Seeking Alpha
  • Today - Friday, August 22, 2014

  • 9:41 AM
    • Keurig Green Mountain (GMCR +8.5%) and Kraft Foods Group (KRFT +0.3%) sign a new licensing deal which will see Kraft-branded packs sold for Keurig commercial and consumer coffee brewing systems in the U.S.
    • Distribution will begin this fall.
    • Financial terms of the arrangement weren't disclosed.
    • What to watch: The deal is a bit of a coup for Keurig with Kraft selling unlicensed K-cup packets previously.
    | Comment!
  • 9:38 AM
    • Outliers to the downside in the industrial REIT sector in early action are DCT Industrial (DCT -1%) and Liberty Property Trust (LPT -1.2%) after BMO Capital pulls its Outperform ratings on the two.
    | Comment!
  • 9:24 AM
    • Investment firms weigh in on Gap (NYSE:GPS) following the retailer's Q2 report.
    • Sterne Agee liked what it saw, reiterating its Buy rating and taking its price target to $50,
    • Canaccord Genuity highlighted the potential for Gap to see long-term margin gains.
    • Janney Capital upgrades the retailer to Buy from Neutral on the promise that omni-channel will drive sales growth.
    • GPS +2.8% premarket
    | Comment!
  • 9:15 AM
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  • 9:05 AM
    • The Fresh Market (NASDAQ:TFM) trades higher after recording a slim earnings beat with its FQ2 report.
    • Though higher costs dragged down the company's profit compared to a year ago, its plan to open more stores in the Southeast and reaffirmed guidance is helping to boost sentiment.
    • TFM +6.7% premarket
    | Comment!
  • 8:31 AM
    • Alongside its downgrade of AGCO, Macquarie also cuts Deere (NYSE:DE) to Underperform with price target of $75, citing weakening demand and excess inventories as pressuring revenue.
    • Deere is lower by 1.1% premarket; AGCO by 1.5%.
    • Previously: AGCO lower after Macquarie downgrade
  • 8:27 AM
    | 1 Comment
  • Thursday, August 21, 2014

  • 6:12 PM
    • Tony Navarra, head of Globalstar's (NYSEMKT:GSAT) space operations and a 20-year company vet, is retiring. He'll remain a consultant for one year following his retirement.
    • Navarra's duties will be divided between Globalstar's satellite operations and satellite engineering chiefs, each of whom will report to CEO Jay Monroe.
    | 1 Comment
  • 5:56 PM
    • Strong Xbox One/PS4 sales fueled a 124.8% Y/Y FQ2 increase in GameStop's (NYSE:GME) new hardware sales to $332.3M (19% of revenue), which in turn drove the company's big revenue beat. Comparable store sales rose 21.9%.
    • New software sales +15.6% Y/Y to $497M; pre-owned value game sales +5.5% to $558M; game accessories +17% to $107.5M; digital +6% to $52.3M; mobile/consumer electronics +85.1% to $112.1M.
    • A mix shift towards hardware led gross margin to fall 260 bps Y/Y to 31.8%. SG&A spend fell to 27.5% of revenue from 30.5%. $75.5M was spent on buybacks.
    • GameStop expects FQ3 EPS of $0.58-$0.64 (above a $0.57 consensus), with comp. sales growth of 1%-5%. FY14 EPS guidance of $3.40-$3.70 is being maintained for now (consensus is already up to $3.67); 6%-12% full-year comp. sales growth is expected.
    • FQ2 results, PR
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  • 5:35 PM
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  • 5:22 PM
    • Brocade (NASDAQ:BRCD) guides in its earnings slides (.pdf) for FQ4 revenue of $550M-$570M and EPS of $0.21-$0.23, in-line with a consensus of $561.3M and $0.22.
    • In spite of the Fibre Channel struggles seen by adapter card/embedded switch vendors Emulex and QLogic, Brocade's SAN product revenue (60% of total) rose 1% Q/Q and 4% Y/Y in FQ3 to $325M. SAN switch and director sales respectively rose 9% and 5% Y/Y, offsetting an adjusted 11% drop in server product (adapter/embedded switch) sales.
    • IP networking revenue rose 9% Q/Q and fell 1% Y/Y to $133M; the Y/Y drop is better than FQ2's 9%. Router weakness, product strategy changes, and the sale of Brocade's adapter card business to QLogic offset switch growth.
    • SAN products are expected to be down 1%-2% Q/Q in FQ4, and IP networking up 6%-15%. Geopolitical issues and transitions at OEM partners (i.e. IBM) are expected to weigh on SAN revenue, while high-density router launches and federal seasonality are expected to boost IP networking.
    • Gross margin rose 50 bps Q/Q and 160 bps Y/Y to 67.2%, beating guidance of 65.5%-66.5%. FQ4 GM guidance is at 66%-67%. $112M was spent on buybacks. EMC/IBM/Hitachi made up 48% of revenue vs. 47% a year ago.
    • FQ3 results, PR (.pdf)
    | 1 Comment
  • 5:15 PM
    • Aeropostale (NYSE:ARO) -9.2% AH despite posting a narrower than expected Q2 loss, as the struggling teen apparel retailer issues downside guidance for Q3, sees a loss of $0.44-$0.48/share vs. analyst consensus for a $0.35 loss.
    • Q2 gross margin narrowed to 15.8% from 17.9%, but input costs fell 11% to $333M.
    • ARO had pre-announced some of its Q2 results earlier in the week while announcing the return of former CEO Julian Geiger to replace Thomas Johnson.
    | Comment!
  • 4:58 PM
    • In addition to beating Q2 revenue estimates (while missing on EPS), Qunar (NASDAQ:QUNR) is guiding for 90%-95% Y/Y Q3 revenue growth; the consensus is for revenue to grow 83% to $72M.
    • Mobile revenue rose 511.8% Y/Y in Q2 to $22.9M (35.5% of revenue), fueling the revenue beat. Flight revenue +143.3% to $45M; hotel revenue +79.5% to $11.5M. Flight ticket volume +66.1%, and revenue/ticket +46.4%. Hotel room night volume +105.2%, but revenue per room night -12.5%.
    • Gross margin fell to 73.6% from 78.1% in Q1 and 78.2% a year ago (hurt EPS). Qunar notes higher payment-processing fees pressured its gross profit.
    • Spending was heavy: R&D spend +181.6% Y/Y to $29.3M, sales/marketing +212.4% to $34.7M, product sourcing spend +416.1% to $10.9M, G&A spend +432.9% to $18M. Online marketing spend +120.5% Q/Q to $23.8M.
    • If history is any guide, Ctrip (NASDAQ:CTRP) and/or eLong (NASDAQ:LONG) could follow Qunar higher.
    • Q2 results, PR
    | Comment!
  • 4:38 PM
    • Though Marvell (NASDAQ:MRVL) posted in-line FQ2 revenue and beat EPS estimates, it's guiding for FQ3 revenue of $960M-$1B and EPS of $0.29 (+/- $0.02), below a consensus of $1.01B and $0.32. No explanation is provided in the earnings release for the outlook.
    • FQ2 gross margin was 50.6%, +180 bps Q/Q and -140 bps Y/Y, and near the high end of a 49%-51% guidance range (drove the EPS beat). FQ3 GM guidance is also at 49%-51%.
    • GAAP opex fell 2% Y/Y to $363.4M (compares with a slight revenue increase), with R&D spend nearly flat at $294.8M. No buybacks were carried out.
    • FQ2 results, PR
    | 1 Comment
  • 4:30 PM
    • ScanSource (NASDAQ:SCSC): FQ4 EPS of $0.60 beats by $0.01.
    • Revenue of $758.1M (+6.4% Y/Y) beats by $18.07M.
    • Shares +1.88% AH.
    • Press Release
    | Comment!
  • 4:26 PM
    • The Fresh Market (NASDAQ:TFM): Q2 EPS of $0.36 beats by $0.01.
    • Revenue of $422.23M (+19.0% Y/Y) beats by $10.38M.
    • Shares +5.16% AH.
    • Press Release
    | Comment!
  • 4:07 PM
    • (NYSE:CRM): Q2 EPS of $0.13 beats by $0.01.
    • Revenue of $1.32B (+37.9% Y/Y) beats by $30M.
    • Shares +2.6% AH.
    • Press Release
  • 4:04 PM
    • GameStop (NYSE:GME): Q2 EPS of $0.22 beats by $0.03.
    • Revenue of $1.73B (+25.4% Y/Y) beats by $90M.
    • Shares +3.68% AH.
    • Press Release
  • 3:59 PM
    • Optical component vendors JDS Uniphase (JDSU +4.3%), Finisar (FNSR +3.4%), Oplink (OPLK +3.2%), Oclaro (OCLR +3.6%), and Alliance Fiber (AFOP +2.5%) have all rallied on a quiet day of trading, and so has client Ciena (CIEN +2.7%). No news has hit the wires to explain the gains.
    • JDS, Oclaro, and Alliance Fiber all sold off in recent weeks (I, II, III) after providing disappointing guidance in their calendar Q2 reports. JDS (like Juniper following its Q2 report) observed soft North American wireline capex is pressuring industry sales.
    | Comment!
  • 3:53 PM
    • Jim Cramer offers a shout-out for DistributionNOW (DNOW +1.6%), the distribution business that recently was spun out from National Oilwell Varco, as a long-term gainer based on the amount of money set to be spent on oil pipelines.
    • Cramer notes that Rich Kinder believes $800B will be spent on new pipeline, and DNOW CEO Robert Workman confirmed the outlook on CNBC's Mad Money.
    • Cramer sees DNOW as a one-stop shop for the industry's pipe, valve and flange needs, and notes that Warren Buffett has acquired a stake in the company.
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