AI
Wednesday, October 17, 2012 9:03:09 PM
ER121017: IBM INTC EBAY FFIV CREE ASML CYMI APOL FTNT CHKP NTRS PEP HAL
Stocks began today's session on a negative note after two technology bellwethers reported disappointing earnings. However, the cautious sentiment was short-circuited when today's housing starts report revealed its highest reading since July 2008. The major averages reacted by staging a steady climb to their respective session highs. A brief afternoon stumble followed, but the move was promptly retraced as the S&P 500 returned to its prior level, and closed higher by 0.4%.
The technology sector was the worst performing group in the S&P 500. Intel (INTC 21.79, -0.56) slipped 2.5% despite beating its earnings and revenue expectations. It should be noted this quarter marked the first time Intel reported a decline in year-to-year revenue since the third quarter of 2009. In addition, Sterne Agee lowered its price target for Intel to $20 from $22.
IBM (IBM 200.63, -10.37) slid 4.9% after reporting a slight earnings beat and a revenue miss. Following the earnings release, the stock was downgraded by Janney Montgomery Scott and Societe Generale. Janney Montgomery Scott lowered IBM's rating to ‘buy' from ‘neutral' while Societe Generale downgraded the company to ‘sell' from ‘hold.'
Networking stocks also saw weakness. Cisco Systems (CSCO 18.70, -0.15), F5 Networks (FFIV 97.33, -3.86), and Juniper Networks (JNPR 17.31, -0.17) all lost between 0.8% and 3.8%. Earlier, Cantor Fitzgerald downgraded Cisco to ‘hold' from ‘buy' with a $19.50 price target.
On the upside, Cree (CREE 28.92, +2.73) settled higher by 10.4% after beating on earnings and reporting in-line revenues. In addition, the company issued in-line earnings and revenue guidance for the second quarter.
In M&A news, ASML Holdings (ASML 50.08, -3.50) will acquire Cymer (CYMI 71.45, +23.62) in a cash-and-stock transaction valued at EUR1.95 billion. The total price reflects a 61.0% premium to Cymer's 30-day volume-weighted average price. Following the report, ASML shed 6.6% while Cymer surged 49.4%.
http://finance.yahoo.com/marketupdate?u
Apollo tumbles 17% on weak results, downgrades (10:33 am ET)
SAN FRANCISCO (MarketWatch) -- Apollo Group Inc. (APOL: news, chart, profile) shares plunged as much as 17% in early trades Wednesday after the for-profit education provider was hit by downgrades from several equities analysts following a weak earnings report. Apollo, citing declining enrollment numbers, announced late Tuesday its fiscal fourth-quarter profit fell 60% from a year ago. It also trimmed its full-year revenue outlook to $3.65 billion to $3.8 billion, less than the $4.07 billion analysts were looking for. The weak results and outlook overshadowed steep cost cuts Apollo is putting in place. Analysts at Credit Suisse, Deutsche Bank Markets Research and BMO Capital Markets were among those who cut their targets on the company. Apollo shares were last trading 17% lower at $22.81, a 52-week low. The stock is down 46% from where it traded a year ago.
Cree shares rise 11% as earnings top forecasts(10:30 am ET)
SAN FRANCISCO (MarketWatch) -- Cree Inc. (CREE: news, chart, profile) shares climbed 11%, to $29.13 Wednesday following the LED lighting company's fiscal first-quarter results. Late Tuesday, Cree reported earnings excluding one-time items of 27 cents a share, on revenue of $315.8 million, up from earnings of 25 cents a share on, $269 million in sales, in the same period a year ago. Wall Street analysts had forecast Cree to earn 26 cents a share on revenue of almost $318 million.
Northern Trust profit climbs by nearly 5%(7:52 am ET)
NEW YORK (MarketWatch) -- Northern Trust Corp. (NTRS: news, chart, profile) said Wednesday its third-quarter profit increased to $178.8 million, or 73 cents a share, from $170.4 million, or 70 cents a share, in the year-ago period. The Chicago-based financial firm's revenue rose to $972.5 million from $971.5 million. Wall Street analysts expected Northern Trust to earn 74 cents a share on revenue of $987.5 million, according to a survey by FactSet. Northern Trust reported 16% growth in client assets under management, but said it faced headwinds from lower interest rates, market activity and volatility. "We continued to adapt to these macroeconomic challenges with effective expense management," the company said.
Halliburton profit falls, sees higher U.S. costs(7:39 am ET)
NEW YORK (MarketWatch) -- Halliburton Co. (HAL: news, chart, profile) said Wednesday its third-quarter profit dropped to $602 million, or 65 cents a share, from $683 million, or 74 cents a share, in the year-ago period. Adjusted profit in the latest quarter totaled 67 cents a share. The oil service firm's revenue rose to $7.11 billion from $6.55 billion. Wall Street analysts expected Halliburton to earn 67 cents a share on revenue of $7.14 billion, according to a survey by FactSet. Halliburton said lower activity and higher costs in the U.S. land market bit into revenue from the second quarter's level of $7.23 billion.
PepsiCo profit falls 5%, but beats estimate(7:24 am ET)
NEW YORK (MarketWatch) -- PepsiCo (PEP: news, chart, profile) said Wednesday its third-quarter profit dipped 5% to $1.9 billion, or $1.21 a share, from $2 billion, or $1.25 a share, in the year-ago period. Adjusted earnings for the soft drink and snacks company totaled $1.20 a share. Revenue moved down by 5% to $16.65 billion. Wall Street analysts expected Pepsi to earn $1.16 a share on revenue of just under $17 billion, according to a survey by FactSet. Pepsi said it's on track to return more than $6 billion to shareholders through dividend payments and share purchases in 2012. It expects $1 billion in productivity savings in 2012.
http://www.marketwatch.com/news/markets/earningswatch.asp
IBM INTC EBAY FFIV CREE ASML CYMI APOL FTNT CHKP NTRS PEP HAL
Stocks began today's session on a negative note after two technology bellwethers reported disappointing earnings. However, the cautious sentiment was short-circuited when today's housing starts report revealed its highest reading since July 2008. The major averages reacted by staging a steady climb to their respective session highs. A brief afternoon stumble followed, but the move was promptly retraced as the S&P 500 returned to its prior level, and closed higher by 0.4%.
The technology sector was the worst performing group in the S&P 500. Intel (INTC 21.79, -0.56) slipped 2.5% despite beating its earnings and revenue expectations. It should be noted this quarter marked the first time Intel reported a decline in year-to-year revenue since the third quarter of 2009. In addition, Sterne Agee lowered its price target for Intel to $20 from $22.
IBM (IBM 200.63, -10.37) slid 4.9% after reporting a slight earnings beat and a revenue miss. Following the earnings release, the stock was downgraded by Janney Montgomery Scott and Societe Generale. Janney Montgomery Scott lowered IBM's rating to ‘buy' from ‘neutral' while Societe Generale downgraded the company to ‘sell' from ‘hold.'
Networking stocks also saw weakness. Cisco Systems (CSCO 18.70, -0.15), F5 Networks (FFIV 97.33, -3.86), and Juniper Networks (JNPR 17.31, -0.17) all lost between 0.8% and 3.8%. Earlier, Cantor Fitzgerald downgraded Cisco to ‘hold' from ‘buy' with a $19.50 price target.
On the upside, Cree (CREE 28.92, +2.73) settled higher by 10.4% after beating on earnings and reporting in-line revenues. In addition, the company issued in-line earnings and revenue guidance for the second quarter.
In M&A news, ASML Holdings (ASML 50.08, -3.50) will acquire Cymer (CYMI 71.45, +23.62) in a cash-and-stock transaction valued at EUR1.95 billion. The total price reflects a 61.0% premium to Cymer's 30-day volume-weighted average price. Following the report, ASML shed 6.6% while Cymer surged 49.4%.
http://finance.yahoo.com/marketupdate?u
Apollo tumbles 17% on weak results, downgrades (10:33 am ET)
SAN FRANCISCO (MarketWatch) -- Apollo Group Inc. (APOL: news, chart, profile) shares plunged as much as 17% in early trades Wednesday after the for-profit education provider was hit by downgrades from several equities analysts following a weak earnings report. Apollo, citing declining enrollment numbers, announced late Tuesday its fiscal fourth-quarter profit fell 60% from a year ago. It also trimmed its full-year revenue outlook to $3.65 billion to $3.8 billion, less than the $4.07 billion analysts were looking for. The weak results and outlook overshadowed steep cost cuts Apollo is putting in place. Analysts at Credit Suisse, Deutsche Bank Markets Research and BMO Capital Markets were among those who cut their targets on the company. Apollo shares were last trading 17% lower at $22.81, a 52-week low. The stock is down 46% from where it traded a year ago.
Cree shares rise 11% as earnings top forecasts(10:30 am ET)
SAN FRANCISCO (MarketWatch) -- Cree Inc. (CREE: news, chart, profile) shares climbed 11%, to $29.13 Wednesday following the LED lighting company's fiscal first-quarter results. Late Tuesday, Cree reported earnings excluding one-time items of 27 cents a share, on revenue of $315.8 million, up from earnings of 25 cents a share on, $269 million in sales, in the same period a year ago. Wall Street analysts had forecast Cree to earn 26 cents a share on revenue of almost $318 million.
Northern Trust profit climbs by nearly 5%(7:52 am ET)
NEW YORK (MarketWatch) -- Northern Trust Corp. (NTRS: news, chart, profile) said Wednesday its third-quarter profit increased to $178.8 million, or 73 cents a share, from $170.4 million, or 70 cents a share, in the year-ago period. The Chicago-based financial firm's revenue rose to $972.5 million from $971.5 million. Wall Street analysts expected Northern Trust to earn 74 cents a share on revenue of $987.5 million, according to a survey by FactSet. Northern Trust reported 16% growth in client assets under management, but said it faced headwinds from lower interest rates, market activity and volatility. "We continued to adapt to these macroeconomic challenges with effective expense management," the company said.
Halliburton profit falls, sees higher U.S. costs(7:39 am ET)
NEW YORK (MarketWatch) -- Halliburton Co. (HAL: news, chart, profile) said Wednesday its third-quarter profit dropped to $602 million, or 65 cents a share, from $683 million, or 74 cents a share, in the year-ago period. Adjusted profit in the latest quarter totaled 67 cents a share. The oil service firm's revenue rose to $7.11 billion from $6.55 billion. Wall Street analysts expected Halliburton to earn 67 cents a share on revenue of $7.14 billion, according to a survey by FactSet. Halliburton said lower activity and higher costs in the U.S. land market bit into revenue from the second quarter's level of $7.23 billion.
PepsiCo profit falls 5%, but beats estimate(7:24 am ET)
NEW YORK (MarketWatch) -- PepsiCo (PEP: news, chart, profile) said Wednesday its third-quarter profit dipped 5% to $1.9 billion, or $1.21 a share, from $2 billion, or $1.25 a share, in the year-ago period. Adjusted earnings for the soft drink and snacks company totaled $1.20 a share. Revenue moved down by 5% to $16.65 billion. Wall Street analysts expected Pepsi to earn $1.16 a share on revenue of just under $17 billion, according to a survey by FactSet. Pepsi said it's on track to return more than $6 billion to shareholders through dividend payments and share purchases in 2012. It expects $1 billion in productivity savings in 2012.
http://www.marketwatch.com/news/markets/earningswatch.asp
IBM INTC EBAY FFIV CREE ASML CYMI APOL FTNT CHKP NTRS PEP HAL
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