In its first earnings announcement as a public company, Twitter (TWTR) badly disappointed the markets. Quarterly revenue of $242.7 million was well above analyst expectations of $217.8 million, and non-GAAP profits of 2 cents a share were far better than a loss of 2 cents to 13 cents analysts had predicted. But the growth of users is slowing, potentially putting a cap on how well Twitter can do in the future. Within 30 minutes of the news, shares were down more than 11 percent in after-hours trading. "Twitter finished a great year with our strongest financial quarter to date," said CEO Dick Costolo in a company press release. Twitter had a lot to prove today in its first earnings report. The stock has been trading at about 32 times expected 2014 sales. That's more than double Facebook's (FB) ratio and almost triple that of LinkedIn (LNKD). The expectation that drives that level of value is growth. Although Twitter showed 116 percent earnings growth year-over-year, it … [Read more...] about Twitter’s first earnings report raises doubts about growth
SEOUL, South Korea - European stocks were lower after most Asian markets abandoned modest gains Thursday ahead of U.S. economic data and corporate earnings reports. Stock markets are at lofty heights, making investors nervous a corrective sell-off is looming, particularly as the U.S. Federal Reserve edges toward its first interest rate hike since the Great Recession. The Dow Jones industrial average hit yet another record on Wednesday. The strong performance of Wall Street indexes is at odds with the modest growth prospects of the U.S. economy and the same contradiction also prevails in Europe and parts of Asia. In early European trading, Britain's FTSE 100 was down 0.4 percent to 6,759.68 and France's CAC 40 dipped 0.5 percent to 4,349.28. Germany's DAX fell 0.3 percent to 9,830.25. U.S markets were also headed for a lukewarm day. Dow Jones futures inched down 0.2 percent and S&P 500 futures dropped 0.4 percent. For the rest of the week, earnings reports from Google and IBM are … [Read more...] about Investors await U.S. data, earnings reports
Riding the wave of exploding bandwidth needs, Ciena (NYSE: CIEN) continues to outperform its industry peers. The company -- a provider of optical and packet networking systems -- recently reported earnings from its first fiscal quarter of 2018, which showed continued market share gains and profitable growth amid challenging industry conditions.Revenue grew 4% year over year, though adjusted gross margin and adjusted operating margins contracted by 230 and 220 basis points, respectively. While Ciena's stock surged after the earnings report, it still trades at a very reasonable forward P/E multiple of 14.8.Here are the secrets behind Ciena's current success, and what to watch going forward.Ciena isn't worried about challenging growth conditions. Should you be? Image source: Getty Images.1. It's winning internationallyOne of the main reasons behind the lower gross margin was the high number of new customer wins in international markets. According to management, these types of contracts … [Read more...] about 3 Takeaways from Ciena’s Strong Earnings Report
Veeco Instruments, Inc. (NASDAQ: VECO) is an interesting stock for tech and value investors alike. The company operates in exciting industries, making industrial machines for manufacturers of semiconductors, RF filters, microelectronics, lasers, and LED lighting -- all strong growth markets -- yet Veeco's stock has struggled over the past year. The company's price of $18.30 as of this writing sits well below its 52-week high of $34.38, though it has spiked off the lows recently.The story of Veeco is somewhat complicated. It purchased lithography systems maker Ultratech last May, has been the subject of several patent lawsuits, and faces an evolving competitive landscape. Things seemed to stabilize recently, but is a turnaround really underway?Image source: Getty Images.GrowthDuring its fourth-quarter report on Feb. 12, management was keen to point out six straight quarters of revenue growth, while also projecting continued revenue growth in the first quarter of 2018 to $140 … [Read more...] about 3 Takeaways From Veeco Instruments’ Earnings Report
Roku (NASDAQ: ROKU) got wrecked by the market for its fourth-quarter earnings report that missed analyst expectations and forecast a weaker-than-expected 2018. Shares of the video streaming device specialist tumbled 20% on the news as CEO Anthony Wood blamed a shortage of memory chips as being largely responsible for the company coming up short.While the rising prices and inventory shortages have boosted the prospects of chipmakers like Micron Technology (NASDAQ: MU), whose shares have doubled over the past year, maybe Roku investors should actually blame Amazon.com (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) for the device maker's disappointing performance.Image source: Getty Images.Hyperscale memoryDemand for DRAM memory is soaring because hyperscale data centers are proliferating around the world at a speedy rate. Synergy Research says there were almost 400 such data centers operating at the end of 2017, 44% of which were in the U.S., and it sees the number growing to 500 over the … [Read more...] about Are Amazon and Microsoft to Blame for Roku’s Poor Earnings Report?