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From Briefing.com: 4:15 pm : The major averages got off to a strong start, but the bullish bias faded shortly after the open. Headlines out of Europe provided another risk-off signal as reports suggested that a Spanish aid request is not imminent. After marking their session highs during the first five minutes of trade, the key indices spent most of the session trending lower. However, a rally in the final hour of trading lifted the S&P 500 and Nasdaq into positive territory while the Dow closed with a small loss of 0.2%.

The health care sector was the day's top performer. Within the space, biotech stocks showed strength which was reflected by the iShares Nasdaq Biotechnology ETF (IBB 145.18, +1.54) adding 1.1%. Looking at individual names, Amgen (AMGN 86.35, +1.27) traded at its all-time high before closing higher by 1.5%. Meanwhile, Gilead (GILD 69.17, +1.73) also marked a fresh all-time best as the shares gained 2.5%.

On the downside, ArQule (ARQL 2.18, -2.81) fell 56.3%. The weakness followed the company's announcement regarding the discontinuation of Phase 3 MARQUEE clinical trial in non-small cell lung cancer after determination that study would not meet its primary endpoint. As a result of the announcement, Needham downgraded ArQule from ‘buy' to ‘hold.'

Telecom stocks also outperformed as buyout speculation lifted one name to its best level since July 2011. MetroPCS (PCS 13.57, +2.05) spiked 17.8% after a Bloomberg TV report suggested the company may be nearing a deal with Deutsche Telecom/T-Mobile. Peer, Leap Wireless (LEAP 7.59, +0.59) surged 8.4% while Sprint (S 4.90, -0.28) slipped 5.4%.

The materials sector was the weakest performer as steel and aluminum producers were under pressure. AK Steel (AKS 4.79, -0.09), Cliffs Natural Resources (CLF 38.55, -0.33), and United States Steel (X 18.99, -0.32) all posted losses between 0.8% and 1.8%.

Elsewhere in the sector, Mosaic (MOS 55.76, -2.25) slid 3.9% after missing on both earnings and revenues. The company's earnings per share were reported $0.15 below consensus estimates, while revenues fell $180 million short of estimates. In its defense, the company cited longer annual maintenance shut-downs and challenges posed by hurricanes, noting demand for products outpaced Mosaic's ability to produce and deliver.

Wassau Paper (WPP 8.67, -0.49) slid 5.4% after lowering its full-year guidance due to lower profitability at its facility in Brainerd, Minnesota. Other paper names were mixed as Neenah Paper (NP 27.91, -0.67) shed 2.3% while Louisiana-Pacific (LPX 13.00, +0.32) gained 2.5%.

The Dow Jones Transportation Average edged up as it outperformed the remaining industrials. Airline stocks enjoyed their second consecutive day of gains as Delta Airlines (DAL 9.77, +0.30) and JetBlue Airways (JBLU 4.98, +0.11) rose by 3.2% and 2.4%, respectively.

Meanwhile, shipping stocks led the transportation complex. Overseas Shipholding Group (OSG 7.08, +0.59) jumped 9.1% after its joint venture with Euronav secured a new charter deal. Peer, Matson (MATX 20.50, +0.34) added 1.7% on related strength.

Financial stocks showed some relative outperformance. Citigroup (C 33.26, +0.51) was the top performer among the majors. The financial giant gained 1.6% after Keefe Bruyette upgraded shares of Citigroup from ‘market perform' to ‘outperform.' Elsewhere in the sector, JPMorgan Chase (JPM 40.92, -0.05) shed 0.1% after New York Attorney General, Eric Schneiderman announced he would file a lawsuit against the bank over mortgage-backed securities sold by Bear Stearns.

In tomorrow's economic data, the MBA Mortgage Index will be reported at 7:00 ET. In addition, the ADP Employment Change and ISM Services will be released at 8:15 ET and 10:00 ET, respectively.DJ30 -32.75 NASDAQ +6.51 SP500 +1.26 NASDAQ Adv/Vol/Dec 1258/1.57 bln/1192 NYSE Adv/Vol/Dec 1589/596.3 mln/1406

3:30 pm : Crude oil oscillated between positive and negative territory despite a weaker dollar. It touched a pit session high of $92.78 per barrel in afternoon action, but slid back into negative territory as it headed into the close. The energy component settled 0.6% lower at $91.89 per barrel, or just above its session low of $91.82 per barrel.

Natural gas climbed into the black after trading as low as $3.40 per MMBtu in early morning pit action. It inched higher for most of its session and settled with a 1.4% gain at $3.53 per MMBtu.

Precious metals struggled in negative territory without much help from the weak dollar. Gold fell off its overnight session high of $1786.60 per ounce and tumbled as low as $1772.30 per ounce in morning pit action. It settled the choppy session at $1775.80 per ounce, or 0.4% lower. Silver also tumbled to a session low of $34.42 per ounce after trading as high as $35.12 per ounce in overnight action. It eventually settled with a 0.8% loss at $34.67 per ounce.DJ30 -53.33 NASDAQ -1.12 SP500 -1.91 NASDAQ Adv/Vol/Dec 1161/1336.2 mln/1282 NYSE Adv/Vol/Dec 1410/414 mln/1551

6:36PM Tellabs beats by $0.01, misses on revs; guides Q4 revs below consensus (stock halted) (TLAB) 3.16 -0.06 : Reports Q3 (Sep) earnings of $0.02 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.01; revenues fell 19.8% year/year to $264.4 mln vs the $276.53 mln consensus. Items excluded: pretax charges of $9.8 million, including $5.4 million in equity-based compensation expense, $3.3 million in restructuring and other charges and $1.1 million in intangible asset amortization.

"Starting in the fourth quarter of 2012 and continuing through the fourth quarter of 2013, Tellabs will restructure the business to lower its cost of goods sold and reduce sales, general and administrative expenses by about $20 million annually. The restructuring will affect about 200 employees. Tellabs expects to take a restructuring charge of about $11 million in the fourth quarter of 2012, consisting principally of severance and related costs."

Co issues downside guidance for Q4, sees Q4 revs of $240-260 mln vs. $289.39 mln Capital IQ Consensus Estimate. Gross margin expected to be 40%, plus or minus a point or two, depending on product mix.

6:11PM Silicon Motion beats by $0.08, beats on revs; guides Q4 revs below consensus (SIMO) 14.65 -0.17 : Reports Q3 (Sep) earnings of $0.54 per share, $0.08 better than the Capital IQ Consensus Estimate of $0.46; revenues rose 22.0% year/year to $77.1 mln vs the $74.49 mln consensus.

Co issues downside guidance for Q4, sees Q4 revs down 3-9% sequentially (~$70.2-74.8 mln) vs. $77.43 mln Capital IQ Consensus Estimate. "Our third quarter sales were stronger than expected principally because of accelerated LTE transceiver orders by Samsung. While originally we were anticipating sequential revenue growth in the fourth quarter, we are now anticipating a slight decrease due to some LTE transceiver sales planned for the fourth quarter having been sold in the third quarter. We are expecting modest growth from our card controllers and similar revenue from our eMMC controllers in the fourth quarter. Based on our fourth quarter revenue guidance, our full year revenue should grow 25 to 27%."

5:35PM Plexus beats by $0.03, misses on revs; guides Q1 EPS below consensus, revs below consensus (PLXS) 28.82 -0.17 : Reports Q4 (Sep) earnings of $0.66 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.63; revenues rose 10.5% year/year to $594.8 mln vs the $603.93 mln consensus. Items excluded: $0.08 per share of stock-based compensation expense and $0.64 for special, non-cash charge related to the valuation allowance for deferred tax assets.

Co issues downside guidance for Q1, sees EPS of $0.50-0.55 vs. $0.65 Capital IQ Consensus Estimate; sees Q1 revs of $550-580 mln vs. $617.01 mln Capital IQ Consensus Estimate. "Looking further ahead, we anticipate that the macro- economic environment will continue to be challenging, making longer-range growth projections exceptionally difficult. Our optimism about longer-term growth is anchored in our strong new wins performance over the past year; that optimism is tempered by our customers' end-market outlook that appears to have deteriorated meaningfully in the past few weeks. With this difficult macro backdrop, we currently anticipate a challenging start to our fiscal year, while we currently expect a better outlook in the second half. We have already initiated certain actions to adjust our cost structure to our near-term lower revenue outlook. We will continue to evaluate other actions to protect our operating performance should the environment degrade further."

4:57PM Ixia announced earlier a $25 mln common stock repurchase program (XXIA) 15.37 : Co announced that its board of directors has authorized the repurchase of up to $25 million of the company's common stock from time to time during the next twelve months on the open market or in privately negotiated transactions.

4:35PM Intersil beats by $0.02, reports revs in-line; guides Q4 EPS below consensus, revs below consensus (ISIL) 6.57 -0.18 : Reports Q3 (Sep) earnings of $0.10 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.08; revenues fell 19.0% year/year to $151.4 mln vs the $152.44 mln consensus.

Co issues downside guidance for Q4, sees EPS of $0.06 vs. $0.09 Capital IQ Consensus Estimate; sees Q4 revs of $138 mln +/- $3 mln vs. $153.28 mln Capital IQ Consensus Estimate. Gross margin is expected to be flat to slightly down

4:35PM MKS Instruments misses by $0.04, misses on revs; guides Q4 EPS below consensus, revs below consensus (MKSI) 23.78 +0.29 : Reports Q3 (Sep) earnings of $0.16 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus Estimate of $0.20; revenues fell 27.3% year/year to $141.5 mln vs the $150.2 mln consensus. Co issues downside guidance for Q4, sees EPS of $(0.07)-0.06, excluding non-recurring items, vs. $0.18 Capital IQ Consensus Estimate; sees Q4 revs of $115-135 mln vs. $148.1 mln Capital IQ Consensus Estimate.

4:33PM TriQuint Semi beats by $0.02, reports revs in-line; guides Q4 EPS below consensus, revs above consensus (TQNT) 5.01 +0.12 : Reports Q3 (Sep) earnings of $0.02 per share, $0.02 better than the Capital IQ Consensus Estimate of ($0.00); revenues fell 7.0% year/year to $200.8 mln vs the $200.35 mln consensus. Co issues mixed guidance for Q4, sees EPS of $0.01-0.03 vs. $0.05 Capital IQ Consensus Estimate; sees Q4 revs of $220-225 mln vs. $219.79 mln Capital IQ Consensus Estimate. "We are expecting ten to twelve percent revenue growth in the fourth quarter with continued strength in each of our major markets but with pressure on gross margins due to planned inventory reductions."

4:31PM Mattson beats by $0.06, beats on revs (MTSN) 0.76 -0.04 : Reports Q3 (Sep) loss of $0.10 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of ($0.16); revenues fell 54.6% year/year to $20.4 mln vs the $17.5 mln consensus.

4:29PM Cadence Design beats by $0.03, beats on revs; guides Q4 EPS in-line, revs in-line; raises FY12 guidance (CDNS) 12.71 +0.29 : Reports Q3 (Sep) adj. earnings of $0.21 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.18; revenues rose 16.1% year/year to $339 mln vs the $330.17 mln consensus. Co issues in-line guidance for Q4, sees EPS of $0.18-0.20, excluding non-recurring items, vs. $0.19 Capital IQ Consensus Estimate; sees Q4 revs of $335-345 mln vs. $336.41 mln Capital IQ Consensus Estimate. Co issues upside guidance for FY12, raises EPS to $0.75-0.77, excluding non-recurring items, from $0.70-0.74 vs. $0.73 Capital IQ Consensus Estimate; raises rev to $1.315-1.325 bln from $1.295-1.315 bln vs. $1.31 bln Capital IQ Consensus Estimate.

4:26PM Cohu misses by $0.04, misses on revs (COHU) 9.15 -0.13 : Reports Q3 (Sep) loss of $0.03 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus Estimate of $0.01; revenues fell 19.6% year/year to $57.7 mln vs the $61.17 mln consensus.

4:09PM F5 Networks misses by $0.06, reports revs in-line; guides Q1 EPS below consensus, revs below consensus (FFIV) 93.32 -2.21 : Reports Q4 (Sep) earnings of $1.12 per share, $0.06 worse than the Capital IQ Consensus Estimate of $1.18; revenues rose 15.2% year/year to $362.5 mln vs the $366.09 mln consensus. Co issues downside guidance for Q1, sees EPS of $1.14-1.16, excluding non-recurring items, vs. $1.20 Capital IQ Consensus Estimate; sees Q1 revs of $363-370 mln vs. $373.68 mln Capital IQ Consensus Estimate.

4:06PM Ixia reports EPS in-line, beats on revs (XXIA) 15.40 +0.00 : Reports Q3 (Sep) earnings of $0.20 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate consensus of $0.20; revenues rose 41.8% year/year to $109.6 mln vs the $107.3 mln consensus.

4:05PM LSI Logic reports EPS in-line, misses on revs; guides Q4 EPS, revs below consensus (LSI) 6.29 -0.16 : Reports Q3 (Sep) earnings of $0.17 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate consensus of $0.17; revenues rose 14.1% year/year to $624 mln vs the $637.86 mln consensus. Co issues downside guidance for Q4, sees EPS of $0.11-0.17, excluding non-recurring items, vs. $0.17 Capital IQ Consensus Estimate; sees Q4 revs of $570-610 mln vs. $649.08 mln Capital IQ Consensus Estimate.

Marvell (MRVL) announced that over 200 mln smartphones have been shipped by global OEMs and Operators featuring Marvell's advanced mobile technologies since 2007.

7:37AM AT&T beats by $0.02, reports revs in-line (T) 35.10 : Reports Q3 (Sep) earnings of $0.62 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.60; revenues fell 0.1% year/year to $31.46 bln vs the $31.53 bln consensus.

Wireless, wireline data and managed IT services represented 81 percent of total revenues and grew 6.4 percent versus the same quarter a year ago, led by: 18.3 percent growth in wireless data revenues, up more than $1 billion versus the year-earlier quarter; 38.3 percent growth in U-verse revenues; 11.4 percent growth in strategic business services revenues.

-- Wireless revenues up 6.6 percent; wireless service revenues up 4.5 percent; Co saw strongest postpaid wireless subscriber ARPU (average monthly revenues per subscriber) growth in six quarters, up 2.4 percent to $65.20; phone-only ARPU up almost 3 percent; Strong smartphone sales of 6.1 million; postpaid smartphone customer base now 44.5 million, up 1.4 million from second quarter 2012

-- 4.7 million iPhones activated; record sales quarter for Android and Windows smartphones; Best-ever third-quarter postpaid churn 678,000 net increase in total wireless subscribers, including gains in every customer category; Wireless operating income margin of 26.2 percent; EBITDA service margin of 40.8 percent with strong smartphone sales.

-- Wireline consumer revenue growth accelerates, up 2.0 percent versus the year-earlier period, strongest growth in more than four years; 7.4 million total AT&T U-verse subscribers (TV and high speed Internet) in service; almost 200,000 net gain in U-verse TV subscribers and 613,000 net gain in high speed Internet subscribers; Total wireline broadband data ARPU up almost 10 percent year over year.

-- Third-quarter 2012 cash from operating activities totaled $11.5 billion, a record for the company, and capital expenditures totaled $4.9 billion.

-- Free cash flow totaled $6.5 billion, also a record for the company. The company now expects free cash flow to be $18 billion or higher this year, up from previous guidance of $15 to $16 billion.

-- Capital expenditures for the year are now expected to come in at the low end of the $19 to $20 billion range while still meeting network build targets. In fact, the company's LTE deployment is ahead of schedule, already covering more than 135 million POPs.

7:32AM Silicon Labs beats by $0.09, beats on revs; guides Q4 revs above consensus (SLAB) 36.11 : Reports Q3 (Sep) earnings of $0.61 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus Estimate of $0.52; revenues rose 25.5% year/year to $149.46 mln vs the $142.67 mln consensus. Co issues upside guidance for Q4, sees Q4 revs of $145-150 mln vs. $142.33 mln Capital IQ Consensus Estimate.

7:21AM Corning beats by $0.02, reports revs in-line (GLW) 13.41 : Reports Q3 (Sep) earnings of $0.34 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.32; revenues fell 1.8% year/year to $2.04 bln vs the $2.02 bln consensus. Corning anticipates price declines in its wholly owned display business and Samsung Corning Precision for Q4 will be slightly higher than the previous two quarters.

The co has the following Q4 expectations:

In Corning's wholly owned display business and Samsung Corning Precision, total glass volume is expected to be consistent to down low-single digit percentage sequentially, depending on the level of normal seasonal inventory correction expected from panel manufacturers. Corning anticipates price declines for the fourth quarter will be slightly higher than the previous two quarters.
Telecommunications segment sales are anticipated to be consistent with third-quarter performance. Normal seasonal declines are expected to be offset by continued demand for optical fiber and cable products in China.
Specialty Materials segment sales are anticipated to be consistent with the record performance of the third quarter. Gorilla Glass sales are expected to remain strong in the fourth quarter.
Environmental Technologies segment sales are expected to be even to down slightly from the previous quarter.
In the Life Sciences segment, Corning forecasts sales to be down about 5% sequentially, driven by normal seasonality.
Corning's tax rate is anticipated to be ~19% in Q4, and for the year in total.
In order to deliver on its plan to grow earnings, co is likely to implement selected cost reductions in the areas of project spending, capital expenditures, and fixed costs, which may include modest headcount reductions. Once the restructuring plan is determined, co anticipates taking a pretax charge of up to $50 mln in Q4.

7:08AM Motorola Solutions beats by $0.11, reports revs in-line; guides Q4 EPS in-line, revs just above consensus (MSI) 49.77 : Reports Q3 (Sep) adj. earnings of $0.84 per share, $0.11 better than the Capital IQ Consensus Estimate of $0.73; revenues rose 3.3% year/year to $2.15 bln vs the $2.15 bln consensus. Co issues guidance for Q4, sees EPS of $0.98-1.03, excluding non-recurring items, vs. $1.01 Capital IQ Consensus Estimate; sees Q4 revs of +6-7% YoY to ~$2.44-2.46 bln vs. $2.42 bln Capital IQ Consensus Estimate. "We had strong revenue and earnings growth, including record performance in our Government segment (+12% YoY)."

7:07AM ATMI beats by $0.07, reports revs in-line (ATMI) 18.05 : Reports Q3 (Sep) earnings of $0.44 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.37; revenues rose 14.5% year/year to $108.8 mln vs the $108.34 mln consensus.

"Consistent with external data points, we anticipate wafer starts to be down seasonally in the fourth quarter, impacting Microelectronics. However, longer term trends remain favorable as customers increase production at advanced nodes. We are investing in a new manufacturing facility in Korea to work more closely with our Asian customers. LifeSciences is on track for a strong finish to the year after the seasonally soft third quarter, with long-term growth driven by the move to high-volume production using single-use technology. Given the macroeconomic uncertainties, we will continue to closely monitor and control our discretionary cost structures in the near term."

6:56AM EMC misses by $0.02, misses on revs; lowers FY12 EPS and rev guidance (EMC) 24.68 : Reports Q3 (Sep) earnings of $0.40 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.42; revenues rose 6.0% year/year to $5.28 bln vs the $5.46 bln consensus. In Q3, revenue from EMC's networked storage platforms portfolio3, which includes EMC's high-end and mid-tier storage platform products, grew 2% year over year. Revenue from EMC's high-end Symmetrix storage product portfolio, which includes the company's VMAX systems family, increased 5% compared with the year-ago quarter. Revenue from the company's portfolio of mid-tier storage products4 was flat year over year. EMC expects to repurchase $700 million of the company's common stock in 2012.

Co issues downside guidance for FY12, lowers EPS to $1.68-1.70, excluding non-recurring items, from $1.70 vs. $1.72 Capital IQ Consensus Estimate; lowers FY12 revs to $21.6-21.75 bln from $22 bln vs. $22.04 bln Capital IQ Consensus Estimate.

Integrated Device Technology (IDTI) announced that its wireless power solutions have been selected by Primax Electronics for its wireless charging accessories.

Facebook (FB $24.62 +5.12) reported third quarter earnings of $0.12 per share, $0.01 better than the Capital IQ consensus of $0.11, while revenues rose 32.3% year/year to $1.26 bln vs the $1.22 bln consensus. Key Metrics: Monthly active users (MAUs) were 1.01 billion as of September 30, 2012, an increase of 26% year-over-year, Daily active users (DAUs) were 584 million on average for September 2012, an increase of 28% year-over-year. Mobile MAUs were 604 million as of September 30, 2012, an increase of 61% year-over-year. Revenue from advertising was $1.09 billion, representing 86% of total revenue and a 36% increase from the same quarter last year. Operating margin -- GAAP operating margin was 30% for the third quarter of 2012, compared to 43% for the third quarter of 2011. Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 42% for the third quarter of 2012, compared to 51% for the third quarter of 2011. Mark Zuckerberg said "People who use our mobile products are more engaged, and we believe we can increase engagement even further as we continue to introduce new products and improve our platform. At the same time, we are deeply integrating monetization into our product teams in order to build a stronger, more valuable company."

Netflix (NFLX $56.31 -11.91) reported third quarter earnings of $0.13 per share, $0.09 better than the Capital IQ consensus of $0.04; revenues rose 10.1% year/year to $905 million versus the the $905.02 million consensus. The company issues in-line guidance for fourth quarter with EPS of $(0.23)-0.04 versus ($0.10) consensus and revenues of $919-943 versus the $943.22 million consensus. Domestic Streaming. Subs Q3 25.10 mln vs Guidance of 24.9-25.7 mln (Net adds 1.16 mln vs Guidance of 1.0-1.8 mln adds) Paid Subs Q3 23.8 mln vs Guidance of 23.5-24.1 mln. Revenue Q3 $556 mln vs Guidance of $552-559

Contribution Profit Q3 $91 mln vs Guidance of $85-95 mln Contribution Margin Q3 16.4% vs Guidance of 16.6% "For Q4, we are targeting 17%, an improvement of 60 basis points quarter over quarter and 600 basis points year over year from 10.9% last Q4." Net additions were at the high end of our guidance range, reflecting stronger than forecasted subscriber growth in each of our international markets.... Latin America: The biggest issue holding back much stronger growth is payments. For a variety of reasons, many Latin American broadband households are leery of, or unable to, provide debit/credit cards that can be accepted over the Internet. It will take longer than we had planned to get to profitability in Latin America, but we are confident that this will be a very large and profitable market for us long term. In Q4, as we launched the Nordics, we expect international contribution losses to increase to approximately $113 million (guidance midpoint) as we will have incremental content and marketing expenses but minimal revenue yet from this market. We intend this (Q4) to be our peak quarter of international losses, and expect international losses will decline quarter by quarter next year. Once we've substantially reduced international losses, and with Netflix then being solidly profitable on a global basis, we will launch our next round of international expansion.

Juniper Networks (JNPR $17.60 +0.03) reported third quarter earnings of $0.22 per share, $0.05 better than the Capital IQ consensus of $0.17, while revenues rose 1.1% year/year to $1.12 billion versus the $1.07 bln consensus. The company issued downside guidance for the fourth quarter with EPS of $0.19-0.22 versus the $0.24 consensus and revenues of 1.10-1.13 billion versus $1.15 billion consensus.

Motorola Solutions (MSI $50.07 +0.27) reported third quarter adjusted earnings of $0.84 per share, $0.11 better than the consensus of $0.73, while revenues rose 3.3% year/year to $2.15 billion versus the $2.15 bln consensus. The company issued guidance for fourth quarter with EPS of $0.98-1.03, excluding non-recurring items, versus the $1.01 consensus and revenues of +6-7% YoY to approximately $2.44-2.46 billion versus $2.42 billion consensus. "We had strong revenue and earnings growth, including record performance in our Government segment (+12% YoY)."

Dice Holdings (DHX $8.04 -0.22) reported third quarter earnings of $0.17 per share, $0.05 better than the Capital IQ consensus of $0.12, while revenues rose 2.6% year/year to $48 million versus the $46.97 mln consensus. The company issued upside guidance for fourth quarter with revenues of approximately $51.4 million versus the $49.38 million consensus. Co issues upside guidance for fiscal year 2012 with revenues of approximately $194 million versus the $190.70 million consensus.

08:54 am NetFlix shares fall 16% following disappointing earnings and metrics
Netflix (NFLX $57.00 -11.22) reported third quarter earnings of $0.13 per share, $0.09 better than the Capital IQ consensus of $0.04; revenues rose 10.1% year/year to $905 million versus the the $905.02 million consensus. The company issues in-line guidance for fourth quarter with EPS of $(0.23)-0.04 versus ($0.10) consensus and revenues of $919-943 versus the $943.22 million consensus. Domestic Streaming. Subs Q3 25.10 mln vs Guidance of 24.9-25.7 mln (Net adds 1.16 mln vs Guidance of 1.0-1.8 mln adds) Paid Subs Q3 23.8 mln vs Guidance of 23.5-24.1 mln. Revenue Q3 $556 mln vs Guidance of $552-559 mln Contribution Profit Q3 $91 million versus.

Guidance of $85-95 mln Contribution Margin Q3 16.4% vs Guidance of 16.6% "For Q4, we are targeting 17%, an improvement of 60 basis points quarter over quarter and 600 basis points year over year from 10.9% last Q4." Net additions were at the high end of our guidance range, reflecting stronger than forecasted subscriber growth in each of our international markets.... Latin America: The biggest issue holding back much stronger growth is payments. For a variety of reasons, many Latin American broadband households are leery of, or unable to, provide debit/credit cards that can be accepted over the Internet. It will take longer than we had planned to get to profitability in Latin America, but we are confident that this will be a very large and profitable market for us long term. In Q4, as we launched the Nordics, we expect international contribution losses to increase to approximately $113 million (guidance midpoint) as we will have incremental content and marketing expenses but minimal revenue yet from this market. We intend this (Q4) to be our peak quarter of international losses, and expect international losses will decline quarter by quarter next year. Once we've substantially reduced international losses, and with Netflix then being solidly profitable on a global basis, we will launch our next round of international expansion.

08:51 am Facebook shares soar 25% as earnings are liked by investors

Facebook (FB $24.28 +4.74) reported third quarter earnings of $0.12 per share, $0.01 better than the Capital IQ consensus of $0.11, while revenues rose 32.3% year/year to $1.26 bln vs the $1.22 bln consensus. Key Metrics: Monthly active users (MAUs) were 1.01 billion as of September 30, 2012, an increase of 26% year-over-year, Daily active users (DAUs) were 584 million on average for September 2012, an increase of 28% year-over-year. Mobile MAUs were 604 million as of September 30, 2012, an increase of 61% year-over-year. Revenue from advertising was $1.09 billion, representing 86% of total revenue and a 36% increase from the same quarter last year.

Operating margin -- GAAP operating margin was 30% for the third quarter of 2012, compared to 43% for the third quarter of 2011. Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 42% for the third quarter of 2012, compared to 51% for the third quarter of 2011. Mark Zuckerberg said "People who use our mobile products are more engaged, and we believe we can increase engagement even further as we continue to introduce new products and improve our platform. At the same time, we are deeply integrating monetization into our product teams in order to build a stronger, more valuable company."