After Hours Summary: OLED +15%, MC +10%, CRUS +8%, FB +4.4%, AAPL +2%, LYFT +1.6% are higher, while WDC -10%, ETSY -8%, TWLO -7%, LNC -5% are lower following earnings/guidanceAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: OLED +15.2%, MC +10%, SFM +9.3%, CRUS +7.7%, UCTT +7.7%, MUSA +7.5%, HABT +7.4%, SPWR +7.1%, NE +6.2%, SKT +6%, LM +5.1% (ticking higher), BOOT +5%, TDOC +4.6%, FB +4.4%, EGHT +4.3%, PS +4%, VAL +3.9% (light volume), DT +3.7%, HUBG +3.2%, QLYS +3.2%, TREE +3.2% (light volume), ZNGA +3.1%, SBUX +3%, VIAV +2.8%, HTGC +2.6%, ELY +2.5%, FORM +2.3%, AAPL +1.9%, LYFT +1.6%
Companies trading higher in after hours in reaction to news: ICL +11% (signs contract for sale of potash to a customer in India), CVET +5% (to join S&P SmallCap 600), BJ +4.6% (to join S&P MidCap 400), CDAY +1.7% (ticking higher; to join S&P MidCap 400), SWKS +0.9% / AVGO +0.9% (following AAPL results), WING +0.9% (ongoing earnings volatility; also CEO interview was on CNBC MadMoney)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: MMSI -33.4%, WDC -10.2% (also CEO, Steve Milligan, to retire), TEX -9.1% (ticking lower), ETSY -7.9%, TTMI -7.7% (light volume), AKS -7.5%, SWI -7% (light volume), TWLO -6.9%, LNC -5%, DDD -4.1%, EXEL -3%, NLY -1.9%, VRTX -1.1%, CREE -1%, KLAC -1%
Companies trading lower in after hours in reaction to news: CROX -5.3% (announces that certain selling stockholders affiliated with Blackstone have commenced a secondary offering of 6,864,545 shares of common stock), TWTR -2% (following comments from CEO Jack Dorsey - company has made decision to "stop all political advertising on Twitter globally"), STX -1.1% (following WDC results)
Notable earnings/guidance movers
- Earnings/guidance gainers: SFM +14.7%, OLED +11.7%, MC +9.6%, PS +7.8%, HABT +7.2%, SPWR +6.9%, MUSA +6.5%, CTSH +5%, TDOC +4.8%, BOOT +4.6%, NUVA +4.6%, EGHT +4.2%, UCTT +4.1%, ZNGA +3.7%, QLYS +3.2%, MANT +3%, VIAV +2.8%, LYFT +2.5%, CNMD +2.3%, SBUX +2.2%, CREE +1.8%, COLM +1.7%, FB +1.5%, AAPL +0.8%
- Earnings/guidance losers: MMSI -31.4%, TWLO -12.4%, WDC -8.5%, SWI -7%, ETSY -6.5%, AKS -6%, DDD -5.3%, CF -2.8%, LNC -2.5%, EXEL -2.2%, MGM -2.2%, BFAM -1.9%, NLY -1.3%
Lyft beats by $0.32, beats on revs; guides Q4 revs above consensus, raises Adj. EBITDA guidance (44.11 +0.43)
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Facebook beats by $0.24, beats on revs (188.25 -1.06)
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Apple beats by $0.20, beats on revs; guides Q1 rev midpoint above consensus
- Reports Q4 (Sep) earnings of $3.03 per share, $0.20 better than the S&P Capital IQ Consensus of $2.83; revenues rose 1.8% year/year to $64.04 bln vs the $62.86 bln S&P Capital IQ Consensus; gross margin of 37.9% vs 37.9% ests and guidance of 37.5-38.5%.
- iPhone revenue -9% to $33.4 bln vs $32.5 bln ests
- Services +18% to $12.5 bln; services gross margin of 64.1% vs 64% ests
- iPad +17% to $4.65 bln;
- Wearables, Home and accessories +54% to $6.5 bln
- Americas rev +7% to $29.3 bln, Europe -3% to $14.95 bln, China -2% to $11.1 bln; Japan -3% to $4.98 bln, APac +7% to $3.66 bln.
- Co issuesupside guidancefor Q1, sees Q1 revs of $85.5-89.5 bln vs. $86.21 bln S&P Capital IQ Consensus; gross margins 37.5-38.5% vs 37.8% ests and 38.0% last year
Reports Q4 $3.03 v $2.84e, Rev $64B v $62.7Be
- Guides Q1 Rev $85.5-89.5B v $86.2Be, gross margin 37.5-38.5%; op-ex $9.6-9.8B; tax rate ~16.5%
- Gross margin 38% v 38% y/y (calculated)
- Services gross margin 64.1% v 61.1% y/y (calculated)
- iPhone Rev $33.4B v $36.8B y/y
- iPad Rev $4.7B v $4.0B y/y
- Services Rev $12.5B v $10.6B y/y
- Greater China Rev $11.1B v $11.4B y/y (v $9.2B q/q)
- Wearables, Home & Accessories ('other') products revenue $6.5B v $4.2B y/y (includes sales of Apple TV, Apple Watch, Beats Electronics, iPod and Apple-branded and third-party accessories)
- CEO: “We concluded a groundbreaking fiscal 2019 with our highest Q4 revenue ever, fueled by accelerating growth from Services,
Wearables and iPad,” said Tim Cook, Apple’s CEO. “With customers and reviewers raving about the new generation of iPhones, today’s debut of new, noise-cancelling AirPods Pro, the hotly-anticipated arrival of Apple TV+ just two days away, and our best lineup of products and services ever, we’re very optimistic about what the holiday quarter has in store.”
“Our strong business performance drove record Q4 EPS of $3.03 and record Q4 operating cash flow of $19.9 billion,” said Luca Maestri, Apple’s CFO. “We also returned over $21 billion to shareholders, including almost $18 billion in share repurchases and $3.5 billion in dividends and equivalents, as we continue on our path to reaching a net cash neutral position over time.”
AK Steel misses by $0.04, misses on revs; lowers FY19 EPS guide (2.67 -0.05)
- Reports Q3 (Sep) earnings of $0.01 per share, $0.04 worse than the S&P Capital IQ Consensus of $0.05; revenues fell 11.5% year/year to $1.54 bln vs the $1.64 bln S&P Capital IQ Consensus.
- Co lowers guidance for FY19, sees EPS of $0.32-0.37 (from $0.37-0.44) vs. $0.41 S&P Capital IQ Consensus.
- In July, the company provided annual guidance based on carbon hot-rolled coil pricing of approximately $555 per ton. This annual guidance also indicated that for every $10 change in the carbon hot-rolled coil spot market price, annual earnings would be impacted by $5 to $7 million. However, since July, the pricing for carbon hot-rolled coil products has fallen more sharply than previously anticipated to an average of about $510 per ton for October. This decline has also caused service centers to order at minimum levels.
- The company expects the lower order volumes and the impact of the strike at General Motors (GM) to result in a reduction of flat-rolled steel shipments to between approximately 5.3 and 5.4 million tons for the full year. Further, these volatile events result in a deviation from the company's anticipated range of $5 to $7 million.
- The company now expects net income for the year to be in the range of $26 to $41 million, or $0.08 to $0.13 per diluted share.
- Excluding the effects of the first quarter 2019 Ashland Works charge of $77.4 million, the company also anticipates adjusted net income for the year to be in the range of $103 to $118 million, or $0.32 to $0.37 per diluted share, and adjusted EBITDA for the year to be in the range of $450 to $465 million.
US DoJ nears settlement with Jho Low in 1MDB forfeiture case
Malaysian financier at centre of scandal aims to resolve case targeting close to $1bn in assets
Jho Low, the Malaysian financier at the centre of the 1MDB scandal, has struck a deal with the US Department of Justice that would resolve a number of civil forfeiture lawsuits targeting assets worth almost $1bn, according to a person familiar with the matter.
The settlement, which would require approval by the courts, had been agreed in principle and was expected to be filed this week, the person said. The deal would help resolve a multibillion-dollar corruption scandal that rocked Malaysia and implicated Goldman Sachs.
Mr Low was indicted in the US last year and still faces criminal prosecution for his alleged role as the mastermind behind the looting of 1MDB, the Malaysian investment fund. He has denied any wrongdoing.
The settlement includes over $10m in legal fees for Mr Low’s attorneys, the person familiar with the matter added.
A spokesman for Mr Low, who remains at large, declined to comment. A justice department spokesman declined to comment. The settlement was first reported by Bloomberg.
The 1MDB investment fund was set up in 2009 by Najib Razak, the former Malaysian prime minister now on trial in Malaysia. It subsequently raised $6.5bn in bonds with the help of Goldman Sachs, much of which was allegedly stolen.
The US first launched a wave of forfeiture lawsuits aimed at cash looted from 1MDB in 2016 as it sought to recover money that had flowed into luxury real estate, expensive art and the production of Martin Scorsese’s The Wolf of Wall Street.
Last year, along with the indictment of Mr Low, the US brought criminal charges against two Goldman Sachs bankers. In Malaysia, the bank itself and 17 current and former executives have been criminally charged.
Goldman Sachs has challenged the charges in Malaysia, where the government is demanding billions of dollars to settle the case. In the US, the bank is also negotiating a possible settlement with the justice department.
Career prosecutors in the US recommended that any settlement with Goldman Sachs include a guilty plea to a criminal charge by the parent entity of the bank, the Financial Times reported earlier this year.
The bank has denied any knowledge of wrongdoing connected to 1MDB by senior management, arguing it was the result of rogue employees who hid their activities from compliance.