Today - Friday, October 24, 2014
- Thirty-one banks are set to participate in the Fed's 2015 stress tests, which will see how they can withstand pressures such as a spike in oil prices, a rise in the U.S. unemployment rate or an increase in risky corporate loans. The capital plans are due in January.
- Among the bank's that failed last year's tests are Citigroup (NYSE:C), HSBC (NYSE:HSBC), Santander (NYSE:SAN) and RBS (NYSE:RBS).
- Deutsche Bank (NYSE:DB) will participate for the first time, and has already felt pressure from the NY Fed, which has told it in a private letter that its regulatory reports were "low quality, inaccurate and unreliable".
- This Sunday, the ECB will release results for stress tests of 130 eurozone banks amid a deteriorating economic outlook for the region.
- The in-house financing arm of General Motors (NYSE:GM), GM Financial, says it received additional subpoenas in September from state attorneys general and other authorities over its subprime auto lending and securitization practices.
- The auto lender received a similar subpoena from the U.S. Department of Justice in July.
- Lockheed Martin (NYSE:LMT) and U.S. defense officials have reached agreement on the terms of a contract worth about $4B for an eighth batch of 43 F-35 fighter jets, Reuters reports.
- The new contract lowers the cost of the jets by about 3%,
- Both sides had expected to reach a deal early in the summer, but negotiations slowed after an engine failure in June grounded the entire F-35 fleet for weeks.
- LMT +0.6% premarket
- Toyota (NYSE:TM) is now the next automaker to sell a stake in Tesla (NASDAQ:TSLA), although it did not disclose the timing or amount of the sale.
- Daimler unloaded its remaining 4% stake in the electric car earlier in the week for $780M.
- Toyota invested $50M in Tesla in May 2010 (giving it a 2.5% stake at the time), ahead of the company's IPO in June that year.
- "Can you tell us or remind us what financial measures are important to you guys ... it's a little hard to see any of them making positive progress," asked Wolfe Research's Aram Rubinson during Amazon's (NASDAQ:AMZN) Q3 CC (transcript), just one of several pointed questions offered.
- Bernstein's Carlos Kirjner asked about weak international margins - international op. loss rose to $224M from $28M a year ago - and why international's growth (14%) has fallen far behind North America's (25%). CFO Tom Szkutak (again) chalked up Amazon's losses to growth investments, and gave little detail about growth other than to state it "has been softer across a number of geographies."
- BGC's Colin Gillis asked why North American media growth (+5%) was the lowest in years. Szkutak mentioned Amazon is seeing a demand shift from textbook purchases to rentals (could be a positive for CHGG), and that heavy discounting last year made for tough comps.
- Total media revenue rose 4% to $5.2B vs. 10% in Q2, and total electronics/general merchandise revenue 26% to $14B vs. 27% in Q2. North American "Other" revenue (mostly AWS) rose 40% to $1.34B, and returned to positive Q/Q growth (15%) following huge price cuts earlier in 2014.
- Other details: 1) $170M in charges were taken, largely related to the slumping Fire Phone. 2) Paid unit growth was 21% vs. 23% in Q2, and 3rd-party sellers made up 42% of units vs. 41%. 3) Gross margin rose 120 bps Y/Y to 28.9%. 4) Fulfillment, tech/content and marketing spend respectively rose to 12.4%, 10.8%, and 4.7% of revenue from 11.5%, 9.2%, and 3.9% a year ago.
- Shares finished AH trading down 10.7%, making new 52-week lows along the way. Not factoring post-earnings estimate revisions, they now trade for 1.2x 2015E sales.
- Q3 results, guidance/details, PR
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Thursday, October 23, 2014
- Ford (NYSE:F) plans to introduce a pedestrian detecting system in the 2015 Mondeo model sold in Europe.
- The vehicle will use cameras sensors and radars to warn drivers of pedestrians in the street or about to enter it, and apply braking pressure in some cases.
- The automaker will roll out other elements of its next-gen Advanced Driver Assistance System in other Ford and Lincoln models in the near future.
- The physician - who lives in Upper Manhattan - had returned to NYC ten days ago after treating Ebola patients in West Africa. Late in the trading session today, stocks gave back some of their big gains on a report he had been hospitalized with Ebola-type symptoms.
- City officials are at work tracing the doctor's contacts to determine who else may be at risk, and his girlfriend is being tested for the disease.
- S&P 500 (NYSEARCA:SPY) futures are lower by 0.5%.
- Ebola Small-cap Index: HEB. TKMR, NLNK, NNVC, INO, OTCQB:GOVX, SRPT, CMRX, PLX, NSPH, BCRX, LAKE, APT, VSR, SMED.
- In addition to missing FQ1 revenue estimates (while slightly beating on EPS), Maxim (NASDAQ:MXIM) is guiding for FQ2 revenue of $540M-$580M and EPS of $0.26-$0.32, below a consensus of $606.5M and $0.38.
- The analog/mixed-signal chipmaker blames its FQ1 sales miss on "weakness in smartphone revenue," and adds a continued smartphone chip slump is "the catalyst for our decision to lower operating spending and reduce our manufacturing cost structure."
- Leading customer Samsung's recent troubles almost certainly have much to do with Maxim's top-line challenges. Synaptics, which also depends heavily on Samsung, posted a top and bottom-line FQ1 miss this afternoon.
- Maxim closed AH trading less than a dollar away from its 52-week low of $25.28.
- FQ1 results, PR
- Though it beat Q3 estimates, Altera (NASDAQ:ALTR) is guiding for Q4 revenue to be down 2%-6% Q/Q. That implies a range of $469.6M-$489.6M ($479.6M midpoint) vs. a $485.7M consensus.
- Q3 gross margin was 66.8%, down from 67% in Q2 and 68.3% a year ago. Q4 GM guidance is at 66%-67%.
- With the help of strong orders from 4G mobile infrastructure clients (particularly from China), telecom/wireless chip sales (45% of revenue) rose 23% Y/Y in Q3. Industrial automation, military & auto +3%; networking, computer, and storage -5%; everything else +18%. FPGAs were 85% of revenue, up from 82% a year ago.
- GAAP opex +9% Y/Y to $192.3M. $144.2M was spent on buybacks.
- Shares had rallied after Xilinx posted an FQ2 beat a week ago.
- Q3 results, PR
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- Swift Transportation's (NYSE:SWFT) Q3 operating ratio improved 90 bps to 90.9% and adjusted operating ratio improved 110 bps to 88.2%.
- Consolidated Average Operational Truck Count increased more than 500 trucks Y/Y.
- Truckload Adjusted Operating Ratio improved 290 bps Y/Y.
- Guidance: FY'14 EPS $1.29 - 1.33 vs. $1.27 consensus; FY'15 EPS $1.62 - 1.72 vs. $1.65 consensus.
- Shares +2% AH.
- Previously: Swift Transportation beats by $0.04, misses on revenue