RECAP & STOCKS TO WATCH FOR WEDNESDAY, 1-17-01
Blue chips took the lead today as the earnings news got ready to take center stage. The Nasdaq Composite continued to consolidate its gains from last week, pressured by weakness in the chip and networking sectors.
The Nasdaq Composite slipped 7 points on Friday to close at 2,618. Volume was 2.0 billion shares, with 99 new highs compared to 22 new lows. Blue chips diverged from the Nasdaq all day as the Dow gained 127 points to finish at 10,652. Volume on the Big Board was 1.2 billion shares with 172 stocks making new highs compared to 15 new lows.
One day doesn’t signal a bull market, but so far so good after the reports on Tuesday evening:
Juniper (JNPR) posted another blow-out quarter and gave positive Q1 guidance, Intel (INTC) met its numbers, Applied Micro Circuits (AMCC) beat the consensus earnings estimate, but was a little shy on the revenue end, Novellus (NVLS) handily beat estimates, Handspring (HAND) easily surpassed consensus numbers, and Macromedia (MACR) announced better than expected results. Aside from Intel (INTC), which was little changed, the rest of the group was up nicely in after hours trading, setting the stage for a solid open on Wednesday. (More earnings details below)
From a technical standpoint, support on the Semiconductor Index (SOX) stands at 630, with resistance in the 730-750 area. Support on the Nasdaq Composite stands at 2,500, with resistance at 2,800.
The Nasdaq Composite on a daily basis: tradewindsonline.net
Earnings Spotlight: This week is a HUGE week for earnings with the following companies reporting for Q4: AMTD, NITE, JPM, AMD, AAPL, BGEN, CTXS, ENTU, EXTR, ITWO, IBM, KLAC, MACR, MERQ, PTEC, RBAK, SANM, SYMC, TUTS, and XLNX on Wednesday; ADPT, AVCI, CHKP, EFNT, ALTR, BMCS, BBSW, CLRN, CMRC, CNXT, CPTH, EMLX, FLEX, DNA, INKT, IDTI, IOM, JDAS, MUSE, MSFT, NTIQ, SCNT, SFA, SONS, SSUNW, SYBS, SYMM, TMTA, and TXCC on Thursday; LSCC on Friday.
Applied Micro (AMCC): Reports Q3 earnings of $0.16 a share, $0.02 better than the First Call consensus of $0.14, vs year-ago earnings of $0.03. Net revenues were $143.3 million, an increase of 213% over the $45.8 million reported in the same period of fiscal 2000.
Actuate Software (ACTU): Reports Q4 earnings of $0.07 a share, $0.02 better than the First Call consensus of $0.05, vs year-ago earnings of $0.02. Revenues totaled $34.5 million, compared with revenues of $16.1 million during Q4 1999 representing year-over-year growth of 114%.
RF Micro Device (RFMD): Reports Q3 earnings of $0.05 a share, in line with the First Call consensus of $0.05, vs year-ago earnings of $0.07. Revenues for the quarter were approximately $79.9 million, an increase of 9.2% over revenues of $73.2 million for the corresponding quarter of fiscal 2000 and a decrease of 21.8% versus the previous quarter's revenues of $102.2 million; Company warns for Q4; sees EPS of $0.02-0.03; current EPS estimate is $0.06.
Handspring (HAND): Reports Q2 loss of $0.07 a share, $0.09 better than the First Call consensus of ($0.16). Revenues rose 632.2% to $115.62 mln from a year-ago of $15.79 mln. Gross margins increased to 31.4%, up slightly from the prior quarter.
Juniper Networks (JNPR): Reports Q4 earnings of $0.24 a share, $0.06 better than the First Call consensus of $0.18, vs year-ago earnings of $0.17; revenues rose 550.0% to $295.39 mln from a year-ago of $45.44 mln. In the evening conference call, the CFO guided Q1 revenue up 12-15% from Q4.
Intel (INTC): Reports Q4 earnings of $0.38 a share, in line with the First Call consensus of $0.38, vs year-ago earnings of $0.34. Revenues rose 6.0% to $8.70 bln from a year-ago of $8.21 bln. Company sees Q1 revenues down 15% sequentially. Despite guiding down Q1 revenue numbers, Intel sees capital expenditures rising to $7.5 bln in 2001 from $6.7 bln in 2000, much stronger than the market had expected. Intel says that despite near-term uncertainty, it will use its financial strength to invest for the future. Clarifying 15% sequential sales guidance, INTC cites 3 factors for lackluster outlook: 1) Normal seasonality 2) Channel inventory overhang of PC systems and 3) Uncertainty regarding overall economic condition. Says it has seen most of these issues before, but has rarely experienced all three together. Stocks to watch from the INTC news are KLAC, NOVLS, and AMAT.
Macromedia (MACR): Reports Q3 earnings of $0.29 a share, $0.02 better than the Zacks consensus of $0.27, vs year-ago earnings of $0.15. Revenues of $103.3 million were a 61% increase over revenues of $64.3 million reported in the quarter ended 12/31/99.
Elantec Semicon (ELNT): Reports Q1 earnings of $0.37 a share, $0.01 better than the First Call consensus of $0.36, vs year-ago earnings of $0.13. Revenues rose 159.1% to $40.71 mln from a year-ago of $15.71 mln. Company issues upside pre-announcement for Q2; sees EPS of about $0.38; current EPS estimate is $0.37.
Novellus (NVLS): Reports Q4 earnings of $0.76 a share, $0.06 better than the First Call consensus of $0.70, vs year-ago earnings of $0.27. Pro-forma revenue for the fourth quarter was a record $425.1 million, an increase of 122% over fourth quarter 1999 reported net sales of $191.7 million. |
