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Arris Group Inc (ARRS)

  • Tue, Aug. 25, 5:40 PM
    • Top gainers, as of 5.25 p.m.: QUNR +14.0%. ARRS +11.0%. OSK +11.0%. DY +8.6%. SLH +6.7%.
    • Top losers, as of 5.25p.m.: RIG -7.5%. TVIX -4.4%. WTI -3.0%. JNS -2.5%. CLLS -2.0%.
    | 1 Comment
  • Wed, Jul. 29, 4:58 PM
    • Arris' (NASDAQ:ARRS) Q2 results were in-line with the guidance provided in its July 10 warning. Q3 guidance is for revenue of $1.21B-$1.26B and EPS of $0.52-$0.58, below a consensus (might not fully take the warning into account) of $1.3B and $0.64.
    • With a strong dollar and industry M&A weighing (as stated in the warning), order backlog fell 8% Q/Q and 10% Y/Y to $651.3M. Book-to-bill was 0.94 vs. 0.85 in Q1 (seasonally weak for bookings) and 1.08 a year ago. Arris ended Q2 with $620M in cash/short-term investments, and $1.59B in debt.
    • Shares have risen to $32.17 AH.
    • Q2 results, PR
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  • Fri, Jul. 10, 5:40 PM
  • Fri, Jul. 10, 4:17 PM
    • Arris (NASDAQ:ARRS) now expects Q2 revenue of $1.25B-$1.26B and EPS of $0.51-$0.55, below prior guidance of $1.27B-$1.31B and $0.53-$0.58, and a consensus of $1.29B and $0.56.
    • CEO Bob Stanzione: "Our business continues to be impacted by external factors, most notably the various pending industry consolidations and by the strengthening of the US dollar.  At this point, we anticipate that these factors will continue to impact us in the second half of 2015."
    • He adds Arris' pending acquisition of U.K. rival Pace (has a strong European presence) is expected to "help counter some of these industry conditions as a result of anticipated synergies and a more diversified customer base and product portfolio."
    • Shares have fallen to $29.00 AH. The set-top/cable infrastructure vendor reports on July 29.
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  • Fri, Apr. 24, 3:17 PM
    • Today's notable tech gainers include Chinese microblogging leader Weibo (WB +9.4%), VoIP/4G signaling infrastructure provider Sonus (SONS +5.9%), Chinese mobile game publisher Sky-mobi (MOBI +7.2%), Chinese auto site Bitauto (BITA +5.6%), and cloud e-mail encryption software provider Zix (ZIXI +3.2%). The Nasdaq is up 0.7%.
    • Notable decliners include set-top/pay-TV infrastructure provider Arris (ARRS -4.5%), M2M/fleet management hardware and software provider CalAmp (CAMP -6.6%), and optical component vendor NeoPhotonics (NPTN -5.9%).
    • Weibo, Sky-mobi, and Bitauto are taking part in a fresh Chinese tech rally. Weibo, also up strongly on Wednesday, is now up 21% from Tuesday's close. Zix is up 11% since posting Q1 results and reiterating its full-year sales guidance on Tuesday; a 14.7% Y/Y Q1 increase in orders to $14.3M is going over well. Sonus' gains come two days after the company posted Q1 results that were slightly better than the guidance provided in its March 24 warning.
    • Arris is giving back some of the huge Thursday gains seen on account of its $2.1B deal to buy set-top rival Pace (and take advantage of its lower tax rates); Synergy Research estimates Arris/Pace will have a combined 17% global video infrastructure share (nearly even with Cisco's 18%), and a  set-top share of ~30%. CalAmp is returning some of the huge Wednesday gains seen due to its FQ4 beat and solid FY16 guidance.
    • Previously covered: Chip stocks (a lot of them), Amazon, Microsoft, 3D Systems, Unisys, Silicon Motion, Rackspace, Netgear, AMSC, Verisign, Acacia, Infosys, Juniper, Ubiquiti, Maxwell, Synaptics, HomeAway, Gigamon
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  • Thu, Apr. 23, 12:45 PM
  • Thu, Apr. 23, 9:13 AM
  • Wed, Apr. 22, 5:35 PM
  • Wed, Apr. 22, 5:17 PM
    • Less than 3 years after striking a deal to buy Motorola Home for $2.35B, Arris (NASDAQ:ARRS) has announced it's buying U.K. set-top hardware/software provider Pace for $2.1B in cash and stock.
    • Arris is paying £1.325/share in cash and issuing 0.1455 shares for each Pace share traded in London. Before accounting for the AH surge in Arris' shares, the price represents a 29% premium to Pace's Wednesday close.
    • Pace shareholders will own 24% of the post-merger company. BofA/Merrill is providing Arris with financing. The fragmented nature of the global set-top industry could help secure regulatory approval.
    • The deal is expected to close in late 2015. Arris chairman/CEO Bob Stanzione will maintain his current position. Arris expects the deal to boost EPS by $0.45-$0.55 in the first 12 months after closing, and (thanks to U.K. incorporation) cut its tax rate to 26%-28%. The combined company will have ~$8B/year in sales; Arris 2014 sales totaled $5.32B.
    • Pace's product line includes cable, satellite, and IPTV set-tops; cable, DSL, and fiber modems/gateways; set-top and service management software; and last-mile optical networking equipment. The company has strong exposure to European pay-TV providers.
    • Arris has soared to $38.40 AH. Q1 results arrive on April 29.
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  • Wed, Mar. 25, 3:57 PM
    • With the Nasdaq down 2.3%, only a handful of tech companies are posting 2%+ gains. Meanwhile, the ranks of those posting 4%+ losses are considerable.
    • Notable decliners include telecom/networking chipmakers Broadcom (BRCM -5.3%) and PMC-Sierra (PMCS -4.4%), chip equipment giant Applied Materials (AMAT -5.5%), optical component vendor Finisar (FNSR -6.7%), smart grid hardware/software vendor Silver Spring (SSNI -7.9%), Chinese app developer Cheetah Mobile (CMCM -4.4%), cable infrastructure/set-top vendor Arris (ARRS -4.8%), server OEM Super Micro (SMCI -5.8%), IP licensing firm Finjan (FNJN -13.8%), and cloud life sciences software leader Veeva (VEEV -5.7%).
    • Broadcom, PMC-Sierra, and Applied Materials have joined a slew of other chip industry names in posting steep losses. Finjan is reversing yesterday's big gains. Cheetah Mobile, which sold off post-earnings last week, announced today's it's the lead investor in a $24M funding round for social/mobile ad platform Nanigans; the move follows the $58M purchase of French mobile ad network MobPartner.
    • Previously covered: Solar stocks, Mobileye, GoPro, Groupon, On Track, Netlist, Baidu/Qihoo, AMD, Yingli, Lexmark/Kofax
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  • Tue, Mar. 10, 11:31 AM
    • Barclays has upgraded Arris (ARRS +2.3%) to Overweight, and hiked its target by $6 to $36.
    • Arris rallied last month in spite of providing soft Q1 guidance on Feb. 18 to go with a Q4 EPS beat. Shares still only go for 11x 2015E EPS and 9x 2016E EPS.
    | 1 Comment
  • Wed, Feb. 18, 6:25 PM
    • Though it beat Q4 EPS estimates (while posting in-line revenue), Arris (NASDAQ:ARRS) is guiding for Q1 revenue of $1.2B-$1.24B and EPS of $0.40-$0.45, almost entirely below a consensus of $1.24B and $0.55. The company blames "anticipated reductions in volume, product mix, and price reductions implemented at the beginning of the year."
    • On the other hand, Q4 order activity was healthy: Backlog rose 6% Q/Q and 17% Y/Y to $631M, yielding a book-to-bill of 1.03 (up from 0.86 in Q3 and 1.01 a year ago). The company notes it "made significant market share gains" (in large part at Cisco's expense) in 2014, and that key design wins will enter production in 2015.
    • Thanks to Motorola-related SG&A spending cuts and lower charges, GAAP operating expenses fell 8% Y/Y to $291M (boosted EPS). $127M in tax benefits were recorded related to the Motorola deal.
    • Shares have fallen to $26.98 AH. They rose 5.1% in regular trading.
    • Q4 results, PR
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  • Wed, Feb. 18, 11:08 AM
    • Arris (NASDAQ:ARRS) is posting solid gains ahead of this afternoon's Q4 report. 1.18M shares have already been traded; the 3-month daily average is only 1.38M.
    • The set-top/cable infrastructure vendor's shares remain down slightly from where they traded prior to an Oct. 29 Q3 EPS beat. Cisco, which has been losing set-top share to Arris and others, recently reported a 19% Y/Y drop in service provider video product sales for its January quarter.
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  • Fri, Jan. 23, 11:08 AM
    • Raymond James has downgraded Arris (ARRS -3%) to Outperform from Strong Buy, and cut its target by $4 to $35.
    • The downgrade comes ahead of the cable infrastructure/set-top vendor's Q4 report. Shares go for 10x 2015E EPS.
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  • Dec. 12, 2014, 5:39 PM
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  • Oct. 22, 2014, 11:02 AM
    • Broadcom (NASDAQ:BRCM) is above $40 after soundly beating Q3 estimates and providing better-than-feared Q4 guidance. On its CC (transcript), the company noted its Q3 beat was fueled by 16% Q/Q growth for its broadband/wireless connectivity chip reporting segment (67% of revenue).
    • Wireless connectivity sales almost certainly got a lift (given Apple's numbers) from strong iPhone-related orders. The iPhone 6/6 Plus feature a Broadcom combo chip containing an 802.11ac Wi-Fi radio; 802.11ac parts carry higher ASPs than chips sporting 802.11n Wi-Fi radios (such as the one in the iPhone 5S).
    • Broadband connectivity sales benefited from strong HD set-top IC sales (aided by share gains) for emerging markets designs. That appears to be giving a lift to set-top vendor/Broadcom client Arris (NASDAQ:ARRS) ahead of its Oct. 29 Q3 report.
    • The networking/infrastructure chip segment's sales were roughly flat Q/Q at $651M, in-line with expectations. Data center and carrier-related sales both fell - soft telecom capex has taken a toll on many firms - while enterprise and home product sales rose. "Some pickup" is expected in carrier-related sales next year.
    • During the Q&A, CEO Scott McGregor hinted Broadcom could announce new capital return plans during its Dec. 9 analyst day, given it now has over $2.7B in U.S. cash. $277M was spent on buybacks in Q3.
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Company Description
ARRIS Group Inc provides entertainment & communications solutions. It provides Customer Premises Equipment including set-top, gateway, DSL & cable modem; and Network & Cloud including video infrastructure, access & transport, & cloud solutions.