Author Archives: Scalper1

Texas Instruments Beats Q1 Views Despite Apple iPhone ‘Shortfall’

Texas Instruments ( TXN ) joined NXP Semiconductors ( NXPI ) and Cirrus Logic ( CRUS ) late Wednesday, weathering an  Apple ( AAPL ) iPhone shipment dip by bolstering embedded-processing sales to top Wall Street’s first-quarter expectations. On Thursday, at least eight analysts boosted their price targets on Texas Instruments stock. On the stock market today , Texas Instruments shares were up a fraction intraday. The stock has been on a run since Jan. 15, climbing 25% after a two-week fall. NXP and Cirrus Logic stocks split the difference in Thursday trading, up 0.2% and down 2.1%, respectively. Skyworks Solutions ( SWKS ) and Qorvo ( QRVO ) were up 1.6% and 0.3%, respectively, after Apple reported its first ever year-over-year iPhone shipment decline late Tuesday. For the first quarter, Texas Instruments reported $3.01 billion in sales and 65 cents earnings per share, down 5% and up 7%, respectively, vs. the year-earlier quarter. Both measures topped the consensus of 36 analysts polled by Thomson Reuters for $2.98 billion and 62 cents. Analog sales — which includes power management chips used in the iPhone 6S — declined 8% year over year to $1.88 billion. The drop was expected MKM analyst Ian Ing wrote in a research report. Apple comprised 15% of Texas Instruments’ 2015 sales. “While the year-over-year shortfall in smartphones was $150 million, the inclusion of (a) weak PC (segment) results in an even greater shortfall,” he wrote in a research report. “The year-over-year revenue gap is expected to decline somewhat in June, but still be significant.” Embedded-processing revenue grew 8% vs. the year-earlier quarter to $729 million in sales. Sales of custom integrated circuits drove a 10% year-over-year decline in Texas Instruments’ other sales. Texas Instruments’ current-quarter guidance for $3.07 billion to $3.33 billion in sales and 67 cents to 77 cents EPS would be flat and down 1%, respectively, on a year-over-year basis. But that outlook topped analyst views for $3.18 billion and 71 cents at the midpoints. Credit Suisse analyst John Pitzer noted that Texas Instruments is “consistently executing on consistent execution.” He boosted his price target on Texas Instruments stock to 65 from 60, but reiterated his neutral rating. During Q1, Texas Instruments hit a record 60.6% gross margin. Pitzer and RBC analyst Amit Daryanani expect that to continue, driven by better manufacturing gains, improved mix and impressive execution. Daryanani upped his price target on Texas Instruments stock to 68 from 65, but kept his outperform rating.

Bristol-Myers Hits 17-Year High On Q1 Report; Celgene Also Up

Big-cap drug stocks Bristol-Myers Squibb ( BMY ) and Celgene ( CELG ) were both rising after their Q1 earnings reports early Thursday, though Celgene initially dropped as it delivered a long-expected guidance cut. Bristol-Myers reported earnings of 74 cents a share, minus one-time items, up 4% from the year-earlier quarter and beating analysts’ consensus by nine cents, according to Thomson Reuters. Revenue rose 9% to $4.39 billion, about $140 million above Wall Street’s average estimate. Bristol-Myers added 20 cents to its full-year EPS guidance, now $2.40 to $2.60. It expects revenue to grow in the low double-digit range, which would be the first time since 1997 that annual sales gained that much. Recently launched cancer drug Opdivo beat sales estimates by a substantial margin — $704 million vs. analysts’ $587 million — up from just $40 million in the year-earlier quarter. Anti-clotting drug Eliquis also handily beat expectations, with sales more than doubling to $734 million. Bristol-Myers stock was up more than 3% in  afternoon trading on the stock market today , near 72.50, its highest point since October 1999. Celgene Sales Lag Expectations, But EPS Beats Celgene, meanwhile, reported Q1 sales of $2.51 billion, a 21% gain on last year’s Q1 but almost $60 million below consensus. On the other hand, EPS beat estimates by five cents, rising 23% to $1.32. Celgene added 10 cents to its full-year earnings guidance, now $5.60-$5.70 a share, and raised the low end of its product-sales guidance to $10.75 billion-$11 billion. However, it trimmed its 2017 guidance to account for foreign-exchange headwinds. It now expects sales of $12.7 billion to $13 billion, vs. $13 billion-$14 billion previously. Celgene also cut its EPS target to $6.75-$7.00 from $7.25. The company affirmed its previously issued 2020 guidance. Celgene stock dropped in early trading but was up more than 2%, above 108, by early afternoon Thursday. Wall Street had anticipated the 2017 guidance cut. “Investors will be looking for an update on 2017 guidance following the $700 million to $800 million FX headwind on top-line revenues mentioned on their 4Q 2015 call,” wrote Evercore ISI analyst Mark Schoenebaum in a preview note Wednesday. “Celgene neither revised nor reaffirmed 2017 guidance at that time and may provide an update to their current guidance.” On the conference call with analysts Thursday, Celgene’s management said that on a constant-currency basis, financials are tracking to hit their original targets.