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Apple CEO Tim Cook Ends Stock Slide With Reassuring TV Appearance

Apple ( AAPL ) stock rose Tuesday, a day after CEO Tim Cook appeared on CNBC’s “Mad Money” to discuss the company’s prospects after last week’s disappointing March-quarter earnings report. Apple shares were up 1%, above 94, in midday trading on the stock market today . Before Tuesday, the stock had fallen for eight straight trading sessions, tying its record losing streak. Apple stock has never had nine straight down days, but it has had four eight-day slumps, Bloomberg reported . The last time Apple had eight straight down days was in July 1998, a month before recently returned CEO Steve Jobs introduced the all-in-one iMac computer, the first in a line of hit products that fueled the company’s comeback from near bankruptcy. Cook told “ Mad Money ” host Jim Cramer that the downturn in Apple shares was a “huge overreaction” to the company’s fiscal Q2 report on April 26. “We just had an incredible quarter by absolute standards, $50 billion-plus in revenues and $10 billion in profits,” Cook said. “To put that in perspective, the $10 billion is more than any other company makes. So it was a pretty good quarter, but not up to the Street’s expectations clearly.” Cook acknowledged that iPhone owners are taking longer to upgrade their handsets. The company is facing difficult comparisons to the hugely popular iPhone 6 series, as well as difficult macroeconomic conditions, he said. The smartphone market still holds a lot of opportunity for Apple, especially in emerging markets like India, he said. IPhone In Line For ‘Great Innovation’ Cook hinted at “great innovation” coming in future iPhones that will entice people to upgrade. “We are going to give you things that you can’t live without, that you just don’t know you need today,” Cook said. Cook also talked up Apple’s fast-growing services business, including the App Store, Apple Music and Apple Pay. Cook said concerns about Apple’s prospects in China are overblown. Smartphone sales have slowed there, but Apple is seeing a big increase in switchers from Android phones. Plus, its recently launched iPhone SE, a lower-priced 4-inch smartphone, is selling well, he said. “I could not be more optimistic about China,” Cook said. “I think the long-term thesis is intact.” Cook made veiled comments about upcoming new products that Apple is developing. “We’re fairly secretive. We don’t talk about products that are in the road map,” Cook said. “But I would tell you that we’re incredibly excited about things we’re working on. Incredibly excited. And so I don’t want to be more specific than that.” Sterne Agee CRT analyst Rob Cihra on Tuesday reiterated his buy rating on Apple stock with a price target of 135, despite the company’s challenges in China. “China flipped from Apple’s biggest tailwind to headwind last quarter,” he said in a research report. “Yet we do not see China’s slowdown as Apple-specific nor competitive.” Apple is facing difficult comparisons to huge growth from the iPhone 6 launch in China, especially from leading wireless carrier China Mobile ( CHL ), Cihra said. Apple’s sales in China fell 26% year over year in the March quarter. “The math hurts, as China accounted for 26% of revenue in calendar year 2015 and was responsible for 43% of Apple’s entire growth calendar years 2011-2015.” RELATED: Has Apple Lost Its Mojo? Epic Stock Slide Continues For Eighth Day Apple’s PC Market Share Hits New High; Windows Notches Fresh Low

Four Notable Tech Stocks With Earnings After Close Worth Watching

Earnings reports are on tap for Paycom Software ( PAYC ), Rubicon Project ( RUBI ), Zendesk ( ZEN ) and Zillow Group ( ZG ) after the market close Tuesday, and all sport long streaks of double-digit, or higher, sales growth. Earnings reports can often create big stock moves, up or down, depending on whether the company misses or beats Wall Street’s expectations, and whether its outlook for the upcoming quarter and year beat or miss expectations. Paycom is expected to report revenue of $83.4 million, up 51% year over year and maintaining a string of double-digit gains going back more than four years. The consensus on earnings per share minus items is 20 cents, up 67%. Paycom provides a cloud-based employment management platform with a software-as-a-service business model, with customers buying the software as needed. The company came public in April 2014. Paycom has a strong IBD Composite Rating (CR) of 96 and the highest-possible EPS Rating of 99. Credit Suisse analyst Michael Nemeroff has an outperform rating on Paycom stock, and price target of 43. “We believe that Paycom is well positioned to deliver strong revenue growth over the next two years,” Nemeroff  wrote in an earnings preview report. Paycom stock was near 38, down 2.5%, in morning trading in the stock market today . Rubicon Revenue Could Cross At 60% Gain Rubicon Project is expected to report revenue of $59.4 million, up 60% and maintaining double- or triple-digit revenue growth going back more than four years. The EPS consensus minus items is 3 cents, vs. 2 cents last year. Rubicon made its IPO in April 2014. It provides an online platform that helps optimize digital ad buying, selling and placement. The stock has a strong 98 CR and an EPS Rating of 80. RBC Capital Markets analyst Andrew Bruckner rates Rubicon stock outperform, with a price target of 22. Rubicon stock was near 19.70, flat, Tuesday morning. Zendesk Also Growing By Double-Digit Percentages Zendesk is expected to report revenue of $63.9 million, up 51% and maintaining a string of double- and triple-digit revenue growth going back more than four years. The consensus on EPS minus earnings is a 10-cent loss. The company, which came public in May 2014, has yet to show a profit. On Monday, Zendesk announced it hired a new chief financial officer, Elena Gomez, who previously was senior vice president of finance and strategy for Salesforce.com ( CRM ). Zendesk is a cloud-based provider of customer service software. The stock has a CR of 64 and EPS Rating of 46. Rosenblatt Securities analyst Kirk Adams rates Zendesk stock a buy, with a price target of 25. “We anticipate a solid report and positive commentary on the recently completed quarter and their future prospects,” Adams wrote in an earnings preview. Zendesk stock was near 23, down 2%, Tuesday morning. Zillow Seen Swinging To A Loss Zillow Group is expected to report earnings of 176.6 million, up 39% and maintaining double or triple digit growth going back more than four years. The EPS consensus is a 9-cent loss, swinging from a 5-cent profit in the year-earlier quarter. Zillow, the leading real estate website, came public in July 2011. The stock has a CR of 54  and EPS Rating of 50. Cowen analyst Thomas Champion has an underperform rating on Zillow and a price target of 12. Zillow stock was near 25.50, down 2%, Tuesday morning.

Qualys ‘Health’ Questioned After Q1 Billings, Deferred Revenue Miss

Qualys ( QLYS ) stock tumbled Tuesday on jitters that missed estimates for Q1 billings and deferred revenue could indicate slowing vulnerability-management sales, a Summit Research analyst suggested. In morning trading on the stock market today , Qualys stock was down 3.5% to near 25, piercing its 50-day line. Late Monday, the cybersecurity firm reported Q1 sales and earnings that topped Wall Street expectations, but offered soft current-quarter views. Qualys reported 21 cents earnings per share minus items on $46.2 million in sales, up 40% and 23%, respectively, vs. the year-earlier quarter. Analysts had modeled 15 cents and $45.1 million. Current-quarter sales guidance for $47.6 million to $48.3 million met the consensus of 16 analysts polled by Thomson Reuters at the midpoint, but the EPS outlook for 15-17 cents entirely missed analysts’ 18 cents. Robert W. Baird analyst Steven Ashley downgraded Qualys stock to neutral from outperform, but Credit Suisse analyst Sitikantha Panigrahi kept his outperform rating and 35 price target on the shares. Q1 billings of $48.3 million decelerated to 9% year-over-year growth and missed the consensus for $51.6 million, Panigrahi noted in a research report. On the company’s earnings conference call with analysts, CEO Philippe Courtot blamed the billings weakness on an altered contract with an unidentified managed security service provider (MSSP) and said some Q1 deals had slipped into Q2. MSSP deals are lengthening, which changes the way Qualys looks at deferred revenue, Courtot said. Deferred revenue came in at $101.6 million, up 15.5% year over year. Billings and deferred revenue are important “health” indicators for software-as-a-service (SaaS) providers like Qualys, Summit Research analyst Srini Nandury wrote in a report. Nandury reiterated his buy rating and 35 price target on Qualys stock. Yet he wrote that “we are a bit concerned the slowing could indicate the core business is slowing, or the upsell/cross sell could not be working as well as it should.” Courtot, however, said he expects Qualys to outgrow the vulnerability-management market on share gains and upsell opportunities. IDC forecasts 10% year-over-year growth in that market, which is Qualys’ bread and butter.