From Briefing.com: 4:30 pm : Debt and macro concerns continue to underpin pessimism among market participants, prompting many to pare risk. As such, the broad market logged its fourth straight loss.
Sentiment among early traders turned sour with the release of the second estimate of third quarter GDP, which expanded at a clip of just 2.0%. In general, economists had thought that the headline number would go unrevised at a 2.5% growth rate. The downward revision made it less surprising to learn from the latest FOMC minutes that some Committee members believe that the outlook should be eased further.
Uncertainty about the progress of eurozone bailout plans also continues to hang over financial markets. However, headlines that the IMF has established a new liquidity line helped stocks extend a rebound that began when stocks successfully held their ground at the prior session's low, which also marked a monthly low.
Even though the rebound effort took the major equity averages into positive territory, their stay there was brief. The eventual evaporation of buying interest left stocks to drift lower into the close, culminating in another down day for the major averages. Including an incremental loss late last week, the S&P 500 has finished lower in four straight sessions for a cumulative loss of more than 5%.
Advancing Sectors: Health Care +0.2%, Consumer Staples +0.1%
Declining Sectors: Consumer Discretionary -0.1%, Tech -0.2%, Telecom -0.4%, Industrials -0.8%, Materials -0.8%, Financials -0.9%, Energy -1.0%, Utilities -1.3%DJ30 -53.59 NASDAQ -1.86 NQ100 +0.2% R2K -0.8% SP400 -0.6% SP500 -4.94 NASDAQ Adv/Vol/Dec 896/1.79 bln/1595 NYSE Adv/Vol/Dec 1160/876 mln/1862
O2Micro International (OIIM) was issued 19 claims under United States patent number 8,015,452 for its Flexible Bus architecture.
7:07AM JA Solar misses by $0.33, beats on revs; lowers FY11 shipment guidance (JASO) 44.85 : Reports Q3 (Sep) loss of $0.36 per share, $0.33 worse than the Capital IQ Consensus Estimate of ($0.03); revenues fell 31.6% year/year to $388 mln vs the $373.48 mln consensus. Solar cell and module shipments in the fourth quarter are expected to be in the range of ~310 MW to 330 MW. The co currently estimates that total cell and module shipments for full year 2011 will be ~1.6 GW. This compares to the co's previous guidance of 1.8 GW. "While ongoing macro-economic and industry volatility continued to restrain demand, overall product shipments were at the low end of our guidance at 445MW. With the European debt crisis limiting the amount of financing available for solar power projects, we did not see the anticipated demand recovery in major European markets during the month of Sept. However, JA Solar performed relatively well as customers increasingly relied on top tier suppliers with strong liquidity. In the current market environment, where customers have more choices of products and suppliers, we have seen customers shifting more of their orders to suppliers who can deliver high power products together with a strong brand, a reputation for quality, and a healthy balance sheet. JA Solar's suite of industry-leading high-performance products gives us a clear advantage and this is particularly evident in our module shipments for the third quarter, which grew by more than 45% sequentially. Our gross margin for the quarter has been impacted by an inventory provision of US$21.7 million. Excluding this inventory provision, gross margin would have been positive."
5:32AM Suntech Power misses by $0.44, beats on revs; lowers FY11 rev guidance, below consensus (STP) 2.23 : Reports Q3 (Sep) loss of $0.64 per share, $0.44 worse than the Capital IQ Consensus Estimate of ($0.20); revenues rose 8.9% year/year to $809.8 mln vs the $774.29 mln consensus. Co issues downside guidance for FY11, sees FY11 revs of $3.0-3.1 bln vs. $3.12 bln Capital IQ Consensus Estimate and below prior guidance of $3.2-3.4 bln. Full year 2011 capital expenditures are expected to be ~$400 mln, compared to previous guidance of $340-360 mln. Co maintains its wafer capacity at 1.6GW and cell and module production capacity at 2.4GW.
3:46AM LDK Solar misses by $0.35, misses on revs; guides Q4 revs in-line (LDK) 2.83 : Reports Q3 (Sep) loss of $0.87 per share, $0.35 worse than the Capital IQ Consensus Estimate of ($0.52); revenues fell 38.1% year/year to $417.9 mln vs the $517.99 mln consensus. Co issues in-line guidance for Q4, sees Q4 revs of $440-520 mln vs. $497.85 mln Capital IQ Consensus Estimate. Co sees wafer shipments between 200 MW and 270 MW, and module shipments between 180 MW and 270 MW, in-house polysilicon production between 2,200 MT and 2,800 MT, in-house cell production between 220 MW and 250 MW and gross margin between 2% and 7%. With regard to Q3, co states: "During the third quarter, our business was impacted by the continued downturn in the solar industry. Weak market demand and rapidly declining average selling prices throughout the solar supply chain resulted in shipment volumes and revenues lower than what we previously anticipated. While we continue to believe that the significant opportunities to meet global energy needs with solar power will drive long-term market growth, in the near-term we expect challenging conditions in the solar industry to continue. As such, we remain focused on strengthening our balance sheet, increasing our operating efficiencies and improving our cost structure."
Hewlett-Packard (HPQ $25.80 -1.04) reported fourth quarter earnings of $1.17 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $1.13, while revenues fell 3.5% year/year to $32.12 billion versus the $32.12 billion consensus. The company issued downside guidance for the first quarter with EPS of $0.83-0.86, excluding non-recurring items, versus the $1.12 consensus. The company issued downside guidance for fiscal year 2012 with EPS of at least $4.00, excluding non-recurring items, versus the 4.69 Capital IQ Consensus Estimate. In the Americas, fourth quarter GAAP net revenue was $14.5 billion, down 4% YoY and down 5% when adjusted for the effects of currency. Non-GAAP net revenue in the Americas was $14.6 billion, down 3% year over year and down 4% when adjusted for the effects of currency. Europe, the Middle East and Africa GAAP revenue of $11.7 billion was down 6% year over year and down 10% when adjusted for the effects of currency.
Netflix (NFLX $72.03 -2.44) in filing guided for an unexpected fiscal year 2012 net loss. The company states: "Consistent with our fourth quarter guidance, our domestic streaming and DVD gross cancellations continued to steadily decline in October and the first half of November, while gross additions of new streaming subscribers remained strong. As a result, consistent with our prior guidance, we continue to expect our domestic streaming net additions to be about flat for November as a whole and strongly positive for December. We expect that consolidated quarterly revenue will be relatively flat until we can achieve positive net subscriber additions. As a result of the relatively flat consolidated revs and previously announced increased investment in our International segment, we expect to incur consolidated net losses for the year ending December 31, 2012 (consensus $1.19; FY12 rev growth consensus is +15%). We cannot assure you that our domestic streaming cancellations will continue to decline or that gross new additions will remain strong. If we are unable to repair the damage to our brand and reverse negative subscriber growth, our business, results of operations, including cash flows, and financial condition will continue to be adversely affected."
Daktronics (DAKT $9.06 -0.43) reported second quarter earnings of $0.09 per share, $0.04 worse than the Capital IQ Consensus Estimate of $0.13, while revenues rose 7.1% year/year to $135.9 million versus the $129.12 million consensus. The company issued upside guidance for the third quarter with revenues approaching $118.7 million versus the $109.67 million consensus. "Given the positive top line performance, we were disappointed in the gross margin performance. The good news in this regard is that much of the underperformance was due to one-time costs. These one-time costs included adjustments to reserves for preexisting warranty claims, increased cost estimates on an international project, and new product introduction costs. The impact of these and other one-time items reduced our gross profit percentage by more than two percentage points. We were pleased to see growth in our backlog as we enter what is typically the slowest quarter of our fiscal year. With the strong backlog and despite the fact we have fewer work days in the quarter with the holidays, we could see net sales in the third quarter approaching to the level of the first quarter of fiscal 2012. Taking into account the non-recurring items for this quarter, we also expect that gross profit margins will improve in the third quarter of fiscal 2012."
LDK Solar (LDK $2.82 -0.01) reported a third quarter loss of $0.87 per share, $0.35 worse than the Capital IQ Consensus Estimate of ($0.52), while revenues fell 38.1% year/year to $417.9 million versus the $517.99 million consensus. The company issued in-line guidance for the fourth quarter with revenues of $440-520 million versus the $497.85 million consensus. The company sees wafer shipments between 200 MW and 270 MW, and module shipments between 180 MW and 270 MW, in-house polysilicon production between 2,200 MT and 2,800 MT, in-house cell production between 220 MW and 250 MW and gross margin between 2% and 7%.
12:24 pm Technology Sector Trading In LIne With Overall Market (NVDA)
The tech sector is trading slightly lower today along with losses in the broader market. Semiconductors are showing relative weakness in the tech space with the Philly Semi Index trading 1.4% lower. STM (-3.9%) is a notable laggard in the chip index. Among other major indices, the S&P 500 is trading 0.1% lower, while the NASDAQ is trading 0.1% lower and the QQQ is trading 0.1% lower on the session.
Among tech bellwethers, AAPL (+1.3%) is showing strength, whereas INTC (-1.1%) is a notable underperformer.
In earnings last night, HPQ (-3.1%) reported a slight Q4 earnings beat, but guided lower. Elsewhere, ADI (-3.4%) reported a Q4 miss and guided lower, while BRCD (+12.5%) posted a beat.
Among notable analyst ratings changes this morning, Needham upgraded NVDA (+2.2%) to Buy, while INTC (-1.1%) and ALSK (-6.5%) were downgraded to Underperform at Raymond James.
NUAN (-1.2%) is the notable name in tech scheduled to report results today after the close.
10:06 am JinkoSolar Holding Missed Third Quarter Expectations (JKS)
JinkoSolar Holding (JKS $5.10 -0.60) reported a third quarter loss of $1.62 per share, $1.87 worse than the Capital IQ Consensus Estimate of $0.25.
Revenues rose 23.8% year/year to $279.2 million versus the $277.95 million consensus.
The company issued downside guidance for the fourth quarter with revenues of $180-210 million versus the $254.71 million consensus. For Q4 2011, JinkoSolar expects total solar module shipments to be approximately 180 MW to 210 MW. The company's in-house annual silicon wafer, solar cell and solar module production capacities are expected to remain approximately 1.2 GW each by the end of the year of 2011.
09:59 am Hewlett-Packard Guides Below Fiscal Year 2012 Guidance (HPQ)
Hewlett-Packard (HPQ $25.69 -1.17) reported fourth quarter earnings of $1.17 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $1.13. Revenues fell 3.5% year/year to $32.12 billion versus the $32.12 billion consensus.
The company issued downside guidance for the first quarter with EPS of $0.83-0.86, excluding non-recurring items, versus the $1.12 consensus, The company issued downside guidance for fiscal year 2012 with EPS of at least $4.00, excluding non-recurring items, versus the $4.69 Capital IQ Consensus Estimate.
In the Americas, fourth quarter GAAP net revenue was $14.5 billion, down 4% year/year and down 5% when adjusted for the effects of currency. Non-GAAP net revenue in the Americas was $14.6 billion, down 3% year over year and down 4% when adjusted for the effects of currency. Europe, the Middle East and Africa GAAP revenue of $11.7 bln was down 6% year over year and down 10% when adjusted for the effects of currency. |
