From Briefing.com: 4:08PM Dell misses by $0.01, reports revs in-line; guides Q1 revs slightly below consensus; guides FY13 EPS above consensus (DELL) 18.21 +0.05 : Reports Q4 (Jan) earnings of $0.51 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.52; revenues rose 2.2% year/year to $16.03 bln vs the $15.98 bln consensus. Co issues downside guidance for Q1, sees Q1 revs down about 7% QoQ to ~$14.91 bln vs. $15.09 bln Capital IQ Consensus Estimate. Co issues upside guidance for FY13, sees EPS of exceed $2.13, excluding non-recurring items, vs. $2.04 Capital IQ Consensus Estimate. Large Enterprise had revenue of $4.9 billion in the quarter, a 5% increase with broad-based growth across both client and enterprise solutions and services. Services revenue increased 18%. Public revenue was $3.9 billion, a 1% decrease. The segment was affected by continued weakness in U.S. Federal and Western Europe. Services revenue increased 7% and Dell IP storage revenue was up 32%.
4:30 pm : The Dow's failure to overtake the psychologically significant 13,000 line left stocks to drift lower for a mixed finish. Commodities put on an impressive performance, though.
A modestly higher open was quickly challenged by sellers, but support for the broad market near the neutral line helped restore buying interest. However, the ensuing rebound was capped because the Dow encountered resistance at 13,000, which had gone untested for about 45 months. Resistance there proved too much for stocks, leaving all three major equity averages to steadily surrender their gains and slip into negative territory late in the day. A final flurry of buying helped the averages improve their positions, but final results remained mixed.
Energy stocks maintained impressive gains for the duration of the day. The sector settled with a 0.8% gain, which is better than what any other sector achieved. They were helped by higher oil prices, which climbed nearly 3% to a multi-month closing high above $106 per barrel amid ongoing concerns about the suspension of supply from Iran to parts of Europe.
General strength in other parts of the commodity complex lifted the CRB Index to a 1.6% gain, which stands as its best one-day advance since the first trading session of 2012.
Demand for commodities helped natural resource plays in the basic materials sector trade higher, too, but the sector surrendered some of its gains in conjunction with the broad market's afternoon pullback. The Materials sector still settled with a 0.6% gain.
Health care stocks lagged all session before settling with a 0.7% loss. Medco Health Systems (MHS 63.19, -0.82) shares spiked in the early going, but descended steadily to settle at a session low with a sizable loss despite an upside earnings surprise.
Walmart (WMT 60.07, -2.41) hampered the Dow's efforts by dropping to a new monthly low after the company reported earnings that came short of the consensus estimate. Home Depot (HD 46.92, +0.21) had an upside earnings surprise, while fellow Dow component Kraft (KFT 38.57, +0.57) matched the consensus.
Traders were generally unenthused by long-awaited news that eurozone officials finally agreed to give Greece another bailout after there had been speculation last week that the process would become bogged down. Reports that China's officials moved to loosen policy in the country by trimming reserve requirements for their country's banks.
Treasuries traded lower all session. Relief was provided by neither the stock market's afternoon retreat nor results from an auction of 2-year Notes. The auction drew a bid-to-cover ratio of 3.54, dollar demand of $123.9 billion, and an indirect bidder participation rate of 35.7%. For comparison, an average of the past six auctions results in a bid-to-cover ratio of 3.69, dollar demand of $129.0 billion, and an indirect bidder rate of 34.0%.
Advancing Sectors: Energy +0.8%, Telecom +0.6%, Materials +0.6%, Tech +0.4%, Industrials +0.3%
Declining Sectors: Financials -0.1%, Utilities -0.3%, Consumer Discretionary -0.3%, Consumer Staples -0.4%, Health Care -0.7%DJ30 +15.82 NASDAQ -3.21 NQ100 +0.2% R2K -0.7% SP400 -0.4% SP500 +0.98 NASDAQ Adv/Vol/Dec 955/1.80 bln/1617 NYSE Adv/Vol/Dec 1508/798 mln/1501
7:20AM Ciena lowers Q4 rev guidance; reaffirms non-GAAP gross margin guidance (CIEN) : Co issues downside guidance for Q1 (Jan), lowers Q1 (Jan) revs to ~$415 mln from $435-455 mln vs. $447.65 mln Capital IQ Consensus Estimate. Adjusted gross margin is expected to be in-line with the previous guidance of the low 40s percent range. "We are disappointed in our expected first quarter revenue results. As previously stated, we continue to experience longer customer deployment and revenue recognition cycles as a result of our greater mix of international and solutions-oriented sales. When combined with the impact of the seasonality of our business and the calendar timing of our first fiscal quarter, this trend had a more significant effect than previously anticipated, and resulted in revenue recognition delays on a few solutions-oriented projects with new customers, especially in international markets. However, we believe that first quarter revenue results are not reflective of the underlying strength of the business and ongoing customer demand. Specifically, product orders grew ~20% YoY, shipments were strong, and our ending backlog increased for the quarter. And, as evidence of our ability to drive operating leverage, we expect to be cash flow positive from operations and to achieve positive free cash flow for the quarter."
TriQuint Semiconductor (TQNT) unveiled the industry's smallest dual-band PA duplexer for global 3G and 4G smartphones.
Cisco (CSCO) announced that Magyar Telekom, Hungary's largest telecommunications company, is deploying 4G long-term evolution multimedia services using Cisco mobile Internet solutions.
1:25AM STMicroelectronics announces CFO Carlo Ferro assigned to ST-Ericsson as COO; co's chief accounting officer, Mario Arlati appointed ST CFO (STM) 6.95 :
09:30 am Skyworks upgraded to Buy at Charter Equity: . Charter Equity upgrades SWKS to Buy from Mkt Perform based on a greater likelihood of a big rebound in content in the iPhone 5. They believe Skyworks has landed the LTE slots while retaining the Wi-Fi PA and is in good standing to win one of the dual-band PADs. This could push revenue per phone to as high as $3.60 from the $1.60 it has in the 4S.
1:56 pm S&P Tech Sector +0.3%, In-line With S&P 500
The tech sector is trading higher today, slightly ahead of gains in the broader market. Semiconductors are showing relative weakness in the tech space, however, with the Philly Semi Index trading 0.5% lower. KLAC (-3.4%) is a notable laggard in the chip index, while STM (+6.6%) is showing strength. Among other major indices, the SPY and QQQ are trading 0.4% higher, while the NASDAQ is 0.2% higher on the session. Among tech bellwethers, AAPL (+1.9%) is showing strength, while ORCL (-0.6%) is under pressure.
In earnings, CIEN (+7.3%) lowered Q4 revenue guidance, while DAKT (-10.0%) posted a mixed qtr.
In news, CHA (+2.5%) has singed an agreement with AAPL (+1.9%) to sell iPhones, according to reports. Among a busy day in rumors, we are hearing ASIA (+8.6%), RIMM (+0.5%), and PCS (+0.1%) takeover chatter making the rounds.
Among notable analyst upgrades this morning, AEIS (+7.7%) was upgraded to Buy at Citigroup and DANG (+1.7%) was upgraded to Outperform at Credit Suisse.
Among downgrades, ORCL (-0.6%) was downgraded to Market Perform at JMP, KLAC (-3.5%) and LRCX (-2.9%) were downgraded to Neutral at JP Morgan, INFY (-0.1%) was downgraded to Neutral at Credit Suisse, OVTI (-0.7%) was downgraded to Neutral at Lazard and RAX (-0.3%) was downgraded to Neutral at Cowen.
BRCD (-1.6%), DELL (+0.2%), and INTU (+0.3%) are some notable names in tech scheduled to report results today after the close. |
