Quotes at time of story, top stories today:
08:56AM | 08:54AM | 07:26AM | 07:25AM | 07:24AM | 07:23AM | 07:22AM
Seasonal Biases Likely the Cause for the Increase in Initial Claims
The initial claims level increased to 329,000 for the week ending April 19 from an upwardly revised 305,000 (from 304,000) for the week ending April 12. The Briefing.com consensus expected the initial claims level to increase to 312,000. A 24,000 increase from the previous week may seem like a lot, but it comes during a time when the DOL normally has difficulty adjusting for the Easter holiday. In all likelihood, the low claims levels at the beginning of the month were a result of seasonal biases and not a change in layoff trends.
Claims are likely to stabilize in the 320,000 -- 330,000 range over the next few weeks. The continuing claims level fell to 2.680 mln for the week ending April 12 from an upwardly revised 2.741 mln (from 2.739 mln) for the week ending April 5. The consensus expected the continuing claims level to increase to 2.750 mln.
Durable Goods Orders Return After a Few Months of Soft Data
Durable goods orders increased 2.6% in March after increasing a downwardly revised 2.1% (from 2.2%) in February. The Briefing.com consensus expected durable goods orders to increase 2.0%. For the past few months, durable goods orders have been reliant on Boeing (BA) for growth. That wasn't necessarily the case in March as demand strengthened across the board.
Transportation orders were still important, up 4.0% after increasing 6.7% in February, but were not the sole provider of growth. Durable goods orders excluding transportation increased 2.0% in March, up from a 0.1% increase in February. That was also well above the consensus expectation of a 0.5% gain.
Strong gains were seen in computers and electronic products (5.7%), electrical equipment and appliances (3.5%), and fabricated metals (2.2%). Demand for business investment rebounded. Orders for nondefense capital goods excluding aircraft increased 2.2% in March after falling 1.1% in February. Shipments of these goods, which factor into GDP, increased 1.0% in March, up from a 0.7% gain in February.
Triquint Semi shares spike 8% following beat on earnings
TriQuint Semi (TQNT) reported first quarter loss of $0.06 per share, which is higher than expected, while revenues fell 3.6% year/year to $177.6 million which is in line with estimates. The company issued guidance for the upside guidance for the second quarter with EPS of $0.06-0.08 which is above estimtes and revenues of $215-225 million which is above estimates.
Angie's List shares spike 10% following beat on earnings
- Angie's List (ANGI $14.10 +1.28) reported first quarter loss of $0.06 per share, which is higher than expected, while revenues rose 39.3% year/year to $72.7 million which is in line with estimates Membership revenue in the first quarter of 2014 was $18.3 million, an increase of 25 percent compared to the prior year period. Service provider revenue remains the largest and fastest growing component of total revenue at $54.4 million for the quarter, representing a 45 percent growth rate year-over-year.
- Service provider revenue includes revenue from advertising contracts and fees from e-commerce transactions. Advertising revenue was $48.1 million in the first quarter of 2014, an increase of 46 percent compared to the prior year period, and e-commerce revenue was $6.3 million, an increase of 34 percent year-over-year. Marketing expense increased 19 percent, or $3.8 million, compared to the prior year period. The company issues upside guidance for the second quarter with revenues of $79.5-80.5 million which is higher than expected.
Fusion IO shares fall 5% following in line revenues
- Fusion-io (FIO $9.22 -0.46) reported third quarter loss of $0.10 per share, which is line with estimates, while revenues rose 14.6% year/year to $100.5 million which is higher than expected. Metrics: Non-GAAP gross margin was 52.4%. Cash used in operations was $18.8 million in fiscal third quarter 2014 and $22.9 million fiscal year-to-date. Inventory was $72.7 million at the end of fiscal third quarter 2014, a decrease of $7.7 million from the prior quarter-end
- Guidance: The company sees Q4 revs to be in-line to slightly up sequentially. The company sees Non-GAAP gross margin of 52-54% and operating margin of negative 13-17%.
Facebook shares rise 4% following higher than expected earnings
- Facebook (FB $64.05 +2.66) reported first quarter earnings of $0.34 per share, which is higher than expected, while revenues rose 71.6% year/year to $2.5 bililon which is higher than expected. Daily active users (DAUs) were 802 million on average for March 2014, an increase of 21% year-over-year.
- Mobile DAUs were 609 million on average for March 2014, an increase of 43% year-over-year. Monthly active users (MAUs) were 1.28 billion as of March 31, 2014, an increase of 15% year-over-year. Mobile MAUs were 1.01 billion as of March 31, 2014, an increase of 34% year-over-year.
- Revenue for the first quarter of 2014 totaled $2.50 billion, an increase of 72%, compared with $1.46 billion in the first quarter of 2013. Revenue from advertising was $2.27 billion, an 82% increase from the same quarter last year. Mobile advertising revenue represented approximately 59% of advertising revenue for the first quarter of 2014, up from approximately 30% of advertising revenue in the first quarter of 2013. For the first quarter of 2014, GAAP income from operations was $1.08 billion, up 188% compared to $373 million in the first quarter of 2013.
- Excluding share-based compensation and related payroll tax expenses, non-GAAP income from operations for the first quarter of 2014 was $1.37 billion, up 144% compared to $563 million for the first quarter of 2013. GAAP operating margin was 43% for the first quarter of 2014, compared to 26% in the first quarter of 2013. Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 55% for the first quarter of 2014, compared to 39% for the first quarter of 2013.
- CFO Transition Facebook today also announced that David Ebersman has informed the company of his intention to step down as chief financial officer after serving in the position for almost five years. On June 1, 2014, he will be succeeded as CFO by David Wehner, currently Facebook's Vice President, Corporate Finance and Business Planning. Ebersman will remain with the company through September to ensure a seamless transition of his responsibilities. Wehner joined Facebook in November 2012 from Zynga, where he served as CFO.
Apple shares soar 7% following beat on earnings as iPhone sales beat estimates
- Apple (AAPL $566.50 +41.75) reported second quarter earnings of $11.62 per share, which is higher than expected, while revenues rose 4.7% year/year to $45.65 billion which is higher than expected gross margins of 39.3% versus guidance 37-38%... Buybacks added $0.81/share to EPS -- analyst models include buybacks).
- The company issued guidance for the third quarter with revenues of $36-38 billion which is line with estimates and sees Q3 gross margins of 37-38%.
- iPhone shipments 43.7 million vs. ~38 million estimates.
- iPad 16.4 million vs. 19 million est
- Mac 4.13 million vs. 4 million est
- Co announced that its Board of Directors has authorized another significant increase to the Company's program to return capital to shareholders. The co expects to utilize a total of over $130 billion of cash under the expanded program by the end of calendar 2015. As part of the program, the Board has increased its share repurchase authorization to $90 bln from the $60 bln level announced last year.
- The Company expects to continue to utilize about $1 billion annually to net-share-settle vesting restricted stock units. Co raises quarterly dividend 8% to $3.29 per common share, payable on May 15, 2014 to shareholders of record as of the close of business on May 12, 2014.The co also plans to increase its dividend on an annual basis. With annual payments of $11 billion, Apple is among the largest dividend payers in the world.Co also announced a 7:1 stock split.