After Hours Summary: GFIG +27.8%, LOGM +12.5%, GPRE +8.7%, VPRT -14.2%, POWI -12.7%, TWTR -11.1% following earnings.guidance
After Hours Gainers: Companies trading higher in after hours in reaction to earnings: GFIG +27.8%, LOGM +12.5%, GPRE +8.7%, RFMD +5.8%, AZPN +5.6%, MWA +5.2%, ANIK +3.4%, NUVA +3.2%, TRN +3.1%, RNG +2.6%, GMED +2.2%, CVTI +1.7%, HURN +1.5%, SYX +1.4%, DLB +1.4%, CMRE +1.2%, CNQR +1.1%, EZPW +1.1%, KTCC +0.9%, EIX +0.5%, HF +0.5%, BXMT +0.4%, GNW +0.4%, NFX +0.3%, PLT +0.1%
Companies trading higher in after hours in reaction to news: - STRP +20.8% (co disclosed its subsidiary entered into a confidential license agreement with Google), - OPTT +9.6% (FiveMore Special Situations Fund discloses 6.72% stake in SC 13D filing), - TRIV +8.3% (announced FDA-approved expansion of Ovation and Ovation Prime indication statements), - NUVA +3..2% (announced Michael Lambert intends to retire from his role as CFO later this year and that Quentin Blackford, its current Executive Vice President of Finance, Accounting and Investor Relations, will succeed Mr. Lambert; co also reported earnings), - LRCX +2.6% (initiated quarterly dividend of $0.18 per share; announced $850 mln share repurchase authorization), - NVTL +1.7% (announced agreement with investor group, under which Dr. Richard Karp and Alex Mashinsky have been immediately appointed to the co's board of directors), - FHN +1.0% (reached settlement with FHFA; lawsuit begun in 2011 will be dismissed against all defendants)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings: VPRT -14.2%, POWI -12.7%, TWTR -11.1%, FEIC -9.4%, TTS -7.1%, USNA -7%, NDLS -6.1%, ESRX -5.6%, CTIC -5.2%, PNRA -5.1%, EBAY -4.5%, NCR -4.1%, NANO -4.1%, ACE -2.3%, AUY -2.2%, DWA -1.4%, TRLA -1.3%, STX -0.9%, XCO -0.8%, RVBD -0.8%, CRAY -0.7%, VNR -0.5%, WSH -0.5%, AMC -0.2%, OHI -0.2%, BSAC -0.2%, REXX -0.1%, SWI -0.1%, ACMP -0.1%
Companies trading lower in after hours in reaction to news: - HDS -3.4% (announced secondary offering of ~30 mln shares of the co's common stock by selling stockholders), - AUY -2.4% (announced results of the Cerro Moro Feasibility Study: Annual production of 150,000 gold equivalent ounces for the life of mine; co also reported earnings), - SSW -0.8% (filed for 3,633,340 Class A common share offering by selling securityholders)
eBay beats by $0.03, reports revs in-line; guides Q2 EPS below consensus, revs in-line; reaffirms FY14 EPS guidance, revs guidance
Reports Q1 (Mar) earnings of $0.70 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.67; revenues rose 13.7% year/year to $4.26 bln vs the $4.22 bln consensus.
PayPal net total payment volume (TPV) grew 27% with Merchant Services volume up 32% and on-eBay volume up 15%. Revenue grew to $1.8 billion. PayPal gained 5.8 million new active registered accounts to end the quarter at 148 million, up 16%.
eBay Marketplaces gross merchandise volume (GMV) grew 12%, with the U.S. up 11% and International up 13%. Revenue grew to $2.2 billion. Marketplaces gained 4.7 million new buyers to end the quarter with 145 million active buyers, up 14%.
Co issues mixed guidance for Q2, sees EPS of $0.67-0.69, excluding non-recurring items, vs. $0.70 Capital IQ Consensus Estimate; sees Q2 revs of $4.325-4.425 bln vs. $4.39 bln Capital IQ Consensus Estimate.
Co reaffirms guidance for FY14, sees EPS of $2.95-3.00, excluding non-recurring items, vs. $2.99 Capital IQ Consensus Estimate; sees FY14 revs of $18.0-18.5 bln vs. $18.25 bln Capital IQ Consensus Estimate.
Closing Market Summary: Nasdaq Leads Stocks Higher
The stock market rallied on Tuesday, with the S&P 500 (+0.5%) posting its second consecutive gain as eight sectors ended in the green. Momentum names, meanwhile, rebounded from yesterday's relative weakness, which allowed the Nasdaq Composite (+0.7%) to finish ahead of the benchmark index.
Equity indices began the session on an upbeat note, slowly building on their early gains throughout the afternoon. The energy sector (+0.4%) powered the opening advance thanks to better than expected earnings from BP (BP 50.29, +1.25) and Valero Energy (VLO 56.84, -1.13). BP surged 2.6%, while Valero displayed early strength, but spent the session in a steady retreat from its opening high, which mirrored the price action of the entire sector.
The solid early gain in the energy sector kept the S&P 500 in the green during the first hour of action, while the Nasdaq briefly dipped into the red. The short-lived weakness in the tech-heavy index resulted from the underperformance of top-weighted components, but those names were able to rebound. For its part, the broader technology sector advanced 0.7%, finishing only behind the financial sector (+1.0%).
The economically-sensitive financial sector drew strength from a slew of top components, with Bank of America (BAC 15.24, +0.29) leading the charge. The stock gained 1.9% following yesterday's 6.3% loss. International financials had an even better showing, with Deutsche Bank (DB 44.45, +0.88) gaining 2.0% after reporting above-consensus results. Also of note, Standard & Poor's lowered the ratings of 15 European banks—including Deutsche Bank—to ‘Negative' from ‘Stable,' but the stock saw little reaction to the news.
In addition to receiving support from two of its largest sectors, the market was also underpinned by the health care space (+0.6%), where Dow component Merck (MRK 58.72, +2.04) rallied 3.6% in reaction to its bottom-line beat. Biotechnology, meanwhile, played along today as the iShares Nasdaq Biotechnology ETF (IBB 229.09, +6.03) gained 2.7%.
On the downside, consumer staples (-0.4%) and utilities (-0.4%) posted modest losses, with the utilities sector narrowing its 2014 gain to 13.4%.
Treasuries finished the session with slim gains, punctuating their session-long retreat from overnight lows. As a result, the benchmark 10-yr yield slipped one basis point to 2.69%.
Participation was essentially in line with average as 724 million shares changed hands at the NYSE floor.
Today's economic data featured two reports:
The Conference Board's Consumer Confidence Index fell to 82.3 in April from an upwardly revised 83.9 (from 82.3) in March. The Briefing.com consensus pegged the Consumer Confidence Index at 83.5. The Present Situation Index fell to 78.3 in April from 82.5 in March. The Expectations Index increased slightly, from 84.8 in March to 84.9 in April. The overall decline in confidence was a little unusual. Typically, confidence levels trend with employment conditions, equity prices, gasoline costs, and media reports. Extremely low layoff levels coupled with a generally rising stock market in April resulted in a large increase in the University of Michigan Consumer Sentiment Index. Those factors were expected, yet they failed to push the Consumer Confidence Index higher.
The Case-Shiller 20-city Home Price Index for February rose 13.2% while a 13.0% increase had been expected by the Briefing.com consensus. This follows the previous month's increase of 13.2%.
Tomorrow, the weekly MBA Mortgage Applications Index will be released at 7:00 ET and the ADP Employment Change for April (Briefing.com consensus 215,000) will be announced at 8:15 ET. The advance reading of Q1 GDP (Briefing.com consensus 1.0%) will be released at 8:30 ET, while the Chicago PMI report (consensus 56.5) for April will cross the wires at 9:45 ET. Finally, the Federal Open Market Committee will release its latest policy directive at 14:00 ET.
S&P 500 +1.6% YTD
Dow Jones Industrial Average -0.3% YTD
Nasdaq Composite -1.8% YTD
Russell 2000 -3.6% YTD
Twitter beats by $0.03, beats on revs; guides Q2 revs in-line; guides FY14 revs in-line
Reports Q1 (Mar) net of breakeven, $0.03 better than the Capital IQ Consensus Estimate of ($0.03); revenues rose 119.7% year/year to $250.5 mln vs the $241.71 mln consensus.
Revenues
Ad revs $226 mln, up 125% y/y, Q4 ad revs $220 mln
Mobile ad revenue approx 80% of ad revs
International revenue $70 mln, up 183% y/y
TWTR reports Q1 Average Monthly Active Users were 255 mln; Street expectations were 255 mln, Q4 was 241 mln. Mobile MAUs reached 198 mln, an increase of 31% y/y, represents 78% of total MAU
Timeline views reached 157 bln, up 15% y/y, 148 bln in Q4
Advertising Revenue per thousand views was $1.44, up 96% y/y; $1.49 in Q4
Co issues in-line guidance for Q2, sees Q2 revs of $270-280 mln vs. $273.21 mln Capital IQ Consensus Estimate.
Adjusted EBITDA expected to be between $25-30 mln
Co issues in-line guidance for FY14, sees FY14 revs of $1.200-1.250 bln vs. $1.24 bln Capital IQ Consensus Estimate; Prior guidance $1.150-1.200 bln
Adjusted EBITDA expected to be between $180-225 mln, prior guidance $150-180 mln
CapEx expected to be in the range of $330-390 mln, in line with prior guidance
China Academy of Social Sciences (CASS) sees China 2014 GDP falling to 7.4% from 7.7% in 2013, below 7.5% target - Shanghai Daily
- Says Chinas expansion will continue to be powered by investment while the growth momentum will be stable in the near to middle term, stating: "Curtailed by excessive production capacity and the risk of a collapse of local government debt, Chinas fixed-asset investment growth will slow."
Russia Pres Putin: Have no need to implement new sanctions against the Western nations in retaliation for new sanctions against Russia officials
- highlights that Russia will reconsider the participation of western companies in its energy projects assuming sanctions continue