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Saturday, February 01, 2014 6:26:46 PM
From Briefing.com: Weekly Recap - Week ending 31-Jan-14
Dow -149.76 at 15698.85, Nasdaq -19.25 at 4103.87, S&P -11.60 at 1782.59
The stock market ended a disappointing month on a lower note as the S&P 500 lost 0.7%, extending its January decline to 3.6%. The Nasdaq outperformed, falling 0.5%, while the Dow Jones Industrial Average slid 1.0%.
The stock market ended a disappointing month on a lower note as the S&P 500 lost 0.7%, extending its January decline to 3.6%. The Nasdaq outperformed, falling 0.5%, while the Dow Jones Industrial Average slid 1.0%.
Equities began the session sharply lower but a day-long rebound helped the major averages finish the trading day with more palatable losses. The S&P 500 made a very brief afternoon appearance in positive territory before retreating again in the final hour.
Today's cash session kicked off amid significant weakness in Europe where markets were flirting with losses close to 2.0%. The region-wide weakness was led by Germany after the country saw a 2.4% year-over-year drop in retail sales (+1.9% expected). A disappointing CPI reading for the eurozone (+0.7% versus 0.9% consensus) also played a part in the weakness.
Furthermore, the early selling once again coincided with yen strength as dollar/yen dropped as low as 102.00 before staging a modest recovery which accompanied the rebound in equities. Fittingly, the final hour retreat in stocks was accompanied another rally in the yen. Yen futures added 0.5% on Friday, extending their January gain to 3.0%.
Seven of ten sectors ended in the red with energy (-1.5%) seeing the largest decline. The sector was pressured by Dow component Chevron (CVX 111.63, -4.82), which tumbled 4.1% following disappointing earnings. The broader energy sector ended January behind the remaining nine groups with a loss of 6.3%.
Meanwhile, the second-weakest sector of the month, consumer discretionary, lost 1.3%, extending its January decline to 6.0%. The sector was a significant source of the morning weakness as Amazon.com (AMZN 358.69, -44.32) plunged 11.0% following its disappointing earnings and cautious guidance.
Despite the sharp loss in Amazon.com, the discretionary sector was able to climb off its lows with help from Chipotle Mexican Grill (CMG 551.96, +58.00) and homebuilders. Chipotle spiked 11.7% after reporting in-line earnings while iShares Dow Jones US Home Construction ETF (ITB 24.82, +0.43) added 1.8% as Treasury yields continued their retreat (10-yr yield -4 bps to 2.66%).
With regard to other cyclical groups, financials (-1.1%) lagged while industrials (-0.5%), materials (-0.6%), and technology (+0.2%) outperformed.
Notably, the tech sector drew strength from Google (GOOG 1180.97, +45.58), which jumped 4.0% after reporting earnings. Although the company missed its Capital IQ earnings estimate by $0.28, investors were pleased to see a 13% quarterly increase in click revenue.
On the countercyclical side, consumer staples (-0.4%), telecom services (+0.1%), and utilities (+0.8%) outperformed while health care (-0.8%) lagged.
Participation was well above average, which was likely related to month-end activity as 937 million shares traded at the NYSE.
Monday's data will be limited to the New Home Sales report for December, which will be released at 10:00 ET. It is also worth mentioning that China will release its Manufacturing PMI tonight at 20:00 ET, which is likely to generate a reaction in global markets on Monday. The general consensus expects the reading to slip from 51.0 to 50.5.
Week in Review: Stocks Endure Volatile Week
On Monday, the major averages followed the sharp losses of the prior week with another shaky performance. The Dow Jones Industrial Average and S&P 500 posted respective declines of 0.3% and 0.5% while the Nasdaq (-1.1%) and Russell 2000 (-1.5%) underperformed. Stocks displayed gains at the open but the early strength faded during the initial hour as the Nasdaq headed into the red. The other indices followed suit and the broad retreat continued until about 12:20 ET when stocks reversed, and spent the afternoon in a steady climb. Moderate selling pressure returned during the final hour, knocking the indices off their afternoon highs. Although there was no news responsible for the turn, the morning selling coincided with a strengthening yen while the session low in equities matched the high point for the Japanese currency. Once the yen began weakening again, a rally in equities ensued. Similarly, the selling observed during the last 30 minutes of action coincided with the yen gaining strength once again.
The stock market halted its three-day slide on Tuesday as the S&P 500 gained 0.6%. The tech-heavy Nasdaq (+0.4%) also finished in the green, but couldn't keep pace with the S&P 500 as Apple weighed following its quarterly report. Although the largest tech company beat on earnings and revenue, investors were not pleased by below-consensus iPhone sales. In addition, disappointing guidance for the second quarter also factored into the stock's 8.0% loss. The remainder of the technology sector (-0.7%) was a bit more mixed as large-cap names like Google, Oracle, and Intel posted solid gains while Seagate tumbled 11.3% after missing earnings estimates. Outside of technology, most other cyclical groups finished ahead of the broader market with financials (+1.3%) ending in the lead.
Selling pressure returned on Wednesday as equities ended broadly lower with small caps leading the weakness. The Russell 2000 lost 1.5% while the S&P 500 fell 1.0% as nine of ten sectors finished in the red. Although the session generated plenty of excitement, some of the events that played out over the course of the day were set in motion on Tuesday. Shortly after Tuesday's session on Wall Street ended, the Central Bank of Turkey shocked the market with a 445-basis point hike to 12.00% in an attempt to halt the rapidly weakening lira. The move worked...for 15 hours. The lira strengthened after the announcement, but spent the remainder of the overnight session in a steady retreat, giving up all of its gains. Interestingly, the news of out of Turkey also gave a boost to U.S. equity futures while weighing on the yen. The moves did not hold as futures spent the night in a steady retreat while the yen rallied. The materials sector (+0.5%) withstood the broad-based weakness with help from Dow Chemical, which rallied 4.1% after beating on earnings.
On Thursday, the major averages finished near their highs with the Nasdaq surging 1.8% while the S&P 500 gained 1.1% as all ten sectors ended in the green. Stocks jumped out of the gate and continued climbing steadily into the early afternoon. The S&P 500 notched a session high of 1798.77 just before 13:00 ET, and spent the rest of the trading day near that level. The upbeat start to the session was aided by overnight gains in index futures which rallied while the Japanese yen weakened. The futures market received an additional boost an hour before the cash open when it was reported that fourth quarter GDP rose 3.2%, per the advance estimate. The Nasdaq Composite spent the entire session in the lead with the likes of Amazon.com, Google, Facebook, and Qualcomm providing support. Amazon.com and Google rallied ahead of their earnings while Facebook and Qualcomm posted respective gains of 14.1% and 3.0% after reporting better-than-expected results.
4:55PM This week's biggest % gainers/losers (SCANX) : The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).
This week's top 20 % gainers
Technology: INFN (8.73 +23.11%), ACCL (12.58 +20.06%), GAME (6.45 +18.52%), CLFD (24.95 +18.48%), VRNG (4.29 +15.28%), FSL (18.13 +14.41%)
Services: ISLE (9.56 +13.7%)
Healthcare: PRAN (11.6 +39.32%), ARWR (15.34 +30.77%), BDSI (7.85 +28.64%), CSII (33.92 +19.39%), PRTA (30.94 +18.89%), CORT (3.44 +18.79%), ALXN (158.73 +17.44%), HZNP (9.86 +16.88%), TXMD (6.58 +14.43%)
Consumer Goods: UA (108.11 +24.86%), PBI (25.18 +15.5%), HAR (103.43 +14.23%)
Basic Materials: KRA (25.01 +13.39%)
This week's top 20 % losers
Technology: NSR (33.89 -22.95%), VIP (9.69 -22.06%), NTLS (16.41 -18.17%), IGT (14.43 -17.28%), SHOR (7.7 -16.4%)
Services: ESI (29.4 -33.32%), OSTK (21.06 -23.78%), EDMC (6.93 -22.68%), RCII (24.94 -20.26%), ADT (30.04 -19.11%), NGVC (37.97 -17.22%), JCP (5.92 -15.64%)
Healthcare: PGNX (4.78 -22.73%), EPZM (30.4 -19.95%), CTIC (3.19 -19.61%), CEMP (11.89 -16.74%), SPPI (8.41 -15.92%)
Financial: WETF (14.11 -18.9%), FNFG (8.64 -17.21%)
Consumer Goods: BDE (10.65 -16.21%)
4:22PM Closing Market Summary: Stocks End Down Month on Lower Note (WRAPX) : The stock market ended a disappointing month on a lower note as the S&P 500 lost 0.7%, extending its January decline to 3.6%. The Nasdaq outperformed, falling 0.5%, while the Dow Jones Industrial Average slid 1.0%.
Equities began the session sharply lower but a day-long rebound helped the major averages finish the trading day with more palatable losses. The S&P 500 made a very brief afternoon appearance in positive territory before retreating again in the final hour.
Today's cash session kicked off amid significant weakness in Europe where markets were flirting with losses close to 2.0%. The region-wide weakness was led by Germany after the country saw a 2.4% year-over-year drop in retail sales (+1.9% expected). A disappointing CPI reading for the eurozone (+0.7% versus 0.9% consensus) also played a part in the weakness.
Furthermore, the early selling once again coincided with yen strength as dollar/yen dropped as low as 102.00 before staging a modest recovery which accompanied the rebound in equities. Fittingly, the final hour retreat in stocks was accompanied another rally in the yen. Yen futures added 0.5% on Friday, extending their January gain to 3.0%.
Seven of ten sectors ended in the red with energy (-1.5%) seeing the largest decline. The sector was pressured by Dow component Chevron (CVX 111.63, -4.82), which tumbled 4.1% following disappointing earnings. The broader energy sector ended January behind the remaining nine groups with a loss of 6.3%.
Meanwhile, the second-weakest sector of the month, consumer discretionary, lost 1.3%, extending its January decline to 6.0%. The sector was a significant source of the morning weakness as Amazon.com (AMZN 358.69, -44.32) plunged 11.0% following its disappointing earnings and cautious guidance.
Despite the sharp loss in Amazon.com, the discretionary sector was able to climb off its lows with help from Chipotle Mexican Grill (CMG 551.96, +58.00) and homebuilders. Chipotle spiked 11.7% after reporting in-line earnings while iShares Dow Jones US Home Construction ETF (ITB 24.82, +0.43) added 1.8% as Treasury yields continued their retreat (10-yr yield -4 bps to 2.66%).
With regard to other cyclical groups, financials (-1.1%) lagged while industrials (-0.5%), materials (-0.6%), and technology (+0.2%) outperformed.
Notably, the tech sector drew strength from Google (GOOG 1180.97, +45.58), which jumped 4.0% after reporting earnings. Although the company missed its Capital IQ earnings estimate by $0.28, investors were pleased to see a 13% quarterly increase in click revenue.
On the countercyclical side, consumer staples (-0.4%), telecom services (+0.1%), and utilities (+0.8%) outperformed while health care (-0.8%) lagged.
Participation was well above average, which was likely related to month-end activity as 937 million shares traded at the NYSE.
Monday's data will be limited to the New Home Sales report for December, which will be released at 10:00 ET. It is also worth mentioning that China will release its Manufacturing PMI tonight at 20:00 ET, which is likely to generate a reaction in global markets on Monday. The general consensus expects the reading to slip from 51.0 to 50.5.
Nasdaq Composite -1.7% YTD
Russell 2000 -2.8% YTD
S&P 500 -3.6% YTD
Dow Jones Industrial Average -5.3% YTD
Week in Review: Stocks Endure Volatile Week
On Monday, the major averages followed the sharp losses of the prior week with another shaky performance. The Dow Jones Industrial Average and S&P 500 posted respective declines of 0.3% and 0.5% while the Nasdaq (-1.1%) and Russell 2000 (-1.5%) underperformed. Stocks displayed gains at the open but the early strength faded during the initial hour as the Nasdaq headed into the red. The other indices followed suit and the broad retreat continued until about 12:20 ET when stocks reversed, and spent the afternoon in a steady climb. Moderate selling pressure returned during the final hour, knocking the indices off their afternoon highs. Although there was no news responsible for the turn, the morning selling coincided with a strengthening yen while the session low in equities matched the high point for the Japanese currency. Once the yen began weakening again, a rally in equities ensued. Similarly, the selling observed during the last 30 minutes of action coincided with the yen gaining strength once again.
The stock market halted its three-day slide on Tuesday as the S&P 500 gained 0.6%. The tech-heavy Nasdaq (+0.4%) also finished in the green, but couldn't keep pace with the S&P 500 as Apple weighed following its quarterly report. Although the largest tech company beat on earnings and revenue, investors were not pleased by below-consensus iPhone sales. In addition, disappointing guidance for the second quarter also factored into the stock's 8.0% loss. The remainder of the technology sector (-0.7%) was a bit more mixed as large-cap names like Google, Oracle, and Intel posted solid gains while Seagate tumbled 11.3% after missing earnings estimates. Outside of technology, most other cyclical groups finished ahead of the broader market with financials (+1.3%) ending in the lead.
Selling pressure returned on Wednesday as equities ended broadly lower with small caps leading the weakness. The Russell 2000 lost 1.5% while the S&P 500 fell 1.0% as nine of ten sectors finished in the red. Although the session generated plenty of excitement, some of the events that played out over the course of the day were set in motion on Tuesday. Shortly after Tuesday's session on Wall Street ended, the Central Bank of Turkey shocked the market with a 445-basis point hike to 12.00% in an attempt to halt the rapidly weakening lira. The move worked...for 15 hours. The lira strengthened after the announcement, but spent the remainder of the overnight session in a steady retreat, giving up all of its gains. Interestingly, the news of out of Turkey also gave a boost to U.S. equity futures while weighing on the yen. The moves did not hold as futures spent the night in a steady retreat while the yen rallied. The materials sector (+0.5%) withstood the broad-based weakness with help from Dow Chemical, which rallied 4.1% after beating on earnings.
On Thursday, the major averages finished near their highs with the Nasdaq surging 1.8% while the S&P 500 gained 1.1% as all ten sectors ended in the green. Stocks jumped out of the gate and continued climbing steadily into the early afternoon. The S&P 500 notched a session high of 1798.77 just before 13:00 ET, and spent the rest of the trading day near that level. The upbeat start to the session was aided by overnight gains in index futures which rallied while the Japanese yen weakened. The futures market received an additional boost an hour before the cash open when it was reported that fourth quarter GDP rose 3.2%, per the advance estimate. The Nasdaq Composite spent the entire session in the lead with the likes of Amazon.com, Google, Facebook, and Qualcomm providing support. Amazon.com and Google rallied ahead of their earnings while Facebook and Qualcomm posted respective gains of 14.1% and 3.0% after reporting better-than-expected results.
3:48PM Events and conferences of interest for next week : Events and conferences of interest for next week, Feb 3-7, are listed below. For a complete list of next week's events, please see the events calendar.
Monday
Credit Suisse Latin American Investor Conference
Eurozone Manufacturing PMI
RBA Policy
Tuesday
SAP Investor Symposium Bank of America Merrill Lynch 2014 Global Macro Conference - Toronto
Fed's Lacker, Evans
Wednesday
UTX, TYC, AA and ATK at Cowen and Company 35th Annual Aerospace/Defense Conference and Transportation Forum
Eurozone Services PMI
Fed's Plosser, Lockhart
Thursday
BoE, ECB Policy Updates
Fed's Rosengren
Friday
GLW Investor Meeting
MU Analyst Conference
3:32PM Earnings Preview for the week of February 3 - 7 (SUMRX) : Of the companies reporting earnings for the week of February 3 - 7 some of the bigger names include:
Monday:
Pre Market - SYY, GOLD
After Hours - SU, HIG, YUM, APC, PFG, UGI, CCK, MDU, PRE, APU, TMK, CFN, TTWO, GGP, HOLX, EW
Tuesday:
Pre Market - BP, ADM, HCA, IP, UPS, EMR, ETN, DLPH, AGCO, CNC, ACM, BDX, BSX, R, FIS, AXe, SE, GCI, ABG, CLX, MHFI, SIRI, XYL, KORS, CHD, ACI, CME
After Hours - AFL, CHRW, AMP, GILD, BSAC, UNM, GNW, GAS, ATO, CERN, EQR, CVD, DV, BWLD
Wednesday:
Pre Market - MRK, HUM, TWX, ARW, EL, ADP, CTSH, GPI, CCE, RL, AGN, LVLT, NS, IACI, NDAQ, CVG,
After Hours - DIS, PAGP, PRU, PAA, TSO, ALL, ARMK, MRO, LNC, AIZ, CBG, ORLY, GMCR, XL, CNW, FISV, NXPI, RE, CINF, THG, FMC, WGL, GPRE, AKAM, SFLY, TWTR, P, YELP
Thursday:
Pre Market - SNE, GM, AET, FOXA, AZN, CS, EXC, BCE, TEVA, CMI, K, PPL, SEE, INGR, NU, SPR, AAP, NBL, RFP, ADS, WEC, GPK, NUS, PRGO, TW, USG, AOL, VMC, SMG, MWW, DNKN, PBH
During Market Hours - PM
After Hours - ATVI, RSG, FTI, EXPE, LGF, ONNN, TPX, OUTR, LNKD, BYI, VRSN, ATHN, OPEN,
Friday:
Pre Market - MT, CI, LH, UFS, BPL, WYN, AXL, MCO, BEAM, APO, MSG, FLIR, SIRO, CBOE
After Hours - CCJ
12:25PM Notable movers of interest (SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).
Large Cap Gainers
CMG (562.41 +13.86%): Reported Q4 EPS of $2.53 per share (in-line), revs rose 20.7% yoy to $844.1 mln vs $826.23 mln estimate; co expects to open 180-195 restaurants in 2014, expects low to mid single digit comparable restaurant sales excluding any menu price increases; target raised at RBC Capital Markets, JP Morgan, Credit Suisse, Piper Jaffray, Telsey Advisory Group
TSN (37.53 +8.81%): Beat quarterly EPS by $0.09 ($0.72 vs $0.63 estimate), revs rose 4.7% yoy to $8.76 bln vs $8.72 bln estimate; co repurchased 4.6 mln shares for $150 mln
WYNN (215.27 +6.83%): Beat quarterly EPS by $0.54 ($2.27 ex items vs $1.73 estimate), revs rose 17.8% yoy to $1.52 bln vs $1.44 bln estimate; Q4 Macau revs rose 24.6% yoy
Large Cap Losers
MAT (38.9 -9.56%): Missed quarterly EPS by $0.13 ($1.07 vs $1.20 estimate), revs fell 6.3% yoy to $2.11 bln vs $2.37 bln estimate; downgraded to Market Perform from Outperform at Wells Fargo
AMZN (366.2 -9.13%): Missed quarterly EPS by $0.18 ($0.51 vs $0.69 estimate), operating income $510 mln vs -$500 to $500 guidance, revs rose 20.3% yoy to $25.59 bln vs $26.08 bln estimate; sees Q1 revs of $18.2-19.9 bln vs $19.61 bln estimate, operating income of -$200 to $200 mln
NEM (22.4 -7.05%): Co achieved Q4 attributable gold production of 1.5 mln ounces resulting in full year attributable production of 5.1 mln ounces; expects consolidated 2014 gold and copper production to be ~5.0-5.3 mln ounces and 160-175K tonnes, respectively; downgraded to Underperform at RBC Capital Markets
Mid Cap Gainers
ZNGA (4.13 +15.87%): Beat quarterly EPS by $0.01 (-$0.03 ex items vs -$0.04 estimate), revs fell 43.3% yoy to $176.4 mln vs $186.17 mln estimate; sees Q1 EPS of -$0.01, revs of $155-165 mln, sees FY14 EPS of $0.01-0.03; upgraded to Neutral from Sell at Janney
MTW (28.59 +15.47%): Beat quarterly EPS by $0.13 ($0.47 vs $0.34 estimate), revs fell 2.1% yoy to $1.1 bln vs $1.11 bln estimate; sees modest top-line growth in crane revenue in 2014
CPHD (53.37 +12.9%): Beat quarterly EPS by $0.02 ($0.03 ex items vs $0.01 estimate), revs rose 22.6% yoy to $113.3 mln vs $102.15 mln estimate; sees FY14 EPS of $0.24-0.29 ex items vs $0.38 estimate, revs of $446-461 mln vs $447.35 mln estimate; target raised to $65 from $50 at Mizuho, to $55 from $50 at Canaccord Genuity
Mid Cap Losers
N (105.07 -7.34%): Beat quarterly EPS by $0.01 ($0.08 vs $0.07 estimate), revs rose 35.3% yoy to $115 mln vs $111.44 mln estimate; sees FY14 EPS of $0.24-0.26 vs $0.28 estimate, revs of $535-540 mln vs $532.83 mln estimate; sees Q1 EPS of $0.01-0.02 vs $0.05 estimate, revs $119-121 mln vs $119.69 mln estimate
VR (34.99 -5.86%): Missed quarterly EPS by $0.62 ($0.94 vs $1.56 estimate), net premiums written fell 23.0% yoy to $212.7 mln vs $279.5 mln two analyst estimate
NATI (29.63 -5.00%): Missed quarterly EPS by $0.01 ($0.31 vs $0.32 estimate), revs rose 0.2% yoy to $300.8 mln vs $309.53 mln estimate; sees Q1 EPS of $0.15-0.27 vs $0.25 estimate, revs of $272-302 mln vs $298.50 mln estimate; Board approved increase in quarterly dividend to $0.15 from $0.14 per share
JDSU +6.5%, (also upgraded to Outperform from Mkt Perform at William Blair)
7:59AM Micron announces proposed $500 mln offering of senior notes due 2022 (MU) 23.45 :
Co announced that it intends to offer $500 million aggregate principal amount of senior notes due 2022 through an offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act.
The interest rate, redemption provisions and other terms of the Notes will be determined by negotiations between Micron and the initial purchasers.
Micron intends to use the net proceeds from this offering to pay a portion of the costs of extinguishing its obligations with respect to its outstanding 1.875% convertible senior notes due 2014, which may include payments in settlement of conversions of, or to repurchase or redeem, the 2014 Notes.
Earlier today, Micron gave notice to holders of the 2014 Notes that their notes will be redeemed on March 3, 2014, except to the extent such notes are converted or repurchased by Micron prior to such date.
Qualcomm (QCOM) reported first quarter adjusted earnings of $1.26 per share, which is higher than expected, while revenues rose 10.0% year/year to $6.62 billion which is slightly below estimates.First Quarter Key Business Metrics MSMTM chip shipments: 213 million units, up 17 percent y-o-y and 12 percent sequentially. September quarter total reported device sales: ~$61.6 billion, up 16 percent y-o-y and 2 percent sequentially. September quarter estimated 3G/4G device shipments: ~276 to 280 million units, at an estimated average selling price of ~ $219 to $225 per unit. The company issued downside guidance for the second quarter with EPS of $1.15-1.25 and revenues $6.1-6.7 billion. The company issued guidance for fiscal year 2014 with raised EPS to $5.00-5.20, excluding non-recurring items, from $4.95-5.15, which is in line with estimates, with reaffirmed fiscal year 2014 revenues of $26.0-27.5 billion which is line with estimates.
Facebook (FB) reported fourth quarter earnings of $0.31 per share, which is higher than expected, while revenues rose 63.1% year/year to $2.59 billion which is higher than expected. Daily active users (DAUs) were 757 million on average for December 2013, an increase of 22% year-over-year. Mobile DAUs were 556 million on average for December 2013, an increase of 49% year-over-year. Monthly active users (MAUs) were 1.23 billion as of December 31, 2013, an increase of 16% year-over-year. Mobile MAUs were 945 million as of December 31, 2013, an increase of 39% year-over-year. Revenue from advertising was $2.34 billion, a 76% increase from the same quarter last year. Mobile advertising revenue represented approximately 53% of advertising revenue for the fourth quarter of 2013, up from approximately 23% of advertising revenue in the fourth quarter of 2012. GAAP costs and expenses for the fourth quarter of 2013 were $1.45 billion, an increase of 37% from the fourth quarter of 2012, driven primarily by increased headcount and infrastructure expense. Operating margin: GAAP operating margin was 44% for the fourth quarter of 2013, compared to 33% in the fourth quarter of 2012. Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 56% for the fourth quarter of 2013, compared to 46% for the fourth quarter of 2012. Capital expenditures for the fourth quarter of 2013 were $483 million. Cash and marketable securities were $11.45 billion at the end of 2013.
Citrix Systems (CTXS) reported fourth quarter earnings of $1.04 per share, excluding non-recurring items, which is higher than expected, while revenues rose 8.4% year/year to $802.4 million which is line with estimates. Product and license revenue increased a half of a%; Software as a service revenue increased 13%; Revenue from license updates and maintenance increased 11%; Professional services revenue, which is comprised of consulting, product training and certification, increased 28%; Net revenue increased in the EMEA region by 14%, increased in the Americas region by 8% and decreased in the Pacific region by 12%; Deferred revenue totaled $1.4 billion as of December 31, 2013, compared to $1.2 billion as of December 31, 2012, an increase of 18%. The company issued downside guidance for the first quarter with EPS of $0.57-0.60, excluding non-recurring items and revenues of +8-10% to approximately $726.7-740.2 million which is higher than expected. The company issued downside guidance for EPS of $2.85-2.95 and revenues of +8-10% to approximately $3.15-3.21 billion. In addition, Citrix announced today that the co's chief executive officer, Mark Templeton, will be returning from his previously announced leave of absence to resume is role as CEO. Mr. Templeton intends to retire within the next year, subject to the naming of his successor. The board of directors has formed a committee of independent directors to lead a search process to identify the next CEO. David J. Henshall, who has been serving as acting CEO, has been promoted to chief operating officer and will retain a portion of the executive responsibilities that he assumed during Mr. Templeton's absence. Mr. Henshall will continue in his roles as executive vice president and chief financial officer, with responsibility for the company's finance and accounting organizations.
Fortinet (FTNT) reported fourth quarter earnings of $0.15 per share, which is higher thane expected, while revenues rose 17.3% year/year to $177.4 million which is higher than expected. Highlights for the qtr: Billings of $209.8 million, up 20% year over year Cash flow from operations of $46.7 million. Free cash flow of $39.5 million. Cash, cash equivalents and investments of $843.0 million with no debt.
QLogic (QLGC) reported third quarter earnings of $0.29 per share, which is higher than expected, while revenues were unchanged from the year-ago period at $119.4 million. Operating margin: 17.0% GAAP, 23.1% non-GAAP. "During the third quarter, we delivered strong financial results, including non-GAAP earnings per diluted share that exceeded our original guidance range...We are very pleased with our continued focus and execution. As a result of our restructuring activities earlier in the year, we have continued our sharper focus on the server and storage connectivity markets and are now operating more effectively and efficiently as reflected in our financial results."
Dow -149.76 at 15698.85, Nasdaq -19.25 at 4103.87, S&P -11.60 at 1782.59
The stock market ended a disappointing month on a lower note as the S&P 500 lost 0.7%, extending its January decline to 3.6%. The Nasdaq outperformed, falling 0.5%, while the Dow Jones Industrial Average slid 1.0%.
The stock market ended a disappointing month on a lower note as the S&P 500 lost 0.7%, extending its January decline to 3.6%. The Nasdaq outperformed, falling 0.5%, while the Dow Jones Industrial Average slid 1.0%.
Equities began the session sharply lower but a day-long rebound helped the major averages finish the trading day with more palatable losses. The S&P 500 made a very brief afternoon appearance in positive territory before retreating again in the final hour.
Today's cash session kicked off amid significant weakness in Europe where markets were flirting with losses close to 2.0%. The region-wide weakness was led by Germany after the country saw a 2.4% year-over-year drop in retail sales (+1.9% expected). A disappointing CPI reading for the eurozone (+0.7% versus 0.9% consensus) also played a part in the weakness.
Furthermore, the early selling once again coincided with yen strength as dollar/yen dropped as low as 102.00 before staging a modest recovery which accompanied the rebound in equities. Fittingly, the final hour retreat in stocks was accompanied another rally in the yen. Yen futures added 0.5% on Friday, extending their January gain to 3.0%.
Seven of ten sectors ended in the red with energy (-1.5%) seeing the largest decline. The sector was pressured by Dow component Chevron (CVX 111.63, -4.82), which tumbled 4.1% following disappointing earnings. The broader energy sector ended January behind the remaining nine groups with a loss of 6.3%.
Meanwhile, the second-weakest sector of the month, consumer discretionary, lost 1.3%, extending its January decline to 6.0%. The sector was a significant source of the morning weakness as Amazon.com (AMZN 358.69, -44.32) plunged 11.0% following its disappointing earnings and cautious guidance.
Despite the sharp loss in Amazon.com, the discretionary sector was able to climb off its lows with help from Chipotle Mexican Grill (CMG 551.96, +58.00) and homebuilders. Chipotle spiked 11.7% after reporting in-line earnings while iShares Dow Jones US Home Construction ETF (ITB 24.82, +0.43) added 1.8% as Treasury yields continued their retreat (10-yr yield -4 bps to 2.66%).
With regard to other cyclical groups, financials (-1.1%) lagged while industrials (-0.5%), materials (-0.6%), and technology (+0.2%) outperformed.
Notably, the tech sector drew strength from Google (GOOG 1180.97, +45.58), which jumped 4.0% after reporting earnings. Although the company missed its Capital IQ earnings estimate by $0.28, investors were pleased to see a 13% quarterly increase in click revenue.
On the countercyclical side, consumer staples (-0.4%), telecom services (+0.1%), and utilities (+0.8%) outperformed while health care (-0.8%) lagged.
Participation was well above average, which was likely related to month-end activity as 937 million shares traded at the NYSE.
Monday's data will be limited to the New Home Sales report for December, which will be released at 10:00 ET. It is also worth mentioning that China will release its Manufacturing PMI tonight at 20:00 ET, which is likely to generate a reaction in global markets on Monday. The general consensus expects the reading to slip from 51.0 to 50.5.
Week in Review: Stocks Endure Volatile Week
On Monday, the major averages followed the sharp losses of the prior week with another shaky performance. The Dow Jones Industrial Average and S&P 500 posted respective declines of 0.3% and 0.5% while the Nasdaq (-1.1%) and Russell 2000 (-1.5%) underperformed. Stocks displayed gains at the open but the early strength faded during the initial hour as the Nasdaq headed into the red. The other indices followed suit and the broad retreat continued until about 12:20 ET when stocks reversed, and spent the afternoon in a steady climb. Moderate selling pressure returned during the final hour, knocking the indices off their afternoon highs. Although there was no news responsible for the turn, the morning selling coincided with a strengthening yen while the session low in equities matched the high point for the Japanese currency. Once the yen began weakening again, a rally in equities ensued. Similarly, the selling observed during the last 30 minutes of action coincided with the yen gaining strength once again.
The stock market halted its three-day slide on Tuesday as the S&P 500 gained 0.6%. The tech-heavy Nasdaq (+0.4%) also finished in the green, but couldn't keep pace with the S&P 500 as Apple weighed following its quarterly report. Although the largest tech company beat on earnings and revenue, investors were not pleased by below-consensus iPhone sales. In addition, disappointing guidance for the second quarter also factored into the stock's 8.0% loss. The remainder of the technology sector (-0.7%) was a bit more mixed as large-cap names like Google, Oracle, and Intel posted solid gains while Seagate tumbled 11.3% after missing earnings estimates. Outside of technology, most other cyclical groups finished ahead of the broader market with financials (+1.3%) ending in the lead.
Selling pressure returned on Wednesday as equities ended broadly lower with small caps leading the weakness. The Russell 2000 lost 1.5% while the S&P 500 fell 1.0% as nine of ten sectors finished in the red. Although the session generated plenty of excitement, some of the events that played out over the course of the day were set in motion on Tuesday. Shortly after Tuesday's session on Wall Street ended, the Central Bank of Turkey shocked the market with a 445-basis point hike to 12.00% in an attempt to halt the rapidly weakening lira. The move worked...for 15 hours. The lira strengthened after the announcement, but spent the remainder of the overnight session in a steady retreat, giving up all of its gains. Interestingly, the news of out of Turkey also gave a boost to U.S. equity futures while weighing on the yen. The moves did not hold as futures spent the night in a steady retreat while the yen rallied. The materials sector (+0.5%) withstood the broad-based weakness with help from Dow Chemical, which rallied 4.1% after beating on earnings.
On Thursday, the major averages finished near their highs with the Nasdaq surging 1.8% while the S&P 500 gained 1.1% as all ten sectors ended in the green. Stocks jumped out of the gate and continued climbing steadily into the early afternoon. The S&P 500 notched a session high of 1798.77 just before 13:00 ET, and spent the rest of the trading day near that level. The upbeat start to the session was aided by overnight gains in index futures which rallied while the Japanese yen weakened. The futures market received an additional boost an hour before the cash open when it was reported that fourth quarter GDP rose 3.2%, per the advance estimate. The Nasdaq Composite spent the entire session in the lead with the likes of Amazon.com, Google, Facebook, and Qualcomm providing support. Amazon.com and Google rallied ahead of their earnings while Facebook and Qualcomm posted respective gains of 14.1% and 3.0% after reporting better-than-expected results.
Index Started Week Ended Week Change % Change YTD %
DJIA 15879.11 15698.85 -180.26 -1.1 -5.3
Nasdaq 4128.17 4103.88 -24.29 -0.6 -1.7
S&P 500 1790.29 1782.59 -7.70 -0.4 -3.6
Russell 2000 1144.13 1130.88 -13.25 -1.2 -2.8
4:55PM This week's biggest % gainers/losers (SCANX) : The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).
This week's top 20 % gainers
Technology: INFN (8.73 +23.11%), ACCL (12.58 +20.06%), GAME (6.45 +18.52%), CLFD (24.95 +18.48%), VRNG (4.29 +15.28%), FSL (18.13 +14.41%)
Services: ISLE (9.56 +13.7%)
Healthcare: PRAN (11.6 +39.32%), ARWR (15.34 +30.77%), BDSI (7.85 +28.64%), CSII (33.92 +19.39%), PRTA (30.94 +18.89%), CORT (3.44 +18.79%), ALXN (158.73 +17.44%), HZNP (9.86 +16.88%), TXMD (6.58 +14.43%)
Consumer Goods: UA (108.11 +24.86%), PBI (25.18 +15.5%), HAR (103.43 +14.23%)
Basic Materials: KRA (25.01 +13.39%)
This week's top 20 % losers
Technology: NSR (33.89 -22.95%), VIP (9.69 -22.06%), NTLS (16.41 -18.17%), IGT (14.43 -17.28%), SHOR (7.7 -16.4%)
Services: ESI (29.4 -33.32%), OSTK (21.06 -23.78%), EDMC (6.93 -22.68%), RCII (24.94 -20.26%), ADT (30.04 -19.11%), NGVC (37.97 -17.22%), JCP (5.92 -15.64%)
Healthcare: PGNX (4.78 -22.73%), EPZM (30.4 -19.95%), CTIC (3.19 -19.61%), CEMP (11.89 -16.74%), SPPI (8.41 -15.92%)
Financial: WETF (14.11 -18.9%), FNFG (8.64 -17.21%)
Consumer Goods: BDE (10.65 -16.21%)
4:22PM Closing Market Summary: Stocks End Down Month on Lower Note (WRAPX) : The stock market ended a disappointing month on a lower note as the S&P 500 lost 0.7%, extending its January decline to 3.6%. The Nasdaq outperformed, falling 0.5%, while the Dow Jones Industrial Average slid 1.0%.
Equities began the session sharply lower but a day-long rebound helped the major averages finish the trading day with more palatable losses. The S&P 500 made a very brief afternoon appearance in positive territory before retreating again in the final hour.
Today's cash session kicked off amid significant weakness in Europe where markets were flirting with losses close to 2.0%. The region-wide weakness was led by Germany after the country saw a 2.4% year-over-year drop in retail sales (+1.9% expected). A disappointing CPI reading for the eurozone (+0.7% versus 0.9% consensus) also played a part in the weakness.
Furthermore, the early selling once again coincided with yen strength as dollar/yen dropped as low as 102.00 before staging a modest recovery which accompanied the rebound in equities. Fittingly, the final hour retreat in stocks was accompanied another rally in the yen. Yen futures added 0.5% on Friday, extending their January gain to 3.0%.
Seven of ten sectors ended in the red with energy (-1.5%) seeing the largest decline. The sector was pressured by Dow component Chevron (CVX 111.63, -4.82), which tumbled 4.1% following disappointing earnings. The broader energy sector ended January behind the remaining nine groups with a loss of 6.3%.
Meanwhile, the second-weakest sector of the month, consumer discretionary, lost 1.3%, extending its January decline to 6.0%. The sector was a significant source of the morning weakness as Amazon.com (AMZN 358.69, -44.32) plunged 11.0% following its disappointing earnings and cautious guidance.
Despite the sharp loss in Amazon.com, the discretionary sector was able to climb off its lows with help from Chipotle Mexican Grill (CMG 551.96, +58.00) and homebuilders. Chipotle spiked 11.7% after reporting in-line earnings while iShares Dow Jones US Home Construction ETF (ITB 24.82, +0.43) added 1.8% as Treasury yields continued their retreat (10-yr yield -4 bps to 2.66%).
With regard to other cyclical groups, financials (-1.1%) lagged while industrials (-0.5%), materials (-0.6%), and technology (+0.2%) outperformed.
Notably, the tech sector drew strength from Google (GOOG 1180.97, +45.58), which jumped 4.0% after reporting earnings. Although the company missed its Capital IQ earnings estimate by $0.28, investors were pleased to see a 13% quarterly increase in click revenue.
On the countercyclical side, consumer staples (-0.4%), telecom services (+0.1%), and utilities (+0.8%) outperformed while health care (-0.8%) lagged.
Participation was well above average, which was likely related to month-end activity as 937 million shares traded at the NYSE.
Monday's data will be limited to the New Home Sales report for December, which will be released at 10:00 ET. It is also worth mentioning that China will release its Manufacturing PMI tonight at 20:00 ET, which is likely to generate a reaction in global markets on Monday. The general consensus expects the reading to slip from 51.0 to 50.5.
Nasdaq Composite -1.7% YTD
Russell 2000 -2.8% YTD
S&P 500 -3.6% YTD
Dow Jones Industrial Average -5.3% YTD
Week in Review: Stocks Endure Volatile Week
On Monday, the major averages followed the sharp losses of the prior week with another shaky performance. The Dow Jones Industrial Average and S&P 500 posted respective declines of 0.3% and 0.5% while the Nasdaq (-1.1%) and Russell 2000 (-1.5%) underperformed. Stocks displayed gains at the open but the early strength faded during the initial hour as the Nasdaq headed into the red. The other indices followed suit and the broad retreat continued until about 12:20 ET when stocks reversed, and spent the afternoon in a steady climb. Moderate selling pressure returned during the final hour, knocking the indices off their afternoon highs. Although there was no news responsible for the turn, the morning selling coincided with a strengthening yen while the session low in equities matched the high point for the Japanese currency. Once the yen began weakening again, a rally in equities ensued. Similarly, the selling observed during the last 30 minutes of action coincided with the yen gaining strength once again.
The stock market halted its three-day slide on Tuesday as the S&P 500 gained 0.6%. The tech-heavy Nasdaq (+0.4%) also finished in the green, but couldn't keep pace with the S&P 500 as Apple weighed following its quarterly report. Although the largest tech company beat on earnings and revenue, investors were not pleased by below-consensus iPhone sales. In addition, disappointing guidance for the second quarter also factored into the stock's 8.0% loss. The remainder of the technology sector (-0.7%) was a bit more mixed as large-cap names like Google, Oracle, and Intel posted solid gains while Seagate tumbled 11.3% after missing earnings estimates. Outside of technology, most other cyclical groups finished ahead of the broader market with financials (+1.3%) ending in the lead.
Selling pressure returned on Wednesday as equities ended broadly lower with small caps leading the weakness. The Russell 2000 lost 1.5% while the S&P 500 fell 1.0% as nine of ten sectors finished in the red. Although the session generated plenty of excitement, some of the events that played out over the course of the day were set in motion on Tuesday. Shortly after Tuesday's session on Wall Street ended, the Central Bank of Turkey shocked the market with a 445-basis point hike to 12.00% in an attempt to halt the rapidly weakening lira. The move worked...for 15 hours. The lira strengthened after the announcement, but spent the remainder of the overnight session in a steady retreat, giving up all of its gains. Interestingly, the news of out of Turkey also gave a boost to U.S. equity futures while weighing on the yen. The moves did not hold as futures spent the night in a steady retreat while the yen rallied. The materials sector (+0.5%) withstood the broad-based weakness with help from Dow Chemical, which rallied 4.1% after beating on earnings.
On Thursday, the major averages finished near their highs with the Nasdaq surging 1.8% while the S&P 500 gained 1.1% as all ten sectors ended in the green. Stocks jumped out of the gate and continued climbing steadily into the early afternoon. The S&P 500 notched a session high of 1798.77 just before 13:00 ET, and spent the rest of the trading day near that level. The upbeat start to the session was aided by overnight gains in index futures which rallied while the Japanese yen weakened. The futures market received an additional boost an hour before the cash open when it was reported that fourth quarter GDP rose 3.2%, per the advance estimate. The Nasdaq Composite spent the entire session in the lead with the likes of Amazon.com, Google, Facebook, and Qualcomm providing support. Amazon.com and Google rallied ahead of their earnings while Facebook and Qualcomm posted respective gains of 14.1% and 3.0% after reporting better-than-expected results.
3:48PM Events and conferences of interest for next week : Events and conferences of interest for next week, Feb 3-7, are listed below. For a complete list of next week's events, please see the events calendar.
Monday
Credit Suisse Latin American Investor Conference
Eurozone Manufacturing PMI
RBA Policy
Tuesday
SAP Investor Symposium Bank of America Merrill Lynch 2014 Global Macro Conference - Toronto
Fed's Lacker, Evans
Wednesday
UTX, TYC, AA and ATK at Cowen and Company 35th Annual Aerospace/Defense Conference and Transportation Forum
Eurozone Services PMI
Fed's Plosser, Lockhart
Thursday
BoE, ECB Policy Updates
Fed's Rosengren
Friday
GLW Investor Meeting
MU Analyst Conference
3:32PM Earnings Preview for the week of February 3 - 7 (SUMRX) : Of the companies reporting earnings for the week of February 3 - 7 some of the bigger names include:
Monday:
Pre Market - SYY, GOLD
After Hours - SU, HIG, YUM, APC, PFG, UGI, CCK, MDU, PRE, APU, TMK, CFN, TTWO, GGP, HOLX, EW
Tuesday:
Pre Market - BP, ADM, HCA, IP, UPS, EMR, ETN, DLPH, AGCO, CNC, ACM, BDX, BSX, R, FIS, AXe, SE, GCI, ABG, CLX, MHFI, SIRI, XYL, KORS, CHD, ACI, CME
After Hours - AFL, CHRW, AMP, GILD, BSAC, UNM, GNW, GAS, ATO, CERN, EQR, CVD, DV, BWLD
Wednesday:
Pre Market - MRK, HUM, TWX, ARW, EL, ADP, CTSH, GPI, CCE, RL, AGN, LVLT, NS, IACI, NDAQ, CVG,
After Hours - DIS, PAGP, PRU, PAA, TSO, ALL, ARMK, MRO, LNC, AIZ, CBG, ORLY, GMCR, XL, CNW, FISV, NXPI, RE, CINF, THG, FMC, WGL, GPRE, AKAM, SFLY, TWTR, P, YELP
Thursday:
Pre Market - SNE, GM, AET, FOXA, AZN, CS, EXC, BCE, TEVA, CMI, K, PPL, SEE, INGR, NU, SPR, AAP, NBL, RFP, ADS, WEC, GPK, NUS, PRGO, TW, USG, AOL, VMC, SMG, MWW, DNKN, PBH
During Market Hours - PM
After Hours - ATVI, RSG, FTI, EXPE, LGF, ONNN, TPX, OUTR, LNKD, BYI, VRSN, ATHN, OPEN,
Friday:
Pre Market - MT, CI, LH, UFS, BPL, WYN, AXL, MCO, BEAM, APO, MSG, FLIR, SIRO, CBOE
After Hours - CCJ
12:25PM Notable movers of interest (SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).
Large Cap Gainers
CMG (562.41 +13.86%): Reported Q4 EPS of $2.53 per share (in-line), revs rose 20.7% yoy to $844.1 mln vs $826.23 mln estimate; co expects to open 180-195 restaurants in 2014, expects low to mid single digit comparable restaurant sales excluding any menu price increases; target raised at RBC Capital Markets, JP Morgan, Credit Suisse, Piper Jaffray, Telsey Advisory Group
TSN (37.53 +8.81%): Beat quarterly EPS by $0.09 ($0.72 vs $0.63 estimate), revs rose 4.7% yoy to $8.76 bln vs $8.72 bln estimate; co repurchased 4.6 mln shares for $150 mln
WYNN (215.27 +6.83%): Beat quarterly EPS by $0.54 ($2.27 ex items vs $1.73 estimate), revs rose 17.8% yoy to $1.52 bln vs $1.44 bln estimate; Q4 Macau revs rose 24.6% yoy
Large Cap Losers
MAT (38.9 -9.56%): Missed quarterly EPS by $0.13 ($1.07 vs $1.20 estimate), revs fell 6.3% yoy to $2.11 bln vs $2.37 bln estimate; downgraded to Market Perform from Outperform at Wells Fargo
AMZN (366.2 -9.13%): Missed quarterly EPS by $0.18 ($0.51 vs $0.69 estimate), operating income $510 mln vs -$500 to $500 guidance, revs rose 20.3% yoy to $25.59 bln vs $26.08 bln estimate; sees Q1 revs of $18.2-19.9 bln vs $19.61 bln estimate, operating income of -$200 to $200 mln
NEM (22.4 -7.05%): Co achieved Q4 attributable gold production of 1.5 mln ounces resulting in full year attributable production of 5.1 mln ounces; expects consolidated 2014 gold and copper production to be ~5.0-5.3 mln ounces and 160-175K tonnes, respectively; downgraded to Underperform at RBC Capital Markets
Mid Cap Gainers
ZNGA (4.13 +15.87%): Beat quarterly EPS by $0.01 (-$0.03 ex items vs -$0.04 estimate), revs fell 43.3% yoy to $176.4 mln vs $186.17 mln estimate; sees Q1 EPS of -$0.01, revs of $155-165 mln, sees FY14 EPS of $0.01-0.03; upgraded to Neutral from Sell at Janney
MTW (28.59 +15.47%): Beat quarterly EPS by $0.13 ($0.47 vs $0.34 estimate), revs fell 2.1% yoy to $1.1 bln vs $1.11 bln estimate; sees modest top-line growth in crane revenue in 2014
CPHD (53.37 +12.9%): Beat quarterly EPS by $0.02 ($0.03 ex items vs $0.01 estimate), revs rose 22.6% yoy to $113.3 mln vs $102.15 mln estimate; sees FY14 EPS of $0.24-0.29 ex items vs $0.38 estimate, revs of $446-461 mln vs $447.35 mln estimate; target raised to $65 from $50 at Mizuho, to $55 from $50 at Canaccord Genuity
Mid Cap Losers
N (105.07 -7.34%): Beat quarterly EPS by $0.01 ($0.08 vs $0.07 estimate), revs rose 35.3% yoy to $115 mln vs $111.44 mln estimate; sees FY14 EPS of $0.24-0.26 vs $0.28 estimate, revs of $535-540 mln vs $532.83 mln estimate; sees Q1 EPS of $0.01-0.02 vs $0.05 estimate, revs $119-121 mln vs $119.69 mln estimate
VR (34.99 -5.86%): Missed quarterly EPS by $0.62 ($0.94 vs $1.56 estimate), net premiums written fell 23.0% yoy to $212.7 mln vs $279.5 mln two analyst estimate
NATI (29.63 -5.00%): Missed quarterly EPS by $0.01 ($0.31 vs $0.32 estimate), revs rose 0.2% yoy to $300.8 mln vs $309.53 mln estimate; sees Q1 EPS of $0.15-0.27 vs $0.25 estimate, revs of $272-302 mln vs $298.50 mln estimate; Board approved increase in quarterly dividend to $0.15 from $0.14 per share
JDSU +6.5%, (also upgraded to Outperform from Mkt Perform at William Blair)
7:59AM Micron announces proposed $500 mln offering of senior notes due 2022 (MU) 23.45 :
Co announced that it intends to offer $500 million aggregate principal amount of senior notes due 2022 through an offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act.
The interest rate, redemption provisions and other terms of the Notes will be determined by negotiations between Micron and the initial purchasers.
Micron intends to use the net proceeds from this offering to pay a portion of the costs of extinguishing its obligations with respect to its outstanding 1.875% convertible senior notes due 2014, which may include payments in settlement of conversions of, or to repurchase or redeem, the 2014 Notes.
Earlier today, Micron gave notice to holders of the 2014 Notes that their notes will be redeemed on March 3, 2014, except to the extent such notes are converted or repurchased by Micron prior to such date.
Qualcomm (QCOM) reported first quarter adjusted earnings of $1.26 per share, which is higher than expected, while revenues rose 10.0% year/year to $6.62 billion which is slightly below estimates.First Quarter Key Business Metrics MSMTM chip shipments: 213 million units, up 17 percent y-o-y and 12 percent sequentially. September quarter total reported device sales: ~$61.6 billion, up 16 percent y-o-y and 2 percent sequentially. September quarter estimated 3G/4G device shipments: ~276 to 280 million units, at an estimated average selling price of ~ $219 to $225 per unit. The company issued downside guidance for the second quarter with EPS of $1.15-1.25 and revenues $6.1-6.7 billion. The company issued guidance for fiscal year 2014 with raised EPS to $5.00-5.20, excluding non-recurring items, from $4.95-5.15, which is in line with estimates, with reaffirmed fiscal year 2014 revenues of $26.0-27.5 billion which is line with estimates.
Facebook (FB) reported fourth quarter earnings of $0.31 per share, which is higher than expected, while revenues rose 63.1% year/year to $2.59 billion which is higher than expected. Daily active users (DAUs) were 757 million on average for December 2013, an increase of 22% year-over-year. Mobile DAUs were 556 million on average for December 2013, an increase of 49% year-over-year. Monthly active users (MAUs) were 1.23 billion as of December 31, 2013, an increase of 16% year-over-year. Mobile MAUs were 945 million as of December 31, 2013, an increase of 39% year-over-year. Revenue from advertising was $2.34 billion, a 76% increase from the same quarter last year. Mobile advertising revenue represented approximately 53% of advertising revenue for the fourth quarter of 2013, up from approximately 23% of advertising revenue in the fourth quarter of 2012. GAAP costs and expenses for the fourth quarter of 2013 were $1.45 billion, an increase of 37% from the fourth quarter of 2012, driven primarily by increased headcount and infrastructure expense. Operating margin: GAAP operating margin was 44% for the fourth quarter of 2013, compared to 33% in the fourth quarter of 2012. Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 56% for the fourth quarter of 2013, compared to 46% for the fourth quarter of 2012. Capital expenditures for the fourth quarter of 2013 were $483 million. Cash and marketable securities were $11.45 billion at the end of 2013.
Citrix Systems (CTXS) reported fourth quarter earnings of $1.04 per share, excluding non-recurring items, which is higher than expected, while revenues rose 8.4% year/year to $802.4 million which is line with estimates. Product and license revenue increased a half of a%; Software as a service revenue increased 13%; Revenue from license updates and maintenance increased 11%; Professional services revenue, which is comprised of consulting, product training and certification, increased 28%; Net revenue increased in the EMEA region by 14%, increased in the Americas region by 8% and decreased in the Pacific region by 12%; Deferred revenue totaled $1.4 billion as of December 31, 2013, compared to $1.2 billion as of December 31, 2012, an increase of 18%. The company issued downside guidance for the first quarter with EPS of $0.57-0.60, excluding non-recurring items and revenues of +8-10% to approximately $726.7-740.2 million which is higher than expected. The company issued downside guidance for EPS of $2.85-2.95 and revenues of +8-10% to approximately $3.15-3.21 billion. In addition, Citrix announced today that the co's chief executive officer, Mark Templeton, will be returning from his previously announced leave of absence to resume is role as CEO. Mr. Templeton intends to retire within the next year, subject to the naming of his successor. The board of directors has formed a committee of independent directors to lead a search process to identify the next CEO. David J. Henshall, who has been serving as acting CEO, has been promoted to chief operating officer and will retain a portion of the executive responsibilities that he assumed during Mr. Templeton's absence. Mr. Henshall will continue in his roles as executive vice president and chief financial officer, with responsibility for the company's finance and accounting organizations.
Fortinet (FTNT) reported fourth quarter earnings of $0.15 per share, which is higher thane expected, while revenues rose 17.3% year/year to $177.4 million which is higher than expected. Highlights for the qtr: Billings of $209.8 million, up 20% year over year Cash flow from operations of $46.7 million. Free cash flow of $39.5 million. Cash, cash equivalents and investments of $843.0 million with no debt.
QLogic (QLGC) reported third quarter earnings of $0.29 per share, which is higher than expected, while revenues were unchanged from the year-ago period at $119.4 million. Operating margin: 17.0% GAAP, 23.1% non-GAAP. "During the third quarter, we delivered strong financial results, including non-GAAP earnings per diluted share that exceeded our original guidance range...We are very pleased with our continued focus and execution. As a result of our restructuring activities earlier in the year, we have continued our sharper focus on the server and storage connectivity markets and are now operating more effectively and efficiently as reflected in our financial results."
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