Seeking Alpha
  • Today - Friday, October 24, 2014

  • 11:20 AM
    • In addition to beating Q3 revenue estimates (while posting in-line EPS), Ingram Micro (NYSE:IM) has guided for Q4 Y/Y revenue growth of 8%-12% and EPS of $0.95-$1.02, mostly above a consensus for 5.1% growth and EPS of $0.97.
    • CLSA has given the IT hardware distributor a two-notch upgrade to Outperform. A fall selloff had tempered expectations going into earnings.
    • A near-50% Y/Y increase in Mobility product sales (boosted by a new Verizon channel deal) to $2B helped drive the Q3 revenue beat. EPS was pressured by 15 bps drop in gross margin to 5.75%, which was caused by a mix shift towards mobility and systems sales.
    • Q3 results, PR
    | Comment!
  • 11:02 AM
    • Frontier's (FTR -0.7%) $2B purchase of AT&T's Connecticut wireline assets has officially closed. Connecticut's AG had signed off on the deal in August.
    • The purchase gives Frontier 875K voice, 415K data, and 215K video connections, and 2.5K employees. Frontier respectively had 1.93M and 393K broadband and video subs, and 13.9K employees, at the end of Q2.
    • Frontier has promised to invest $63M over the next three years to expand U-verse service coverage and increase broadband speeds in the state. The telco predicts it will "realize significant cost savings from leveraging its current infrastructure in supporting the new Connecticut business operations."
    | Comment!
  • 10:42 AM
    • A Chinese paper reports China Unicom (CHU +0.9%) and China Telecom (CHA +1%) plan to launch (through a JV) a local content delivery network. The JV, which would aim to profit from China's rapid mobile data and online video traffic growth, would be run by CHA's cloud services unit.
    • Leading Chinese CDN owner ChinaCache (CCIH -5.1%) isn't responding well to the news, which comes two weeks after CHA announced a CDN partnership with Akamai. Alibaba launched its own CDN services last year.
    | Comment!
  • 10:29 AM
    • Goldman has cut QIWI to Sell from Buy, and slashed its target by $35 to $24. The firm is worried regulators will crack down on the Russian online payments leader due to its non-compliance with user identification requirements.
    • Qiwi has already sold off more than once on fears about new regulations. Shares are close to a 52-week low of $26.14.
    | Comment!
  • 10:06 AM
    • The FT reports P-E firms Bain and Apax Partners are weighing offers for Portugal Telecom (PT +3.7%). Both PT and merger partner Oi (OIBR +6.1%) are rallying in early trading.
    • French cable giant Altice has also been reported have interest in acquiring PT, and thus undoing the Oi merger. Shares of both companies have cratered this year, thanks in part to the Rioforte debt scandal.
    | 2 Comments
  • 9:54 AM
    • In addition to easily topping Q3 estimates, Gigamon (NYSE:GIMO) guided on its CC (transcript) for Q4 revenue of $41M-$44M, above a $39.4M consensus. With shares down 59% YTD going into earnings thanks to multiple warnings, that's going over pretty well.
    • BofA/Merrill has upgraded the network visibility hardware vendor to Neutral, and hiked its target by $5 to $16. It's pleased with strong demand for the recently-launched/high-end GigaVUE-HC2, as well as the company's recent sales leadership change.
    • Nearly 15% of the float was shorted as of Sep. 30.
    | Comment!
  • 9:37 AM
    • Cowen has downgraded Equnix (EQIX -1.9%) to Market Perform, and cut its target by $26 to $214.
    • The downgrade comes ahead of the data center owner's Oct. 29 Q3 report, and a week after it announced a $7.57/share special distribution to help qualify for REIT tax status.
    | Comment!
  • 9:33 AM
    • Peter Theran, formerly an exec at high-end speaker vendor Bose, has been hired to be 3D Systems' (DDD -0.4%) VP of consumer retail.
    • Theran is tasked with "[broadening] the reach and penetration of 3DS' latest consumer products, services and experiences including its Cube 3 and CubePro printers and its expanding portfolio of perceptual devices and online Cubify experiences."
    • 3D's consumer revenue fell 24% Q/Q in Q2 to $7.4M (just 5% of total revenue), something the company blamed on "delayed new products availability." Delayed consumer product launches were also partly blamed for the company's recent Q3/full-year warning.
    • Stratasys' MakerBot unit has been faring better in the consumer/enthusiast space: Its sales rose 63% Q/Q in Q2 to $33.6M.
    | Comment!
  • 9:18 AM
    • Believing shares are now properly valued and expectations more realistic, Goldman has upgraded NCR to Neutral, and upped its target by $1 to $26.
    • The upgrades comes a day after NCR posted its Q3 report, which confirmed the numbers and commentary provided in the company's Monday warning. On Tuesday, activist Marcato Capital disclosed a 6.5% stake, and nominated a director.
    • NCR's Retail Solutions revenue fell 1% Y/Y in Q3 to $489M. Financial services +17% to $899M; Hospitality +4% to $168M; Emerging Industries +6% to $91M. Gross margin fell 300 bps Y/Y to 24.5%.
    | Comment!
  • 7:04 AM
    • IMS Health (NYSE:IMS): Q3 EPS of $0.37 beats by $0.03.
    • Revenue of $656M (+3.6% Y/Y) misses by $12.12M.
    • Press Release
    | Comment!
  • 6:56 AM
    | 6 Comments
  • 6:05 AM
    • LM Ericsson (NASDAQ:ERIC): Q3 EPS of SEK1.11 beats by SEK0.02.
    • Revenue of SEK57.6B (+8.7% Y/Y)
    • Press Release
    | Comment!
  • 5:12 AM
    • Digital River (NASDAQ:DRIV) has entered into a definitive merger agreement to be acquired by an investor group led by Siris Capital in a transaction valued at approximately $840M.
    • Under the terms of the deal, Siris will acquire all of the outstanding common shares of Digital River for $26.00 per share in cash, representing a premium of approximately 50% over yesterday's closing price.
    • The agreement will also allow Digital River to solicit alternative acquisition proposals from third parties during a 45-day "go-shop" period, following the date of execution of the merger agreement.
    • DRIV +15.1% premarket
    | Comment!
  • 12:56 AM
    • "Can you tell us or remind us what financial measures are important to you guys ... it's a little hard to see any of them making positive progress," asked Wolfe Research's Aram Rubinson during Amazon's (NASDAQ:AMZN) Q3 CC (transcript), just one of several pointed questions offered.
    • Bernstein's Carlos Kirjner asked about weak international margins - international op. loss rose to $224M from $28M a year ago - and why international's growth (14%) has fallen far behind North America's (25%). CFO Tom Szkutak (again) chalked up Amazon's losses to growth investments, and gave little detail about growth other than to state it "has been softer across a number of geographies."
    • BGC's Colin Gillis asked why North American media growth (+5%) was the lowest in years. Szkutak mentioned Amazon is seeing a demand shift from textbook purchases to rentals (could be a positive for CHGG), and that heavy discounting last year made for tough comps.
    • Total media revenue rose 4% to $5.2B vs. 10% in Q2, and total electronics/general merchandise revenue 26% to $14B vs. 27% in Q2. North American "Other" revenue (mostly AWS) rose 40% to $1.34B, and returned to positive Q/Q growth (15%) following huge price cuts earlier in 2014.
    • Other details: 1) $170M in charges were taken, largely related to the slumping Fire Phone. 2) Paid unit growth was 21% vs. 23% in Q2, and 3rd-party sellers made up 42% of units vs. 41%. 3) Gross margin rose 120 bps Y/Y to 28.9%. 4) Fulfillment, tech/content and marketing spend respectively rose to 12.4%, 10.8%, and 4.7% of revenue from 11.5%, 9.2%, and 3.9% a year ago.
    • Shares finished AH trading down 10.7%, making new 52-week lows along the way. Not factoring post-earnings estimate revisions, they now trade for 1.2x 2015E sales.
    • Q3 results, guidance/details, PR
    | 9 Comments
  • Thursday, October 23, 2014

  • 9:25 PM
    • In addition to missing FQ1 revenue estimates (while slightly beating on EPS), Maxim (NASDAQ:MXIM) is guiding for FQ2 revenue of $540M-$580M and EPS of $0.26-$0.32, below a consensus of $606.5M and $0.38.
    • The analog/mixed-signal chipmaker blames its FQ1 sales miss on "weakness in smartphone revenue," and adds a continued smartphone chip slump is "the catalyst for our decision to lower operating spending and reduce our manufacturing cost structure."
    • Leading customer Samsung's recent troubles almost certainly have much to do with Maxim's top-line challenges. Synaptics, which also depends heavily on Samsung, posted a top and bottom-line FQ1 miss this afternoon.
    • Maxim closed AH trading less than a dollar away from its 52-week low of $25.28.
    • FQ1 results, PR
    | 1 Comment
  • 8:50 PM
    • Though it beat Q3 estimates, Altera (NASDAQ:ALTR) is guiding for Q4 revenue to be down 2%-6% Q/Q. That implies a range of $469.6M-$489.6M ($479.6M midpoint) vs. a $485.7M consensus.
    • Q3 gross margin was 66.8%, down from 67% in Q2 and 68.3% a year ago. Q4 GM guidance is at 66%-67%.
    • With the help of strong orders from 4G mobile infrastructure clients (particularly from China), telecom/wireless chip sales (45% of revenue) rose 23% Y/Y in Q3. Industrial automation, military & auto +3%; networking, computer, and storage -5%; everything else +18%. FPGAs were 85% of revenue, up from 82% a year ago.
    • GAAP opex +9% Y/Y to $192.3M. $144.2M was spent on buybacks.
    • Shares had rallied after Xilinx posted an FQ2 beat a week ago.
    • Q3 results, PR
    | Comment!
  • 7:24 PM
    • Cerner (NASDAQ:CERN) expects Q4 revenue of $880M-$915M and EPS of $0.46-$0.47 vs. a consensus of $904.6M and $0.47. New business bookings are expected to total $1.15B-$1.25B.
    • Q3 bookings +19% Y/Y to $1.1B, at the high end of a $1B-$1.1B guidance range. Backlog +21% to $10.16B.
    • Systems revenue +11% to $224.3M. Support/maintenance/services revenue +17% to $593.1M. Reimbursed travel +36% to $22.7M.
    • Gross margin -30 bps Y/Y to 83.3%. GAAP opex +17% to $511.9M.
    • Q3 results, PR
    | 1 Comment
  • 7:04 PM
    • Microsoft (NASDAQ:MSFT) guides on its FQ1 CC for FQ2 revenue of $25.4B-$26.5B, below a $27.9B consensus. But the company has shown quite the knack for guiding conservatively in recent quarters; FQ1 revenue ($23.2B) was soundly above the guidance provided in July ($21.2B-$22.3B).
    • The company notes Devices & Consumer Licensing revenue (-9% Y/Y in FQ1) is being affected by the loss of revenue from Nokia; Nokia revenue totaled $650M in FQ2 last year.
    • Total Windows OEM revenue fell 2% Y/Y in FQ1, as price cuts offset unit growth. "Windows Phone revenue" (driven by Android royalties) fell 46%, something attributed in part to a "higher mix of low-royalty devices;" Microsoft is in the midst of a royalty dispute with high-end Android leader Samsung.
    • 9.3M Lumia phones were sold (up slightly Y/Y), aided by strong European and low-end demand. With feature phone sales falling quickly, phone hardware revenue is expected to drop to $2B-$2.2B in FQ2 from FQ1's better-than-expected $2.6B.
    • Search ad revenue rose 23% Y/Y; Microsoft pegs Bing's U.S. search share at 19.4% (+140 bps Y/Y).
    • Full-year opex guidance is unchanged at $34.2B-$34.6B. Due to the Nokia deal, opex was up 13% Y/Y in FQ1 to $7.9B. That growth rate should drop in the coming quarters, and possibly turn negative.
    • MSFT +2.6% AH. FQ1 results, details, guidance (.ppt), CC slides (.ppt)
    | 10 Comments
  • 6:25 PM
    • Though it posted in-line Q3 revenue and beat EPS estimates, Freescale (NYSE:FSL) is guiding for Q4 revenue of $1.075B-$1.125B, below a $1.18B consensus. In addition, gross margin is expected to drop 75-100 bps from a Q3 level of 46.3%.
    • Freescale was among the names clocked earlier this month by fellow microcontroller vendor Microchip's warning.
    • Q3 results, PR
    | Comment!
  • 6:18 PM
    • Though its results and guidance beat expectations, Pandora (NYSE:P) reports it had 76.5M active listeners at the end of Q3, barely above the 76.4M it had at the end of Q2 and up only 5.2% Y/Y. Questions about the impact of competition are bound to come up.
    • Listener hours totaled 4.99B, -1% Q/Q and +25% Y/Y; Y/Y growth benefited from the presence of a 40-hour free mobile listening cap during part of Q3 2013. Pandora's share of U.S. radio listening rose to 9.06% in September from 8.9% in June and 7.77% a year ago.
    • Total Q3 ad revenue per thousand ad-supported listener hours (RPM) rose to $44.35 from $40.11 in Q2 and $39.68 a year ago. PC ad RPM +10% Y/Y to $64.13; mobile ad RPM +16% to $40.82.
    • The RPM gains helped ad revenue rise 44% to $194.3M. Subscription/other revenue rose 25% to $45.3M. GAAP opex rose 48% to $114.8M, and content acquisition costs (driven by royalties) 33% to $111.3M.
    • P -6.1% AH. Q3 results, PR
    | 8 Comments
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