Tag Archives: technology

SunEdison Bankruptcy May Torch $20.9 Mil Owed Trina Solar, JA Solar

SunEdison’s bankruptcy could incinerate $20.9 million owed to Chinese suppliers JA Solar ( JASO ) and Trina Solar ( TSL ), Credit Suisse analyst Patrick Jobin noted Monday, as the U.S. Bankruptcy Court granted SunEd some relief. Under SunEd’s Chapter 11 bankruptcy , filed Thursday, the solar developer will be allowed to pay employees wages and benefits, work on continuing projects and make “certain vendor payments,” SunEd said in a press release. But the ruling doesn’t specify whether SunEdison will make payments on about $322 million owed to trade suppliers, ranging from polysilicon production to cell/module suppliers. In total, SunEdison owed $11.7 billion as of Sept. 30, the company’s last financial filing. JA Solar and Trina Solar are among SunEd’s suppliers of solar cells and solar modules. SunEdison owes the duo $10.4 million and $10.5 million, respectively, Jobin wrote in a research report. “These are not trivial amounts, potentially impacting full-year earnings 6.6%-11.8% in a ‘worst case’ scenario of not receiving payments,” he wrote. He estimated Trina Solar’s earnings per share could drop nearly 9 cents to 32 cents from 41 cents, and JA Solar could lose 18 cents on its earnings, falling to 43 cents from 61 cents. JA Solar and Trina Solar stocks split Monday on Wall Street. JA Solar stock closed up a fraction, with Trina Solar stock slipping a fraction.

Will Twitter Show A Reversal In User Declines With Q1 Earnings?

Under pressure from slowing user growth, Twitter ( TWTR ) is set to report first-quarter earnings after the market close Tuesday. It’s a busy week for social networking stocks, with Facebook ( FB ) reporting Wednesday and LinkedIn ( LNKD ) on Thursday. Twitter reports during a rough period for the company. Revenue growth has declined year over year for the past six quarters, and user growth has declined the past four quarters. Analysts polled by Thomson Reuters expect Twitter to report Q1 revenue of $607.8 million, up 39% year over year, with earnings per share minus items rising 43%, to 10 cents. RBC Capital Markets analyst Mark Mahaney said data from research firm ComScore was “slightly negative” for Twitter, indicating a slowdown in unique visitors from Q4. He also said a survey of ad professionals conducted by RBC and Ad Age showed mixed results for Twitter. “We are incrementally more cautious on the stock’s prospects as a result,” wrote Mahaney, who has a sector perform rating on Twitter stock and a price target of 23. Since Twitter reported Q1 2015 earnings that revealed trouble ahead, the stock has plunged to 17 from 51. Twitter stock closed Monday at 17.09, down a fraction. In Q4, average monthly active users at Twitter rose 9% year over year, to 320 million, about 3 million less than Wall Street had expected. The Q4 growth was the same as Q3. Growth has cooled from 18% in Q1 2015, 15% in Q2 and 11% in Q3. The slowdown continues despite a series of new features Twitter has rolled out in the past year, including video tool Periscope and Moments. The company has overhauled management, starting with the return of co-founder Jack Dorsey as CEO in October. Dorsey is also the founder and CEO of payment processing firm Square ( SQ ). Facebook Q1 earnings come after the close Wednesday. The consensus on Facebook revenue is $5.25 billion, up 48%. Analysts expect EPS ex items to hit 62 cents a share, also up 48%. LinkedIn reports after the close Thursday. The stock bombed 44% to a three-year low after LinkedIn posted Q4 earnings on Feb. 5, as Q1 guidance widely missed estimates. LinkedIn acknowledged that a reshuffling of product strategy will impact short-term revenue growth in favor of the long term. The consensus on revenue is $829.5 million, up 39%. EPS is figured at 60 cents, up 5%.

How Charter Broadband Conditions May Set Bar For Comcast

Charter Communications ( CHTR ) will not be allowed  to charge data usage-based prices or impose data caps on broadband customers for seven years as part of proposed conditions set by federal regulators  for its acquisition of Time Warner Cable ( TWC ). Whatever conditions Charter agrees to might set the bar for Comcast ( CMCSA ) down the road, analysts say. The Department of Justice on Monday cleared Charter’s purchase of TWC, while the Federal Communications Commission moved closer to approval.  FCC Chairman Tom Wheeler is circulating proposed conditions to the five-member agency. California regulators are expected to green light the purchase in mid-May. Charter snapped up TWC after regulators thwarted Comcast’s takeover of Time Warner Cable in early 2015. Conditions set on the Charter-TWC deal might have implications for Comcast if it seeks another major acquisition, such as acquiring T-Mobile US ( TMUS ) or Sprint ( S ). Comcast has filed to be a possible bidder in a government auction of radio spectrum owned by local TV stations. That auction began in late March. Comcast has been testing data caps in an increasing number of markets. “New Charter will not be permitted to charge usage-based prices or impose data caps,” Wheeler said in a statement. “Second, New Charter will be prohibited from charging interconnection fees, including to online video providers, which deliver large volumes of internet traffic to broadband customers.” Video streamer Netflix did not oppose Charter’s purchase of TWC, but it had lobbied against the Comcast-TWC deal. Charter can’t strike agreements with programmers that would make it more difficult for streaming services like Netflix ( NFLX ) to obtain content, according to a DOJ filing in federal court. Charter has also agreed to buy privately held Bright House Networks. The two deals would make Charter the No. 2 cable TV firm behind Comcast.