Stephen Simpson, CFA
Stephen Simpson, CFA
Apr. 14, 2015, 9:37 AM
- Believing PC weakness is priced in and valuations are low, BofA/Merrill has upgraded Seagate (STX +0.8%) to Neutral and Western Digital (WDC +1.1%) to Buy ahead of the companies' calendar Q1 reports (set for April 17 and 28, respectively).
- BofA thinks pricing is holding up well in spite of PC-driven unit weakness, and that a mix shift towards higher-margin enterprise drives (fueled by Web/cloud demand) is propping up both ASPs and gross margins.
- Nonetheless, the firm is respectively cutting its Q1 and Q2 hard drive market shipment (NYSE:TAM) forecasts by 4M and 3M to 126M and 129M - Seagate/Western's Q1 forecast is at 135M - and its 2015 TAM forecast by 9M to 525M. Estimates for both firms have been moderately cut.
- Regarding Western, BofA argues the company's strong SSD presence (made possible by a string of acquisitions) "ensures that the cannibalization of performance drives [by SSDs] is not a significant net negative."
- The upgrades come a day after Brean reiterated Buy ratings on Seagate/Western (while cutting estimates), and Jefferies added Western to its Franchise Pick list; like BofA, Jefferies cited the demand/ASP boost provided by high-capacity cloud drives, and argued PC issues are priced in.
Nov. 6, 2014, 6:11 AM
- Taminco (NYSE:TAM): Q3 EPS of $0.43 beats by $0.18.
- Revenue of $369M (+22.2% Y/Y) beats by $5.85M.
Sep. 11, 2014, 10:43 AM
- Taminco (TAM +11.8%) says it has agreed to be acquired by Eastman Chemical (EMN +0.1%) for $26/share.
- The merger agreement includes a 30-day go-shop period, when TAM will solicit and evaluate any alternative proposals.
- EMN says the acquisition strengthens its presence in attractive niche markets such as food, feed and agriculture, and adds a world-class technology platform in alkylamines to its portfolio.
- EMN expects the deal to be accretive to 2015 EPS by greater than $0.35, excluding acquisition-related costs and charges, and to 2016 EPS by greater than $0.60.
Aug. 7, 2014, 6:25 AM
- Taminco (NYSE:TAM): Q2 EPS of $0.21 misses by $0.04.
- Revenue of $370M (+21.3% Y/Y) beats by $5.06M.
May 8, 2014, 8:20 AM
- Taminco (TAM): Q1 EPS of $0.15 misses by $0.04.
- Revenue of $319M (+3% Y/Y) misses by $19.16M.
Feb. 25, 2014, 7:38 AM
- Taminco Corporation (TAM): Q4 adj. EBITDA of$57M
- Revenue of $283M (+8.4% Y/Y) misses by $1.3M.
Jan. 27, 2014, 6:07 PM
- In addition to missing FQ2 estimates, Seagate (STX) has guided on its CC for FQ3 revenue of "at least" $3.4B; that compares unfavorably with a consensus of $3.46B.
- Seagate estimates the total addressable market (TAM) for hard drives stood at 142M (same as Western Digital) in the December quarter, up by 2M Q/Q and 6M Y/Y. The company estimates its share was 40%, flat Q/Q but down from 43% a year ago.
- FQ2 gross margin was 28%, flat Q/Q and up 100 bps Y/Y. $1.5B was spent on buybacks, thanks to the Samsung deal.
- Enterprise shipments (higher-margin) +7% to 7.8M, desktops -12% to 19.2M, notebooks -2% to 16.9M, consumer electronics +20% to 6.7M, branded drives (also higher-margin) +3% to 6.2M.
- Western Digital (WDC) is ticking lower in sympathy with Seagate. The shoe was on the other foot last week.
- Seagate's earnings slides
Dec. 23, 2013, 7:50 AM
- Taminco (TAM) agrees to acquire the formic acid business of Finland's Kemira (KMRSF) for €140M ($191M).
- TAM, which makes ingredients for crop protection products and animal feeds, says the deal will help it add new product lines; formic acid's uses include the preservation of animal feed and de-icing airport runways.
Dec. 12, 2013, 9:11 AM
Nov. 7, 2013, 12:44 PM
- Taminco (TAM): Q3 EPS of $0.09.
- Revenue of $302M (+6% Y/Y). (PR)
Oct. 18, 2013, 9:15 AM
Aug. 13, 2013, 6:25 AM
- Taminco (TAM): Q2 EPS of -$0.21.
- Revenue of $305M misses by $13.56M. (PR)
May 29, 2013, 10:39 AM
Taminco (TAM -0.1%) slips this morning after JPMorgan initiated the shares with a Neutral rating. The firm says that the company has stable margins, and over time will be able to expand at rates above its peers. However, the company has significant financial leverage, at around 60% net debt to total capital versus its peers, and assuming a FY14 estimated EV/EBITDA multiple of 7.0x, the stock appears fairly valued at its current price.| May 29, 2013, 10:39 AM