Seeking Alpha
  • Today - Thursday, April 24, 2014

  • 7:04 PM
    • Freescale (FSL) has hired Dan Durn, formerly the CFO of #2 chip foundry Globalfoundries, to be its new CFO, starting in June. Durn will replace Alan Campbell, who announced plans to retire in January.
    • The chipmaker has guided in its Q1 report for Q2 revenue of $1.14B-$1.2B, above a $1.13B consensus. Gross margin is expected to rise 50-75 bps from a Q1 level of 44.8%.
    • FSL -1.7% AH in spite of the guidance and a Q1 beat. Shares went into earnings trading within a hair's breadth of their 52-week high of $26.
    • Q1 results, PR
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  • 6:35 PM
    • Marketo (MKTO) expects Q2 revenue of $33M-$34M and EPS of -$0.30 to -$0.32 vs. a consensus of $32.3M and -$0.29. Full-year guidance is for revenue of $138M-$141M and EPS of -$1.00 to -$1.06, above a consensus of $134.6M and -$1.12. The company's deferred revenue balance rose 10% Q/Q and 86% Y/Y in Q1 to $45.6M. Shares +9.5% AH. (Q1 results, PR)
    • HomeAway (AWAY) expects Q2 revenue of $109M-$111M (above a $108.2M consensus) and adjusted EBITDA of $28M-$29M. 2014 guidance is for revenue of $435M-$442.5M (above a $433.7M consensus) and adjusted EBITDA of $117M-$122.5M. Shares -1.9% AH. (Q1 results, PR)
    • KLA-Tencor (KLAC) guides on its CC for FQ4 revenue of $700M-$760M and EPS of $0.75-$0.95, below a consensus of $832.5M and $1.16. The company blames delays among clients in ramping production of chips featuring 3D transistors, and (like Lam Research) notes 3D NAND production is being pushed out. Shares -5.1% AH. (FQ3 results, PR)
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  • 6:05 PM
    • Clean Harbors (CLH) +8.6% AH on news that activist hedge fund Relational Investors acquired a ~9% stake in the company.
    • Relational says CLH’s dominant position in hazardous waste collection, transportation and disposal is severely underappreciated, and urges the company to focus on its core business, buy back stock and pursue asset sales or spinoffs.
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  • 5:41 PM
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  • 5:33 PM
    • Cliffs Natural Resources (CLF) -4% AH after Q1 earnings miss estimates and revenues plunge 18% Y/Y, primarily due to falling iron ore and met coal prices as well as a 2% decrease in global iron ore sales volumes, much of which was weather related.
    • Delivered record production of 1.5M tons at Bloom Lake, in spite of the weather; also improved liquidity by 32% over the past year to $1.9B.
    • Reiterated its FY 2014 North American coal production volumes of 7M-8M tons, but lowers revenue/ton guidance to $80-$85 from its previous outlook of $85-$90.
    • Says iron ore demand from North American customers is very strong, which CLF expects to provide a healthy demand in 2014.
    | 2 Comments
  • 5:29 PM
    • Altera (ALTR) expects FQ2 revenue to grow 2%-6% from an FQ1 level of $461.1M. That implies a range of $470M-$488.8M, above a $461.3M consensus.
    • The FPGA maker suggests stronger-than-expected sales related to Chinese 4G deployments contributed to its FQ1 beat. Telecom & wireless revenue (45% of sales) grew 14% Q/Q and 23% Y/Y, and Asia-Pac revenue 6% Q/Q and 24% Y/Y.
    • Those numbers offset weakness in networking, computer, & storage (-20% Q/Q and -7% Y/Y), as well as the Americas (-17% Q/Q and -13% Y/Y). Other areas of strength included industrial, military, and automotive (+13% Y/Y, 22% of revenue), EMEA (+11%), and Japan (+18%).
    • Shares +4% AH. Rival Xilinx (XLNX), which often moves in tandem with Altera, is up just 0.5% after falling 9.1% in regular trading due to its light FQ1 guidance. Altera fell only 0.6% in regular trading after initially showing steeper losses.
    • Altera is expected to see 13.7% Y/Y June quarter revenue growth at its guidance midpoint, and Xilinx 10.5% growth.
    • FQ1 results, PR
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  • 5:10 PM
    • Cirrus Logic (CRUS) expects FQ1 revenue of $135M-$155M, largely above a $135.5M consensus. Gross margin is expected to be in a range of 47%-49% after coming in at 49% (at the high end of a 47%-49% range) in FQ4. Shares +3.3% AH after rising 7.3% in regular trading thanks to Apple. (FQ4 results, PR)
    • Synaptics (SYNA) expects FQ4 revenue of $275M-$295M, well above a $231.3M consensus. Mobile revenue rose 44% Y/Y in FQ3, and the company's fingerprint ID ops (i.e. Validity Sensors) have become accretive ahead of plan.Shares +10.5% AH. (FQ2 results, PR)
    • CalAmp (CAMP) expects FQ1 revenue of $56M-$60M and EPS of $0.17-$0.21, below a consensus of $64.3M and $0.23. The company notes revenue from a key solar OEM client is expected to fall by $3M Q/Q. Shares -9.9% AH. (FQ4 results, PR)
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  • 4:50 PM
    • Baidu (BIDU) expects Q2 revenue of RMB11.82B-RMB-12.11B ($1.901B-$1.948B), above a consensus of RMB11.55B.
    • Revenue growth accelerated to 59.1% in Q1 from 50.4% in Q4. Online ad customers fell 1.1% Q/Q to 446K after falling 2.8% in Q4, but revenue per ad customer remained steady Q/Q and rose 44.1% Y/Y to RMB20.9K ($3,362).
    • As promised, Baidu continues to invest aggressively: SG&A spend soared 136.9% Y/Y to $323.2M, thanks in large to mobile promotional efforts. R&D spend rose 57.5% to $205.4M.
    • Traffic acquisition costs rose to 12.4% of revenue from 12.3% in Q4 and 10.2% a year ago. Content costs (fueled by online video licensing) rose to 4.1% of revenue from 3.8% in Q4 and 1.6% a year ago.
    • Up in sympathy: SINA +1.6%. SOHU +1%. QIHU +2.6%. YY +1.1%. WB +1.5%. YOKU +1.7%.
    • Q1 results, PR
    | 1 Comment
  • 4:46 PM
    • The offering size is 25M shares with underwriter greenshoe of up to an additional 3.75M. The current float is about 250M shares.
    • NRZ -3.9% AH
    • Source: Press Release
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  • 4:42 PM
    • Amazon (AMZN) reports a 26% gain in sales in North America to $11.86B and a 18% rise in sales for its international business to $7.88B. Profits increased at a faster rate on the U.S. side.
    • Overall, Amazon's operating margin narrowed 40 bps Y/Y to 1.1%. Once again, management wasn't shy about letting operating expenses grow right along with sales.
    • The company sees revenue of $18.1B-$19.8B in Q2 vs. $19.0B consensus. An operating loss of up to $455M is expected for the period.
    • AMZN +2.1% AH
    | 5 Comments
  • 4:37 PM
    • Baidu, Inc. (BIDU): Q1 EPS of $1.24 beats by $0.21.
    • Revenue of $1.52B
    • Shares +7.4%.
    • Press Release
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  • 4:36 PM
    • Pandora (P) expects Q2 revenue of $213M-$218M and EPS of $0.00-$0.03, below a consensus of $219.3M and $0.05. Full-year guidance is for revenue of $880M-$900M (up $10M from prior guidance) and EPS of $0.14-$0.18 (up $0.01) vs. a consensus of $892.3M and $0.16. Shares -5% AH. (Q1 results, PR)
    • SunPower (SPWR) expects Q2 revenue of $575M-$625M and EPS of $0.15-$0.35, largely below a consensus of $628.3M and $0.30. Full-year guidance is stronger: revenue of $2.5B-$2.65B and EPS of $1.10-$1.40 vs. a consensus of $2.55B and $1.21. Shares +0.9% AH. (Q1 results, PR)
    • Broadcom (BRCM) expects Q2 revenue of $2B-$2.1B vs. a $2.07B consensus. Gross margin is expected to rise 75-175 bps Q/Q. Shares -0.2% AH. (Q1 results, PR)
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  • 4:27 PM
    • Hanesbrands Inc. (HBI): Q1 EPS of $0.76 beats by $0.18.
    • Revenue of $1.06B (+12.1% Y/Y) misses by $20M.
    • Shares +4.6%.
    • Press Release
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  • 4:26 PM
    • DeVry Education Group Inc. (DV): FQ3 EPS of $0.86 beats by $0.11.
    • Revenue of $496.1M (-2.5% Y/Y) beats by $2.58M.
    • Shares +1.5%.
    • Press Release
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  • 4:24 PM
    • Starbucks (SBUX) reports global comparable store sales increased 6% in FQ2 vs. 5% in FQ1 and 6% for the year-ago period.
    • Comp growth was fairly consistent across regions: Americas and U.S. +6%; EMEA +6%; China/Asia Pacific +7%.
    • Operating margin improved 130 bps to 16.6% on sales leverage gains and lower commodity costs (coffee was hedged).
    • The company added 335 net new stores during the quarter.
    • FY14 EPS guidance is increased to $2.62-$2.68.
    • SBUX +0.9% AH
    | 2 Comments
  • 4:24 PM
    • Microsoft's (MSFT) Commercial revenue grew 7% Y/Y in FQ3 to $12.7B, a little below FQ2's 10% clip. Devices & Consumer revenue grew 12% to $8.3B after growing 13% in FQ2.
    • Commercial Licensing (50% of revenue, 65% of gross profit) sales +10% vs. +7%, with Windows volume licensing up 11% and and key server productivity offerings (Lync, SharePoint, Exchange) collectively growing double-digits.
    • Commercial Other +31% vs. +28%; 100% and 150% respective increases for Office 365 and Azure fueled the growth. The division is now nearly 10% of revenue, but still makes up less than 4% of gross profit (lower cloud margins).
    • D&C licensing rose 1% after falling 6% in FQ2, thanks in part to stabilizing PC sales; Windows OEM revenue rose 4%.
    • D&C hardware +41% (thanks to Xbox One sales) ahead of the Nokia deal's closing; Surface revenue totaled just $500M. D&C Other +18%; Office 365 Home added almost 1M subs, raising its total base to 4.4M.
    • Drops in sales/marketing and G&A spend led opex to fall 7% Y/Y to $7.49B. That boosted EPS, as did $1.8B in buybacks.
    • Satya Nadella hosts his first CC at 5:30PM ET, guidance will be provided.
    • MSFT +2% AH. FQ3 results, PR.
    | 4 Comments
  • 4:07 PM
    • Starbucks Corporation (SBUX): FQ2 EPS of $0.56 in-line.
    • Revenue of $3.87B (+8.7% Y/Y) misses by $80M.
    • Shares +2.7%.
    • Press Release
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  • 4:05 PM
    • Microsoft Corporation (MSFT): FQ3 EPS of $0.68 beats by $0.05.
    • Revenue of $20.4B (-0.4% Y/Y) in-line.
    • Shares +2%.
    • Press Release
    | 2 Comments
  • 4:02 PM
    • Las Vegas Sands Corp. (LVS): Q1 EPS of $0.97 beats by $0.03.
    • Revenue of $4.01B (+21.5% Y/Y) beats by $130M.
    • Shares +1.6%.
    • Press Release
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  • 3:57 PM
    • Core Labs (CLB -9.2%) shares plunge after Q1 results surprised investors with below-consensus earnings driven by weather disruptions in January and February, slower than expected international activity, and offshore project delays.
    • CLB is downgraded to Underweight from Overweight with a $200 price target, lowered from $220, at Morgan Stanley, but Cowen believes the company's challenges are largely transitory and maintain its respective 2014 and 2015 EPS estimates of $6.15 and $7.15 (Briefing.com).
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