Tag Archives: technology

Tesla Partner Nvidia’s Q1 Sales Seen Speeding Faster Than Most

Wall Street expects Tesla Motors ( TSLA ) partner Nvidia ( NVDA ) to post double-digit sales growth for just the second time in the past six quarters, as well as its biggest earnings growth in five quarters, when the company reports Q1 earnings Thursday. Nvidia stock has zoomed since Feb. 12, up 40% since  Facebook ( FB )-owned Oculus Rift released its first virtual-reality headset. Nvidia and rival Advanced Micro Devices ( AMD ) are the recommended graphics-chip providers for laptops that work with the headsets. Nvidia stock rose a fraction Wednesday to 36.06 ahead of its Q1 report due after the close. For Q1, the consensus of 26 analysts polled by Thomson Reuters expect Nvidia to report $1.26 billion in sales and 32 cents earnings per share ex items, up a respective 10% and 33% vs. the year-earlier quarter. Sales would decelerate from 12% growth in Q4 but top the four previous quarters. Earnings last climbed above the 30%-growth mark in March 2015. Nvidia’s Q1 report comes a week after the chipmaker and Samsung called for a truce  in their two-year licensing battle. It also follows Tesla CEO Elon Musk’s call for the automaker to manufacturer 1 million electric vehicles by 2020 — a boon to Nvidia, whose chips power digital instrument and infotainment displays in the Model S. Tesla’s yet-to-be-released  Model 3 was marked by “overwhelming demand” when it began taking preorders in April, Musk and Tesla CFO Jason Wheeler told shareholders this month.

Amazon Poised To Become No. 1 U.S. Apparel Retailer By 2017

E-commerce leader  Amazon.com ( AMZN ) will become the No. 1 U.S. apparel retailer next year, investment bank Cowen predicted Wednesday. Cowen analyst John Blackledge said recent earnings reports by Amazon and Macy’s ( M ) painted a clear picture. “In light of Amazon and Macy’s recent results, we feel more confident that Amazon will displace Macy’s as the No. 1 U.S. apparel retailer by 2017,” Blackledge said in a research report. “Amazon’s Apparel & Accessories business is one of the key drivers of Amazon’s EGM (electronics and general merchandise) segment.” Amazon’s success in the apparel category is being driven by a dramatically larger selection, ramping brand relationships, superior fulfillment and technology innovations. Amazon is growing in the clothing business, while traditional retailers such as Wal-Mart ( WMT ) and Target ( TGT ) are in decline, Blackledge said. In the first quarter, the number of Amazon apparel purchasers increased 19% year over year, while apparel buyers at Wal-Mart and Target fell 1% and 5%, respectively, he said. “The longer-term trend also reflects a share shift in apparel purchasers, with Amazon apparel purchaser growth of 28% each quarter (on average) since 2014, while apparel purchasers fell 4% and 3% at Wal-Mart and Target,” he said. “In Q1, Amazon had 15% more apparel purchasers than Wal-Mart (vs. 24% fewer in Q1 2014) and 37% more apparel purchasers than Target (vs. 4% more in Q1 2014).” Macy’s on Tuesday reported soft Q1 sales and slashed its full-year forecast, sending its stock diving to a four-year low Wednesday. The Cleveland-based company said its first-quarter sales fell 7.4% year over year to $5.77 billion. Analysts on average were looking for $5.93 billion in sales. For 2016, Macy’s now expects same-store sales to fall 3% to 4%, compared with its prior guidance for a 1% decline. Macy’s stock was down 14%, below 32, in afternoon trading on the stock market today . Amazon stock was up 1.5%, near 716. On April 28, Amazon reported its highest sales growth in nearly four years . Its Q1 revenue jumped 28% to $29.1 billion, ahead of the $28 billion view.

Apple Suppliers Blame ‘Tepid’ iPhone 7 Demand On Lack Of Innovation

Taiwan Semiconductor Manufacturing ( TSM ) will grow 4% in 2016, missing projections for 5%-10% growth, as Apple ( AAPL ) cuts its iPhone 7 orders June through December, a source told the Nikkei Asian Review on Wednesday. Nikkei’s report comes on the heels of disappointing June-quarter guidance from Apple suppliers Skyworks Solutions ( SWKS ), Cirrus Logic ( CRUS ) and InvenSense ( INVN ). Tuesday, TSM reported Q1 sales that missed by $30 million and dipped 13% year over year. In afternoon trading on the stock market today , Taiwan Semi stock was down a fraction, near 23. June through December, TSM’s chip shipments will shrink to 70%-80% of year-earlier levels, sources told Nikkei. TSM is now projected for “tepid” 4% year-over-year sales growth and flat operating profits in 2016. In 2015, sales rose 7.5% to $25.95 billion. “Suppliers are saying that they are getting fewer orders for the second half of this year compared with the year-ago period,” a source told Nikkei. “The traditional peak season this year will not be able to compare to the past few years.” The report jibes with worries of a slowdown in smartphone sales. Last month, Apple missed its March-quarter Q2 sales for the first time in 13 years and guided its June-quarter sales down 15%-19% sequentially, which is the seasonal norm. The only Chinese smartphone makers showing healthy growth are Huawei and Oppo, the source said. Apple CEO Tim Cook has said his company plans to lower its channel inventories by $2 billion in the June quarter “in light of the macroeconomic environment.” Apple has tapped TSM as the sole source of its A10 processor for the iPhone 7, expected for release in September. Last year, TSM and South Korean rival Samsung both supplied the A9 processor for the iPhone 6S. About 16% of TSM’s sales stem from Apple. Nikkei estimates Apple will ship more than 200 million iPhones this year, down from 230 million in 2015. A source with a major Taiwanese supplier blamed the lack of innovation in the iPhone 7 for the weak demand, Nikkei reported.