Tag Archives: request

Before Tesla Motors Reports Earnings, You Need To Know This

Now that it’s impressed the world with higher-than-expected demand for its new Model 3, Tesla Motors ( TSLA ) is set to report its quarterly results after the close on Wednesday. Analysts expect the luxury electric car maker’s per-share loss to widen to 57 cents amid production and Gigafactory investments. Revenue is projected to jump 45% to nearly $1.6 billion. The jump marks a third straight quarter of faster top-line growth. Tesla cleared a cup-with-handle base with a 239.98 buy point on April 1. Shares continued to climb the next few days but have pulled back, briefly undercutting the buy point Friday intraday. Positive results could potentially send shares to their highest level this year, while negative results could send the stock back to its 200-day and 50-day lines, which are close to converging. Meanwhile, Tesla partner Mobileye ( MBLY ) reports before the open on Thursday. The maker of advanced driver assistance systems is also working with other automakers on their autonomous and semi-autonomous car efforts. Earnings are projected to pop 75% while revenue increases 61%. Mobileye stock is trading about 40% below its all-time high reached last August, but the stock has rallied sharply from its February low. And Tesla chip supplier Nvidia ( NVDA ) is extended 8% from a cup-with-handle base buy point initially cleared in March. Nvidia shares are dropping 2% in quick trade Friday, ahead of its quarterly report on May 12.

Skyworks Guidance Lags By $50 Mil On Petering Apple iPhone Demand

Apple ’s ( AAPL ) “iPhone drag” tugged Skyworks Solutions ’ ( SWKS ) fiscal Q3 guidance by $50 million late Thursday, prompting shares of radio-frequency chip rivals Broadcom ( AVGO ) and Qorvo ( QRVO ) to topple early Friday. Skyworks stock led a broad Apple chip sphere fall, down 4.5%, near 68, in morning trading on the stock market today . Shares of competitors Broadcom and Qorvo were down a respective 2% and 2.5%. NXP Semiconductors ( NXPI ), Qualcomm ( QCOM ) and InvenSense ( INVN ) stocks followed, down 1%, 3% and 4%, respectively. Apple stock was down 2%. For its fiscal Q2, which ended April 1, Skyworks reported $775.1 million in sales and $1.25 earnings per share minus items, in line and topping the consensus of 25 analysts polled by Thomson Reuters for $775.6 million and $1.24. But EPS slipped to single-digit growth for the first time in 13 quarters, rising 9% year over year. Sales rose 2%, in the single-digit range for the first time in 14 quarters. Both metrics have decelerated for five consecutive quarters. Current-quarter guidance for $750 million in sales and $1.21 EPS ex items would be down 7% and 10%, respectively, vs. the year-earlier quarter. On a year-over-year basis, sales have never declined in the past five years. EPS has declined twice, but this quarter’s decline would be the biggest. And both metrics lagged the consensus for $800.5 million and $1.32. Mizuho analyst Vijay Rakesh blamed the “iPhone drag” for Skyworks’ weak guidance. On Tuesday, Apple reported its first year-over-year decline in iPhone sales and its first quarterly revenue drop in 13 years. Apple CEO Tim Cook said Tuesday that the company planned to cut channel inventories in the June quarter “in light of the macroeconomic environment.” Late Tuesday, supplier Cirrus Logic ( CRUS ) offered Q3 guidance that also missed Wall Street views. But Skyworks expects a strong September quarter, with 20% and 40% content gains at Samsung and Huawei. On average, Chinese smartphones are growing content by 20% year over year, Rakesh wrote in a research report. Rakesh cut his price target on Skyworks stock to 99 from 105 but reiterated a buy rating. Cowen analyst Timothy Arcuri estimates that 40 million to 50 million iPhones will be sold in the June quarter, leading to better upside in Skyworks’ fiscal Q4. But he adds that Qorvo might be a stronger RF competitor now. Both analysts suggest that Skyworks look to diversify amid the slowing Chinese and iPhone markets. Arcuri reduced his price target on Skyworks stock to 76 from 78 and kept his market perform rating.

Medivation Rejects Sanofi’s Buyout Bid; Sanofi ‘Remains Committed’

Biopharma firm Medivation ( MDVN ) rejected a $9.3 billion buyout proposal from big French pharma Sanofi ( SNY ) Friday morning, saying the offer undervalues the company. Medivation’s board unanimously voted against Sanofi’s bid of $52.50 a share in cash, which Sanofi first made by private letter on April 15 but made public on Thursday when it failed to get a response. Although that was around where Medivation was trading at the time, Sanofi said the stock has been pushed up lately by buyout rumors (including a report that AstraZeneca ( AZN ) is also interested), and that its offer is 50% higher than Medivation stock’s average price over the two months before the rumors surfaced. Medivation founder and CEO David Hung, however, claimed the price was unreasonably low due to the broad sell-off in drug stocks over the last eight months. “Sanofi’s opportunistically-timed proposal, which comes during a period of significant market dislocation, and prior to several important near-term events for the company, is designed to seize for Sanofi value that rightly belongs to our stockholders,” Hung said in a statement. Medivation stock bottomed at 26.41 on Feb. 9, a 63% drop from its then-52-week high set the previous March. In early trading on the stock market today , Medivation stock was down a fraction, near 56. Sanofi issued a brief response Friday promising to press on. “While to date Medivation has chosen not to enter into discussions regarding this value-creating transaction, Sanofi remains committed to the combination and looks forward to engaging directly with Medivation shareholders with regard to our proposal,” it said. Sanofi stock was down 4% in early trading Friday, near 41.