ADTRAN, Inc.(NASDAQ:ADTN) slumped to a 52-week low after forecasting below consensus guidance for Q4, revising its revenue estimate downward to $125M from $155M-$165M earlier and seeing EPS of ~$0.01; analysts had expected EPS of ~$0.14 and revenue of $161.2M.
ADTN also projects Q1 to come in at roughly the same as Q4, misses analyst consensus of $167.5M.
CEO Tom Stanton says Q4 results have been hurt by a merger-related review, which ADTN expects to be completed in 60-90 days, and slowdown in the spending at a domestic Tier 1 customer.
MKM Partners analyst Michael Genovese believes the customer is CenturyLink (CTL -2%), which accounted for 24% of ADTN’s total sales in 2016.
The analyst thinks the weakness should prove temporary, adding that ADTN’s performance likely will accelerate into 2019 as the company stands to benefit from 5G spending; MKM trims its ADTN target price to $25 from $27 but keeps its Buy rating.
Eanings Review: Rambus Inc. (NASDAQ:RMBS), Revlon Inc (NYSE:REV)
Revlon Inc(NYSE:REV) +2.5% after-hours after announcing that President and CEO Fabian Garcia is stepping down “to pursue other opportunities,” and Executive Vice Chair Paul Meister will oversee operations on an interim basis.
REV also says it expects Q4 revenues of $785M, below $801M from the year-earlier quarter but ahead of analyst consensus estimate of $743M, and a $60M-$80M net loss for the quarter due to a charge related to the recent tax law changes.
REV expects Q4 adjusted EBITDA of $110M-$115M vs. $115M analyst consensus.
CFO Chris Peterson also denies rumors that the company is considering a material asset transfer that would shield assets from lenders.
Rambus Inc.(NASDAQ:RMBS) shares are down 5.5% aftermarket following Q4 results that beat revenue estimates and met on EPS. In-line Q1 guidance (under ASC 605 accounting change) has revenue from $94M to $100M (consensus: $100.38M) and EPS from $0.17 to $0.23 (consensus: $0.18).
Revenue breakdown: Royalties, $77.9M (+10% Y/Y); Product, $8.5M (-27%); Contract and other revenue, $15.5M (+2%); Licensing billings, $76.6M (+18%).Key metrics: Non-GAAP operating margin, 31%; total operating expenses, $67.5M; cash and equivalents, $172.2M; cash flow from operations, $33.3M.
Big IPO Coming: Celator Pharmaceuticals Inc(NASDAQ:CPXX), Moleculin Biotech’s (MBRX)
Today at 10am Eastern, Moleculin Biotech ticker symbol MBRX will debut on the Nasdaq stock exchange and is being considered as one of the most highly anticipated IPO’s of 2016 by the street. The excitement and anticipation is arising from many experts saying that Moleculin Biotech’s (MBRX) drug annamycin is far superior to Celator Pharmaceuticals Inc(NASDAQ:CPXX) drug daunorubicin.
CPXX which has been bought out by Jazz Pharmaceuticals plc – Ordinary Shares(NASDAQ:JAZZ) for $1.5 Billion Dollars last week, share price ran from $1.6 to $31 in 2 months. Moleculin Biotech’s share structure is a 1.5m public float Priced at $6.
Early Movers: Nokia Corp (ADR) (NYSE:NOK), Exelixis, Inc. (NASDAQ:EXEL)
The stock market began its day on a higher note with the Nasdaq Composite (+0.4%) leading the S&P 500 (+0.3%) and the Dow Jones Industrial Average (+0.3%).
Six sectors trade in the green with commodity-sensitive energy (+1.5%) and materials (+0.9%) leading the upside. The remaining gainers sport upticks between 0.3% (health care) and 0.7% (industrials). Conversely, utilities (-0.6%), telecom services (-0.4%), and consumer staples (-0.2%) round out the leaderboard.
In the industrial space (+0.7%), airline names demonstrate relative strength as the group trades higher with Delta Air Lines (DAL 42.61, +1.01). Recently, the company cut its fourth quarter domestic capacity growth rate from 4.0% to 2.5%. Additionally, the company raised its stock’s dividend 50.0% to $0.81 per share.
On the commodities front, WTI crude trades higher by 3.3% at $47.71/bbl. Meanwhile, gold trades higher by 1.2% ($1,287.90/ozt).
Canaccord Genuity upgrades Nokia Corp (ADR)(NYSE:NOK) to Buy from Hold and raises their tgt to $7 from $5.50 as they believe co’s mgmt will continue its strong execution on cost cutting initiatives following the Alcatel Lucent (ALU) acquisition. Further, they believe the technology licensing business can also create a source of high margin growth. LT, firm believes the mgmt team has a cogent plan to integrate ALU to create a strong technology leadership culture while also achieving its recently announced above €900M cost synergy target by 2018.
Exelixis, Inc.(NASDAQ:EXEL) indicated for a lower open (-2.3%) following the Friday approval of peer Eisai’s (ESALY) lenvatinib; Hearing Leerink out on the name, suggesting approval does not pose ‘significant competitive threat’ to other agents (5.61)