Tag Archives: technology

Tech Services Firm CDW Outpacing Overall IT Market

Tech services firm CDW ( CDW ) is on a path to outperform the broader information-technology market, RBC Capital Markets said Wednesday. “CDW continues to buck broader IT market trends,” RBC analyst Amit Daryanani said in a research report. Late Wednesday, CDW reported first-quarter sales and earnings that beat Wall Street’s estimates. The Lincolnshire, Ill.-based company earned 67 cents a share excluding items, up 20% year over year, on sales of $3.12 billion, up 13%. Analysts were looking for EPS of 65 cents and sales of $3.1 billion. It was CDW’s fifth straight quarter of double-digit EPS growth and third straight quarter of accelerating sales growth year-over-year. CDW is a value-added reseller of computer gear and provider of tech services. The company maintained its full-year guidance of organic revenue growth 200 to 300 basis points above projected U.S. IT growth of 2% to 3%, as well as double-digit EPS growth, Daryanani said. “Fundamentally, we continue to think CDW remains well-positioned relative to other IT solutions vendors, given ongoing global macro softness,” he said. Daryanani reiterated his outperform rating on CDW stock, with a price target of 46. CDW shares fell a fraction, to 40.48, on the stock market today . The stock is forming a cup-with-handle base, with a 43.21 buy point, but it closed below the key 50-day line for a fifth straight trading day. Baird analyst Jayson Noland on Wednesday reiterated his neutral rating on CDW stock, but raised his price target to 45 from 40. “CDW posted solid Q1 results and reiterated full-year expectations of growth above the broader IT market,” Noland said in a report. “The company continues to execute well despite a cautious demand environment and there is significant runway left for profitable share gains. Given the climate of macroeconomic uncertainty and, more so, valuation, we see risk/reward as balanced at current levels.”

SunPower Reports Q1 Loss; Sales Guidance Lags By $400 Million

Late Thursday, No. 2 solar developer SunPower ( SPWR ) reported Q1 sales that topped Wall Street estimates, but it also posted its first quarterly loss since Q1 2012, and its current-quarter sales guidance lagged Wall Street views by about $400 million. SunPower stock was down 1.5% in after-hours trading Thursday, after the company released its earnings. Shares fell 3.7% in Thursday’s regular session. Last week, top rival First Solar ( FSLR ) reported Q1 sales that lagged Wall Street by about $100 million. For Q1, SunPower’s $433.6 million in sales ex items topped the consensus of 16 analysts polled by Thomson Reuters, but a 30-cent per-share loss minus items was greater than expectations for a 20-cent per-share loss. On a year-over-year basis, sales were flat, and its bottom line swung from a 13-cent per-share profit ex items in the year-earlier quarter. Current-quarter non-GAAP sales guidance for $310 million to $360 million would be down 11% at the midpoint. That fell far short of analysts’ model for $722 million. SunPower didn’t offer an earnings view, but the analyst consensus calls for a 22-cent per-share profit.

After Hours: GoPro, Square, CyberArk, FireEye, Herbalife Earnings

Square ( SQ ), GoPro ( GPRO ), Herbalife ( HLF ),  CyberArk ( CYBR ) and FireEye ( FEYE ) were among those reporting late Thursday. Square Square reported an adjusted net loss of 14 cents a share, missing expectations for a 9-cent per-share loss, as operating costs soared 72%. Revenue grew 51% to $379 million, beating expectations for $343.6 million. Square’s adjusted revenue excludes transaction revenue from its Starbucks ( SBUX ) deal, which is set to expire in Q3. Gross payment volume jumped 45% to $10.3 billion. The mobile payment company raised its full-year adjusted revenue outlook to $615 million-$635 million from $600 million-$620 million previously. Shares 12% late, after closing down 2.5%. GoPro GoPro swung to a loss of 63 cents a share in Q1 from a profit of 24 cents a share last year, missing analyst estimates for a per-share loss of 60 cents. Revenue dropped 50% to $183.5 million, beating projections for $169.1 million. The action camera maker reaffirmed its 2016 revenue guidance of $1.35 billion-$1.5 billion, while analysts have estimated $1.375 billion. Shares initially rose after hours, but reverse to trade down 1%. GoPro fell 6.05% during the regular session. Herablife The nutritional supplements firm earned $1.36 a share in Q1 excluding various items, up 5% vs. a year earlier, defying forecasts for a fifth straight year-over-year decline, to $1.09. Sales rose 1% to $1.11 billion, its first increase in six quarters. Sales rose 11% excluding currency swings. Herbalife also said that talks with the FTC over its marketing are at an advanced stage, saying it expects to pay about $200 million in a settlement. Herbalife sees Q2 EPS of $1.10-$1.20 raised its full-year EPS target to $4.40-$4.75 from $4.05-4.50. Analysts had expected $1.16 in Q2 and $4.65 for 2016. Herbalife stock shot up 14% in after-hours trading to 66.46 on its strong Q1 results and hopes for an FTC resolution. That would be the highest in nearly two years and above a buy point at 63.69. CyberArk Software The cybersecurity company said Q1 earnings grew 44% to 23 cents a share. Revenue grew 43% to $46.9 million, said CyberArk. Management sees Q2 EPS of 18-20 cents on $47.5 million-$48.5 million in revenue, the midpoints of which are above current analyst views for 18 cents a share on $47.5 million. For the year, CyberArk expects EPS of 87-91 cents on $209.0 million-$211.0 million in total revenue vs. forecasts for 87 cents a share on $206.9 million. Shares fell about 4% late after closing up 1.6%. FireEye FireEye announced several leadership shuffles, notably that current President Kevin Mandia will become CEO of the cybersecurity software firm, with current CEO and Chairman David DeWalt becoming executive chairman of the board, effective June 15. In Q1, FireEye lost 47 cents a share, slightly narrower than the prior-year quarter’s 48-cent per-share loss and ahead of views for a 50-cent per-share loss. Revenue rose 34% to $168 million, short of estimates for $171.8 million. Q2 guidance for a loss of 38-40 cents a share and $178 million-$185 million in revenue is worse than views for a 36-cent per-share loss on $192.8 million in revenue. For the year, it sees a per-share loss of $1.20-$1.27 on $780 million-$810 million in sales vs. views for a $1.25 per-share loss and $828.6 million in revenue. Shares sank nearly 7% after hours.