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Will O"Reilly Automotive (ORLY) Beat Estimates Again in Its Next Earnings Report?

O'Reilly Automotive (ORLY) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report. Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering O'Reilly Automotive (ORLY), which belongs to the Zacks Automotive - Retail and Wholesale - Parts industry.This auto parts retailer has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 14.94%.For the last reported quarter, O'Reilly Automotive came out with earnings of $8.07 per share versus the Zacks Consensus Estimate of $6.99 per share, representing a surprise of 15.45%. For the previous quarter, the company was expected to post earnings of $7.28 per share and it actually produced earnings of $8.33 per share, delivering a surprise of 14.42%.Price and EPS SurpriseWith this earnings history in mind, recent estimates have been moving higher for O'Reilly Automotive. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.O'Reilly Automotive currently has an Earnings ESP of +1.22%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on February 9, 2022.When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report O'Reilly Automotive, Inc. (ORLY): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksJan 14th, 2022

Blockbuster Deliveries to Drive Tesla"s (TSLA) Q4 Earnings

Tesla (TSLA) reports breakthrough Q4 delivery numbers, which is likely to have boosted the company's earnings during the October-December period. Tesla TSLA is set to release fourth-quarter 2021 results on Jan 26, after the closing bell. The red hot electric vehicle (EV) maker’s results will likely mirror the favorable impact of breakthrough vehicle deliveries achieved during the quarter.(Also read: Why We Expect Tesla to Deliver Q4 Earnings Beat)Q3 HighlightsIn the last reported quarter, Tesla posted earnings of $1.86 per share, topping the Zacks Consensus Estimate of $1.39. Moreover, the metric compared favorably with the year-ago earnings of 76 cents a share. Total revenues came in at $13,757 million, surpassing the consensus mark of $13,163 million. The top line also witnessed year-over-year growth of 56.8%.Total automotive revenues surged 58% year over year to $12,057 million in the third quarter. Tesla had cash and cash equivalents of $16,065 million as of Sep 30, 2021, compared with $14,531 million on Sep 30, 2020. Net cash provided by operating activities amounted to $3,147 million in third-quarter 2021.During the September-end quarter, Tesla reported production and delivery of 237,823 and 241,391 vehicles, respectively, reflecting a year-over-year jump of 64% and 73%. The company reported Model 3/Y production and deliveries of 228,882 and 232,102 vehicles, marking year-over-year growth of 79% and 87%, respectively. Meanwhile, the production and delivery of Model S/X plummeted 47% and 39% on a year-over-year basis to 8,941 and 9,289 units, respectively.Production & Deliveries in Q4With the Model 3 sedan being its flagship vehicle, Tesla has established itself as a leader in the EV segment. Its products' stellar performance and impressive design are anticipated to have ramped up sales volumes during the quarter under review. Being the first mass-market electric car in North America and Europe, Model 3 is one of the best-selling vehicles. The car’s market-leading safety, performance and impressive specs have made it a huge success. Also, the elevated production and deliveries of the Model Y vehicles are likely to have buoyed the automaker’s earnings during the quarter in discussion.Tesla reported record-setting fourth-quarter 2021 deliveries, thanks to the soaring popularity of green vehicles and rising preference for personal mobility. In fact, fourth-quarter 2021 marked the sixth consecutive quarter of ground-breaking deliveries by the world's most valuable automaker.The EV behemoth registered worldwide production and deliveries of 305,840 and 308,600 vehicles, respectively, in the December-end period, way higher than the 179,757 units produced and 180,570 units delivered in the corresponding quarter of 2020. In fact, the delivery count for the fourth quarter smashed the previous high mark of 241,300 set in the third quarter of 2021. The delivery metric also surpassed the Zacks Consensus Estimate of 283,041 units.Surging demand for Models 3 and Y, which form a major chunk of the automaker’s overall deliveries, can be attributed to Tesla's solid vehicle sales during the quarter. For the quarter in discussion, the Model 3/Y registered production of 292,731 vehicles, while 296,850 vehicles were delivered, reflecting a massive increase from the production of 163,660 units and delivery of 161,650 units during the year-ago quarter. While Model 3/Y production count is on par with the Zacks Consensus Estimate, the delivery count topped the consensus metric of 265,792 units.For the final quarter of 2021, while the combined Model S/X production count of 13,109 units was in line with the Zacks Consensus Estimate, the reported delivery figure of 11,750 units marginally beat the consensus metric of 10,178 units.Overall Earnings & Revenue Projections for Q4The Zacks Consensus Estimate for Tesla’s to-be-reported quarter’s earnings is pegged at $2.02, indicating an increase from the 80 cents posted in the prior-year quarter. The Zacks Consensus Estimate of $15.93 billion for sales calls for a 48.3% surge on a year-over-year basis.Tesla currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Other Stocks With a Favorable CombinationHere are some other companies in the auto space, which, according to our model, also have the right combination of elements to post an earnings beat for the quarter to be reported:General Motors GM has an Earnings ESP of +12.02% and a Zacks Rank #2 (Buy). The stock is set to report fourth-quarter 2021 earnings on Feb 1.The Zacks Consensus Estimate for General Motors’ to-be-reported quarter’s earnings and revenues is pegged at $1.04 per share and $29.35 billion, respectively. Encouragingly, GM surpassed earnings estimates in the last four quarters, with an average of 46.5%.Ford F has an Earnings ESP of +6.83% and a Zacks Rank #1. The stock is set to report fourth-quarter 2021 earnings on Feb 3.The Zacks Consensus Estimate for Ford’s to-be-reported quarter’s earnings and revenues is pegged at 40 cents per share and $35.96 billion, respectively. Encouragingly, F surpassed earnings estimates in the last four quarters, with an average of 335.6%.Cummins CMI has an Earnings ESP of +0.63% and a Zacks Rank #3 (Hold). The stock is set to report fourth-quarter 2021 earnings on Feb 3.The Zacks Consensus Estimate for Cummins’ to-be-reported quarter’s earnings and revenues is pegged at $3.08 per share and $5.78 billion, respectively. CMI surpassed earnings estimates in three of the last four quarters while missing once, delivering an earnings surprise of 8%.Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJan 21st, 2022

Should You Retain EverQuote (EVER) Stock in Your Portfolio?

EverQuote (EVER) is poised to benefit from improvements in traffic volumes and monetization, improved guidance and sufficient liquidity. EverQuote, Inc. EVER has been gaining momentum on the back of a higher volume of quote requests, strategic acquisitions and improved traffic volumes.Growth ProjectionsThe Zacks Consensus Estimate for EverQuote’s 2022 earnings indicates year-over-year growth of 0.8%.Earnings Surprise HistoryEverQuote has a decent earnings surprise history. Its bottom line beat estimates in three of the last four quarters and missed in one, the average being 6.1%Style ScoreEverQuote has an impressive Growth Score of A. This style score analyzes the growth prospects of a company.Business TailwindsThe top-line growth of the multi-line insurer is likely to gain from the solid performance of automotive insurance providers that account for the lion’s share of the revenues. The Zacks Consensus Estimate for EverQuote’s 2022 revenues is pegged at $429.43 million, indicating a year-over-year increase of nearly 4%.Banking on solid traffic operations that attract more consumers to the marketplace, quote request growth is likely to improve. EVER expects continued growth in quote requests.Lower advertising costs coupled with improvements in traffic volumes and monetization aided the company in delivering improved variable marketing margin (VMM), one of the primary metrics for managing a business. EverQuote expects VMM to gain from strong revenue growth within the health direct-to-consumer agency during the annual health open enrollment period. This, in turn, is expected to drive an improvement in VMM operating point for the overall business.EverQuote witnessed impressive inorganic growth. The insurer has acquired PolicyFuel, LLC and its affiliated entities in August 2021 to support its property and casualty (P&C) carrier partners. In this recent deal, PSaaS offerings of PolicyFuel for P&C markets will further extend EverQuote’s existing Direct-To-Consumer Agency (DTCA) strategy in Health and Life insurance verticals. PolicyFuel's policy sales-as-a-service business model is expected to provide the insurer with revenue diversity during a challenging period for the auto insurance marketplace.The multi-line insurer’s capital and liquidity position remain strong, with over $41.8 million of cash and cash equivalents. The insurer also boasts a debt-free balance sheet. EVER has access to a $25 million revolving credit facility. In the first nine months of 2021, operating cash flow was a positive $14 million. The robust capital position supports EverQuote in its growth initiatives.Upbeat GuidanceEverQuote guided fourth-quarter 2021 revenues to be in the range of $93.5 million and $98.5 million, indicating a year-over-year increase of 22% at the mid-point. Variable marketing margin is expected between $30.5 million and $33.5 million.EverQuote also guided its 2021 revenue expectation to a range of $410 million to $415 million, indicating an increase of 19% at the midpoint. The variable margin is estimated to be between $127 million and $130 million, implying a year-over-year increase of 18% at the mid-point. Adjusted EBITDA is now expected to be in the range of $12.5 million to $15.5million.Zacks Rank & Price PerformanceEverQuote currently carries a Zacks Rank #3 (Hold). In the past year, the stock has lost 58% against the industry’s growth of 3.3%. We believe its operational efficiencies and solid capital position will help the shares bounce back.Image Source: Zacks Investment ResearchStocks to ConsiderSome better-ranked stocks from the multi-line insurance sector are Enact Holdings ACT, MGIC Investment MTG and Radian Group RDN, each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Enact Holdings’ earnings surpassed estimates in each of the last four quarters, the average beat being 5%. In the past year, ACT has gained 8.7%.The Zacks Consensus Estimate for Enact Holdings’ 2022 earnings has moved 9.6% north in the past 60 days. Enact Holdings’ expected long-term earnings growth rate is pegged at 11.1%.MGIC Investment’s earnings surpassed estimates in each of the last four quarters, the average beat being 3.76%. In the past year, MTG has gained 21%.The Zacks Consensus Estimate for MGIC Investment’s 2022 earnings has moved 6.7% north in the past 60 days. MTG’s expected long-term earnings growth rate is pegged at 5%.Radian’s earnings surpassed estimates in three of the last four quarters and missed in one, the average beat being 1.64%. In the past year, RDN has gained 7.1%.The Zacks Consensus Estimate for Radian’s 2022 earnings has moved 5.5% north in the past 60 days. Radian’s expected long-term earnings growth rate is pegged at 5%. The Zacks Consensus Estimate for RDN’s 2022 earnings implies a year-over-year increase of 13.9%. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MGIC Investment Corporation (MTG): Free Stock Analysis Report Radian Group Inc. (RDN): Free Stock Analysis Report EverQuote, Inc. (EVER): Free Stock Analysis Report Enact Holdings, Inc. (ACT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJan 14th, 2022

Futures Slide After Disappointing JPMorgan Earnings, Tech Rout Worsens

Futures Slide After Disappointing JPMorgan Earnings, Tech Rout Worsens After trading flat for much of the overnight session, S&P futures slumped to session lows shortly after JPM reported earnings that disappointed the market (see our full write up here) and were last trading down 30 points or 0.64%, with Dow futures down 0.3% and Nasdaq futures taking on even more water as the "sell tech" trade was back with a bang. Treasury yields rose 3bps to 1.74% and the dollar reversed an overnight loss. The VIX jumped above 20 and was last seen around 21. The Nasdaq 100 fell to the lowest in almost three months yesterday as tech came under pressure after Fed Governor Lael Brainard said officials could boost rates as early as March. It looks like the selling will continue today. “Market sentiment has been shaken by concerns over the prospect of imminent Fed tightening along with record global Covid-19 infection rates, but we don’t expect either of these factors to end the equity rally,” said UBS Wealth Management CIO Mark Haefele in a note. “The fourth-quarter U.S. earnings season, which started this week, could turn investor attention back to strong fundamentals.” JPMorgan shares dropped in premarket trading after revenues and EPS beat thanks to a $1.8 billion reserve release while FICC trading revenue missed expectations even as its dealmakers posted their best quarter ever and Chief Executive Officer Jamie Dimon gave an upbeat assessment of prospects for growth. Wells Fargo advanced after reporting higher-than-estimated revenue. BlackRock Inc. became the first public asset manager to hit $10 trillion in assets, propelled by a surge in fourth-quarter flows into its exchange-traded funds. Here are some of the other notable pre-movers today: U.S.-listed casino stocks with operations in Macau rise after the announcement of much-anticipated changes to the local casino law aimed at tightening government oversight on the world’s largest gaming market. Las Vegas Sands (LVS US) +6.6%; Melco Resorts (MLCO US) +5.5%; Wynn Resorts (WYNN US) +5.6%. Apple (AAPL US) shares are up in U.S. premarket trading after Piper Sandler raises its target for the stock, saying that Apple’s set-up for 2022 is favorable. Broker adds that the tech giant’s venture into health-care and automotive markets are the next catalysts to drive the stock to a $4 trillion market cap and beyond. NextPlay Technologies (NXTP US) shares jump 19% in U.S. premarket trading after giving an update for fiscal 3Q 2022 late yesterday. Domino’s Pizza (DPZ US) is cut to equal-weight from overweight at Morgan Stanley, while Chipotle is upgraded to overweight from equal-weight amid a “mixed” view on restaurant stocks into 2022. Amicus Therapeutics (FOLD US) advanced in postmarket trading after being upgraded to outperform from market perform at SVB Leerink, which cited the potential of a treatment for Pompe disease, should it be approved. Spirit Realty dropped 4% postmarket after launching a share sale via Morgan Stanley and BofA Securities. European equities traded poorly and followed the drop in Asia, with most sectors trading lower, weighed down once again by a soft tech sector. Euro Stoxx 50 is down 0.8%, most major indexes dropped over 1% before rising off the lows. Oil & gas is the best Stoxx 600 performer with crude trading well. European technology stocks as well as pandemic winners are leading declines after a U.S. selloff in tech shares resumed Thursday as Federal Reserve officials signaled their intention to combat inflation aggressively.  European chipmakers are down in early trading Friday: ASM International -3.5% at 9.17 a.m. CET, Infineon -0.9%, ASML -2.9%, STMicroelectronics -2.3%. Meanwhile, energy and automakers outperformed. Utilities were also in focus as French nuclear energy producer Electricite de France SA (EDF) plunged by a record as the French government confirmed plans to force it to sell more power at a steep discount to protect households from surging wholesale electricity prices, a move that could cost the state-controlled utility 7.7 billion euros ($8.8 billion) at Thursday’s market prices. There was some good news: a majority of strategists still see the rally in European equities continuing this year. The Stoxx Europe 600 Index will rise about 5.2% to 511 index points by the end of 2022 from Wednesday’s close, according to the average of 19 forecasts in a Bloomberg survey. Equity funds once more led inflows among asset classes in the week through Jan. 12, as investors reduced cash holdings, according to BofA and EPFR Global data. Earlier in the session, Asian stocks slid as investors offloaded technology shares on growing speculation the Federal Reserve will raise interest rates in March.  The MSCI Asia Pacific Index fell as much as 1.3% before paring losses to 0.7% in afternoon trading. Alibaba, Keyence and Sony Group were among the largest contributors to the benchmark’s slide. The Hang Seng Tech Index, which tracks China’s biggest tech firms, closed down 0.5%. Electronics makers also dragged down indexes in Japan and South Korea, with benchmarks in both nations leading the region’s drop. China’s CSI 300 Index closed at its lowest since November 2020. Asian stocks have been whipsawed this year by remarks from Fed officials as investors try to gauge the timing and scope of the anticipated interest rate hikes. The renewed weakness on Friday was triggered by comments from Fed Governor Lael Brainard, who said officials could boost rates as early as March to ensure that price pressures are brought under control. “This kind of hawkishness and a rush for rate hikes is, of course, a minus for share prices,” said Ayako Sera, a market strategist at Sumitomo Mitsui Trust Bank in Tokyo. If the Fed were to increase rates in March, “investors will want to make sure the economy remains strong despite the monetary tightening before making their move,” Sera added.  With Friday’s moves, Asia’s benchmark is set to pare its weekly gain to about 1.6%, which would still be its best weekly performance since October.    In Japan, sentiment worsened as Tokyo raised its Covid alert to the second-highest of four levels as virus cases surged. South Korea’s Kospi was also weighed down as the central bank increased its policy rate for the third time in just five months In rates, Treasuries pared declines with stock index futures under pressure as U.S. day begins. Yields beyond the 2-year reached session highs inside Thursday’s ranges amid a global government bond selloff. Treasury yields are cheaper by 3bp to 4bp across the curve with 10- year yields around 1.7274%, fading a bigger loss earlier and slightly underperforming bunds and gilts. Asia session featured speculation about tighter global monetary policy. IG dollar issuance slate empty so far and expected to remain light ahead of U.S. holiday weekend with markets closed Monday; four names priced $3.8b Thursday. In FX, the Bloomberg dollar spot is little changed around worst levels for the week, while NOK, JPY and CAD top the G-10 scoreboard. The yen advanced, and is set for its largest weekly advance in more than a year as speculation about a shift in the Bank of Japan’s policy spurred a further unwinding of dollar longs. The five-year Japanese government bond yield climbed to a six-year high. The volatility term structure in dollar-yen shifted higher Friday and inverted. The euro was little changed around $1.1460 and European sovereign bond yields rose, with the core underperforming the periphery. Norway’s krone and the Canadian dollar advanced as oil prices rose, with Brent trading above $85 per barrel, while the Australian and New Zealand dollars were the worst performers. The pound extended its longest winning streak in nearly two months as the U.K. economy surpassed its pre-pandemic size in November for the first time. Sweden’s krona inched down, shrugging off data showing that the nation’s inflation rate rose to the highest level in 28 years In commodities, crude futures rally with WTI recovering to Wednesday’s best levels near $83 and Brent putting in fresh highs near $85.40. Spot gold is little changed a brief retest of the week’s highs, trading near $1,823/oz. Base metals are mixed: LME nickel adds about 2% extending its recent surge; copper holds a narrow range in the red Looking at the day ahead now, data releases include US retail sales, industrial production and capacity utilisation for December, along with the University of Michigan’s preliminary consumer sentiment index for January and the UK’s GDP for November. Central bank speakers include ECB President Lagarde and New York Fed President Williams. Lastly, earnings releases include Citigroup, JPMorgan Chase, Wells Fargo and BlackRock. Market Snapshot S&P 500 futures up 0.3% to 4,667.00 STOXX Europe 600 down 0.5% to 483.71 MXAP down 0.8% to 195.28 MXAPJ down 0.5% to 639.13 Nikkei down 1.3% to 28,124.28 Topix down 1.4% to 1,977.66 Hang Seng Index down 0.2% to 24,383.32 Shanghai Composite down 1.0% to 3,521.26 Sensex up 0.1% to 61,320.31 Australia S&P/ASX 200 down 1.1% to 7,393.86 Kospi down 1.4% to 2,921.92 German 10Y yield little changed at -0.08% Euro up 0.1% to $1.1467 Brent Futures up 0.8% to $85.16/bbl Gold spot up 0.1% to $1,823.97 U.S. Dollar Index little changed at 94.73 Top Overnight News from Bloomberg Federal Reserve Governor Christopher Waller said that three interest-rate increases this year was a “good baseline” but there may be fewer or even as many as five moves, depending on inflation The U.K. and the European Union agreed to intensify post-Brexit negotiations over Northern Ireland, as Foreign Secretary Liz Truss led the British side for the first time in a meeting at her official country residence Germany’s economy contracted by as much as 1% in the final quarter of 2021 as the emergence of the coronavirus’s omicron strain added to drags on output from supply snarls and the fastest inflation in three decades Japan’s Government Pension Investment Fund, the world’s largest, may mull investing in Chinese government bonds if the market situation improves, GPIF President Masataka Miyazono says at a press conference in Tokyo Ukraine said a cyberattack brought down the websites of several government agencies for hours. Authorities didn’t immediately comment on the source of the outage, which comes as tensions with Russia surge over its troop buildup near the border Russia won’t wait “endlessly” for a security deal with NATO and progress depends on the U.S., Foreign Minister Sergei Lavrov said Friday, keeping up pressure after a week of high-level talks with the West failed to yield noticeable progress Turkey’s newly appointed finance chief said the country’s inflation will peak months earlier and at a level far lower than predicted by top Wall Street banks The global pressures driving inflation higher represent a “major change in trends” and will keep price growth high for the foreseeable future, Bank of Russia Governor Elvira Nabiullina said North Korea appears to have fired two ballistic missiles into waters off its east coast-- in what could be its third rocket-volley test in less than 10 days -- hours after issuing a fresh warning to the Biden administration A more detailed look at global markets courtesy of Newsquawk Asian equity markets weakened amid headwinds from the US where all major indices declined led by losses in tech and consumer discretionary amid a slew of hawkish Fed speak, while mixed Chinese trade data added to the cautiousness in the region. ASX 200 (-1.1%) traded lower as tech and consumer stocks mirrored the underperformance of stateside peers and with nearly all industries on the back foot aside from utilities and gold miners. Nikkei 225 (-1.3%) briefly gave up the 28k level amid a firmer currency and source reports that BoJ policy makers are said to debate how soon they can begin signalling a rate hike. In terms of the notable movers, Fast Retailing was the biggest gainer after it reported a record Q1 net, followed by Seven & I Holdings which also benefitted post-earnings, while Hitachi Construction was at the other end of the spectrum after news that parent Hitachi will offload half its majority stake. KOSPI (-1.4%) eventually underperformed after the Bank of Korea hiked rates by 25bps for a third time in the current tightening cycle to 1.25%, as expected. BoK also noted that CPI is to stay in the 3% range for a while and BoK Governor Lee made it clear that rates will continue to be adjusted which has fuelled speculation of similar action at next month’s meeting. Hang Seng (-0.2%) and Shanghai Comp. (-1.0%) were also pressured with participants digesting the latest trade figures which showed weaker than expected Imports although Exports topped estimates. Nonetheless, the downside was somewhat limited amid ongoing expectations for PBoC easing to support the economy as the Fed moves closer towards a rate lift off and with some encouragement after Evergrande averted its first onshore debt default whereby bondholders approved a six-month postponement of bond redemption and coupon payments. Finally, 10yr JGBs retreated beneath the 151.00 level following the source report that suggested debate within the BoJ on how soon a rate increase can be signalled which could occur ahead of the 2% price target, while this coincided with an increase in the 5yr yield to a 6-year high and a weaker than previous 20yr JGB auction. Top Asian News Chinese Developer R&F Downgraded to Restricted Default by Fitch Macau Cuts Casino License Tenure, Caps Float as Controls Tighten Inflation Irks Asia as Japan Yields Hit Six-Year High, BOK Hikes China Builders’ Dollar Bonds Slump Further; Logan, KWG Lead The major cash equity indices in Europe remain subdued but off worst levels (Euro Stoxx 50 -0.7%; Stoxx 600 -0.6%) as the downbeat APAC mood reverberated into the region amid a slew of hawkish Fed speak, while the mixed Chinese trade data added to the concerns of a slowdown ahead of next week’s GDP metrics. Newsflow had overall been quiet during the European session ahead of the start of US earnings season, but geopolitical tensions remain hot on the radar after North Korea fired its third missile of the year (albeit landing outside Japan’s EEZ), whilst Russia closed all communication channels with the EU and exerted some time-pressure on Washington with regards to Moscow’s security demands. Back to trade, a divergence is seen between Europe and the US as the former catches up to the late accelerated sell-off on Wall Street yesterday; US equity futures have been consolidating with mild broad-based gains seen across the ES (+0.2%), YM (+0.2%), NQ (+0.2%) whilst the RTY (Unch) narrowly lags. Delving into Europe, the UK’s FTSE 100 (-0.1%) is cushioned by gains across its Oil & Gas and Financial sectors as crude oil prices and yields clamber off intraday lows, whilst the SMI (-0.3%) sees some losses countered by its heavyweight healthcare sector. Sectors in Europe are mostly in the red with a slight defensive tilt, although Oil & Gas stands as the top gainer and the only sector in the green. The downside meanwhile sees Tech following a similar sectorial underperformance seen on Wall Street and APAC overnight. In terms of individual movers, DAX-heavyweight SAP (-0.3%) conforms to the losses across tech after initially rising as a result of upgraded guidance and the announcement of a share buyback programme of up to EUR 1bln. The most notable mover of the day has been EDF (-17.5%) as the Co. withdrew guidance after noting the impact of new French price cap measures is forecast to be around EUR 8.4bln on FY22 EBITDA. Top European News EDF Slumps by Most on Record on Hit From Price Cap U.K. Economy Surpasses Pre-Pandemic Size With November Surge German Recovery Lags Rest of Europe on Supply Snarls, Inflation HSBC Markets Chief Georges Elhedery To Take Six-Month Sabbatical In FX, another lower low off a lower high does not bode well for the index and Buck more broadly, but some technicians will be encouraged by the fact that chart supports in the form of a Fib retracement and 100 DMA have only been breached briefly. Meanwhile, Friday may provide the Greenback with a prop via pre-weekend position squaring and US data could lend a hand if upbeat or better than expected at the very least. For now, the DXY is restrained between 94.887-626 confines, with the upside capped by a major trendline that falls just below 95.000 around 94.980, and the Dollar also hampered by pressure emanating outside the basket from the likes of the Yuan, crude oil and other commodities. CAD/JPY/GBP - The Loonie has reclaimed 1.2500+ status in line with a rebound in WTI towards Usd 83/brl, but still faces stiff trendline resistance vs its US counterpart at 1.2451 and probably conscious that several multi-billion option expiries roll off either side of the 1.2500 level today. Conversely, the Yen has cleared the psychological 114.00 hurdle with some fundamental impetus coming from hawkish BoJ source reports contending that policy-setters are contemplating how soon the Bank can telegraph a rate hike that is likely to be delivered prior to inflation reaching its 2% target. Elsewhere, Sterling remains elevated above 1.3700, though unable to scale 1.3750 even with tailwinds from stronger than forecast UK GDP and IP or a narrower than feared trade gap amidst ongoing political uncertainty. CHF/EUR/NZD/AUD - All narrowly divergent and contained against their US rival, with the Franc straddling 0.9100 and Euro holding within a 1.1483-51 range and immersed in hefty option expiry interest spanning 1.1395 to 1.1485 (see 7.01GMT post on the Headline Feed for details). On the flip-side, the Aussie and Kiwi have both lost a bit more momentum after probing 0.7300 and approaching 0.6900 respectively yesterday, and Aud/Usd appears to have shrugged off robust housing finance data in the run up to China’s trade balance revealing sub-consensus imports. SCANDI/EM - Firmer than anticipated Swedish CPI and CPIF metrics have not offered the Sek much support, as the stripped down core ex-energy print was in line and bang on the Riksbank’s own projection. However, the Huf has been underpinned by hot Hungarian inflation and the Cnh/Cny in wake of the aforementioned Chinese trade data showing a record surplus for December and 2021 overall. In Turkey, the Try is flattish following the latest CBRT survey that predicts a weaker year-end Lira from current levels, but above record lows and still well above target CPI, while in Russia the Rub is benefiting from Brent’s rise above Usd 85.50/brl (in keeping with the Nok) against the backdrop of geopolitical and diplomatic strains as the country’s Foreign Minister declares that all lines of communication with the EU have ended. In commodities, WTI and Brent front-month futures have been on an upward trajectory since the Wall Street close, with the former now above USD 83/bbl (vs 81.58/bbl low) and the latter north of USD 85.50/bbl (vs 83.99/bbl low) in European hours. Overall market sentiment has been a non-committal one amid a lack of fresh macro catalysts, however, geopolitical updates have been abundant: namely with Russia’s punchy rhetoric surrounding its security demand from NATO and Washington, whilst North Korea fired what is said to be ballistic missiles which landed just outside Japan’s Exclusive Economic Zone (EEZ). On the demand side of the equation, eyes remain on China’s economic and COVID situations, with the import figures indicating China's annual crude oil imports drop for the first time in 20 years, whilst the nation grounded further flights between the US due to its zero-COVID policy. On the supply side, reports suggested that China will release oil stockpiles in the run-up to the Lunar New Year (dubbed as the largest human migration). The release is part of a coordinated plan with the US and other major consumers, according to the reports, which cited sources suggesting China will likely ramp up its releases if prices top USD 85/bbl. Turning to metals, spot gold is trading sideways and prices waned after again hitting the resistance zone around USD 1,830/oz flagged earlier this week. LME copper meanwhile remains under USD 10,000/t – subdued by the sharp slowdown in Chinese imports suggesting weaker demand, albeit annual imports of copper concentrate hit a historic high in 2021. The trade data also indicated a fall in iron ore imports as a factor of the steel production curbs imposed last year to tackle pollution and high iron ore prices. US Event Calendar 8:30am: Dec. Import Price Index YoY, est. 10.8%, prior 11.7%; MoM, est. 0.2%, prior 0.7% Export Price Index YoY, est. 16.0%, prior 18.2%; MoM, est. 0.3%, prior 1.0% 8:30am: Dec. Retail Sales Advance MoM, est. -0.1%, prior 0.3% Dec. Retail Sales Ex Auto MoM, est. 0.1%, prior 0.3% Dec. Retail Sales Ex Auto and Gas, est. -0.2%, prior 0.2% Dec. Retail Sales Control Group, est. 0%, prior -0.1% 9:15am: Dec. Industrial Production MoM, est. 0.2%, prior 0.5% Capacity Utilization, est. 77.0%, prior 76.8% Manufacturing (SIC) Production, est. 0.3%, prior 0.7% 10am: Nov. Business Inventories, est. 1.3%, prior 1.2% 10am: Jan. U. of Mich. Sentiment, est. 70.0, prior 70.6; Expectations, est. 67.0, prior 68.3; Current Conditions, est. 73.8, prior 74.2 U. of Mich. 1 Yr Inflation, est. 4.8%, prior 4.8%; 5-10 Yr Inflation, prior 2.9% DB's Jim Reid concludes the overnight wrap There was no rest for markets either yesterday as the tech sell-off resumed in earnest, which came as fed funds futures moved to price in a 93% chance of a March rate hike, the highest closing probability to date. At the same time, however, the US dollar continued to weaken and has now put in its worst 3-day performance in over a year, having shed -1.25% in that time. And all this is coming just as earnings season is about to ramp up, with a number of US financials scheduled to report today ahead of an array of companies over the next few weeks. Starting with sovereign bonds, yields on 10yr Treasuries fell a further -3.9bps yesterday, their biggest decline since mid-December, to their lowest closing level in a week, at 1.704%, with most of the price action again happening during the New York afternoon. Lower inflation breakevens helped drive the decline, with the 10yr breakeven down -3.4bps after the producer price inflation data for December came in softer than expected. Indeed, the monthly gain of +0.2% (vs. +0.4% expected) was the slowest since November 2020, and in turn that left the year-on-year measure at +9.7% (vs. +9.8% expected), which is actually a modest decline from the upwardly revised +9.8% in November. As with the previous day’s CPI reading though, there was a more inflationary interpretation for those after one, as the core PPI measure came in at a monthly +0.5% as expected, leaving the year-on-year change at an above-expected +8.3% (vs. +8.0% expected). So something for everyone but no massive surprises either way. The latest inflation data came as numerous Fed speakers continued to match the recent hawkish tone, which helped strengthen investor conviction in the odds of a March hike as mentioned at the top. Philadelphia Fed President Harker said at an event that “My forecast is that we would have a 25 basis-point increase in March, barring any changes in the data”, and that he had 3 hikes pencilled in but “could be convinced of a fourth if inflation is not getting under control.” Separately, we heard from Governor Brainard, who appeared before the Senate Banking Committee as part of her nomination hearing to become Fed Vice Chair. She signalled that she would be open to a March hike as well, saying that they would be in a position to hike “as soon as asset purchases are terminated”, which they’re currently on course to do in March. Even President Evans, one of the most dovish members of Fed leadership, said a March rate hike and multiple hikes this year were a possibility. As it happens, today is the last we’ll hear from various Fed speakers for a while, as tomorrow they’ll be entering their blackout period ahead of the next FOMC announcement later in the month. Staying on the Fed, Bloomberg reported overnight that President Biden has picked three nominees for the vacant slots. They include Sarah Bloom Raskin, previously Deputy Secretary of the Treasury, who’s reportedly going to be nominated to become the Vice Chair of supervision, as well as Lisa Cook and Philip Jefferson, who’d become governors. Cook is an economics professor at Michigan State University, and Jefferson is an economics professor at Davidson College in North Carolina. All 3 would require Senate confirmation, and bear in mind those choices haven’t been officially confirmed as of yet. Over on the equity side, the main story was a further tech sell-off that sent both the NASDAQ (-2.51%) and the FANG+ index (-3.72%) lower for the first time this week, and taking the former to a 3-month low. That weakness dragged the S&P 500 (-1.5%) lower, though despite the stark headline numbers, it was only just over half of the shares in the index that were in the red on the day. Meanwhile in Europe, the STOXX 600 (-0.03%) also saw a modest decline, though the STOXX Banks (+1.10%) hit a fresh 3-year high after advancing for the 8th time in the last 9 sessions. Sovereign bond yields echoed the declines in the US too, with those on 10yr bunds (-3.1bps), OATs (-3.3bps) and BTPs (-4.6bps) all moving lower. Following that tech-driven fall overnight on Wall Street on the back of those hawkish comments, Asian stock markets are trading lower this morning. Japan's Nikkei (-1.42%) extended the previous session’s losses while briefly falling over -2%, as the Japanese Yen found a renewed bid amid the risk-off mood. Additionally, the Kospi (-1.37%) widened its losses, after the BOK lifted borrowing costs by 25bps to 1.25% amidst rising concerns about inflationary pressure. That takes the benchmark rate back to pre-pandemic levels after the central bank's 25bps rate increase in August and November last year. Meanwhile, the Korean government unveiled a supplementary budget worth 14 trillion won in size to continue providing support to the economy. Elsewhere, the Hang Seng index (-0.86%), CSI (-0.60%) and Shanghai Composite (-0.53%) have all moved lower as well. Data released in China showed that exports went up +20.9% y/y in December (vs +20.0% market expectations) albeit imports in December rose +19.5% y/y less than +28.5% as anticipated. That meant that they posted a trade surplus of $94.46bn last month, above the consensus forecast for a $74.50bn surplus. Looking ahead, futures on both the S&P 500 (-0.19%) and DAX (-0.79%) are pointing to further losses later on. Elsewhere in markets, yesterday saw another surge in European natural gas futures (+13.71%), albeit still at levels which are less than half of the peaks seen in mid-December. The latest moves came as Russia’s deputy foreign minister Sergei Ryabkov said that talks with the US had reached a “dead end”, amidst strong tensions between the two sides with Russia rejecting any further expansion of NATO as well as calls to pull back its forces from near Ukraine’s border. In response, the Russian ruble weakened -2.31% against the US dollar yesterday, whilst the MOEX stock index (-4.05%) suffered its worst daily performance since April 2020. Turning to the Covid-19 pandemic, the decline in UK cases continued to accelerate yesterday, with the number of cases over the past week now down -24% relative to the previous 7-day period. Looking at England specifically, the total number of Covid-19 patients in hospital is now down for a 3rd day running, and in London the total number in hospital is down to its lowest level since New Year’s Eve. To the day ahead now, and data releases include US retail sales, industrial production and capacity utilisation for December, along with the University of Michigan’s preliminary consumer sentiment index for January and the UK’s GDP for November. Central bank speakers include ECB President Lagarde and New York Fed President Williams. Lastly, earnings releases include Citigroup, JPMorgan Chase, Wells Fargo and BlackRock. Tyler Durden Fri, 01/14/2022 - 08:13.....»»

Category: dealsSource: nytJan 14th, 2022

Futures Flat Ahead Of Another Scorching PPI Print

Futures Flat Ahead Of Another Scorching PPI Print US futures were little changed on Thursday one day after the highest CPI print since 1982 and just minutes before another red hot PPI print is expected (9.8%, up from 9.6%), as investors tried to gauge the timing and pace of monetary tightening. S&P 500, Dow and Nasdaq 100 futures were up 0.1% as investors waited for the next trading signal. 10Y yields were flat around 1.74%, and the dollar edged lower as a growing tide of investors bet the world’s reserve currency has reached a peak with rate hikes largely priced-in to the market with Fed tightening likely to lead to an economic slowdown. “Markets in 2022 have been volatile as the reality of inflation set in, and this reaction mainly reflects relief that the print did not exceed already lofty expectations,” Geir Lode, head of global equities at the international business of Federated Hermes, said in an email. Inflation hitting 7% could force a quicker move by the Federal Reserve, with the market now pricing four rate hikes this year starting no later than March, according to technical analyst Pierre Veyret at ActivTrades in London. “Investors still struggle with one crucial question: how will the Fed manage to tackle rising price pressure without derailing the fragile post-pandemic economic recovery?” Sure enough, San Francisco Fed President Mary Daly and her Philadelphia peer Patrick Harker added their voices to the chorus in interviews published yesterday evening and this morning, calling for a rate hike as soon as March when odds of a rate hike have hit a new high of 90%. Attention today will be on the confirmation hearing of Lael Brainard in the Senate. The vice-chair nominee, who last publicly commented on the economic outlook in September, said in prepared remarks that tackling inflation is the bank’s “most important task.” In premarket trading, shares in Delta Air Lines rose more than 2% even though the carrier missed revenue and EPS expectations, after the company said the omicron variant won’t derail its expectation to remain profitable for the rest of the year, as it released fourth-quarter financial results. Here are some of the biggest U.S. movers today: U.S. chip stocks are mixed in premarket trading after sector bellwether TSMC gave a 1Q sales outlook that beat estimates and raised its projected annual capex versus last year. Equipment stock Applied Materials (AMAT US) +2% premarket, while TSMC customers are mixed with Apple (AAPL US) -0.1%, Nvidia (NVDA US) +0.7% and AMD (AMD US) +0.6%. Puma Biotechnology (PBYI US) shares surge 13% in U.S. premarket trading, after the company said that its Nerlynx treatment was included in the National Comprehensive Cancer Network’s (NCCN) clinical practice guidelines in oncology for the treatment of breast cancer. KB Home (KBH US) shares rise 6.2% in premarket trading after the homebuilder’s 4Q EPS beat estimates, with Wells Fargo calling the results and guidance “solid.” Planet Labs (PL US) shares rise 1.6% in U.S. premarket trading, after the satellite data provider said that it plans to launch 44 SuperDove satellites on Thursday on SpaceX’s Falcon 9 rocket. Adagio Therapeutics (ADGI US) said ADG20 has neutralization activity against omicron and cites recent findings from three publications on ADG20. Shares jumped 30% in post-market trading. Discussing yesterday's scorching CPI print, DB's Jim Reid writes that "if you did an MRI scan of US inflation yesterday you’d find things to support both sides of the debate which is surprising when it hit 7% YoY and the highest since 1982 when Fed Funds were more than 13% rather than close to zero as they are today. So a slightly different real rate to back then. In fact the real rate is through any level seen in the 1970s and is only comparable to WWII levels. Back to CPI and the YoY number was in line with expectations, but core and MoM figures were all a bit firmer than expected. However, the beats were small enough that the data didn’t significantly change the outlook for monetary policy, with Fed funds futures still pricing in an 89% chance of a March hike, which is roughly around where it’d been over the preceding days." In Europe, the Stoxx Europe 600 Index paused after a two-day advance, erasing early declines of as much as 0.3% to trade little changed, with technology and automotive shares offsetting losses in consumer products and health care. CAC 40 underperforms, dropping as much as 0.6%. The Stoxx Europe 600 Technology sub-index is up 1.1%, getting a boost from chip stocks which gained after sector bellwether TSMC gave a 1Q sales outlook that beat estimates and raised its projected annual capex versus last year. Geberit dropped as much as 4.5% to a seven-month low after the Swiss producer of sanitary installations reported fourth-quarter sales. Bloomberg Dollar Spot dips into the red pushing most majors to best levels of the session. NZD, AUD and GBP are the best G-10 performers. Crude futures maintain a relatively narrow range. WTI is flat near $82.70, Brent stalls near $84.84. Spot gold dips before finding support near $1,820/oz. Most base metals are in the red with LME zinc lagging peers.  Asian stocks were little changed after capping their biggest rally in a year, with health-care and software-technology names retreating while financials advanced. The MSCI Asia Pacific Index fluctuated between a drop of 0.3% and a gain of 0.2% on Thursday. Hong Kong’s Hang Seng Tech Index lost 1.8% after rising the most in three months in the previous session. Benchmarks in China and Japan were the day’s worst performers, while the Philippines and Australia outperformed.   “The market rose a bit too much yesterday,” said Mamoru Shimode, chief strategist at Resona Asset Management in Tokyo. “Investors keep shifting back and forth from value stocks to growth names and vise versa. It’s because we don’t know yet where U.S. long-term yields will end up settling around.”  The Asian stock measure jumped 1.9% Wednesday on views that the Federal Reserve’s anticipated rate hikes will help curb inflation and allow the global recovery to chug along. U.S. inflation readings overnight, at an almost four-decade high, were in line with expectations and helped investors keep previous bets Japanese stocks fell after Tokyo raised its Covid-19 alert to the second-highest level on a four-tier system. The Topix dropped 0.7% to 2,005.58 at the 3 p.m. close in Tokyo, while the Nikkei 225 declined 1% to 28,489.13. Recruit Holdings Co. contributed the most to the Topix’s decline, decreasing 4%. Out of 2,181 shares in the index, 500 rose and 1,604 fell, while 77 were unchanged. HIS, Japan Airlines and other travel shares fell. Tokyo’s daily cases jumped more than fivefold on Wednesday to 2,198 compared with 390 a week earlier. India’s benchmark equity index eeked out gains to complete its longest string of advances since mid-October, buoyed by the nation’s top two IT firms after their earnings reports. The S&P BSE Sensex rose for a fifth day, adding 0.1% to close at 61,235.30 in Mumbai, while the NSE Nifty 50 Index climbed 0.3%. Infosys and Tata Consultancy Services were among the biggest boosts to both measures. Of the 30 shares in the Sensex index, 19 rose and 11 fell. Thirteen of the 19 sector sub-indexes compiled by BSE Ltd. advanced, led by a gauge of metal companies.  Infosys’ quarterly earnings beat and bellwether Tata Consultancy Services’s better-than-expected sales offer some hope that the rally in India’s technology sector has further room to run, according to analysts. Still, Wipro sank the most in a year after its profit missed estimates Fixed income is relatively quiet, with changes across major curves limited to less than a basis point so far. The 10-year yield stalled around 1.75%, slightly cheaper on the day, and broadly in line with bunds and gilts. Eurodollar futures bear steepen a touch after a round of hawkish Fedspeak during Asian hours. Treasuries were steady with yields broadly within a basis point of Wednesday’s close.  Eurodollars are slightly lower across green- and blue-pack contracts after Fed’s Daly and Harker sounded hawkish tones during Asia hours. Across front-end, eurodollar strip steepens out to blue-pack contracts (Mar25-Dec25), which are lower by up to 4bp. 30-year bond reopening at 1pm ET concludes this week’s coupon auction cycle.$22b 30-year reopening at 1pm ET follows 0.3bp tail in Wednesday’s 10-year auction, and large tails in last two 30-year sales. The WI 30-year yield at ~2.095% is above auction stops since June and ~20bp cheaper than last month’s, which tailed the WI by 3.2bp. In FX, the pound advanced to its highest level since Oct. 29 amid calls for U.K. Prime Minister Boris Johnson to resign over a “bring your own bottle” party at the height of a lockdown meant to stem the first wave of coronavirus infections in 2020. The Bloomberg Dollar Spot Index held a two-month low as the greenback weakened against all of its Group-of-10 peers, and the euro rallied a third day as it approached the $1.15 handle. Implied volatility in the major currencies over the two- week tenor, that now captures the next Fed meeting, comes in line with the roll yet investors are choosing sides. The Australian dollar extended its overnight gain as the greenback declined following as-expected U.S. inflation. Iron ore supply concern also supported the currency. The yen hovered near a two-week high as long dollar positions were unwound. Japanese government bonds traded in narrow ranges. In commodities, cude futures maintain a relatively narrow range. WTI is flat near $82.70, Brent stalls near $84.50. Spot gold dips before finding support near $1,820/oz. Most base metals are in the red with LME zinc lagging peers. Bitcoin traded around $44,000 as the inflation numbers rekindled the debate about whether the cryptocurrency is a hedge against rising consumer prices. Expected data on Thursday include producer prices, an early indicator of inflationary trends, and unemployment claims. Market Snapshot S&P 500 futures little changed at 4,715.50 STOXX Europe 600 down 0.1% to 485.67 MXAP little changed at 196.79 MXAPJ up 0.1% to 643.93 Nikkei down 1.0% to 28,489.13 Topix down 0.7% to 2,005.58 Hang Seng Index up 0.1% to 24,429.77 Shanghai Composite down 1.2% to 3,555.26 Sensex up 0.1% to 61,220.38 Australia S&P/ASX 200 up 0.5% to 7,474.36 Kospi down 0.3% to 2,962.09 German 10Y yield little changed at -0.04% Euro up 0.2% to $1.1465 Brent Futures down 0.1% to $84.58/bbl Gold spot down 0.3% to $1,820.68 U.S. Dollar Index little changed at 94.83 Top Overnight News from Bloomberg Federal Reserve Bank of San Francisco President Mary Daly and her Philadelphia Fed peer Patrick Harker joined the ranks of officials publicly discussing an interest-rate increase as early as March as the central bank seeks to combat the hottest inflation in a generation Global central banks will diverge on the way they respond to inflation this year, creating risks to economies everywhere, Bank of England policy maker Catherine Mann said Norway’s race to appoint a new central bank governor is reaching a finale mired in controversy at the prospect of a political ally and friend of Prime Minister Jonas Gahr Store getting the job Italy’s government is working on a spending package that won’t require revising its budget to expand the deficit, people familiar with the matter said Several of China’s largest banks have become more selective about funding real estate projects by local government financing vehicles, concerned that some are taking on too much risk after they replaced private developers as key buyers of land, people familiar with the matter said A more detailed look at global markets courtesy of Newsquawk Asia-Pac stocks traded mixed following the choppy session in the US where major indices eked mild gains as markets digested CPI data in which headline annual inflation printed at 7.0%. ASX 200 (+0.5%) was underpinned as the energy and mining related sectors continued to benefit from the recent upside in underlying commodity prices, while Crown Resorts shares outperformed after Blackstone raised its cash proposal for Crown Resorts following due diligence inquiries. Nikkei 225 (-1.0%) declined with the index hampered by unfavourable currency flows and with Tokyo raising its COVID-19 alert to the second-highest level. Hang Seng (+0.1%) and Shanghai Comp. (-1.1%) were initially subdued, but did diverge later, after the slight miss on loans and aggregate financing data, while there is a slew of upcoming key releases from China in the days ahead including trade figures tomorrow, as well as GDP and activity data on Monday. In addition, the biggest movers were headline driven including developer Sunac China which dropped by a double-digit percentage after it priced a 452mln-share sale at a 15% discount to repay loans and cruise operator Genting Hong Kong wiped out around half its value on resumption of trade after it warned of defaults due to insolvency of its German shipbuilding business. Finally, 10yr JGBs traded rangebound and were stuck near the 151.00 level following the indecisive mood in T-notes which was not helped by an uninspiring 10yr auction stateside, while the lack of BoJ purchases in the market also added to the humdrum tone. Top Asian News Asia Stocks Steady After Best Rally in a Year; Financials Gain Country Garden Selloff Shows Chinese Developer Worries Spreading China Banks Curb Property Loans to Local Government Firms China’s True Unemployment Pain Masked by Official Data Bourses in Europe now see a mixed picture with the breadth of the price action also narrow (Euro Stoxx 50 Unch; Stoxx 600 -0.10%). The region initially opened with a modest downside bias following on from a mostly negative APAC handover after Wall Street eked mild gains. US equity futures have since been choppy within a tight range and exhibit a relatively broad-based performance with no real standout performers. Back in Europe, sectors are mixed and lack an overarching theme. Tech remains the outperformer since the morning with some follow-through seen from contract-chip manufacturer TSMC (ADR +4.3% pre-market), who beat on net and revenue whilst upping its 2022 Capex to USD 40bln-44bln from around USD 30bln the prior year, whilst the CEO expects capacity to remain tight throughout 2022. Tech is closely followed by Autos and Parts and Travel & Leisure, whilst the other end of the spectrum sees Healthcare, Oil & Gas, Retail and Personal & Household goods among the straddlers – with Tesco (-1.5%) and Marks & Spencer (-5.3%) weighing on the latter two following trading updates. In terms of other individual movers, BT (+0.5%) trades in the green amid reports DAZN is nearing a deal to buy BT Sport for around USD 800mln, a could be reached as soon as this month but has not been finalized. Turning to analyst commentary: Morgan Stanley’s clients have aligned themselves to the view that European equities will likely perform better than US counterparts. 45% of respondents see Financials as the top-performing sector this year, 14% preferred Tech which would be the lowest score in over six years. Top European News Johnson Buys Time With Apology But U.K. Tory Rage Simmers U.K. Retailers Slide as Updates Show Lingering Impact of Virus Wood Group Plans Sale of Built Environment Unit Next Quarter Just Eat Advisers Pitching Grubhub Sale or Take-Private: Sources In FX, the Dollar has weakened further in wake of Wednesday’s US inflation data as ‘buy rumour sell fact’ dynamics are compounded by more position paring and increasingly bearish technical impulses to outweigh fundamental factors that seem supportive, on paper or in theory. Indeed, the index only mustered enough recovery momentum to reach 95.022 on the back of hawkish Fed commentary and some short covering before retreating through the psychological level, then yesterday’s 94.903 low and another trough from late 2021 at 94.824 (November 11 base) to 94.710, thus far and leaving little bar the 100 DMA, at 94.675 today, in terms of support ahead of 94.500. However, the flagging Greenback could get a fillip via PPI and/or IJC, if not the next round of Fed speakers and final leg of this week’s auction remit in the form of Usd 22 bn long bonds. NZD/AUD - A change in the running order down under where the Kiwi has overtaken the Aussie irrespective of bullish calls on the Aud/Nzd cross from MS, with Nzd/Usd breaching the 50 DMA around 0.6860 on the way to 0.6884 and Aud/Usd scaling the 100 DMA at 0.7288 then 0.7300 before fading at 0.7314. GBP/EUR/CHF/CAD/JPY - Also extracting more impetus at the expense of the Buck, but to varying degrees as Sterling continues to shrug aside ongoing Tory party turmoil to attain 1.3700+ status and surpass the 200 DMA that stands at 1.3737, while the Euro has overcome Fib resistance around 1.1440, plus any semi-psychological reticence at 1.1450 to reach 1.1478 and the Franc is now closer to 0.9100 than 0.9150. Elsewhere, crude is still providing the Loonie with an incentive to climb and Usd/Cad has recoiled even further from early 2022 peaks beneath 1.2500 as a result, and the Yen is around 114.50 with scope for a stronger retracement to test the 55 DMA, at 114.22. SCANDI/EM - Some signs of fatigue as the Nok stalls on the edge of 9.9000 against the Eur in tandem with Brent just a few cents over Usd 85/brl, but the Czk has recorded fresh decade-plus highs vs the single currency following remarks from CNB chief Rusnok on the need to keep tightening and acknowledging that this may culminate in Koruna appreciation. The Cnh and Cny are firmer vs the Usd pre-Chinese trade and GDP data either side of the weekend, but the Rub is lagging again as the Kremlin concludes that there was no progress in talks between Russia and the West, but the Try is underperforming again with headwinds from elevated oil prices and regardless of a marked pick up in Turkish ip. In commodities, WTI and Brent front-month contracts have conformed to the indecisive mood across the markets, although the benchmarks received a mild uplift as the Dollar receded in early European hours. As it stands, the WTI Feb and Brent Mar contract both reside within USD 0.80/bbl ranges near USD 82.50/bbl and USD 84.50/bbl respectively. News flow for the complex has been quiet and participants are on the lookout for the next catalyst, potentially in the form of US jobless claims/PPI amid multiple speakers, although the rise in APAC COVID cases remains a continuous headwind on demand for now – particularly in China. On the geopolitical front, Russian-backed troops have reportedly begun pulling out of the 1.6mln BPD Kazakh territory, but Moscow’s tensions with the West do not seem to abate. Russia's Kremlin suggested talks with the West were "unsuccessful" – which comes after NATO’s Secretary-General yesterday suggested there is a real risk of a new armed conflict in Europe. Elsewhere, spot gold has drifted off best levels as the DXY found a floor, for now – with the closest support yesterday’s USD 1,813/oz low ahead of the 50 and 21 DMAs at USD 1,807/oz and USD 1,806.50/oz respectively. LME copper has also pulled back from yesterday’s best levels to levels under USD 10,000/t as the mood remains cautious, although, copper prices in Shanghai rose to over a two-month high as it played catch-up to LME yesterday. US Event Calendar 8:30am: Dec. PPI Final Demand YoY, est. 9.8%, prior 9.6%; MoM, est. 0.4%, prior 0.8% 8:30am: Dec. PPI Ex Food and Energy YoY, est. 8.0%, prior 7.7%; MoM, est. 0.5%, prior 0.7% 8:30am: Jan. Continuing Claims, est. 1.73m, prior 1.75m 8:30am: Jan. Initial Jobless Claims, est. 200,000, prior 207,000 DB's Jim Reid concludes the overnight wrap Today I have a first. I have two MRI scans. A fresh one on my back and one on my right knee which gave way as I was rehabbing (squats and lunges) the left knee after recent surgery. In my fifth decade of playing sport averagely, but vigorously, it’s all catching up with me very quickly. I’ve exhausted all strengthening exercise routines and injections on my back and the pain gets worse. My surgeon does not want to operate but we will see if he changes his mind after today. If he says play less golf I will walk out mid-meeting even if he may be medically correct. In contrast my knee surgeon is an avid skier and he keeps on doing things to prolong my skiing career even though I’ve said to him that I just really care about golf. So I’ll soon be looking for an avid golfer who just happens to be a back surgeon. Talking of confirmation bias, if you did an MRI scan of US inflation yesterday you’d find things to support both sides of the debate which is surprising when it hit 7% YoY and the highest since 1982 when Fed Funds were more than 13% rather than close to zero as they are today. So a slightly different real rate to back then. In fact the real rate is through any level seen in the 1970s and is only comparable to WWII levels. Back to CPI and the YoY number was in line with expectations, but core and MoM figures were all a bit firmer than expected. However, the beats were small enough that the data didn’t significantly change the outlook for monetary policy, with Fed funds futures still pricing in an 89% chance of a March hike, which is roughly around where it’d been over the preceding days. Looking at the details of the release, (our US econ team’s full wrap here) headline month-on-month number came in at +0.5% in December (vs. +0.4% expected), which is the 8thtime in the last 10 months that the print has come in above the consensus expectations on Bloomberg. However, that does still mark a deceleration from the +0.9% and +0.8% monthly growth in October and November respectively. The core CPI reading was also a touch stronger than anticipated, with the monthly print at +0.6% (vs. +0.5% expected), thus sending the annual core CPI measure up to +5.5% (vs. +5.4% expected) and its highest since 1991. Diving into some of the key sub-components, Covid-era favorite used cars and trucks grew +3.5% MoM. More concerning for policymakers, is the continued growth in persistent measures such as shelter, with primary and owners’ equivalent rent both increasing +0.4% MoM. If you were expecting Omicron to slow down American holiday travel, think again, lodging away from home and airfares both posted large increases, +1.2% and +2.7%, respectively. Most forecasters think the peak for inflation is sometime soon, but the pace of the glide path is open to debate. This is a topic we covered in yesterday’s CoTD, found here. Even though Treasuries had rallied strongly in the immediate aftermath of the report, with the 10yr yield falling back to 1.709% at the intraday low, yields pared back those losses to end the session basically unchanged at 1.74% (+0.7bps). CPI was expected to be bad and therefore the ability to shock was relatively low. However this tame overall move masked a divergence between a sharp bounceback in the 10yr real yield (+7.5bps) and a decline in inflation breakevens (-7.5bps) as the worst fears from the report weren’t realised. Over in Europe however, there was a more sustained rally, with yields on 10yr bunds down -3.2bps to -0.06%, having come very close in recent days to moving back into positive territory for the first time since May 2019. Furthermore, there was a continued divergence between the two regions at the front end of the curve, with the gap between 2yr yields on Treasuries and bunds widening to 153bps yesterday, which is the biggest since the pandemic began. Staying with bonds, our US econ and Rates strategy team published a joint piece last night outlining their early expectations for QT, here. For equities, the lack of an inflation surprise meant that they got a continued reprieve following last week’s selloff, with the S&P 500 (+0.28%) advancing for a 2nd day running for the first time this year, whilst in Europe the STOXX 600 (+0.65%) posted an even stronger advance. Megacap tech stocks were a noticeable outperformer, with the FANG+ index gaining +1.25%, whilst in Europe the STOXX Banks index (+1.22%) hit a fresh 3-year high. On the topic of inflationary pressures, one asset that continued its upward march was oil yesterday, with Brent Crude (+1.13%), just missing its first close above $85/bbl since October yesterday. Bear in mind it was only 6 weeks earlier that Brent hit its post-Omicron closing low, just beneath $69/bbl, so it’s now up by more than $16/bbl over that period. WTI (+1.75%) saw a similar increase yesterday, which won’t be welcome news to those who’d hoped the recent decline in energy prices late last year would offer some relief on the inflation front. That said, WTI oil is making a great case to be the top-performing major asset for a second year running at the minute, having advanced by over +10% since the start of the year.. This morning, Asian markets are mostly trading lower. The Nikkei (-0.91%) is leading losses in the region, followed by the CSI (-0.55%), Shanghai Composite (-0.31% ) and Kospi (-0.19%). Elsewhere, Hong Kong's Hang Seng index (+0.07%) is swinging between gains and losses. In stock news, Cruise operator Genting Hong Kong Ltd nosedived by a record 56%, after it resumed trading today following last week's suspension as the company indicated the possibility of default. Looking forward, US equity futures are indicating a weak start with the S&P 500 (-0.15%), Nasdaq (-0.26%) and Dow Jones (-0.11%) contracts trading in the red. On the Covid front, there was further good news from the UK as the latest wave showed further signs of ebbing. For the UK as a whole, the total number of reported cases over the last 7 days is now down -19% compared with the previous 7 day period, whilst in England the number of Covid patients in a mechanical ventilation bed has dropped to its lowest in almost 3 months, before we’d even heard of the Omicron variant. For those following credit, our colleagues in the European Leveraged Finance Research team have just published their quarterly top trade ideas. You can find the report here. Looking at yesterday’s other data, Euro Area industrial production grew by +2.3% in November (vs. +0.3% expected), although the October reading was revised down to show a -1.3% contraction. To the day ahead now, and one of the highlights will be Fed Governor Brainard’s nomination hearing at the Senate Banking committee to become Fed Vice Chair. Other central bank speakers include the Fed’s Barkin and Evans, ECB Vice President de Guindos and the ECB’s Elderson, along with the BoE’s Mann. Separately, data releases from the US include December’s PPI and the weekly initial jobless claims, whilst there’s also Italy’s industrial production for November. Tyler Durden Thu, 01/13/2022 - 08:00.....»»

Category: blogSource: zerohedgeJan 13th, 2022

Micron (MU) Ships 176-Layer QLC NAND, Launches 2400 SSD

Micron (MU) ships 176-layer QLC NAND SSDs in volumes and introduces 176-layer QLC NAND-based 2400 PCIe Gen4 NVMe SSD. Micron Technology MU recently announced that it has initiated the volume shipments of its176-layer Quad-level cell (“QLC”) NAND Solid State Drive (“SSD”). The first-of-its-kind technology delivers a layer count and density unprecedented in QLC NAND flash storage.With its market-leading data density and best-in-class performance, the 176-layer QLC NAND flash memory enables high storage density and design flexibility for the first time ever. It is designed for use cases involving client and data center environments. It will be incorporated into selective Micron Crucial consumer SSDs and made available for system designers.The new 176-layer QLC NAND is available with the introduction of the Micron 2400 SSD, the world’s first and most advanced 176-layer QLC NAND based peripheral component interconnect express (“PCIe”) Gen4 NVM express (“NVMe”) for client applications. Built with industry-leading storage density, the 176-layer PCIe Gen4 NVMe SSD is the world’s first 2TB SSD available in a 22x30mm form factor. It is available in three compact M.2 form factors and is ideal for high-capacity storage in form factors to fit thin and light designs without compromising user experiences.The new 2400 PCIe Gen4 QLC SSD is likely to accelerate the adoption of QLC in client devices as it features broader design options with a better affordable capacity. The latest move strengthens Micron’s leadership in QLC technology volume production.Micron continues to witness growing demand for memory chips from cloud-computing providers and acceleration in 5G cellular network adoptions. In July 2021, the company had started volume shipments of the world’s first 176-layer NAND Universal Flash Storage 3.1 mobile solution. Prior to that, in November 2020, the company had commenced volume shipments of the world’s first 176-layer 3D NAND flash memory, achieving unprecedented, industry-pioneering density and performance.Micron’s 176-layer NAND technology serves as an essential and powerful building block in technologists’ toolboxes across a broad array of sectors. The technology offers replacement-gate architecture, which combines charge traps with Complementary Metal Oxide Semiconductor-under-array design. It enhances performance by delivering 35% faster read and write times quickly booting and increasing application responsiveness.The 176-layer NAND technology is accessible for a broad range of applications that include mobile, automotive, client, consumer and data center applications. It propels flash adoption in workloads such as data lakes, artificial intelligence and big data analytics.Micron Technology, Inc. Price and Consensus Micron Technology, Inc. price-consensus-chart | Micron Technology, Inc. QuoteDuring the first-quarter fiscal 2022, Micron reported NAND revenues of $1.88 billion, which represented 24% of the total top line and rose 19% on a year-over-year basis. The company’s Storage Business Unit revenues, comprising SSD NAND components, totaled $1.15 billion, increasing 26% year over year.Zacks Rank & Stocks to ConsiderMicron currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader computer and technology sector include the largest global Customer Relationship Management vendor Salesforce CRM and Hewlett Packard HPE, both flaunting a Zacks Rank #1 (Strong Buy), and Advanced Micro Devices AMD carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Salesforce’s fourth-quarter fiscal 2022 earnings has been revised downward by 7.6% to 73 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved upward by 0.43% to $4.68 per share in the last 60 days.Salesforce’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 44.2%. CRM stock has appreciated 9% in the past year.The Zacks Consensus Estimate for HPE’s first-quarter fiscal 2022 earnings has been revised downward by 6.1% to 46 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved north by 1.5% to $2.03 per share in the past 90 days.HPE’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14.4%. Shares of HPE have rallied 40.4% in the past year.The Zacks Consensus Estimate for Advanced Micro Devices’ fourth-quarter 2021 earnings has been revised upward by 7 cents to 75 cents per share over the past 90 days. For 2021, earnings estimates have moved north by 0.38% to $2.65 per share in the last 30 days.Advanced Micro Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14%. Shares of AMD have rallied 44% in the past year. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report salesforce.com, inc. (CRM): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksJan 13th, 2022

Ambarella (AMBA) Unveils AI-Based Image Signal Processor

Ambarella (AMBA) launches AI-based Image Signal Processor ("AISP") in CES 2022, which features low light color imaging and better HDR processing than state-of-the-art traditional image signals. Ambarella AMBA recently announced the launch of Artificial Intelligence (“AI”)-based Image Signal Processor (“AISP”) during the ongoing Consumer Electronics Show (“CES”) 2022 in Las Vegas.The new AISP technology utilizes neural networks to augment the image processing done by the hardware ISP integrated into its system-on-chips (“SoC”). This enables color imaging with low light at very low lux levels and minimal noise unlike the traditional cameras, which are noisy and deliver dark black and white video in low-light conditions. It reduces external illuminations by offering higher dynamic range processing up to 100X compared to state-of-the-art traditional image signals.With this breakthrough technology, Ambarella intends to strengthen its position in the security and automotive industries where full-color night vision is essential. The AISP tech reduces total system costs of building high-quality cameras by using low cost sensors to deliver more natural color reproduction.Ambarella’s new launch is expected to be available across its entire CVflow SoC portfolio at resolutions up to 4K in 2022.With all automakers developing self-driving cars, there has been a high demand for camera-based SoCs and computer vision technology in recent times. Ambarella, being an AI silicon company, has deep technical knowledge in camera-based SoCs and enhanced computer vision capabilities. Growing demand for an advanced driving assistance system (“ADAS”) is likely to act as a key catalyst for the company’s near-term growth.Ambarella continues to expand its CVflow family of AI processors through consecutive global collaborations. Very recently, during the CES 2022, it unveiled CV3 AI domain controller SoC, ideal for implementing autonomous driving for vehicles from Level 2+ to Level 4, single- and multi-camera ADAS, Driver Monitoring System (“DMS”) and in-cabin solutions, single- and multi-channel electronic mirrors with blind-spot detection, and intelligent parking assistance systems.In December 2021, it collaborated with Israel-based Autobrains to develop a scalable range of ADAS solutions for the automotive mass market. In September, it partnered with China’s DongfengFengshen (Aeolus) to build DMS for the Yixuan Max vehicle.In August, it announced that Moscow-based Yandex’s new SignalQ2 LTE-enabled DMS camera is based on the company’s CV25 edge AI vision SoC. In the same month, KeepTruckin, a fleet management company, selected CVflow’s CV22 edge AI vision SoC for its new AI Dashcam.Ambarella, Inc. Price and Consensus Ambarella, Inc. price-consensus-chart | Ambarella, Inc. QuoteAmbarella has been benefiting from solid momentum in CV2, CV22 and CV25. In fiscal 2020, these products generated production revenues from 1,000 customers.Automotive and Internet of Things cameras are driving Ambarella’s top line. During the third quarter of fiscal 2022, the company’s revenues increased 64% to $92.2 million, primarily driven by improvement in the automotive and security camera businesses.Zacks Rank & Stocks to ConsiderAmbarella currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader computer and technology sector include the largest global Customer Relationship Management vendor Salesforce CRM and Hewlett Packard HPE, each flaunting a Zacks Rank #1 (Strong Buy), and CACI International CACI carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Salesforce’s fourth-quarter fiscal 2022 earnings has been revised downward by 7.6% to 73 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved upward by 0.43% to $4.68 per share in the last 60 days.Salesforce’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 44.2%. CRM stock has appreciated 15.6% in the past year.The Zacks Consensus Estimate for HPE’s first-quarter fiscal 2022 earnings has been revised downward by 6.1% to 46 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved north by 1.5% to $2.03 per share in the past 90 days.HPE’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14.4%. Shares of HPE have rallied 40.5% in the past year.The consensus mark for CACI’s second-quarter fiscal 2022 earnings has been revised downward to $3.99 per share from $4.43 over the past 90 days. For fiscal 2022, earnings estimates have been revised downward by 8.9% to $16.42 per share in the last 90 days.CACI’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 18.8%. Shares of CACI have increased 15.6% in the past year. Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through November, the Zacks Top 10 Stocks gained an impressive +962.5% versus the S&P 500’s +329.4%. Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.Be First To New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report salesforce.com, inc. (CRM): Free Stock Analysis Report CACI International, Inc. (CACI): Free Stock Analysis Report Ambarella, Inc. (AMBA): Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJan 6th, 2022

Ambarella (AMBA) Introduces CV3 AI Domain Controller SoC

Ambarella (AMBA) launches CV3 AI domain controller SoC for implementing autonomous driving for vehicles from Level 2+ to Level 4. Ambarella AMBA recently unveiled CV3 artificial intelligence (“AI”) domain controller system-on-chips (“SoC”). The platform is ideal for implementing autonomous driving for vehicles from Level 2+ to Level 4, single- and multi-camera advanced driving assistance system (“ADAS”), Driver Monitoring System (“DMS”) and in-cabin solutions, single- and multi-channel electronic mirrors with blind-spot detection, and intelligent parking assistance systems.The single-chip provides up to 500 eTOPS, i.e., Graphic Processing Unit (“GPU”) equivalent trillion operations per second of CVflow AI processing for neural network (“NN”) computation. The system includes a general vector processor (“GVP”), an advanced image processor, a dense stereo and optical flowengine, up to 16 Arm Cortex-A78AE Central Processing Units (“CPU”), and an automotive GPU, in a single SoC. It will reduce the cost and complexity of software development by providing an alternative to the fragmented ADAS SoC offerings from Ambarella’s peers.Additionally, the CV3 family accelerates automakers’ development timelines and simplifies the deployment of new features by providing the headroom for a single, robust over-the-air update implementation.Its neural vector processor (NVP) is enhanced to support the latest advancements in NN inference and offers 42x improvements over Ambarella’s prior family of SoCs. This is complemented by the new floating-point GVP, designed to offload classical computer vision and radar processing from the NVP engines and floating-point intensive algorithms from the Arm CPUs.Ambarella’s CV3 delivers high-resolution video recording and streaming at very low bit rates with efficient encoding in H.265 and H.264 video formats. It includes a hardware security module, which provides isolation of different domains, secure software provisioning, a suite of advanced cybersecurity features such as asymmetric/symmetric crypto acceleration, secure storage and key provisioning, encrypted CVflow tasks, true random number generator, one-time programmable memory, dynamic random access memory (“DRAM”) scrambling and DRAM virtualization.The CV3 simultaneously processes in-cabin sensing applications, including driver and occupant monitoring, along with covering the whole AD stack. It supports the full range of viewing, recording, sensing and path planning applications. Automakers can utilize this unified CVflow platform across all models unlike developing different software stacks for entry-level, mid-range and premium vehicles.The system has multiple options to meet the product strategies of original equipment manufacturers and Tier 1s. It is expected to be available for sampling during the first half of 2022.Ambarella, Inc. Price and Consensus Ambarella, Inc. price-consensus-chart | Ambarella, Inc. QuoteWith all automakers developing self-driving cars, there has been a high demand for camera-based SoCs and computer vision technology in recent times. Ambarella, being an AI silicon company, has deep technical knowledge in camera-based SoCs and enhanced computer vision capabilities. Growing demand for ADAS is a key catalyst for the company’s near-term growth.Ambarella continues to expand its CVflow family of AI processors through consecutive global collaborations. In December 2021, it collaborated with Israel-based Autobrains to develop a scalable range of ADAS solutions for the automotive mass market. In September, it partnered with China’s DongfengFengshen (Aeolus) to build DMS for the Yixuan Max vehicle.In August, it announced that Moscow-based Yandex’s new SignalQ2 LTE-enabled DMS camera is based on the company’s CV25 edge AI vision SoC. In the same month, KeepTruckin, a fleet management company, selected CVflow’s CV22 edge AI vision SoC for its new AI Dashcam.Ambarella has been benefiting from solid momentum in CV2, CV22 and CV25. In fiscal 2020, these products generated production revenues from 1,000 customers.Automotive and Internet of Things cameras are also driving Ambarella’s top line. During the third quarter of fiscal 2022, the company’s revenues increased 64% to $92.2 million, primarily driven by improvement in the automotive and security camera businesses.Zacks Rank & Stocks to ConsiderAmbarella currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader computer and technology sector include the largest global Customer Relationship Management vendor Salesforce CRM and Hewlett Packard HPE, each flaunting a Zacks Rank #1 (Strong Buy), and CACI International CACI carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Salesforce’s fourth-quarter fiscal 2022 earnings has been revised downward by 7.6% to 73 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved upward by 0.43% to $4.68 per share in the last 60 days.Salesforce’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 44.2%. CRM stock has appreciated 14.9% in the past year.The Zacks Consensus Estimate for HPE’s first-quarter fiscal 2022 earnings has been revised downward by 6.1% to 46 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved north by 1.5% to $2.03 per share in the past 90 days.HPE’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14.4%. Shares of HPE have rallied 39.8% in the past year.The consensus mark for CACI’s second-quarter fiscal 2022 earnings has been revised downward to $3.99 per share from $4.43 over the past 90 days. For fiscal 2022, earnings estimates have been revised downward by 8.9% to $16.42 per share in the last 90 days.CACI’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 18.8%. Shares of CACI have increased 16.7% in the past year. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report salesforce.com, inc. (CRM): Free Stock Analysis Report CACI International, Inc. (CACI): Free Stock Analysis Report Ambarella, Inc. (AMBA): Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJan 5th, 2022

NVIDIA"s (NVDA) DRIVE Orin SoC to Power TuSimple"s ADC Unit

NVIDIA (NVDA) collaborates with San Diego-based autonomous driving tech company, TuSimple, to develop and design advanced ADC by incorporating its DRIVE Orin SoC. NVIDIA Corporation NVDA recently announced the expansion of its partnership with the San Diego-based autonomous driving tech company, TuSimple TSP, to jointly design and develop an advanced autonomous domain controller (“ADC”) specifically for the latter’s Level 4 self-driving trucking applications.The ADC will serve as the central compute unit of an autonomous truck processing hundreds of trillions of operations per second (“TOPS”), which include mission-critical perception, planning and actuation functions. Integrating NVIDIA’s DRIVE Orin system-on-a-chip (“SoC”) into the ADC unit, TuSimple will enhance its Level 4 autonomous trucking applications.This collaboration with NVIDIA will accelerate TuSimple’s ability to put self-driven trucks on its Autonomous Freight Network (“AFN”) services, a freight transportation network that allows autonomous trucks to move freight through digitally mapped routes at strategically placed terminals. It will provide the self-driving tech company with a competitive edge in the market.NVIDIA’s DRIVE Orin SoC powers autonomous driving capabilities, confidence views, digital clusters, and artificial intelligence (“AI”) cockpits. It is designed to handle a large number of applications and deep neural networks that run simultaneously in autonomous vehicles and robots, while achieving systematic safety standards. It consists of 17 billion transistors and delivers 254 TOPS. It enables the developers to build, scale, and leverage one development investment across an entire fleet from Level 2+ systems to Level 5 entirely driverless vehicles.The company’s foray into the autonomous vehicles and other automotive electronics space is positive. NVIDIA is working with more than 320 automakers, tier-one suppliers, automotive research institutions, high-definition mapping companies and start-ups to develop and deploy AI systems for self-driving vehicles.NVIDIA’s focus on incorporating AI into the cockpit for infotainment systems is enabling it to grow its autonomous driving revenues. The company expects its automotive total addressable market to be $30 billion by 2025, which comprises $25 billion for driving, $3 billion for training/development of deep neural networks and $2 billion for validation and testing.During third-quarter fiscal 2022, NVIDIA’s revenues from the Auto market platform totaled $135 million, up 8% on a year-over-year basis. This rise was primarily aided by the sustained recovery in the global automotive production volumes and the ramp-up of self-driving programs.NVIDIA Corporation Price and Consensus NVIDIA Corporation price-consensus-chart | NVIDIA Corporation QuoteZacks Rank & Stocks to ConsiderCurrently, NVIDIA carries a Zacks Rank #2 (Buy), while TuSimple carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader computer and technology sector include the largest global Customer Relationship Management vendor Salesforce CRM and Hewlett Packard HPE, each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Salesforce’s fourth-quarter fiscal 2022 earnings has been revised downward by 7.6% to 73 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved upward by 0.43% to $4.68 per share in the last 60 days.Salesforce’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 44.2%. CRM stock has appreciated 14.9% in the past year.The Zacks Consensus Estimate for HPE’s first-quarter fiscal 2022 earnings has been revised downward by 6.1% to 46 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved north by 1.5% to $2.03 per share in the past 90 days.HPE’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14.4%. Shares of HPE have rallied 39.8% in the past year. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report salesforce.com, inc. (CRM): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report TuSimple Holdings Inc. (TSP): Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJan 5th, 2022

NVIDIA (NVDA) Up 125% Last Year: Will Rally Continue in 2022?

NVIDIA (NVDA) stock is likely to continue the upward momentum as the company is benefiting from strong graphic chip demand across multiple end markets. NVIDIA Corporation NVDA stock has outperformed the Zacks Semiconductor - General industry and the S&P 500 in 2021. Shares of NVIDIA soared 125.3% last year compared with the Semiconductor - General industry and the S&P 500 index’s rally of 63.2% and 27.7%, respectively.The stock’s price rally reflects the company’s robust fundamentals. Therefore, if you haven’t taken advantage of the share-price appreciation yet, it’s time you add the stock to your portfolio.The company performed brilliantly last year and has the potential to sustain the momentum in 2022 as well.What’s Driving NVDA Stock Higher?NVIDIA has been benefiting from the coronavirus-induced work-from-home and learn-at-home wave. Strong growth in GeForce desktop and notebook Graphic Processing Units (“GPU”) has been boosting its gaming revenues. A surge in the Hyperscale demand remains a tailwind for the company’s Data Center business. Solid uptake of artificial intelligence (“AI”)-based smart cockpit infotainment solutions is a boon.Data center presents a solid growth opportunity for the company. As more businesses are shifting to the cloud, the need for data centers is increasing immensely. To cater to this huge demand, data center operators are expanding their operations across the world, which is driving the demand for GPUs. The company’s revenues from the Data Center end-market increased 55% year over year to $2.94 billion in the third quarter of fiscal 2022.Better visualization and speed are needed for a thrilling gaming experience, which NVIDIA successfully provides through its portfolio of Pascal architecture-based GPUs. With the emergence of Gaming-as-a-Service and massively multiplayer online games concepts, the demand for GPUs has been surging exponentially.The Gaming end-market’s revenues reached $3.22 billion in the third quarter of fiscal 2022, reflecting a 42% year-over-year growth. Image Source: Zacks Investment ResearchNVIDIA GPUs have been gaining rapid traction with the proliferation of AI. The increasing use of AI tools in data center, automotive, healthcare and manufacturing industries is expected to drive the demand for GPUs in the long haul.NVIDIA is already a dominant player in the data center market. The company enjoys a first-mover advantage in the AI field and its expanding product portfolio is capable of capitalizing on the growing adoption of AI in various industries.Solid Rank & Growth ExpectationsNVIDIA carries a Zacks Rank #2 (Buy) currently.The Zacks Consensus Estimate of $4.33 for fiscal 2022 earnings suggests growth of approximately 73.2% from the year-ago period. The long-term earnings per share growth rate is estimated to be 19.2%.NVIDIA has an impressive earnings surprise history. The company outpaced earnings estimates in each of the trailing four quarters, the average surprise being 7.7%.Analysts have raised the estimates for fiscal 2022 and fiscal 2023 over the past 60 days, reflecting their confidence in the company. During the same period, the Zacks Consensus Estimate for 2022 and 2023 moved north by 12 cents and 46 cents, respectively.Other Stocks to ConsiderSome other top-ranked stocks from the broader computer and technology sector include the largest global Customer Relationship Management vendor Salesforce CRM and Hewlett Packard HPE, each flaunting a Zacks Rank #1 (Strong Buy), and CACI International CACI carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Salesforce’s fourth-quarter fiscal 2022 earnings has been revised downward by 7.6% to 73 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved upward by 0.43% to $4.68 per share in the last 30 days.Salesforce’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 44.2%. CRM stock has appreciated 14.2% in the last year.The Zacks Consensus Estimate for HPE’s first-quarter fiscal 2022 earnings has been revised downward by 6.1% to 46 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved north by 1.5% to $2.03 per share in the past 90 days.HPE’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14.4%. Shares of HPE have rallied 33.1% in the last year.The consensus mark for CACI’s second-quarter fiscal 2022 earnings has been revised upward to $4.11 per share from $4.01 over the past 30 days. For fiscal 2022, earnings estimates have been revised downward by 51 cents to $16.42 per share in the last 60 days.CACI’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 18.8%. Shares of CACI have increased 8% in the last year. Zacks’ Top Picks to Cash in on Artificial Intelligence This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report salesforce.com, inc. (CRM): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report CACI International, Inc. (CACI): Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJan 4th, 2022

Hewlett Packard"s (HPE) GreenLake Selected by NTT Business

Hewlett Packard's (HPE) GreenLake has been selected by NTT Business Solutions to provide hybrid cloud services and accelerate the digital transformation of the local governments and institutions in western Japan. Hewlett Packard Enterprise HPE recently announced that the Nippon Telegraph and Telephone Corporation’s ("NTT") NTT Business Solutions selected its edge-to-cloud platform, GreenLake, to deliver its growing ‘Regional Revitalization Cloud’ project.Per the agreement, the printing major intends to offer hybrid cloud service to western Japan’s local governments, educational institutions and businesses. It will be addressing data sovereignty issues while locating critical data close to the end customers.NTT Business Solutions’ Regional Revitalization Cloud aims at solving regional issues, thus aiding local businesses and institutions in accelerating their digital transformation. It combines HPE’s Greenlake platform with Microsoft Azure public cloud to deliver the model.The GreenLake cloud platform runs HPE ProLiant for Microsoft Azure Stack Hub, an integrated hybrid cloud that incorporates compute, storage, and networking, to provide Azure-consistent services to the telecommunication company from its own data centers.With HPE GreenLake’s fast and efficient hybrid cloud services, NTT Business Solutions will be able to accommodate its different requirements, resources and budgets across 30 prefectures in western Japan. Currently, the company has launched cloud services in Tottori, Kyoto, and Aichi.HPE GreenLake offers customers better visibility into resource utilization across co-located and public cloud-based workloads. The services ensure the administration of applications and data. The edge-to-cloud platform added more than 300 new customers in the last quarter, taking the total customer count to more than 1250.Hewlett Packard Enterprise Company Price and Consensus Hewlett Packard Enterprise Company price-consensus-chart | Hewlett Packard Enterprise Company QuoteHPE has recently signed multiple agreements with enterprises outside the United States for its GreenLake brand’s offerings. During the fourth quarter, the platform-as-a-service company reported that 67% of its total revenues came from outside the United States.Recently, in November, Ficomirrors, a global automotive supplier to automakers worldwide, selected HPE GreenLake to improve production efficiency and power a flexible manufacturing system. In October, CARDNET, Japan’s leading credit card payment network, selected the edge-to-cloud platform to deliver a robust, agile cloud service and support the growing demand for digital payment and settlement services in the country.In the same month, Ireland-based global airports and travel retail group, daa, selected HPE’s GreenLake to power its mission-critical operational services amid the pandemic-induced turmoil.In September, South Korea-based SK Inc. C&C selected GreenLake to transform an internal VDI system into a new cloud service. Prior to that, HPE signed a $2-billion contract with the National Security Agency to deliver high-performance computing technology services through GreenLake.In August, HPE collaborated with the largest Australian container terminal operator, Patrick Terminals, to power the sea operator’s IT infrastructure through GreenLake.Zacks Rank & Other Stocks to ConsiderHPE currently sports a Zacks Rank #1 (Strong Buy).Some other top-ranked stocks in the broader technology sector are Arrow Electronics ARW, which sports a Zacks Rank #1, while Advanced Micro Devices AMD and Qualcomm QCOM carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Arrow’s Zacks Consensus Estimate for fourth-quarter fiscal 2021 earnings has been raised to $4.42 per share from $3.85 in the past 60 days. For fiscal 2021, earnings estimates have moved north by 8.1% to $14.6 per share over the past 60 days.Arrow beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 18.6%. Shares of ARW have appreciated 26.8% year-to-date (“YTD”).The Zacks Consensus Estimate for Advanced Micro Devices’ fourth-quarter 2021 earnings has been revised upward by 7 cents to 75 cents per share over the past 60 days. For 2021, earnings estimates have moved north by 0.38% to $2.65 per share in the last seven days.Advanced Micro Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14%. Shares of AMD have rallied 48.1% in the YTD period.The consensus mark for Qualcomm’s first-quarter fiscal 2022 earnings has moved south to $3 per share from $3.01 in the past seven days. For fiscal 2022, earnings estimates have been revised downward by 0.10% to $10.48 per share in the past seven days.Qualcomm’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.2%. Shares of QCOM have gained 16% YTD.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 21st, 2021

Micron (MU) Q1 Earnings Top, Stock Rises on Strong Outlook

Micron's (MU) Q1 results reflect solid demand for its memory chips used in phones and computers as well as the positive impact of the auto industry's impressive recovery from the pandemic-related shutdowns. Micron Technology’s MU stock surged 6.8% in Monday’s extended trading session after the memory chip maker reported better-than-expected first-quarter fiscal 2022 results and provided a strong second-quarter outlook.The company’s fiscal first-quarter non-GAAP earnings per share of $2.16 beat the Zacks Consensus Estimate of $2.10. In addition, non-GAAP earnings registered year-over-year growth of a whopping 177%. Quarterly revenues of $7.69 billion outpaced the consensus mark of $7.66 billion and increased about 33% from the year-ago quarter’s $5.77 billion.Q1 Revenue DetailsDynamic random access memory (“DRAM”) revenues of $5.59 billion, accounting for 73% of the total revenues in the fiscal first quarter, jumped 38% year over year but declined 8% sequentially. Bit shipments declined in the mid-single-digit percentage range sequentially, while average selling price (ASP) decreased in the low-single-digit percentage range on a quarter-over-quarter basis.Micron Technology, Inc. Price and EPS Surprise Micron Technology, Inc. price-eps-surprise | Micron Technology, Inc. QuoteNAND revenues of $1.88 billion, representing 24% of the total top line, were up 19% on a year-over-year basis but declined 5% quarter over quarter. While NAND ASP decreased in the mid-single-digit percentage band, bit shipments remained flat sequentially.Segment-wise, revenues of $3.41 billion from the computing and networking business unit climbed 34% from the year-ago quarter but declined 10% sequentially. The company noted that revenues were mainly driven by the strong performance across the data center and graphics markets. However, a decline in client revenues led to the segment’s soft quarter-over-quarter performance.Revenues of $1.91 billion from the Mobile Business Unit climbed 27% on a year-over-year basis and 1% sequentially. This year-over-year improvement was enhanced by healthy demand in the mobile market as 5G handset sales continue to rise.Embedded Business Unit’s revenues logged in $1.22 billion, up 51% from the year-ago period but down 10% from the previous quarter. The year-over-year growth was primarily aided by strong execution as well as solid demand across the automotive and industrial markets.Revenues from the Storage Business Unit, comprising solid-state drive (“SSD”) NAND components, totaled $1.15 billion, up 26% year over year but down 4% sequentially. This year-over-year growth was mainly supported by robust SSD demand from the data-center customers.MarginsMicron’s non-GAAP gross profit of $3.62 billion surged 103% year over year but declined 8.8% sequentially. Non-GAAP gross margin of 47% improved from the year-ago quarter’s 31%. However, non-GAAP gross margin contracted 100 basis points (bps) from 48% in the previous quarter, mainly due to higher sales mix of the lower margin NAND products.Micron’s non-GAAP operating income of $2.73 billion soared 180% year over year but declined 11% sequentially. Non-GAAP operating margin doubled more than to 35% from the year-earlier quarter’s 17%, primarily on higher gross margin and lower operating expenses as a percentage of revenues. However, non-GAAP operating margin contracted 200 bps on a quarter-over-quarter basis.Non-GAAP operating expenses came in at $891 million compared with the previous quarter’s $891 million and the year-ago quarter’s $811 million. As a percentage of revenues, operating expenses for the fiscal first quarter came in at 11.6% compared with the previous quarter’s 10.8% and the year-ago quarter’s 14%.Balance Sheet and Cash FlowThe company exited the reported quarter with cash and investments of $11.5 billion compared with $10.5 billion recorded at the end of the prior quarter. Furthermore, MU ended the quarter with total liquidity of $14 billion compared with $13 billion witnessed at the end of the fourth quarter of fiscal 2021.Micron’s long-term debt as of Dec 2, 2021, was $6.90 billion compared with $6.62 billion witnessed at the end of the fourth quarter of fiscal 2021.The company generated operating cash flow of $3.9 billion during the fiscal first quarter and free cash flow of $671 million. It repurchased stocks worth $259 million and paid $112 million in dividends.GuidanceMicron provided strong second-quarter fiscal 2022 guidance. The company anticipates revenues of $7.50 billion (+/-$200 million) for the fiscal second quarter, which is higher than the Zacks Consensus Estimate of $7.28 billion.For the fiscal second quarter, MU projects non-GAAP gross margin of 46% (+/-100 bps). Operating expenses on a non-GAAP basis are estimated at $975 million (+/-$25 million).Adjusted earnings per share are anticipated at $1.95 (+/-10 cents). The consensus mark is pegged at $1.85 per share.On its earnings conference call, Micron stated that demand from PC customers is stable and demand across other end markets remains strong. On its fourth-quarter fiscal 2021 earnings conference call, the company warned that bit shipments for the DRAM and NAND memory chips are set to decline in the fiscal first quarter as PC manufacturers are adjusting their memory and storage purchases due to the shortage of other components required to complete PC assembling.Furthermore, Micron expects the current tight supply components, which it requires to manufacture products, to improve gradually throughout calendar year 2022.Zacks Rank & Other Stocks to ConsiderCurrently, Micron carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader technology sector include Google-parent Alphabet GOOGL, Diodes DIOD and PTC Inc. PTC, each sporting a Zacks Rank #1 (Strong Buy).  You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Alphabet’s fourth-quarter 2021 earnings has been revised downward by a penny to $26.71 per share over the past 30 days. For 2021, earnings estimates have moved upward by 43 cents to $108.29 per share in the last 30 days.Alphabet’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 41.5%. GOOGL stock has rallied 61.6% year to date (YTD).The Zacks Consensus Estimate for Diodes’ fourth-quarter 2021 earnings has been revised upward by 23.9% to $1.45 per share over the past 60 days. For 2021, earnings estimates have moved upward by 6.3% to $5.06 per share over the past 60 days.Diodes’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 10%. Shares of DIOD have rallied 42.5% YTD.The consensus mark for PTC’s first-quarter fiscal 2022 earnings has been revised upward to $1.00 per share from 90 cents 60 days ago. For fiscal 2022, earnings estimates have been revised upward by 26 cents to $4.19 per share in the last 60 days.PTC’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missed the same on one occasion, the average surprise being 47.8%. Shares of PTC have increased 0.3% YTD.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Micron Technology, Inc. (MU): Free Stock Analysis Report Diodes Incorporated (DIOD): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report PTC Inc. (PTC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 21st, 2021

Micron (MU) Q1 Earnings to Gain From Solid Memory Chip Demand

Micron's (MU) first-quarter results are likely to reflect the benefits from a continued strong memory chip demand environment. However, supply-chain constraints might have hurt sales and profit growth. Micron Technology MU is scheduled to report first-quarter fiscal 2022 results on Dec 20.The company’s fiscal first-quarter performance is likely to have benefited from strong memory chip demand from data-center operators, personal computers (PCs) and smartphone makers along with the auto industry's recovery from the pandemic woes.Strong Memory Chip Demand EnvironmentThe pandemic-induced lockdown and social-distancing measures are spurring demand for PCs and notebooks as more workers and students are now working and learning from their homes. This trend is likely to have continued in the fiscal first quarter as well, thereby aiding Micron’s top line.The work-and-learn-from-home necessity amid the COVID-19 crisis is stoking demand for cloud storage. Furthermore, the social-distancing trend has boosted the usage of online services globally. Therefore, data-center operators are enhancing their cloud-storage capacities in a bid to accommodate the increasing demand for cloud services, which is fueling demand for memory chips.Micron Technology, Inc. Price and EPS Surprise Micron Technology, Inc. price-eps-surprise | Micron Technology, Inc. QuoteMoreover, solid recoveries in sales across the smartphone and automotive industries are likely to have supported MU’s overall financial performance during the quarter under review. According to the latest forecast by Gartner, the worldwide sales of smartphones will likely be up 11.4% year over year to 1.5 billion units in 2021. This suggests a sharp improvement from the 10.5% decline registered in 2020.However, industry-wide component supply constraints are expected to have hurt Micron’s top and bottom lines in the first quarter. On its fourth-quarter fiscal 2021 earnings conference call, Micron warned that bit shipments for the dynamic random access memory (“DRAM”) and NAND memory chips are set to decline in the fiscal first quarter as PC manufacturers are adjusting their memory and storage purchases due to the shortage of other components required to complete PC assembling.Furthermore, MU is witnessing supply constraints for certain integrated circuit components, which are expected to somewhat negatively impact bit shipments in the quarter under review.Zacks Rank & Stocks to ConsiderCurrently, Micron carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader technology sector include Google-parent Alphabet GOOGL, Diodes DIOD and PTC Inc. PTC, each sporting a Zacks Rank #1 (Strong Buy).  You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Alphabet’s fourth-quarter 2021 earnings has been revised downward by a penny to $26.71 per share over the last 30 days. For 2021, earnings estimates have moved upward by 43 cents to $108.29 per share in the last 30 days.Alphabet’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 41.5%. GOOGL stock has rallied 65% year to date (YTD).The Zacks Consensus Estimate for Diodes’ fourth-quarter 2021 earnings has been revised upward by 23.9% to $1.45 per share over the last 30 days. For 2021, earnings estimates have moved upward by 6.3% to $5.06 per share over the last 30 days.Diodes’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 10%. Shares of DIOD have rallied 43.3% YTD.The consensus mark for PTC’s first-quarter fiscal 2022 earnings has been revised upward to $1.00 per share from 90 cents 60 days ago. For fiscal 2022, earnings estimates have been revised upward by 26 cents to $4.19 per share in the last 60 days.PTC’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missed the same on one occasion, the average surprise being 47.8%. Shares of PTC have declined 3.4% YTD. Bitcoin, Like the Internet Itself, Could Change Everything Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities. Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. See 3 crypto-related stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Micron Technology, Inc. (MU): Free Stock Analysis Report Diodes Incorporated (DIOD): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report PTC Inc. (PTC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 17th, 2021

Bull of the Day: Penske Automotive (PAG)

The car business is red hot with no signs of slowing down. I understand that the market’s nasty volatility has most of us bewildered. Where can we hide? Where is the easy money? The real deal remains the same. Over the long run, stocks with the strongest earnings trends will benefit investors. One way to uncover these stocks, is to lean on the Zacks Rank. Stocks in the good graces of our Zacks Rank have the strongest earnings trends. That means that we give you cheat codes of how to beat the market.Today’s Bull of the Day is one of these stocks. It’s Zacks Rank #1 (Strong Buy) Penke Automotive Group PAG. Penske Automotive Group, Inc., a diversified transportation services company, operates automotive and commercial truck dealerships. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. It operates dealerships under franchise agreements with various automotive manufacturers and distributors. The company engages in the sale of new and used motor vehicles, and related products and services comprise vehicle and collision repair services, as well as placement of finance and lease contracts, third-party insurance products, and other aftermarket products; and wholesale of parts.The reason for the favorable ranks lies in the recent earnings estimate revisions coming from analysts. Over the last sixty days, six analysts have increased their earnings estimates for the current year and next year. The bullish sentiment has pushed up our Zacks Consensus Estimates from $12.58 to $14.71 for the current year while next year’s numbers are up from $11.04 to $13.50.That means, the company expects a contraction in earnings next year. That is likely a function of the company believing this year’s supply shortage will come to an end. Bitcoin, Like the Internet Itself, Could Change Everything Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities. Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. See 3 crypto-related stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Penske Automotive Group, Inc. (PAG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 17th, 2021

Hewlett Packard"s (HPE) GreenLake Selected by Barclays

Hewlett Packard's (HPE) GreenLake selected by Britain's major global financial services provider - Barclays - to deliver its global private cloud platform. Hewlett Packard Enterprise HPE recently announced that the British universal bank, Barclays, selected its edge-to-cloud platform, GreenLake, to deliver its global private cloud platform.Per the agreement, HPE’s GreenLake will enhance the personalized banking experience for Barclays’ customers while hosting more than 100,000 workloads that include virtual desktop infrastructure (“VDI”), SQL databases, Windows server and Linux. This, in turn, will accelerate digital transformation across Barclays’ global businesses.Founded in 1690, Barclays is a major global financial services provider engaged in retail banking, credit cards, corporate and investment banking and wealth management. It moves, lends, invests and protects money for 48 million customers and clients worldwide.With HPE GreenLake Central’s fast and efficient hybrid cloud services, Barclays will be able to better manage costs, utilization, compliance, and security across the entire private cloud platform.HPE’s Pointnext Services will transform the bank’s legacy infrastructure into private cloud partnering with Barclays’ team. This will ensure automation-driven infrastructure optimization along with constant uptime, regular patching and updates.Hewlett Packard Enterprise Company Price and Consensus Hewlett Packard Enterprise Company price-consensus-chart | Hewlett Packard Enterprise Company QuoteHPE GreenLake offers customers better visibility into resource utilization across co-located and public cloud-based workloads. The services ensure the administration of applications and data. The edge-to-cloud platform added more than 300 new customers in the last quarter, taking the total customer count to more than 1250.HPE has recently signed multiple agreements with enterprises outside the United States for its GreenLake brand’s offerings. During the fourth quarter, the platform-as-a-service company reported that 67% of its total revenues came from outside the United States.Recently, in November, Ficomirrors, a global automotive supplier to automakers worldwide, selected HPE GreenLake to improve production efficiency and power a flexible manufacturing system. In October, CARDNET, Japan’s leading credit card payment network, selected the edge-to-cloud platform to deliver a robust, agile cloud service and support the growing demand for digital payment and settlement services in the country.In the same month, Ireland-based global airports and travel retail group, daa, selected HPE’s GreenLake to power its mission-critical operational services amid the pandemic induced turmoil.In September, South Korea-based SK Inc. C&C selected GreenLake to transform an internal VDI system into a new cloud service. Prior to that, HPE signed a $2-billion contract with the National Security Agency to deliver high-performance computing technology services through GreenLake.Previously in August, HPE collaborated with the largest Australian container terminal operator, Patrick Terminals, to power the sea operator’s IT infrastructure through GreenLake.Zacks Rank & Other Stocks to ConsiderHPE currently sports a Zacks Rank #1 (Strong Buy).Some other top-ranked stocks in the broader technology sector are Arrow Electronics ARW, which sports a Zacks Rank #1, while Advanced Micro Devices AMD and Qualcomm QCOM both carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Arrow’s Zacks Consensus Estimate for fourth-quarter fiscal 2021 earnings has been raised to $4.42 per share from $3.85 in the past 60 days. For fiscal 2021, earnings estimates have moved north by 8.1% to $14.6 per share over the past 60 days.Arrow beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 18.6%. Shares of ARW have appreciated 28% year-to-date (“YTD”).The Zacks Consensus Estimate for Advanced Micro Devices’ fourth-quarter 2021 earnings has been revised upward by 7 cents to 75 cents per share over the past 60 days. For 2021, earnings estimates have moved north by 0.38% to $2.65 per share in the last seven days.Advanced Micro Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14%. Shares of AMD have rallied 51.3% in the YTD period.The consensus mark for Qualcomm’s first-quarter fiscal 2022 earnings has been raised to $3.01 per share from $3 in the past 30 days. For fiscal 2022, earnings estimates have been revised upward by 1.5% to $10.49 per share in the past 30 days.Qualcomm’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.2%. Shares of QCOM have gained 17.5% YTD. Bitcoin, Like the Internet Itself, Could Change Everything Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities. Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. See 3 crypto-related stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 17th, 2021

Ambarella (AMBA), Autobrains Tie Up to Develop ADAS Solutions

Ambarella (AMBA) collaborates with Israeli AI mobility company, Autobrains, to develop ADAS solutions on its CV2 AI vision SOC portfolio. Ambarella AMBA recently announced that it has collaborated with Tel-Aviv-based artificial intelligence (“AI”) mobility company, Autobrains Technologies, to develop Advanced Driver Assistance System (“ADAS”) solutions.Per the agreement, the first jointly developed solution provides an 8-mega pixel front ADAS, which features video-based adaptive cruise control (“ACC”), automatic emergency braking, lane-keep assist, and traffic signal recognition. The solution integrates an 8-mega pixel Complementary Metal Oxide Semiconductor (“CMOS”) image sensor with Ambarella’s CV2 AI vision System-on-Chip (“SOC”) portfolio and targets a compact, single-box form factor with extremely low power consumption.The solution is compliant with current regulations and five stars New Car Assessment Program — 2023 standards. It will be demonstrated for automotive mass markets during the Consumer Electronics Show in Las Vegas. Besides this, Ambarella is developing a centralized domain control unit with Autobrains utilizing multiple cameras and a variety of additional sensors, such as radar and lidar.Founded in 2019, Autobrains offers solutions for the next generation of vehicles and mobility. Its visual intelligence platform garners a comprehensive and detailed understanding of vehicles’ environment by utilizing robust signature-based representation structures coupled with unsupervised learning methodologies. It ensures increased levels of vehicle autonomy by lowering the complexities of manual labelling of data.With all automakers developing self-driving cars, there has been a high demand for camera-based SoCs and computer vision technology in recent times. Ambarella, being an AI silicon company, has deep technical knowledge in camera-based SoCs and enhanced computer vision capabilities. Growing demand for ADAS is a key catalyst for the company’s near-term growth.Ambarella, Inc. Price and Consensus Ambarella, Inc. price-consensus-chart | Ambarella, Inc. QuoteAmbarella continues to expand its CVflow family of AI processors through consecutive global collaborations. In September, it partnered with China’s Dongfeng Fengshen (Aeolus) to build Driver Monitoring System (“DMS”) for the Yixuan Max vehicle.In August, it announced that Moscow-based Yandex’s new SignalQ2 LTE-enabled DMS camera is based on the company’s CV25 edge AI vision SoC. In the same month, KeepTruckin, a fleet management company, selected CVflow’s CV22 edge AI vision SoC for its new AI Dashcam.Ambarella is benefiting from solid momentum in CV2, CV22 and CV25. In fiscal 2020, these products generated production revenues from 1,000 customers.Automotive and Internet of Things cameras are also driving Ambarella’s top line. During the third quarter of fiscal 2022, the company’s revenues increased 64% to $92.2 million, primarily driven by improvement in the automotive and security camera businesses.Zacks Rank & Stocks to ConsiderAmbarella currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader technology sector are Arrow Electronics ARW, which sports a Zacks Rank #1 (Strong Buy), while Advanced Micro Devices AMD and Qualcomm QCOM, both carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Arrow’s Zacks Consensus Estimate for fourth-quarter fiscal 2021 earnings has been raised to $4.42 per share from $3.85 in the past 60 days. For fiscal 2021, earnings estimates have moved north by 8.1% to $14.6 per share over the past 60 days.Arrow beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 18.6%. Shares of ARW have appreciated 28.2% year-to-date (“YTD”).The Zacks Consensus Estimate for Advanced Micro Devices’ fourth-quarter 2021 earnings has been revised upward by 7 cents to 75 cents per share over the past 60 days. For 2021, earnings estimates have moved north by 0.38% to $2.65 per share in the last seven days.Advanced Micro Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14%. Shares of AMD have rallied 59.7% in the YTD period.The consensus mark for Qualcomm’s first-quarter fiscal 2022 earnings has been raised to $3.01 per share from $3 in the past 30 days. For fiscal 2022, earnings estimates have been revised upward by 1.5% to $10.49 per share in the past 30 days.Qualcomm’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.2%. Shares of QCOM have gained 24.2% YTD. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Ambarella, Inc. (AMBA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 16th, 2021

Reliance Steel (RS) Buys Massachusetts-Based Admiral Metals

Reliance Steel's (RS) acquisition of Admiral Metals will add to its existing portfolio and generate accretive earnings. Reliance Steel & Aluminum Co. RS recently acquired Admiral Metals Servicecenter Company, Inc., which is a leading distributor of non-ferrous metal products in the North-Eastern United States. This is Reliance’s 70th acquisition since its Initial Public Offering (IPO) in 1994. The terms and conditions of the transaction have not yet been disclosed.Admiral Metals, founded in 1950 and headquartered in Woburn, MA, caters to a wide variety of end markets, including the semiconductor, automotive, medical, infrastructure, aerospace and industrial markets through its eight strategically located service centers. It has a broad product offering covering around 3,000 SKUs that include aluminum, brass, bronze, copper, stainless steel and steel. It is worth noting that the company generated annual net sales of around $134 million in 2020.Reliance stated that Admiral Metals’ strong reputation in the metal industry, its high levels of customer service and next-day delivery flexibility make it a good fit. Moreover, its portfolio is synchronous to RS’ strategy of investing in businesses that immediately result in accretive earnings. The buyout will enable Admiral Metals to leverage Reliance’s scale to capitalize on further growth opportunities while retaining its strong brand recognition.RS’ shares have gained 29.3% over the past year compared with the industry’s 46.8% rise. The company’s estimated earnings growth rate for the current year is pegged at 166%.Image Source: Zacks Investment ResearchOn its third-quarter earnings call, Reliance Steel remains optimistic about the business environment and expects robust or recovering demand in the majority of its end markets. However, factors such as bottlenecks in metal supply, labor shortages and supply-chain disruptions impacting shipments, as witnessed in the third quarter, are expected to persist in the fourth quarter as well. The company expects demand to be sequentially affected by normal seasonal factors, including customer holiday-related shutdowns and fewer shipping days in the fourth quarter.Reliance Steel estimates its tons sold to be down 5-8% sequentially for the fourth quarter. Moreover, the metal prices at the beginning of the fourth quarter are higher than the average for the third quarter. Due to this upside, the company anticipates its average selling price per ton sold for the fourth quarter to go up in the range of 5-7%.Considering the above-mentioned factors, the company expects adjusted earnings per share in a band of $5.05 to $5.15 for the fourth quarter.Zacks Rank & Other Key PicksReliance Steel currently carries a Zacks Rank #2 (Buy).Other top-ranked stocks from the industrial products space include Greif, Inc. GEF, Donaldson Company, Inc. DCI and A. O. Smith Corporation AOS, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Greif has an expected earnings growth rate of 11.4% for the current year. The Zacks Consensus Estimate for the current year has been revised 5.6% upward over the past 60 days.Greif beat the Zacks Consensus Estimate for earnings in all the four trailing quarters, with the surprise being 16.76%, on average. GEF’s shares have also risen 26.2% over a year.Donaldson has an expected earnings growth rate of 15.5% for the current year. The Zacks Consensus Estimate for the current year has been revised 2% upward over the past 60 days.Donaldson beat the Zacks Consensus Estimate for earnings in all the four trailing quarters, with the surprise being 6.67%, on average. DCI’s shares have risen 4% over a year.A.O. Smith has an expected earnings growth rate of 35.2% for the current year. The Zacks Consensus Estimate for the current year has been revised 7% upward over the past 60 days.A.O. Smith beat the Zacks Consensus Estimate for earnings in all the four trailing quarters, with the surprise being 16.82%, on average. Shares of AOS have rallied around 51.9% over a year. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Reliance Steel & Aluminum Co. (RS): Free Stock Analysis Report A. O. Smith Corporation (AOS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Greif, Inc. (GEF): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 16th, 2021

Factors to Note Ahead of Micron"s (MU) Q1 Earnings Release

Micron's (MU) Q1 results are likely to reflect the benefits from strong memory chip demand from data-center operators, phone and PC manufacturers, and the auto industry's recovery from the pandemic woes. Micron Technology MU is slated to report first-quarter fiscal 2022 results on Dec 20.The company projects fiscal first-quarter adjusted earnings of $2.10 (+/- 10 cents) per share. The Zacks Consensus Estimate for its quarterly earnings, pinned at $2.10 per share, remained unchanged over the last 60 days. The consensus mark indicates a 169.2% surge from the year-ago quarter.Meanwhile, Micron estimates revenues of $7.65 billion (+/- $200 million). The consensus mark for revenues is pegged at $7.66 billion, suggesting a 32.6% increase from the year-earlier period.The company’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 6.7%.Let’s see how things have shaped up before this announcement.Micron Technology, Inc. Price and EPS Surprise Micron Technology, Inc. price-eps-surprise | Micron Technology, Inc. QuoteFactors Likely to Impact Q1 ResultsMicron’s first-quarter results are likely to have benefited from solid memory chip demand across all its end-markets. The pandemic-led work-and-learn from home trend has fueled significant demand for personal computers (PCs) and notebooks.The remote-working and online-learning trend amid the COVID-19 crisis has also stoked demand for cloud storage. Furthermore, lockdowns and social distancing measures have fueled the usage of online and e-commerce services globally, compelling data-center operators to enhance their capacities in order to accommodate the demand spike for cloud services. All these factors are likely to have aided MU’s top line during the quarter under review.A solid uptick in the dynamic random access memory (DRAM) bit shipments for the cloud, graphics, PC and notebook, 5G and automotive markets is anticipated to have acted as an upside during the to-be-reported quarter.However, industry-wide component supply constraints are expected to have hurt Micron’s top and bottom lines in the first quarter. On its fourth-quarter fiscal 2021 earnings conference call, Micron warned that bit shipments for the DRAM and NAND memory chips are set to decline in the fiscal first quarter as PC manufacturers are adjusting their memory and storage purchases due to the shortage of other components required to complete PC assembling.Furthermore, MU is witnessing supply constraints for certain integrated circuit components, which are expected to somewhat negatively impact the bit shipments in the quarter under review.Memory chip maker’s heavy dependence on China is a headwind due to the ongoing tit-for-tat trade spat between the United States and China. The restrictions on exports to Huawei might have hurt the top line of the memory chip maker.Additionally, a higher mix of lower-margin NAND, coupled with low memory prices and minimal decline in manufacturing costs, is expected to have strained the margins.Moreover, operating expenses are expected to have flared up during the fiscal fourth quarter due to the resumption of the previously delayed fiscal 2021 salary hikes in the fiscal third quarter. This might have hurt Micron’s margins and profitability during the quarter under review.What Our Model SaysOur proven model does not conclusively predict an earnings beat for Micron this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.Micron currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%.You can see the complete list of today’s Zacks #1 Rank stocks here.Other Stocks With Favorable CombinationsPer our model, CarMax KMX, MSC Industrial Direct Company MSM and Constellation Brands STZ have the right combination of elements to post an earnings beat in their upcoming releases.CarMax is slated to report third-quarter fiscal 2022 results on Dec 22. The company carries a Zacks Rank #3 and has an Earnings ESP of +6.75% at present. CarMax’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missed the same on one occasion, the average surprise being 20.5%.The Zacks Consensus Estimate for quarterly earnings is pegged at $1.50 per share, suggesting a year-over-year improvement of 5.6%. KMX’s quarterly revenues are estimated to increase 47.2% year over year to $7.63 billion.MSC Industrial Direct carries a Zacks Rank #3 and has an Earnings ESP of +0.34%. The company is scheduled to report first-quarter fiscal 2022 results on Dec 22. MSC Industrial Direct’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters while matched the same on one occasion, the average surprise being 1.9%.The Zacks Consensus Estimate for MSM’s first-quarter earnings is pegged at $1.18 per share, representing year-over-year growth of 7.3%. The consensus mark for revenues is pinned at $837 million, reflecting a year-over-year increase of 8.4%.Constellation Brands currently carries a Zacks Rank #3 and has an Earnings ESP of +2.13%. The company is expected to report its third-quarter fiscal 2022 results on Jan 6, 2022. Constellation Brands’ earnings beat the Zacks Consensus Estimate twice in the preceding four quarters while missed the same on two occasions, the average surprise being 8.8%.The Zacks Consensus Estimate for Constellation Brands’ third-quarter earnings is pinned at $2.82 per share, reflecting a year-over-year decline of 8.7%. STZ is estimated to report revenues of $2.28 billion, which suggest a decrease of 6.5% from the year-ago quarter. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Micron Technology, Inc. (MU): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report CarMax, Inc. (KMX): Free Stock Analysis Report MSC Industrial Direct Company, Inc. (MSM): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 16th, 2021

TD SYNNEX"s (SNX) Hyve Adds Micron 7400 NVMe SSD to Polaris 9219

TD SYNNEX's (SNX) subsidiary, Hyve Solutions, qualifies Micron's 7400 E1.S NVMe SSD for its Polaris 9219 portfolio. TD SYNNEX Corporation’s SNX wholly-owned subsidiary, Hyve Solutions Corporation, recently announced that it has qualified Micron Technology's MU 7400 E1.S NVM Express (“NVMe”) Solid State Drives (“SSD”) for its configurable Polaris 9219 platform.The Micron 7400 NVMe SSD is a data center SSD designed to deliver optimal combination of performance, power efficiency, flexibility and leading-edge security for today’s most intensive workloads. The 7400 E1.S SSD is particularly well-suited for the TD SYNNEX subsidiary's configurable, high-volume Polaris 9219 server as it helps scale infrastructure with Peripheral Component Interconnect Express (“PCIe”) Gen4 performance and supports workloads from Edge to Cloud.Micron’s data center SSDs ensure high performance and reliability, superior data protection, and optimal endurance to support data center infrastructure. The company designs client SSDs for delivering optimum portability to client computing applications. It offers high capacities and industrial temperature options in several small form factors for automotive solutions, heavy robotics, remote communication installations and medical equipment devices through its automotive and industrial SSDs.The installation of 7400 NVMe SSD into Hyve’s Polaris 9219 portfolio will ensure flexibility, heat dissipation, optimal power, energy savings via improved thermal cooling capabilities, and rack consolidation through storage per node improvements.It is worth mentioning that in November, Hyve unveiled building blocks for hyperscale infrastructures leveraging the latest Open Rack version 3 specifications as outlined by the Open Compute Project (“OCP”). In May 2020, it had announced the development of an Open Accelerator Infrastructure system through a joint development agreement with OCP.TD SYNNEX Corp. Price and Consensus TD SYNNEX Corp. price-consensus-chart | TD SYNNEX Corp. QuoteTD SYNNEX has also been gaining from the steady IT spending environment driven by the rapid digital transformation of late. In October, it collaborated with Hewlett Packard Enterprise in the Asia Pacific to grow its distribution of HPE GreenLake cloud services in the region, enabling partners to access a robust set of cloud services that help customers tackle their most challenging business outcomes.During the fiscal third quarter of 2021, TD SYNNEX revenues declined 1.9% to $5.21 billion. The prevailing industry-wide supply-chain constraint resulted in this marginal year-over-year decline.The Zacks Consensus Estimate for TD SYNNEX’s first-quarter fiscal 2022 revenues is pegged at $15.52 billion, suggesting year-over-year growth of 109.3%.Zacks Rank & Stocks to ConsiderTD SYNNEX and Micron both currently carry a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader technology sector are Arrow Electronics ARW and Qualcomm QCOM, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.Arrow’s Zacks Consensus Estimate for fourth-quarter fiscal 2021 earnings has been raised to $4.42 per share from $3.85 in the past 60 days. For fiscal 2021, earnings estimates have moved north by 8.1% to $14.6 per share over the past 60 days.Arrow beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 18.6%. Shares of ARW have appreciated 27.7% year-to-date (“YTD”).The Zacks Consensus Estimate for Qualcomm’s first-quarter fiscal 2022 earnings has been raised to $3.01 per share from $3 in the past 30 days. For fiscal 2022, earnings estimates have been revised upward by 1.5% to $10.49 per share in the past 30 days.Qualcomm’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.2%. Shares of QCOM have gained 19.4% YTD. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report TD SYNNEX Corp. (SNX): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksDec 15th, 2021

ITT (ITT) Down 4.1% Since Last Earnings Report: Can It Rebound?

ITT (ITT) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. It has been about a month since the last earnings report for ITT (ITT). Shares have lost about 4.1% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is ITT due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. ITT Beats Q3 Earnings Estimates, Increases '21 ProjectionsITT reported better-than-expected results for third-quarter 2021. Its earnings surpassed estimates by 6.45% and sales beat the same by 2.65%.The company’s adjusted earnings in the reported quarter were 99 cents per share, surpassing the consensus estimate of 93 cents. Also, the bottom line improved 20.7% from the year-ago figure of 82 cents on improved sales and margin generation. Share buybacks and low taxes aided the results (by 3 cents per share).However, inflation in raw material and supply-chain woes had adverse impacts.Revenue DetailsIn the quarter under review, ITT’s net sales were $689.6 million, reflecting year-over-year growth of 16.6%. The results benefitted 15.6% from growth in organic sales. Segmental results flourished in the quarter.Also, the company’s revenues surpassed the Zacks Consensus Estimate of $672 million.Organic sales in the quarter increased 27.6% year over year, with organic orders representing growth of 26.8%.It currently reports under three business segments — Industrial Process, Motion Technologies, and Connect and Control Technologies. The segmental information is briefly discussed below:Revenues from Industrial Process totaled $210.7 million, rising 8.6% year over year. The results gained 8.1% from growth in organic sales. Business related to valves, short cycle parts, and service flourished in the quarter. Orders increased 25.5% year over year.Revenues from Motion Technologies totaled $332.3 million, reflecting year-over-year growth of 22.3%. The results gained from a 20.3% contribution from organic sales growth on the back of a rise in the automotive aftermarket business, the Friction aftermarket and sealing, and other tailwinds. Orders grew 23.6% from the year-ago quarter.Revenues from Connect and Control Technologies totaled $147.1 million, increasing 16.8% year over year and up 17% organically. Results benefitted from strength in the industrial market, partially offset by the softness in the commercial aerospace market. Orders expanded 40.8% year over year.Margin ProfileIn the quarter under review, ITT’s cost of revenues increased 16.7% year over year to $467.6 million. It represented 67.8% of the quarter’s sales compared with 67.8% in the year-ago quarter. Gross profit increased 16.5% year over year to $222 million and as a percentage of sales, it was 32.2%.General and administrative expenses expanded 18.7% year over year to $55.9 million, while sales and marketing expenses increased 12% to $37.4 million. Research and development expenses grew 14.2% to $22.5 million.Adjusted segmental operating income in the quarter increased 21.2% year over year to $115.7 million. Margin expanded 60 basis points (bps) to 16.8%. Results benefitted from sales growth, and gains from productivity and commercial actions. However, supply-chain woes, inflation in raw material costs, woes related to growth investments, and other headwinds played spoilsport.Balance Sheet and Cash FlowExiting the third quarter, ITT had cash and cash equivalents of $585.8 million, up 1.2% from $578.8 million in the previous quarter. Its total non-current liabilities were down 2.8% sequentially to $410 million.In the first three quarters of 2021, ITT used $127.9 million for its operating activities against net cash generation of $318.1 million in the year-ago period. Capital expenditure was $52.6 million, up from $47.6 million in the year-ago quarter. Free cash outflow was $180.5 million against an inflow of $270.5 million in the year-ago period.In the first nine months of 2021, the company paid out dividends of $57 million, up from $29.7 million in the year-ago period. Share repurchases were $111.7 million, up from shares worth $83.9 bought back in the year-ago period.OutlookSolid results for the third quarter motivated ITT to increase its projections for 2021. Supply-chain woes are prevalent headwinds.For 2021, the company anticipates adjusted earnings of $4.01-$4.06 per share, up from $3.90-$4.05 per share mentioned earlier. The revised projection suggests year-over-year growth of 25-27%.Revenues are expected to increase 11-13% year over year and 8-10% organically. Adjusted segmental operating margin is predicted to increase 170-220 bps year over year to 16.9-17.4%.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed an upward trend in estimates review.VGM ScoresAt this time, ITT has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, ITT has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ITT Inc. (ITT): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksDec 3rd, 2021

Why Is Ansys (ANSS) Down 3.6% Since Last Earnings Report?

Ansys (ANSS) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. A month has gone by since the last earnings report for Ansys (ANSS). Shares have lost about 3.6% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Ansys due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. ANSYS Q3 Earnings and Revenues Top EstimatesANSYS reported third-quarter 2021 non-GAAP earnings of $1.59 per share, which beat the Zacks Consensus Estimate by 18.7% and increased 16.9% year over year.Non-GAAP revenues of $445.4 million surpassed the Zacks Consensus Estimate by 7.3%. The top line increased 21% (up 20% at constant currency or cc) from the year-ago quarter’s levels.Continued momentum in core business, strength in the high tech and semiconductor verticals boosted the top line. The company closed several deals in the aerospace and defense sector in North America and EMEA regions. Improving business conditions at small- and medium-sized customers acted as a tailwind.Deferred revenues and backlog were $899.5 million, up 2.2% on a year-over-year basis.Quarter in DetailsLease licenses revenues (27.1% of non-GAAP revenues) increased 52% at cc to $120.5 million. Perpetual licenses revenues (18%) rose 27.2% year over year at cc to $79.9 million.Maintenance revenues (51.2%) increased 6.3% at cc to $228 million. Service revenues (3.8%) increased 25.9% year over year to $16.9 million.Direct and indirect channels contributed 74.4% and 25.6%, respectively, to non-GAAP revenues.Annual contract value or ACV increased 19.7% year over year (up 19.3% at cc) to $365.4 million.On a geographic basis, non-GAAP revenues from Americas, EMEA (comprising Germany, the U.K. and other EMEA) and the Asia-Pacific (Japan and Other Asia-Pacific) contributed 50.2%, 22.9% and 26.9% to non-GAAP revenues, respectively.Non-GAAP revenues from Americas rallied 37.3% to $223.4 million at cc. Revenues from EMEA declined 6.1% to $102 million. Revenues from Asia-Pacific increased 21.1% to $120 million.Strength in the aerospace and defense, high-tech, automotive and semiconductor sectors led to increases in overall revenues.Operating DetailsNon-GAAP gross margin expanded 70 basis points (bps) on a year-over-year basis to 89.9%.Total operating expenses increased 21.2% year over year to $270.8 million, due to higher research and development as well as selling, general and administrative expenses.Non-GAAP operating margin contracted 10 bps on a year-over-year basis to 39.7%.Balance Sheet & Cash FlowAs of Sep 30, 2021, cash and short-term investments amounted to $1.081 billion (the United States contributed 69%) compared with $958.2 million (the United States contributed 66%) as of Jun 30, 2021.As of Sep 30, 2021, the company’s long-term debt stood at $753.5 million.The company generated cash from operations of $157.8 million in the third quarter compared with $118.9 million in the prior quarter.The company repurchased 0.1 million shares worth $36 million in the third quarter. As of Sep 30, 2021, it had 2.7 million shares remaining under the share buyback program.In October 2021, the company concluded the acquisition of Zemax for $411.5 million paid in cash net of cash acquired from Zemax, bringing the actual cash payment to $399.1 million.GuidanceFor fourth-quarter 2021, ANSYS expects non-GAAP earnings in the range of $2.48-$2.81.Non-GAAP revenues are anticipated between $614.9 million and $654.9 million.Management projects non-GAAP operating margin in the range of 44.5-47%.For 2021, ANSYS now expects non-GAAP revenues of $1.885-$1.925 billion compared with the previous guidance of $1.84-$1.89 billion.Management expects non-GAAP operating margin in the range of 40.5-41.5% for 2021 compared with 40-41% guided earlier.Non-GAAP earnings are now envisioned in the range of $7.05-$7.38 per share compared with the previous guidance of $6.85-$7.15.ACV is now anticipated between $1.825 billion and $1.86 billion, while operating cash flow is projected between $505 million and $535 million for 2021.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.VGM ScoresCurrently, Ansys has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Ansys has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ANSYS, Inc. (ANSS): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksDec 3rd, 2021