Today - Thursday, January 29, 2015
- Check Point (NASDAQ:CHKP) has guided on its Q4 CC (webcast) for 2015 revenue of $1.6B-$1.65B and EPS of $3.90-$4.02. The former is above a $1.59B consensus in spite of major forex pressures - Check Points depends heavily on European sales. The latter is below a $4.07 consensus due to Check Point's plans to spend aggressively to improve its positioning in a very competitive security appliance/software market.
- The company has also announced it's upping its total buyback authorization by $500M to $1.5B, and its quarterly authorization by $50M to $250M. Check Point spent $195M on buybacks in Q4, and $765M over the whole of 2014.
- With a strong IT security spending environment providing a boost, product/license revenue (drives future maintenance/update revenue) rose 6% Y/Y in Q4 to$162M, and software blade subscription revenue 20% to $72.3M. Update/maintenance revenue grew 7% to $186.2M.
- Operating expenses rose 11% to $191.4M (compares with 9% revenue growth), and the deferred revenue balance grew a healthy 17% to $784M.
- Q4 results, PR
- Hologic (HOLX +3.6%) FQ1 results: Revenues: $652.8M (+6.6%); COGS: $314.2M (+2.4%); R&D Expense: $52M (+6.8%); SG&A: $147.3M (-2.5%); Operating Income: $103.5M (+68.8%); Net Income: $29.2M (+650.9%); EPS: $0.10 (+600.0%); Quick Assets: $544M (-26.1%); CF Ops: $153.5M (+2.8%).
- FY2015 Guidance: Revenues: $2.57B - 2.60B from $2.54B - 2.57B; non-GAAP EPS: $1.54 - 1.57 from $1.50 - 1.54.
- FQ2 Guidance: Revenues: $640M - 650M; non-GAAP EPS: $0.38 - 0.39.
11:02 AM| Comment!
- Quest Diagnostics (DGX -0.2%) Q4 results: Revenues: $1,883M (+7.2%); COGS: $1,184M (+12.7%); SG&A: $427M (2.9%); Operating Income: $257M (-4.8%); Net Income: $190M (+32.9%); EPS: $1.26 (+29.9%).
- FY2014 results: Revenues: $7,435M (+4.0%); COGS: $1,728M (+1.4%); SG&A: $1728M (+1.4%); Operating Income: $983M (-33.4%); Net Income: $556M (+1.3%); EPS: $3.78 (-28.8%); Quick Assets: $192M (+2.7%); CF Ops: $938M (+43.9%).
- FY2015 Guidance: Revenue growth: ~2.0 - 3.0%; non-GAAP EPS: $4.70 - 4.85; CF Ops: ~$850; CAPEX: ~$300M.
- Extreme Networks (NASDAQ:EXTR) is guiding for FQ3 revenue (non-GAAP) of $130M-$140M and EPS of -$0.03 to $0.02 vs. a consensus of $137.7M and $0.03. With shares having gone into earnings just $0.10 away from a 52-week low of $2.68, those numbers are fine with investors.
- FQ2 gross margin fell to 54.6% from 56.4% a year earlier, and op. margin to 4.5% from 11%; FQ3 GM guidance is at 55%-56%. Free cash flow during the seasonally strong quarter was $38.6M.
- Product revenue (drives future services revenue) fell 6.6% to $112.5M, and service revenue grew 22% to $35.5M. Extreme continues growing its Wi-Fi hardware sales for NFL stadium deployments, adding the Green Bay Packers and Baltimore Ravens as clients.
- FQ2 results, PR
- Autoliv (ALV +4.9%) reports organic sales rose by more than 5% in Q4 off strong growth in Europe and North America.
- Sales by product: Airbags: $1.506B (-0.86%); Seatbelt: $706.7M (-3.47%); Active safety: $140.9M (+39.92%).
- Gross profit rate improved 60 bps to 19.9%.
- Operating margin grew 10 bps to 10.1%, exceeding company's guidance of 9.5%.
- FQ1 Guidance: Organic sales: ~+3%; Adjusted operating margin: ~8%.
- FY2015 Guidance: Sales: to grow by less than 1%; Organic sales: more than +6%; Adjusted operating margin: ~9.5%; Tax rate: ~31%; Operational cash flow: ~$0.8B; Capital expenditure: 5% to 6% of total sales.
- Alexion (ALXN +3.8%) Q4 results: Revenues: $599.5M (+35.7%); COGS: $49.4M (-4.3%); R&D Expense: $129.1M (+50.5%); SG&A: $183.8M (+36.4%); Operating Income: $203.7M (+47.5%); Net Income: $153.3M (+906.8%); EPS: $0.76 (+860.0%).
- FY2014 results: Revenues: $2,233.7M (+44.0%); COGS: $173.9M (-2.1%); R&D Expense: $513.8M (+62.0%); SG&A: $630.2M (+28.7%); Operating Income: $868.7M (+64.5%); Net Income: $656.9M (+159.7%); EPS: $3.26 (+156.7%); Quick Assets: $1961.6M (29.5%).
- FY2015 Guidance: Revenue: $2.55B - $2.6B; Non-GAAP EPS: $5.60 - $5.80.
- Royal Dutch Shell (RDS.A -3.2%) opens lower as Q4 earnings rose from a poor year-ago quarter but came in below analyst estimates, partly due to its money-losing North American shale business.
- Analysts at Liberum Capital in London wrote that the results were "disappointing... 20% below consensus.”
- Shell plans to cut $15B in costs over the next three years but says it does not want to "overreact" to the 60% slide in oil prices since last summer; the company also warned that its stock buyback program could be curtailed.
- Shell said it would pay a Q4 dividend of $0.47/share, up 4% Y/Y but flat Q/Q, and pledged to maintain the same dividend in Q1.
- Despite the spending curbs, Shell remains intent on drilling for oil in Alaska, where it already has spent $5B; CEO Ben van Beurden said the company hopes to drill this summer in the Chukchi Sea if it receives the necessary permits and overcomes legal challenges.
- Shell's average price received for oil during Q4 was ~$72/bbl, down 25% Y/Y, with natural gas prices down 12%, contributing to a 30% fall in E&P earnings to $1.73B from $2.48B, as lower oil prices offset benefits such as increased high-margin liquids production; with oil prices even lower now, the slump is likely to worsen in 2015.
- After rising 13% Y/Y in Q3, Overstock's (OSTK -19.4%) sales/marketing spend rose 19% in Q4 to $37.1M, a reason EPS missed estimates in spite of a revenue beat.
- Gross margin was 18.2%, +20 bps Y/Y but -80 bps Q/Q (seasonality played a role). G&A/tech spend rose 19% (to $46.6M) vs. 18% in Q3.
- Free cash flow fell 40% Y/Y in 2014 to $39.5M, thanks largely to a 128% increase in fixed asset expenditures to $41.3M. Overstock, which recently unveiled plans for a streaming/VOD service, says it continues to "seek opportunities for growth by expanding our international sales and distribution footprint, through our crypto-initiatives, and through other means."
- Q4 results, PR
- Viacom (VIA,VIAB) beat bottom-line expectations in fiscal Q1 though missing slightly on revenues. Segment breakdowns: Media Networks revenue of $2.65B up 4.4% Y/Y (higher affiliate fees and ad revenues); Filmed Entertainment revenue of $720M up 5.7% Y/Y.
- Adjusted operating income of $1.1B in Media Networks was off 1% due to higher programming costs; Filmed Entertainment had an adjusted operating loss of $60M (19% better than last year) as revenues helped to offset higher film/distribution expense.
- Previous release Teenage Mutant Ninja Turtles continued strong contributions to current-quarter film releases. Theatrical revenues up 6% and home entertainment revenues (two releases compared to none the prior year) up 16%.
- After repurchasing about $750M in shares in fiscal Q1, Viacom had $5.62B remaining in a $20B buyback program.
- Shares: (VIA -1.1%), (VIAB -1%)
- Previously: Viacom beats by $0.01, misses on revenue (Jan. 29 2015)
- Press release
- Adjusted Q4 net income of $272.6M or $0.63 per share vs. $258.1M and $0.58 one year ago. Ending AUM of $792.4B up 1.8% Y/Y.
- Performance fees of $19M up 84.5% from the previous quarter. Service and distribution fees of $217.7M down 2%. Investment management fees of $1.033B down 3.6%.
- Previously: Invesco beats by $0.01, misses on revenue (Jan. 29)
- IVZ +3.4%
- With forex and VMware's soft outlook taking a toll, EMC (EMC - unchanged) is guiding for 2015 revenue of $26.1B and EPS of $1.98, below a consensus of $26.21B and $2.13.
- The company plans to buyback $3B worth of shares this year; VMware plans to repurchase at least $2B of its own shares. EMC spent $1.6B on buybacks in Q4, and $3B over the whole of 2014.
- The storage giant says it plans to cut jobs, but hasn't yet given a figure. Activist Elliott Management, which EMC just reached a truce with, has been pushing EMC to make changes.
- EMC's core Information Storage ops saw revenue rise 3% Y/Y to $4.84B, with product revenue (drives future services revenue) rising 2% to $3.3B. High-end storage sales remained weak, falling 13% to $1.19B. But emerging storage (flash, scale-out NAS, object storage) rose 52% to $800M. Unified and backup/recovery storage (includes mid-range NAS/SAN) grew 4% to $1.88B, and all other storage fell 4% to $960M.
- RSA revenue +5% to $290M; Information Intelligence (content management software) -1% to $170M; Pivotal (still awaiting an IPO) +18% to $65M.
- Gross margin rose to 65.4% from 64.6% a year ago, and op. margin to 28.9% from 27.4%. EMC ended 2014 with $8.3B in cash/short-term investments, $6.3B in long-term investments, and $5.5B in debt.
- Q4 results, PR, earnings slides (.pdf)
10:05 AM| Comment!
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs
Next headline on your portfolio: