Category Archives: stocks

BroadSoft Stock Falls After Weak Q2 Earnings Guidance

BroadSoft ( BSFT ) early Monday posted Q1 earnings and revenue that topped Wall Street views, but it forecast current-quarter EPS ex items below consensus estimates. BroadSoft stock was down 1% in morning trading in the stock market today , near 38.50, but it had fallen more than 10% earlier. BroadSoft stock broke out of a cup-with-handle base on March 29 at 39.20, but the stock has been testing its 50-day line during the past two trading days. The telecom software maker said it earned 37 cents per share, minus items, in the first quarter, with revenue jumping 31% to $73.1 million. Analysts polled by Thomson Reuters had modeled profit of 26 cents on revenue of $71.7 million. In the current quarter, BroadSoft  forecast EPS  ex items of 25 cents to 40 cents vs. consensus estimates of 44 cents profit. BroadSoft said it expects Q2 revenue of $76 million to $81 million,  vs. analyst expectations of $79.9 million. That’s compared with 43 cents and $43.9 million in Q2 2015. Gaithersburg, Md.-based BroadSoft competes vs. 8×8 ( EGHT ) and RingCentral ( RNG ), as well as much-bigger Microsoft ( MSFT ) and Cisco Systems ( CSCO ). BroadSoft has a highest-possible IBD Composite Rating of 99, putting it among the top 1% of all stocks in such metrics as earnings and sales growth in recent quarters and years. BroadSoft helps big telecoms such as Verizon Communications ( VZ ) and Comcast ( CMCSA ) deliver unified communications , integrating voice, video and text messaging and other forms into a single stream.

Skyworks Growth Threatened By ‘Unfavorable’ Apple iPhone Comparison

Skyworks Solutions ( SWKS ) is “rebuilding” after Apple ‘s ( AAPL ) iPhone flop last quarter but is still looking at double-digit growth in the second half of 2016, MKM analyst Ian Ing wrote in a research note after Apple-supplier stocks broadly toppled last week, when the iPhone maker reported its first-ever year-over-year decline in smartphone sales. In early trading Monday, Skyworks stock was down a fraction, as were shares of radio-frequency chip rivals Broadcom ( AVGO ) and Qorvo ( QRVO ). In early trading on the stock market today , Apple stock was also down a fraction, near 93, and down 10.5% since reporting its March-quarter earnings after the close Tuesday. That day, Apple reported  not only its first-ever year-over-year drop in iPhone sales, but also its first quarterly revenue decrease in 13 years. Skyworks’ Q2 guidance , released late Thursday, slugged that stock when its sales view missed by $50 million. But after just 2% sales growth last quarter, Skyworks expects double-digit growth in September, though strength in China and with Samsung might not be enough to outweigh an “unfavorable” year-over-year iPhone comparison. Last September, Apple sold 13 million iPhone 6S units in three days following the release. Chinese smartphone-makers are facing a largely saturated market, Ing noted. About 45% of China’s mobile phones are on 4G now. Wall Street largely expects a pause as the industry transitions to 5G — but that refresh is still more than a year away. Ing retained his buy rating on Skyworks stock, but he cut the price target to 93 from 98. At least two other analysts rated Skyworks a buy over the weekend.

China’s Web Regulator To Probe Baidu On Medical Claim

China’s Internet regulator said it will probe Baidu ( BIDU ) over the death of a university student who had used the search engine to look for treatment for his cancer. The 21-year-old university student, Wei Zexi, died last month of a rare form of cancer, Reuters reported . Wei had posted criticism online accusing Baidu of promoting false medical information, as well as the hospital for misleading advertising in claiming a high success rate for the experimental treatment, state radio said. The company said it would fully cooperate. In 2010, China’s state-run television accused Baidu of promoting counterfeit drugs through its search engine. U.S. shares of Baidu were down 7.5% in early trading in the stock market today , near 179. Baidu stock broke out of a cup-with-handle base at 189.90 on March 29, but is now down nearly 6% from its breakout. On Friday, however, Baidu stock had touched a four-month intraday high of 201.