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  • Today - Friday, August 22, 2014

  • 6:33 PM
    • Down initially in response to its soft FQ3 guidance, Marvell (MRVL +1.7%) finished the day moderately higher. Brean and RBC lowered their targets, but both maintain bullish ratings.
    • On the FQ2 CC (transcript), CEO Sehat Sutardja mentioned both FQ2 and FQ3 sales have been hurt by soft 3G baseband chip demand from a major Asian client (widely believed to be Samsung). At the same time, he noted both Marvell's storage (hard drive/SSD controller) and networking chip sales rose 6% Q/Q.
    • Flat to "modest" Q/Q growth is expected for both storage and networking in FQ3. Sutardja states Marvell maintains a 60%+ hard drive controller share, and remains the top supplier of SSD controllers (no specific number is given).
    • FBR's Chris Rolland thinks some investors will view the 3G weakness as "neutral to positive," given the business carries "significantly below average" margins and profitability. "At some point, we believe investors will look past the 'distraction' that is mobile and recognize the solid storage and networking business underneath, but timing remains uncertain."
    • UBS' Stephen Chin is more cautious: He thinks getting Marvell's baseband ops (heavily dependent on China) to reach breakeven will "remain challenging," given demand is shifting towards 4G phones faster than Marvell can ramp 4G baseband volumes, and that Qualcomm and MediaTek provide tough competition. Broadcom can sympathize.
    | 1 Comment
  • 4:22 PM
    • IF Bancorp (NASDAQ:IROQ): FQ4 EPS of $0.25.
    • Revenue of $15.8M (+9.0% Y/Y).
    • Press Release
    | Comment!
  • 4:20 PM
    • AllianceBernstein Global High Income Fund (NYSE:AWF): FQ1 NII of $0.25
    • Press Release
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  • 4:15 PM
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  • 12:59 PM
    • Salesforce's (NYSE:CRM) 33% Y/Y FQ2 billings growth was better than a Street forecast of 28%, says Nomura (Buy). The firm also estimates organic revenue growth was 28% (total growth was 38%), and notes op. cash flow grew 34% to $246M.
    • Nomura sees Salesforce's Microsoft partnership yielding favorable press this fall, and also thinks Salesforce will announce a new cloud service, possibly by leveraging recently-acquired CRM analytics startup RelateIQ.
    • BofA/Merrill (Buy) also talks up Salesforce's billings/cash flow growth, and points out the company's backlog ($7.35B) is now 24% above forward revenue estimates. FBR likes the fact op. margin (a recent concern, given heavy spending) rose 130 bps.
    • Goldman (Conviction Buy) observes FQ3 guidance implies ~25% billings growth, which in turn points to a pickup in organic growth. "We believe CRM continues to be the preeminent SaaS vendor with significant runway ahead."
    • On the CC (transcript), Salesforce mentioned it struck major deals with 3M and Safeway during FQ2, and expanded relationships with GM, P&G, and Yahoo (among others). The company also claimed European deal activity is picking up. Marc Benioff: "Europe tends to be a laggard when it comes to implementing new technology. And that has not escaped our cloud companies."
    • Prior Salesforce earnings coverage
    | Comment!
  • 11:59 AM
    • Accuray (ARAY +4.1%) fiscal Q4 and full year results:
    • Q4: Revenues: $102.0M (+20.1%); Gross Profit: $38.4M (+40.7%); Operating Expenses: $43.1M (+7.8%); Operating Loss: ($4.7M) (+63.0%); Net Loss: ($9.8M) (+47.6%); Loss Per Share: ($0.13) (+48.0%); Quick Assets: $171.9M (-1.4%).
    • Fiscal 2014: Revenues: $369.4M (+16.9%); Gross Profit: $142.8M (+46.3%); Operating Loss: ($18.1M) (+77.6%); Net Loss: ($35.4M) (+65.7%); Loss Per Share: ($0.47) (+64.7%).
    • Fiscal 2015 Guidance: Revenues: $390M - 410M; non-GAAP EBITDA: $18M - 27M.
    | Comment!
  • 11:12 AM
    • Deswell Industries (NASDAQ:DSWL): Q1 EPS of $0 vs. -$0.11 in Q113.
    • Revenue of $8.9M (-19.8% Y/Y).
    • Press Release
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  • 10:19 AM
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  • 7:39 AM
    • Excluding specific items, net income of $2.418B of $1.62 per share vs. $2.195B and $1.45 one year ago. ROE of 20% slips 40 basis points.
    • Personal & Commercial Banking net income up 1% from a year ago after excluding the loss related to the sale of RBC Jamaica.
    • Wealth Management net income of $285M up 22%.
    • Insurance net income of $214M up 34%.
    • Investor & Treasury Services net income of $110M up 6%.
    • Capital Markets net income hits a record $641M up 66%. "Trading and origination activity was robust this quarter."
    • Basel III CET 1 ratio of 9.5% down 20 basis points from last quarter.
    • Previously: Royal Bank of Canada boosts dividend by 6%
    • Previously: Royal Bank of Canada beats by C$0.06
    • Conference call at 8 ET
    • RY flat permarket
    | Comment!
  • 7:31 AM
    • ANN (NYSE:ANN): Q2 EPS of $0.70 beats by $0.02.
    • Revenue of $648.7M (+1.6% Y/Y) in-line.
    • Press Release
    | Comment!
  • 7:29 AM
    • Royal Bank of Canada (NYSE:RY): FQ3 EPS of C$1.62 beats by C$0.06.
    | Comment!
  • 7:06 AM
    • Foot Locker (NYSE:FL) reports comparable-store sales rose 7% in Q2.
    • Gross margin rate +80 bps to 32.0%.
    • SG&A expense ratio -70 bps to 20.9%.
    • Inventory +2.2% to $1.335B.
    • Store count -13 to 3,460.
    • FL +2.6% premarket
    | Comment!
  • 7:01 AM
    • Foot Locker (NYSE:FL): Q2 EPS of $0.64 beats by $0.10.
    • Revenue of $1.64B (+13.1% Y/Y) beats by $70M.
    • Press Release
    | Comment!
  • 6:33 AM
    • Hibbett Sports (NASDAQ:HIBB): Q2 EPS of $0.32 beats by $0.01.
    • Revenue of $193.9M (+4.1% Y/Y) misses by $7.15M.
    • Press Release
    | Comment!
  • Thursday, August 21, 2014

  • 6:48 PM
    • Thanks partly to an accounting policy change that will result in PC product revenue being recognized over time rather than entirely up-front, Intuit (NASDAQ:INTU) expects FY15 (ends July '15) revenue of $4.275B-$4.375B and EPS of $2.45-$2.50, well below a consensus of $4.85B and $3.97.
    • Adjusted revenue, which takes the policy change into account, is expected to be in a range of $4.75B-$4.85B.
    • Small business revenue +12% Y/Y in FQ4, with QuickBooks Online subs growing 40% Y/Y to 683K (60K added in the quarter). Consumer tax revenue +22%; ProTax +16%.
    • Costs/expenses +13% Y/Y to $787M. $152.5M was spent on buybacks.
    • FY17 targets: Revenue of $5.8B, EPS of $5, and 2M QuickBooks Online subs.
    • FQ4 results, PR
    | Comment!
  • 5:56 PM
    • Strong Xbox One/PS4 sales fueled a 124.8% Y/Y FQ2 increase in GameStop's (NYSE:GME) new hardware sales to $332.3M (19% of revenue), which in turn drove the company's big revenue beat. Comparable store sales rose 21.9%.
    • New software sales +15.6% Y/Y to $497M; pre-owned value game sales +5.5% to $558M; game accessories +17% to $107.5M; digital +6% to $52.3M; mobile/consumer electronics +85.1% to $112.1M.
    • A mix shift towards hardware led gross margin to fall 260 bps Y/Y to 31.8%. SG&A spend fell to 27.5% of revenue from 30.5%. $75.5M was spent on buybacks.
    • GameStop expects FQ3 EPS of $0.58-$0.64 (above a $0.57 consensus), with comp. sales growth of 1%-5%. FY14 EPS guidance of $3.40-$3.70 is being maintained for now (consensus is already up to $3.67); 6%-12% full-year comp. sales growth is expected.
    • FQ2 results, PR
    | Comment!
  • 5:49 PM
    • Gap (NYSE:GPS) +1.2% AH after edging analyst estimates for Q2 earnings and revenues, boosted by firm sales at its Old Navy business.
    • Q2 comp sales were flat vs. a 5% increase in the year-ago quarter; Gap sales suffered a 5% decline, Banana Republic was flat, and Old Navy gained 4% Y/Y.
    • Q2 operating margin was 14.2% vs. 13.5% a year ago, but GPS continues to expect roughly flat margin for the full year.
    • Raises FY 2014 EPS guidance to $2.95-$3.00 vs. prior forecast of $2.90-$2.95 and $2.95 analyst consensus estimate.
    • Announces plans to enter India through franchise-operated Gap brand stores in 201, starting in Mumbai and Delhi; Gap expects eventually to have ~40 stores in the country.
    | Comment!
  • 5:30 PM
  • 5:22 PM
    • Brocade (NASDAQ:BRCD) guides in its earnings slides (.pdf) for FQ4 revenue of $550M-$570M and EPS of $0.21-$0.23, in-line with a consensus of $561.3M and $0.22.
    • In spite of the Fibre Channel struggles seen by adapter card/embedded switch vendors Emulex and QLogic, Brocade's SAN product revenue (60% of total) rose 1% Q/Q and 4% Y/Y in FQ3 to $325M. SAN switch and director sales respectively rose 9% and 5% Y/Y, offsetting an adjusted 11% drop in server product (adapter/embedded switch) sales.
    • IP networking revenue rose 9% Q/Q and fell 1% Y/Y to $133M; the Y/Y drop is better than FQ2's 9%. Router weakness, product strategy changes, and the sale of Brocade's adapter card business to QLogic offset switch growth.
    • SAN products are expected to be down 1%-2% Q/Q in FQ4, and IP networking up 6%-15%. Geopolitical issues and transitions at OEM partners (i.e. IBM) are expected to weigh on SAN revenue, while high-density router launches and federal seasonality are expected to boost IP networking.
    • Gross margin rose 50 bps Q/Q and 160 bps Y/Y to 67.2%, beating guidance of 65.5%-66.5%. FQ4 GM guidance is at 66%-67%. $112M was spent on buybacks. EMC/IBM/Hitachi made up 48% of revenue vs. 47% a year ago.
    • FQ3 results, PR (.pdf)
    | 1 Comment
  • 5:15 PM
    • Aeropostale (NYSE:ARO) -9.2% AH despite posting a narrower than expected Q2 loss, as the struggling teen apparel retailer issues downside guidance for Q3, sees a loss of $0.44-$0.48/share vs. analyst consensus for a $0.35 loss.
    • Q2 gross margin narrowed to 15.8% from 17.9%, but input costs fell 11% to $333M.
    • ARO had pre-announced some of its Q2 results earlier in the week while announcing the return of former CEO Julian Geiger to replace Thomas Johnson.
    | Comment!
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