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  • Today - Saturday, October 25, 2014

  • 12:34 PM
    • Labor issues and a shortage of trucking equipment at the critical port complex in the Long Beach, California region threaten to disrupt shipments of holiday products to retailers.
    • Delays are running up to two or three weeks, according to port officials.
    • What to watch: Retailers potentially impacted by the port turmoil include Wal-Mart (NYSE:WMT), Macy's (NYSE:M), Kohl's (NYSE:KSS), J.C. Penney (NYSE:JCP), Ralph Lauren (NYSE:RL), American Eagles Outfitter (NYSE:AEO), Nordstrom (NYSE:JWN), and Carter's (NYSE:CRI).
  • Friday, October 24, 2014

  • 6:58 PM
    • Thanks in large part to a 41% increase in taxes, America Movil's (AMX -0.9%) Q3 net income fell 39% Y/Y to 10.1B pesos ($746M). EBITDA (adjusted for the Telekom Austria deal) rose 0.4% to 69.2B pesos ($5.1B).
    • On an adjusted basis, service revenue rose 3.8% to 198.6B pesos ($14.6B), a slight improvement from Q2's 3.6% growth. Equipment revenue rose 6.2% to 22.2B pesos ($1.6B), and costs/expenses 5.8% to 151.7B pesos ($11.2B).
    • Total wireless lines +0.1% Q/Q and +0.5% Y/Y to 286.8M. Mexican lines fell 1.1% Q/Q to 70.5M amid regulatory pressure, but Brazilian lines rose 1.3% to 69.6M, and U.S. lines (via TracFone's prepaid services)1.5% to 25.9M.
    • Wireline revenue-generating units (RGUs) rose 1.8% Q/Q and 6.8% Y/Y to 77.6M. Mexican RGUs fell 0.1% Q/Q to 22.2M, while Brazilian RGUs rose 3.1% to 35.6M (~46% of total RGUs).
    • Net debt fell by $2.3B during the quarter to $36.2B.
    • AMX used its Q3 CC to state its isn't currently talking to anyone about a T-Mobile USA (TMUS +1.3%) acquisition. A German magazine speculated yesterday (while reporting Deutsche Telekom is still open to a T-Mobile sale) AMX could bid for T-Mobile.
    • Earnings Release (.pdf)
  • 6:18 PM
    • Re/code reports Larry Page has signed off on a reorg that puts respected Android/Chrome/Google Apps chief Sundar Pichai in charge of Google's (NASDAQ:GOOG) core products.
    • Pichai will reportedly "have purview over research, search, maps, Google+, commerce and ads and infrastructure," in addition to his current responsibilities. The six execs responsible for the aforementioned product areas will now report to Pichai instead of Page. However, YouTube chief Susan Wojcicki will keep reporting to Page.
    • Page's decision is said to be driven by a wish to spend more time on the "bigger picture," and by concerns Google will become less innovative/agile as it ages. The co-founder/CEO will still be directly in charge of business and operations, as well as Nest, Calico, Google X, and a few other areas.
    • It was only last year that Pichai replaced Andy Rubin as Google's Android chief.
    • Update: A Google spokesman has confirmed the reorg.
  • 6:00 PM
    • S&P +0.74%.
    • 10-yr +0.02%.
    • Euro +0.17% vs. dollar.
    • Crude -0.96% to $81.30.
    • Gold +0.15% to $1,230.90.
    | Comment!
  • 5:52 PM
    • "Investor pessimism doesn’t seem to dampen [Jeff] Bezos’s appetite for risk. Employees unsettled by Amazon’s (AMZN -8.2%) steadily depreciating stock price are probably the only thing that can force Bezos to slow down," writes BloombergBusinessweek's Brad Stone in the wake of Amazon's Q3 miss and soft guidance.
    • Stone, who wrote a popular book on Bezos and Amazon, notes declining employee stock grant values caused by investor angst over Amazon's losses could increase employee turnover, something management is unlikely to ignore. Thus, curbing spending (with the goal of boosting Amazon's shares) could go hand-in-hand with keeping needed employees happy.
    • How much could lower spending boost profits? In a much-discussed September post, Benedict Evans estimated Amazon's trailing free cash flow would be around $4B (rather than a current $1.08B) if its capex/sales ratio remained at 2009 levels.
    • Nonetheless, Evans defended Bezos' strategy: "Amazon has perhaps 1% of the US retail market by value ... Jeff Bezos’s view is pretty clear: keep investing, because to take profit out of the business would be to waste the opportunity ... The question to ask isn’t whether Amazon is some profitless ponzi scheme, but whether you believe Bezos can capture the future."
    • The sell-side was in a less forgiving mood today: Two downgrades arrived (from Cowen and Janney), as did a slew of target cuts. Notably, analysts often expressed more concerns about Amazon's top-line growth slowdown (particularly for media and international sales) than its bottom-line pressures.
    • Prior Amazon earnings coverage
  • 5:40 PM
    • DST Systems (NYSE:DST) declares $0.30/share quarterly dividend, in line with previous.
    • Forward yield 1.35%
    • Payable Dec. 12; for shareholders of record Nov. 26; ex-div Nov. 24.
    | Comment!
  • 5:37 PM
    • Top gainers, as of 5:15 p.m.: NGD +4.4%. LAKE +2.4%. RGLS +2.1%. FBR +1.3%. MLNX +1.1%.
    • Top losers, as of 5:15 p.m.: PX -7.2%. HTCH -2.6%. VSR -2.3%. CIG -2.2%. OCR -2.2%.
    | Comment!
  • 5:16 PM
    • A Brazilian site has reported acquisition-hungry Alibaba (BABA +1.4%) is looking for local M&A targets. Latin American e-commerce giant MercadoLibre (MELI +4.4%), which gets a large chunk of its revenue from Brazil, rallied today.
    • Alibaba already has a sizable Brazilian presence courtesy of its AliExpress site, which sells Chinese goods at wholesale prices to non-Chinese consumers. An estimated 12M+ Brazilians visited AliExpress (available in Portuguese) in July. Steep local prices for various consumer goods has boosted Alibaba's appeal.
    • Altogether, Alibaba's international commerce revenue rose 31% Y/Y in calendar Q2 to $237M, and made up 9% of total revenue.
    • Earlier: Alibaba thinking of buying 37% stake in Lion's Gate
  • 5:00 PM
    • S&P +0.71%.
    • 10-yr +0.02%.
    • Euro +0.19% vs. dollar.
    • Crude -0.96% to $81.30.
    • Gold +0.15% to $1,230.90.
    | Comment!
  • 4:46 PM
    • Roku is working with BofA/Merrill and Citi on an IPO that could raise up to $150M, the WSJ reports. No word yet on the ETA, or the valuation Roku is seeking.
    • Bloomberg reported in February Roku was mulling an IPO. The Web streaming set-top vendor has held its own in a market that also features Apple, Amazon, and TiVo.
    • CEO Anthony Wood recently stated Roku had 2013 sales of $190M, and is nearing profitability. The company added a $50 HDMI streaming stick to its lineup this spring.
  • 4:42 PM
    • GNC Holdings (NYSE:GNC) declares $0.16/share quarterly dividend, in line with previous.
    • Forward yield 1.62%
    • Payable Dec. 26; for shareholders of record Dec. 12; ex-div Dec. 10.
    | Comment!
  • 4:39 PM
    • Emclaire Financial (NASDAQ:EMCF): Q3 EPS of $0.56
    • Revenue of $5.1M (+1.2% Y/Y).
    • Press Release
    | Comment!
  • 4:30 PM
    • The WSJ reports H-P (HPQ -0.1%) wants to sell at least 51% of H3C Technologies, a Chinese subsidiary that has grown to become the country's top enterprise switch/router vendor. A source thinks the unit could fetch $5B in a full sale. P-E firms are reportedly being contacted.
    • H3C has over 5K employees. It was originally formed as a JV between 3Com and Chinese IT giant Huawei. 3Com bought out Huawei's stake for $882M in 2006, and was in turn acquired by H-P in 2010.
    • In addition to switches and routers, H3C sells Wi-Fi access points/controllers, firewalls, and cloud and network management software. A fair amount of overlap exists with H-P's  core networking unit.
    • Networking has been a relative bright spot for H-P: Sales rose 4% Y/Y in the July quarter. But the company has hinted it wants to streamline ahead of its planned split. It might also be nervous about growing Chinese government pressure on U.S. tech companies following last year's NSA spying uproar.
  • 4:27 PM
    • Waterstone Financial (NASDAQ:WSBF): Q3 EPS of $0.14
    • Revenue of $34.82M (+13.8% Y/Y).
    • Press Release
    | Comment!
  • 4:25 PM
    • Northeast Bancorp (NASDAQ:NBN): Q1 EPS of $0.16
    • Revenue of $10.62M (+30.0% Y/Y)
    • Press Release
    | Comment!
  • 4:18 PM
    • Northeast Bancorp (NASDAQ:NBN) declares $0.01/share quarterly dividend, in line with previous.
    • Forward yield 0.45%
    • Payable Nov. 20; for shareholders of record Nov. 6; ex-div Nov. 4.
    | Comment!
  • 4:17 PM
    • ArcBest Corporation (NASDAQ:ARCB) declares $0.06/share quarterly dividend, 100.0% increase from prior dividend of $0.03.
    • Forward yield 0.67%
    • Payable Nov. 21; for shareholders of record Nov. 7; ex-div Nov. 5.
    | Comment!
  • 4:14 PM
    | 1 Comment
  • 4:07 PM
    • Sagent Pharmaceuticals (SGNT -0.9%) will report Q3 results on November 4 before the open. The conference call will begin at 8:00 am CT/9:00 am ET.
    • Consensus view is a loss of ($0.04) per share on revenues of $64M.
    | Comment!
  • 4:00 PM
    • Dow +0.76% to 16,803.84. S&P +0.70% to 1,964.53. Nasdaq +0.69% to 4,483.71.
    • Treasurys: 30-year +0.08%. 10-yr +0.02%. 5-yr +0.03%.
    • Commodities: Crude -0.91% to $81.34. Gold +0.17% to $1,231.20.
    • Currencies: Euro +0.16% vs. dollar. Yen -0.15%. Pound -0.32%.
    | Comment!
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