From Briefing.com: 4:25 pm : After setting session lows 40 minutes before the close, stocks recovered some losses in the final minutes of trading. The S&P 500 and Nasdaq led the decline at nearly 1% each, with the Dow slightly outperforming at -0.8%. All sectors were in the red as energy, consumer discretionaries, and materials led the losses. Today's trading was driven by slim earnings outperformance coupled with lowered full year guidance from multiple firms. The only economic data of note came from the FHFA which reported the Housing Price Index. For May, the index increased by 0.8%, which follows a 0.8% increase in the prior month.
Buffalo Wild Wings (BWLD 78.90, -1.79) and Panera Bread (PNRA 141.91, -0.81) traded lower ahead of their after-hours reports. The results of the two restaurants should shed some light on consumer spending during the past quarter.
In the technology sector, besides the highly anticipated Apple (AAPL 600.92, -2.91) earnings, reports from Broadcom (BRCM 30.77, -0.21), and Juniper Networks (JNPR 14.82, -0.41) bear watching as well.
Homebuilders saw significant underperformance today as the SPDR S&P Homebuilders ETF (XHB 21.12, -0.46) traded down 2%. Homebuilder KB Homes (KBH 9.63, -0.53) led the sector lower with today's 5.2% decline dropping the stock back onto near-term support.
The energy sector was the primary laggard this session, down over 2.5%.
Coal producer Peabody Energy (BTU 20.55, -2.61) traded at more than a three-year low after a mixed second quarter report with downside third quarter earnings guidance. The company expects lower thermal coal pricing in the third quarter.
The industrial sector also underperformed, down over 1.5%. UPS (UPS 74.34, -3.61), Rockwell Collins (COL 47.23, -1.95) and Illinois Tool Works (ITW 52.29, -1.28) were all lower after reducing their full year outlook this morning.
Shares of Cisco Systems (CSCO 15.12, -0.95) were under severe pressure all day after VMware (VMW 88.89, -0.34) acquired network virtualization company Nicira. The acquisition posed as a potential competitive threat for both Cisco and rival Juniper Networks (JNPR 14.82, -0.41). Today's selling has dropped Cisco onto support in the $15.00 area that dates back to both last summer and the 2009 bottom.
Treasuries declined to record low levels with the 10-yr yields dropping to 1.40%DJ30 -104.1 NASDAQ -27.16 SP500 -12.21 NASDAQ Adv/Vol/Dec 662/1.68 bln/1743 NYSE Adv/Vol/Dec 768/808.2 mln/2238
3:30 pm : Crude oil spent the majority of its pit session chopping around just above the unchanged line. Moves in the energy component came on improved Chinese manufacturing data and weak manufacturing data for Germany. Crude rallied to a session high of $89.14 per barrel moments before the close and settled the session with a 0.5% gain at $88.51 per barrel.
Natural gas continued its fifth session of gains as it inched higher for most of floor trade and brushed a session high of $3.20 per MMBtu in afternoon action. It settled 1.9% higher at $3.18 per MMBtu.
Precious metals dropped for a second session as the dollar rose on Europe's worsening debt crisis after Moody's lowered its credit-rating outlook yesterday for Germany, the Netherlands, and Luxembourg. Gold managed to break into positive territory and touch a session high of $1584.00 per ounce following weak manufacturing data but lost steam as the dollar regained its momentum. The yellow metal then fell to a session low of $1567.80 per ounce but recovered most of its losses in afternoon action and settled just 0.1% lower at $1576.00 per ounce.
Silver also briefly touched a session high of $27.15 per ounce in morning action but quickly dropped to a session low of $26.58 per ounce. Like gold, it then traded higher for the remainder of floor trade and settled with a 0.8% loss at $26.81 per ounce.DJ30 -134.4 NASDAQ -33.21 SP500 -15.84 NASDAQ Adv/Vol/Dec 673/1371.6/1783 NYSE Adv/Vol/Dec 692/546.3/2339
5:03PM Linear Tech misses by $0.03, reports revs in-line; guides Q1 revs just below consensus ( LLTC) 30.12 -0.44 : Reports Q4 (Jun) earnings of $0.44 per share, $0.03 worse than the Capital IQ Consensus Estimate of $0.47; revenues fell 8.0% year/year to $330 mln vs the $330.75 mln consensus. Co issues downside guidance for Q1, sees Q1 revs of flat to +3% QoQ to ~$330-339.9 mln vs. $340.70 mln Capital IQ Consensus Estimate. "As we turn our focus to fiscal 2013, general economic sluggishness remains in the U.S. and we are particularly cautious about the European market and its sovereign debt issues. Historically, the first fiscal quarter is a seasonally weak period in that region and this could be exacerbated by the continuing debt crisis. We are hopeful that the strength we are seeing in Japan and Asia will continue to offset weakness in Europe and flatness in the USA."
4:36PM Apple misses by $1.06, misses on revs; guides Q4 EPS, revs below consensus; initiates $2.65 quarterly dividend ( AAPL) 600.92 -2.91 : Reports Q3 (Jun) earnings of $9.32 per share, $1.06 worse than the Capital IQ Consensus Estimate of $10.38; revenues rose 22.6% year/year to $35.02 bln vs the $37.35 bln consensus. Co issues downside guidance for Q4, sees EPS of ~$7.65 vs. $10.23 Capital IQ Consensus Estimate; sees Q4 revs of ~$34 bln vs. $37.94 bln Capital IQ Consensus Estimate. Co typically guides conservatively but this looks particularly low. Co reports 26 mln iPhones sold in Q3 vs Street est of ~29 mln; 17 mln iPads sold in Q3 vs Street est of ~16 mln; 4.0 mln Macs sold in Q3 vs Street est of ~4.5 mln. Gross margin was 42.8% vs Street est of 43.8% and 41.5% guidance, compared to 41.7 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter's revenue. "We've also just updated the entire MacBook line, will release Mountain Lion tomorrow and will be launching iOS 6 this Fall. We are also really looking forward to the amazing new products we've got in the pipeline." Apple's Board of Directors has declared a cash dividend of $2.65 per share of the Company's common stock. The dividend is payable on August 16, 2012, to stockholders of record as of the close of business on August 13, 2012.
4:19PM Altera beats by $0.11, beats on revs ( ALTR) 30.67 -0.45 : Reports Q2 (Jun) earnings of $0.50 per share, $0.11 better than the Capital IQ Consensus Estimate of $0.39; revenues fell 15.2% year/year to $464.8 mln vs the $445.52 mln consensus. ALTR's board of directors has increased the company's quarterly cash dividend to $0.10 per share, up from the previous dividend of $0.08 per share. ALTR's board of directors has approved a 10.0 mln share increase to the number of shares authorized for repurchase under the company's share repurchase program.
4:10PM Riverbed Technology beats by $0.02, beats on revs ( RVBD) 14.55 -0.11 : Reports Q2 (Jun) earnings of $0.23 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.21; revenues rose 16.5% year/year to $198.5 mln vs the $194.3 mln consensus.
4:06PM Riverbed Technology and Juniper Networks (JNPR) Announce Technology Partnership to Enable More Secure, Efficient Delivery of Applications Across Devices, Networks and Clouds ( RVBD) 14.56 -0.10 : .....
3:02PM Cisco Systems sets new session low of 15.06, holding slightly above its 11 month lows from last Sep/Oct at 15.01/14.93 -- session low 15.06 ( CSCO) 15.09 -0.98 :
12:01PM Microsoft and Amdocs Software Systems Limited sign patent agreement ( MSFT) 29.03 -0.25 : Co announced that it has signed a patent cross-license agreement with Amdocs Software Systems Limited. The patent agreement provides mutual access to each company's patent portfolio, including a license under Microsoft's patent portfolio covering Amdocs' use of Linux-based servers in its data centers. Although specific terms of the agreement are confidential, Microsoft indicated that Amdocs will pay Microsoft an undisclosed amount of money under the agreement.
"This agreement with Amdocs adds to the more than 1,100 patent license agreements Microsoft has entered into over the last decade," said Horacio Gutierrez, corporate vice president and deputy general counsel, Intellectual Property Group at Microsoft. "Microsoft's licensing program ensures respect for its world-class intellectual property portfolio while at the same time making available to others the result of its multi-billion dollar annual investment in research and development."
ANADIGICS (ANAD) announced that it is shipping production volumes of its dual-band High-Efficiency-at-Low-Power power amplifiers to Samsung Electronics (SSNLF) for the new Galaxy S III smartphone.
7:37AM AT&T beats by $0.03, reports revs in-line ( T) 35.38 : Reports Q2 (Jun) earnings of $0.66 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.63; revenues rose 0.3% year/year to $31.57 bln vs the $31.71 bln consensus. AT&T sold 5.1 million smartphones in the second quarter. Smartphones represented 77% of postpaid device sales. At the end of the quarter, 61.9%, or 43.1 million, of AT&T's postpaid subscribers had smartphones, up from 49.9%, or 34.1 million, a year earlier. In the quarter, the company activated 3.7 million AAPL iPhones, with 22% new to AT&T (this is being reported to be in-line estimates). Co reported highest-ever wireless margins, operating income margin of 30.3 percent, with EBITDA service margin of 45.0 percent
7:08AM EMC reports Q2 in-line with preannouncement; reaffirms FY12 EPS, revs guidance ( EMC) 24.80 : Reports Q2 (Jun) earnings of $0.39 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.39; revenues rose 9.6% year/year to $5.31 bln vs the $5.3 bln consensus. Rev from EMC's Information Storage business increased 7% year over year. Within this, revenue from EMC's networked storage platforms portfolio3, which includes EMC's high-end and mid-tier storage platform products, grew 7% year over year. Revenue from EMC's high-end Symmetrix storage product portfolio increased 3% compared with the year-ago quarter, and revenue from the company's portfolio of mid-tier storage products4 increased 10% year over year, the result of year-over-year growth across EMC's major mid-tier product lines. Co reaffirms guidance for FY12, sees EPS of $1.70 vs. $1.73 Capital IQ Consensus Estimate; sees FY12 revs of $22.0 bln vs. $22.06 bln Capital IQ Consensus Estimate.
6:15AM NXP Semi beats by $0.05, beats on revs; guides Q3 EPS in-line, revs above consensus ( NXPI) 22.00 : Reports Q2 (Jun) earnings of $0.45 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.40; revenues fell 2.4% year/year to $1.09 bln vs the $1.05 bln consensus. Co in line Q3 EPS guidance for Q3, sees EPS of $0.50-0.62, excluding non-recurring items, vs. $0.54 Capital IQ Consensus Estimate; issues Upside Q3 revs of $1.143-1.205 bln vs. $1.11 bln Capital IQ Consensus Estimate. "We are very pleased with our performance during the second quarter of 2012 as we delivered revenue of $1,094 million, which was above the upper end of our guidance range. We experienced growth in every one of our target end markets, notwithstanding the uncertain macro environment we find ourselves operating within. Furthermore, our results during the quarter are a positive indication of the company specific opportunities we have previously communicated. The growth drivers that contributed to our second quarter results are in the early stages and we anticipate further contribution in future periods. We are committed to further investments in our product portfolio that should enable future top-line growth in our core target markets, and when combined with our deep applications knowledge and customer focus should enable NXP to grow in excess of the overall semiconductor industry."
12:39AM STMicroelectronics misses by $0.01, beats on revs; guides Q3 revs below consensus ( STM) 4.76 : Reports Q2 (Jun) loss of $0.05 per share, excluding impairment, restructuring charges and one-time items $0.01 worse than the Capital IQ Consensus Estimate of ($0.04); revenues fell 16.3% year/year to $2.15 bln vs the $2.12 bln consensus. Co issues downside guidance for Q3, sees Q3 revs of +2.5% sequentially calc'ing to $2.202 bln vs. $2.28 bln Capital IQ Consensus Estimate.
Texas Instruments (TXN $26.66 -0.16) reported second quarter earnings of $0.44 per share, excluding non-recurring items, $0.04 better than the consensus of $0.40, while revenues fell 3.6% year/year to $3.34 billion versus the $3.34 billion consensus. The company issued downside guidance for the third quarter with EPS of $0.41-0.49, excluding non-recurring items, versus the $0.50 consensus and revenues of $3.21-3.47 billion versus the $3.55 billion consensus. Compared with a year ago, lower gross profit in the quarter primarily reflects lower revenue and the associated costs from low levels of factory utilization. Compared with Q1, higher gross profit reflects higher revenue, which more than offset lower insurance proceeds related to the March 2011 earthquake in Japan. "TI revenue in the second quarter was about as we had expected. Our Analog and Embedded Processing segments grew sequentially, while our Wireless segment declined. Although we believe customers and distributors have low inventory levels, the global economic environment is causing both to become increasingly cautious in placing new orders. Our backlog grew last quarter but orders slowed in the month of June and our backlog coverage for September is lower than normal. As a result of this increased uncertainty, we currently estimate that our revenue in the third quarter will be about even with last quarter and below our seasonal average growth rate. If customer demand increases as the quarter progresses, we are ready to support higher shipments with short product lead times, a strong inventory position and available manufacturing capacity.
EMC (EMC $24.72 -0.05) reported second quarter earnings of $0.39 per share, in-line with the Capital IQ consensus of $0.39, while revenues rose 9.6% year/year to $5.31 billion versus the $5.3 billion consensus. Revenue from EMC's Information Storage business increased 7% year over year. Within this, revenue from EMC's networked storage platforms portfolio, which includes EMC's high-end and mid-tier storage platform products, grew 7% year over year. Revenue from EMC's high-end Symmetrix storage product portfolio increased 3% compared with the year-ago quarter, and revenue from the company's portfolio of mid-tier storage products increased 10% year over year, the result of year-over-year growth across EMC's major mid-tier product lines. The company reaffirmed guidance for fiscal year 2012 with EPS of $1.70 versus the $1.73 consensus and revenues of $22.0 billion versus the $22.06 billion consensus.
09:26 am Sanmina shares soar 12% following beat on revenues and upside guidance
Sanmina (SANM $8.08 +0.90) reported third quarter earnings of $0.26 per share, $0.02 worse than the Capital IQ Consensus of $0.28, while revenues fell 7.5% year/year to $1.55 billion versus the $1.49 billion consensus. The company issued upside guidance for the fourth quarter with EPS of $0.32-0.38 versus the $0.33 consensus and revenues of $1.575-1.625 billion versus the $1.54 billion consensus.
09:22 am EMC shares little changed following earnings
EMC (EMC $24.58 -0.22) reported second quarter earnings of $0.39 per share, in-line with the Capital IQ consensus of $0.39, while revenues rose 9.6% year/year to $5.31 billion versus the $5.3 billion consensus. Revenue from EMC's Information Storage business increased 7% year over year. Within this, revenue from EMC's networked storage platforms portfolio, which includes EMC's high-end and mid-tier storage platform products, grew 7% year over year. Revenue from EMC's high-end Symmetrix storage product portfolio increased 3% compared with the year-ago quarter, and revenue from the company's portfolio of mid-tier storage products increased 10% year over year, the result of year-over-year growth across EMC's major mid-tier product lines. The company reaffirmed guidance for fiscal year 2012 with EPS of $1.70 versus the $1.73 consensus and revenues of $22.0 billion versus the $22.06 billion consensus. 09:19 am Texas Instruments shares fall nearly 2% following downside guidance
Texas Instruments (TXN $26.44 -0.38) reported second quarter earnings of $0.44 per share, excluding non-recurring items, $0.04 better than the consensus of $0.40, while revenues fell 3.6% year/year to $3.34 billion versus the $3.34 billion consensus. The company issued downside guidance for the third quarter with EPS of $0.41-0.49, excluding non-recurring items, versus the $0.50 consensus and revenues of $3.21-3.47 billion versus the $3.55 billion consensus. Compared with a year ago, lower gross profit in the quarter primarily reflects lower revenue and the associated costs from low levels of factory utilization. Compared with Q1, higher gross profit reflects higher revenue, which more than offset lower insurance proceeds related to the March 2011 earthquake in Japan. "TI revenue in the second quarter was about as we had expected.
Our Analog and Embedded Processing segments grew sequentially, while our Wireless segment declined. Although we believe customers and distributors have low inventory levels, the global economic environment is causing both to become increasingly cautious in placing new orders. Our backlog grew last quarter but orders slowed in the month of June and our backlog coverage for September is lower than normal. As a result of this increased uncertainty, we currently estimate that our revenue in the third quarter will be about even with last quarter and below our seasonal average growth rate. If customer demand increases as the quarter progresses, we are ready to support higher shipments with short product lead times, a strong inventory position and available manufacturing capacity.
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