Tag Archives: tsla

AT&T, Verizon Reach Stock Buy Points; High-Rated Nvidia Rockets

Loading the player…   After three straight up days for the stock market through midweek, some top-rated tech stocks are flashing buy signals, and others are on the move. Graphics chip maker Nvidia ( NVDA ) jumped as much as 12% early Thursday after the Tesla Motors ( TSLA ) partner blew past estimates for the fourth quarter, as well as beating on guidance, with its Wednesday afternoon earnings report . Heading toward the closing bell Nvidia stock was up almost 9% for the day, near 30. The company gets a strong 93 Composite Rating out of a possible 99 from IBD, and while not yet in buy range, it is moving in the right direction. Wednesday, the company said Facebook ( FB ) and Alibaba Group ( BABA ) will use its accelerator technology for machine learning, an aspect of artificial intelligence. The S&P 500 index was down fractionally approaching Thursday’s closing bell, tempering the stock market rally this week. Telecoms Grab Top Ratings Sole IBD Leaderboard tech stock  AT&T ( T ) climbed into buy range above 36.55 as of Tuesday, from a recent base. It was up almost 1% ahead of the closing bell in the stock market today , near 37. Fund managers have increased holdings, drawn partly by AT&T dividends and the company’s stability as a defensive play. It gets a best-possible IBD Composite Rating of 99. That other big telecom, Verizon ( VZ ), also has a high dividend and gets a best-possible Composite Rating from IBD. Up more than 1% in afternoon trading, it rose into buy range today, just above a 50.96 buy point. Near the closing bell Verizon flirted with that number. It’s on IBD’s Big Cap 20 list, as is cable giant Comcast ( CMCSA ), expected to bid for wireless spectrum in a March FCC auction. Comcast could become a significant wireless provider, Mobilocity analyst Gerry Purdy said Wednesday. It’s about 9% under a buy point and was trading near 57 Thursday afternoon, down a fraction. Research this week from S&P Capital IQ analyst Lindsey Bell pegs telecom services as the leader in terms of Q4 earnings growth among 10 sectors it tracks, at about 20%. Verizon stock is up about 10% so far this year, and AT&T is 8% higher. Comcast is up about 2%, while Nvidia remains down 9%.

SunPower CEO Attributes 8point3 ‘Drop Downs’ To Q1 Sales Miss

Wall Street bandied SunPower ( SPWR ) stock Thursday after the No. 2 solar company reported forecast-topping Q4 sales and earnings but issued Q1 sales guidance that halved analyst views, which CEO Tom Werner said stemmed from project “drop downs” to yield company 8point3 Energy Partners ( CAFD ). There was a 12% disparity Thursday between the high and low points of SunPower stock. Shares were up as much as 4.7% earlier, but in afternoon trading on the stock market today , SunPower stock was down 4%, near 23. Analysts were forgiving. Credit Suisse analyst Patrick Jobin says that SunPower is “bucking the trend” of solar demand challenges and investor fears of a capital squeeze. Solar is a capital-intense industry, and limited access to capital can strangle growth. “SunPower is bucking the trend and remains in a healthy position with a clean balance sheet and an execution track record that is enabling growth,” Jobin wrote in a research report. He retained his outperform rating and 32 price target on SunPower stock. EBITDA Shift Buoys Q4 For Q4, SunPower reported $1.36 billion in sales ex items and $1.73 earnings per share minus items, up 124% and 563%, respectively, vs. the year-earlier quarter. Both metrics topped the consensus view for $1.27 billion and $1.52. Earnings before interest, taxes, depreciation and amortization (EBITDA) surged 347% to $379.9 million. CFO Charles Boynton, on the company’s earnings conference call Wednesday, pointed to a $65 million shift in EBITDA after projects expected to be completed in the current quarter actually wrapped up in Q4. SunPower finished 2015 with $556.5 million EBITDA, up 49%. Sales minus items and EPS ex items came in at $2.6 billion and $2.17, flat and up 63%, respectively, and beating consensus expectations. The EBITDA shift impacted Q1 and 2016 guidance, Boynton said. SunPower lowered 2016 EBITDA guidance by that $65 million, to $450 million-$500 million, and sees $0-$25 million in Q1. For the year, SunPower expects $3.2 billion-$3.4 billion in sales minus items, where analysts had modeled for $3.42 billion. Yieldco Drops Impact Q1 Guide But the Q1 sales-minus-items view for $290 million-$340 million was far short of Wall Street views for $675.7 million. CEO Werner attributed the guidance miss to the timing of project drop-downs to 8point3. SunPower and First Solar ( FSLR ) teamed up to form the yield company last year, a company formed to own assets that produce predictable cash flows. Yieldcos are gaining headway in the solar industry. “We’re building projects in Q1 that we won’t sell to 8point3 until Q3, so we don’t get the revenue and the income until Q3,” Werner told IBD on Thursday. “It’s the timing of the ‘drop down’ of projects to Q3.” Investors are warming to the yieldco idea, Werner says. 8point3 made its IPO in June, pricing shares at 21. It now trades near 16%, up 3% Thursday afternoon. “Think of it (the yieldco) as strategic and the core of what we do,” Werner said. During Q4, SunPower dropped down its first project to 8point3 — a 20-megawatt project for California’s Kern County School District consisting of 27 carports at various locations across the district, according to a SunPower press release. And the 135-MW Quinto solar project in central California is now also generating energy for 8point3. Power Plants To Fuel Growth In 2016, Werner expects 60% of sales to stem from SunPower’s utility business. In Q4, power plants comprised 77% of SunPower’s sales. Residential and commercial accounted for 13% and 10%, respectively. SunPower’s vertical overlap and geographic expansion will help growth, Werner told IBD. On the call, he emphasized SunPower’s investment in China and the U.S. China and the U.S. are at opposing ends of the solar spectrum. China, Chile and South Africa have heavy investments in utility-scale solar. The U.S., Japan and Europe are more focused on rooftop solar. In the U.S., extension of a key subsidy, the Investment Tax Credit on solar, will help the rooftop business boom in 2016, Werner says. And companies like Apple ( AAPL ) and Stanford University have created their own hybrid — an offsite utility with a direct access line, Werner said. He also sees growth stemming from SunPower’s Helix platform, which aims to cut installation time. Werner likened it to a solar system for a modular home; the cables are precut, and a roofing company merely snaps them together. “You don’t need all the trade labor,” he said. “You can have a roofing company install a system and then just a little electrician time. It’s five to 10 times faster.” SunPower continues to partner with Tesla ( TSLA ), Sunverge and Stem for solar storage solutions. Two homebuilders in California and Germany are offering it as a standard option, Werner said.  

Tesla Partner Nvidia Delves Into AI With Facebook, Alibaba

Tesla ( TSLA ) partner Nvidia ( NVDA ) forged alliances during Q4 with Facebook ( FB ) and Chinese Internet major  Alibaba ( BABA ) for speedy artificial intelligence chips, Nvidia CFO Colette Kress said late Wednesday on the chipmaker’s earnings conference call. And tech giants Alphabet ( GOOGL ), Microsoft ( MSFT ) and IBM ( IBM ) also are eyeing AI, she said. The arena pits graphics processing units, made by Nvidia and others, against another type of chip called field programmable gate arrays (FPGAs), to power the process. The trend — accelerated machine learning — is good news for GPU-maker Nvidia and Intel ( INTC ), which completed its acquisition of FPGA-maker Altera in December. Fostering AI requires breakneck speed in the data center. Nvidia stock rocketed as much as 12% Thursday, touching a six-week high near 31. Midday on the stock market today , Nvidia stock was up 9%, following Nvidia’s blowout Q4 earnings and its guidance leap. For its fiscal Q4 ended Jan. 31, Nvidia reported 35 cents earnings per share on a record $1.4 billion in sales, flat and up 12%, respectively, vs. the year-earlier quarter, and topping Wall Street expectations. Fiscal 2016 ended with $5.01 billion in sales and $1.08 EPS, up a respective 7% and 4%, to beat the consensus model of 29 analysts polled by Thomson Reuters. Nvidia guided above the consensus to $1.26 billion in sales, plus or minus 2%, for the current quarter. That would be up 9.5% year over year, but down 10% sequentially — a measure Rosenblatt analyst Kinngai Chan, in a research note, called “prudent and appropriate.” Chan sees weak China and Asia gaming demand slugging Nvidia in the first half of fiscal 2017. But gaming was the bright spot for Nvidia’s Q4, where sales flew 25% year over year to $810 million. GPU sales, Nvidia’s bread and butter, rose 10% to $1.18 billion. Nvidia Vs. AMD Pretty Close In the second half of the year, Nvidia could outperform after releasing its newest GPU generation, Pascal, says Chan. “We do not foresee any meaningful market share shifts and continue to see a benign pricing environment,” Chan wrote. Likewise, Pacific Crest analyst Michael McConnell doesn’t expect any major shifts in share between Nvidia and GPU rival Advanced Micro Devices ( AMD ). Both are deeply entrenched in the gaming world — Facebook-owned Oculus recommends GPUs from either to power its upcoming Rift VR games. “We believe further stock outperformance this year will hinge on company progress with PC GPU total addressable market expansion (VR) … given our belief that GPU share gains vs. Advanced Micro Devices have likely peaked,” McConnell wrote in a research note. He has a sector weigh rating on Nvidia stock. Automotive and data center sales remain healthy growth drivers for Nvidia — up 68% and 10% year over year, respectively — but they only comprise about 13%-14% of total sales, McConnell wrote. Sales stemming from Tesla and Nvidia’s joint accelerator chips are included in the data center total. Nvidia CEO Jen Hsun-Huang sees that as a potential boom market. During Q4, Nvidia announced a hyperscale data center platform that accelerates machine learning (AI). He sees the move to AI as “a brand new computing model.” “There are so many problems that computer science has been trying to solve, which algorithmically are just impossible to solve,” he told analysts on Wednesday’s call. “Using an enormous amount of data to train a neural net … is a pretty exciting computation model.”