Wednesday, April 1, 2015
- Hutchison (NASDAQ:HTCH) reports preliminary FQ2 (March quarter) revenue of $62M, +2% Y/Y and below a 3-analyst $65.2M consensus. Not surprisingly (in light of Intel's warning), the company blames weak PC demand.
- Hutchison shipped ~101M hard drive suspension assemblies in FQ2, down slightly from 101.7M a year ago. ASP was $0.59 vs. $0.58 in FQ1 and $0.57 a year ago.
- CEO Rick Penn: "Cloud and hyperscale applications are expected to provide future growth for suspension assembly demand, but our current demand is still heavily weighted to PC applications ... customer interest in our shape memory alloy (SMA) technology is encouraging ... The smartphone camera market is in the early phases of adopting OIS technology, and as we've stated previously, we are still in the initial stages of developing this new opportunity." An OIS actuator deal for an Android phone made by Taiwan's InFocus was uncovered in January.
- Shares haven't moved yet AH.
- Though it beat FQ2 estimates, Micron (NASDAQ:MU) has guided in its earnings slides (.pdf) for FQ3 revenue of $3.8B-$4.05B, below a $4.29B consensus. At the same time, a light outlook was expected by many.
- Lifting FQ2 sales: Trade NAND sales rose 12% Q/Q, in spite of guidance for production to be flat to down by a low-single digit %. DRAM sales fell 9%; production guidance was for a high-single to low-double digit drop.
- DRAM and trade NAND ASPs respectively fell 6% and 9% Q/Q, below guidance of flat to down low-single digits. However, DRAM cost/bit fell 4% (better than guidance for a flat cost/bit), and trade NAND cost/bit fell 3% (better than guidance for a mid-single digit increase).
- FQ3 DRAM guidance: High-single digit production growth (20nm transition), high-single digit ASP decline (PC price pressure), low single-digit cost/bit decline. FQ3 trade NAND guidance: Low-single digit production decline, mid-single digit ASP growth, mid-single digit cost/bit growth.
- FQ2 gross margin was 34%, down from FQ1's 36% and flat Y/Y. SG&A spend rose 6% Y/Y to $187M; R&D spend rose 10% to $379M. DRAM was 65% of revenue, NAND 32% (trade NAND 29%), and other products (e.g. NOR flash) 3%.
- Free cash flow was (op. cash flow - capex) was $399M. The FY15 capex budget remains at $3.6B-$4B. Micron ended FQ2 with $6.35B in cash/marketable investments, and $6.7B in debt.
- MU +1.3% AH to $27.48.
- FQ2 results, PR
- Update (5:30PM ET): Micron is now down 1.9% AH.
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- Monsanto (NYSE:MON) -0.6% premarket after missing expectations for FQ2 earnings and revenues on weakness in both its seeds and genomics and agricultural productivity businesses.
- MON says current guidance for FY 2015 EPS is trending at the lower end of its previously forecast $5.75-$6.00 range and below the $5.84 analyst consensus estimate, as a strengthening U.S. dollar erodes sales abroad; MON says the negative effect of currency moves would reduce EPS by $0.35-$0.40.
- FQ2 corn seed and trait sales fell 15% Y/Y to $2.91B, but MON says it remains on track to hold or grow its branded corn-share footprint in every major market despite the decline in acres of corn being planted.
- Soybean seed and traits sales rose 7.7% to $883M; sales in the agricultural productivity business, which consists of crop-protection products and herbicides, fell 14% to $1.02B.
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- Retractable Technologies (RVP +1.8%) Q4 results: Revenues: $10.7M (+42.7%); COGS: $6.4M (+25.5%); Operating Expenses: $3.5M (-7.9%); Operating Income: $0.8M (+157.1%); Net Income: $0.5M (+129.4%); EPS: $0.02 (+133.3%).
- FY2014 results: Revenues: $34.5M (+12.0%); COGS: $22.5M (+9.8%); Operating Expenses: $14.2M (-12.3%); Operating Loss: ($2.2M) (+62.7%); Net Loss: ($3.3M) (+53.5%); Loss Per Share: ($0.12) (+53.8%); Quick Assets: $22.2M (-19.6%).
- No guidance given.
- Unifirst (NYSE:UNF) reports a 6.03% rise in Core Laundry operations revenue to $332.07M in FQ2.
- Specialty Garments segment revenue fell 8.55% to $18.66M primarily as a result of reduced power reactor business in North America Y/Y.
- First Aid segment revenue grew 3.40% to $10.73M.
- Gross profit rate increased 73 bps to 38.06%.
- Segment earnings: Core Laundry operations: $40.92M (+3.75%); Specialty Garment: -$0.44M (-239.42%); First Aid: $1.06M (+9.60%).
- FY2015 Guidance: Revenues: to be at lower end of previously stated range of $1.45B to $1.47B Diluted EPS: $5.65 to $5.85.
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