| | | From Briefing.com: Following some tumultuous trading action overnight, which featured a 17-point decline in the S&P futures, the yield on the German bund spiking to 0.79%, and a 2.8% drop in China's Shanghai Composite, the U.S. stock market managed to right itself in Thursday's trading, aided by a rebound in the European and U.S. bond markets that helped drive market rates lower.
In turn, a better-than-expected earnings report from Alibaba Group (BABA 86.00, +6.00, +7.5%), some encouraging initial claims data, and a bounce in beaten-down market leaders like Apple (AAPL 125.26, +0.26, +0.1%), the biotech stocks, the semiconductor issues, and the transports supported Thursday's rebound effort.
The S&P 500 information technology sector (+0.7%) was at the front of the sector pack on Thursday, running alongside the financial sector (+0.7%), which has been the market's best-performing sector so far this month.
Sector gains were broad-based with 54 of the 66 information technology sector components gaining ground, none more so than Yahoo! (YHOO 43.81, +2.15, +5.2%), which rode Alibaba's coattails on Thursday.
Notable news items from sector components included the following:
CA, Inc. (CA 31.40, -0.05, -0.2%): After Thursday's close, reported Q4 (Mar) earnings of $0.56 per share, which was ahead of analysts' average expectation. Revenues fell 5.6% year/year to $1.02 bln, slightly below expectations. Total bookings decreased 12% year-over-year to $1.07 bln.Total revenue backlog decreased 15% year-over-year to $6.5 bln.
Qualcomm (QCOM 68.36, +0.55, +0.8%): According to Reuters, an EU source told it that European Union antitrust regulators are not investigating the company on its patent licensing deals. Separately, Qualcomm filed a mixed securities shelf offering for an undisclosed amount.
Teradata (TDC 41.80, -3.14, -7.0%): Before Thursday's open, reported Q1 (Mar) earnings of $0.30 per share, excluding non-recurring items, well shy of analysts' average expectation. Revenues fell 7.3% year/year to $582 mln, which was also below estimates. For FY15, sees EPS at the low end of $2.50-2.70 and reaffirmed revenues are expected to be flat to down 2% to ~$2.68-2.73 bln. Teradata's Board of Directors authorized an additional $300 million for share repurchases under open market program, total authorization is now $431 million.
Yahoo! (YHOO 43.81, +2.15, +5.2%): Stock traded up nicely in response to Alibaba's better than expected earnings report. Separately, Yahoo! announced that its Mobile Developer Suite has been modified to now include analytics for the Apple Watch
Elsewhere in the technology space:
Alcatel-Lucent (ALU 3.64, +0.06, +1.7%): Before Thursday's open, reported Q1 (Mar) loss of 0.03 per share, which was shy of analysts' average expectation. Gross margin expanded 230 basis points year-over-year to 34.6%.
Alibaba (BABA 86.00, +6.00, +7.5%): Before Thursday's open, reported Q4 (Mar) earnings of $0.48 per share, which was comfortably ahead of analysts' average expectation. Revenues rose 44.7% year/year to $2.81 bln, also ahead of estimates. GMV transacted on China retail marketplaces in the quarter ended March 31, 2015 was RMB600 billion (US$97 billion), an increase of 40% compared to the same quarter of 2014. GMV transacted on Taobao Marketplace in the quarter ended March 31, 2015 was RMB381 billion (US$61 billion), an increase of 29% compared to the same quarter of 2014. Mobile GMV in the quarter ended March 31, 2015 was RMB304 billion (US$49 billion), an increase of 157% compared to the same quarter of 2014. Alibaba Group also announced that Daniel Zhang, currently Chief Operating Officer of Alibaba Group, will become CEO of Alibaba Group, effective May 10, 2015. Current CEO, Jonathan Lu, will work with Daniel to ensure a successful transition in the coming months. Jonathan will remain on the board of directors of Alibaba Group as Vice Chairman.
Atmel (ATML 7.96, +0.42, +5.6%): After Thursday's close, reported Q1 (Mar) earnings of $0.11 per share, excluding non-recurring items, which was ahead of analysts' average expectation. Revenues fell 6.1% year/year to $316.9 ml, also ahead of estimates. For Q2, sees revenues of $310-326 mln. The highe end of the guidance range is below analysts' average expectation. Separately, the company announced that its President and CEO, Steven Laub, has decided to retire as an officer and director as of August 31, 2015. He will continue to serve in his current capacities while an orderly leadership transition is accomplished. The board of directors will conduct the process to choose Laub's successor and will consider internal and external candidates for the position.
Blackberry (BBRY 9.72, -0.08, -0.8%): Company and T-Mobile US (TMUS 33.00, 0.00, 0.0%) announced that the BlackBerry Classic smartphone will be made available in T-Mobile retail stores, and on its network beginning May 13, 2015
Newport (NEWP 19.08, -0.09, -0.5%): After Thursday's close, reported Q1 (Mar) earnings of $0.36 per share, excluding non-recurring items, which was ahead of analysts' average expectation. Revenues rose 6.7% year/year to $156.7 ml, also ahead of estimates. Co issues in-line guidance for Q2, saying it sees revenues of $154-161 mln. Newport added, "We are encouraged by our first quarter performance, and expect to have record sales and non-GAAP net income again in 2015."
Priceline (PCLN 1213.48, -50.67, -4.5%): Before Thursday's open, reported Q1 (Mar) earnings of $8.12 per share, which was well ahead of analysts' average expectation. Revenues rose 12.1% year/year to $1.84 bln, also ahead of estimates. For Q2, sees EPS of $10.95-11.75, excluding non-recurring items, and revenues of flat to +7% (Approx $2.123-2.271 bln). The high end of both guidance ranges is below analysts' average expectations.
Qorvo (QRVO 75.56, +6.50, +9.3%): After Thursday's close, reported Q1 (Mar) earnings of $1.11 per share, well ahead of estimates. Revenues rose 46.4% year/year to $634.89 mln, also beating expectations. For Q2, sees EPS of $1.00-1.10 and revenues of $660-670 mln.
Yelp (YELP 47.01, +8.79, +23.0%): The Wall Street Journal, citing people familiar with the matter, said Yelp is exploring a sale
Analyst Action:
Activision Blizzard (ATVI 24.45, +1.25, +5.2%): target raised to $27 from $25 at Barclays; Overweight
Alcatel-Lucent (ALU 3.64, +0.06, +1.7%): target lowered to $4 from $4.40 at MKM Partners; Neutral
Amazon.com (AMZN 426.89, +7.79, +1.9%): Amazon target raised to $600 from $450 at Bernstein
Atmel (ATML 7.96, +0.42, +5.6%): upgraded to Buy from Neutral at Sun Trust Robinson Humphrey
Fiserv (FISV 79.20, +0.31, +0.4%): downgraded to Hold from Buy at Argus
Motorola Solutions (MSI 60.01, +1.26, +2.1%): upgraded to Market Perform from Underperform at Raymond James... upgraded to Buy from Hold at Gabelli & Co; target $76
Qorvo (QRVO 75.56, +6.50, +9.1%): target raised to $90 from $84 at Craig Hallum; Buy... upgraded to Buy from Hold at Needham; target $88... target raised to $90 from $86 at Ascendiant Capital Markets... target raised to $70 from $65 at Barclays; Equal Weight
TripAdvisor (TRIP 78.48, +1.68, +2.2%): target lowered to $99 from $108 at Deutsche Bank; Buy
(Disclosure: Briefing.com has a business relationship with Yahoo!)
4:52 pm Universal Display beats by $0.02, reports revs in-line; reaffirms FY15 revs guidance ( OLED) : Reports Q1 (Mar) GAAP earnings of $0.03 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.01; revenues fell 17.5% year/year to $31.22 mln vs the $31.26 mln consensus.
Co reaffirms guidance for FY15, sees FY15 revs of ~$190-230 mln vs. $211.46 mln Capital IQ Consensus Estimate.
4:47 pm Sierra Wireless beats by $0.05, beats on revs; guides Q2 EPS below consensus, revs below consensus ( SWIR) : Reports Q1 (Mar) earnings of $0.22 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.17; revenues rose 24.1% year/year to $150.4 mln vs the $147.1 mln consensus.
Co issues downside guidance for Q2, sees EPS of $0.21-0.24, excluding non-recurring items, vs. $0.25 Capital IQ Consensus Estimate; sees Q2 revs of $153-156 mln vs. $157.11 mln Capital IQ Consensus Estimate.
4:45 pm SunEdison Semiconductor reports EPS in-line, misses on revs ( SEMI) : Reports Q1 (Mar) loss of $0.22 per share, in-line with the Capital IQ Consensus Estimate of ($0.22); revenues fell 3.3% year/year to $199 mln vs the $202.11 mln consensus. Gross profit for the 2015 first quarter fell 26.8% to $17.2 million, or 8.6% of net sales, compared to $23.5 million, or 11.4% of net sales, for the 2014 fourth quarter. Compared to the prior year, gross profit grew 107.2%, representing 460 basis points of margin expansion year-over-year. Gross profit and gross margin percentage declined sequentially primarily due to lower pricing and increased year-over-year due to higher unit volume and lower manufacturing cost which more than offset lower pricing.
4:34 pm Microchip beats by $0.02, reports revs in-line; guides Q1 EPS in-line, revs below consensus; Co to acquire MCRL for $14 a share ( MCHP) : Reports Q4 (Mar) earnings of $0.68 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.66; revenues rose 10.9% year/year to $547.2 mln vs the $546.16 mln consensus. Co issues mixed guidance for Q1, sees EPS of $0.69-0.73 vs. $0.72 Capital IQ Consensus Estimate; sees Q1 revs of $547-564 mln vs. $570.18 mln Capital IQ Consensus Estimate.
MCHP to acquire Micrel ( MCRL) for $14 a share. Please see 16:08 comment for more details.
4:08 pm Micrel to be acquired by Microchip Technology ( MCHP) for $14.00 per share (shares halted) ( MCRL) : Micrel shareholders may elect to receive the purchase price in either cash or shares of Microchip common stock. The acquisition price represents a total equity value of about $839 million, and a total enterprise value of about $744 million, after excluding Micrel's cash and investments.
Microchip announced that its Board of Directors has authorized an increase in the existing share repurchase program to 20.0 million shares of common stock from the approximately 2.5 million shares remaining under the prior authorization. Under the program, co intends to repurchase the approximate number of shares it issues in the Micrel acquisition, which is expected to result in the transaction having the accretive effects of a cash transaction from a financial perspective. The acquisition is expected to be mildly dilutive to Microchip's non GAAP earnings per share immediately after the close, but is expected to be accretive in the first full quarter after completion of the repurchase of the number of shares issued in the transaction.
4:30 pm Sierra Wireless to acquire connectivity services provider Accel, with closing expected in June 2015; terms not disclosed ( SWIR) :
4:29 pm Univ Elec misses by $0.02, misses on revs; guides Q2 EPS below consensus, revs below consensus ( UEIC) : Reports Q1 (Mar) earnings of $0.46 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.48; revenues rose 2.2% year/year to $132.71 mln vs the $137.04 mln consensus.
Gross margins were 28.4%, compared to 28.3%.
"During the first quarter, we repurchased approximately 69,000 shares for $4.0 million at an average stock price of $57.89. Given the positive long-term trends in our industry, our stronger than ever market position and the trading range of our stock, we plan to aggressively buy back our shares over the next three months."
Co issues downside guidance for Q2, sees EPS of $0.63-0.73, excluding non-recurring items, vs. $0.78 Capital IQ Consensus Estimate; sees Q2 revs of $143-151 mln vs. $154.99 mln Capital IQ Consensus Estimate.
4:27 pm Diodes beats by $0.01, misses on revs; guides Q2 revs below consensus ( DIOD) : Reports Q1 (Mar) earnings of $0.26 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.25; revenues fell 1.8% year/year to $206.2 mln vs the $213.63 mln consensus.
Co issues downside guidance for Q2, sees Q2 revs of $212-228 mln vs. $228.85 mln Capital IQ Consensus Estimate."We expect gross margin to be 31.5%, plus or minus 2%. Operating expenses are expected to be ~22.4% of revenue, plus or minus 1%. We expect our income tax rate to be 25%, plus or minus 3%, and shares used to calculate diluted EPS for the second quarter are anticipated to be ~49.3 million."
4:27 pm NVIDIA reports EPS in-line, revs in-line; guides Q2 revs below consensus ( NVDA) : Reports Q1 (Apr) earnings of $0.33 per share, in-line with the Capital IQ Consensus Estimate of $0.33; revenues rose 4.5% year/year to $1.15 bln vs the $1.16 bln consensus.
Co issues downside guidance for Q2, sees Q2 revs of $989.8 mln to $1.03 bln vs. $1.18 bln Capital IQ Consensus Estimate.Sees GAAP and non-GAAP gross margins of 55.7 percent and 56.0 percent, respectively, plus or minus 50 basis points. GAAP operating expenses are expected to be approximately $474 million; non-GAAP operating expenses are expected to be approximately $425 million.
4:14 pm Amtech Systems beats by $0.15, misses on revs; guides Q3 revs above consensus ( ASYS) : Reports Q2 (Mar) loss of $0.19 per share, $0.15 better than the Capital IQ Consensus Estimate of ($0.34); revenues rose 91.3% year/year to $24.3 mln vs the $25.3 mln consensus. Co issues upside guidance for Q3, sees Q3 revs of $33-35 mln vs. $30.47 mln Capital IQ Consensus Estimate.
Gross margin for the quarter ending June 30, 2015, is expected to be in the high 20s percent range, negatively influenced by anticipated revenue deferrals due to higher shipment levels, with operating margin slightly negative.
11:56 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (109) outpacing new highs (54) (:SCANX) : Stocks that traded to 52 week highs: AAPC, AAWW, ACLS, AHS, ALSK, ATSG, AVY, BAMM, BANC, BLKB, BLUE, CMT, CORI, EMKR, EQIX, GIG, GURE, HILL, HME, HUBS, IACI, ING, MASI, MATX, MLM, MOFG, NGHC, NHTC, NICE, OBAS, OCR, OSBC, PGTI, PHH, PLCE, PMC, PRAH, PRMW, PVTB, QLTY, RGEN, SAR, SBNY, SFG, SKX, SSRG, TA, TMK, TROV, TSE, USCR, WD, WIBC, WIX
Stocks that traded to 52 week lows: AAU, AHGP, AKBA, ALLT, ALXA, ANR, APIC, ARG, AVP, BOTA, BRT, BV, CCD, CEL, CHCI, CIM, CKP, CLDN, CNSL, COVS, CPLA, CPTA, DEO, DTF, DX, DXM, EE, EGY, EMES, FHCO, FPO, FSAM, FTEK, FTK, FUEL, GLPW, GLRE, HCP, HOV, ICAD, IKAN, INF, INOV, INPH, IO, IPHS, ISH, LF, LMOS, LOV, LXP, MILL, MNKD, MRIN, MTGE, MYOS, MZF, NETE, NGD, NLY, NPF, NRP, NSPH, NUO, NURO, OFG, OPXA, ORN, OSUR, OXGN, PANL, PESI, PFL, PFMT, PMT, PNF, PNX, PRGN, QRHC, RBS, RDEN, RFIL, RFP, RLJE, RLOC, RNWK, RSO, RXII, SRET, SSYS, TGEN, THS, TPVG, TROX, TRT, TSU, TTF, UFPT, UK, UNXL, UTSI, VRA, VRNS, VSAR, WIN, WLKP, WPG, XONE, YGE
ETFs that traded to 52 week highs: none
ETFs that traded to 52 week lows: none |
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