Thursday, January 29, 2015
- With the Senate weighing a bipartisan effort to let companies repatriate offshore cash for five years at a 6.5% rate, Google (NASDAQ:GOOG) CFO Patrick Pichette states on the Q4 CC the passage of such a bill would change how his company spends. He adds ~60% of Google's cash is offshore, and ~40% domestic. (CC live blogs: WSJ, BI)
- Google ended Q4 with $64.4B in cash/marketable securities, and $5.2B in debt. Speculation that dividends and/or buybacks might finally happen has grown a bit lately. Pichette says Google has nothing to announce regarding capital returns, but also insists Google does care about its stock price and reviews the matter with its board.
- Chief business officer Omid Kordestani states YouTube's mobile revenue more than doubled Y/Y. YouTube, which is trying hard to grab brand ad dollars from TV advertisers, has already disclosed mobile now accounts for ~40% of its global viewing time.
- Other CC highlights: 1) Google saw $150M worth of forex hedging gains in Q4. If not for them, forex's revenue impact would've been above $600M. 2) Pichette suggests Google would be hiring even more employees if it could find enough qualified personnel. 3) Over $900M of Google's capex went into real estate purchases.
- GOOG now +1.4% AH. Q4 results, details.
- Mitek (NASDAQ:MITK) ended FQ1 with 3,304 financial institutions signed as Mobile Deposit clients, up from 3,026 at the end of FQ4. 2,744 clients were live.
- The company states both Mobile Deposit and Mobile Photo Account Opening contributed to its FQ1 revenue growth. Software revenue rose by nearly $600K Y/Y to $3.7M, and maintenance/professional services revenue by $350K to $1.6M.
- Costs/expenses fell 12% to $5.26M. Mitek ended 2014 with $26.9M in cash/short-term investments, and no debt.
- Shares had rallied strongly this week going into earnings. They're at $4.18 AH.
- FQ1 results, PR
- Deckers (NYSE:DECK) guides for 10% Y/Y FQ4 revenue growth and breakeven EPS; consensus is for 11% growth and EPS of $0.13. FY15 (ends March. '15) UGG revenue growth guidance has been lowered to 11% from 14%.
- FQ3 UGG brand revenue +6.5% to $736M; Teva brand -12.1% to $13.6M; Sanuk brand -7.9% to $20.5M; other brands +96.5% to $14.6M.
- Retail sales +8.3% to $192.7M, e-commerce +25.2% to $146.9M. U.S. revenue grew just 3.1% to $526.3M; international +14.6% to $258.4M.
- Gross margin rose 180 bps to 52.9%, but SG&A spend rose to 25.6% of revenue from 23.7%. $13.3M was spent on buybacks.
- CEO Angel Martinez: "Full price selling of casual boots, weather boots, and specialty classics exceeded expectations and in some cases outpaced our inventory investments. At the same time, demand for core Classic collection accelerated as the quarter progressed but overall sales were down due in part to a slow October and November selling period and tough year-over-year comparisons. Along with foreign exchange headwinds, this led to the revenue shortfall for the quarter."
- FQ3 results, PR
- InvenSense (NYSE:INVN) has guided on its FQ3 CC (webcast) for FQ4 revenue of $95M-$98M and EPS of $0.11-$0.13. The former is above a $92.2M consensus, and the latter in-line with a $0.12 consensus.
- FQ3 gross margin (non-GAAP) was 45.7%, up from FQ2's 37.2% (hurt by an ~800 bps inventory charge) but down from 50.9% a year ago and unfavorable to guidance of ~46%-47%. FQ4 GM guidance is also at ~46%-47%;
- InvenSense says it sees a flat to slightly improving GM environment over the next 2-3 quarters. Margin worries also contributed to last October's post-earnings plunge.
- Smartphones/tablets were 81% of revenue in FQ3, gaming 3%, and optical image stabilization/other 16%. InvenSense's top two customers (presumably Apple and Samsung) made up 69% of revenue (specifically, 45% and 24%) vs. 55% in FQ2.
- Shares are down to $13.90 in AH trading.
- FQ3 results, PR
- Advanced Emissions Solutions (NASDAQ:ADES) -5.3% AH on news that KPMG has resigned as its independent accounting firm, citing in an SEC filing "an inappropriate tone at the top, discontent with the company's timeliness and responsiveness to its requests for information."
- ADES also says it is unlikely to regain compliance with SEC filing requirements by the previously reported March 27 deadline, and expects to be delisted from the Nasdaq market.
- Majesco's (NASDAQ:COOL) Wii/WiiU revenue fell 70% Y/Y in FQ4 (ended in October) to $944K. Likewise, its DS/3DS revenue fell 71% to $1.3M.
- On the other hand, PS3/PS4 revenue rose over 5x to 1.7M. Xbox 360/One revenue fell 3% to $1.3M, and accessories/other rose 29% to $1M.
- Operating costs/expenses fell 11% to $4.7M. Majesco ended October with $7.2M in cash; new financing was obtained in December.
- Shares are down to $1.05 AH.
- FQ4 results, PR
- JDS Uniphase (NASDAQ:JDSU) expects FQ4 revenue of $418M (+/- $10M) and EPS of $0.09 (+/- $0.02), below a consensus of $431.3M and $0.14.
- Not surprisingly (previous), JDS states weak U.S. carrier spending weighed on FQ2 results. This weakness led network enablement (test equipment) revenue to fall 14.2% Y/Y to $133.7M. Optical component sales fell 4.2% to $167.1M, but laser sales (boosted by industrial demand) rose 70.2% to $40M.
- Service enablement (telecom software/services) revenue rose 16.6% to $45.7M, and optical security/performance products (includes Xbox Kinect components) fell 7.3% to $50.6M.
- Gross margin rose 10 bps Q/Q and 60 bps Y/Y to 49.1%. Op. margin was 9.9%, +80 bps Q/Q but -110 bps Y/Y. JDS expects to finish spinning off its optical component/laser ops (CCOP) by the end of calendar Q3.
- Amazon (NASDAQ:AMZN) expects Q1 revenue of $20.9B-$22.9B (+6%-16% Y/Y), below a $23.05B consensus. Op. income guidance is at -$450M to $50M, and includes $450M in stock compensation and amortization costs.
- Revenue growth fell to 15% in Q4 from 20% in Q3, with North American sales (64% of total) rising 22% and international only 3%. International would've been up 12% if not for forex.
- Media revenue fell 4% Y/Y in Q4 to $6.95B (international -8%, North America +1%). But electronics/general merchandise rose 21% to $20.6B (international +10%, North America +27%).
- Other revenue (dominated by AWS) rose 26% Q/Q and 41% Y/Y to $1.74B. AWS usage was up nearly 90% Y/Y, and active customers now top 1M.
- Contributing to the EPS beat: Gross margin rose to 29.5% from 26.5% a year ago. Also helping: While fulfillment spend rose 17% Y/Y to $3.4B, that's a much slower pace than Q3's 30%. Marketing spend +35% to $1.5B; tech/content +42% to $2.6B; G&A +39% to $442M. Op. margin was 2%, even with a year ago.
- Third-party sellers using Amazon's fulfillment services rose over 65% Y/Y in 2014 (share gains against eBay), and accounted for over 40% of Q4 third-party units.
- Shares have risen above $336 AH.
- Q4 results, PR
- Update (6:32PM): Amazon is now up 14.2% AH.
- Manitowoc (NYSE:MTW) +9.4% AH on its plan to separate into two stand-alone publicly-traded companies.
- MTW's Cranes business reported 2014 revenue of $2.3B; for 2015, MTW forecasts revenues to decline by mid-single digits.
- The Foodservice business reported 2014 revenue of $1.6B; for 2015, MTW expects revenues to grow by mid-single digit percentage.
- The move comes amid pressure from Carl Icahn, who disclosed a month ago that he owned a 7.77% stake in MTW and would seek a separation of the two businesses.
- Earlier: Manitowoc misses by $0.05, misses on revenue
- Synaptics (NASDAQ:SYNA) expects FQ3 revenue of $450M-$470M, soundly above a $423.8M consensus.
- With the Renesas SP acquisition providing a boost, mobile revenue rose 198% Y/Y in FQ2 to $398.3M, and made up 86% of total revenue. PC revenue fell 9% to $65.4M. Synaptics expects a similar mobile/PC mix in FQ3.
- Backlog stands at $245M. Synaptics has begun mass-producing its TDDI integrated touch controller/display driver ICs.
- Shares have soared above $75 in AH trading.
- FQ2 results, PR
- Visa (NYSE:V) reports the strong U.S. dollar impacted growth by a full 2 percentage points in Q4.
- Payments volume growth +11% to $1.2T on a constant dollar basis.
- Cross-border volume growth +8%.
- Processed transactions +10% to 17.6B.
- Operating expenses +10% to $1.1B.
- The company announces a 4-for-1 split.
- V +4.2% after hours
- Q4 operating earnings of $324M or $1.09 per share vs. $286M and $0.96 one year ago. Quarterly dividend is boosted by 6% to $0.36 per share.
- Retirement and investor Services - Guaranteed operating earnings of $26.9M up 4% Y/Y. Principal Global Investors operating earnings of $36.4M up 21%. Principal International operating earnings of $62.9M up 2%.
- Individual Life operating earnings of $27.6M down 15%, mostly thanks to favorable claims in the year-ago quarter. Premium and fees of $234.3M up 4%.
- Specialty Benefits operating earnings of $28M up 3%, with premium and fees of $406.3M up 6%.
- Conference call tomorrow at 10 ET
- Previously: Principal Financial Group beats by $0.05, beats on revenue (Jan. 29)
- PFG +1.5% after hours
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