Fortinet Inc. Guides Q1 EPS approx $0.08 v $0.12e, R$155-159M v $155Me - slides- Guides Q1 op margin approx 12%; billings $168-173M
Cabot beats by $0.15, beats on revs
Reports Q1 (Dec) earnings of $0.86 per share, $0.15 better than the Capital IQ Consensus Estimate of $0.71; revenues rose 9.6% year/year to $899 mln vs the $873.5 mln consensus.
2014 Outlook
"We expect tire and automotive industry demand to improve in 2014 along with infrastructure-related spending, albeit at a modest pace. In our Specialty Fluids business, the longer-term pipeline of projects remains strong, however, in the coming months, we expect to see a lower level of activity as compared to recent quarters. In the Purification Solutions segment, we are focused on improving our operational performance to restore profitability and preparing for growth in the North American market. Overall, we remain focused on executing our strategy and we are confident in our ability to deliver earnings growth to our shareholders."
Fortinet beats by $0.01, beats on revs
Reports Q4 (Dec) earnings of $0.15 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.14; revenues rose 17.3% year/year to $177.4 mln vs the $166 mln consensus.
Highlights for the qtr:
Billings of $209.8 million, up 20% year over year
Cash flow from operations of $46.7 million
Free cash flow of $39.5 million
Cash, cash equivalents and investments of $843.0 mln with no debt
Facebook beats by $0.04, beats on revs
* Reports Q4 (Dec) earnings of $0.31 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.27; revenues rose 63.1% year/year to $2.59 bln vs the $2.35 bln consensus.
* Daily active users (DAUs) were 757 million on average for December 2013, an increase of 22% year-over-year. Mobile * DAUs were 556 million on average for December 2013, an increase of 49% year-over-year.
* Monthly active users (MAUs) were 1.23 billion as of December 31, 2013, an increase of 16% year-over-year. Mobile MAUs were 945 million as of December 31, 2013, an increase of 39% year-over-year.
* Revenue from advertising was $2.34 billion, a 76% increase from the same quarter last year. Mobile advertising revenue represented approximately 53% of advertising revenue for the fourth quarter of 2013, up from approximately 23% of advertising revenue in the fourth quarter of 2012.
* GAAP costs and expenses for the fourth quarter of 2013 were $1.45 billion, an increase of 37% from the fourth quarter of 2012, driven primarily by increased headcount and infrastructure expense.
* Operating margin: GAAP operating margin was 44% for the fourth quarter of 2013, compared to 33% in the fourth quarter of 2012. Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 56% for the fourth quarter of 2013, compared to 46% for the fourth quarter of 2012.
* Capital expenditures for the fourth quarter of 2013 were $483 million.
* Cash and marketable securities were $11.45 billion at the end of 2013.
Fortune Brands Home & Security reports EPS in-line, revs in-line; guides FY14 EPS in-line, revs in-line
Reports Q4 (Dec) earnings of $0.38 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.38; revenues rose 16.0% year/year to $1.1 bln vs the $1.1 bln consensus.
Co issues in-line guidance for FY14 (Dec), sees EPS of $1.91 to $2.01 vs. $1.98 Capital IQ Consensus Estimate; expects full-year 2014 net sales to increase 11 to 13 percent, equates to revs of ~$4.66-4.75 bln vs. $4.68 bln Capital IQ Consensus Estimate.
The Company expects to generate $250+ million in free cash flow in 2014, net of capital expenditures of $130 to $140 million, as it begins to invest in incremental capacity and infrastructure to support multi-year growth.
The Company's 2014 annual outlook is based on a home products market growth assumption of 10 to 11 percent.
Symantec beats by $0.09, beats on revs; guides Q4 EPS in-line, revs in-line
Reports Q3 (Dec) non-GAAP earnings of $0.51 per share, $0.09 better than the Capital IQ Consensus Estimate of $0.42; revenues fell 4.8% year/year to $1.71 bln vs the $1.65 bln consensus.
Co issues in-line guidance for Q4, sees EPS of $0.40-0.42 vs. $0.41 Capital IQ Consensus Estimate; sees Q4 revs of $1.615-1.655 bln vs. $1.65 bln Capital IQ Consensus Estimate.
Facebook - - Earnings Mover pops +6% up to 57.50 afterhours
Facebook Reports Q4 $0.31 v $0.27e, R$2.59B v $2.36Be
- Monthly active users (MAUs) were 1.23 billion as of December 31, 2013, an increase of 16% year-over-year.
- Daily active users (DAUs) were 757 million on average for December 2013, an increase of 22% year-over-year.
- Mobile MAUs were 945 million as of December 31, 2013, an increase of 39% year-over-year.
- Payments and fees rev $241M v $218M q/q
- Advertising rev $2.34B, +76% y/y
- Mobile advertising rev was 53% of ad rev
- CEO: "We're looking forward to our next decade and to helping connect the rest of the world."
Closing Market Summary: Stocks Slump as Fed Tapers Once Again
Equities ended broadly lower with small caps leading the weakness. The Russell 2000 lost 1.5% while the S&P 500 fell 1.0% as nine of ten sectors finished in the red. Although today's session generated plenty of excitement, some of the events that played out over the course of the day were set in motion yesterday.
Shortly after yesterday's session on Wall Street ended, the Central Bank of Turkey shocked the market with a 445-basis point hike to 12.00% in an attempt to halt the rapidly weakening lira. The move worked...for 15 hours. The lira strengthened after the announcement, but spent the remainder of the overnight session in a steady retreat, giving up all of its gains.
Interestingly, yesterday's news of out of Turkey also gave a boost to U.S. equity futures while weighing on the yen. The moves did not hold as futures spent the night in a steady retreat while the yen rallied.
The Japanese currency maintained its strength throughout the session, posing a headwind to equities. Dollar/yen spent the entire trading day just above the 102.00 level while yen futures gained 0.6%, extending their 2014 advance to 3.0%.
Meanwhile, stocks hovered near their opening levels in the morning, but fell to fresh lows after the Federal Open Market Committee released its latest policy statement, which called for another $10 billion reduction to monthly asset purchases. Strikingly, just like losses observed earlier in the day, the post-FOMC retreat was accompanied by more yen strength.
The materials sector (+0.5%) withstood the broad-based weakness with help from Dow Chemical (DOW 44.77, +1.71), which rallied 4.1% after beating on earnings. Miners also outperformed as the Market Vectors Gold Miners ETF (GDX 23.86, +0.46) gained 2.0%. On a related note, gold futures advanced 0.9% to $1262.00 per troy ounce.
Elsewhere, the other commodity-related sector, energy, outperformed with a loss of 0.3%. The sector finished well ahead of the broader market thanks to bottom-line beats reported by Marathon Petroleum (MPC 86.85, +3.68) and Valero (VLO 51.50, +1.30).
Other cyclical groups were mixed with respect to the broader market as technology (-0.9%) outperformed while consumer discretionary (-1.7%), financials (-1.1%), and industrials (-1.0%) lagged.
On the countercyclical side, health care (-0.9%), telecom services (-0.4%), and utilities (-0.1%) outperformed while consumer staples (-1.8%) ended behind the remaining sectors.
Treasuries ended on their highs with the 10-yr yield down seven basis points at 2.69%.
Tomorrow, weekly initial claims and the advance fourth quarter GDP report will be released at 8:30 ET while the December Pending Home Sales report will cross the wires at 10:00 ET.
Nasdaq Composite -3.0% YTD
Russell 2000 -3.5% YTD
S&P 500 -4.0% YTD
Dow Jones Industrial Average -5.1% YTD
Flextronics beats by $0.03, beats on revs; guides Q4 EPS in-line, revs in-line; Announces workforce reduction
Reports Q3 (Dec) earnings of $0.26 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.23; revenues rose 17.3% year/year to $7.18 bln vs the $6.7 bln consensus.
Adjusted operating income increased $28 million or 18% sequentially to $187 million. Free cash flow generation was $614 mln.
Workforce Reduction: During the fourth quarter of fiscal 2014 the company plans to reduce its workforce and initiate other cost reduction activities. As a result, the company expects to recognize approximately $30-$35 million in pre-tax cash charges comprised primarily of employee severance and benefit costs. These cost reduction activities will yield potential annualized savings of approximately $60 million principally to selling, general and administrative expenses through reduced employee expenses and lower operating costs.
Guidance: Co issues in-line guidance for Q4, sees EPS of $0.18-$0.22 vs. $0.19 Capital IQ Consensus Estimate; sees Q4 revs of $5.9-$6.3 bln vs. $5.99 bln Capital IQ Consensus Estimate.
Citigroup Inc Update: Citigroup downgraded at Rafferty Capital to Sell from Buy, price target cut to $44.50 from $57
- Firm no longer believes that Citigroups book value can be trusted.
- Richard Bove notes issues arising in a number of foreign nations suggest that loan quality at Citigroup may erode. The bank was the only one he follows that showed weaker loan quality in the fourth quarter and believes the problems here may accelerate. >