Monthly Archives: October 2009

Baidu.com beats by $0.35 but guides Q4 revenue below consensus


Earnings of $2.16 per share, excluding non-recurring items, $0.35 better than the First Call consensus of $1.81; reports revenues increased 39% y/y to $187.3 mln vs $187.8 mln First Call consensus. Co issues downside guidance for Q4, sees Q4 revs of $174-180 mln vs. $202.90 mln consensus. Baidu had about 216,000 active online marketing customers in Q3, representing an 11.3% increase from the corresponding period in 2008 and a 6.4% increase from the previous quarter. Revenue per online marketing customer for the third quarter was approximately, a 25.5% increase from the corresponding period in 2008 and a 9.3% increase from the previous quarter. Traffic acquisition cost (TAC) as a component of cost of revenues was $28.7 million, representing 15.3% of total revenues, as compared to 11.8% in the corresponding period in 2008 and 16.0% in the second quarter of 2009. As of September 30, 2009, the Company had cash, cash equivalents and short-term investments of $580.8 million). Net operating cash inflow and capital expenditures for the third quarter of 2009 were $107.5 million and $19.0 million, respectively.

Apple beats by $0.40, beats on revs; guides Q1 EPS below consensus, revs in-line


After Hours

Apple trades to 202.55, approaches test of all time highs at 202.96

Reports Q4 (Sep) earnings of $1.82 per share, $0.40 better than the First Call consensus of $1.42; revenues rose 25.0% year/year to $9.87 bln vs the $9.2 bln consensus. Co reports Q4 Mac sales of 3.05 mln vs ~2.8 mln Street est, 7.4mln iPhones sold vs ~7 mln Street est, and 10.2 mln iPods sold vs 10.5 mln iPods Street. Apple prelim reports gross margin 36.6% vs 35.5% consensus. Co issues mixed guidance for Q1, sees EPS of $1.70-1.78 vs. $1.91 consensus; sees Q1 revs of $11.3-11.6 bln vs. $11.45 bln consensus. “We are thrilled to have sold more Macs and iPhones than in any previous quarter,” said Steve Jobs, Apple’s CEO. “We’ve got a very strong lineup for the holiday season and some really great new products in the pipeline for 2010.”

Texas Instruments beats by $0.03, beats on revs; guides Q4 EPS above consensus, revs above consensus


Reports Q3 (Sep) earnings of $0.42 per share, $0.03 better than the First Call consensus of $0.39; revenues fell 15.0% year/year to $2.88 bln vs the $2.82 bln consensus. Co issues upside guidance for Q4, sees EPS of $0.42-0.50 vs. $0.40 consensus; sees Q4 revs of $2.78-3.02 bln vs. $2.78 bln consensus. Co reports gross margins of 51.4% vs. 49.1% street expectation. Analog revenue declined 8% y/y, while embedded revenue also fell 8%. Wireless revenue declined 26% y/y. The decline in Analog revenue from a year ago was due to lower high- volume analog & logic and high-performance analog revenue. Power management revenue increased slightly. The increase in Analog revenue from the prior quarter was due to growth in all three product categories. Co states, “Our performance in the quarter exceeded our expectations and was led by a second consecutive quarter of 20-percent growth in Analog. We are encouraged with the strong sequential increase in demand for our products over the past two quarters as our customers are winding down their inventory corrections and have begun to increase production levels in their factories. This revenue growth, combined with our early actions to pare costs so that we would not be dependent upon an uncertain rebound in the overall economy, has resulted in solid improvements in our profitability.

Google beats by $0.47, beats on revs


Reports Q3 (Sep) earnings of $5.89 per share, $0.47 better than the First Call consensus of $5.42; revenues rose 8.4% year/year to $4.4 bln vs the $4.24 bln consensus. Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 14% over the third quarter of 2008 and increased approximately 4% over the second quarter of 2009.

GOOG says it is seeing many signs that the economy is strengthening, and now has the business confidence to invest heavily in growth initiatives. The company plans to step up its hiring, particularly in sales and engineering, and says it will focus on strategice acquisitions.

During the call, GOOG says that it is seeing many signs that the economy is strengthening and now has the confidence to invest heavily in growth areas. This will include headcount and acquisitions. GOOG plans on adding employees mostly in the engineering and sales areas. For acquisitions, the company will look at both smaller and larger acquisitions. Smaller, technology-based acquisitions could happen as frequently as on a monthly basis. The company says a larger acquisition would have to substantially increase its user base, and would be fairly rare. GOOG says they are very pleased with YouTube’s performance, saying profitability is nearing. The company says it is continually adding key advertiser relationships for YouTube deals with large customers like Hewlett-Packard (HPQ) and McDonalds (MCD). Company says Android ramp is going well, with the platform in 12 devices and with more than 30 carriers. Chrome — GOOG’s new operating system — is progressing well, and GOOG states that it will significantly increase the speed of web-based applications. In terms of geographic performance, company says China and Brazil continue their strength, while areas in Europe, such as Spain, have shown renewed strength.

Google’s numbers could ignite a tech rally tomorrow: AMZN, EBAY, BIDU, PCLN, RAX, ARST

INTC beats by $0.05, beats on revs; guides Q4 revs and gross margins above consensus


Reports Q3 (Sep) earnings of $0.33 per share, $0.05 better than the First Call consensus of $0.28; revenues fell 8.0% year/year to $9.4 bln vs the $9.04 bln consensus. Intel prelim reports Q3 gross margin 57.6% vs 55.5% consensus and prior guidance to upper half of 51-55% range. Co issues upside guidance for Q4, sees Q4 revs of $9.7-10.5 bln vs. $9.51 bln consensus. Intel guides Q4 gross margin 59-65% vs 56.7% consensus… Full Year Capital spending is expected to be $4.5 billion plus or minus $100 million, down from the prior expectation of $4.7 billion plus or minus $200 million. “Intel’s strong third-quarter results underscore that computing is essential to people’s lives, proving the importance of technology innovation in leading an economic recovery… This momentum in the current economic climate, plus our product leadership, gives us confidence about our business prospects going forward. As we look ahead, Intel’s game-changing 32nm process technology will usher in another wave of innovation from new, powerful Intel(R) Xeon(TM) server platforms to high-performance Intel Core(TM) processors to low-power Intel Atom processors.” From the close of business on Nov. 25 until publication of the company’s fourth-quarter earnings release, Intel will observe a “Quiet Period” during which the Business Outlook disclosed in the company’s news releases and filings with the SEC should be considered as historical, speaking as of prior to the Quiet Period only and not subject to an update by the company… Stock is halted.

Precious metals


The dollar rose steadily before giving back a small portion of its gains on the week. Gold hit all-time record highs on Thursday of $1059.60/oz., while December silver traded to its best levels, at $17.955, since July 22, 2008. At the end of the week, gold closed 4.6% and silver closed 9.6% higher.