Today - Thursday, March 26, 2015
- Voxeljet's (NYSE:VJET) Q4 revenue of €6.94M ($7.56M) beat a €6.09M consensus. EPS of -€0.17 per ordinary share is equal to -€0.034 (-$0.037) per ADS, beating a -€0.05 consensus.
- Also: The German 3D printer maker is affirming 2015 revenue guidance of €23M-€24M ($25.1M-$26.2M), above a €22.96M consensus.
- Q4 systems revenue +72.8% Y/Y to €4.25M; services revenue +117.9% to €2.69M. Backlog +82% to €4.18M.
- Gross margin rose to 43.9% from 37.2% in Q3 and 27.5% in Q4 2013. Operating expenses rose just 2% Y/Y to €3.81M.
- Shares have jumped to $9.16 AH.
- Q4 results, PR
- In its 2014 10-K (just filed), ExOne (NASDAQ:XONE) states it has "concluded that there are material weaknesses in the design and operating effectiveness of our internal control over financial reporting as defined in SEC Regulation S-X."
- The identified weaknesses: 1) "We did not maintain adequate control with respect to the application of [GAAP accounting]." 2) "Each of our primary locations (United States, Germany, Italy and Japan) utilizes separate and distinct [IT] platforms to record, process and summarize transactions. As a result, our process to consolidate and report financial information is substantially a manual process and inherently subject to error." 3) "[B]ecause of internal control weaknesses identified with respect to our financial reporting process and [IT] systems, management was unable to complete an adequate review of either subsidiary or consolidated financial results at a sufficient level of precision to prevent or detect misstatements."
- To address the issues, ExOne says it's changing its accounting/reporting process, overhauling its IT systems, and hiring more financial personnel.
- GameStop (NYSE:GME) reports sales rose 2.8% in Q4 on a constant currency basis.
- Digital receipts increased 41.4% Y/Y to $369M.
- Comparable-store sales were down 1.8% during the quarter off of a tough game launch comparable.
- Sales mix by category: New video game hardware 21.8%, new video game software 33.2%, pre-owned products 25.7%, video game accessories 7.1%, digital 2.3%, mobile /consumer electronics 5.6%.
- Gross profit rate +90 bps to 28.1%.
- Net income rate +100 bps to 7.0%.
- Q1 guidance: Sales -2.0% to +1%, comps +2.5% to +5.5%, EPS $0.53-$0.60 vs. $0.66 consensus.
- FY15 guidance:Sales -1% to +4%, comps +1% to +6%, EPS $3.60-$3.80 vs. $4.04 consensus.
- GME -2.32% after hours.
- Investors showed Intercept Pharmaceutics (NASDAQ:ICPT) some love today. Shares jumped 8% on triple normal volume in apparent response to potential competitor Genfit's (OTCPK:GNFTF) presentation of results from a Phase 2 trial of its candidate for the treatment of nonalcoholic steatohepatitis (NASH), GFT505, in a way that would make a politician proud.
- The randomized study, called GOLDEN-505, failed. The culprit was a group of early NASH patients (NAFLD Activity Score (NAS) = 3). This group, with its shockingly high placebo response rate of >57%, ruined the trial. Not to worry, though, because the problem was easily fixed by excluding the group. Using the magic of statistics on the revised population of NASH patients with NAS scores >= 4, the trial met its primary endpoint both in the global (n=274) (p=0.016) and evaluable (n=237) (p=0.027) populations, although what the specific endpoint actually was is not specified. Also, the number of responders was almost double placebo (22.4% vs. 12.7%; p=0.046).
- Genfit plans to advance GFT505 to Phase 3 development.
4:06 PM| Comment!
- Con Edison (ED -2.8%) sinks into the close in a move some market watchers attribute to this afternoon's NYC building collapse, as an explosion in Manhattan's East Village reportedly injured ~30 people.
- Officials say the explosion, which occurred near Second Avenue and St. Marks Place, left a storefront blasted out.
- The unemployment rate rose to 5.9% in February vs. the 5.7% expected by economists. This as the central bank upped its inflation forecast for 2015 to 7.9% from 6.1% previously. The bank sees inflation falling to 4.9% in 2016 and 4.7% in 2017, but both are still above the 4.5% target.
- The Bovespa is lower by 2.4%.
- EWZ -1.9%
- ETFs: EWZ, BRF, BRXX, EWZS, BRZU, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
- Today's notable tech gainers include ultracapacitor maker Maxwell (MXWL +4.6%), SMB Web services firm Web.com (WWWW +3.7%), health site owner WebMD (WBMD +3.7%), and RF chipmaker Anadigics (ANAD +11.3%).
- Notable decliners include NAND flash controller/4G transceiver maker Silicon Motion (SIMO -4%), hybrid storage array vendor Nimble Storage (NMBL -3.8%), local ad services provider Dex Media (DXM -8.5%). The Nasdaq is down 0.2%.
- Maxwell's gains come a day after the company announced an ultracapacitor-based engine start module will be offered for two new Kenworth trucks. Silicon Motion has joined a slew of other chip stocks in selling off for the second day in a row. Nimble is trading near its January lows, while Dex has made fresh 52-week lows.
- Previously covered: Cybersecurity stocks, SolarEdge, Infinera, Accenture, SuperCom, Neustar, Textura, ASML, GoPro, SanDisk, Red Hat
- Down as low as 1.89% earlier in the session, the 10-year U.S. Treasury yield has popped all the way up to 2.01%.
- The last 24 hours may be a red flag to Treasury bulls; The 10-year yield was at 1.86% early yesterday and rose throughout the session even as stocks fell sharply - the first time in memory both stocks and Treasurys sold off on the same session. The selloff is a minor one today, but yields remain on the rise.
- TLT -1.7%, TBT +3.4%
- ETFs: TBT, TLT, TMV, IEF, TBF, EDV, TMF, PST, TTT, ZROZ, SBND, TLH, IEI, TYO, VGLT, DLBS, DTYS, UST, UBT, TLO, VGIT, TBX, GSY, SCHR, TENZ, DTYL, TYD, LBND, ITE, DLBL, TYBS, DFVL, TBZ, FIVZ, DFVS, TYNS, SYTL
- After pricing its 7M-share IPO at $18, SolarEdge (Pending:SEDG) opened at $20.00 and is currently at $21.69, up 20.5%.
- The solar inverter/power optimizer maker is valued at $826M, or (given FY14 sales and recent growth) potentially ~2x forward sales.
- Rival/microinverter leader Enphase (ENPH +3.3%) appears to have gotten a lift from SolarEdge's debut; its market cap is currently at $518M.
- Prospectus, details/financials, IPO analysis,
- FutureFuel (FF -5.4%) falls sharply after an SEC filing reveals that Procter & Gamble has told the biofuels company it plans to end its purchase agreement on Dec. 31.
- PG said decision to terminate resulted from its need for flexibility to address declining market trends in the dry laundry additives marketplace.
- FF received $43.9M in revenue from PG during 2014, representing 12.8% of its total company revenue.
- Stephen Swad has resigned as Rosetta Stone's (NYSE:RST) CEO after three years on the job, as well as from the company's board. Director/ex-Goldman managing partner A. John Hass will serve as interim CEO while the board looks for a replacement.
- The announcement comes two weeks after the language software vendor announced (along with its Q4 results) it's cutting jobs and lowering its consumer product investments. Shares tumbled on account of Rosetta's light bookings and 2015 guidance.
- Though the Nasdaq is nearly flat today, many security tech plays are rallying. CyberArk (CYBR +4.6%) is a standout, adding to Monday's post-lockup gains. So are Qualys (QLYS +4.7%), Vasco (VDSI +3.8%), and Proofpoint (PFPT +4.3%). Palo Alto Networks (PANW +1.8%), Fortinet (FTNT +1.9%), and Imperva (IMPV +2.2%) are up more moderately.
- Possibly helping the group: The House Intelligence Committee has unanimously passed a cybersecurity bill that will make it easier for companies to share information about attacks without risking lawsuits. A full House vote could happen by late April, and the Senate is working on a similar bill. The White House recently floated its own cybersecurity initiatives.
- Yesterday, FBR's Daniel Ives (bullish on the space for some time) forecast spending on "next-generation" security solutions will rise 25% this year, up from a prior 20% estimate. He thinks less than 10% of companies have fully invested in next-gen offerings, and sees evidence of a "surge in deal flow with a major upgrade cycle underway in 2015, as enterprises and governments 'fast track' cybersecurity initiatives across the board."
- Ives expects FireEye (FEYE +0.7%), Palo Alto, Fortinet, and Proofpoint to benefit from the trend, which he isn't sqeamish about hyping. "This once-in-a-multi-decade upgrade opportunity is poised to be a rising tide for all security boats ... with legacy security solutions no longer 'good enough' and next-generation products well positioned to replace traditional firewall and endpoint vendors over the coming years."
- ETF: HACK
- Previously: Three cybersecurity companies reportedly planning $1B+ IPOs
- Hotel stocks are out ahead of market averages as sentiment stays positive on the sector
- Traders some to be piggybacking off each other without any major news out.
- Companies active in timeshares are well-represented on the list of gainers.
- Starwood Hotels & Resorts Worldwide (HOT +4.9%) reached an all-time high of $86.76 on huge volume.
- Also putting in gains are Hyatt Hotels (H +2.9%), Hilton Worldwide (HLT +1.6%), Morgans Hotel Group (MHGC +1%), Interval Leisure Group (IILG +2%), and Wyndham Worldwide (WYN +1.4%).
- MKM's Michael Genovese is pleased with Infinera's (NASDAQ:INFN) recent unveiling of two new photonic integrated circuits (PICs) that will go into optical transport systems aimed at 100G metro networks. "PICs are the source of the company's competitive advantage in long haul, and we expect the new more flexible and granular PICs to form the basis of a compelling Metro 100G aggregation/Telecom product later this year."
- Infinera asserts its new PICs offer more flexibility by allowing capacity to be "divided at a granular optical level with each slice capable of being routed in a different direction as it exits the line card or the system housing it." One PIC (the ePIC-500) delivers 500Gbps of capacity at network hub locations, and the other (the oPIC-100) 100Gbps at network spoke locations.
- Infinera claims tests showed "an estimated average reduction of 28 percent in modules, 31 percent in power and 45 percent in bandwidth inefficiencies as compared to conventional, commercial off the shelf technologies that deliver single-wavelength or super-channel solutions for 100G, 200G or 400G."
- Genovese sees Infinera's addressable market expanding to ~$20B in 2018 from ~$5B in 2014 as it "competes in end-to-end Optical Transport including Metro and [data center infrastructure]," and as its systems handle traffic forwarding features traditionally handled by routers - the latter could pose challenges for Cisco and Juniper.
- Infinera is once more within a dollar of a 52-week high of $19.48.
- In addition to beating FQ2 estimates, Accenture (NYSE:ACN) has hiked its FY15 (ends Aug. '15) local currency revenue growth guidance to 8%-10% from 5%-8%. However, forex is now expected to have an 800 bps impact on FY15 revenue growth, up from a prior 500 bps.
- Due to the forex hit (widely expected), FY15 EPS guidance has been cut to $4.61-$4.71 from $4.66-$4.80 (consensus is at $4.75). Likewise, FQ1 revenue guidance of $7.35B-$7.6B (assumes an 1100 bps forex hit) is below a $7.63B consensus.
- New consulting bookings fell by $400M Y/Y in FQ2 to $4.2B, and new outsourcing bookings by $400M to $5.1B. Forex had a 600 bps impact on bookings growth.
- North American revenue was a strong point, rising 13% Y/Y to $3.41B. Europe fell 2% to $2.66B (700 bps forex hit), and "growth markets" rose 3% to $1.42B (900 bps forex hit). Telecom/media/tech revenue +8%; financial services +2%; health/public service +12%; products +6%; resources -1%.
- Hurting EPS: Gross margin fell to 29.9% from 31.3% a year ago. Boosting EPS: SG&A spend fell to 16.3% of revenue from 17.9%, and $601M was spent to buy back 6.8M shares. Free cash flow was $220M, below net income of $743M.
- Shares have surged to new highs.
- FQ2 results, PR
- Francesca's (FRAN +4%) trades higher with some retail analysts warming up to the retailer after it turned its first earnings beat in eight quarters.
- Goldman Sachs upgrades the stock to a Neutral rating from Sell.
- Nomura lifts its price target on the Buy-rated stock to $19.
- Previously: Francesca's beats by $0.01, beats on revenue (Mar. 25 2015)
- Previously: More on Francesca's Q4 (Mar. 25 2015)
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