Category Archives: stocks

CyberArk Pulls Symantec, Intel, FireEye Onto Platform Bandwagon

CyberArk Software ( CYBR ) launched an alliance Wednesday, tapping FireEye ( FEYE ), Intel ( INTC ) and Symantec ( SYMC ) for what it called tighter best-of-breed integration, which offers an alternative to security platforms from such companies as Palo Alto Networks ( PANW ), Check Point Software Technology ( CHKP ) and Fortinet ( FTNT ). In total, the C3 Alliance has 15 members across cybersecurity, enterprise software and infrastructure. They include  Qualys ( QLYS ), Rapid7 ( RPD ), Varonis Systems ( VRNS ) and Belden ( BDC )-owned Tripwire. CyberArk tech will be integrated into the partners’ software. Megabreaches like that of retailer Target ( TGT ) in 2014 have highlighted the need to secure credentialed accounts, says Adam Bosnian, CyberArk’s executive vice president of global business development. Privileged account protection is at CyberArk’s core. “We saw more and more organizations becoming aware of being exposed by these power accounts,” Bosnian told IBD. The C3 Alliance aims to “solve these challenges and leverage the valuable data that comes off that security.” CyberArk’s technology will be integrated in a variety of ways, Bosnian said. C3 member Tenable Network Security, a continuous monitoring and vulnerability management company, requires credentialed access to perform deep-dive hunting for vulnerabilities, Tenable strategist Cris Thomas told IBD. A hacker needs only one credential to wreak havoc. “When a hacker attacks an organization, they compromise one specific point,” Thomas said. “To move, they need a Zero Day (vulnerability). … The easiest way to do it is to steal credentials. Those are the prized goals of an attacker.” Integrating technology from CyberArk and Tenable lets Tenable’s 20,000 customers store credentialed passwords using CyberArk software, he said. It also gums up any holes existing between the vendors’ software, making intrusion that much more difficult. Bosnian doesn’t foresee “one-off, snowflake” integrations. He sees CyberArk tech, in conjunction with partners’ software, providing a platform-like infrastructure, constantly evolving as new integrations are added to the mix. Customers are still leery of the platform, which might be “best-of-breed in one piece of the platform but not in another,” Bosnian said. The C3 Alliance, however, is comprised of best-of-breed tech woven into one unified solution that shares data bidirectionally, he says. C3 is not a monolithic alliance, he said. “These partners are improving how they use privileged accounts in their environment,” he said. “The real magic is when there are use cases built on top of that to solve real problems. That’s what we’re trying to do.” CyberArk stock was up 2% in midday trading in the stock market today .

Cirrus Logic Beats, But Apple iPhone Slump Dings Skyworks, Qorvo

Cirrus Logic ( CRUS ) stock dodged Apple ’s ( AAPL ) tornado Wednesday, while shares of Apple suppliers Broadcom ( AVGO ), Qorvo ( QRVO ) and Skyworks Solutions ( SWKS ) fell on Apple’s first ever year-over-year decline in iPhone sales. In midday trading on the stock market today , Cirrus Logic stock bounded 6.5%, near 36, after the chipmaker late Tuesday posted fiscal Q4 metrics that declined vs. the year-earlier quarter but still topped Wall Street expectations. The results were similar to fellow Apple supplier NXP Semiconductors ( NXPI ), which late Monday reported consensus-topping Q1 earnings that also fell year over year. Cirrus Logic’s current-quarter guidance lagged analyst consensus on softening iPhone sales . Late Tuesday, Apple said that it had shipped 51.19 million iPhones in the March quarter, down 16% from the year-earlier quarter. Needham analyst Rajvindra Gill cut estimates on Apple suppliers Skyworks and Qorvo ahead of their earnings reports, slated for after the market close Wednesday. Apple’s June-quarter revenue guide for $41 million to $43 million implies 38 million iPhone shipments, Gill wrote in a research report. Analyst consensus currently estimates 44 million iPhone shipments for the June quarter, he wrote. “While we expect iPhone unit shipments to grow seasonally beyond the June quarter, we believe overall shipment levels are likely to be below our prior estimates,” he wrote. He cut his price targets on Skyworks and Qorvo stocks to 70 and 50 from 77 and 54, respectively, but kept his buy ratings. But Gil retained his buy rating and 50 price target on Cirrus Logic stock. Massive Opportunity Outside Apple Cirrus Logic reported $232 million in sales for the quarter that ended March 26 and 38 cents earnings per share ex items, down a respective 9% and 42% vs. the year-earlier quarter. The consensus of nine analysts polled by Thomson Reuters called for $226.2 million and 21 cents. Cirrus Logic wrapped up fiscal 2016 with $1.2 billion in sales and $2.40 EPS minus items, topping Wall Street for $1.16 billion and $2.22. Sales climbed 31% but EPS fell 10%. On a year-over-year basis, portable audio product sales — which would include mobile — fell 11% in fiscal Q4 but rose 34% in fiscal 2016. For the current quarter, Cirrus Logic expects $220 million to $250 million in sales, which at the midpoint would be down 17% and missing expectations for $258 million. But Cirrus Logic is gaining content at Apple, “thus insulating it from potential unit shipment declines,” Gill wrote. Outside Apple, he estimates that Cirrus Logic’s total addressable digital solutions market could reach $420 million over the next four years, up from just $21 million. Besides Skyworks and Qorvo, fellow Apple supplier Texas Instruments ( TXN ) is also slated to post financials late Wednesday. Shares for the three companies were down a respective 1.5%, 2% and fraction midday Wednesday. For fiscal Q2, the consensus of 25 analysts expects Skyworks to report $775.6 million in sales and $1.24 EPS minus items, up a respective 2% and 8% year over year. Wall Street calls for Qorvo to report $600 million in sales and 92 cents EPS minus items for its fiscal Q4, and $2.6 billion and $4.26 for its fiscal 2016. Across the board, every metric would fall vs. the year-earlier period. Texas Instruments is expected to wrap Q1 with $2.98 billion in sales and 62 cents EPS, down 5% and up 2%, respectively.

Boston Scientific Stock Hits 10-Year High After Q1 Beats Estimates

Medical device maker Boston Scientific ( BSX ) popped to a 10-year high Wednesday after it reported a strong Q1 and raised its guidance. Boston Scientific’s adjusted earnings totaled 28 cents in the quarter, up 33% from the year-earlier quarter and beating analysts’ consensus by four cents, according to Thomson Reuters. Revenue rose 11% to $1.96 billion, beating consensus by about $50 million. Boston Scientific added more than $100 million to its full-year revenue guidance range, now $8.08 billion to $8.23 billion, up 9% at the midpoint vs. $7.48 billion last year. It also added two cents to its full-year EPS guidance, now 64 to 69 cents. The company said that its sales in the current quarter should be $2.01 billion to $2.06 billion, up 10.6% at the midpoint from $1.84 billion a year ago and on the high side of consensus. Its earnings guidance of 25 to 27 cents a share was in line with Wall Street’s estimate and up from 21 cents last year. Boston Scientific stock was up 9.5% in morning trading on the stock market today , near 21.50 and hitting its highest point since May 2006. In a research note Wednesday, RBC Capital Markets analyst Glenn Novarro broke down the results. “Cardiovascular revenues of $790 million (+13% year-over-year constant currency) easily topped our estimates and consensus,” he wrote. “We believe cardiovascular results were led by share gains for Synergy (drug-eluting stent) in the U.S., robust adoption of Watchman (left atrial appendage closure device) and strong peripherals sales. “Meanwhile, MedSurg sales of $682 million (+28% year-over-year constant currency, +11% year-over-year organic) also topped expectations, driven by strong Endoscopy results, owing to Spyglass DS (direct visualization system) and the launch of the Axios stent system, and Urology/Women’s Health.” On the downside, Novarro said that cardiac rhythm management sales were light, which he says is due to Medtronic ( MDT ) taking share in the implantable cardioverter defibrillator market. However, Evercore ISI analyst Vijay Kumar wrote that Monday’s approval of a new MRI-safe suite of pacing products should help boost the division. Boston Scientific’s growth has been picking up the last three quarters, helping drive the stock to a strong IBD Composite Rating of 94.