From Briefing.com: 5:58PM Storage Tech assuming flat IT spending next year (STK) 12.95 -0.25: -- Update -- On call, says it doesn't expect climate next year to be any better than this year and that it is assuming IT spending will be flat based on its conversations with customers
5:37PM Storage Tech issues Q4 guidance (STK) 12.95 -0.25: -- Update -- On call, says it is assuming sequential growth in product sales for Q4 in neighborhood of 10-15%, which is lower than sequential growth seen last year (i.e. high-teens).. separately, estimates Q4 services revenue of approx. $200 mln... notes that managing to those levels should allow it deliver on the bottom-line estimate that is currently out there (Multex consensus is $0.35); expects total gross margins of 44-45% for full-year, which is a slight improvement from last year
5:27PM KLA-Tencor guides lower on call (KLAC) 30.55 -3.45: -- Update -- Hearing that on its conference call, KLAC guided Dec qtr revenue to $330 mln and EPS to $0.14 vs Multex consensus estimates of $381 mln and $0.24. In after hours trading, KLAC is trading down 1.05 to 29.50.
5:26PM STMicroelectronics tops estimates (STM) 16.80 -1.50: Reports Q3 (Sep) earnings of $0.15 per share, $0.02 better than the Multex consensus of $0.13; revenues rose 17.5% year/year to $1.65 bln vs the $1.57 bln consensus; says "We share the view that the traditional fourth quarter seasonal upturn in demand will be quite modest this year."
5:11PM Storage Tech confident of its position (STK) 12.95 -0.25: -- Update -- On conference call, said the lack of linearity was more pronounced this quarter, but that it saw strength in its business in the last two weeks... notes that spending for storage, generally, is expected to remain weak, but even so, it anticipates full-year earnings improvements of 30% over last year's pro-forma earnings
4:40PM Conexant beats by 3 cents (CNXT) 0.96 +0.11: Reports Q4 (Sep) loss of $0.16 per share, $0.03 better than the Multex consensus of ($0.19); revenues rose 10.5% year/year to $157.9 mln vs the $157.4 mln consensus
4:37PM SLAB falls $1.40 following earnings; CYMI -2.60 :
4:37PM Cymer misses by 2 cents, issues guidance (CYMI) 21.37 -4.04: Reports Q3 (Sep) earnings of $0.20 per share, $0.02 worse than the Multex consensus of $0.22; revs were $84.5 mln vs consensus of $80.5 mln. "The semiconductor industry has apparently entered the second decline of a double-dip downturn, which will have a negative impact on our fourth quarter operating results." Expects Q4 revs to decline by 20-25% sequentially, or roughly $63-68 mln vs the consensus of $76.7 mln.
4:37PM KLA-Tencor EPS included a gain (KLAC) 30.55 -3.45: -- Correction -- The $0.26 EPS figure reported earlier includes a $9 mln pre-tax gain and therefore is probably not comparable to the $0.23 consensus; excluding this gain and assuming a 24% tax rate, EPS would have been $0.23, in line with the consensus.
4:33PM Silicon Labs beats by $0.07; guides above consensus (SLAB) 24.86 -1.65: -- Update -- Posts Q3 net of $0.18 a share, $0.07 better than the Multex consensus, vs a yr-ago loss of $0.01. Revs rose 26% sequentially to $51.8 mln (consensus $46.88 mln). SLAB sees Q4 rising approx. 10% sequentially, suggesting Q4 rev of approx. $57 mln (consensus $51.13 mln).
4:33PM Storage Tech beats by 4 cents (STK) 12.95 -0.25: Reports Q3 (Sep) earnings of $0.22 per share, $0.04 better than the Multex consensus of $0.18; revs were $501.7 mln vs consensus of $478.6 mln.
4:31PM Computer Assoc beats by 2 cents, raises FY03 guidance (CA) 12.10 -0.79: Reports Q2 (Sep) earnings of $0.04 per share, $0.02 better than the Multex consensus of $0.02; revenues rose 5.3% year/year to $772.0 mln vs the $768.5 mln consensus. Expects Q3 EPS of $0.04-$0.05 (slightly higher than anticipated) on revs of $770-$790 mln; raises FY03 EPS guidance to $0.14-$0.16 from prior guidance of $0.10-$0.13 and reaffirms rev forecast of $3.1-$3.2 bln.
4:27PM Pericom Semi matches estimates (PSEM) 8.52 -0.92: Reports Q1 (Sep) loss of $0.04 per share, in line with the Multex consensus of ($0.04); revenues fell 17.4% year/year to $10.8 mln vs the $10.8 mln consensus.
4:25PM Photon Dynamics misses estimates (PHTN) 22.21 -2.22: Reports Q4 (Sep) loss of $0.08 per share, $0.11 worse than the Multex consensus of $0.03; revs were $18.4 mln, vs consensus of $21.9 mln
4:22PM KLA-Tencor reports Sep qtr (KLAC) 30.55 -3.45: Reports Q1 (Sep) earnings of $0.26 per share, but this figure includes a $9 mln pre-tax gain and is probably not comparable to the Multex consensus of $0.23; revenues fell 25.3% year/year to $375.5 mln vs the $375.7 mln consensus.
3:28PM NEWP plunges to $9.90 based on Q4 guidance :
3:15PM Newport breaking to lows of day on earnings report (NEWP) 11.30 -1.26: Co reports a Q3 loss from continuing operations of $1.55 per share. The results include an inventory reserve charge of $1.13 per share and valuation reserve charge of $0.40. Excluding these items, the Q3 loss appears to be $0.02, which would be in line with consensus. Sales were $45.5 mln vs consensus of $45.2 mln. For Q4, co sees sales of $32-$36 mln (consensus $45.65 mln). Attributes Q4 outlook to low recent order intake levels, the impact of recent order cancellations and the apparent delay in the semi industry recovery.
2:14PM Nasdaq Composite Intraday : -- Technical -- Recent extension of the afternoon pullback in the semi, biotech and software sectors has weighed on the index with the early low and support now being tested. If taken out, the next short term support is in the 1271/1267 area (retracement/50 day sma) with a secondary floor near 1262/1260.
12:39PM National Semi reaffirms Q2 sales forecast (NSM) 13.04 -0.56: Traders citing Bloomberg are saying that NSM reaffirmed their Q2 sales forecast of unchanged to down 5% during their analyst meeting.
1:58PM Intersil (ISIL) 16.39 -1.71: Lehman Brothers and UBS Warbug cut estimates on ISIL to reflect lower margin assumptions for wireless LAN and analog. Lehman lowers their 2003 EPS and revenue estimates on their assumption that overall wireless LAN units are flattish in H203, pricing declines precipitously in 802.11 bln, and any revenue growth occurs by mix shifts onto higher speed g, a and a/g applications. UBS Warburg similarly cuts their 2003 estimates, and sees little room for material upside surprise when ISIL reports on Oct 23. Firm rates Dec qtr prospects as "less certain" and is modeling Dec qtr revenue up 5.5% sequentially to $200 mln in revenue and $0.21 in earnings.
1:31PM Altera (ALTR) 11.15 -0.26: Despite last night's in-line Q302 results of $0.06 per share, stock is under pressure in today's session due to lowered Q4 guidance of $176.5-183.7 mln vs. Multex consensus estimate of $188.4 mln. Prudential is not surprised by warning attributed to challenging environment; lowers estimates and price target to $11 from $12; likes solid execution and consumer showing; maintains Hold rating. Needham & Co also decreases estimates and price target to $21 from $22; reiterates Strong Buy rating based on potential gain to price target, but cautions investors that initiation of new products and stabilization of demand for mainstream families remain critical to investment thesis.
10:38AM Texas Instruments (TXN) 14.09 -3.03: Stock trading down 17% after reporting disappointing Q3 and lowering Q4 revenue guidance... CIBC Wrld Mkts downgraded to SECTOR PERFORM from Sector Outperform and lowered price target to $21 from $30; however, says TXN remains a favorite large cap semiconductor name. Also, Wachovia downgraded to HOLD from Buy, and Wedbush Morgan reiterated Hold.
finance.yahoo.com^SOXX+ALTR+AMAT+AMD+BRCM+CNXT+CYMI+INTC+KLAC+LLTC+LSCC+LSI+MOT+MU+MXIM+NEWP+NSM+NVLS+PHTN+PSEM+STK+TER+TXN+XLNX+^VIX+^IXIC+^SPX&d=t
No one should assume that when I copy and past a Briefing.com comment that I agree with the comments. I think the comments are useful background for discussion. That does not mean I agree with them. For instance here in last night's comments about the upward momentum of the market:
Updated: 22-Oct-02
General Commentary
Here we go again. In impressive fashion, the sector/market shrugged off some negative news and ended the session not only with modest gains, but near the day's highs. As for the Nasdaq, it marked the third straight session in which the index closed above its 50-day moving average.
Last time the index managed that feat was back in August. Index held above its 50-day moving average for better part of two weeks before rolling over and heading back to new 52-wk lows. While more favorable seasonals, improved operating efficiencies and relatively strong market internals suggest that the sector is in a better position, and that the current rally has more room to run, there's no question that bulls are nervous that this will turn into just another false start.
Skepticism is understandable given that there's been little change in the market's/sector's fundamental underpinnings. Earnings growth remains sluggish, IT spending soft and valuations questionable. There's also been no real change in the US/Iraq situation. In other words, traders questioning whether market can sustain advance once technically oversold tone has been completely worked off.
At this point, Briefing.com finds itself in the camp that thinks the sector/market will again probe for a bottom. But before it does, additional gains are likely as sentiment and momentum indicators have yet to reach overextended levels. Not sure exactly how much further Nasdaq will run, but as we noted in a recent Brief the 1400-1428 area looks to be within reach during this leg of the advance.
For all the pre-open/post-close earnings news, please see Briefing.com's Earnings Calendar or In Play pages.
Robert Walberg
I think the short term 1400 to 1428 target is overly optimistic. Does that make Briefing.com right and me wrong? Only time will tell. I could be way too bearish. I don't pretend to have all the answers just a few opinions of my own.
RtS |
