Seeking Alpha
  • Today - Wednesday, November 26, 2014

  • 3:34 AM
    • Harriet Green is stepping down effective immediately, two years after overhauling the company, to be replaced by COO Peter Fankhauser.
    • TC also warns growth pace will slow in 2015.
    • Shares rose 826% under Green's leadership. It reported EBIT of £323M this morning, in line with consensus.
    • Source: corporate website
    | 1 Comment
  • Tuesday, November 25, 2014

  • 7:05 PM
    • Perfect World (NASDAQ:PWRD) expects Q4 revenue of RMB1.023B-RMB1.072B ($166.6M-$174.6M), in-line with a $171.9M consensus.
    • Thanks to the strong performance of mobile games such as CrossGate Mobile and Forsaken World, online game revenue rose 23% Y/Y to $149.8M. However, average concurrent users for PC games fell to 623K from 778K. Licensing revenue fell 1% to $6.3M.
    • Gross margin fell to 69% from 73.1% in Q2 and 77.8% a year ago. Opex rose 33% Y/Y (exceeding revenue growth of 17%) to $113.3M.
    • Q3 results, PR
    | Comment!
  • 6:54 PM
    • TIVO's FQ3 service & technology revenue totaled $88.1M, +8% Y/Y and slightly above an $87.9M consensus. However, S&T revenue is expected to be in a range of $87M-$90M in FQ4, below a $90.5M consensus.
    • 328K subscribers were added, up from 263K in FQ2. MSO subs grew by 337K to 4.2M, and TiVo-owned subs fell by 9K to 928K.
    • MSO service revenue +37% Y/Y to $10.6M; TiVo-owned service revenue -7% to $21.8M; all other services +86% to $4.3M, boosted by a 21% Q/Q increase in Digitalsmiths revenue.
    • Tech (licensing) revenue +7% to $51.4M; hardware revenue -15% to $30.4M.
    • GAAP opex -5% to $53.1M. $128M was spent on buybacks.
    • FQ3 results, PR
    | Comment!
  • 6:07 PM
    • Though it beat Q3 estimates, Ctrip (NASDAQ:CTRP) is guiding for 30% Y/Y Q4 revenue growth. Consensus is for 32.5% growth.
    • Q3 accommodation revenue +56% Y/Y to $155M; transportation ticketing +32% to $130M; packaged tours +12% to $58M; corporate travel +45% to $17M.
    • However, aggressive spending led op. margin to fall to 11% from 27% a year ago, and EPS to $0.36 from $0.51. R&D spend +83% Y/Y to $100M; sales/marketing +69% to $97M; G&A +40% to $39M.
    • Gross margin was 72%, flat Q/Q but down from 75% a year ago. Mobile app downloads rose 75% Q/Q to 350M.
    • Price pressure: While accommodation and ticketing revenue respectively rose 56% and 32% Y/Y, volume growth was 69% and 98%.
    • Q3 results, PR
    | Comment!
  • 5:42 PM
    • Top gainers, as of 5:15 p.m.: PHMD +13.2%. VEEV +8.9%. BLOX +7.6%. CPE +3.8%. ANGI +2.7%.
    • Top losers, as of 5:15 p.m.: VNET -14.5%. IQNT -4.6%. SNC -4.4%. UCI -3.3%. AVAV -3.2%.
    | Comment!
  • 5:41 PM
    • In a new 13D, Carl Icahn discloses he now owns 49.3M Hertz (NYSE:HTZ) shares, up from a prior 38.8M and good for a 10.8% stake.
    • Icahn landed three Hertz board seats in September, and has backed its hiring of John Tague as CEO.
    • HTZ +2.3% AH
  • 5:37 PM
    • AeroVironment (NASDAQ:AVAV) still expects FY15 (ends April '15) revenue of $250M-$270M (in-line with a $258.6M consensus) and gross margin of 34.5%-37.5%.
    • Funded backlog totaled $125.2M at the end of FQ2, up from $82M at the end of FQ1 but down from $133.8M a year earlier.
    • UAV division revenue fell 23% Y/Y to $43M; EV charging division revenue rose 9% to $9.6M.
    • Gross margin fell to 34% from 37%. GAAP SG&A spend rose 3% Y/Y to $13.5M; R&D spend rose 24% to $8.5M.
    • FQ2 results, PR
    | Comment!
  • 5:18 PM
    • Analog Devices (NASDAQ:ADI) expects FQ1 revenue of $745M-$775M and EPS of $0.58-$0.64 vs. a consensus of $766.4M and $0.62.
    • FQ4 gross margin was 66.4%, -10 bps Q/Q and +80 bps Y/Y, and slightly above guidance of 66.2%. GM is expected to fall to 65% in FQ1.
    • Opex fell to 33.1% of revenue from 33.8% a year ago. $187.4M was spent on buybacks.
    • Thanks to the Hittite acquisition, telecom chip revenue rose 56% Y/Y to $218.2M, and made up 27% of total revenue. Industrial chip sales, which received a smaller boost from Hittite, rose 19% and were 45% of revenue. Auto (17% of revenue) +2%; consumer (11% of revenue) -3%.
    • FQ4 results, PR
    | Comment!
  • 5:00 PM
    • Though it beat Q3 estimates, 21Vianet (NASDAQ:VNET) is guiding for Q4 revenue of RMB812M-RMB848M ($132.2M-$138.1M), +61% Y/Y at the midpoint but well below an RMB901.1M ($146.8M) consensus.
    • Q4 adjusted EBITDA is expected to be in a range of RMB152M-RMB168M, and full-year adjusted EBITDA guidance has been cut to RMB551M-RMB567M from RMB600M-RMB630M.
    • The guidance is attributed to the transition to VAT collection and revised expectations for its cloud and managed network services (MNS) businesses. SA author Trinity Research has asserted MNS runs ghost offices, and that its subsidiaries are operating illegally.
    • Q3 hosting/related service revenue +52% Y/Y to $83.6M. MNS revenue +50.4% to $43.2M. Opex rose 21.1% to $23.3M.
    • Q3 results, PR
    | Comment!
  • 4:46 PM
    • Veeva (NYSE:VEEV) expects FQ4 revenue of $84.5M-$85.5M and EPS of $0.08-$0.09, above a consensus of $81.6M and $0.07.
    • Subscription revenue (73% of total revenue) rose 58% Y/Y in FQ3 to $61.4M. Services/other revenue rose 43% to $22.4M. The deferred revenue balance stood at $84.7M at quarter's end, -1% Q/Q and +25% Y/Y.
    • Op. margin rose to 28.7% from 21.6% a year ago, even as GAAP opex grew 42% to $33.5M.
    • FQ3 results, PR
  • 4:33 PM
    • Along with its FQ1 results, Infoblox (NYSE:BLOX) has announced Cisco vet Jesper Andersen is its new CEO, effective Dec. 8. Andersen, who was once Cisco's in charge of Cisco's Prime network management/analysis tools, replaces Robert Thomas, who announced plans to step down in May.
    • FQ2 guidance is healthy: Revenue of $66.5M-$68.5M and EPS of $0.04-$0.05 vs. a consensus of $66.8M and $0.04.
    • FQ1 product/license revenue -12% Y/Y to $31.5M. Services (fueled by past deals) +28% to $35.2M. EMEA (revenue +14% Y/Y) was a strong point.
    • FQ1 results, PR
    | Comment!
  • 4:24 PM
    • Leucadia National (NYSE:LUK) has added another 5M shares to its holdings of Harbinger Group (NYSE:HRG), bringing its stake in the firm up to 22%, reports Bloomberg.
    • Previously: Phil Falcone to leave Harbinger Group
    • Harbinger closed higher by 3.6% in the regular session following news of Falcone's exit. HC2 Holdings (OTCQB:HCHC), where Falcone will apparently be able to concentrate more of his considerable deal-making skills, closed higher by 6.8%, and is now more than a double in the less-than-three months since SA Pro's Whopper Investments brought the barely-followed name to the attention of investors.
    | 1 Comment
  • 4:09 PM
    • Infoblox (NYSE:BLOX): FQ1 EPS of $0.05 beats by $0.02.
    • Revenue of $66.71M (+5.0% Y/Y) beats by $2.24M.
    • Shares +4.68%.
    • Press Release
    | Comment!
  • 4:02 PM
    • Sprint (S +3.8%) gradually moved higher today on relatively light volume (20.4M shares vs. a 3-month average of 27.3M). Shares were down 55% YTD going into today, as investors digested ongoing postpaid share losses and an abandoned T-Mobile bid.
    • Unlike AT&T, Verizon, T-Mobile, and Dish, Sprint hasn't taken part in the FCC's AWS-3 (high-band) spectrum auction, which has seen $36B worth of bids as of today (far more than expected) and produced sticker shock among industry analysts. Sprint plans to take part in the FCC's huge 600Mhz. incentive auction, which is set for 2016.
    | Comment!
  • 3:35 PM
    • Ebola-stoked traders give a lift to protective gear maker Alpha Pro Tech (APT +27.2%) today on double normal volume. Expectation is building that Q4 will be bullish for the company and compatriot Lakeland Industries (LAKE +34.1%). Many observers expect a spike in sales of hazmat suits in response to the Ebola crisis. Both companies have stated publicly that they have seen a surge in orders.
    • Previously: Lakeland reports December 10
    • Previously: Lakeland +27.4% AH after Ebola PR
  • 2:51 PM
    • "While investors’ first reaction was negative, we believe the initial FY16 'guidance' is very preliminary and conservative. The initial mgmt. view for the current FY15 called for rev growth of ~50%, and we are now modelling 68%," writes UBS, reiterating a Buy on Workday (NYSE:WDAY) post-earnings.
    • The firm also thinks Workday's FQ4 outlook is conservative, and is forecasting FQ4 revenue $2M above the high end of Workday's guidance range. "FY16 looks to be a strong year for Fin’l Mgmt pdts, helped by Insight analytic apps [becoming generally available]. Europe has been a bit slow due to (1) entrenched competitors and (2) sales org. changes early in the yr, but should improve next yr."
    • Canaccord (Buy) also isn't worried about the FY16 commentary ... for now. "If you dig into the numbers, the fact that WDAY intends to run its OpEx based on 40% revenue growth seems more like a conservative way to manage expectations than a statement of concern about the pace of business."
    • Summit Research (Hold) is more cautious, noting Y/Y deferred revenue growth slowed to 8.3% in FQ3 from FQ2's 15.7% and FQ1's 19.7%. "We would expect deferred growth to at least match or exceed revenue growth in a SaaS business model like Workday’s."
    • Wedbush (Outperform) thinks large deal activity was "more muted" in FQ3. But it's "optimistic about the [FQ4] contracting and large deal outlook, as our checks indicate that WDAY integrators are heavily loaded with projects and prospects, and Y/Y billings comparisons don't look overly difficult."
    • Several targets have been cut, but that might have as much to do with Workday's YTD performance as anything else.
    | Comment!
  • 2:30 PM
    • At least nine firms have hiked their Palo Alto Networks (NYSE:PANW) targets in response to the company's FQ1 beat, above-consensus FQ2 guidance, and strong billings print. Shares have rallied to fresh highs after trading lower AH yesterday.
    • "In a market that's growing at a 5%-10% clip, PANW's 50% revenue growth and 52% billings growth don’t imply any slowdown in the pace of market share gains," writes Deutsche ($125 PT). The firm observes Palo Alto's WildFire malware-detection service now has 4K paid customers, up from 3K a quarter ago and representing 19% of Palo Alto's total base.
    • Likewise, Credit Suisse ($135 PT) thinks the FQ1 report highlights "Palo Alto's ability to upsell into its installed base." It's also happy with growing success in landing major enterprise accounts.
    • Stifel ($120 PT) expects "“continued runway for both product revenue, driven by the growing adoption of the company's high-end data center appliances such as PA-7050, as well as recurring revenue, with growth in this arena coming from an improving attach rate and healthy maintenance renewal trends.”
    • Needham ($123 PT): "We believe PANW continues to benefit from news about corporate data breaches, and as a mindshare leader in “next gen firewall” PANW is likely being short-listed on most large network security deals." It thinks FQ2 guidance is conservative.
    • Peer Barracuda Networks (CUDA +3.1%) is also rallying.
    | 1 Comment
  • 1:25 PM
    • Home Depot (HD -1.8%) discloses in a SEC filing that it faces 44 civil lawsuits in the U.S. and Canada stemming from the data breach.
    • The company also says it's facing investigations by some state and federal agencies.
    • SEC Form 10-Q
  • 12:45 PM
    | Comment!
  • 12:16 PM
    • Beaten-down Ceragon (NASDAQ:CRNT) trades at a price/sales ratio of less than 0.2x, and at less than half its book value of $2.31/share, notes SA author Hawkinvest.
    • The author also points out analysts expect Ceragon to post breakeven EPS in 2015 and a $0.28/share profit in 2016, and that the company's new IP-20 RF backhaul line "appears to be the market leader in terms of its size and performance." Ericsson and Alcatel-Lucent are seen as possible acquirers.
    • Also potentially helping Ceragon: Rival DragonWave has soared after announcing over $10M in orders from a tier-1 North American mobile carrier.
    | Comment!
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