Today - Tuesday, October 25, 2016
- Telefonica Brasil (NYSE:VIV) posted Q3 earnings that rose by 9.6% but missed expectations slightly with hints of an economic recovery in the beleaguered country.
- Brazil's top telecom earned 953M real (about $306M) for the quarter and has boosted free cash flow by 43% over the nine months.
- Average revenue per user rose 15%.
- Meanwhile, in an economic bellwether, sales of prepaid wireless rose for the first time in two years.
- CEO Amos Genish said Vivo's success in grabbing synergies from an acquisition of broadband firm GVT would make it the highlight of earnings for the global Telefonica (NYSE:TEF), reporting Thursday.
- After hours: VIV +0.3%; TEF +0.2%.
- The chief of Google's Fiber business (GOOG -0.7%, GOOGL -0.9%) is out and the unit will pause development in cities where it's not yet active, and set up for layoffs.
- In a blog post, Google Access CEO Craig Barratt confirmed the moves.
- "In terms of our existing footprint, in the cities where we’ve launched or are under construction, our work will continue," Barratt writes. "For most of our 'potential Fiber cities' — those where we’ve been in exploratory discussions — we’re going to pause our operations and offices while we refine our approaches."
- In the handful of exploratory cities and in some parts of the support operation, "we'll be reducing our employee base," he says, and "I’ve decided this is the right juncture to step aside from my CEO role. Larry [Page, Alphabet chief] has asked me to continue as an advisor, so I’ll still be around."
- The change-up comes months after Google Fiber acquired Webpass, largely seen as an admission that fixed wireless might be a preferable route to laying fiber in order to deploy last-mile high-speed Internet.
- Vodafone (VOD +0.9%) is set to receive fines in the millions of pounds when UK regulator Ofcom produces the results of a pair of probes tomorrow, Sky reports.
- The probes, which have lasted almost a year and a half, dug into how Vodafone handled customer complains as well as in delivery of services to the company's pay-as-you-go customers.
- For prepaid customers, Vodafone was charged with "rendering bills to such customers that did not represent the true extent of the service actually provided to them." And the other probe dealt with whether complaint handling had proper transparency and access to alternative dispute resolution, among other charges.
- Results – revenue $683.3M (-7.6% Y/Y, $9.7M above estimates), EPS $0.41 ($0.12 above estimates), operating cash flow $87M ($43M higher Y/Y), free cash flow $6M ($106M higher Y/Y), operating profit margin 6.7% (vs. 7.2% Y/Y), Total Contract Value increased 22% Y/Y, Services backlog up 6.7% to $4.1B
- Segments – Services revenue, representing 88% of total revenue, decreased 8.4% to $601M while gross margin in the segment declined 60 bps Y/Y and operating profit declined 220 bps to 2.6%. Services operating profit margin increased sequentially by 50 bps. Technology business revenue, representing 12% of total, remained unchanged on the year ($82M this quarter vs. $83M Q3 2015) while operating profit increased from 20.7% to 32.3%.
- Unisys president and CEO Peter Altabef: "Our year-to-date results show progress toward achieving our goals for 2016 with respect to improving operating profit margin and cash flow generation. Revenues also continue to track in line with our full-year guidance for 2016. We continue to execute on the strategy we began in 2015, and we are beginning to see traction with our vertical go-to-market approach, in addition to bringing a pervasive security focus to all of our offerings."
- Unisys (NYSE:UIS), closing today 6.7% lower, is presently up over 11% after hours.
- Conference call
- Earnings slides
- Press release
- Akamai (NASDAQ:AKAM) Q3 results – revenue $584M (+6% Y/Y, $12.13M above estimates), EPS $0.68 ($0.07 above estimates)
- Segment revenues – Performance and Security Solutions $345M (+19% Y/Y), Cloud Security Solutions $95M (+46% Y/Y), Media Delivery Solutions $188M (-14% Y/Y), Services and Support Solutions $51M (+17% Y/Y)
- Geographic revenues – U.S. $404M (+1% Y/Y), International $180M (+20% Y/Y)
- Major division revenues – Media $284M (-4% Y/Y), Web Division $285M (+17% Y/Y), Enterprise and Carrier Division $15M (+43% Y/Y)
- CEO Dr. Tom Leighton: "Akamai's strong third quarter revenue and earnings performance was primarily driven by accelerated growth in both our Cloud Security and Web Performance Solutions. As the cyber-attacks from last week demonstrate, enterprises need solutions capable of defending against massive botnets that are exploiting millions of online devices. This is an area where Akamai's unique architecture and ongoing investments in global scale and security innovation continue to make a critical difference."
- Conference call
- Press release
- Despite Yahoo's (NASDAQ:YHOO) request to the government to explain why stories that it's scanning incoming mail for intelligence sources are "misleading," the order isn't likely to be made public, Reuters reports.
- That's because the details of the order are apparently a sensitive national security matter, and officials said releasing any declassified version of the order in the foreseeable future isn't likely either.
- More than 30 advocacy groups are writing Director of National Intelligence James Clapper today asking for declassification of the order, saying such an order violates Title I of the Foreign Intelligence Surveillance Act.
- AT&T (T -0.4%) has revealed its "aggressive" price plan for new streaming service DirecTV Now: $35/month.
- Since AT&T is zero-rating data for its customers, that's the total price for the company's subscribers. Other customers will need to consider data needs if they're video-hungry.
- That gets users 100-plus premium channels for less than the typical cable bundle, and less than PlayStation Vue (SNE -0.9%), but in the ballpark of Sling TV (DISH +0.3%).
- CEO Randall Stephenson says the company aims to keep the price down through new advertising models.
- AT&T/Time Warner deal coverage
- Juniper's (NYSE:JNPR) jumping, up 9.1% after hours so far, following Q3 results where it beat expectations on profits and revenue and guided to the upside for Q4.
- Revenues grew 3% from the prior year and were up 5% Q/Q. Operating margin (non-GAAP) was 24.4%, down from the prior year's 25.5% but an increase from Q2's 22.5%.
- "We delivered solid profitability and continued to generate strong cash flow from operations, with meaningful sequential improvements across key performance metrics: earnings per share, operating margin and operating income," said CFO Ken Miller.
- Revenue breakout: Product, $928.2M (up 0.3%); Service, $351.1M (up 8.6%).
- It's guiding to Q4 revenues (assuming stable exchange rates) of $1.32B-$1.38B (above consensus for $1.32B) and non-GAAP EPS of $0.59-$0.65 (vs. consensus for $0.60). It sees non-GAAP gross margin of 62.5%-63.5% and opex of $505M-$515M.
- Conference call to come at 5 p.m. ET.
- Press Release
- Apple (NASDAQ:AAPL) Q4 results – revenue $46.9 (-8.9%% Y/Y, in-line with estimates), EPS $1.67 ($0.02 above estimates), net income $9B (vs. $11.1B Y/Y), gross margin 38% (vs. 39.9% Y/Y)
- Highlights – Services segment revenue increases 24% (all-time high; vs. 19% increase in Q3) to $6.3B. International sales comprised 62% of total revenue.
- Products breakdown – iPhone (45.5M units; +13% Q/Q, -5% Y/Y), iPad (9.2M units; -7% Q/Q, -6% Y/Y), Mac (4.88M units; +15% Q/Q, -14% Y/Y), Services ($6.3B revenue; +6% Q/Q, +24% Y/Y), Other Products ($2.3B revenue; +7% Q/Q, -22% Y/Y)
- Operating segments breakdown – Americas ($20.2B revenue; +13% Q/Q, -7% Y/Y), Europe ($10.8B revenue; +12% Q/Q, +3% Y/Y), Greater China ($8.7B revenue; -1% Q/Q, -30% Y/Y), Japan ($4.3B revenue; +23% Q/Q, +10% Y/Y), Rest of Asia Pacific ($2.6B revenue; +13% Q/Q, -1% Y/Y)
- Projections – For Q1 2017, forecasts revenue at $76B-$78B, gross margin at 38%-38.5%, operating expenses at $6.9B-$7B, other income at $400M and tax rate at 26%.
- Dividend – Cash dividend of $0.57 per share, payable November 10 to shareholders on record November 7.
- CEO Tim Cook: "Our strong September quarter results cap a very successful fiscal 2016 for Apple. We’re thrilled with the customer response to iPhone 7, iPhone 7 Plus and Apple Watch Series 2, as well as the incredible momentum of our Services business, where revenue grew 24 percent to set another all-time record."
- Financial statements
- Conference call
- Press Release
- Data summary
- Pandora Media (P -4.8%) is off another 7.6% after hours following a miss on top and bottom lines and below-consensus guidance in its Q3 earnings report.
- Losses narrowed on a GAAP basis to $61.5M from $85.9M. Adjusted EBITDA fell to -$6.6M from last year's positive $31.5M.
- Total listener hours grew about 5% from last year, to 5.4B. Active listeners fell, though, to 77.9M from 78.1M.
- Revenue breakout: Advertising, $273.7M (up 7.5%); Subscription and other, $56.1M (down 1.4%); Ticketing service, $22.1M (new, but up about 25% compared to Ticketfly's pre-acquisition results).
- Pandora's guiding to revenue of $362M-$374M in Q4, below consensus for $391.7M, and adjusted EBITDA of -$51M to -$39M. For the full year, it's forecasting revenue of $1.354B-$1.366B (below consensus for $1.4B), and adjusted EBITDA of -$140M to -$128M.
- Webcast to come at 4:30 p.m. ET.
- Press Release
- October 13: SoftBank to put $25B into newly created technology investment fund
- Reporting from San Francisco, where Softbank Group (OTCPK:SFTBY) founder and CEO Masayoshi Son is scheduled to speak at an ARM Holdings event this week, the Financial Times sources insight into the type of deals SoftBank's looking to execute through the newly-created vehicle.
- "One or two" buys rivaling those of ARM ($32B) and Sprint ($22B) are noted, along with "several $2bn-$5bn company acquisitions and then a bunch of $1bn."
- Despite the initial fund having capacity to total up to $100B, Son considers that figure to be only the beginning.
- Although rumors and speculation of potential interest in Twitter have been circulating of late, it remains to be seen what initial moves the fund will make.
- Google's (GOOG, GOOGL) looking to bring real-time collaboration, powered by G Suite, to physical meetings through its new Jamboard hardware.
- Features – 55-inch, 4K display, touchscreen, HD camera, speakers, Wi-FI
- Not yet available (2017 noted), and with an "under $6,000 USD" price point, the Jamboard isn't exactly a dramatic near-term development. Nonetheless, beyond just the benefit of getting Google's digital G Suite workplace products physically in front of users, however, is a continued emphasis by the company on integrating Google software throughout Google-developed hardware.
- Jamboard — the whiteboard, reimagined for collaboration in the cloud
- Introducing Jamboard (video)
- Twilio (NYSE:TWLO) shares were relatively unmoved on the day as of 11:45AM ET. Since that point, however, a more than 4% decline has been registered.
- Despite the lack of material news, Twilio's nonetheless continuing a steady trade-down since it first filed a follow-on offering proposal earlier this month and is at this point 35% below pre-disclosure levels.
- October 11: Twilio files preliminary Q3 results, +4% pre-market
- October 18: Twilio's secondary offering set at 7M shares
- October 21: Twilio -8% pre-market, follow-on offering priced at $40 per share
- Results – revenue $527M (+5.3% Y/Y, $6.78M below estimates), EPS $1.57 (in-line)
- Bio/pharmaceutical, industrial market sales up 13% and 2%, respectively. Governmental and academic markets sales down 15%. Asia sales were higher by 16%, Europe's lower by 3% and in the U.S., down 1%.
- Waters' (NYSE:WAT) shares are sharply retracing year-term gains in the 27% range as of yesterday, with current levels representing a 12% increase on that basis.
- Conference call
- Press release
- Regular quarterly cash divided of $1.40 per share, payable December 10 to shareholders on record November 10. Payment of consecutive quarterly dividends since 1916 highlighted.
- Additional $3B authorized for stock repurchase program, bringing overall program sum to $6B.
- IBM (IBM -0.2%) chairman, president and CEO Ginni Rometty: "IBM continues to invest in our business for long-term growth, and the company has already invested more than $12 billion in the first three quarters of 2016 to build higher-value offerings. At the same time we remain committed to returning capital to shareholders through both dividends and share repurchase."
- Press release
- BlackBerry (BBRY -0.8%) officially unveiled its third Android-based smartphone -- the last in its pipeline, after its decision to outsource handset development -- after raising some question whether it would come out at all.
- Last month, CEO John Chen said that he hadn't decided whether to put out the company's latest phone: "If I decide not to go ahead with that phone, you may have seen the last BlackBerry-designed phone."
- But the company today announced the DTEK60, a phone whose development had leaked inadvertently through an exposed Web page.
- It's similar to the summer's DTEK50 but with higher-powered specs, including a fingerprint sensor and 5.5" Quad HD display. It's priced at $499 at its internal store (where BlackBerry will throw in an accessory bundle) and will roll out to additional global channels and countries in coming weeks.
- Eyefluence, founded in 2013 and having raised $21.6M in total funding since, specializes in VR interactions through eye movements. Terms of the arrangement with Google are undisclosed.
- As Google (GOOG, GOOGL) increases focus on VR, presently through the controller-powered Daydream View and arriving-soon Daydream platform, the technology could indicate where the company, and VR in general, are poised to go in the future.
- Eyefluence blog post
- Demo video
- After touching what would have been a 52-week high in premarket action, Sprint (NYSE:S) is off 6.7% after posting fiscal Q2 earnings where it cut losses substantially and beat expectations for profits and revenues.
- Postpaid phone churn hit a company record low of 1.37%, the seventh straight quarter of Y/Y improvement. But net postpaid phone adds of 347,000 disappointed some analysts despite doubling Q/Q.
- Total platform net adds were 740,000, which along with postpaid phone adds incorporates wholesale and affiliate net adds of 823,000, and prepaid net losses of 427,000.
- Adjusted free cash flow was $707M, vs. a loss of $100M a year ago, an $807M swing Y/Y.
- It's raising guidance on operating income for 2016, to $1.2B-$1.7B from previous expectations for $1B-$1.5B, and reiterating expectations for EBITDA of $9.5B-$10B, and adjusted free cash flow around break-even.
- Cash capex is now expected below $3B, as the company has better visibility into payment timing tied to network densification.
- Press Release
- Filed to limit "the potential distraction of employees occasioned by the possibility of any change in control of the Company" and "the likelihood that employees would seek other employment following the announcement of a change in control of the Company and if such announced transaction were not consummated, the Company would be seriously harmed."
- M&A buzz is circulating due to the agreements (takeover speculation hinted at by third-parties previously), though no concrete evidence on the matter's surfaced.
- Silicon Labs (NASDAQ:SLAB) shares up 4.5% early ahead of Q3 results to be released tomorrow.
- Positive – RBC Capital Markets (Outperform, $36), William Blair (Outperform; hyperconverged infrastructure roots cited, considers to be "emerging as one of the winners in next-generation IT" within a $100B+ addressable market), Credit Suisse (Outperform, $38; "unique technological advantage that will disrupt the IT infrastructure market," considerable addressable market noted), Needham & Company (Buy, $36; Nutanix "poster child" amid conventional datacenter disruption), Pacific Crest Securities (Overweight, $37), Piper Jaffray (Overweight), Baird (Outperform), Oppenheimer & Co. (Outperform, $36)
- Neutral – Stifel (Hold, $35), Raymond James (Market perform), J.P. Morgan (Neutral), Goldman Sachs (Neutral), Morgan Stanley (Equal weight)
- Negative (previously initiated) – Nutanix initiated with Sell rating at Summit Redstone Partners
- Nutanix (NASDAQ:NTNX) shares 2% higher in early trade.
- Results – revenue $2.55B (+4.1% Y/Y, $30M above consensus), EPS $0.42 (+24% Y/Y, +14% Q/Q; $0.04 above consensus)
- Segment revenues breakdown – Core Sales for Display Technologies grew 7% Q/Q, 1% Y/Y to $943M, Core Earnings grew 14% Q/Q, 5% Y/Y to $270M. For Optical Communications, Core Earnings were up 14% sequentially and 38% on the year to $98M. Core Earnings for Environmental Technologies declined 5% on the quarter and 8% on the year to $35M. Specialty Materials Core Earnings down 8% Q/Q to $44M, Life Sciences' unchanged at $21M.
- Previously disclosed $2B share repurchase launched during the quarter.
- Corning (NYSE:GLW) CEO Wendell P. Weeks: “Corning’s strong third-quarter results reflect the increasing momentum that we expected in the second half of this year. Sales and gross margins increased in every business segment year over year. We also grew the company’s sales, core earnings and core EPS both sequentially and year over year. Our operating results and progress on key growth initiatives continue to reinforce our confidence in Corning’s strategy.”
- Income statements
- Conference call
- Press release
- D.E. Shaw has made a non-binding proposal to replace SunEdison (OTCPK:SUNEQ) as the operating sponsor of yieldco TerraForm Power (NASDAQ:TERP), according to an SEC filing.
- The hedge fund manager has said it could make an offer for SUNE's stake in TERP.
- TERP and TerraForm Global (NASDAQ:GLBL), the two SUNE yieldcos, said in September that they were exploring strategic alternatives, including a sale of their entire business.
- In a major milestone for autonomous trucking, some 45,000 cans of Budweiser (NYSE:BUD) beer arrived late last week to a Colorado warehouse after traveling over 120 highway miles in a self-driving semi with no driver at the wheel.
- Otto, the autonomous truck subsidiary of Uber (Private:UBER), shipped the brew with a driver monitoring from the truck's sleeper berth for the entire two-hour journey.
- The largest S&P 500 stock by market capitalization - Apple (NASDAQ:AAPL) - is the highlight of today's earnings reports.
- The Q4 results will offer the first peek into sales of the new iPhone 7 and the extra business the company is getting due to Samsung's troubles with the Galaxy Note 7.
- It's a busy week for the tech giant. On Thursday, it will unveil updates to the Mac line, beefing up what is still an important unit for Apple in the mobile era.
- Twitter (NYSE:TWTR) is preparing to cut as many as 300 jobs, or about 8% of its workforce, sources told Bloomberg, the same percentage it did last year when co-founder Jack Dorsey took over as chief executive officer.
- The announcement could come before Twitter releases third-quarter earnings on October 27, but planning for the headcount reduction is "still fluid and the number could change."
Monday, October 24, 2016
- After some long prep, Nielsen (NLSN +0.6%) is finally ready to measure out-of-home viewing, tapping some previously invisible ratings from viewership in public places, including restaurants, bars, airports and waiting rooms.
- The company will use its Portable People Meter to measure viewing from panelists wherever they go, and combine that with its National TV ratings panel for in-home viewing. It's a stand-along service for the moment, with plans to integrated it directly into national TV ratings in the future.
- Nielsen will offer both program and commercial ratings for live through Live+7 days. Based on more than 75,000 Portable People Meter panelists, the company will be able to project out-of-home viewing for more than half the U.S. population.
- The service should launch in April with data back to January, while data back to September 2016 should be added shortly after launch.
- News like this could be a boon for key providers of major-event sports broadcasting, which often gets significant viewership at bars and restaurants: ESPN (NYSE:DIS), Fox (FOX, FOXA), and Turner (NYSE:TWX) among others like CBS (NYSE:CBS) and NBC (NASDAQ:CMCSA).
- Along with Moody's decision to put AT&T's (T -1.7%) credit ratings on review for possible downgrade, S&P Global Ratings and Fitch have come in with their own reviews of credit effects from the megadeal to acquire Time Warner (TWX -3.1%).
- S&P has put its AT&T ratings -- including a BBB+ corporate credit rating and BBB+ senior unsecured debt rating -- on T)+on+CreditWatch+Negative+Following+Move+to+Acquire+Time+Warner/12159691.html" target="_blank">CreditWatch with negative implications. Like Moody's, it expects any potential downgrade could be limited to one notch (keeping AT&T in investment grade status).
- The firm says the deal has "some strategic merits" and it will resolve its review once it's assessed the impact, including a "commitment to debt reduction, our view of the combined business, and its ability to grow EBITDA and improve FOCF generation."
- Fitch put its ratings for AT&T (A- long term) on Rating Watch Negative. The deal gives AT&T a "strong foothold" in media but "as proposed, is likely to lead to a one-notch downgrade." Fitch affirmed Time Warner's BBB+ rating.
- After hours: T +0.1%; TWX +0.1%.
- AT&T's deal to acquire Time Warner is "good for T-Mobile (TMUS +9.5%) in the short and medium term," says T-Mobile chief John Legere today, expecting a distraction at his blue whale of a nemesis while his underdog firm racks up new subscribers.
- T-Mobile today logged net adds of 851,000 subscribers in branded postpaid phones, while AT&T lost 268,000 this quarter. For its part, Verizon lost 36,000 net subs in branded postpaid phones. (Sprint, the No. 4 carrier, added 347,000.)
- The Time Warner deal is a "bold move. It's going to cause acceleration," Legere says, but noting that AT&T could get "further defocused" on the wireless business as it diversifies.
- The interesting question going forward: Will regulators have a fresh stance on a once-squelched merger of T-Mobile with Sprint (S +5.7%) now that AT&T is making a move toward becoming a telecom/media behemoth?
- T-Mobile stock hit a nine-year high today. Sprint reports earnings tomorrow before the bell.
- Previously: T-Mobile up 7.4% on subscriber boost, Q3 profit beat (Oct. 24 2016)
- Previously: T-Mobile US beats by $0.04, misses on revenue (Oct. 24 2016)
- Results – revenue $446M (in-line, +2.9% Y/Y), EPS $0.30 ($0.02 above estimates), net income $85M (vs. $89M Y/Y)
- Projections – For Q4, total revenue of $463M-$473M and net income per diluted share of $0.32-$0.34 (consensus $472M, $0.35). For FY 2016, total revenue of $1.81B-$1.82B and net income per diluted share of $1.19-$1.21.
- President and CEO Lip-Bu Tan: "We continued to make progress on our System Design Enablement strategy in the third quarter, which resulted in solid financial results. Our digital and signoff solutions maintained their momentum with market-shaping customers; five new systems customers, including a major aerospace company, adopted our Palladium® Z1 emulation platform; and we increased our expansion into automotive functional safety verification."
- Cadence Design Systems (NASDAQ:CDNS) shares lower by 0.93% in extended trading.
- CFO commentary
- Earnings tables
- Conference call
- Press release
- Estimates a potential $200M-$320M annual near-term opportunity for Nvidia on the inclusion of its components in Nintendo's recently announced Switch gaming system.
- Buy rating and $80 price target (current price $70.71) restated.
- Nvidia (NASDAQ:NVDA) shares closed today up 4.7% and higher by more than 6% since the day before Nintendo's Switch system was first announced.
- Previously (October 20): Jefferies: Nintendo Switch an important software showcase
- Intelsat (NYSE:I) will distribute TV programming for Nine Network Australia (OTC:NNMTF), one of the country's top-rated commercial TV networks, via a new contract extending well into the 2020s.
- The company will also provide satellite and fiber connectivity to get content from from around to world into Australia, along with distributing programming to the company's six domestic stations.
- The two had an existing relationship as Intelsat did occasional-use work for NNA, including services for the 2016 Olympics in Rio de Janeiro.
- Intelsat will initially provide service with the Ku-band beam on Intelsat 19.
- Results – revenue $89.9M ($3.3M above estimates, +21.8% Y/Y), EPS $0.16 ($0.03 above estimates), operating costs and expenses $60.8M (+20% Q/Q, +31% Y/Y), net income $18M (+8% Q/Q, +6% Y/Y), cash, cash equivalents and marketable securities $150.8M (as of September 30; $108.5M decrease since June 30 due to acquisitions)
- Projections – For Q4, revenue of $94M-$98M, non-GAAP operating costs and expenses of $65M-$68M, and non-GAAP diluted net income per share of $0.14-$0.18.
- Rambus (NASDAQ:RMBS) CEO Dr. Ron Black: "We turned in very positive results for the third quarter with a general uptick across our business showcasing growth, both organically and inorganically, to support our strategy and plan. Our licensing program continues to be strong with the signing of FPGA-leader Xilinx, which expands our footprint beyond DRAM and SoC sectors. We’ve also seen strong support in our security business within the mobile payments segment and believe we are well positioned to advance this technology further. We have steadily grown the business in terms of revenue, technologies, offerings and relevance, and expect a strong finish to the year."
- Conference call
- Press release
- U.S. regulators will make their own decisions about whether they'll give a formal review to AT&T's (T -1.7%) deal to acquire Time Warner (TWX -3.1%), the White House says.
- Speaking to reporters aboard Air Force One, administration spokesman Josh Earnest says that deciding to review the deal will be up to personnel at the Justice Dept. and the Federal Trade Commission.
- "Certainly when you consider the size of the deal ... I don't think anybody would be surprised if they announced a review," Earnest says. "The president would hope and expect that regulators would carefully consider the potential impact of this deal on consumers."
- Previous AT&T/Time Warner coverage
- Analysts Mitch Steves and Amit Daryanani rate Microsemi (NASDAQ:MSCC) a "Top Pick" with a $48 target (current price $40.36).
- In considering the semiconductor sector on broad terms, the analysts believe mid-cap companies such as Microsemi present attractive opportunities to larger names on margin profiles and valuations. For Microsemi specifically, Texas Instruments (NYSE:TXN), Broadcom (NASDAQ:AVGO) and Maxim Integrated Products (NASDAQ:MXIM) are offered as potential acquirers, with Texas Instruments making the "most sense."
- Should Microsemi's leverage reduce from a current 3.7x level toward a 3x level, the analysts project the company at that point to firmly represent an attractive target.
- Previously (September 12): Facebook's Messenger gets ability to natively process payments
- Featured – PayPal (PYPL -2.1%) to become payment option for U.S. users across various Facebook (FB +0.8%) commerce services, including Messenger. PayPal and Facebook/Messenger account linking, Messenger notifications and direct payments within merchant bots on Messenger.
- PayPal counts 192M active user accounts while Facebook registers 1B+ daily active users on its main platform and 1B+ monthly active users across Messenger.
- Earlier (today): Intuit, PayPal expand payments integration
- Related (today): Google's Android Pay targets broadened reach through partnerships with Visa and Mastercard
- Towerstream (NASDAQ:TWER) is up 7.8% after another update on its growth initiatives today.
- The company says it plans to have added 170 new On-Net buildings in the second half, with a resulting 70% increase in the number of businesses able to purchase On-Net service.
- A 4M equity financing gives it more flexibility to pursue expansion, the company said. “More and more companies are recognizing the benefits of our network," says Chief Operating Officer Arthur Giftakis. "When we reached positive EBITDA in 2Q, it marked a turning point in the company’s development, and we expect continued improvements in our operating metrics going forward.”
- Towerstream's guidance earlier this month saw it expecting to add 100 buildings in Q4 to hit 437 total, and that September contracts were expected to total $780,000 in annualized revenue when they were installed.
- Rockwell Automation (ROK -2.8%) is sharply lower after Schneider Electric (OTCPK:SBGSF) denies rumors that it might attempt to take over the company.
- Reports last Friday suggested that Schneider was targeting ROK for a potential acquisition at ~$18B, compared to current ~$15.5B market cap, a deal some analysts viewed deal as attractive, thus boosting the credence for the rumors.
- ROK is not commenting on the reports.
- Android Pay (GOOG, GOOGL) functionality on hundreds of thousands of sites accepting Visa Checkout (V +1.2%) and Masterpass (MA +0.5%) to come.
- Integrations to begin rolling out in early 2017.
- Competition in the digital payments arena is sharp, with offerings from Apple, Samsung, PayPal and others all focused on simplifying the process of transacting payments. Google, with its newly-launched Pixel, and Apple, however, are in unique positions to blend their respective payments operations throughout software and hardware at a time when the spotlight on ecosystems is particularly bright.
- Related (October 4): Apple Pay now available in Russia
- Blog post
- DragonWave (NASDAQ:DRWI) -- making moves up lately based on product deal announcements -- is up 3% again today on news it's been selected for a critical communications network upgrade in Australia.
- The company's local partner there, CommTel Network Solutions, will use DragonWave's Harmony Radio links and Hub 800 switches as part of the upgrade for Australia's "leading telecom and information services company."
- The Harmony solution will let the company easily swap out radios without extensive re-cabling, CommTel chief Robert Green says, and establishes a "scalable network solution with features that can support future network evolution."
- Gene Munster, noting Apple's (AAPL +0.6%) a top pick at the firm, projects shares to "move higher as we approach the iPhone 10th anniversary release in the fall of 2017 and "rise over the next two years as investors slowly appreciate the sustainability and profitability" of Apple's services prospects. Apple recorded a 19% Y/Y increase in services revenue last quarter.
- Rates Apple, which reports Q4/FY results tomorrow, at Overweight with a $151 target (current price $117.30).
- Previously (September 16): Piper Jaffray's Gene Munster sees strong iPhone 7 demand despite shorter retail lines
- Previously (August 19): Piper Jaffray analyst Gene Munster on Apple's battery, AR, VR and automobile prospects
Visit Seeking Alpha’s new Earnings Center
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs