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Stock Market & Financial Investment News

News Breaks
April 16, 2014
12:30 EDTIBM, LNVGYEarnings 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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March 3, 2015
12:14 EDTLNVGYConnecticut AG probes Lenovo over laptop software, Computerworld says
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07:27 EDTIBMMorgan Stanley to hold a conference
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March 2, 2015
10:00 EDTIBMOn The Fly: Analyst Downgrade Summary
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08:35 EDTIBMIBM downgraded to Underweight from Neutral at Atlantic Equities
As previously reported, Atlantic Equities downgraded IBM to Underweight from Neutral. The firm said IBM faces long-term structural issues and is unconvinced by management's strategic plan will change the direction. The analyst sees further room for disappointment around consensus expectations of 8% earnings growth in 2016-2017 and lowered its price target to $140 from $150.
06:27 EDTIBMBuffett says IBM cost likely around $170/share
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06:22 EDTIBMIBM downgraded to Underweight from Neutral at Atlantic Equities
06:22 EDTIBMBuffett says IBM interest 'increasing day after day'
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06:19 EDTIBMBuffett says buying more IBM 'because I like it'
Warren Buffett is speaking on CNBC.
March 1, 2015
13:05 EDTIBMBerkshire's Buffett says 2015 will be 'tough year' for 'Big Four' investments
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February 26, 2015
16:52 EDTIBMOn The Fly: Closing Wrap
Stocks on Wall Street moved in a narrow range for most of the session while remaining near record levels. The Nasdaq was the strongest of the indices, as it continues its march towards 5,000. Crude oil prices fell by over 5% during the regular trading session, but recovered a bit in after-hours trading. The market is on pace to complete its fourth consecutive week of gains and close out the month of February with gains after suffering losses in January. ECONOMIC EVENTS: In the U.S., the Consumer Price Index fell 0.7% in January, with the core rate rising 0.2%, versus expectations for the headline CPI to be down 0.6% and the core rate to rise 0.1%. Initial jobless claims rose 31K to 313K in the week ended February 21, versus expectations for 290K first-time claims. Durable goods orders rose 2.8% in January, versus expectations for a 1.6% increase. The FHFA home price index rose 0.8% to 218.6 in December, versus expectations for an increase of 0.5%. COMPANY NEWS: The Federal Communications Commission voted 3 to 2 in favor of adopting new open Internet, or "net neutrality," rules. FCC Chairman Tom Wheeler has proposed that the FCC use its Title II authority to implement and enforce "bright-line" rules to ban paid prioritization and the blocking and throttling of lawful content and services. However, Wheeler said his proposal will "modernize" Title II, insuring there will be no rate regulation, no tariffs, and no last-mile unbundling. Major Internet Service Providers, including Verizon (VZ), AT&T (T), and Comcast (CMCSA), have opposed the rules, while Netflix (NFLX) has been a strong and vocal supporter of open Internet provisions... Shares of International Business Machines (IBM) slipped $1.94, or 1.19%, to $160.87 after Big Blue held its investor day meeting in NYC. At the meeting, IBM backed its fiscal year profit view but also said that the company now expects currency to impact revenue growth by over 6 points for the full year, which is greater than the impact previously provided based on January 16 spot rates. IBM also said it was shifting $4B into "strategic initiatives," including Big Data, the Cloud, mobile, social and security... Barnes & Noble (BKS) rose $1.67, or 6.89%, to $25.92 after announcing plans to split its Education business from its Retail and NOOK Digital businesses. The separation into two independent, publicly traded companies is anticipated to be completed by the end of August and is intended to be a tax-free distribution to shareholders, B&N noted. MAJOR MOVERS: Among the notable gainers was Emulex (ELX), which jumped $1.57, or 24.69%, to $7.93 after the company agreed to be acquired by Avago Technologies (AVGO) for $606M, or $8 per share in cash. Avago also rose $16.57, or 14.71%, to $129.25 after announcing the deal and reporting "beat and raise" quarterly results. Also higher was UIL Holdings (UIL), which gained $9.74, or 23.01%, to $52.07 after the company agreed to be acquired by Iberdrola USA to create a newly listed U.S. publicly-traded company. The proposed transaction implies total value per share to UIL shareholders of $52.75, including $10.50 per share paid in the form of cash, the companies said. Among the noteworthy losers was Clayton Williams (CWEI), which fell $11.41, or 17.77%, to $52.79 after the company suspended drilling operations in both of its core resource plays, citing low oil prices, and its shares were downgraded at Wunderlich. Also lower following their earnings reports were network solutions provider Inteliquent (IQNT), which dropped $3.05, or 17.33%, to $14.55, and electric weapons maker TASER (TASR), which slid $4.36, or 16.14%, to $22.68. INDEXES: The Dow fell 10.15, or -0.06%, to 18,214.42, the Nasdaq gained 20.75, or 0.42%, to 4,987.89, and the S&P 500 declined 3.12, or 0.15%, to 2,110.74.
12:39 EDTIBMOn The Fly: Midday Wrap
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09:12 EDTIBMIBM shifting $4B into 'strategic initiatives'
The strategic imperatives identified by IBM include Data, Cloud and Engagement.
09:07 EDTIBMIBM backs FY15 EPS view $15.75-$16.50, consensus $16.02
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09:02 EDTIBMIBM sees EPS to grow high single-digits over longer term
IBM sees revenue to grow low single-digits over longer term. See longer term Free Cash Flow realization in the 90%'s. Longer term view given in slides for analyst day meeting.
06:57 EDTIBMIBM volatility low into investor day
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06:02 EDTLNVGYLenovo website taken down by cyberattack, WSJ says
Lenovo stated its website was taken down by a cyberattack Thursday, reports the Wall Street Journal's Digits blog. Attempting to log in to the website redirected users to a blank page. Lenovo is "actively investigating other aspects of the attack" and working with third parties to investigate. Reference Link
February 25, 2015
07:27 EDTIBMThe Linley Group to hold a conference
Linley Data Center Conference 2015 is being held in Santa Clara, California on February 25-26.
06:01 EDTLNVGYGlobal tablet shipments forecast at 221.4M units in 2015, DigiTimes says
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February 23, 2015
14:24 EDTIBMIBM signs strategic teaming agreement with Tech Mahindra
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February 20, 2015
11:37 EDTIBMIBM volatility low into host investor day
IBM February weekly call option implied volatility is at 17, March is at 15, July is at 17; compared to its 26-week average of 20 according to Track Data, suggesting decreasing movement into a company hosted investor day to be held in New York on February 26.
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