Kaiser Aluminum (NASDAQ:KALU) resumes trading after a halt, -7% AH after Q3 earnings fell 36% Y/Y and missed analyst estimates by a wide mark, citing unanticipated problems at its Spokane, Wash., facility that hurt shipments in the quarter.
Because of the disappointing Q3 results, KALU now anticipates 2014 adjuste EBITDA will fall slightly below 2012 and 2013 levels; EPS and revenues were $3.82 and 1.36B respectively in 2012, and were $3.65 and $1.3B in 2013.
Analyst consensus expectations for 2014 EPS and revenues are $3.78 and $1.36B, respectively.
iPhone suppliers are trading higher after Apple beat FQ4 estimates and issued FQ1 guidance that was mostly above consensus. FQ4 iPhone sales of 39.3M were better than expected, and iPad sales of 12.3M worse than expected.
Trinity Industries (NYSE:TRN) -2.4% AH after plummeting 12.3% during regular trading after the company confirms a federal jury in Texas awarded $175M to a whistleblower in a trial over the safety of thousands of highway guardrail end caps on U.S. roads (earlier).
The whistleblower accused TRN of redesigning its ET-Plus guardrail end piece in 2005 in a way that made them unsafe; at least a dozen accidents - some fatal - have been reported for vehicles that run off the road and collide with the guardrail end caps that, instead of cushioning the impact, malfunction and spear the vehicle.
TRN says it believes "the decision cannot and will not withstand legal scrutiny."
Apple (NASDAQ:AAPL) had an FQ4 gross margin of 38%, +100 bps Y/Y and at the high end of a 37%-38% guidance range. FQ1 GM guidance is at 37.5%-38.5%.
Product line performance: iPhone revenue (56% of total revenue) +21% Y/Y to $23.7B, after growing 9% in FQ3; units +16%. iPad revenue -14% to $5.3B, after falling 8% in FQ3; units -13%. Mac revenue +18% to $6.6B, after rising 13% in FQ3; units +21%.
iTunes/software/services revenue +8% to $4.6B. Accessories +13% to $1.5B. iPods -28% to $410M.
Regional performance: Excluding retail, Americas revenue +17% to $16.2B (stronger than in recent quarters); Europe +19% to $9.5B (likewise); Greater China +1% to $5.8B; Japan +5% to $3.5B. Rest of Asia-Pac -3% to $1.9B. Retail +15% to $5.1B.
Helping margins: iPhone ASP rose to $603 from $561 in FQ3 and $596 in FQ2. iPad ASP fell to $432 from $443 in FQ3 and $465 in FQ2. Mac ASP fell to $1,200 from $1,255 in FQ3 and $1,334 in FQ2.
GAAP R&D spend +44% Y/Y to $1.69B. SG&A spend +18% to $3.16B.
$17B was spent on buybacks in FQ4, and $45B over the whole of FY14. Apple ended the quarter with over $155B in cash/investments, and over $35B in long-term debt and commercial paper.
Though Starboard Value has called on Yahoo to merge with AOL (AOL +3.1%), there are "no explicit talks about a deal with Yahoo," says CEO Tim Armstrong. As it is, Re/code has reported more than once Marissa Mayer isn't a fan of an AOL/Yahoo deal.
Armstrong also declares the online ad market is going to see a major shakeup, with future solutions for marketers either completely programmatic (automated) or custom-made. "Everything in the middle is going to die."
AOL has been betting big on programmatic growth; the company claims over 1/3 of its ad sales now come from programmatic offerings. Last month, AOL expanded its partnership with ad giant Publicis to cover programmatic video and linear TV ads.
Lemelson Capital says it has taken a 2% stake in Geospace (NASDAQ:GEOS). Tthe firm notes shares trade only a little above tangible book value, and argues they have a "fair value" of $78 (nearly 3x Friday's close).
In today's closing arguments, TRN was accused of deliberately withholding information from the government about cost-saving changes to its highway guardrail system that transformed one of its products into a potentially lethal highway hazard, wrongly passing off the product as eligible for federal funding.
In July, TRN said it did not believe a loss in the case was probable or that a range of reasonably possible losses exists; no accrual or range of loss had been included.