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  • Thursday April 24, 3:33 PM ET
    • Lorillard (LO): Q1 EPS of $0.69 misses by $0.03.
    • Revenue of $1.59B beats by $0.4B.
    • Press Release
  • Thursday April 24, 3:25 PM ET
    • In-service occupancy of 92.4% is down from 92.9% at the end of 2013, up from 89.6% a year ago. Same property cash basis NOI up 2.3%. Rental rates up 3.1% on a cash basis. Leasing costs of $1.97 per foot.
    • The company lowers full-year 2014 FFO per share guidance by $0.02, with the range now $1.09-$1.19. Average quarter-end in-service occupancy rate is cut 0.5% on both ends, now at 92.0-93.0%.
    • CEO Bruce Duncan: "Prospective tenants are active across our markets seeking facilities to grow their businesses or enhance supply chain efficiencies.  We are positioned to grow cash flow as we increase occupancy in our existing portfolio and lease-up our new investments."
    • Keycorp downgrades First Industrial (FR -2.1%) to Hold from Buy.
    • Previously: First Industrial Realty Trust FFO misses by $0.03, beats on revenue
  • Thursday April 24, 2:48 PM ET
    • Helmerich & Payne (HP -6%) shares are sharply lower after Q1 earnings came in lower than expected and the company’s international land operations business unit posted disappointing results.
    • Operating revenues in U.S. land operations totaled $742M (83% of total revenue), up 8.2% Y/Y; average rig revenue per operating day was ~$28K, down 0.8%, while average rig margin per day fell 1.4% to $14,957.
    • International land operations recorded revenues of $85.5M, down 9.1% Y/Y; average daily rig revenue was ~$37K, down 8.8%, while rig margin per day was $10,918, down 1.2%.
    • Signed multi-year deals with five E&P companies to build and operate nine additional FlexRigs to drill unconventional U.S. resource plays, bringing the total number of newbuild FlexRig commitments announced in FY 2014 to 44.
  • Thursday April 24, 2:29 PM ET
    • Cabot Oil & Gas (COG +5.2%) trades sharply higher, overcoming Q1 results that trailed analyst expectations, as earnings doubled and revenues rose 36% Y/Y to $510M.
    • Q1 total production grew 34% Y/Y to 119.9B cfe, driven by higher realized natural gas prices.
    • Total per unit costs fell 19% Y/Y to $2.66/Mcfe from $3.29/Mcfe; all operating expense categories fell on a per unit basis except for exploration expense, which was flat, and transportation and gathering, which rose due to slightly higher transportation rates and new transportation agreements in the Marcellus.
    • Tightened 2014 production guidance range to 530B-585B cfe from 519B-598B cfe, and 20%-30% output growth in 2015; raises its capital budget to $1.375B-$1.475B amid an increase in rig count and higher activity in the Eagle Ford.
  • Thursday April 24, 1:42 PM ET
    • Lam Research (LRCX +11%) beat FQ3 estimates and guided on its CC (transcript) for FQ4 revenue of $1.19B-$1.29B and EPS of $1.14-$1.28, above a consensus of $1.16B and $1.09. Ultratech (UTEK +3.6%) missed Q1 estimates, but has reiterated guidance for 25%-30% 2014 revenue growth (above a 23.5% consensus).
    • Just as importantly for the industry, Lam has forecast the global wafer fab equipment market will be worth $32B in 2014 - $1B more than what Gartner previously forecast.
    • Lam also mentioned it has "seen some strengthening" in DRAM equipment orders - clients have been conservative with their capex following industry consolidation - and a "sustained commitment" among logic/foundry clients (Intel and TSMC?) to advanced processes (20nm, 3D transistors, etc.). However, there have been "some slight delays" in 3D NAND flash investments.
    • Chip equipment peers are also up: AMAT +1.4%. KLAC +1.5%. ASML +2.1%. ACLS +1.6%. CAMT +5.3%. RTEC +1.5%. PLAB +3.4%. One notable exception is Teradyne (TER -4.1%), which provided light Q2 EPS guidance - $0.36-$0.43 vs. a consensus of $0.49 - to go with a Q1 beat. Revenue guidance is in-line.
    • The group sold off last week after ASML offered soft guidance and a cautious 2H outlook. KLA reports after the bell.
  • Thursday April 24, 12:42 PM ET
    • Nucor's (NUE -1.2%) Q1 earnings rose 31% but missed estimates, and the steelmaker forecast only "some improvement" in the current quarter when analysts had expected to see significant growth.
    • Morgan Stanley analyst Evan Kurtz says NUE's lukewarm Q2 forecast could point to worse than expected earnings, while noting that the company tends to give conservative guidance; analysts, on average, have forecast earnings of $0.65/share for Q2.
    • Tons shipped to outside customers rose 8% Y/Y in Q1, and the average sales price was up 3%, but average scrap and scrap substitute costs rose 5%.
  • Thursday April 24, 12:26 PM ET
    • In addition to beating Q1 estimates, Infinera (INFN +5.9%) guided on its CC (transcript) for Q2 revenue of $160M-$170M and EPS of $0.02-$0.06 vs. a consensus of $156.3M and $0.05. As is its custom, rival Ciena (CIEN +5.8%) is following Infinera higher.
    • Thanks to a favorable mix, Q1 gross margin was 41.8%, +40 bps Q/Q and +590 bps Y/Y, and above guidance of 40%. Infinera only forecasts a GM of 39%-41% for Q2 due to the margin pressure caused by new large-footprint deployments, but still expects a low-40s GM for the full year and future margin gains as it fulfills capacity expansion orders for major deployments.
    • Strong North American demand allowed revenue to grow 3% Q/Q in seasonally weak Q1. Infinera had two 10%+ customers - a cable MSO and a tier-1 North American carrier, and added one more client for its dense/high-capacity DTN-X optical transmission platform, raising the total to 42.
    • Not surprisingly, a positive outlook was provided for the 100G optical market, where the company and Ciena have leading positions. Infinera says it's confident it can outgrow the broader 100G market in 2014.
  • Thursday April 24, 12:15 PM ET
    • Oceaneering (OII +3.4%) moves higher after Q1 earnings and revenues beat expectations on the back of strength in its subsea products division, which saw higher demand for undersea hardware and the umbilicals line with an $894M end-of-quarter backlog.
    • OII added 14 new ROV systems to its operations during Q1, and increased utilization to 86% from 83%.
    • OII expects all of its business segments to continue growth and post higher income in 2014 than in 2013; sees Q2 EPS of $0.97-$1.01 vs. analyst consensus estimate of $1.04, and FY 2014 EPS of 3.90-$4.10 vs. $4.03 consensus.
  • Thursday April 24, 12:11 PM ET
    • "While title insurance operations remained profitable, a transitory real estate and mortgage market downturn halted the fast-paced earnings progress of the past three years," says Old Republic (ORI -3.6%), leading off its Q1 earnings report.
    • General insurance net premiums earned of $663.2M up 9.1% Y/Y. Net investment income of $66.1M up 6.1%. Benefit and claim costs of $500.9M up 12.2%. Pretax operating income of $64.6M falls 6.2%.
    • Title insurance net premiums earned of $393.8M falls 14.5% Y/Y. Net investment income of $7.1M up 9%. Pretax operating income of $4.7M falls 77.8%.
    • Mortgage insurance and consumer credit run-off business post pretax operating income of $19.5M vs. a $20.2M loss one year ago.
    • Source: Press Release
    • Previously: Old Republic International EPS in-line, misses on revenue
    1 Comment
  • Thursday April 24, 11:58 AM ET
    • Entergy's (ETR +0.1%) Q1 earnings more than doubled and revenues rose 23% Y/Y to $3.2B, but shares are flat as investors attribute the strength to significantly higher wholesale electricity prices resulting from cold winter weather and limitations of the pipeline infrastructure in the Northeast.
    • ETR says that even excluding weather impacts, sales growth was positive for residential, commercial and industrial customer classes.
    • Reaffirms guidance for FY 2014, seeing operational EPS of $5.55-$6.75 vs. $5.84 analyst consensus estimate.
  • Thursday April 24, 11:44 AM ET
    • Cameron (CAM +1.5%) shares are higher after Q1 earnings beat estimates, although an 18% rise in revenues was offset by 20% higher expenses.
    • Total Q1 orders were $2.5B, down Q/Q and Y/Y but the second-best Q1 results in CAM's history; with a more robust outlook for North America and several deepwater projects expected to move forward, CAM thinks orders could exceed 2013 levels.
    • Backlog at the end of Q1 was $11.3B, +13% Y/Y but down slightly from its historical high of $11.4B at the end of 2013 reflecting the cancellation of the STX deepwater rig order during the quarter.
    • Issues in-line guidance for Q2, seeing EPS of $0.84-$0.89 vs. $0.88 analyst consensus estimate; issues in-line guidance for FY 2014, seeing EPS of $3.80-$4.10 vs. prior guidance of $3.60-$4.00 and $3.82 consensus.
  • Thursday April 24, 11:27 AM ET
    • The Gorman-Rupp Company (GRC): Q1 EPS of $0.38 beats by $0.09.
    • Revenue of $110.06M (+19.0% Y/Y) beats by $11.14M.
    • Press Release
  • Thursday April 24, 10:49 AM ET
    • Diamond Offshore (DO +3.4%) moves higher after Q1 earnings and revenues came in ahead of Street estimates, and last night's fleet status report outlined short-term contracts on four rigs.
    • Q1 revenues fell to $709M from $729M, while expenses rose to $523M from $516M.
    • Utilization rates for DO's ultra-deepwater rigs fell to 66% in Q1 from 91% in Q4 2013, but dayrates for ultra-deepwater rigs rose nearly 11% Q/Q to $387K while dayrates for deepwater rigs rose ~4% to $418K.
    • DO also said it would pay a special quarterly cash dividend of $0.75/share on top of its regular dividend of $0.13; repurchased 1.87M shares during Q1 at an average price of $46.32.
    • While falling rig demand and utilization is likely to affect the entire sector, analysts expect DO to fare worse than rivals, given the age of its fleet.
  • Thursday April 24, 10:40 AM ET
    • Apple (AAPL +8%) has received 5 PT hikes to go with one upgrade (from CLSA) following its iPhone-driven FQ2 beat, dividend/buyback increases, and split announcement.
    • Jefferies (Buy) isn't crazy about FQ3 guidance (it thinks FQ2 demand pull-in is a factor), but is pleased with the pickup in iPhone sales growth and recommends buying shares "ahead of what we believe will be a successful iPhone 6 launch."
    • Canaccord (Buy): "While our survey work indicates iPhone will likely lose share over the next several months to refreshed Android products, we believe Apple will win back meaningful high-end market share during [2H14]."
    • Nomura (Neutral) is more cautious, noting growth was just 0.4% Y/Y outside of China and Japan. But it also sees "little risk of a material negative disappointment in the coming months."
    • Also: 1) Ahead of Angela Ahrendts' arrival next week, Tim Cook suggests Apple plans to triple its Chinese store count over the next two years. 2) Many observers have pointed out Apple's split could lead it to join the Dow (DIA), given the index is price-weighted rather than valuation-weighted.
    • More on Apple's FQ2. CC transcript.
  • Thursday April 24, 10:25 AM ET
    • PetroChina (PTR +0.1%) says its Q1 net profit fell 4.9% Y/Y to 34.2B yuan ($5.5B) from 36B yuan due mainly to rising costs and a decline in international crude prices.
    • Revenue fell 2% to 529B yuan because of a lower contribution from PTR's upstream E&P operations; crude oil output rose 2.3%, although the average selling price for PTR's crude oil fell 2.9% during the period.
    • Operating losses from the refining and chemical businesses narrowed to 2.2B yuan from 4.7B yuan, helped by the Chinese government's authorization in September for an increase in refined product prices.
  • Thursday April 24, 10:23 AM ET
    • Raytheon (RTN) net profit rises to $596M from $488M a year earlier, helped by a tax credit and favorable pension adjustments.
    • Bookings rose to $4.3B from $3.6B and are forecast to exceed $7B in Q2.
    • International demand remains strong, and the company expects foreign orders to account for nearly 30% of sales and almost 40% of bookings in 2014.
    • Operating margin increased to 14.3% from 12%.
    • Sales and operating income fell at three out of Raytheon's four divisions, although the intelligence, information & services unit enjoyed a 1% rise in operating profit despite a 5% fall in sales.
    • Raytheon maintained its FY guidance for EPS of $5.76-5.91 vs consensus of $6.94 and revenue of $22.5-23B vs $22.82B.
    • Shares -5.6%. (PR)
    • Previous
  • Thursday April 24, 10:10 AM ET
    • Verizon (VZ -2%) had only 539K wireless postpaid net adds in Q1 (549K total), down from 677K a year ago (720K total) and for once below AT&T's quarterly postpaid figure of 625K. Also, retail churn rose 7 bps Y/Y to 1.37%, and retail postpaid churn 6 bps to 1.07%.
    • Those figures raise the question of whether Verizon's commitment to a premium pricing strategy in the face of a T-Mobile-launched price war is impacting subscriber adds.
    • Nonetheless, wireless service revenue grew 7.5% Y/Y, nearly even with Q4's 8% and much better than AT&T's 2.2%. Wireless op. margin rose 210 bps to 35%, and retail postpaid ARPA 6.3% to $159.67. Verizon ended Q1 with 103.3M retail connections (97.3M postpaid).
    • Wireline revenue fell 0.4%, as 4.4% and 6.4% declines in enterprise and wholesale revenue (caused in part by voice weakness) offset a 6.2% increase in consumer retail (driven by 15.5% FiOS growth). Wireline op. margin rose 10 bps to 1.5%.
    • 98K and 57K FiOS Internet and TV subs were respectively added, down from 126K and 96K in Q4. Total broadband connections (FiOS or otherwise) rose 1.5% to 9M.
    • Q1 free cash flow was $3.93B, below net income of $5.99B but above illustrative net income of $3.8B. Verizon is still expecting 4% 2014 revenue and EBITDA growth. Its dividend yield stands at 4.6%.
    • Sprint (S -3.2%) and T-Mobile (TMUS -2%) are following Verizon lower. They fell yesterday in the wake of AT&T's report. Sprint reports on April 29
    • Q1 results, PR,
  • Thursday April 24, 9:43 AM ET
    • Silicom (SILC): Q1 EPS of $0.58 misses by $0.01.
    • Revenue of $19M (+26.4% Y/Y) beats by $0.21M.
    • Press Release
  • Thursday April 24, 9:31 AM ET
  • Thursday April 24, 9:30 AM ET
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