Tag Archives: technology

Apple Supplier NXP Semiconductors Earnings Top Ahead Of Apple Report

Apple ( AAPL ) supplier NXP Semiconductors ( NXPI ) late Monday reported first-quarter earnings that fell a little less than estimates, a day before Apple itself is expected to report declining profit and a sharp drop in iPhone sales. NXP Semi gave guidance that was in line to slightly above forecasts. Earnings per share fell nearly 16% to $1.14 a share excluding various items vs. $1.35 a year earlier. Revenue, fueled by acquisitions, climbed about 52% to $2.224 billion from $1.467 billion a year earlier. Economists had expected EPS of $1.09 and sales of $2.21 billion. Comparable revenue fell 11% vs. a year earlier, NXP said, citing “semiconductor industry weakness that accelerated throughout the second half of 2015.” For Q2, NXP Semiconductors sees revenue of $2.295 billion to $2.395 billion, with the midpoint at $2.345 billion. It expects EPS of $1.30-$1.40, with the midpoint at $1.35. Analysts expected EPS of $1.32 and revenue of $2.34 billion. NXP Semiconductors is a leading chip supplier for the Apple iPhone and Samsung smartphones. But it’s also a major supplier of chips for the auto industry, especially after its recent acquisition of Freescale Semiconductor. Auto-related chip sales hit $805 million, up 167% vs. a year earlier on a reported basis, or just 1% with Freescale’s year-earlier results included. But auto-related sales should rise in the “mid- to high-single digit” percentages in Q2, NXP said in its Tuesday morning conference call. NXP is aiming for a long-term gross profit margin of 51%-55 and an operating margin above 30%. In Q1, NXP’s gross profit was 26.8% on a GAAP basis and 50% non-GAAP. Operating profit was -21.2%, or 23.3% non-GAAP. NXP shares jumped 5.3% to 87.75 in morning trade on the stock market today after rising as high as 89.79. Shares closed down 1.2% to 83.34 on Monday, closing just above the 200-day line, where NXP has been finding support lately. Apple fell 0.5% to 104.51 intraday, after falling below its 50-day line intraday. The stock retreated 0.6% to 105.08 on Monday. Analysts expect Apple earnings to fall 14% to $2 a share and sales 10% to $51.97 billion, with iPhone unit sales down 21%. On Monday, NXP investors reacted to news that its chips are not in the latest Apple Retina MacBook, according to an iFixit teardown , after having several chips in the 2015 model. Broadcom ( AVGO ) and Texas Instruments ( TXN ) remain big chip suppliers. Texas Instruments reports earnings on Wednesday. Texas Instruments rose 0.5% Tuesday morning while Broadcom climbed 1.4%.

Verizon Spills Beans On Go90 Video Service, Yahoo, To Analysts

Verizon Communications ( VZ ) aims to expand its ad-supported Go90 mobile video service to multiple video streaming platforms starting by mid-2016, say sell-side analysts briefed at a meeting on Monday. Verizon’s analyst meeting came after Verizon reported Q1 revenue on April 21 that missed estimates . On Monday, Verizon executives discussed a broad range of market opportunities, including offering 5G wireless broadband services by 2020. Verizon has not disclosed how many subscribers it has for Go90, which targets millennials (ages 18 to 34) and Gen Zers (teens). Verizon launched the Go90 service in September. Verizon plans to “extend Go90 from a mobile app to a multiscreen platform in an attempt to drive scale and distribution of advertising from Verizon’s owned content,” said Paul de Sa, an analyst at Bernstein Research, in a report. Go90 provides a mix of original Web TV series, live sports, concert streaming, prime-time TV and more. “By midyear, Go90 will leverage (Verizon-owned) AOL and be available on multiple platforms,” said Macquarie analyst Amy Yong in a research report. Verizon management told analysts that the company plans to expand its digital media strategy with or without Web portal Yahoo ( YHOO ). Verizon, which acquired AOL for $4.4 billion in 2015, has stated its interest in buying part or all of Yahoo. The Internet firm is reviewing offers from Verizon, private equity firms and other entities. By acquiring AOL, Verizon gained both online content and advertising technology . With AOL’s “programmatic” ad technology, Verizon aims to provide advertisers with tools to target users with the most relevant ads based on anonymous subscriber data. Verizon last year also snapped up online ad firm Millennial Media for a reported $250 million. Alphabet ’s ( GOOGL ) Google and Facebook ( FB ) now reap the lion’s share of mobile advertising revenue. Verizon says that the mobile ad market is growing fast, providing room for many companies to grow, and that it doesn’t need Google’s scale to succeed. Verizon told analysts that it does need to “out-google Google,” said Colby Synesael, a Cowen & Co. analyst, in a report. Verizon has around 100 million wireless phone subscribers to target, Synesael said.

T-Mobile ‘Blowout’ Q1 Eases Worry Over Low-Credit Subscriber Base

T-Mobile US ( TMUS )raised 2016 subscriber and cash-flow guidance and reported Q1 revenue that topped views, sending shares in the Uncarrier-branded wireless service provider up. T-Mobile said it earned 10 cents per share in the March quarter, excluding the after-tax impact of a spectrum sale, in line with consensus estimates. T-Mobile reported a 9-cent per share loss in the year earlier period. Revenue rose 11% to 8.6 billion vs. expectations of $8.4 billion in sales. T-Mobile, controlled by Deutsche Telekom ( DTEGY ), has been gaining subscriber and revenue market share vs. Verizon Communications ( VZ ), AT&T ( T ) and Sprint ( S ) for over two years. T-Mobile’s Binge-on free video plan and other promotions in Q1 were expected to keep its momentum going. T-Mobile fell 0.8% to 40.86 in morning trade in the stock market today after rising 2% in premarket trading. T-Mobile rose 2.4% on Monday, hitting a six-month high and nearing the 8 1/2-year high of 43.43 set on Sept. 21. One overhang on T-Mobile stock has been concern that mobile phone financing plans support lower-credit quality customers and that a weakening economy would add company debt. Craig Moffett, an analyst at MoffettNathanson, says worries could be overblown. “T-Mobile’s blowout first-quarter results not only include falling bad debt, but also near record-low post-paid customer turnover,” said Moffett in a report. T-Mobile said it added 2.2 million subscribers in Q1, up from 1.8 million in the year earlier period. Prepaid subscriber additions jumped to 807,000 from 73,000. T-Mobile added 877,000 postpaid phone lines vs. 748,000 a year earlier. “Bad debt declined sequentially, highlighting efforts to improve credit policies,” said Mike McCormack, analyst at Jefferies, in a report. Verizon on April 21 reported Q1 results and said it lost 8,000 postpaid phone subscribers. AT&T reports Q1 earnings after the market close today. Bellevue, Wash.-based T-Mobile raised its 2016 postpaid phone subscriber forecast to 3.4 million at its midpoint of guidance, up from its earlier estimate of 2.9 million. “The net add guidance raise was not all too surprising, since the Street was already projecting 3.6 million for 2016,” said Jennifer Fritzsche, an analyst at Wells Fargo in a report. T-Mobile expects adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to be in the range of $9.7 to $10.2 billion, up from the previous guidance of $9.1 to $9.7 billion.