Seeking Alpha
  • Today - Thursday, April 24, 2014

  • 10:40 PM
    • After initially trading higher following its Q1 revenue beat, Amazon (AMZN) finished AH trading up just 0.3%. A possible factor: CFO Tom Szuktak shared on the CC Amazon's Y/Y paid unit growth fell to 23% in Q1 from 25% in Q4 and 29% in Q3. Slowing unit growth "remains a yellow flag since [the metric] is a better proxy than revenues for the overall velocity of the business," says Baird's Colin Sebastian.
    • While paid unit growth slowed, "Other" North American revenue, a segment dominated by Amazon Web Services, saw revenue growth accelerate to 60% from 52% in Q4. For now, the segment only accounts for 6% of revenue.
    • Thanks to AWS and 28% EGM growth, North American sales growth (+26%) was roughly even with Q4. International sales growth picked up to 18% from 13%, with 27% EGM growth offsetting 4% media growth.
    • AWS and 3rd-party fulfillment growth helped gross margin rise 230 bps Y/Y to 28.8%. But fulfillment spend rose to 11.7% of revenue from 11.1% a year ago, tech/content spend (boosted by video licensing and AWS capex) to 10% from 8.6%, and marketing to 4.4% from 3.9%.
    • Meanwhile, the WSJ reports Amazon is quietly testing its own delivery network (trucks and all) in San Francisco, L.A., and NYC. It's probably not a coincidence all three markets are ones in which the AmazonFresh same-delivery has launched, or is expected to.
    • Q1 results, guidance/details, PR
    | 1 Comment
  • 7:23 PM
    • Plug Power (PLUG) sold 22.6M shares - far more than the 15M it had filed to sell - at $5.50 each, in its biggest stock sale ever today, showing continuing investor demand for some smaller tech companies despite the fuel cell company's turbulent trading history.
    • The offering raised $124.3M before the potential sale of additional shares to underwriters; PLUG has conducted five stock offerings since the start of last year, each raising $30M at most.
    • PLUG brought in Morgan Stanley to lead the offering with Barclays while demoting Cowen & Co., the banker on its last three equity sales, to a passive role in favor of underwriters that rank among the top 10 by market share in arranging U.S. stock sales.
    | 32 Comments
  • 7:04 PM
    • Freescale (FSL) has hired Dan Durn, formerly the CFO of #2 chip foundry Globalfoundries, to be its new CFO, starting in June. Durn will replace Alan Campbell, who announced plans to retire in January.
    • The chipmaker has guided in its Q1 report for Q2 revenue of $1.14B-$1.2B, above a $1.13B consensus. Gross margin is expected to rise 50-75 bps from a Q1 level of 44.8%.
    • FSL -1.7% AH in spite of the guidance and a Q1 beat. Shares went into earnings trading within a hair's breadth of their 52-week high of $26.
    • Q1 results, PR
    | Comment!
  • 7:02 PM
    • Weatherford (WFT) pushes ahead with its corporate downsizing, saying in its Q1 earnings report that it has so far identified more than 6,600 positions for elimination and completed ~56% of its planned workforce, with an estimated pretax annualized savings of $263M.
    • WFT also says it began the process of closing 20 underperforming operating locations in various countries.
    • Reaffirms guidance for FY 2014, seeing EPS of $1.10-$1.20 vs. $1.00 analyst consensus estimate.
    | Comment!
  • 6:48 PM
    • Along with its Q1 results, Itron (ITRI) announces CFO Steven Helmbrecht is leaving at year's end. A search will commence for a replacement.
    • Helmbrecht, 50, has been Itron's CFO since 2005.
    • Itron also announces it has won a deal to provide Mitsubishi Electric with smart grid software for a 10M-unit smart meter deployment with Japan's 3rd-largest utility.
    | Comment!
  • 6:46 PM
    • Basic Energy Services, Inc. (BAS): Q1 EPS of -$0.05 beats by $0.04.
    • Revenue of $336.8M (+10.6% Y/Y) beats by $8.76M.
    • Press Release
    | 1 Comment
  • 6:45 PM
    • Forum Energy Technologies (FET): Q1 EPS of $0.40 beats by $0.02.
    • Revenue of $404M (+8.3% Y/Y) beats by $0.83M.
    • Press Release
    | Comment!
  • 6:44 PM
    • The world's top three platinum producers - Amplats (AGPPY, AGPPF), Impala Platinum (IMPUY, IMPUF) and Lonmin (LNMIF, LNMIY) - say they will bypass the union representing tens of thousands of South African miners and offer a new wage deal directly to their employees, after talks aimed at ending three months of strikes hit an impasse.
    • Although the move doesn't bring an end to negotiations with the AMCA union, it could further damage already strained relations between management and strike leaders.
    | Comment!
  • 6:37 PM
    • Briggs & Stratton Corporation (BGG): FQ3 EPS of $0.81 misses by $0.07.
    • Revenue of $628.4M (-1.4% Y/Y) beats by $1.17M.
    • Press Release
    | Comment!
  • 6:35 PM
    • Marketo (MKTO) expects Q2 revenue of $33M-$34M and EPS of -$0.30 to -$0.32 vs. a consensus of $32.3M and -$0.29. Full-year guidance is for revenue of $138M-$141M and EPS of -$1.00 to -$1.06, above a consensus of $134.6M and -$1.12. The company's deferred revenue balance rose 10% Q/Q and 86% Y/Y in Q1 to $45.6M. Shares +9.5% AH. (Q1 results, PR)
    • HomeAway (AWAY) expects Q2 revenue of $109M-$111M (above a $108.2M consensus) and adjusted EBITDA of $28M-$29M. 2014 guidance is for revenue of $435M-$442.5M (above a $433.7M consensus) and adjusted EBITDA of $117M-$122.5M. Shares -1.9% AH. (Q1 results, PR)
    • KLA-Tencor (KLAC) guides on its CC for FQ4 revenue of $700M-$760M and EPS of $0.75-$0.95, below a consensus of $832.5M and $1.16. The company blames delays among clients in ramping production of chips featuring 3D transistors, and (like Lam Research) notes 3D NAND production is being pushed out. Shares -5.1% AH. (FQ3 results, PR)
    | Comment!
  • 6:35 PM
    • Newmont Mining Corporation (NEM): Q1 EPS of $0.22 beats by $0.03.
    • Revenue of $1.76B (-19.3% Y/Y) misses by $90M.
    • Press Release
    | Comment!
  • 6:32 PM
    • Total revenues: $570M (+10.9%), revenues net of acquisitions and recalls/returns: $519.8M (+6.3%), gross profit: $255.5M (+10.1%), EPS: $0.91 (+7.1%).
    • U.S. revenues: $392.1M (+7.8%), international revenues: $177.9M (+18.5%).
    • CF Ops: $144.5M (+47.1%).
    • (SRCL)
    | Comment!
  • 6:25 PM
    • Under Armour (UA) and Navient (NAVIV) are added to the S&P 500 index, effective April 30.
    • Out of the index are SLM Corp. (SLM), which is splitting into two companies - Navient, and a consumer banking operation that will continue under the Sallie Mae brand - and Beam (BEAM), which was acquired by Suntory Holdings.
    • SLM moves for now to the S&P MidCap 400, ousting Alpha Natural Resources (ANR).
    | Comment!
  • 6:21 PM
    • Revenues: $784.8 (+15%), net income: $110M (0%), EPS: $0.31 (-50%)
    • Bookings: $910.2M (+14%).
    • CF Ops: $155.8M (-27.1%)
    • Days sales outstanding: 66 (-4.3%).
    • Total backlog: $9.24B (+22%).
    • Q2 guidance:
    • Revenues: $790M - $830M.
    • New business bookings: $1B - $1.06B.
    • Adjusted EPS: $0.36 - $0.37 (includes share-based comp expense).
    • Updated 2014 guidance:
    • Revenues: $3.25B - $3.4B, up from $3.2B - $3.4B.
    • Adjusted EPS: $1.51 - $1.55 (includes share-based comp expense).
    • (CERN)
    • Press release
    | Comment!
  • 6:09 PM
    • Microsoft (MSFT) guides on its CC for FQ4 revenue of $20.4B-$21B, slightly below a $21.04B consensus. The company's FQ3 guidance proved conservative, and investors are assuming as much for its FQ4 outlook.
    • The revenue outlook for individual reporting groups: devices & consumer licensing $4.1B-$4.3B, D&C hardware $1.3B-$1.5B, D&C other $1.9B, commercial licensing $11B-$11.2B, commercial other $2.1B.
    • Xbox channel inventory drawdown is expected to impact D&C hardware, and a lower impact from Win. 7 upgrades caused by the end of XP support will affect D&C licensing. Commercial other is expected to see ~10% Q/Q growth on the back of cloud services (Office 365, Azure) demand.
    • Opex is expected to grow 4% Y/Y to $8.4B-$8.6B after adjusting for an EU fine. Capex is expected to total $1.5B (cloud investments), and unearned revenue to grow in line with seasonality. A tax rate of 18%-20% is forecast.
    • Microsoft's unearned revenue balance rose 14% Y/Y in FQ3 to $19.5B, topping guidance and exceeding FQ2's 12% clip. Bookings rose 6%, down from FQ2's 12%. The company's contracted but not billed balance closed above $22B (up over $1B Y/Y).
    • MSFT +2.7% AH. FQ3 results, details, earnings slides (.ppt), guidance (.ppt), prepared remarks (.doc)
    | 3 Comments
  • 6:09 PM
    | Comment!
  • 6:09 PM
    • SEACOR Holdings (CKH): Q1 EPS of $0.56.
    • Revenue of $310M misses by $10.08M.
    • Press Release
    | Comment!
  • 6:05 PM
    • Clean Harbors (CLH) +8.6% AH on news that activist hedge fund Relational Investors acquired a ~9% stake in the company.
    • Relational says CLH’s dominant position in hazardous waste collection, transportation and disposal is severely underappreciated, and urges the company to focus on its core business, buy back stock and pursue asset sales or spinoffs.
    | Comment!
  • 6:01 PM
    • United Community Bancorp (UCBA) declares $0.06/share quarterly dividend, in line with previous.
    • Forward yield 2.12%
    • Payable May 29; for shareholders of record May 9; ex-div May 7.
    | Comment!
  • 6:00 PM
     
    • S&P -0.03%.
    • 10-yr +0.02%.
    • Euro 0.% vs. dollar.
    • Crude 0% to $101.93.
    • Gold +0.08% to $1294.
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