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Thursday, July 25, 2013 10:17:03 PM
From Briefing.com: 4:15 pm : Equities began the session in mixed fashion before an afternoon rally helped lift the S&P 500 into the green. The benchmark index added 0.3% while the Nasdaq outperformed with a gain of 0.7%.
The tech-heavy Nasdaq displayed strength throughout the session after Biogen (BIIB 227.48, +0.87), Facebook (FB 34.36, +7.85), and Qualcomm (QCOM 63.42, +2.03) reported solid quarterly results. The relative strength of Biogen helped the health care sector finish among the leaders, but the outperformance of Facebook and Qualcomm had a limited effect on the technology sector, which ended little changed.
Chipmakers were able to shake off their early losses during afternoon action. The PHLX Semiconductor Index advanced 0.6%.
The afternoon rally was fueled by gains in energy, materials, and utilities. The energy sector climbed 0.5% after displaying weakness yesterday. Meanwhile, crude oil added 0.3% to $105.68 per barrel.
Elsewhere, the materials sector rose 0.9% amid broad strength. Dow Chemical (DOW 34.99, +0.62) settled higher by 1.8% after beating on earnings.
Also of note, the utilities space gained 0.9% after finishing yesterday's session at the bottom of the leaderboard.
While the Nasdaq spent the entire day in the green, the S&P's gains were limited by the underperformance of influential discretionary and industrial sectors.
Discretionary shares ended near their highs, but home builders registered losses across the board. During its earnings conference call, DR Horton's (DHI 19.38, -1.82) Chief Executive Officer commented on the recent run up in rates, saying traffic count has slowed since mortgage rates began to rise. In addition, cancellations rose to 24.0% of all orders from 19.0% reported in the prior period. DR Horton fell 8.6% while the broader iShares Dow Jones US Home Construction ETF (ITB 21.82, -0.73) dropped 3.2%.
The industrial sector was the lone decliner as transportation-related names weighed. The Dow Jones Transportation Average shed 0.1% after being down as much as 1.3% intraday. Alaska Air (ALK 60.37, -0.79) and United Continental (UAL 34.30, -0.67) registered respective losses of 1.3% and 1.9% after reporting earnings. United Continental topped its earnings estimates while Alaska Air reported a bottom-line miss on in-line revenue.
Today's economic data was limited to weekly initial claims and June durable orders.
The initial claims level increased to 343,000 for the week ending July 20 from an upwardly revised 336,000 (from 334,000) for the week ending July 13. The Briefing.com consensus expected the initial claims level to increase to 340,000. Over the past few weeks, the Department of Labor has acknowledged that its seasonal adjustments are failing to correct for layoffs in the auto and education sectors. This has caused unusual volatility in the headline claims level.
Separately, durable goods orders rose 4.2% in June after increasing an upwardly revised 5.2% (from 3.7%) in May. The Briefing.com consensus expected orders to increase 1.8%. The durables report serves as a perfect example of a strong headline number masking significant weakness that is taking effect across almost every sector.
As expected from Boeing's (BA 106.70, -0.25) orders report, transportation orders were strong in June. Orders rose 12.8% as defense and nondefense aircraft orders increased 29.2%. Outside of transportation, however, nearly every durables sector fell in June. Only machinery (+2.4%) and fabricated metals products (+0.1%) showed positive growth.
That left durable goods orders excluding transportation flat for the month after increasing 1.0% in May. The consensus expected these orders to increase 0.3%.
Tomorrow, the final Michigan Consumer Sentiment Survey for July will be released at 9:55 ET. On the earnings front, Aon (AON 67.55, +0.67), LyondellBasell (LYB 68.05, +0.63), and Wipro (WIT 8.24, +0.07) will report their quarterly results before the opening bell.DJ30 +13.37 NASDAQ +25.59 SP500 +4.31 NASDAQ Adv/Vol/Dec 1653/2.03 bln/843 NYSE Adv/Vol/Dec 1723/680.6 mln/1307
3:30 pm :
Sep crude oil fell to a session low of $104.08 per barrel in early morning floor trade. However, buyers stepped in and pushed prices up, thus erasing earlier losses. The energy component climbed to a session high of $105.87 per barrel and settled with a 5 cent gain at $105.49 per barrel
Aug natural gas spiked to a session high of $3.76 per MMBtu as inventory data showed a build of 41 bcf when a build of 45-46 bcf was anticipated. However, it quickly slid into the red where it spent the remainder of pit trade. It brushed a session low of $3.64 per MMBtu and settled at $3.65 per MMBtu,or 1.1% lower
Precious metals rose for the first time in three sessions as they got a boost from a weaker dollar index. Aug gold rose from a session low of $1317.60 per ounce and touched a session high of $1331.90 per ounce. It settled at $1328.70 per ounce, booking a gain of 0.7%
Sep silver advanced to a session high of $20.20 per ounce and eventually closed with a 0.7% gain at $20.16 per ounce
7:17PM Lattice Semi correction: Co beats by $0.01, beats on revs; guides Q3 revs in-line (LSCC) 5.03 0.00 : Earlier we compared a GAAP result to a non-GAAP estimate and said the company missed by $0.02 when, in fact, the company beat by $0.01. See corrected info below:
Reports Q2 (Jun) earnings of $0.04 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.03; revenues rose 19.6% year/year to $84.7 mln vs the $83.6 mln consensus.
Co issues in-line guidance for Q3, sees Q3 revs +/-2% sequentially, which equates to $83.0-86.4 mln vs. $83.60 mln Capital IQ Consensus Estimate.
Gross margin percentage is expected to be approximately 52% plus or minus 2%.
Total operating expenses are expected to be approximately $36.9 million, including approximately $0.8 million of expenses associated with our Q3 San Jose office move.
4:38PM Multi-Fineline lowers Q3 rev guidance; guides Q4 rev in-line (MFLX) 16.96 +0.27 : Co issues downside guidance for Q3 (Jun), lowers Q3 (Jun) rev to ~$136 mln from $155-185 mln vs. $171.83 mln Capital IQ Consensus Estimate. As a result of the lower revenues, gross margin during the third quarter of fiscal 2013 is expected to be ~(3.1) percent, compared to the Company's guidance of approximately breakeven. The Company expects to report cash and cash equivalents of $114.1 million, or $4.76 per diluted share, and $73.6 million in inventory.
Co issues guidance for Q4 (Sep), sees Q4 (Sep) revs of $195-215 mln vs. $211.93 mln Capital IQ Consensus Estimate and gross margin to range between 1 to 3 percent based on production build plans, projected sales volume and anticipated product mix.
4:22PM Microsemi beats by $0.02, reports revs in-line; guides Q4 EPS in-line, revs in-line (MSCC) 23.93 +0.39 : Reports Q3 (Jun) earnings of $0.49 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.47; revenues fell 6.4% year/year to $242.6 mln vs the $242.35 mln consensus.
GAAP gross margin was 57.0 percent, improving 30 basis points sequentially and 120 basis points over the prior year quarter. Book-to-bill was greater than 1.1, and operating cash flow was $52.6 mln.
Guidance: Co issues in-line guidance for Q4, sees EPS of $0.51-$0.55 vs. $0.52 Capital IQ Consensus Estimate; sees Q4 revs growing 2-4% sequentially, which equates to approximately $247.5-$252.3 mln vs. $251.00 mln Capital IQ Consensus Estimate.
4:00PM Microsemi awarded its largest USG contract to develop high-performance integrated circuits; co currently expects the initial award of $75 mln will contribute to revenues over the next two years (MSCC) 23.93 +0.39 :
4:17PM KLA-Tencor beats by $0.03, beats on revs (KLAC) 59.79 : Reports Q4 (Jun) earnings of $0.82 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.79; revenues fell 19.3% year/year to $720 mln vs the $705.21 mln consensus.
4:17PM QLogic beats by $0.04, reports revs in-line (QLGC) : Reports Q1 (Jun) earnings of $0.18 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.14; revenues fell 13.3% year/year to $113.1 mln vs the $113.66 mln consensus.
4:11PM Freescale Semi beats by $0.02, beats on revs; guides Q3 revs in-line (FSL) 16.30 +0.42 : Reports Q2 (Jun) earnings of $0.09 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.07; revenues rose 0.9% year/year to $1.04 bln vs the $1.02 bln consensus. Co issues in-line guidance for Q3, sees Q3 revs of $1.05-1.09 bln vs. $1.05 bln Capital IQ Consensus Estimate.
4:08PM Flextronics beats by $0.04, beats on revs; guides Q2 EPS in-line, revs in-line (FLEX) 8.14 +0.01 : Reports Q1 (Jun) adjusted earnings of $0.18 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.14; revenues fell 3.1% year/year to $5.79 bln vs the $5.48 bln consensus.
Guidance: Co issues in-line guidance for Q2, sees adjusted EPS of $0.19-$0.22 vs. $0.21 Capital IQ Consensus Estimate; sees Q2 revs of $6.1-$6.4 bln vs. $6.13 bln Capital IQ Consensus Estimate.
Share Repurchase Plan: The company recently completed its prior share repurchase plan. In addition, the Board has authorized, subject to shareholder approval at the Extraordinary General Meeting on July 29, 2013, a new share repurchase plan. Repurchases under the company's share repurchase plans are subject to an aggregate limit under Singapore law of 10% of the Company's outstanding ordinary shares as of the date of the Company's Extraordinary General Meeting. This new authorization would permit, subject to shareholder approval, the repurchase of ordinary shares up to the current maximum under the 10% limitation. Share repurchases, if any, will be made in the open market. The timing and actual number of shares repurchased will depend on a variety of factors including price, market conditions and applicable legal requirements
4:05PM Maxim Integrated misses by $0.03, misses on revs; guides Q1 EPS below consensus, revs below consensus; Authorizes new $1.0 bln share repurchase program, Quarterly dividend increased 8% to $0.26/share (MXIM) 27.42 +0.26 : Reports Q4 (Jun) earnings of $0.44 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus Estimate of $0.47; revenues rose 0.5% year/year to $608.2 mln vs the $625.78 mln consensus.
Co issues downside guidance for Q1, sees EPS of $0.37-0.41, excluding non-recurring items, vs. $0.50 Capital IQ Consensus Estimate; sees Q1 revs of $570-600 mln vs. $653.60 mln Capital IQ Consensus Estimate.
4:05PM Integrated Device beats by $0.01, beats on revs (IDTI) 8.99 +0.12 : Reports Q1 (Jun) earnings of $0.05 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.04; revenues fell 9.4% year/year to $117.98 mln vs the $115.84 mln consensus.
4:03PM Cirrus Logic beats by $0.06, misses on revs; guides Q2 revs in-line (CRUS) 20.32 +0.91 : Reports Q1 (Jun) earnings of $0.56 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $0.50; revenues rose 56.6% year/year to $155 mln vs the $160.43 mln consensus.
Co issues in-line guidance for Q2, sees Q2 revs of $170-190 mln vs. $183.01 mln Capital IQ Consensus Estimate.
Co reported Q1 Gross margin of 51.2 percent.
Co sees Q2 Gross margin between 46 percent and 48 percent.
"During the quarter, we added new customers in portable audio and expanded into more SKUs in LED lighting. We are especially excited about the lineup of custom and general market products we currently have in development."
Large Cap Gainers
FB (32.93 +24.21%): Beat on EPS by $0.05, beat on revs; tgt raised to $40 from $35 at Cantor Fitzgerald; tgt raised to $37 from $33 at Needham; upgraded to Mkt Outperform at JMP Securities; upgraded to Overweight from Equal Weight at Evercore; upgraded to Neutral at BTIG Research; tgt raised to $40 at Cantor Fitzgerald; tgt to $46 from $40 at Goldman.
BSX (10.68 +11.13%): Beat on EPS by $0.01, beat on revs; guided Q3 revs in-line; guided FY13 revs in-line; received FDA 510(k) clearance for the Rhythmia Mapping System.
BIDU (124.5 +9.82%): Beat on EPS by $0.01, beat on revs; guided Q3 revs above consensus; upgraded to Buy from Underperform at Credit Agricole; heard upgraded to Overweight from Equal Weight at Barclays; tgt raised to $95 from $75 at Maxim.
Large Cap Losers
WDC (63.34 -6.2%): Beat on EPS by $0.15, beat on revs; guided Q1 revs to $3.7-3.8 bln vs $3.76 bln Capital IQ Consensus Estimate; guided non-GAAP Q1 EPS to $1.95-2.05 vs $2.03 Capital IQ Consensus Estimate; downgraded to Sell at Craig Hallum; target raised to $77 at Stifel.
CAM (59.94 -5.71%): Beat on EPS by $0.01, missed on revs; guided Q3 EPS below consensus; guided FY13 EPS below consensus.
SI (104.22 -5.41%): Lowered margin expectations; reports out related to potential blade breakage costs.
Mid Cap Gainers
OKE (49.86 +16.41%): Announced plan to separate its natural gas distribution business into a new publicly traded company to be called One Gas; increased quarterly dividend by 6% to $0.38 per share from $0.36 per share.
TRIP (69.54 +13.74%): Beat on EPS by $0.03, beat on revs; target raised to $80 at Monness Crespi & Hardt; heard positive comments at Pacific Crest citing TRIP comments on pay-per-book offerings; target raised to $65 at RBC Capital Mkts.
CSGP (147.92 +10.41%): Beat on EPS by $0.09, beat on revs; guided Q3 EPS above consensus, revs above consensus; raised FY13 EPS above consensus, revs above consensus.
Mid Cap Losers
PHM (16.72 -9.38%): Missed on EPS by $0.03, missed on revs; declared $0.05 quarterly dividend; increased share repurchase authorization to $352 mln from $250 mln; heard defended at UBS.
TKR (55.42 -7.54%): Missed on EPS by $0.04, missed on revs; guided FY13 EPS below consensus, revs below consensus.
DHI (19.82 -6.51%): Beat on EPS by $0.09, missed on revs.
10:40AM TriQuint Semi (+16%) trades to near 2 year high after beat and raise last night (TQNT) 7.84 +1.05 :
10:39AM Applied Micro (+19%) trades to near 7 year high after beating Q1 EPS last night (AMCC) 12.64 +2.03 :
9:03AM Interdigital Comm beats by $0.07, reports revs in-line (IDCC) 38.71 : Reports Q2 (Jun) earnings of $0.22 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.15; revenues fell 5.8% year/year to $67.7 mln vs the $68.18 mln consensus.
The majority of the fixed-fee amortized royalty revenue decrease was due to the expiration of the 3G portion of our patent license agreement with Samsung at the end of 2012, which was partially offset by the addition of fixed-fee amortized royalty revenue from the Sony patent license agreement signed in fourth quarter 2012. Per-unit royalty revenue decreased $1.3 mln due to lower shipments from our Japanese per-unit licensees and one of our licensees with concentrations in the smartphone market.
Axcelis Technologies (ACLS) received an order for its Optima HDx high current implanter from one of the world's leading foundries.
8:10AM KEMET misses by $0.16, misses on revs (KEM) 4.69 : Reports Q1 (Jun) loss of $0.38 per share, excluding non-recurring items, $0.16 worse than the Capital IQ Consensus Estimate of ($0.22); revenues fell 9.3% year/year to $202.7 mln vs the $205.4 mln consensus.
Co says revenue was right on forecast and indicators point to a slight increase in Q2 (Sep), CapIQ consensus for Q2 is $211.4 mln. "This quarter saw the full impact on our financial results of the raw material supply chain disruption that occurred in our last quarter. However, we have corrections underway and this area is under our control....I expect to see good improvement in our operating margins this next quarter as we get our Tantalum raw material supply back on track and our European business rolls into its final stage of reorganizing into low-cost countries. A little assistance from an improving economy would be appreciated, but we expect a significant positive change to our financial results this fiscal year even with the economy just moving sideways."
8:08AM Silicon Labs reports EPS in-line, misses on revs; guides Q3 revs below consensus (SLAB) 44.65 : Reports Q2 (Jun) earnings of $0.50 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate consensus of $0.50; revenues rose 4.3% year/year to $141.5 mln vs the $143.61 mln consensus. Co issues downside guidance for Q3, sees Q3 revs of $144-149 mln vs. $152.21 mln Capital IQ Consensus Estimate.
8:04AM Ixys misses by $0.07, reports revs in-line (IXYS) 11.94 : Reports Q1 (Jun) earnings of $0.06 per share, $0.07 worse than the Capital IQ Consensus Estimate of $0.13; revenues fell 12.0% year/year to $71.2 mln vs the $70.81 mln consensus.
"We see signs of muted recovery in global markets, led by resumption of spending trends in the U.S. and select European countries. Optimism in the marketplace inevitably leads to customer confidence, as evidenced by our recent two quarters of sales growth. If markets continue to follow this trend, we can expect revenues for the September 2013 quarter to be 10% to 12% higher than those of the June 2013 quarter,"
F5 Networks (FFIV 88.25, +6.83) is +8.4% after beating on earnings and revenue.
Qualcomm (QCOM 62.99, +1.60) is +2.6% after reporting in-line earnings on better-than-expected revenue.
Western Digital (WDC 64.20, -3.33) is -4.9% after the company's cautious first quarter guidance overshadowed its earnings and revenue beat.
Xilinx (XLNX) announced that its 7 Series GTH transceiver successfully completed testing for 10GBASE-KR LogiCORE IP at the University of New Hampshire InterOperability Laboratory, validating that it fully meets UNH-IOL's receiver and transmitter electrical and protocol compliance tests for backplane applications.
7:04AM Benchmark Elec beats by $0.04, beats on revs; guides Q3 EPS in-line, revs above consensus (BHE) 21.54 : Reports Q2 (Jun) earnings of $0.31 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.27; revenues fell 3.6% year/year to $607.52 mln vs the $573.39 mln consensus. Co issues guidance for Q3, sees EPS of $0.28-0.32, excluding non-recurring items, vs. $0.29 Capital IQ Consensus Estimate; sees Q3 revs of $590-620 mln vs. $582.34 mln Capital IQ Consensus Estimate.
10:58 am Labor Market Conditions Remain Steady Amid Volatile Initial Claims Data
The initial claims level increased to 343,000 for the week ending July 20 from an upwardly revised 336,000 (from 334,000) for the week ending July 13. The Briefing.com consensus expected the initial claims level to increase to 340,000.Over the past few weeks, the DOL has acknowledged that its seasonal adjustments are failing to correct for layoffs in the auto and education sectors. This has caused unusual volatility in the headline initial claims level.Smoothing out the data, however, reveals steady labor market conditions that are primed for payroll growth in the neighborhood of 175,000 -- 200,000 jobs each month.The continuing claims level fell from 3.116 mln for the week ending July 6 to 2.997 mln for the week ending July 13. The consensus expected the continuing claims level to fall to 2.993 mln.
10:58 am Strong Demand for Aircraft Masks an Otherwise Disappointing Durables Report
Durable goods orders rose 4.2% in June after increasing an upwardly revised 5.2% (from 3.7%) in May. The Briefing.com consensus expected orders to increase 1.8%.The durables reports is a perfect example where a strong headline number can mask significant weakness that is taking effect across almost every sector.As expected from Boeing's (BA) orders report, transportation orders were strong in June. Orders rose 12.8% as defense and nondefense aircraft orders increased 29.2%.Outside of transportation, however, nearly every durables sector fell in June. Only machinery (+2.4%) and fabricated metals products (+0.1%) showed positive growth.That left durable goods orders excluding transportation flat for the month after increasing 1.0% in May. The consensus expected these orders to increase 0.3%.Business investment demand remained on a positive track due to the strong gain in machinery orders. Orders of nondefense capital goods excluding aircraft rose 0.7% in June after increasing 2.2% in May. Unfortunately, that gain will likely not translate into stronger second quarter GDP numbers. Shipments of these goods, which factor into GDP, fell 0.9% after increasing 1.9% in May.There is some hope for stronger-than-expected growth in Q3 2013. The level of unfilled orders of nondefense capital goods excluding aircraft rose 1.7% in June after increasing 1.2% in May. Unless firms see sizable cancelations over the next few months, that should give producers ample space to ramp up production.
08:53 am Sequenom shares plunge 36% following miss on earnings
Sequenom (SQNM $2.98 -1.72) reported a second quarter loss of $0.27 per share, which missed expectations, while revenues rose 91.0% year/year to $34.85 million which also missed expectations. "Along with many other companies in the diagnostics industry, Sequenom CMM experienced delays in receipt of payments as a result of molecular diagnostics coding changes adopted by CMS, Medicaid and third party payors. These changes include the elimination and replacement of certain molecular diagnostics billing codes.
Several payors are requesting additional information to process claims for services, and certain payors, including most state Medicaid plans, have not implemented the new codes, or in some cases are no longer providing coverage for certain tests. In addition to the impact of these coding changes, Sequenom CMM transitioned from an out-sourced billing provider to an in-house billing system during the quarter, and lower than expected collections by the external billing provider also contributed to the decline in diagnostic revenues."
08:51 am Visa shares rise 2% following better than expected earnings
Visa (V $190.50 +3.75) reported third quarter earnings of $1.88 per share, which was ahead of estimates, while revenues rose 17.0% year/year to $3 billion which was also ahead of expectations. Payments volume growth, on a constant dollar basis, for the three months ended March 31, 2013, on which fiscal third quarter service revenue is recognized, was 9% over the prior year at $1.0 trillion. Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2013, was 13% over the prior year at $1.1 trillion. Cross-border volume growth, on a constant dollar basis, was 11% for the three months ended June 30, 2013.
Total processed transactions, which represent transactions processed by VisaNet, for the three months ended June 30, 2013, were 15.0 billion, a 14% increase over the prior year. The company raised fiscal year 2013 EPS to lows 20s % growth from ~20, net rev growth to ~13% from low double digits. The company affirmed fiscal year 2014 financial outlook: Annual net revenue growth: Low double digits; Adjusted annual diluted class A common stock earnings per share growth: Mid to high teens; and Annual free cash flow: About $5 billion. In addition, the Board of Directors has authorized a new $1.5 billion class A share repurchase program. The authorization will be in place through July 2014, and is subject to further changes at the discretion of the Board.
08:50 am Facebook shares soar 26% as the market likes its earnings beat and mobile metrics
Facebook (FB $33.59 +7.07) reported second quarter earnings of $0.19 per share, which was better than expected, while revenues rose 53.1% year/year to $1.81 billion which was ahead of expectations.
Key Metrics:
Daily active users (DAUs) were 699 million on average for June 2013, an increase of 27% year-over-year.
Monthly active users (MAUs) were 1.15 billion as of June 30, 2013, an increase of 21% year-over-year.
Mobile MAUs were 819 million as of June 30, 2013, an increase of 51% year-over-year. Mobile DAUs were 469 million on average for June 2013.
Mobile advertising revenue represented ~41% of advertising revenue for the second quarter of 2013 versus expectations of ~32.5%.
GAAP operating margin was 31% for the second quarter of 2013, compared to negative 63% in the second quarter of 2012.
Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 44% for the second quarter of 2013, compared to 43% for the second quarter of 2012.
08:48 am Bidu shares soar 17% following beat on earnings
Baidu.com (BIDU $133.02 +19.65) reported second quarter earnings of $1.22 per share, which was better than expected, while revenues rose 43.6% year/year to $1.23 billion which also topped expectations. The company issued guidance for the third quarter with revenues of $1.422-1.460 billion which is ahead of expectations. Online marketing revenues for the second quarter of 2013 were RMB7.539 billion ($1.228 billion), representing a 38.3% increase from the corresponding period in 2012. Baidu had about 468,000 active online marketing customers in the second quarter of 2013, representing a 33.0% increase from the corresponding period in 2012 and a 14.1% increase from the first quarter of 2013.
Revenue per online marketing customer for the second quarter was approximately RMB16,100 ($2,623), a 3.9% increase from the corresponding period in 2012 and an 11.0% increase compared to the first quarter of 2013. Traffic acquisition cost (TAC) as a component of cost of revenues was RMB880.0 million ($143.4 million), representing 11.6% of total revenues, as compared to 8.3% in the corresponding period in 2012 and 10.2% in the first quarter of 2013. The increase mainly reflected increased contextual ads contributions and hao123 promotions through our network. Bandwidth costs as a component of cost of revenues were RMB457.3 million ($74.5 million), representing 6.0% of total revenues, compared to 4.4% in the corresponding period in 2012.
Depreciation costs as a component of cost of revenues were RMB357.0 million ($58.2 million), representing 4.7% of total revenues, compared to 4.5% in the corresponding period in 2012. The increase was mainly due to an increase in network infrastructure capacity. Content costs as a component of cost of revenues were RMB150.7 million ($24.5 million), representing 2.0% of total revenues, compared to 0.6% in the corresponding period in 2012, and 1.6% in the previous quarter. The year-over-year increase was mainly due to the inclusion of iQiyi's content costs.
08:46 am Qualcomm shares rise 4% following beat on revenues
Qualcomm (QCOM $61.39 ) reported third quarter earnings of $1.03 per share, which is in line with expectations, while revenues rose 35.0% year/year to $6.24 billion which was also ahead of estimates. The company issued guidance for the fourth quarter with adjusted EPS of $1.02-1.10 which is in line with expectations with revenues of $5.9-6.6 billion which is also in line with expectations.
Q3 Key Business Metrics MSM chip shipments: 172 million units, up 22 percent y-o-y and down 1 percent sequentially. March quarter total reported device sales: ~$56.5 billion, up 18 percent y-o-y and down 8 percent sequentially. March quarter estimated 3G/4G device shipments: ~244 to 248 million units, at an estimated average selling price of approximately $227 to $233 per unit.
The tech-heavy Nasdaq displayed strength throughout the session after Biogen (BIIB 227.48, +0.87), Facebook (FB 34.36, +7.85), and Qualcomm (QCOM 63.42, +2.03) reported solid quarterly results. The relative strength of Biogen helped the health care sector finish among the leaders, but the outperformance of Facebook and Qualcomm had a limited effect on the technology sector, which ended little changed.
Chipmakers were able to shake off their early losses during afternoon action. The PHLX Semiconductor Index advanced 0.6%.
The afternoon rally was fueled by gains in energy, materials, and utilities. The energy sector climbed 0.5% after displaying weakness yesterday. Meanwhile, crude oil added 0.3% to $105.68 per barrel.
Elsewhere, the materials sector rose 0.9% amid broad strength. Dow Chemical (DOW 34.99, +0.62) settled higher by 1.8% after beating on earnings.
Also of note, the utilities space gained 0.9% after finishing yesterday's session at the bottom of the leaderboard.
While the Nasdaq spent the entire day in the green, the S&P's gains were limited by the underperformance of influential discretionary and industrial sectors.
Discretionary shares ended near their highs, but home builders registered losses across the board. During its earnings conference call, DR Horton's (DHI 19.38, -1.82) Chief Executive Officer commented on the recent run up in rates, saying traffic count has slowed since mortgage rates began to rise. In addition, cancellations rose to 24.0% of all orders from 19.0% reported in the prior period. DR Horton fell 8.6% while the broader iShares Dow Jones US Home Construction ETF (ITB 21.82, -0.73) dropped 3.2%.
The industrial sector was the lone decliner as transportation-related names weighed. The Dow Jones Transportation Average shed 0.1% after being down as much as 1.3% intraday. Alaska Air (ALK 60.37, -0.79) and United Continental (UAL 34.30, -0.67) registered respective losses of 1.3% and 1.9% after reporting earnings. United Continental topped its earnings estimates while Alaska Air reported a bottom-line miss on in-line revenue.
Today's economic data was limited to weekly initial claims and June durable orders.
The initial claims level increased to 343,000 for the week ending July 20 from an upwardly revised 336,000 (from 334,000) for the week ending July 13. The Briefing.com consensus expected the initial claims level to increase to 340,000. Over the past few weeks, the Department of Labor has acknowledged that its seasonal adjustments are failing to correct for layoffs in the auto and education sectors. This has caused unusual volatility in the headline claims level.
Separately, durable goods orders rose 4.2% in June after increasing an upwardly revised 5.2% (from 3.7%) in May. The Briefing.com consensus expected orders to increase 1.8%. The durables report serves as a perfect example of a strong headline number masking significant weakness that is taking effect across almost every sector.
As expected from Boeing's (BA 106.70, -0.25) orders report, transportation orders were strong in June. Orders rose 12.8% as defense and nondefense aircraft orders increased 29.2%. Outside of transportation, however, nearly every durables sector fell in June. Only machinery (+2.4%) and fabricated metals products (+0.1%) showed positive growth.
That left durable goods orders excluding transportation flat for the month after increasing 1.0% in May. The consensus expected these orders to increase 0.3%.
Tomorrow, the final Michigan Consumer Sentiment Survey for July will be released at 9:55 ET. On the earnings front, Aon (AON 67.55, +0.67), LyondellBasell (LYB 68.05, +0.63), and Wipro (WIT 8.24, +0.07) will report their quarterly results before the opening bell.DJ30 +13.37 NASDAQ +25.59 SP500 +4.31 NASDAQ Adv/Vol/Dec 1653/2.03 bln/843 NYSE Adv/Vol/Dec 1723/680.6 mln/1307
3:30 pm :
Sep crude oil fell to a session low of $104.08 per barrel in early morning floor trade. However, buyers stepped in and pushed prices up, thus erasing earlier losses. The energy component climbed to a session high of $105.87 per barrel and settled with a 5 cent gain at $105.49 per barrel
Aug natural gas spiked to a session high of $3.76 per MMBtu as inventory data showed a build of 41 bcf when a build of 45-46 bcf was anticipated. However, it quickly slid into the red where it spent the remainder of pit trade. It brushed a session low of $3.64 per MMBtu and settled at $3.65 per MMBtu,or 1.1% lower
Precious metals rose for the first time in three sessions as they got a boost from a weaker dollar index. Aug gold rose from a session low of $1317.60 per ounce and touched a session high of $1331.90 per ounce. It settled at $1328.70 per ounce, booking a gain of 0.7%
Sep silver advanced to a session high of $20.20 per ounce and eventually closed with a 0.7% gain at $20.16 per ounce
7:17PM Lattice Semi correction: Co beats by $0.01, beats on revs; guides Q3 revs in-line (LSCC) 5.03 0.00 : Earlier we compared a GAAP result to a non-GAAP estimate and said the company missed by $0.02 when, in fact, the company beat by $0.01. See corrected info below:
Reports Q2 (Jun) earnings of $0.04 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.03; revenues rose 19.6% year/year to $84.7 mln vs the $83.6 mln consensus.
Co issues in-line guidance for Q3, sees Q3 revs +/-2% sequentially, which equates to $83.0-86.4 mln vs. $83.60 mln Capital IQ Consensus Estimate.
Gross margin percentage is expected to be approximately 52% plus or minus 2%.
Total operating expenses are expected to be approximately $36.9 million, including approximately $0.8 million of expenses associated with our Q3 San Jose office move.
4:38PM Multi-Fineline lowers Q3 rev guidance; guides Q4 rev in-line (MFLX) 16.96 +0.27 : Co issues downside guidance for Q3 (Jun), lowers Q3 (Jun) rev to ~$136 mln from $155-185 mln vs. $171.83 mln Capital IQ Consensus Estimate. As a result of the lower revenues, gross margin during the third quarter of fiscal 2013 is expected to be ~(3.1) percent, compared to the Company's guidance of approximately breakeven. The Company expects to report cash and cash equivalents of $114.1 million, or $4.76 per diluted share, and $73.6 million in inventory.
Co issues guidance for Q4 (Sep), sees Q4 (Sep) revs of $195-215 mln vs. $211.93 mln Capital IQ Consensus Estimate and gross margin to range between 1 to 3 percent based on production build plans, projected sales volume and anticipated product mix.
4:22PM Microsemi beats by $0.02, reports revs in-line; guides Q4 EPS in-line, revs in-line (MSCC) 23.93 +0.39 : Reports Q3 (Jun) earnings of $0.49 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.47; revenues fell 6.4% year/year to $242.6 mln vs the $242.35 mln consensus.
GAAP gross margin was 57.0 percent, improving 30 basis points sequentially and 120 basis points over the prior year quarter. Book-to-bill was greater than 1.1, and operating cash flow was $52.6 mln.
Guidance: Co issues in-line guidance for Q4, sees EPS of $0.51-$0.55 vs. $0.52 Capital IQ Consensus Estimate; sees Q4 revs growing 2-4% sequentially, which equates to approximately $247.5-$252.3 mln vs. $251.00 mln Capital IQ Consensus Estimate.
4:00PM Microsemi awarded its largest USG contract to develop high-performance integrated circuits; co currently expects the initial award of $75 mln will contribute to revenues over the next two years (MSCC) 23.93 +0.39 :
4:17PM KLA-Tencor beats by $0.03, beats on revs (KLAC) 59.79 : Reports Q4 (Jun) earnings of $0.82 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.79; revenues fell 19.3% year/year to $720 mln vs the $705.21 mln consensus.
4:17PM QLogic beats by $0.04, reports revs in-line (QLGC) : Reports Q1 (Jun) earnings of $0.18 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.14; revenues fell 13.3% year/year to $113.1 mln vs the $113.66 mln consensus.
4:11PM Freescale Semi beats by $0.02, beats on revs; guides Q3 revs in-line (FSL) 16.30 +0.42 : Reports Q2 (Jun) earnings of $0.09 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.07; revenues rose 0.9% year/year to $1.04 bln vs the $1.02 bln consensus. Co issues in-line guidance for Q3, sees Q3 revs of $1.05-1.09 bln vs. $1.05 bln Capital IQ Consensus Estimate.
4:08PM Flextronics beats by $0.04, beats on revs; guides Q2 EPS in-line, revs in-line (FLEX) 8.14 +0.01 : Reports Q1 (Jun) adjusted earnings of $0.18 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.14; revenues fell 3.1% year/year to $5.79 bln vs the $5.48 bln consensus.
Guidance: Co issues in-line guidance for Q2, sees adjusted EPS of $0.19-$0.22 vs. $0.21 Capital IQ Consensus Estimate; sees Q2 revs of $6.1-$6.4 bln vs. $6.13 bln Capital IQ Consensus Estimate.
Share Repurchase Plan: The company recently completed its prior share repurchase plan. In addition, the Board has authorized, subject to shareholder approval at the Extraordinary General Meeting on July 29, 2013, a new share repurchase plan. Repurchases under the company's share repurchase plans are subject to an aggregate limit under Singapore law of 10% of the Company's outstanding ordinary shares as of the date of the Company's Extraordinary General Meeting. This new authorization would permit, subject to shareholder approval, the repurchase of ordinary shares up to the current maximum under the 10% limitation. Share repurchases, if any, will be made in the open market. The timing and actual number of shares repurchased will depend on a variety of factors including price, market conditions and applicable legal requirements
4:05PM Maxim Integrated misses by $0.03, misses on revs; guides Q1 EPS below consensus, revs below consensus; Authorizes new $1.0 bln share repurchase program, Quarterly dividend increased 8% to $0.26/share (MXIM) 27.42 +0.26 : Reports Q4 (Jun) earnings of $0.44 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus Estimate of $0.47; revenues rose 0.5% year/year to $608.2 mln vs the $625.78 mln consensus.
Co issues downside guidance for Q1, sees EPS of $0.37-0.41, excluding non-recurring items, vs. $0.50 Capital IQ Consensus Estimate; sees Q1 revs of $570-600 mln vs. $653.60 mln Capital IQ Consensus Estimate.
4:05PM Integrated Device beats by $0.01, beats on revs (IDTI) 8.99 +0.12 : Reports Q1 (Jun) earnings of $0.05 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.04; revenues fell 9.4% year/year to $117.98 mln vs the $115.84 mln consensus.
4:03PM Cirrus Logic beats by $0.06, misses on revs; guides Q2 revs in-line (CRUS) 20.32 +0.91 : Reports Q1 (Jun) earnings of $0.56 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $0.50; revenues rose 56.6% year/year to $155 mln vs the $160.43 mln consensus.
Co issues in-line guidance for Q2, sees Q2 revs of $170-190 mln vs. $183.01 mln Capital IQ Consensus Estimate.
Co reported Q1 Gross margin of 51.2 percent.
Co sees Q2 Gross margin between 46 percent and 48 percent.
"During the quarter, we added new customers in portable audio and expanded into more SKUs in LED lighting. We are especially excited about the lineup of custom and general market products we currently have in development."
Large Cap Gainers
FB (32.93 +24.21%): Beat on EPS by $0.05, beat on revs; tgt raised to $40 from $35 at Cantor Fitzgerald; tgt raised to $37 from $33 at Needham; upgraded to Mkt Outperform at JMP Securities; upgraded to Overweight from Equal Weight at Evercore; upgraded to Neutral at BTIG Research; tgt raised to $40 at Cantor Fitzgerald; tgt to $46 from $40 at Goldman.
BSX (10.68 +11.13%): Beat on EPS by $0.01, beat on revs; guided Q3 revs in-line; guided FY13 revs in-line; received FDA 510(k) clearance for the Rhythmia Mapping System.
BIDU (124.5 +9.82%): Beat on EPS by $0.01, beat on revs; guided Q3 revs above consensus; upgraded to Buy from Underperform at Credit Agricole; heard upgraded to Overweight from Equal Weight at Barclays; tgt raised to $95 from $75 at Maxim.
Large Cap Losers
WDC (63.34 -6.2%): Beat on EPS by $0.15, beat on revs; guided Q1 revs to $3.7-3.8 bln vs $3.76 bln Capital IQ Consensus Estimate; guided non-GAAP Q1 EPS to $1.95-2.05 vs $2.03 Capital IQ Consensus Estimate; downgraded to Sell at Craig Hallum; target raised to $77 at Stifel.
CAM (59.94 -5.71%): Beat on EPS by $0.01, missed on revs; guided Q3 EPS below consensus; guided FY13 EPS below consensus.
SI (104.22 -5.41%): Lowered margin expectations; reports out related to potential blade breakage costs.
Mid Cap Gainers
OKE (49.86 +16.41%): Announced plan to separate its natural gas distribution business into a new publicly traded company to be called One Gas; increased quarterly dividend by 6% to $0.38 per share from $0.36 per share.
TRIP (69.54 +13.74%): Beat on EPS by $0.03, beat on revs; target raised to $80 at Monness Crespi & Hardt; heard positive comments at Pacific Crest citing TRIP comments on pay-per-book offerings; target raised to $65 at RBC Capital Mkts.
CSGP (147.92 +10.41%): Beat on EPS by $0.09, beat on revs; guided Q3 EPS above consensus, revs above consensus; raised FY13 EPS above consensus, revs above consensus.
Mid Cap Losers
PHM (16.72 -9.38%): Missed on EPS by $0.03, missed on revs; declared $0.05 quarterly dividend; increased share repurchase authorization to $352 mln from $250 mln; heard defended at UBS.
TKR (55.42 -7.54%): Missed on EPS by $0.04, missed on revs; guided FY13 EPS below consensus, revs below consensus.
DHI (19.82 -6.51%): Beat on EPS by $0.09, missed on revs.
10:40AM TriQuint Semi (+16%) trades to near 2 year high after beat and raise last night (TQNT) 7.84 +1.05 :
10:39AM Applied Micro (+19%) trades to near 7 year high after beating Q1 EPS last night (AMCC) 12.64 +2.03 :
9:03AM Interdigital Comm beats by $0.07, reports revs in-line (IDCC) 38.71 : Reports Q2 (Jun) earnings of $0.22 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.15; revenues fell 5.8% year/year to $67.7 mln vs the $68.18 mln consensus.
The majority of the fixed-fee amortized royalty revenue decrease was due to the expiration of the 3G portion of our patent license agreement with Samsung at the end of 2012, which was partially offset by the addition of fixed-fee amortized royalty revenue from the Sony patent license agreement signed in fourth quarter 2012. Per-unit royalty revenue decreased $1.3 mln due to lower shipments from our Japanese per-unit licensees and one of our licensees with concentrations in the smartphone market.
Axcelis Technologies (ACLS) received an order for its Optima HDx high current implanter from one of the world's leading foundries.
8:10AM KEMET misses by $0.16, misses on revs (KEM) 4.69 : Reports Q1 (Jun) loss of $0.38 per share, excluding non-recurring items, $0.16 worse than the Capital IQ Consensus Estimate of ($0.22); revenues fell 9.3% year/year to $202.7 mln vs the $205.4 mln consensus.
Co says revenue was right on forecast and indicators point to a slight increase in Q2 (Sep), CapIQ consensus for Q2 is $211.4 mln. "This quarter saw the full impact on our financial results of the raw material supply chain disruption that occurred in our last quarter. However, we have corrections underway and this area is under our control....I expect to see good improvement in our operating margins this next quarter as we get our Tantalum raw material supply back on track and our European business rolls into its final stage of reorganizing into low-cost countries. A little assistance from an improving economy would be appreciated, but we expect a significant positive change to our financial results this fiscal year even with the economy just moving sideways."
8:08AM Silicon Labs reports EPS in-line, misses on revs; guides Q3 revs below consensus (SLAB) 44.65 : Reports Q2 (Jun) earnings of $0.50 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate consensus of $0.50; revenues rose 4.3% year/year to $141.5 mln vs the $143.61 mln consensus. Co issues downside guidance for Q3, sees Q3 revs of $144-149 mln vs. $152.21 mln Capital IQ Consensus Estimate.
8:04AM Ixys misses by $0.07, reports revs in-line (IXYS) 11.94 : Reports Q1 (Jun) earnings of $0.06 per share, $0.07 worse than the Capital IQ Consensus Estimate of $0.13; revenues fell 12.0% year/year to $71.2 mln vs the $70.81 mln consensus.
"We see signs of muted recovery in global markets, led by resumption of spending trends in the U.S. and select European countries. Optimism in the marketplace inevitably leads to customer confidence, as evidenced by our recent two quarters of sales growth. If markets continue to follow this trend, we can expect revenues for the September 2013 quarter to be 10% to 12% higher than those of the June 2013 quarter,"
F5 Networks (FFIV 88.25, +6.83) is +8.4% after beating on earnings and revenue.
Qualcomm (QCOM 62.99, +1.60) is +2.6% after reporting in-line earnings on better-than-expected revenue.
Western Digital (WDC 64.20, -3.33) is -4.9% after the company's cautious first quarter guidance overshadowed its earnings and revenue beat.
Xilinx (XLNX) announced that its 7 Series GTH transceiver successfully completed testing for 10GBASE-KR LogiCORE IP at the University of New Hampshire InterOperability Laboratory, validating that it fully meets UNH-IOL's receiver and transmitter electrical and protocol compliance tests for backplane applications.
7:04AM Benchmark Elec beats by $0.04, beats on revs; guides Q3 EPS in-line, revs above consensus (BHE) 21.54 : Reports Q2 (Jun) earnings of $0.31 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.27; revenues fell 3.6% year/year to $607.52 mln vs the $573.39 mln consensus. Co issues guidance for Q3, sees EPS of $0.28-0.32, excluding non-recurring items, vs. $0.29 Capital IQ Consensus Estimate; sees Q3 revs of $590-620 mln vs. $582.34 mln Capital IQ Consensus Estimate.
10:58 am Labor Market Conditions Remain Steady Amid Volatile Initial Claims Data
The initial claims level increased to 343,000 for the week ending July 20 from an upwardly revised 336,000 (from 334,000) for the week ending July 13. The Briefing.com consensus expected the initial claims level to increase to 340,000.Over the past few weeks, the DOL has acknowledged that its seasonal adjustments are failing to correct for layoffs in the auto and education sectors. This has caused unusual volatility in the headline initial claims level.Smoothing out the data, however, reveals steady labor market conditions that are primed for payroll growth in the neighborhood of 175,000 -- 200,000 jobs each month.The continuing claims level fell from 3.116 mln for the week ending July 6 to 2.997 mln for the week ending July 13. The consensus expected the continuing claims level to fall to 2.993 mln.
10:58 am Strong Demand for Aircraft Masks an Otherwise Disappointing Durables Report
Durable goods orders rose 4.2% in June after increasing an upwardly revised 5.2% (from 3.7%) in May. The Briefing.com consensus expected orders to increase 1.8%.The durables reports is a perfect example where a strong headline number can mask significant weakness that is taking effect across almost every sector.As expected from Boeing's (BA) orders report, transportation orders were strong in June. Orders rose 12.8% as defense and nondefense aircraft orders increased 29.2%.Outside of transportation, however, nearly every durables sector fell in June. Only machinery (+2.4%) and fabricated metals products (+0.1%) showed positive growth.That left durable goods orders excluding transportation flat for the month after increasing 1.0% in May. The consensus expected these orders to increase 0.3%.Business investment demand remained on a positive track due to the strong gain in machinery orders. Orders of nondefense capital goods excluding aircraft rose 0.7% in June after increasing 2.2% in May. Unfortunately, that gain will likely not translate into stronger second quarter GDP numbers. Shipments of these goods, which factor into GDP, fell 0.9% after increasing 1.9% in May.There is some hope for stronger-than-expected growth in Q3 2013. The level of unfilled orders of nondefense capital goods excluding aircraft rose 1.7% in June after increasing 1.2% in May. Unless firms see sizable cancelations over the next few months, that should give producers ample space to ramp up production.
08:53 am Sequenom shares plunge 36% following miss on earnings
Sequenom (SQNM $2.98 -1.72) reported a second quarter loss of $0.27 per share, which missed expectations, while revenues rose 91.0% year/year to $34.85 million which also missed expectations. "Along with many other companies in the diagnostics industry, Sequenom CMM experienced delays in receipt of payments as a result of molecular diagnostics coding changes adopted by CMS, Medicaid and third party payors. These changes include the elimination and replacement of certain molecular diagnostics billing codes.
Several payors are requesting additional information to process claims for services, and certain payors, including most state Medicaid plans, have not implemented the new codes, or in some cases are no longer providing coverage for certain tests. In addition to the impact of these coding changes, Sequenom CMM transitioned from an out-sourced billing provider to an in-house billing system during the quarter, and lower than expected collections by the external billing provider also contributed to the decline in diagnostic revenues."
08:51 am Visa shares rise 2% following better than expected earnings
Visa (V $190.50 +3.75) reported third quarter earnings of $1.88 per share, which was ahead of estimates, while revenues rose 17.0% year/year to $3 billion which was also ahead of expectations. Payments volume growth, on a constant dollar basis, for the three months ended March 31, 2013, on which fiscal third quarter service revenue is recognized, was 9% over the prior year at $1.0 trillion. Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2013, was 13% over the prior year at $1.1 trillion. Cross-border volume growth, on a constant dollar basis, was 11% for the three months ended June 30, 2013.
Total processed transactions, which represent transactions processed by VisaNet, for the three months ended June 30, 2013, were 15.0 billion, a 14% increase over the prior year. The company raised fiscal year 2013 EPS to lows 20s % growth from ~20, net rev growth to ~13% from low double digits. The company affirmed fiscal year 2014 financial outlook: Annual net revenue growth: Low double digits; Adjusted annual diluted class A common stock earnings per share growth: Mid to high teens; and Annual free cash flow: About $5 billion. In addition, the Board of Directors has authorized a new $1.5 billion class A share repurchase program. The authorization will be in place through July 2014, and is subject to further changes at the discretion of the Board.
08:50 am Facebook shares soar 26% as the market likes its earnings beat and mobile metrics
Facebook (FB $33.59 +7.07) reported second quarter earnings of $0.19 per share, which was better than expected, while revenues rose 53.1% year/year to $1.81 billion which was ahead of expectations.
Key Metrics:
Daily active users (DAUs) were 699 million on average for June 2013, an increase of 27% year-over-year.
Monthly active users (MAUs) were 1.15 billion as of June 30, 2013, an increase of 21% year-over-year.
Mobile MAUs were 819 million as of June 30, 2013, an increase of 51% year-over-year. Mobile DAUs were 469 million on average for June 2013.
Mobile advertising revenue represented ~41% of advertising revenue for the second quarter of 2013 versus expectations of ~32.5%.
GAAP operating margin was 31% for the second quarter of 2013, compared to negative 63% in the second quarter of 2012.
Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 44% for the second quarter of 2013, compared to 43% for the second quarter of 2012.
08:48 am Bidu shares soar 17% following beat on earnings
Baidu.com (BIDU $133.02 +19.65) reported second quarter earnings of $1.22 per share, which was better than expected, while revenues rose 43.6% year/year to $1.23 billion which also topped expectations. The company issued guidance for the third quarter with revenues of $1.422-1.460 billion which is ahead of expectations. Online marketing revenues for the second quarter of 2013 were RMB7.539 billion ($1.228 billion), representing a 38.3% increase from the corresponding period in 2012. Baidu had about 468,000 active online marketing customers in the second quarter of 2013, representing a 33.0% increase from the corresponding period in 2012 and a 14.1% increase from the first quarter of 2013.
Revenue per online marketing customer for the second quarter was approximately RMB16,100 ($2,623), a 3.9% increase from the corresponding period in 2012 and an 11.0% increase compared to the first quarter of 2013. Traffic acquisition cost (TAC) as a component of cost of revenues was RMB880.0 million ($143.4 million), representing 11.6% of total revenues, as compared to 8.3% in the corresponding period in 2012 and 10.2% in the first quarter of 2013. The increase mainly reflected increased contextual ads contributions and hao123 promotions through our network. Bandwidth costs as a component of cost of revenues were RMB457.3 million ($74.5 million), representing 6.0% of total revenues, compared to 4.4% in the corresponding period in 2012.
Depreciation costs as a component of cost of revenues were RMB357.0 million ($58.2 million), representing 4.7% of total revenues, compared to 4.5% in the corresponding period in 2012. The increase was mainly due to an increase in network infrastructure capacity. Content costs as a component of cost of revenues were RMB150.7 million ($24.5 million), representing 2.0% of total revenues, compared to 0.6% in the corresponding period in 2012, and 1.6% in the previous quarter. The year-over-year increase was mainly due to the inclusion of iQiyi's content costs.
08:46 am Qualcomm shares rise 4% following beat on revenues
Qualcomm (QCOM $61.39 ) reported third quarter earnings of $1.03 per share, which is in line with expectations, while revenues rose 35.0% year/year to $6.24 billion which was also ahead of estimates. The company issued guidance for the fourth quarter with adjusted EPS of $1.02-1.10 which is in line with expectations with revenues of $5.9-6.6 billion which is also in line with expectations.
Q3 Key Business Metrics MSM chip shipments: 172 million units, up 22 percent y-o-y and down 1 percent sequentially. March quarter total reported device sales: ~$56.5 billion, up 18 percent y-o-y and down 8 percent sequentially. March quarter estimated 3G/4G device shipments: ~244 to 248 million units, at an estimated average selling price of approximately $227 to $233 per unit.
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