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Stock Market & Financial Investment News

News Breaks
April 16, 2014
12:30 EDTLNVGY, IBMEarnings Preview: Cantor more upbeat than Citi on IBM ahead of report
International Business Machines (IBM) is expected to report first quarter earnings after the close on Wednesday, April 16, with a conference call scheduled for 4:30 pm ET. IBM, an information technology services and software company, is a member of the Dow Jones Industrial Average. EXPECTATIONS: Analysts are looking for earnings per share of $2.54 on revenue of $22.91B. The consensus range is $2.49-$2.62 for EPS on revenue of $22.21B-$23.19B, according to First Call. In response to a question on its Q4 earnings conference call, IBM said that an analyst's math which put the company's Q1 EPS coming in at $2.50 was "consistent with how we would see it as well." LAST QUARTER: IBM reported Q4 EPS of $6.13, beating the consensus estimate of $5.99. Revenue came in at $27.7B, trailing the consensus $28.25 projection. IBM reported Q4 software segment revenue grew 3% to $8.1B and that technology services revenue fell 4% to $9.9B. IBM also said its sees 2014 EPS of "at least" $18.00, which compared to consensus at the time of $17.97 and current consensus of $17.84. STREET RESEARCH: In a note to investors this morning, Cantor Fitzgerald analyst Brian White said that he expects IBM to meet the firm's $2.53 per share earnings estimate for the quarter. White added that he expects all of IBM's segments to decline sequentially due to seasonality, but also said that he believes IBM's profit cycle bottomed out in Q1 and that investors could "warm up" to the stock this year. Cantor has a Buy rating and $220 price target on shares of IBM. Yesterday, Citigroup downgraded its rating on IBM to Neutral from Buy, citing the stock's valuation. The firm lowered its price target for shares to $200 from $235. About a week ago, Deutsche Bank initiated coverage of IBM with a Hold rating and $200 price target. NEWS: On January 23, two days after its last quarterly report, IBM agreed to sell its x86 server business, including System x, BladeCenter and Flex System blade servers and switches, x86-based Flex integrated systems, NeXtScale and iDataPlex servers and associated software, to Lenovo (LNVGY) for about $2.3B in cash and stock. IBM will retain its System z mainframes, Power Systems, Storage Systems, Power-based Flex servers, and PureApplication and PureData appliances. Within the next week, Re/code reported, citing sources, that IBM was exploring the sale of its product line focused on software defined networking, or SDN, that was not included in the sale to Lenovo. The company may be seeking as much as $1B for the assets, the report claimed. In February, Bloomberg said IBM was focused on finding a joint-venture partner for its chip-making unit after failing to find a buyer for the assets. The next month, IBM CEO Virginia Rometty reportedly stated in a letter to investors that the company is not exiting hardware entirely. Rometty wrote that "IBM will remain a leader in high-performance and high-end systems, storage and cognitive computing, and we will continue to invest in R&D for advanced semiconductor technology," as quoted by The Wall Street Journal. PRICE ACTION: In afternoon trading ahead of tonight's report, IBM is flat near $197 per share. IBM shares have risen 4.5% over the last three months.
News For IBM;LNVGY From The Last 14 Days
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February 12, 2016
08:34 EDTIBMIntralinks names Jay Muelhoefer chief marketing officer
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February 10, 2016
15:41 EDTIBMIBM heads lower, may test 52-week low
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February 9, 2016
08:08 EDTIBMIBM Consolidated selected by Edison companies as provider
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February 5, 2016
06:23 EDTIBM20 companies make alliance to keep down healthcare costs, WSJ says
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February 3, 2016
09:15 EDTIBMIBM acquiring German digital agency exc.io
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07:41 EDTLNVGYCiti lowers 2016 PC estimates to down 6% from down 2%
Citi analyst Jim Suva says recent data points indicate above normal PC inventories and "materially below seasonal demand" in early 2016. The analyst cut his 2016 PC estimates to down 6% from down 2%, well below IDC's estimate of down 3%. Suva believes there is a lack of evidence to suggest that Microsoft's (MSFT) Windows' 10 launch will drive a PC refresh in 2016. The analyst cut his estimates and price target for HP Inc. (HPQ) and kept a Neutral rating on the name.
05:14 EDTLNVGYLenovo reports Q3 EPS $2.70 vs. $2.30 last year
Reports Q3 revenue $12.91B vs. $14.09B last year. Lenovo achieved its stated goals of achieving breakeven in its mobile business 4-6 quarters after the close of the Motorola deal, and remains on track to reach US$5 billion in Enterprise revenue, on a constant currency basis.
February 2, 2016
06:48 EDTLNVGYTablet market continued to decline in Q4, VentureBeat says
The tablet market continues to see a decline, with 4Q15 representing the fifth straight quarter to see a year-over-year decrease in shipments, VentureBeat reports, citing market research firm IDC. 65.9M tablet units shipped in Q4, a decline of 13.7% from 76.4M units in the same period last year, the report says. Shipments for FY15 were down 10.1% year over year to 206.8M, the report says. In Q4, top five vendors Apple (AAPL), Samsung (SSNLF), Amazon (AMZN), Lenovo (LNVGY), and Huawei accounted for 54.2% of the market, up from 51% last year, though only Amazon and Huawei grew their own market share year over year, the report says. Reference Link
06:09 EDTIBMIBM agrees to acquire Aperto, terms not disclosed
IBM announced it has signed a definitive agreement to acquire Aperto, a digital agency with headquarters in Berlin. Upon completion of this transaction, Aperto will to join the IBM Interactive Experience team, supporting IBM's growth in the largest economy in Europe. Aperto's 300-plus employees will continue to serve its roster of clients. The transaction is expected to close in Q1 and is subject to applicable regulatory review and customary closing conditions. Financial details were not disclosed.
February 1, 2016
13:42 EDTLNVGYEarnings Watch: Alphabet to report Q4 results under new corporate structure
Alphabet (GOOG, GOOGL) is expected to report fourth quarter earnings after the market close on Monday, February 1 with a conference call scheduled for 4:30 pm ET. Alphabet is a multinational conglomerate that serves as the parent company of Google, Calico, GV, Google Capital, and Nest Labs. EXPECTATIONS: Analysts are looking for earnings per share of $8.09 on revenue of $20.77B. The consensus range is $7.32-$8.59 for EPS, and $20.33B-$21.68B for revenue, according to First Call. LAST QUARTER: Alphabet reported third quarter EPS of $7.35 against estimates of $7.21, on revenue of $18.7B against estimates of $18.53B. Google reported Q3 aggregate paid clicks up 23%, paid clicks on Google websites down 5%, aggregate cost-per-clicks down 11%, and cost-per-click on Google websites down 4%. The company also reported Q3 Sites revenue up 16% to $13.08B and Q3 Total advertising revenue up 13% to $26.78B. During its Q3 earnings report, the company said it will begin to disclose the Google business as a single segment in Q4. It also announced that the board authorized the company to repurchase $5.1B of Class C shares in Q4. GOOGLE SEGMENT: Alphabet announced that it will report Google as a single segment within its company beginning in Q4. It stated, "The new operating structure is being introduced in phases. For financial reporting purposes, we expect the reorganization will result in disclosing our Google business as a single segment and all other Alphabet businesses combined as Other Bets beginning in the fourth quarter of 2015." Within Alphabet, the Google segment now has 6 products with over 1B users, including Search, Maps, YouTube, Chrome, Android and Google Play. Gmail is also closing in on the mark with its 900M user base. RBC Capital believes that the disclosure of segment results by Google in conjunction with its Q4 results will cause the stock to rerate. The firm believes that the segment results will highlight the high profits of core Google, supporting an increase in the stocks' sum of the parts valuation. NEWS AND STREET RESEARCH: In the past quarter, Alphabet had a strong holiday season with ChannelAdvisor reporting Google Shopping was up 31.7% over the entire holiday period. Specifically, Google Shopping was up 35.9% on Thanksgiving, up 40.3% on Black Friday, up 25.7% on Cyber Saturday, and up 18.6% on Cyber Monday. Alphabet announced the redesigned launch of Google+ in November, the exploration of Fiber in Chicago and Los Angeles, and announced plans to open its first retail store in New York City. The company also targets the China launch of the Google Play app store in 2016, according to multiple reports. Lenovo (LNVGY) CEO Chen Xudong confirmed that Google Play is expected to come to China at some point this year. The company is expected to make its self-driving car company under the Alphabet structure as a stand-alone business. Ford (F) and Google are in discussions over self-driving cars, with the currently negotiated contract likely to "last a long time." According to a Reuters report, Google expects fewer software failiures in self-driving cars as it learns from its mistakes. Google tested solar-powered Internet drones and expects consumer package delivery via drone to begin in 2017. Google is also in talks with the NFL for streaming rights for London games next year. STREET RESEARCH: Oppenheimer said cloud providers like Alphabet may have a huge opportunity in the coming years. The firm said Alphabet may look for a major partner like Salesforce (CRM) to drive its cloud business. Cantor said Google ad revenue growth should continue to be strong and BMO Capital said Alphabet's outlook has improved as valuation has become more reasonable. Bernstein said the Street continues to underestimate the resilience and growth potential of Alphabet's search ad business and YouTube. Barron's, in particular, was extremely positive on YouTube, saying its revenue per viewer could potentially double in five years. It added it could be twice as valuable as Netflix (NFLX). JMP Securities was also bullish on the company, saying Alphabet benefitted from a relatively strong holiday season for online advertising. Ahead of its Q4 earnings report, JMP Securities expects the company to report "relatively strong" results. PRICE ACTION: Google shares have gained about 6% over the last three months. In Monday afternoon trading ahead of the Q4 report, Google shares are up almost 2%

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