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.
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)
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).