Author Archives: Scalper1

Box Benefits From IBM Deals; More To Come With Microsoft?

IBM ( IBM ) is helping Box ( BOX ) notch some big deals, analysts say, and Box’s partnership with Microsoft ( MSFT ) could also provide a lift. Box stock gapped up 15% at the open in the stock market today , nearly touching a 14.62 buy point out of a cup base. But in morning trading Thursday, Box stock was up just 2.5%, below 13. The online data storage and file-sharing service provider late Wednesday posted a narrower-than-expected fiscal Q4 loss, as revenue growth of 36% topped expectations. Box said that it had closed 13 customer deals valued at more than $500,000 each in the three months that ended Jan. 30, up from nine such deals in the year-earlier period. Box also said that it had closed 66 deals valued over $100,000 each, up from 57 in the year-earlier period. “The IBM partnership showed early signs of traction with a few of the largest deals in the quarter,” said Richard Davis, an analyst at Canaccord Genuity, in a research report Thursday. Box partnered with IBM in June 2015 to develop new applications and jointly market products and services. The companies expanded their partnership in December. “Box beat fiscal Q4 estimates with continued momentum in enterprise, strong traction with IBM and better-than-anticipated upsales of (content management product) governance,” said Rob Owens, an analyst at Pacific Crest Securities, in a report. Box competes with Microsoft, though it’s now a partner for Office 365 products as well. It also counts as rivals  Alphabet ’s ( GOOGL ) Google, privately held Dropbox,  Amazon.com ( AMZN ) and others. At Credit Suisse, analyst Philip Winslow said in a report last week, “We remain encouraged by the growing traction of Box’s new products in addition to its partnerships with IBM and Microsoft.” Wrote Pacific Crest’s Owens: “We believe enterprise traction is improving as companies see a need for a unified content management platform across cloud applications, which is helped by technology integrations with Office365 and Salesforce ( CRM ).”

AT&T, Comcast Could Add Pay-TV Subscribers In 2016

Phone company  AT&T ( T )  shed TV subscribers for the first time in 2015, says a Leichtmann Research Group report, but AT&T’s acquisition of satellite broadcaster DirecTV will be a difference maker this year, says AT&T’s chief financial officer. AT&T acquired DirecTV in July and has been rolling out new bundles of wireless and video services. Pay-TV providers overall lost 345,000 customers in 2015, says LRG. AT&T’s landline U-verse service accounted for most, shedding 303,000 subscribers, LRG says. DirecTV added 167,000 subscribers in 2015, thanks to a strong December quarter. In Q4, DirecTV added 214,000 U.S. subscribers, but AT&T lost 240,000 U-verse landline TV customers. AT&T says its new wireless-video bundles are gaining traction. “We are expecting video net adds this year,” John Stephens, AT&T’s CFO, said at a   Deutsche Bank conference on Wednesday. Verizon Communications ‘ ( VZ ) FiOS landline TV service gained 178,000 subscribers in 2015, says LRG while cable TV companies combined lost 345,000. Comcast ( CMCSA ), the nation’s biggest cable TV firm, lost 36,000 video subscribers last year but in Q4 added 89,000, marking its best quarter in nine years. Comcast’s Xfinity set-top boxes have provided a boost. Some analysts forecast that Comcast will be net positive in 2016. At a Morgan Stanley conference on March 1, Comcast CEO Brian Roberts signaled that it could have a strong Q1, 2016.

Canadian Solar Topples On Disappointing Q1, 2016 Sales Outlook

Canadian Solar ’s ( CSIQ ) Q4 growth spurt could be short-lived. The solar panel maker early Thursday guided to Q1 and 2016 sales that missed analysts’ expectations and would be less than year-earlier metrics. In early trading on the stock market today , Canadian Solar stock gapped down as much as 10% before settling down 8%, near 20. Shares now are down 31% for the year even after rising nearly 50% in the latter half of February. For Q4, Canadian Solar reported $1.05 earnings per share ex items on a record $1.12 billion in sales, down 22% and up 17%, respectively, vs. the year-earlier period. Total shipments busted another record at 1.43 gigawatts, up 27%. Sales and EPS topped the consensus of nine analysts polled by Thomson Reuters for $1.04 billion and 76 cents. Last month, Canadian Solar upped its guidance to $1.02 billion to $1.07 billion and 1.35 GW to 1.4 GW. The bottom line improved from 72% and 62% year-over-year declines in Q3 and Q2, respectively. Canadian Solar wrapped up 2015 with $3.47 billion in sales, up 17%, and $2.93 EPS minus items, down 29%. Both measures beat the consensus model for $3.38 billion and $2.62. The company previously guided to $3.35 billion to $3.4 billion in sales. Total shipments reached 4.7 GW, growing 51% and topping the Canadian Solar’s guidance for 4.63 GW to 4.68 GW. But Q1 and 2016 guidance lagged the consensus, indicating Canadian Solar’s Q4 success might not repeat this quarter. IBD’s Energy-Solar industry group, however, was flat in early trading Thursday, and industry leaders First Solar ( FSLR ) and SunPower ( SPWR ) were up a fraction and down a fraction, respectively. For the current quarter, Canadian Solar guided to $645 million to $695 million in sales and 1.085 GW to 1.135 GW in solar module shipments, down 22% and 10%, respectively, at the midpoints of guidance. The sales guide fell well short of the consensus for $803 million. Analysts model a 59% year-over-year decline in EPS ex items at 43 cents. It would be Canadian Solar’s fourth consecutive quarter of declining EPS. And Canadian Solar’s 2016 sales outlook for $2.9 billion to $3.1 billion fell far short of consensus expectations for $3.69 billion and would be down 13.5% at the midpoint of guidance. Total shipments of 5.4 GW to 5.5 GW would be up 16%. Analysts expect EPS ex items to climb 4% to $3.06 in 2016. The company doesn’t give EPS guidance. Image provided by Shutterstock .