More from Briefing.com after a brief word from our poster. NVLS reported just about what we should all have expected by now. Sun Micro as well. The after hours action is weak as should be expected. I still think we will retest 282 and probably head lower. We still have not seen the real blow off yet that should mark the end of the Bear Market but it is very likely to happen heading into October of this year. That is unless we as Americans' feel completely safe that Iraq has no weapons of mass destruction. Oh and the economy must show marked improvement. Now back to our regularly scheduled update:
From Briefing.com: 4:57PM Flextronics (FLEX) 9.51 +0.17: Company reaffirms guidance for Q2 (Sep), sees EPS of $0.07-0.10 vs Multex consensus of $0.08.
4:46PM Novellus comments on IT spending (NVLS) 24.29 +0.11: -- Update -- On its call, company says corporate spending has been very slow, but Q3 is seeing a slight uptick. Consumer spending has slowed and is more than offsetting the uptick on the corporate side... stock at 23.70.
4:43PM Novellus suffers from push-outs (NVLS) 24.29 +0.11: -- Update -- On its call, company says bookings guidance of $220 mln could be "as low as $200 mln".....Over the last three weeks, NVLS has seen "significant push-outs from two key customers.".... stock at 23.62.
4:40PM Novellus lowers bookings and shipment guidance (NVLS) 24.29 +0.11: -- Update -- On its conference call, company lowers Q3 bookings guidance to $220 mln vs July 22 guidance of $250 mln... shipments should be $245 mln vs earlier guidance of $260 mln due to push-outs from key customers.... stock at 23.70.
4:38PM Sun Microsystems says no improvement in IT spending environment (SUNW) 3.83 -0.13: During mid-qtr update, says it has seen no improvement in IT spending environment, and notes some would say it has even worsened... expects fiscal Q1 revenues will now be closer to the bottom end (i.e. closer to 15%) of the 10-15% sequential decline range it previously provided, plus or minus a small amount... sees no significant change in gross margin rate or operating expense spending level versus Q4.
4:38PM Novellus guiding lower (NVLS) 24.29 +0.11: -- Update -- On its conference call, company guides lower. Q3 revenue and EPS goes to $230 mln and breakeven vs Multex consensus of $250 mln and $0.10...stock at 24.06.
4:34PM Integrated Device (IDTI) 13.65 +0.28: Company reaffirms for Q2 (Sep), still sees revs of $91.8 mln vs Multex consensus $93.5 mln.
10:03AM New 52-Week Lows : The list is dominated by semiconductor names such as TER, AEIS, LTXX, HELX, FCS, VSEA, CHRT, PMCS. Other standouts on the new 52-wk low list include A, FTS, AFC, ABS, BJ, AZN.
9:36AM WLAN chip makers to see pricing pressures - Digitimes : Digitimes.com reports that Taiwan-based Gemtek Technology says the wireless LAN industry will start to see drastic price cutting in Q4 as Taiwanese IC designers compete head-on with co's such as ATML, BRCM, and AGR.A; by 2H03, Taiwanese suppliers will have a chance to capture some share in the price-oriented clone market. (Although not mentioned in the article, ISIL may see some pressure as well.)
9:29AM Retail PC data indicates healthy back-to-school sales : Salomon Smith Barney says that U.S. retail PC back-to-school sales are actually tracking 5-10% above normal seasonal levels so far, indicating a healthy rebound despite all of the recent bad news from hardlines retailers. Separately, Prudential says that retail PC data still appears to be pointing towards a relatively healthy back-to-school season, suggesting PC vendors may have had higher channel inventory levels than previously thought; based on encouraging week-on-week and qtr-to-date trends, firm continues to believe the risk/reward on HPQ, GTW, and AAPL is favorable at current levels.
7:59AM Micron downgraded at Morgan Stanley (MU) 17.83: Morgan Stanley downgrades to UNDERWEIGHT from Equal-Weight; spot prices peaked in mid-July, and despite tight supply DDR contract prices did not increase in the second half of Aug and the premium may unwind; back-to-school PC demand has been lackluster, and while DRAM supply ests are increasing, PC demand and macroeconomic growth ests are declining.
7:51AM STMicroelectronics upgraded at Morgan Stanley (STM) 20.32: Morgan Stanley out of Europe says that expectations remain too high for the majority of European semi stocks, and will have to be significantly lowered moving through 2H02; however, one exception to this is STM, which firm upgrades to OVERWEIGHT from Equal-Weight; STM's proprietary product portfolio, blue-chip customer base, and proven ability to manage internal capacity suggests that the co will be consistently profitable and generate positive cash inflows in each of the next 6 qtrs. Firm has some generally cautious comments on ASML, IFX, and BESI.
7:37AM UBS downgrades 4 semi equipment stocks, cuts sector outlook : UBS Warburg downgrades 4 semi production equipment stocks, primarily on valuation: cuts NVLS and LGVN to BUY from Strong Buy, and LRCX and NEWP to HOLD from Buy; also, the recovery in the economy has remained lackluster and SPE order momentum has gone from slowing to declining; consequently, firm now believes that SPE revs will contract 20-25% in 2002 (vs 15-20% previously) and for 2003 are now looking for 15-25% growth (previously +30-35%). In addition, firm cuts ests and price targets for LSI, NSM, TXN, and CY based on lowered industry forecasts.
6:10PM Novellus Systems (NVLS) 24.29 +0.11: This semi equipment giant is down 2% after the close as the company provided an update on how Q3 is going. The stock is holding up despite a fairly large warning. The company now sees Q3 revenue and EPS of $230 mln and breakeven vs Multex consensus of $250 mln and $0.10. Perhaps more troubling were its comments that NVLS has seen significant push-outs from two key customers in just the past three weeks. Bookings guidance was lowered to $220 mln from its July guidance of $250 and it could be as low as $200 mln. Since the stock is holding up, it's clear that a warning was being priced in given Applied Materials' (AMAT 13.44 +0.19) recent cautious comments. Bottom line, there's not a whole lot of new information here. It is good to hear that corporate spending is seeing a slight uptick in Q3, however, it's being more than offset by slowing consumer spending. Briefing.com continues to be cautious on the semi equipment sector and we expect the news to remain negative in the near future. We do not view the group as an attractive bottom fishing opportunity at current levels. Of note, Intel (00C0 17.14 +0.30) has its mid-quarter update Sep 5. Some are expecting a reduction in its cap-ex budget for 2003 which would be bad news for the equipment makers. Not much movement in other semi equipment stocks 4pm close: AMAT -0.10, KLAC -0.52. -- Robert J. Reid, Briefing.com
5:26PM After Hours Thursday Changes vs the 4 pm close: This is the time of the quarter when earnings are minimal but there was some action related to Mid-Q updates. During its call Sun Micro (SUNW -3.3%) said it see no improvement in the IT spending environment and that Q1 revenue will be closer to the bottom end of the 10-15% sequential decline range it previously provided. The call from Novellus (NVLS -2.3%) was also not well received. The company guided down for Q3, now expecting revenue of $230 mln (consensus $250 mln) and EPS of breakeven (consensus $0.10). As for Q3 bookings, guided to $220 mln and potentially as low as $200 mln vs previous guidance of $250 mln; indicated that has seen a significant push-outs from two key customers. Also stated that consumer spending has slowed and is more than offsetting an uptick on the corporate side. Not all the news was negative as Flextronics (FLEX +2.9%) reaffirmed guidance for Q2 (Sep). Starbucks (SBUX -1.9%) was weaker after reporting that same store sales rose 7%. In after hours trade the S&P futures, currently at 914.70, is trading 3.3 points below fair value, the Nasdaq 100 futures, currently at 951, is trading 12 points below fair value while the Nasdaq 100 AHI is down 4.08. For further details, be sure to visit Briefing.com's In Play, Guidance and Earnings Calendar pages. -- Jim Schroeder, Briefing.com
3:33PM Intel (INTC) 17.13 +0.29: In accordance with UBS Warburg's cautious group outlook for H2 (downgraded LRCX, LGVN, NEWP, and NVLS pre-open), firm expects INTC to reduce the mid-point of revenue guidance from the current $6.6 bln to a mid-point in the range of $6.44-6.57 bln at its mid-qtr update on 9/5. UBS notes PC data points have been weak, expects weakness in corporate spending to continue, and sees a modestly less favorable mix of processor shipments. Firm leaves their Q3 revenue est of $6.57 bln unchanged (below the current $6.6 bln mid-point) and lowers their price target to $26.
2:40PM Micron (MU) 17.11 -0.72: After holding steady yesterday (Soundview reiterated their belief in a stronger H2), shares continue on their 5-day slide, today aided by a Morgan Stanley downgrade to Equal-weight from Overweight (see In-Play for details) and est cuts at Prudential on a more muted seasonal H2 recovery (firm had expected a meaningful ASP move in H2). Prudential's Taiwan tech tour this week suggests that overall DRAM pricing will remain level in the near-term ... remains bullish on MU as a cycle play into 2003/2004; expects supply side consolidation to aid co and maintains their Buy rating and $39 price target.
1:29PM Jabil Circuit (JBL) 18.35 +0.36: Co remains analysts's top pick in the EMS industry; stock has outperformed peers YTD and moves 2% higher on yesterday's manufacturing agreement with PHG: JBL will assume production responsibility for 70% of co' consumer electronics division (9 facilities) at a cost of about $230 mln. Investec upgrades JBL to STRONG BUY from Buy on their belief stock is under-valued: sees acquisition bolstering the co's engineering strength and considerably enhancing its low-cost capacity structure. CSFB preliminarily ests the contract to contribute $400-450 mln in revenues and $0.02-0.04 in EPS in FY03 and maintains their Buy rating and $25 price target.
10:29AM California Micro (CAMD) 6.65 unch: In pre-market note, Adams Harkness initiated with a Buy rating and price target of $11 following major restructuring which it shifted production of high-volume components to third-party foundries while consolidating internal manufacturing of low-volume, higher-margin products. Firm believes benefits of integrated passives will fuel their continued adoption, particularly in mobile phones, and sees increased penetration into existing markets as key growth driver. Management has shifted business focus from telecom/networking industry to strategic growth markets: mobile devices, computing applications, high brightness LED lighting. Firm believes that, as investors become more aware of positive changes, CAMD's valuation can expand toward mid-point of peer group on enterprise-value-to-revenue basis.
finance.yahoo.com^SOXX+A+AEIS+AGRa+ALTR+AMAT+AMD+AAPL+ASML+ATML+BESI+BRCM+CAMD+CHRT+CY+FCS+GTW+HELX+HPQ+IDTI+IFX+INTC+ISIL+JBL+KLAC+LGVN+LLTC+LRCX+LSCC+LSI+MOT+MU+MXIM+NEWP+NSM+NVLS+PMCS+SUNW+TER+TXN+VSEA+XLNX+^VIX+^IXIC&d=t
RtS |
