target price at $31, following earnings, as the overall handset market improves into 2H12 with improving 28nm-Snapdragon supply. Firm believes 1H12 gives a base case in the handset market, post a significant OEM handset market share reshuffle and 2H12 units should incrementally improve as the handset market coalesces around the leaders Apple-Samsung-China. Firm's upgrade is primarily based on improving visibility into the Handset Supply Chain.
09:28 am Qualcomm shares rise 5% despite miss on EPS
Qualcomm (QCOM $59.04 +2.08) reported third quarter earnings of $0.85 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.86, while revenues rose 27.8% year/year to $4.63 billion versus the $4.68 billion consensus. The company issued downside guidance for the fourth quarter with EPS of $0.78-0.84 versus the $0.89 consensus and revenues of $4.45-4.85 billion versus the $4.9 billion consensus. The company issued downside guidance for the fiscal year 2012 with EPS of $3.61-3.67 versus the $3.74 consensus, down from prior guidance of $3.61-3.76; sees FY12 revenues of $18.7-19.1 billion versus the $19.21 billion consensus, down from prior guidance of $18.7-19.7 billion.
"Looking forward, our growth estimates for 3G/4G device shipments in calendar 2012 have moderated slightly, and we now expect the demand profile of the calendar year to be more back-end loaded as new devices are launched for the holiday season. Although our outlook for semiconductor volumes in the fiscal fourth quarter has been reduced from our prior expectations, we are ramping supply of our 28 nanometer chipsets to help enable what we expect to be a strong December quarter for our semiconductor business."
09:25 am IBM shares rise 2% following beat on EPS and upside guidance
IBM (IBM $193.14 +4.86) reported second quarter earnings of $3.51 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $3.43, while revenues fell 3.3% year/year to $25.78 billion versus the $26.34 billion consensus. The company issued upside guidance for fiscal year 2012 with raised EPS to at least $15.10, excluding non-recurring items, from at least $15.00 versus the $15.05 consensus.
The Americas' second-quarter revenues were $11.1 billion, a decrease of 1% (up 1%, adjusting for currency) from the 2011 period. Revenues from Europe/Middle East/Africa were $7.9 billion, down 9% (flat, adjusting for currency). Asia-Pacific revenues increased 2% (up 4%, adjusting for currency) to $6.3 billion. OEM revenues were $512 million, down 24% compared with the 2011 second quarter. Software revenue, flat, up 4% adjusting for currency; Services revenue down 3%, up 1% adjusting for currency: Services pre-tax income up 18%; Services backlog of $136 billion, down 6%, flat adjusting for currency; Systems and Technology revenue down 9%, down 7% adjusting for currency; Growth markets revenue up 2%, up 8% adjusting for currency; Business analytics revenue up 13% in the first half; Smarter Planet revenue up more than 20% in the first half; Cloud revenue doubled first-half 2011 revenue.
09:15 am SkyWorks shares soar over 10% following better than expected earnings
Skyworks (SWKS $29.30 +2.66) reported third quarter earnings of $0.45 per share, excluding non-recurring items, $0.01 better than the Capital IQ consensus of $0.44, while revenues rose 9.2% year/year to $389 mln vs the $383.02 million consensus. The company issued in-line guidance for the fourth quarter with EPS of 0.50-0.51, excluding non-recurring items, versus the $0.51 consensus and revenues of 415-420 million versus the $418.03 million consensus.
"Our strategic diversification across OEMs and chipset partners is enabling us to produce consistently strong operating results despite the macro economy. Specifically, we are gaining share within adjacent vertical markets including automotive, medical, avionics, military, location services and broadband communications. At the same time, our innovative solutions are powering the world's most popular smartphones, tablets, home automation platforms and network infrastructure systems. In short, we have created a differentiated business model that is delivering demonstrable, best in class mobile internet growth with analog semiconductor shareholder returns."
09:12 am Ebay shares are bid about 7% higher following beat on EPS and revenues
eBay (EBAY $43.58 +3.12) reported second quarter earnings of $0.56 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.55, while revenues rose 23.1% year/year to $3.4 billion versus the $3.36 billion consensus. The company issued guidance for the third quarter with EPS of $0.53-0.55, excluding non-recurring items, versus the $0.55 consensus with revenues of $3.3-3.4 billion versus the $3.41 billion consensus. The company reaffirmed guidance for fiscal year 2012 with EPS of $2.30-2.35, excluding non-recurring items, versus the $2.35 consensus and revenues of $13.8-14.1 billion versus the $14 billion consensus. Q2 non-GAAP op margin of 27.3% vs 26.9% last qtr and 27.6% year ago; Q2 active users of 104.8 mln vs 102.4 mln last qtr.
PayPal ended the quarter with 113.2 million active registered accounts, a 13% increase over the second quarter of 2011. PayPal revenue increased 26% year over year, driven primarily by increased penetration on eBay as well as continued merchant and consumer adoption and strong growth in Bill Me Later. "Our entire company is strong, but we're particularly pleased with eBay Marketplaces, which delivered its strongest organic growth in gross merchandise volume, excluding vehicles, since 2006. And mobile continues to be a game changer. We now expect eBay and PayPal mobile to each transact $10 billion in volume in 2012 -- that's more than double 2011, a staggering surge in mobile shopping and payments on devices that did not exist just a few years ago. Retail is at an inflection point, and we are helping to reshape how people around the world shop and pay."
International Business Machines (IBM 195.34, +7.09) was a notable winner, rallying 3.8% and regaining its 200-day moving average as the stock was able to shake off a top line miss.
YUM! Brands (YUM 65.86, +0.31) was another example of the low second quarter expectations as erased early selling pressure and pushed back into positive territory. This despite a $0.03 miss on the bottom line. The company did outpace revenue expectations which appears to be enough to offset cost concerns at this point.
Morgan Stanley (MS 13.25, -0.74) was a notable underperformer after the firm missed on both the top and bottom lines.
Technology names eBay (EBAY 43.95, +3.49), Qualcomm (QCOM 58.44, +2.39), F5 Networks (FFIV 102.75, +4.16), Mellanox Technologies (MLNX 93.90, +27.52) and Skyworks Solutions (SWKS 29.17, +2.53) are ended higher after reporting earnings following yesterday's closing bell.
New Oriental Education & Technology (EDU 11.20, +1.70) jumped 17.9% after the company responded to accusations from research firm Muddy Waters. The research firm suggested a significant number of the firm’s 664 owned and operated schools and learning centers were instead operated by franchisees and that the company represented these operations as their own. A response from the company suggested, “The Muddy Waters report is wrong....New Oriental has never included these cooperation facilities, which never exceeded 21 facilities in total, in the counts of its own schools and learning centers, nor has New Oriental included student enrollments from these cooperation facilities as its own student enrollments.”
Shares of Walgreens (WAG 34.62, +3.65) and Express Scripts (ESRX 58.76, +1.07) rallied after the two companies announced a pharmacy network agreement. Terms of the contract were not disclosed; however, the deal will allow Walgreens to participate in the broadest Express Scripts retail network available to new and existing clients. Today’s gains had shares of Express Scripts testing all-time highs near the $60 level.
Homebuilders Toll Brothers (TOL 29.42, -0.19) and Lennar Corp. (LEN 30.32, -0.06) fell 0.6% and 0.2% respectively after this morning's disappointing existing home sales data.
Treasuries finished near session lows as most maturities finished just below their respective flat lines. The complex was unable to garner any meaningful strength despite today’s lackluster economic data as the 10-yr yield ticked up to 1.515%.
There is no data set for release tomorrow.DJ30 +34.66 NASDAQ +23.30 SP500 +3.73 NASDAQ Adv/Vol/Dec 1093/1.66 bln/1463 NYSE Adv/Vol/Dec 1563/756.6 mln/1463
3:25 pm : Crude oil steadily climbed higher during today’s pit session as the dollar weakened. It came off its session low of $90.67 and peaked at $92.97 in afternoon action. Although it pulled back slightly into the close, the energy component booked a solid gain of 3.2% at $92.81 per barrel. Natural gas touched a session high of $3.03 per MMBtu following better-than-expected inventory data that showed a build of 28 bcf when a build of 30 bcf was anticipated. It then spent the majority of pit trade chopping around just above the unchanged line before settling up 1.0% at $3.00 per MMBtu.
Precious metals also saw a boost from the weaker dollar and disappointing U.S. data. Both gold and silver spent their entire sessions in the black, touching respective highs of $1591.50 and $27.58 per ounce. However, a sell-off to session lows moments before the close left gold to settle with a gain of 0.6% at $1580.10 while silver booked a 0.5%advance, closing at $27.21 per ounce.DJ30 +37.84 NASDAQ +25.07 SP500 +3.60 NASDAQ Adv/Vol/Dec 1139/1.37 bln/1341 NYSE Adv/Vol/Dec 1537/525.2 mln/1481
5:15PM Monolithic Power wins in patent dispute and obtains injunction order against Fitipower (MPWR) 19.50 +0.75 : Co announced that on June 14, 2012, the Intellectual Property Court (IP Court) in Taiwan issued a judgment finding Fitipower Integrated Technology (Fitipower) infringes MPS Patent No. I299935. The IP Court also granted an injunctive relief ordering Fitipower to destroy and to stop making, selling, importing, use and offer to sell infringing products and datasheets including TA2154, FR9758, FR9706 and FP6340. In the ruling, the IP Court awarded MPS monetary damages in the amount of $1.8 mln New Taiwan Dollars against Fitipower. MPS Patent No. I299935 enables efficient low-voltage, low-current power conversion such as DC-DC step-down converter applications. In 2010, MPS filed two patent infringement lawsuits against Fitipower with the IP Court in Taiwan.
4:22PM Advanced Micro misses by $0.01, reports revs in-line; guides Q3 revs below consensus (AMD) 4.86 -0.03 : Reports Q2 (Jun) earnings of $0.06 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.07; revenues fell 10.2% year/year to $1.41 bln vs the $1.41 bln consensus; non-GAAP GM flat QoQ at 46%. Co issues downside guidance for Q3, sees Q3 revs of -4 to +2% QoQ to ~$1.35-1.42 bln vs. $1.5 bln Capital IQ Consensus Estimate. "Overall weakness in the global economy, softer consumer spending and lower channel demand for our desktop processors in China and Europe made the closing weeks of the quarter challenging. We are taking definitive steps to improve our performance and correct the issues within our control as we expect headwinds will continue in the third quarter as the industry sets a new baseline. We remain optimistic about our core businesses as well as future opportunities with our competitively differentiated next-generation Accelerated Processor Units (APUs). Our recently launched Trinity APU continues to gain traction with customers."
4:10PM Microsoft beats by $0.11 (MSFT) 30.67 +0.22 : Reports Q4 (Jun) earnings of $0.73 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus Estimate of $0.62; GAAP revenues rose 4.0% year/year to $18.06 bln; non-GAAP rev +7% to $18.6 bln, consensus is $18.21 bln consensus. The Server & Tools business revenue grew 13% for the fourth quarter and 12% for the full year. The Microsoft Business Division revenue grew 7% for the fourth quarter and 7% for the full year reflecting continued momentum in Office 2010 sales. The Windows & Windows Live Division revenue declined 13% for the fourth quarter and 3% for the full year. Adjusting for the impact of the Windows Upgrade Offer, Windows Division non-GAAP revenue declined 1% for the fourth quarter and 1% for the full year. Windows 7 adoption continued with more than 50% of worldwide enterprise desktops now running Windows 7. The next version of Windows will release to manufacturing this August and will become generally available October 26, 2012. The Online Services Division revenue grew 8% for the fourth quarter and 10% for the full year reflecting growth in our search business. Bing organic U.S. search market share was 15.6% for the month of June 2012, up 120 points from the prior year period. The Entertainment and Devices Division revenue grew 20% for the fourth quarter and 8% for the full year primarily reflecting the addition of Skype. "Over the coming year, we'll release the next versions of Windows, Office, Windows Server, Windows Phone, and many other products and services that will drive our business forward and provide unprecedented opportunity to our customers and partners."
4:08PM SanDisk beats by $0.02, beats on revs (SNDK) : Reports Q2 (Jun) earnings of $0.21 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.19; revenues fell 24.9% year/year to $1.03 bln vs the $1.02 bln consensus.
4:07PM Rambus misses by $0.09, misses on revs (RMBS) 5.21 +0.00 : Reports Q2 (Jun) loss of $0.29 per share, $0.09 worse than the Capital IQ Consensus Estimate of ($0.20); revenues fell 15.1% year/year to $56.2 mln vs the $62.95 mln consensus.
4:06PM Freescale Semi beats by $0.04, beats on revs; guides Q3 revs below consensus (FSL) 10.21 +0.68 : Reports Q2 (Jun) earnings of $0.07 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.03; revenues fell 15.9% year/year to $1.03 bln vs the $1 bln consensus. Co issues downside guidance for Q3, sees Q3 revs of $955-1005 vs. $1.06 bln Capital IQ Consensus Estimate, Q3 gross margins to decrease approximately 75 basis points on a sequential basis.
4:06PM Google beats by $0.03, beats on revs (GOOG) 593.06 +12.30 : Reports Q2 (Jun) earnings of $10.12 per share, $0.03 better than the Capital IQ Consensus Estimate of $10.09; revenues rose 39.0% year/year to $9.61 bln vs the $8.41 bln consensus.
GOOG Q2 Costs per click +1% q/q; -16% y/y; Q1 results were -6% q/q, -12% y/y. GOOG Q2 Paid Clicks +1% q/q, +42% y/y; Q1 results +7% q/q, +39% y/y.
Traffic acquisition costs, the portion of revenues shared with Google's partners, increased to $2.60 billion in the second quarter of 2012, compared to $2.11 billion in the second quarter of 2011. TAC as a percentage of advertising revenues was 25% in the second quarter of 2012, compared to 24% in the second quarter of 2011.
Operating expenses, other than cost of revenues, were $4.0 billion in the second quarter of 2012, or 33% of revenues, compared to $2.97 billion in the second quarter of 2011, or 33% of revenues.
Excluding gains related to our foreign exchange risk management program, had foreign exchange rates remained constant from the first quarter of 2012 through the second quarter of 2012, our Google revenues in the second quarter of 2012 would have been $68 million higher.
4:04PM Integrated Device acquires NXP's (NXPI) data converter assets and Alvand Technologies; terms not disclosed (IDTI) 5.06 +0.01 : These transactions solidify IDT's position as a comprehensive solutions provider for wireless infrastructure. The Company can now offer its customers a one-stop shop for wireless base stations, including radio frequency (RF) components, analog-to-digital converters (ADCs), digital-to-analog converters (DACs), Serial RapidIO switches and bridges, high-performance timing devices, data compression IP, and power management ICs. The acquisitions increase the Company's dollar content in the base station by offering all the key components in the signal chain.
4:02PM Universal Display and Plextronics announce strategic alliance to develop next-generation OLED material systems (PANL) 37.68 +1.53 : Co and Plextronics announced they have entered into a strategic alliance to accelerate the development and commercialization of solution-based OLED material systems incorporating Plextronics' hole injection and hole transport materials with Universal Display's phosphorescent OLED emissive layer materials. The companies entered into a three-year joint development agreement, and Universal Display made a $4 mln investment in Plextronics.
9:50AM Semiconductor Hldrs ETF gap higher extension brings resistance zone into play (SMH) 31.56 +0.44 : Strong performance on Wednesday has been extended off the open with the gap higher start testing resistance in the 31.55/31.67 area which marks the 62% retrace of June/July decline and 50 ema (session high 31.59). Yesterday's leader INTC -1% has stalled near its 50 ema for the second day in a row -- BRCM +4.4%, MRVL +3.4%, ALTR +1.7%, SNDK +1.5%, NVDA +1.1%.
Research In Motion (RIMM) released an update of the BlackBerry 10 developer toolkits. The toolkits are available in beta as free downloads.
8:16AM Ultratech beats by $0.02, beats on revs (UTEK) 30.77 : Reports Q2 (Jun) earnings of $0.41 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.39; revenues rose 9.6% year/year to $59.1 mln vs the $54.83 mln consensus.
8:01AM Oracle announced that it has entered into an agreement to acquire substantially all of the assets of Skire; financial terms not disclosed (ORCL) 30.49 : Co announced that it has entered into an agreement to acquire substantially all of the assets of Skire, a leading provider of capital program management and facilities management applications available both in the cloud and on-premise.
7:35AM Verizon reports EPS in-line, revs in-line (VZ) 45.89 : Reports Q2 (Jun) earnings of $0.64 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.64; revenues rose 3.7% year/year to $28.55 bln vs the $28.54 bln consensus... Retail postpaid ARPU grew 3.7 percent over second-quarter 2011, to a record $56.13, the highest growth in three years. Retail postpaid data ARPU increased to $24.53, up 15.4 percent year over year. Retail service ARPU grew 3.4 percent year over year, to a record $54.29... Co reported 1.2 million retail net customer additions, excluding acquisitions and adjustments, includes 888,000 retail postpaid net customers; low retail postpaid churn of 0.84 percent; 94.2 million total retail customers; 88.8 million total retail postpaid customers.
"Verizon delivered another strong quarter of earnings growth and cash generation, and we remain on track to meet our financial objectives and produce solid double-digit earnings growth for the year... We reported sequential improvement in second-quarter Wireline margins, and we expect to see that improving trend carry through the second half of the year. We also look forward to the closing of strategic transactions and to the integration of process improvements that will set the stage for continued long-term profitable growth across all our business units."
7:32AM Fairchild Semi misses by $0.02, misses on revs; guides Q3 revs below consensus (FCS) 13.33 : Reports Q2 (Jun) earnings of $0.14 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.16; revenues fell 16.6% year/year to $361.5 mln vs the $370.67 mln consensus. Co issues downside guidance for Q3, sees Q3 revs of $360-380 mln vs. $389.44 mln Capital IQ Consensus Estimate. "Our current scheduled backlog is nearly sufficient to achieve the low end of this range. We expect adjusted gross margin to be flat to up 150 basis points due primarily to better product mix. We anticipate R&D and SG&A spending to be roughly flat with the prior quarter. The adjusted tax rate is forecast at 15 percent plus or minus 3 percent for the quarter. Consistent with our usual practices, we are not assuming any obligation to update this information, although we may choose to do so before we announce third quarter results
12:55AM Emcore provides update on manufacturing for its flood-impacted fiber optics products (EMKR) 4.70 : Co announces it expects to be fully recovered from the impact of the Thailand floods on its manufacturing operations, and able to achieve pre-flood production levels on all of its continuing product lines by October 2012. Co expects increased shipments for its fiber optics segment in the coming quarters as manufacturing volume ramps to normal levels.
IBM (IBM $194.14 +5.89) reported second quarter earnings of $3.51 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $3.43, while revenues fell 3.3% year/year to $25.78 billion versus the $26.34 billion consensus. The company issued upside guidance for fiscal year 2012 with raised EPS to at least $15.10, excluding non-recurring items, from at least $15.00 versus the $15.05 consensus. The Americas' second-quarter revenues were $11.1 billion, a decrease of 1% (up 1%, adjusting for currency) from the 2011 period. Revenues from Europe/Middle East/Africa were $7.9 billion, down 9% (flat, adjusting for currency). Asia-Pacific revenues increased 2% (up 4%, adjusting for currency) to $6.3 billion. OEM revenues were $512 million, down 24% compared with the 2011 second quarter. Software revenue, flat, up 4% adjusting for currency; Services revenue down 3%, up 1% adjusting for currency: Services pre-tax income up 18%; Services backlog of $136 billion, down 6%, flat adjusting for currency; Systems and Technology revenue down 9%, down 7% adjusting for currency; Growth markets revenue up 2%, up 8% adjusting for currency; Business analytics revenue up 13% in the first half; Smarter Planet revenue up more than 20% in the first half; Cloud revenue doubled first-half 2011 revenue.
F5 Networks (FFIV $97.82 -0.77) reported third quarter earnings of $1.14 per share, in-line with the Capital IQ consensus of $1.14, while revenues rose 21.3% year/year to $352.6 million versus the $353.16 mln consensus. "Overall, revenue growth slowed in Q3, but revenue by region was generally consistent with historical patterns; 57 percent for the Americas (primarily the United States) and 43 percent for EMEA and APJ, with EMEA contributing 21 percent of the total. The company issued downside guidance for the first quarter with EPS of $1.16-1.19, excluding non-recurring items, vs. $1.24 Capital IQ Consensus Estimate; sees Q1 (Dec) revs of $360-370 mln vs. $383.97 mln Capital IQ Consensus Estimate. Lowered guidance is due to 'cautious spending environment'
Qualcomm (QCOM $58.79 +2.79) reported third quarter earnings of $0.85 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.86, while revenues rose 27.8% year/year to $4.63 billion versus the $4.68 billion consensus. The company issued downside guidance for the fourth quarter with EPS of $0.78-0.84 versus the $0.89 consensus and revenues of $4.45-4.85 billion versus the $4.9 billion consensus. The company issued downside guidance for the fiscal year 2012 with EPS of $3.61-3.67 versus the $3.74 consensus, down from prior guidance of $3.61-3.76; sees FY12 revenues of $18.7-19.1 billion versus the $19.21 billion consensus, down from prior guidance of $18.7-19.7 billion. "Looking forward, our growth estimates for 3G/4G device shipments in calendar 2012 have moderated slightly, and we now expect the demand profile of the calendar year to be more back-end loaded as new devices are launched for the holiday season. Although our outlook for semiconductor volumes in the fiscal fourth quarter has been reduced from our prior expectations, we are ramping supply of our 28 nanometer chipsets to help enable what we expect to be a strong December quarter for our semiconductor business."
Skyworks (SWKS $29.00 +2.36) reported third quarter arnings of $0.45 per share, excluding non-recurring items, $0.01 better than the Capital IQ consensus of $0.44, while revenues rose 9.2% year/year to $389 mln vs the $383.02 million consensus. The company issued in-line guidance for the fourth quarter with EPS of 0.50-0.51, excluding non-recurring items, versus the $0.51 consensus and revenues of 415-420 million versus the $418.03 million consensus. "Our strategic diversification across OEMs and chipset partners is enabling us to produce consistently strong operating results despite the macro economy. Specifically, we are gaining share within adjacent vertical markets including automotive, medical, avionics, military, location services and broadband communications. At the same time, our innovative solutions are powering the world's most popular smartphones, tablets, home automation platforms and network infrastructure systems. In short, we have created a differentiated business model that is delivering demonstrable, best in class mobile internet growth with analog semiconductor shareholder returns."
eBay (EBAY $44.17 +3.75) reported second quarter earnings of $0.56 per share, excluding non-recurring items, $0.01 better than the Capital IQ consensus of $0.55, while revenues rose 23.1% year/year to $3.4 billion versus the $3.36 billion consensus. The company issued guidance for the third quarter with EPS of $0.53-0.55, excluding non-recurring items, versus the $0.55 consensus with revenues of $3.3-3.4 billion versus the $3.41 billion consensus. The company reaffirmed guidance for fiscal year 2012 with EPS of $2.30-2.35, excluding non-recurring items, versus the $2.35 consensus and revenues of $13.8-14.1 billion versus the $14 billion consensus. Q2 non-GAAP op margin of 27.3% vs 26.9% last qtr and 27.6% year ago; Q2 active users of 104.8 mln vs 102.4 mln last qtr. PayPal ended the quarter with 113.2 million active registered accounts, a 13% increase over the second quarter of 2011. PayPal revenue increased 26% year over year, driven primarily by increased penetration on eBay as well as continued merchant and consumer adoption and strong growth in Bill Me Later. "Our entire company is strong, but we're particularly pleased with eBay Marketplaces, which delivered its strongest organic growth in gross merchandise volume, excluding vehicles, since 2006. And mobile continues to be a game changer. We now expect eBay and PayPal mobile to each transact $10 billion in volume in 2012 -- that's more than double 2011, a staggering surge in mobile shopping and payments on devices that did not exist just a few years ago. Retail is at an inflection point, and we are helping to reshape how people around the world shop and pay."
09:16 am Skyworks upgraded to Buy at Sterne Agee; tgt $31: . Sterne Agee upgrades SWKS to Buy from Neutral and sets target price at $31, following earnings, as the overall handset market improves into 2H12 with improving 28nm-Snapdragon supply. Firm believes 1H12 gives a base case in the handset market, post a significant OEM handset market share reshuffle and 2H12 units should incrementally improve as the handset market coalesces around the leaders Apple-Samsung-China. Firm's upgrade is primarily based on improving visibility into the Handset Supply Chain.
09:28 am Qualcomm shares rise 5% despite miss on EPS
Qualcomm (QCOM $59.04 +2.08) reported third quarter earnings of $0.85 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.86, while revenues rose 27.8% year/year to $4.63 billion versus the $4.68 billion consensus. The company issued downside guidance for the fourth quarter with EPS of $0.78-0.84 versus the $0.89 consensus and revenues of $4.45-4.85 billion versus the $4.9 billion consensus. The company issued downside guidance for the fiscal year 2012 with EPS of $3.61-3.67 versus the $3.74 consensus, down from prior guidance of $3.61-3.76; sees FY12 revenues of $18.7-19.1 billion versus the $19.21 billion consensus, down from prior guidance of $18.7-19.7 billion.
"Looking forward, our growth estimates for 3G/4G device shipments in calendar 2012 have moderated slightly, and we now expect the demand profile of the calendar year to be more back-end loaded as new devices are launched for the holiday season. Although our outlook for semiconductor volumes in the fiscal fourth quarter has been reduced from our prior expectations, we are ramping supply of our 28 nanometer chipsets to help enable what we expect to be a strong December quarter for our semiconductor business."
09:25 am IBM shares rise 2% following beat on EPS and upside guidance
IBM (IBM $193.14 +4.86) reported second quarter earnings of $3.51 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $3.43, while revenues fell 3.3% year/year to $25.78 billion versus the $26.34 billion consensus. The company issued upside guidance for fiscal year 2012 with raised EPS to at least $15.10, excluding non-recurring items, from at least $15.00 versus the $15.05 consensus.
The Americas' second-quarter revenues were $11.1 billion, a decrease of 1% (up 1%, adjusting for currency) from the 2011 period. Revenues from Europe/Middle East/Africa were $7.9 billion, down 9% (flat, adjusting for currency). Asia-Pacific revenues increased 2% (up 4%, adjusting for currency) to $6.3 billion. OEM revenues were $512 million, down 24% compared with the 2011 second quarter. Software revenue, flat, up 4% adjusting for currency; Services revenue down 3%, up 1% adjusting for currency: Services pre-tax income up 18%; Services backlog of $136 billion, down 6%, flat adjusting for currency; Systems and Technology revenue down 9%, down 7% adjusting for currency; Growth markets revenue up 2%, up 8% adjusting for currency; Business analytics revenue up 13% in the first half; Smarter Planet revenue up more than 20% in the first half; Cloud revenue doubled first-half 2011 revenue.
09:15 am SkyWorks shares soar over 10% following better than expected earnings
Skyworks (SWKS $29.30 +2.66) reported third quarter earnings of $0.45 per share, excluding non-recurring items, $0.01 better than the Capital IQ consensus of $0.44, while revenues rose 9.2% year/year to $389 mln vs the $383.02 million consensus. The company issued in-line guidance for the fourth quarter with EPS of 0.50-0.51, excluding non-recurring items, versus the $0.51 consensus and revenues of 415-420 million versus the $418.03 million consensus.
"Our strategic diversification across OEMs and chipset partners is enabling us to produce consistently strong operating results despite the macro economy. Specifically, we are gaining share within adjacent vertical markets including automotive, medical, avionics, military, location services and broadband communications. At the same time, our innovative solutions are powering the world's most popular smartphones, tablets, home automation platforms and network infrastructure systems. In short, we have created a differentiated business model that is delivering demonstrable, best in class mobile internet growth with analog semiconductor shareholder returns."
09:12 am Ebay shares are bid about 7% higher following beat on EPS and revenues
eBay (EBAY $43.58 +3.12) reported second quarter earnings of $0.56 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.55, while revenues rose 23.1% year/year to $3.4 billion versus the $3.36 billion consensus. The company issued guidance for the third quarter with EPS of $0.53-0.55, excluding non-recurring items, versus the $0.55 consensus with revenues of $3.3-3.4 billion versus the $3.41 billion consensus. The company reaffirmed guidance for fiscal year 2012 with EPS of $2.30-2.35, excluding non-recurring items, versus the $2.35 consensus and revenues of $13.8-14.1 billion versus the $14 billion consensus. Q2 non-GAAP op margin of 27.3% vs 26.9% last qtr and 27.6% year ago; Q2 active users of 104.8 mln vs 102.4 mln last qtr.
PayPal ended the quarter with 113.2 million active registered accounts, a 13% increase over the second quarter of 2011. PayPal revenue increased 26% year over year, driven primarily by increased penetration on eBay as well as continued merchant and consumer adoption and strong growth in Bill Me Later. "Our entire company is strong, but we're particularly pleased with eBay Marketplaces, which delivered its strongest organic growth in gross merchandise volume, excluding vehicles, since 2006. And mobile continues to be a game changer. We now expect eBay and PayPal mobile to each transact $10 billion in volume in 2012 -- that's more than double 2011, a staggering surge in mobile shopping and payments on devices that did not exist just a few years ago. Retail is at an inflection point, and we are helping to reshape how people around the world shop and pay."
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