From Briefing.com: 4:30 pm : Movements in the stock market today were closely correlated with comments about debt talks in the eurozone, even if headlines suggested that officials there are doing little more that paying lip service to the topic.
The major equity averages spent the first part of the session chopping along listlessly before participants were prompted to send stocks lower. Their efforts came in response to reports about the possibility that an EU Summit this coming weekend could be postponed. Any delay would only underscore the lack of progress in eurozone debt talks.
However, word that leaders of France and Germany will meet in coming days began to bring buyers back into the fold. That headline came right about the time that the S&P 500 was able to find technical support just below the psychologically-significant 1200 line.
Financials emerged as leaders, but the broad market was initially slow to follow the sector's lead. Financials finished near their session high with a 1.8% gain. Regional lender Fifth Third (FITB 11.63, +0.97) was especially strong on the back of a better-than-expected quarterly report. In contrast, American Express (AXP 46.19, +0.06) only found higher ground in the final minutes, despite an upside earnings surprise of its own.
eBay (EBAY 32.15, -1.03) matched the consensus earnings estimate, but its shares still traded sharply lower, making the stock one of the worst performers in the Nasdaq, which lagged its counterparts for the second straight session. Tech was the real source of weakness for the Nasdaq, though. The sector logged a 0.5% loss for the session, adding to the 2% decline that it suffered yesterday.
There was deluge of data today, including initial jobless claims for the week ended October 15. Claims totaled 403,000, which is spot on with what had been expected, among economists polled by Briefing.com. The latest tally is also little changed from the upwardly revised count of 409,000 claims recorded for the prior week.
The latest Philadelphia Fed Survey improved to 8.7 for October from the -17.5 that was posted in September. The October reading had been expected to remain negative, but improve to merely -8.8.
Existing home sales set an annualized rate in September of 4.91 million units, which is only slightly less than the pace of 4.92 million units that had been generally anticipated among economists surveyed by Briefing.com. The pace recorded for September marked a slowdown from the rate of 5.06 million units posted for the prior month.
Leading Indicators increased by 0.2%, which narrowly missed the 0.3% increase that had been broadly expected.
Advancing Sectors: Financials +1.8%, Materials +1.0%, Energy +0.7%, Utilities +0.6%, Industrials +0.6%, Consumer Staples +0.5%, Consumer Discretionary +0.4%, Health Care +0.1%
Declining Sectors: Telecom -0.1%, Tech -0.5%DJ30 +37.16 NASDAQ -5.42 NQ100 -0.5% R2K +0.3% SP400 +0.4% SP500 +5.51 NASDAQ Adv/Vol/Dec 1193/2.04 bln/1288 NYSE Adv/Vol/Dec 1806/958 mln/1174
6:13PM Hewlett-Packard announced Shane Robison will retire as executive vice president and chief strategy and technology officer effective Nov. 1 (HPQ) 24.74 -0.24 : HP also announced that, in an effort to drive strategy, research and development closer to the company's businesses, it will not be replacing the role of chief strategy and technology officer.
5:54PM Jabil announces 14% increase to quarterly dividend to $0.08 (JBL) 19.30 -0.24 :
4:28PM Cymer reports EPS in-line, misses on revs; guides Q4 revs below consensus (CYMI) 41.36 -2.94 : Reports Q3 (Sep) earnings of $0.36 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.36; revenues fell 9.2% year/year to $128.7 mln vs the $130.2 mln consensus. Co issues downside guidance for Q4, sees Q4 revs of $128 mln vs. $131.80 mln Capital IQ Consensus Estimate.
4:19PM Altera misses by $0.02, misses on revs; guides Q4 revs below consensus (ALTR) 33.03 -0.39 : Reports Q3 (Sep) earnings of $0.57 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.59; revenues fell 4.7% year/year to $522.5 mln vs the $542.8 mln consensus. Co issues downside guidance for Q4, sees Q4 revs of down 7-11% QoQ to ~$465.0-485.9 mln vs. $532.90 mln Capital IQ Consensus Estimate; gross margin 69.5-70.5%. "Customer reaction to changing global macroeconomic conditions reduced industry demand. Despite this near-term deceleration we saw further growth from our 40-nm products and are very pleased with the successful launch of our 28-nm FPGAs."
4:15PM Freescale Semi beats by $0.06, reports revs in-line (FSL) 12.13 +0.27 : Reports Q3 (Sep) earnings of $0.29 per share, $0.06 better than the Capital IQ Consensus Estimate of $0.23; revenues fell 0.9% year/year to $1.14 bln vs the $1.13 bln consensus. Adjusted gross margin was 46.1%. Microcontroller net sales were $395 mln, compared to $430 mln in the second quarter of 2011 and $418 mln in the third quarter of 2010. RF, Analog and Sensor net sales were $306 mln, compared to $315 mln in the second quarter of 2011 and $272 mln in the third quarter of 2010.
4:13PM Rambus beats by $0.13, beats on revs (RMBS) 16.19 -0.25 : Reports Q3 (Sep) earnings of $0.12 per share, excluding non-recurring items, $0.13 better than the Capital IQ Consensus Estimate of ($0.01); revenues rose 216.4% year/year to $100.3 mln vs the $89.5 mln consensus. Revenue for the third quarter of 2011 was $100.3 million, up 51% sequentially from the second quarter of 2011 primarily due to the recognition of royalties from new licensing agreements signed in the second and third quarter of 2011. As compared to the third quarter of 2010, revenue was up 216% primarily due to the revenue recognized from agreements signed since the third quarter of 2010.
4:12PM Celestica beats by $0.01, beats on revs; guides Q4 EPS in-line, revs below consensus (CLS) 7.86 -0.12 : Reports Q3 (Sep) earnings of $0.26 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.25; revenues rose 18.3% year/year to $1.83 bln vs the $1.8 bln consensus. Co issues guidance for Q4, sees EPS of $0.23-0.29, excluding non-recurring items, vs. $0.26 Capital IQ Consensus Estimate; sees Q4 revs of $1.70-1.85 bln vs. $1.9 bln Capital IQ Consensus Estimate.
4:12PM Seagate Tech beats by $0.03, misses on revs (STX) 12.06 +0.01 : Reports Q1 (Sep) earnings of $0.34 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.31; revenues rose 4.2% year/year to $2.81 bln vs the $2.9 bln consensus. Co announces the European Commission announced on October 19, 2011 that they have approved under the EU Merger Regulation, Seagate's proposed acquisition of Samsung's hard disk drive assets. The company will continue to work with other regulatory bodies to secure additional approvals in the coming weeks. Seagate believes the transaction will close by the end of calendar year 2011.
4:11PM SanDisk beats by $0.13, reports revs in-line (SNDK) 45.50 +0.32 : Reports Q3 (Sep) earnings of $1.20 per share, $0.13 better than the Capital IQ Consensus Estimate of $1.07; revenues rose 14.8% year/year to $1.42 bln vs the $1.42 bln consensus. Co reports Q3 non-GAAP gross profit margin of 44.3% vs. 42-44% guidance. "We again delivered record revenue and strong profitability, driven by robust demand in our diversified end markets... Our broad portfolio of innovative storage solutions positions us exceedingly well to capitalize on our numerous growth opportunities in smart mobile devices and consumer and enterprise computing platforms."
4:08PM Microsoft reports EPS in-line, beats on revs (MSFT) 27.04 -0.09 : Reports Q1 (Sep) earnings of $0.68 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.68; revenues rose 7.3% year/year to $17.37 bln vs the $17.19 bln consensus. The Microsoft Business Division reported $5.62 billion in first quarter revenue, an 8% increase from the prior year period which included the launch of Office 2010. The Server & Tools segment posted $4.25 billion in first quarter revenue, a 10% increase over the prior year period and the sixth consecutive quarter of double-digit revenue growth. Windows and Windows Live Division revenue was $4.87 billion, a 2% increase over the prior period, in line with the PC market. The co offers updated fiscal 2012 operating expense guidance, including Skype and the associated acquisition-related expenses, of $28.6 billion to $29.2 billion. "We saw customer demand across the breadth of our products, resulting in record first-quarter revenue and another quarter of solid EPS growth."
4:06PM SanDisk -- Earnings Mover (SNDK) 45.50 : Stock jumps 1.5 pts in initial reaction to earnings, currently up near the $47.00 level. The 4.5-mth highs are directly overhead at $47.65.
4:06PM Flextronics reports EPS in-line, beats on revs; guides Q3 EPS below consensus, revs below consensus (FLEX) 6.11 +0.01 : Reports Q2 (Sep) earnings of $0.22 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.22; revenues rose 8.4% year/year to $8.04 bln vs the $7.74 bln consensus. Co issues downside guidance for Q3, sees EPS of $0.18-0.22 vs. $0.24 Capital IQ Consensus Estimate; sees Q3 revs of $7.3-7.7 bln vs. $7.95 bln Capital IQ Consensus Estimate.
4:03PM Ixia beats by $0.06, reports revs in-line (XXIA) 9.52 +0.01 : Reports Q3 (Sep) earnings of $0.16 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $0.10; revenues rose 9.0% year/year to $77.3 mln vs the $76.5 mln consensus.
4:02PM Maxim Integrated beats by $0.05, reports revs in-line; guides Q2 EPS below consensus, revs below consensus (MXIM) 24.97 -0.18 : Reports Q1 (Sep) earnings of $0.46 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.41; revenues rose 1.6% year/year to $636 mln vs the $632.8 mln consensus. Co issues downside guidance for Q2, sees EPS of $0.30-0.34 vs. $0.40 Capital IQ Consensus Estimate; sees Q2 revs of $580-620 mln vs. $627.76 mln Capital IQ Consensus Estimate.
1:56PM Suntech Power response to Solar Trade petition - currently reviewing the petition filed (STP) 2.01 -0.07 : Co responded and said "We're currently reviewing the petition filed with the US International Trade Commission and the US Department of Commerce. Anyone can file one of these actions; having filed an action is in no way a validation from the US government as to the merits of the action. Companies listed in the petition are not subject to a single blanket judgment, and each individual company, including Suntech, will respond in accordance with ITC & DOC guidelines..."
8:39AM Ultratech beats by $0.01, misses on revs (UTEK) 19.13 : Reports Q3 (Sep) earnings of $0.39 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.38; revenues rose 44.9% year/year to $54.9 mln vs the $58 mln consensus. Co states, ""Customers are reassessing their capacity expansion plans which are translating into a more conservative outlook. In this current environment, it is imperative that we further our ongoing efforts to deliver superior customer support and provide our customers with reliable, technologically advanced and cost-effective solutions."
09:20 am Celestica downgraded to Neutral at Ticonderoga: . Ticonderoga downgrades CLS to Neutral from Buy as they now getting increasingly concerned around the impact of weakening consumer trends, slowing industrial demand and disappointing enterprise hardware demand on Celestica's business, all of which they believe will negatively impact the company over the next few quarters. They are also getting increasingly concerned about the long-term implications surrounding Celestica's high exposure to Research-in-Motion (RIMM) at 19% of 2Q11 sales.
09:20 am Cohu downgraded to Hold at Needham: . Needham downgrades COHU to Hold from Buy as there isn't enough demand with the larger customers, which they have awaited to order en masse to take up the slack. The firm says, with a lack of near-term catalysts they opt to wait on the sidelines and will get constructive on renewed signs of demand.
Last night, Western Digital (WDC $25.69 +1.25) reported first quarter earnings of $1.10 per share, excluding expenses of $21 million associated with the planned acquisition of Hitachi Global Storage Technologies announced Mar. 7, 2011 and unrelated litigation accruals, $0.13 better than the Capital IQ Consensus Estimate of $0.97, while revenues rose 12.4% year/year to $2.69 bln vs the $2.49 bln consensus.
Last night, Riverbed Technology (RVBD $24.56 +2.04) reported third quarter earnings of $0.24 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.21, while revenues rose 29.0% year/year to $190.6 mln vs the $185.5 mln consensus.
Last night, MKS Instruments (MKSI $24.59 -0.04) reported third earnings of $0.58 per share, $0.09 better than the Capital IQ Consensus Estimate of $0.49, while revenues fell 12.1% year/year to $194.5 million versus the $189.5 million consensus. The company issued downside guidance for the fourth quarter with EPS of $0.18-$0.31 versus the $0.39 Capital IQ consensus and revenues of $145-165 million versus the $172.00 million Capital IQ Consensus Estimate. The company states, "Order levels began to decline in May and continued to decline until the middle of the third quarter. However, since then, orders have remained fairly stable. In conditions like these, our proven strategy is to remain nimble, aggressively identify and pursue new opportunities while simultaneously controlling costs."
Last night, LM Ericsson (ERIC $9.96 +0.28) reported third quarter earnings of SEK1.44 per share, SEK0.05 better than the Capital IQ Consensus Estimate of SEK1.39, while revenues rose 16.8% year/year to SEK 55.5 billion versus the SEK52.67 billion consensus. Gross margin in the quarter was down year-over-year to 35.0%, and down from 37.8% sequentially. |
