eBay reported in-line 3Q results, with outperformance in Marketplaces revenue and incremental operating leverage offsetting a modest shortfall in PayPal revenue. However, guidance once again came in below expectations, driven by domestic macro weakness and caution regarding the holiday period. While we suspect management’s near-term forecast may prove conservative, we see no change to the…
ARM Holdings reported 3Q13 results on Thursday that were above consensus estimates. On a positive note, ARMH’s license revenue continues to significantly exceed expectations, and ARM PD (Processor Division) royalty revenue continues to outperform ARM’s served available market (SAM) according to management’s guidance. Admittedly, shares are richly valued, and the market clearly wanted a perfect…
Winnebago Industries reported another excellent quarter to close out fiscal 2013. We plan to modestly increase our fair value estimate to reflect more expense leverage and a higher mid-cycle margin than previously modeled. Revenue for the quarter increased 31.8% year over year thanks to a 43.1% rise in motor home deliveries to 1,890 units. For…
Western Digital posted third quarter results that surpassed our expectations and management’s quarterly guidance, making it clear that the market hasn’t forgotten about hard disk drives (HDDs). While Western Digital’s near-term prospects are better than we had anticipated, we are maintaining our stable moat rating as these opportunities are balanced by adverse secular trends that…
Informatica reported solid first-quarter results with revenue growth slightly exceeding expectations, as increased hiring and investment weighed on margins. The firm grew revenue 9.3% from the year-ago period to $214.3 million, 5% ahead of our model. Informatica changed the way it reports revenues by giving more details, which we find helpful. Service revenue was strong,…
Stericycle reported stronger profitability in the third quarter despite experiencing slower top-line growth both year over year and sequentially. Seventeen acquisitions contributed toward an increase in revenue by 11.3% to $535 million in the quarter; however, consolidated internal growth of 6.5% was on the low end of Stericycle’s typical target range. In particular, domestic small…
