From Briefing.com: In a characteristically bull move, the market languished with modest losses throughout the morning on Wednesday and then sprung to life in the afternoon to finish the session on a winning note. Once again, the positive standing could be traced back to the tech sector, which helped the Nasdaq outperform on a relative basis.
With hump day now behind us, that makes two out of three winning sessions this week. That's a good win percentage for the bulls, but when it comes down to it, the market this week has been one that the Swiss could appreciate, which is to say it has had a neutral disposition. To wit, the Dow is only 6 points higher than where it began the week, the S&P 500 is down 5 points, and the Nasdaq, true to recent form, leads all comers with an 11-point gain since Friday. Yep, it's summer all right.
As far as Wednesday's session was concerned, buying enthusiasm was held in check initially as participants didn't necessarily find inspiration in Fed Governor Bernanke's comments on the potential for continuing disinflation. The market, though, ultimately determined there was nothing too threatening in his commentary. Left to its own devices, and underpinned by another round of decent earnings reports and comments on economic prospects from Dallas Fed President McTeer, it drifted upward in steady fashion, paced by leadership from the semiconductor stocks and select Internet shares like Amazon.com (AMZN 40.11 +5.24) and eBay (EBAY 114.14 +2.97). The former company impressed with its earnings report after Tuesday's close and the latter will get a chance to do the same when it reports after the close on Thursday.
In the interim, market participants will be left to digest another round of decent earnings news in which the majority of companies reporting after Wednesday's close either met, or beat, consensus estimates. Included in that number were several technology companies, including Qualcomm (QCOM 36.25 +0.01), Symantec (SYMC 42.60 -0.40), Electronic Arts (ERTS 77.66 +2.00), EDS (EDS 22.95 +0.15), Veritas Software (VRTS 27.91 +0.29), Lam Research (LRCX 21.79 +0.45) and Macromedia (MACR 22.62 +0.37).
The guidance from those companies, and others, won't incite a broad market rally on Thursday. At the same time, it won't undermine bullish sentiment either. We would expect the tech sector to set the tone for trading. That means there will be some good days and some not-so-good days over the near-term. By and large, though, it means we're likely to remain in a period of consolidation with the path of least resistance still to the downside.
For further detail on earnings news, be sure to visit Briefing.com's In Play, Earnings Calendar, and Guidance pages.--- Patrick J. O'Hare, Briefing.com
6:28PM Corning announces 45 mln share stock offering (GLW) 8.68 +0.45: Corning Incorporated announces plans to offer 45 mln shares of common stock at price of $8.15 per share, under its existing $5 bln universal shelf registration statement.
6:17PM STMicroelectronics clarification (STM) 23.13 +0.42: -- Update -- Reuters Research is telling us that the comparable actual is $0.09, as we reported earlier, vs consensus of $0.12.
5:41PM Wednesday After Hours Price levels are as of 4 pm EST: It was a mixed day on Wall Street, as stocks opened higher and then faded into negative territory. Towards the end of the session (around 2 pm) the buyers stepped back in and pushed the averages back into the black. The market continued to be flooded with earnings releases, and even more were slated for this evening. Some of the larger reports are listed below. The Dow closed higher by more than 35 points and stands at 9194, the S&P 500 gained half a point and closed at 988. S&P 500 futures were at 986, one point below fair value. NASDAQ 100 futures were up one point from fair value at 1271.
AT&T Wireless (AWE 8.28 +0.48) reported Q2 (Jun) earnings of $0.08 per share, $0.04 better than the Reuters Research consensus of $0.04. Revenues rose 6.3% yr/yr to $4.16 bln and ahead of the $4.04 bln consensus. AWE says it expects to report services revenue growth at the upper end of the previously stated 5%-7% range for full-year 2003.
SYMC Symantec (SYMC 45.73 +3.13) announced Q1 (Jun) earnings of $0.45 per share, $0.06 better than the Reuters Research consensus. Revenues rose 23.8% yr/yr to $391.1 mln vs the $382.4 mln consensus. The co is guiding non-GAAP earnings of $0.41 at midpoint of rev guidance for the next quarter. For FY04, co guides non-GAAP earnings of $1.96 per share and revs of $1.665 bln
Qualcomm (00C0 35.13 -1.12) released Q3 (Jun) earnings of $0.33 per share, $0.03 better than the Reuters Research consensus of $0.30. Revenues were unchanged from the year-ago period at $891.3 mln. Company sees EPS of $0.27-0.29 vs consensus of $0.29.
Electronic Arts (ERTS 76.30 -1.36) reported Q1 (Jun) earnings of $0.13 per share, $0.10 better than the Reuters Research consensus of $0.03. Revenues rose 6.3% yr/yr to $353.0 mln and better than the $339.7 mln consensus. Company sees EPS of $0.35-0.42 vs consensus of $0.40
Overture Services (OVER 24.09 -0.06) announced Q2 (Jun) earnings of $0.12 per share, $0.06 better than the Reuters Research consensus. Revenues rose 74.0% yr/yr to $265.3 mln ahead of the $248.1 mln consensus.
EDS (EDS 22.50 -0.45) reported Q2 (Jun) earnings of $0.34 per share, excluding a $0.06 asset- write down and restructuring charge, in line with the Reuters Research consensus of $0.34. Revenues rose 2.4% yr/yr to $5.52 bln and was better than the $5.40 bln consensus. Company sees H2 EPS of $0.70-0.80, R.R. consensus is $0.69 and revenues of approximately $11 bln..
Computer Assoc(CA 23.54 +1.30) released Q1 (Jun) earnings of $0.14 per share, $0.05 better than the Reuters Research consensus of $0.09. Revenues rose 6.3% yr/yr to $813.0 mln and were better than the $803.9 mln consensus. Company sees Q2 EPS of $0.13-0.15, consensus is $0.10, revenues of $805-825 mln, consensus of $824 mln.
Cirrus Logic (CRUS 4.40 -0.30) reported Q1 (Jun) loss of $0.20 per share, excluding a $7.6 mln restructuring charge, $0.06 worse than the Reuters Research consensus of ($0.14). Revenues fell 21.9% yr/yr to $40.7 mln and were below the $42.6 mln consensus. CRUS sees Q2 revenues in the range of $45-50 mln, R.R. consensus $47 mln.
The earnings parade continues tomorrow as a slew of companies report. As always, we will be right there for you.
For more detail on these, and other after hours developments, be sure to visit Briefing.com's In Play, Earnings Calendar and Guidance pages.--Brian Bolan, Briefing.com
5:40PM Qualcomm inventory looks good (QCOM) 36.25 +0.01: -- Update -- on the call management states that there was a shortage of supply in India and inventory levels are below competitors.
5:27PM STMicroelectronics reports below consensus, guides in line (STM) 23.13 +0.42: Reports Q2 (Jun) earnings of $0.09 per share, which includes ex items, and may not be comparable to Reuters Research consensus of $0.12; revenues rose 11.2% year/year to $1.70 bln vs the $1.69 bln consensus. Company sees Q3 revenues of $1.7-1.78 bln vs consensus of $1.74 bln. In touch with Reuters for clarification on comparable EPS actual.
5:18PM Power Integrations beats by a penny, guides inline. (POWI) 24.49 -0.41: Reports Q2 (Jun) earnings of $0.13 per share, $0.01 better than the Reuters Research consensus of $0.12; revenues rose 9.8% year/year to $29.8 mln vs the $29.7 mln consensus. Company sees Q3 EPS of $0.14-0.16 vs R.R. consensus of $0.15. For Y03 sees EPS of $0.55-0.60 vs consensus of $0.57.
5:12PM Macromedia beats by a penny, ex items, guides Q3 revs in line with consensus (MACR) 22.62 +0.37: Reports Q1 (Jun) pro forma earnings of $0.11 per share, ex items, $0.01 better than the Reuters Research consensus of $0.10; revenues fell 1.4% year/year to $83.1 mln vs the $83.2 mln consensus. Co guides Q3, sees revenues of $85-90 mln vs estimate of $87.9 mln.
5:10PM Cirrus Logic misses by $0.06, ex items; guides for Q2 (CRUS) 4.70 0.00: Reports Q1 (Jun) loss of $0.20 per share, excluding a $7.6 mln restructuring charge, $0.06 worse than the Reuters Research consensus of ($0.14); revenues fell 21.9% year/year to $40.7 mln vs the $42.6 mln consensus. Co. sees Q2 revenues in the range of $45-50 mln, R.R. consensus $47 mln.
5:05PM Lam Research reports in line (LRCX) 21.79 +0.45: Reports Q4 (Jun) earnings of $0.02 per share, ex items, in line with the Reuters Research consensus of $0.02; revenues fell 0.5% year/year to $186.1 mln vs the $188.0 mln consensus.
4:57PM Varian beats by a penny (VARI) 32.29 -0.41: Reports Q3 (Jun) earnings of $0.34 per share, $0.01 better than the Reuters Research consensus of $0.33; revenues rose 5.6% year/year to $208.7 mln vs the $209.4 mln consensus. The Co guides Q4 pro forma earnings (excl. restructuring costs) of between $0.37 and $0.40 vs. Reuters Research consensus earnings of $0.41 per share.
4:57PM Skyworks reports in line, ex items (SWKS) 8.76 +0.29: Reports Q3 (Jun) pro forma loss of $0.03 per share, ex items, in line with the Reuters Research consensus of ($0.03); revenues rose 9.6% year/year to $150.2 mln vs the $149.8 mln consensus.
4:46PM AXT Inc misses, guides higher (AXTI) 1.53 +0.05: Reports Q2 (Jun) loss of $0.17 per share, $0.03 worse than the Reuters Research consensus of ($0.14); revenues were unchanged from the year-ago period at $8.5 mln. Company sees Q3 loss from continuing ops of $0.11-0.12 vs consensus of a loss of $0.15.
4:40PM Brooks Automation beats by $0.08. (BRKS) 18.19 +1.45: Reports Q3 (Jun) loss of $0.29 per share, $0.08 better than the Reuters Research consensus of ($0.37); revenues fell 2% year/year to $84.0 mln vs the $80.4 mln consensus.
4:37PM Plexus Corp beats by $0.03, ex items; Guides for Q4 (PLXS) 11.96 +0.01: Reports Q3 (Jun) loss of $0.06 per share, excluding $0.29 in restructuring costs, $0.03 better than the Reuters Research consensus of ($0.09); revenues fell 16.7% year/year to $195.6 mln vs the $195.2 mln consensus. Co. sees Q4 EPS in the range a loss of $0.04 to breakeven, excluding restructuring costs, R.R. consensus calls for a loss of $0.04. Also sees Q4 revenues in the range of $200-210 mln, R.R. consensus is $202 mln.
4:33PM Micrel reports in line, guides Q3 revs in line (MCRL) 11.19 +0.73: Reports Q2 (Jun) loss of $0.01 per share, in line with the Reuters Research consensus of ($0.01); revenues fell 11.3% year/year to $49.1 mln vs the $49.1 mln consensus. Co guides Q3, sees revenues of approx $50.5-53 mln (based on expected sequential growth 3-8%) vs R.R. consensus of $51.3 mln.
4:28PM Silicon Storage beats by $0.05, guides above consensus. (SSTI) 4.64 -0.36: Reports Q2 (Jun) loss of $0.05 per share, $0.05 better than the Reuters Research consensus of ($0.10); revenues fell 7.6% year/year to $64.2 mln vs the $62.0 mln consensus. Company sees Q3 EPS between a loss of $0.03 and breakeven, R.R.consensus is ($0.10).
4:27PM LSI Logic beats by $0.06, guides for next quarter (LSI) 8.72 +0.32: Reports Q2 (Jun) loss of $0.02 per share, $0.06 better than the Reuters Research consensus of ($0.08); revenues fell 7% year/year to $407.2 mln vs the $406.0 mln consensus. For Q3, co guided net income per share (excl. items) in the range of $0.01 to $0.03 with sequential revenue growth of 8%-12%.
4:26PM Intersil reports in line, ex items, guides Q3 below consensus (ISIL) 26.33 +0.44: Reports Q2 (Jun) earnings of $0.16 per share, excluding amortization of intangibles as well as a gain and loss on equity investments, in line with the Reuters Research consensus of $0.16; revenues rose 43.6% year/year to $125.5 mln vs the $174.3 mln consensus. Co guides Q3, sees EPS of $0.15, vs R.R. consensus of $0.18, and revenues of $128-132 mln vs estimate of $185.6 mln.
4:17PM Foundry Ntwks beats by $0.03 (FDRY) 17.30 +0.14: Reports Q2 (Jun) earnings of $0.13 per share, $0.03 better than the Reuters Research consensus of $0.10; revenues rose 27.6% year/year to $95.7 mln vs the $93.3 mln consensus.
9:54AM Micron (MU) 14.81 +0.51: Soundview Technology upgrades Neutral to OUTPERFORM. Target $9 to $21. Believes seasonal inventory build in consumer should lead to a 6-8 week window where DRAM pricing will likely continue to rise.
9:48AM Corning (GLW) 8.48 +0.25: Deutsche Securities upgrades Hold to BUY. Target $6 to $10. Believes co's long restructuring is paying off in a faster than expected return to profitability.
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