Double Digits Earnings Growth Returns

From David Wilson, Bloomberg News: Double-digit earnings growth is back for the S&P 500. The index’s companies are headed for a first-quarter gain of 10.1 percent, according to data compiled by Bloomberg from results and analysts’ projections. The rate accelerated last week by 0.4 percentage point and crossed the 10 percent threshold for the first… Read More The post Double Digits Earnings Growth Returns appeared first on The Big Picture.

Tech Today: Qualcomm Warns, Downgrading Amazon, Debating WDC

Here are some things going on today in your world of tech: Shares of Hadoop software vendor Cloudera (CLDR) are set to open for their first day of trading any moment now, after the company priced the deal at $15, above a prior range of $12 to $14. Shares of Qualcomm (QCOM) are down $1.69, or 3%, at $51.52, after the company this morning slashed half a billion dollars from its outlook for this quarter, saying Apple (AAPL) continues to interfere with royalty payments the company is owed, and will continue to do so during the legal dispute between the two. Speaking of litigation, chip equipment maker ASML Holding NV (ASML) fired its counter-shot at Japan’s Nikon (7731JP), which filed suit against ASML on Monday, and against ASML's supplier, Germany’s Carl Zeiss SMT GmbH, for infringing on Continue reading "Tech Today: Qualcomm Warns, Downgrading Amazon, Debating WDC"

Western: Wells Cuts to Hold; Every Quarter Closer to NAND’s Peak

Shares of hard disk drive and memory chip maker Western Digital (WDC) are up $7.69, or almost 9%, at $93.40, in early trading, after it reported yesterday afternoon fiscal Q3 revenue and profit that topped analysts’ expectations, and recovered from early losses, after forecasting this quarter higher as well. Interestingly, reviews are going in opposite directions, with Morgan Stanley’s Katy Huberty raising her rating on the shares to Overweight from Equal Weight, while Wells Fargo’s Maynard Um cut his rating to Market Perform from Outperform. Um keeps his “valuation range” on the shares of $90 to $100, and writes that he is “impressed” with the company’s “execution” and its outlook for $12 per share in earnings. But upside in the stock is limited because "multiple expansion will be challenging as every quarter that passes is one closer” to a peak in the payoff from NAND flash chips.

Microsoft Sees FYQ4 Revenue Below Consensus; Surface Weighed Down Q3

Following a report this evening etter-than-expected FYQ3 EPS from Microsoft (MSFT) this afternoon, the company offered a forecast for this quarter’s revenue below the average estimate on the Street. Microsoft shares continued to be weak following the forecast, in late trading, down 27 cents, or 0.4%, at $68.08. For its “productivity” segment, the company expects revenue of $8.2 billion to $8.4 billion. For “Intelligent Cloud” it sees $7.2 billion to $7.4 billion. For “More Personal Computing,” it sees $8.4 billion to $8.7 billion. Add those up and you have $23.8 billion to $24.5 billion. That is below consensus for $24.5 billion. Microsoft’s head of IR, Zack Moxcey, was kind enough to take a few minutes to talk with me by phone this evening following the report but before the conference call and forecast. In the Q3 Continue reading "Microsoft Sees FYQ4 Revenue Below Consensus; Surface Weighed Down Q3"

Synaptics Jumps 8%: CEO Bergman Upbeat on Sensor Integration

Shares of Synaptics (SYNA) are up $3.13, or almost 6%, at $56, and at one point rose over 8%, after the company this afternoon reported fiscal Q3 revenue and profit that topped analysts’ expectations, and forecast this quarter’s revenue in line with consensus. CEO Rick Bergman was kind enough to talk with me by phone following the report. Revenue in the three months ended in March rose 10%, year over year, to $442 million, yielding EPS of $1.27. Analysts had been modeling $430 million in revenue and $1.20 per share in earnings. Revenue from the company’s mobile products was down 2% from the prior quarter, but up 10% from the prior-year quarter. From from personal computer-related products dropped 17% from the prior quarter and rose 10% from the prior-year period. For the current quarter, the company sees revenue of “approximately $1.7billion,” versus consensus Continue reading "Synaptics Jumps 8%: CEO Bergman Upbeat on Sensor Integration"

Skyworks Slips Despite FYQ2 Beat; ‘Solid’ Report, Says Drexel Hamilton

Shares of wireless chip vendor Skyworks Solutions (SWKS) are down $2.20, or 2%, at $102, in late trading, recovering from an earlier 6% drop, despite beating fiscal Q2 revenue and profit expectations this afternoon, and also forecasting this quarter’s results higher. Revenue in the three months ended in March rose 10%, year over year, to $851.7 million, yielding EPS of $1.45. That was better than consensus for $840 million and $1.40. For this quarter, the company sees revenue of “approximately $890 million,” above consensus for $869 million, and EPS of “approximately $1.52, above consensus of $1.49 per share. Drexel Hamiton’s Cody Acree tonight reiterates a Buy rating on the shares, and a $105 price target, writing that it was a “solid” quarter, and “much better-than-expected” outlook.