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  • Friday, September 19, 2014

  • 4:54 PM
    • Though Oracle's (ORCL -4%) cloud-related sales saw healthy growth in FQ1, its core database business saw negative license growth, notes Deutsche's Karl Keirstead, downgrading shares to Hold. "Coupled with Larry Ellison’s decision to give up the CEO role, our confidence in the core database business is getting tested and we’d prefer to step to the sidelines while Oracle shares are still near their 10-year high."
    • While Oracle blames the database weakness on tough comps and sales execution - the latter is a common excuse among enterprise software firms - Keirstead also sees other factors at work: A mature relational database market; Microsoft's share gains; and a secular shift to new data types (e.g. Hadoop/NoSQL) and cloud apps (often running on non-Oracle databases). He estimates Oracle's FQ2 guidance implies a 3%-4% Y/Y drop in license revenue.
    • D.A. Davidson (Neutral) also isn't thrilled with Oracle's numbers. "ORCL's financial results have now either missed or come in at the low end of management's guidance range in 7 of the last 9 quarters." Ditto Sterne Agee: "Given the current moderate size of the cloud business, the transition will span several years and create both revenue and EPS estimate volatility."
    • On the other hand, Sterne (like many others) isn't concerned about Oracle's CEO change, calling it "more of a change in titles than in functions." On the CC (transcript), new co-CEOs Safra Catz and Mark Hurd insisted there will be no major operational changes.
    • Wedbush, however, sees negative long-term implications. "Mr. Ellison's desire to delegate more responsibility (and credit) to Safra Catz and Mark Hurd is understandable ... but it underlines our view that Oracle's days as an organic grower are rapidly coming to an end."
    • Prior Oracle coverage
    | Comment!
  • 12:58 PM
    • Zynex (OTCPK:ZYXI +18.6%) will report Q2 results on Thursday, September 26, 2014 before the open. Consensus estimate is a loss of ($0.03) per share on revenues of $3.5M.
    | Comment!
  • 12:52 PM
    • Tenax Therapeutics (TENX N/A), formerly known as Oxygen Biotherapeutics (OXBT) will conduct a conference call next Wednesday, September 25, 2014 at 8:30 am ET to provide a corporate update and discuss fiscal Q1 results.
    | Comment!
  • 7:50 AM
    • Rockwell Collins (NYSE:COL) has announced guidance for fiscal year 2015, including - revenue between $5.2B-$5.3B; EPS of $4.90-$5.10; cash flow from operations of $675M-$775M.
    • Total segment operating margins are expected to be in the range of 20.5- 21.5%.
    • The company's Board of Directors has also authorized an additional $500M for share repurchases of common stock.
    | Comment!
  • 7:04 AM
    • Valmont Industries (NYSE:VMI) has lowered its 2014 earnings outlook due to delayed deliveries, pricing in certain sectors and recent farm commodity price trends and harvest expectations in North America.
    • The company has now expects full-year diluted earnings per share to be in the range of $8.70 to $8.90 from a prior guidance of between $9.35 and $9.65 per diluted share.
    | Comment!
  • Thursday, September 18, 2014

  • 6:45 PM
    • Tibco (NASDAQ:TIBX) guided on its FQ3 CC for FQ4 revenue of $290M-$305M and EPS of $0.18-$0.24, below a consensus of $313M and $0.32.
    • The company blames its FQ3 miss on a shift to subscription licensing from up-front payments - Oracle has offered a similar excuse for its near-term issues - and weaker-than-expected European sales. At the same time, Tibco claims it saw "a solid sequential improvement" for sales of its Spotfire analytics/data visualization platform, which had slumped earlier this year.
    • FQ3 software license revenue -20% Y/Y to $85.9M, with subscription revenue totaling $13.2M; service/maintenance revenue (driven by past deals) +4% to $169.6M.
    • GAAP sales/marketing spend grew 11% to $93.2M, while R&D spend fell 3% to $41.9M.
    • Tibco is just 15 days removed from officially launching a strategic review.
    • FQ3 results, PR
    | Comment!
  • 5:54 PM
    • Red Hat (NYSE:RHT) guides on its FQ2 CC for FQ3 revenue of $449M-$452M and EPS of $0.40, below a consensus of $457.8M and $0.41. FY15 (ends Feb. '15) guidance is healthier: revenue of $1.77B-$1.85B and EPS of $1.53-$1.55 vs. a consensus of $1.78B and $1.54.
    • The Linux/middleware vendor's deferred revenue balance was up 18% Y/Y at the end of FQ2 to $1.25B; that growth rate is slightly below FQ1's 20%. On the other hand, subscription revenue growth picked up slightly to 19% from 18%.
    • GAAP sales/marketing spend +20% Y/Y to $174.5M; R&D +22% to $95.3M; G&A +17% to $44.7M. $80M was spent on buybacks, even with FQ1.
    • Shares went into earnings not far from their 52-week high of $62.69.
    • FQ2 results, PR
    | Comment!
  • 5:40 PM
    • Oracle (NYSE:ORCL) guides on its FQ1 CC for FQ2 Y/Y revenue growth of 0%-4%, and EPS of $0.66-$0.70. That's below a consensus for 4.8% growth and EPS of $0.74.
    • Software/cloud revenue is expected to grow 3%-6% Y/Y vs. 6% in FQ1, and hardware revenue is expected to be flat to down 10%. SaaS/PaaS revenue is expected to grow 39%-44%, and IaaS revenue 40%-44%.
    • Oracle largely blames the near-term weakness on a transition to cloud subscriptions from up-front licenses, though it also admits execution issues are hurting hardware and services sales. Micros is expected to provide a slight boost to FQ2 results.
    • Shares -2.3% AH.
    • Prior Oracle coverage.
    | Comment!
  • 4:54 PM
    • Pro-Dex (PDEX +0.9%) financial results:
    • Fiscal Q4: Revenues: $3.2M (+18.5%); Gross Profit: $0.9M (+64.8%); Operating Expenses: $1.0M (-26.3%); Operating Income: $27K (+104.0%); Net Income: $23K (+103.4%); EPS: $0.01 (+105.0%); Quick Assets: $3.2M (+89.8%).
    • Fiscal 2014: Revenues: $10.8M (-11.5%); Gross Profit: $3.0M (-20.2%); Operating Expenses: $3.8M (-32.6%); Operating Loss: ($0.8M) (+57.0%); Net Loss: ($0.5M) (+72.6%); Loss Per Share: ($0.14) (+74.1%); Cash Burn: ($0.3M) (+74.1%).
    • No financial guidance given.
    | Comment!
  • 4:29 PM
    • Oracle (NYSE:ORCL) has added $13B to its buyback plan; that's good for repurchasing 7% of shares at current levels. As it is, $2B was spent on buybacks in each of the last three quarters.
    • Software and cloud revenue (76% of total revenue) rose 6% Y/Y in FQ1 to $6.6B, hitting the low end of guidance for 6%-8% growth. However, new software license revenue (pressured by cloud competition) fell 2% to $1.37B.
    • License update/product support revenue (fairly stable) rose 7% to $4.7B. Cloud app (SaaS) and app platform (PaaS) revenue rose 32% to $337M, towards the high end of guidance for 25%-35% growth. Cloud infrastructure (IaaS) revenue grew 26% to $138M, topping guidance for 10%-20% growth.
    • Hardware revenue (hurt by UNIX server declines) remains weak, falling 8% to $1.17B; that's soundly below guidance for -1% to +3% growth. Hardware products -14%, support -1%. Services revenue -7% to $855M.
    • GAAP opex +2% to $5.6B; sales/marketing spend +5% to $1.71B, R&D +7% to $1.32B.
    • Shares -2.3% AH. CC at 5PM ET, guidance will be provided.
    • FQ1 results, CEO news, PR
    | Comment!
  • 4:20 PM
    • Mecox Lane Limited (NASDAQ:MCOX): Q2 EPS of $0.
    • Revenue of $21.8M (flat Y/Y).
    • Press Release
    | Comment!
  • 4:11 PM
    | Comment!
  • 4:08 PM
    • Tibco Software (NASDAQ:TIBX): FQ3 EPS of $0.14 misses by $0.04.
    • Non- GAAP Revenue of $259.6M (-4.2% Y/Y) misses by $12.88M.
    • Shares -5.00%.
    • Press Release
    | Comment!
  • 4:07 PM
    • Red Hat (NYSE:RHT): Q2 EPS of $0.41 beats by $0.03.
    • Revenue of $445.9M (+19.1% Y/Y) beats by $8.77M.
    • Shares +0.56% AH.
    • Press Release
    | Comment!
  • 4:03 PM
    • Oracle (NYSE:ORCL): FQ1 EPS of $0.62 misses by $0.02.
    • Revenue of $8.6B (+2.6% Y/Y) misses by $180M.
    • Shares -3.49% AH.
    • Press Release
    | 1 Comment
  • 7:52 AM
    • Marcus (NYSE:MCS): FQ1 EPS of $0.45 misses by $0.05.
    • Revenue of $131.76M (+2.1% Y/Y) beats by $2.49M.
    • Press Release
    | Comment!
  • 7:47 AM
    • ConAgra Foods (NYSE:CAG) beat estimates in FQ1, despite a slip in sales, as SG&A expenses were 8.6% lower than a year ago and its interest expense fell by 12.6% during the period.
    • Segment revenue growth: Consumer Foods -1% to $1.63B; Commercial Foods +1.8% to $1.09B; Private Brands -1.7% to $980M.
  • 7:32 AM
    • ConAgra Foods (NYSE:CAG): FQ1 EPS of $0.39 beats by $0.04.
    • Revenue of $3.7B (-0.5% Y/Y) in-line.
    • Press Release
    | Comment!
  • 7:23 AM
    • Penn West Petroleum (NYSE:PWE): Q2 EPS of $0.29 beats by $0.23.
    • Revenue of $650M (-12.8% Y/Y) beats by $19.4M.
  • 7:10 AM
    • Rite Aid (NYSE:RAD) reports same-store sales rose 4.1% in FQ2.
    • The front-end comp rose 1.1%, while pharmacy sales jumped 5.6%.
    • Prescription sales accounted for 68.8% of total drugstore sales for the period.
    • Adjusted EBITDA rate +20 bps to 5.6%.
    • Store count -9 to 4,572. Wellness centers count at 1,433.
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