Today - Thursday, December 18, 2014
- With its 2013 20-F filed in October, NQ Mobile has finally released its Q1 and Q2 results, to go with its Q3 numbers. Q1 revenue totaled $80M, and EPS -$0.03. Q2 revenue totaled $81.6M (below May guidance of $83M-$84M), and EPS -$0.22. Revenue fell slightly Q/Q in Q3 to $81.2M.
- Altogether, NQ's revenue rose 88% Y/Y over the first nine months of 2014 to $242.6M. Q4 guidance is for revenue of $82M-$83M, +2% Q/Q and +22% Y/Y at the midpoint. No analyst estimates exist.
- Over the 9-month period, enterprise mobility (NationSky) revenue rose 255% Y/Y to $104.5M. Ad services revenue rose 164% to $52.5M, and mobile value-added service revenue rose 7% to $81.7M.
- Gross margin tumbled to 32.6% from 64.1%, with gross profit falling slightly in absolute dollars ($79.1M vs. $82.6M). NQ attributes the drop to a mix shift towards low-margin enterprise device sales, and payouts to advertising and gaming partners. Q3 gross margin was 27.8%.
- GAAP opex for the 9-month period rose 70% to $140.2M, with $6.8M in "extraordinary costs" recorded. NQ ended Q3 with 159M average monthly active user accounts for its products.
- NQ also discloses two directors - James Ding and Xiuming Tao - have left the board. Roland Wu, formerly an exec at several Chinese companies, is joining the board.
- NQ now +5.8% AH. Q3 results, FL Mobile offer, PR.
- Red Hat (NYSE:RHT) guides on its FQ3 CC (webcast) for FQ4 revenue of $456M-$459M and EPS of $0.40-$0.41. Consensus is at $459.4M and $0.41. As is the case with many enterprise tech peers, forex is acting as a decent headwind.
- Red Hat also discloses Charles E. Peters, its CFO for more than ten years, plans to retire in the next 12 months, assuming "a suitable successor" has been found. CTO Brian Stevens resigned earlier this year.
- FQ3 results, details
- Nike (NYSE:NKE) reports a FQ2 profit increase of 25% Y/Y on broad sales strength.
- Revenue by brand: Nike +15% to $7.0B, Converse +24% to $434M.
- Global futures orders were up 7% to end a streak of double-digit growth. The mark improves to 11% if currency swings are backed out.
- Product growth breakdown: Footwear +18% to $4.27B, Apparel +11% to $2.29B, Equipment +3% to $380M.
- Gross margin +120 bps to 35.1%.
- Inventory +11%.
- SG&A expenses +17%.
- Conference call at 5:00 pm ET (webcast)
- NKE -1.6% after-hours.
- Red Hat's (NYSE:RHT) deferred revenue balance rose 16% Y/Y in FQ3 to $1.3B; growth was 18% in FQ2. The deferred revenue growth helped op. cash flow rise 40% to $133M.
- Subscription revenue rose 15% Y/Y to $394.7M, a slowdown from FQ2's 19%. Training/services revenue rose 14% to $61.2M. New records were set for $5M+ and $10M+ deals.
- Gross margin fell 20 bps to 85.9%. Opex rose 16% to $282.9M, slightly exceeding revenue growth of 15%. As previously announced, $375M was spent on buybacks through an ASR deal with Goldman.
- Shares have jumped to new highs in AH trading, after rising 3.4% in regular trading in the wake of Oracle's results
- CC at 5PM ET, guidance should be provided. FQ3 results, PR
- In addition to beating FQ1 estimates, Accenture (ACN +4.3%) has hiked its guidance for FY15 (ends Aug. '15) local currency revenue growth to 5%-8% from 4%-7%. On the other hand, forex is now expected to have 500 bps impact on revenue, up from a prior 200 bps.
- As a result, FY15 EPS guidance has been lowered to $4.66-$4.80 from $4.74-$4.88 - consensus is at $4.81 - and FQ2 revenue guidance of $7.25B-$7.5B is mostly below a $7.46B consensus. The market appears to have discounted forex pressures in advance.
- FQ1 new bookings totaled $7.7B, down from $8.7B a year ago. Consulting bookings fell to $3.9B from $4.3B, and outsourcing bookings to $3.8B from $4.4B.
- Gross margin fell 110 bps Y/Y to 32.2%, but cost controls helped SG&A spend fall to 17.1% of revenue from 18.7%. As a result, op. margin rose 20 bps to 15%. $670M was spent on buybacks.
- North America revenue +11% to $3.44B; Europe +5% to $2.91B; "Growth Markets" +3% to $1.55B. Forex respectively had 400 bps and 600 bps impacts on Europe and Growth Markets revenue growth.
- Accenture has made new highs. Outsourcing rivals Infosys (INFY +3%), Wipro (WIT +4.9%), and Cognizant (CTSH +4.3%) are also outperforming on a good day for equities.
- FQ1 results, PR
- Worthington Industries (WOR -11.2%) plunges to 52-week lows after reporting higher FQ2 earnings and sales but misses expectations due to higher manufacturing costs and a product miss.
- Gross margins declined $3M Y/Y as higher manufacturing expenses across all business segments combined with the unfavorable impact of inventory holding losses in steel processing more than offset the impact of higher volume.
- Oil and gas equipment and engineered cab operations suffered elevated manufacturing costs, and the oil and gas equipment business facility had a product miss on the commercial side, WOR says, adding that they are "isolated issues."
- In its Q2 earnings conference call, WOR said it is not seeing any demand decrease in oil and gas equipment due to declining oil prices.
- Citing "a reduction in mobile design wins at one of its largest customers," Silicon Image (SIMG -25.4%) expects 2015 revenue to be down 10% Y/Y; consensus is for 6.4% growth.
- The customer in question might be Samsung, with whom SIMG has scored a number of MHL video transmitter IC design wins for high-volume phones.
- Consumer electronics chip sales are expected to remain strong next year, thanks to further MHL penetration within the TV market and growing sales of 4K sets featuring the company's HDMI 2.0/MHL 3.0 ICs.
- Neogen (NEOG) FQ2 results: Revenues: $68.5M (+14.9%), Food Safety: $33M (+16.2%), Animal Safety: $35.5M (+13.8%); COGS: $34.2M (+13.6%); Operating Expenses: $21.3M (+7.6%); Operating Income: $12.9M (+33.0%); Net Income: $7.8M (+25.8%); EPS: $0.21 (+23.5%); Quick Assets: $94.3M (+23.3%).
- No guidance given.
- BioReference Laboratories (BRLI +0.2%) FQ4 results: Revenues: $227.6M (+18.4%); COGS: $120.7M (+12.9%); G&A: $76.1M (+17.4%); Operating Income: $30.8M (+51.0%); Net Income: $18.3M (+64.9%); EPS: $0.66 (+65.0%); CF Ops: $9.1M.
- FY2014 results: Revenues: $832.3M (+16.3%); COGS: $462.3M (+17.7%); G&A: $286.6M (+19.1%); Operating Income: $83.4M (+1.7%); Net Income: $46.8M (+2.2%); EPS: $1.68 (+1.8%); Quick Assets: $17.5M (-2.8%); CF Ops: $16.6M.
- No guidance given.
8:33 AM| Comment!