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Stock Market & Financial Investment News

News Breaks
June 24, 2014
11:52 EDTSNDK, MUMicron climbs, upgraded after results beat expectations
Shares of computer memory maker Micron Technology (MU) are climbing after the company's third quarter earnings per share and revenue surpassed analysts' expectations. WHAT'S NEW: Micron's Q3 EPS of 79c was 9c higher than expectations, while its Q3 revenue of $3.98B beat analysts' consensus forecast of $3.89B. Revenues for both DRAM and NAND Flash products were down slightly for the quarter compared to last year's results. The company’s overall consolidated gross margin of 34% for Q3 was consistent with last quarter's results, as mix-related decreases in average selling prices were essentially offset by corresponding decreases in manufacturing costs. WHAT'S NOTABLE: During the company's earnings conference call, Micron guided Q4 total revenue to be in the range of $4B-$4.2B on a consolidated basis. Micron said Q4 trade NAND gross margins are expected to be down a couple of points compared to Q3 based on bit production expected to be up low-to mid-teens, average selling price down low to mid-single digits, and cost per bit flat compared to Q3. Q4 DRAM gross margin is anticipated to be flat to up slightly compared to Q3. Q4 gross margins are expected to be adversely affected in the $30M range by a last-time sale of end-of-life legacy architecture products not included in the company's DRAM and NAND guidance. In terms of expenditures for property, plant and equipment, Micron said that it is on track to be within its guided range for FY14 of between $2.8B-$3.2B, with over $1B of expenditures planned for Q4. Micron added that it has no plans to expand wafer production in FY15 and that it expects long-term NAND demand/supply to be in balance. ANALYST OPINION: Following its report and guidance, Needham upgraded Micron to Strong Buy from Buy and raised its price target for shares to $50 from $40. Analysts at Roth Capital, Jefferies, and JPMorgan also raised their price targets on the shares this morning. Goldman Sachs Analyst Mark Delaney said the firm is maintaining its Neutral rating on Micron as the firm is worried that DRAM fundamentals could be close to peak and attract incremental supply. However, he feels that investors will perceive Micron's plan to not add new wafer capacity next year positively. Goldman Sachs' price target on Micron remains at $29. PRICE ACTION: During late-morning trading, shares of Micron rose $1.59 or 5.07%, to $32.85. Shares of SanDisk (SNDK), which also offers data storage solutions in a range of form factors, are up 1% to $103.26.
News For MU;SNDK From The Last 14 Days
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January 29, 2016
07:12 EDTSNDKWestern Digital upside incredibly substantial, says Brean Capital
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January 28, 2016
17:12 EDTSNDKWestern Digital says 'pleased with progress' on SanDisk acquisition
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16:00 EDTMUOptions Update; January 28, 2016
iPath S&P 500 VIX Short-Term Futures down 84c to 25.21 Option volume leaders: FB AAPL MSFT AMZN NFLX BAC BABA QCOM AAL MU C RIG
15:19 EDTSNDKEarnings Watch: Hard drive makers report with analysts upbeat on SanDisk deal
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10:04 EDTSNDKOn The Fly: Analyst Upgrade Summary
Today's noteworthy upgrades include: Amdocs (DOX) upgraded to Buy from Neutral at BofA/Merrill... Cheesecake Factory (CAKE) upgraded to Overweight from Equal Weight at Stephens... Chemical Financial (CHFC) upgraded to Buy from Hold at Sandler O'Neill... Cimarex Energy (XEC) upgraded to Buy from Hold at Wunderlich... Cirrus Logic (CRUS) upgraded to Outperform from Perform at Oppenheimer... Citrix (CTXS) upgraded on Q4 results, valuation at JMP Securities... Comerica (CMA) upgraded to Market Perform from Underperform at BMO Capital... Community Health (CYH) upgraded to Market Perform from Underperform at Raymond James... Denny's (DENN) upgraded to Overweight from Equal Weight at Stephens... Dolby (DLB) upgraded to Buy from Neutral at Dougherty... EMC (EMC) upgraded to Buy from Neutral at Mizuho... Halliburton (HAL) upgraded to Buy from Accumulate at KLR Group... Hanmi Financial (HAFC) upgraded to Strong Buy from Outperform at Raymond James... Hawaiian Holdings (HA) upgraded to Neutral at BofA/Merrill... Hologic (HOLX) upgraded to Buy from Hold at Needham... Kinder Morgan (KMI) upgraded at Stifel... MGM China (MCHVF) upgraded to Overweight from Neutral at JPMorgan... Nimble Storage (NMBL) upgraded to Buy from Hold at Maxim... Patterson Companies (PDCO) upgraded to Buy from Neutral at UBS... PayPal (PYPL) upgraded to Outperform on core market share gains at Wedbush... Prosperity Bancshares (PB) upgraded to Buy from Neutral at DA Davidson... RPC, Inc. (RES) upgraded to Overweight from Equal Weight at Morgan Stanley... Rowan Companies (RDC) upgraded to Equal Weight from Underweight at Morgan Stanley... SanDisk (SNDK) upgraded to Buy from Neutral at Mizuho... Stillwater Mining (SWC) upgraded to Outperform from Market Perform at FBR Capital... Vantiv (VNTV) upgraded to Positive from Neutral at Susquehanna... Wilshire Bancorp (WIBC) upgraded to Outperform from Market Perform at Raymond James.
08:33 EDTSNDKOptions expected to be active
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07:52 EDTSNDKSanDisk upgraded to Positive at Susquehanna
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07:27 EDTSNDKSanDisk upgraded to Positive from Neutral at Susquehanna
06:18 EDTSNDKSanDisk upgraded to Buy from Neutral at Mizuho
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January 27, 2016
19:30 EDTSNDKOn The Fly: After Hours Movers
UP AFTER EARNINGS: Facebook (FB), up 11.4%... Mellanox (MLNX), up 6.4%... Paypal (PYPL), up 5%... Crown Castle (CCI), up 2.2%... Citrix (CTXS), up 2.4%... Las Vegas Sands (LVS), up 1%... SanDisk (SNDK), up 1%. ALSO HIGHER: Radius Health (RDUS), up 1.2% after announcing a clinical collaboration with Novartis (NVS)... LinkedIn (LNKD) is up 2.4%, Alphabet (GOOG, GOOGL) is up 2.2% and 2.6%, respectively, Netflix (NFLX) is up 1%, Amazon.com (AMZN) is up 2%, and Twitter (TWTR) is up marginally after Facebook reported quarterly results... MGM Resorts (MGM) is up 2.2% and Wynn Resorts (WYNN) is up 2.2%. DOWN AFTER EARNINGS: ServiceNow (NOW), down 16.5%... eBay (EBAY), down 12.8%... United Rentals (URI), down 9.7%... Juniper Networks (JNPR), down 9.6%... Silicon Graphics (SGI), down 9.1%... Discover Financial (DFS), down 7.4%... InvenSense (INVN), down 6.1%... Core Laboratories (CLB), down 4.3%... Vertex Pharmaceuticals (VRTX), down 1.1%. ALSO LOWER: Incyte (INCY), down 12.8% after announcing that it will halt the Phase 2 sub-study of ruxolitinib or placebo in combination with regorafenib after a planned interim analysis of the high CRP subgroup demonstrated that ruxolitinib plus regorafenib did not show a sufficient level of efficacy to warrant continuation.
16:10 EDTSNDKSanDisk trades up after earnings
In the extended session the shares are up 1% after an earnings beat. At that price next resistance is at $66.45. Support is at $64.21, the regular session closing price.
16:07 EDTSNDKSanDisk reports Q4 EPS $1.26, consensus 89c
Reports Q4 revenue $1.54B, consensus $1.44B. "I am pleased to report an excellent fourth quarter finish to 2015 driven by strong performance in enterprise and retail. We made substantial progress in the second half of 2015 in reinvigorating our portfolio, improving our product execution and expanding our customer engagements. We also achieved an important milestone in beginning our multi-year conversion to 3D NAND, with first retail product shipments and initial OEM customer sampling in the fourth quarter," said Sanjay Mehrotra, president and CEO.
15:10 EDTSNDKEarnings Watch: Western Digital deal update focus of SanDisk report
SanDisk (SNDK) is expected to report fourth quarter earnings after the close on Wednesday, January 27. SanDisk will not hold a conference call to discuss its financial results in light of the pending acquisition by Western Digital (WDC). SanDisk manufactures data storage solutions, including removable and embedded Flash memory and solid-state drives. EXPECTATIONS: Analysts are looking for earnings per share of 89c on revenue of $1.44B. The consensus range is 83c-$1.00 for EPS on revenue of $1.4B-$1.47B, according to First Call. Along with its last earnings report, SanDisk guided to Q4 revenue of $1.4B-$1.475B and a non-GAAP gross margin 40%-43%. LAST QUARTER: On October 21, SanDisk reported third quarter earnings per share of $1.09 and revenue of $1.45B, compared to expectations of 80c and $1.4B, respectively. NEWS: Along with releasing its earnings report, SanDisk announced a definitive agreement under which Western Digital will acquire all of the outstanding shares of SanDisk for a combination of cash and stock that values SanDisk common stock at $86.50 per share, or a total equity value of approximately $19B. If the investment in Western Digital by Unisplendour Corporation closes prior to this acquisition, Western Digital will pay $85.10 per share in cash and 0.0176 shares of Western Digital common stock per share of SanDisk common stock; and if the Unisplendour transaction has not closed or has been terminated, $67.50 in cash and 0.2387 shares of Western Digital common stock per share of SanDisk common stock. The companies said at the time that the transaction is expected to close in the third quarter of 2016. STREET RESEARCH: On December 28, Brean Capital analyst Ananda Baruah said the combined Western Digital-SanDisk company, post an expected merger close in September of this year, can generate FY17 earnings per share of $13-$15. He kept a $150 standalone Western Digital target price and believes that the combined company's shares should trade in a range of $154-$256 post close. On January 6, Pacific Crest analyst Monika Garg called Western Digital her best idea for 2016, stating that the company's pending acquisition of SanDisk "would create a formidable company" and bring significant earnings and cash flow generation. On January 25, CLSA analyst Mark Heller downgraded SanDisk to Underperform due to weakening NAND fundamentals and higher deal risk. The analyst does not believe Western Digital can walk away from the deal due to weakening fundamentals, but is more cautious on Unisplenour's investment in Western Digital. Heller lowered his price target to $70 from $86 on SanDisk shares. The same day, Jefferies analyst James Kisner lowered his estimates for Western Digital and Seagate (STX), citing the weak results and guidance from Nidec and a more conservative approach following the recent selloff in the shares. Western Digital's current valuation fully prices in an "extreme bear case" for the combined Western Digital and SanDisk, Kisner told investors in his research note. The analyst cut his price target for Western Digital to $82 from $95 but kept a Buy rating on the stock. Noting that the Committee on Foreign Investment in the United States would not grant regulatory clearance for Philips (PHG) to sell an 80.1% interest in Lumileds to China's GO Scale Capital, Summit Research analyst Srini Sundararajan said on January 26 that he thinks that the Unisplendour investment in Western Digital is more than likely to be stalled, if not blocked, given the current political climate. However, he also believes Western Digital planned for this contingency and that its deal with SanDisk should still go through. This morning, Citi analyst Stanley Kovler initiated coverage of Western Digital with a Buy rating, as the firm is relatively bullish on the company's acquisition of SanDisk. Conversely, Citi started coverage of Seagate (STX) with a Sell rating, saying that actions it has taken to cope with the decline of the sector "may only help so much." Kovler set an $82 price target on SanDisk, a $53 price target on Western Digital and a $23 price target on Seagate. PRICE ACTION: In afternoon trading, SanDisk rose 0.75% to $64.57 per share. Since October 21, shares of SanDisk have declined about 14%. Since that same day, Western Digital shares are down over 41%.
14:34 EDTSNDKNotable companies reporting after market close
Notable companies reporting after the market close, with earnings consensus, include Facebook (FB), consensus 68c... Qualcomm (QCOM), consensus 90c... Texas Instruments (TXN), consensus 69c... McKesson (MCK), consensus $3.13... PayPal (PYPL), consensus 35c... Las Vegas Sands (LVS), consensus 65c... eBay (EBAY), consensus 50c... Crown Castle (CCI), consensus $1.10... Vertex (VRTX), consensus 17c... Discover (DFS), consensus $1.30... SanDisk (SNDK), consensus 89c... ServiceNow (NOW), consensus 8c... Lam Research (LRCX), consensus $1.43... Citrix Systems (CTXS), consensus $1.19... Hologic (HOLX), consensus 42c... Juniper (JNPR), consensus 59c... Cavium (CAVM), consensus 28c... Cirrus Logic (CRUS), consensus 81c.
11:13 EDTSNDKCiti mixed on hard disk drive makers, says sell Seagate, buy Western Digital
Citi initiated coverage of hard disk drive, or HDD, maker Western Digital (WDC) with a Buy rating, as the firm is relatively bullish on the company's acquisition of flash memory developer SanDisk (SNDK). Conversely, Citi started coverage of the other major hard disk drive maker, Seagate (STX), with a Sell rating, saying that actions it has taken to cope with the decline of the sector "may only help so much." Stating that the sector has begun a decline that should last for quite some time, the firm believes that Western Digital's actions to cope with this situation are more effective than those taken by its competitor. WHAT'S NEW: Western Digital's pending acquisition of SanDisk makes the company more stable, and will raise its margins and profits, according to Citi analyst Stanley Kovler. The deal will increase Western Digital's earnings per share by a greater amount than if the company had continued its shares buybacks, the analyst added. Conversely, Seagate is trying to lower its costs and improve its products and execution, Kovler noted. The company also entered the solid state drive market, he stated. Given Seagate's limited exposure to markets other than HDD and the "malaise" in that market, the company may seek to make a "potentially transformative" acquisition, the analyst stated. But in light of its "limited financial flexibility," such a deal could limit its ability to return cash to shareholders, Kovler warned. Moreover, any acquisition made by the company may not be large enough to "fully transform" Seagate, according to Kovler, who set a $53 price target on Western Digital and a $23 price target on Seagate. PRICE ACTION: In late morning trading, Western Digital fell 1% to $44.83 and Seagate lost 1.6% to $27.29.
10:36 EDTSNDKOptions with increasing implied volatility: SNDK GMCR
10:23 EDTMUOptions with decreasing implied volatility
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06:41 EDTSNDKSeagate initiated with a Sell at Citi
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06:38 EDTSNDKWestern Digital initiated with a Buy at Citi
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06:37 EDTSNDKSanDisk initiated with a Buy at Citi
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