Earnings Blitz

Let’s start with the hot shot of the evening.

MLNX

Mellanox Technologies Ltd., the Israeli maker of technology used to transfer data, reported second-quarter earnings that exceeded analyst estimates as revenue surpassed $100 million for the first time. The stock jumped from $66 after hours to $95. Kudos to MLNX owners!

The Yokneam Elit, Israel-based company reported adjusted earnings per share of 99 cents, more than the 73.5-cent mean estimate of 11 analysts. The adapter maker, which advanced 6.7 percent today, posted quarterly sales of $133.5 million, a 111 percent increase over the same period last year.

It would be interesting to see the domino of this stock on another Israeli networking company ALLT.

SWKS

SWKS beat analysts’ estimates, though it forecast this quarter’s results slightly below consensus.

Revenue in the three months ended in June rose 9%, year over year, to $389 million, yielding EPS of 45 cents. Analysts on average had been modeling $382.2 million and 44 cents a share. For the current quarter, the company sees revenue in a range of $415 million to $420 million, and EPS in a range of 50 cents to 51 cents. That is slightly below the consensus of $418.6 million and 51 cents a share.

Skyworks stock is up $2.46, or 9%, at $29.05 in late trading. This is of interest once it crosses $29.5 and will be of more interest once the $30 level is breached.

SCSS

Select Comfort, known for its Sleep Number line of adjustable-firmness mattresses, has been increasing its store count and ramping up promotions to gain share from rivals.

The company, which has beaten earnings estimates for more than three years, said same-store sales, or sales at stores open at least a year, rose 25 percent. Now compare this with TPX

Select Comfort’s second-quarter income rose to $17 million, or 30 cents per share, from $11.3 million, or 20 cents per share, a year earlier. Sales jumped 27 percent to $205.2 million. Analysts on average had expected earnings of 27 cents a share on revenue of $198.3 million.

Even though I had suggested to short it at $24, which the stock never reached, I think that $25 is a good entry point. There is lot of support for the stock at $25 and if market continues to move north, this stock will reach atleast $30.

QCOM

Qualcomm’s forecasts for sales and profit this quarter missed analysts’ predictions. Fiscal fourth-quarter profit will be 62 cents to 68 cents a share on sales of $4.45 billion to $4.85 billion, San Diego-based Qualcomm said in a statement yesterday. Analysts were projecting profit of 76 cents a share and sales of $4.89 billion.

But the share is up almost 6% and at one time it was down by almost 5%. Don’t ask, don’t tell!

FFIV

Revenue in the three months ended in June rose 21.3%, year over year, and 3.8%, quarter-to-quarter, to $352.6 million, yielding EPS of $1.14. Analysts on average had been expecting $352.9 million and $1.14 per share.

For the current quarter, the company sees revenue in a range of $360 million to $370 million, and EPS of $1.16 to $1.19, citing that “cautious spending environment in the current global economy.” That is below consensus of $384 million and $1.24 per share.

It’s not doing too bad, but I expect it to at least revisit $89.

IBM

The Dow industrials component raised its full-year operating-earnings outlook to “at least $15.10” a share. Analysts currently expect per-share earnings of $15.05. Adjusted operating profit at IBM for the second quarter was $3.51 a share, and revenue was $25.8 billion, down from $26.7 billion a year ago. Analysts were expecting $3.43 a share on revenue of $26.3 billion for the most recent period. Result – it’s up 3%.

EBAY

The company’s second-quarter adjusted earnings of 55 cents a share — a penny a share better than the consensus estimate at FactSet. Revenue rose to $3.4 billion from $2.8 billion a year ago, ahead of Wall Street’s forecast of $3.36 billion in sales. On the basis of my experience, EBAY can easily run up to $49, if the market is favorable.

AGU

AGU said that it expects 2nd quarter earnings of $5.5 compared to estimate of $4.84. This is an awesome beat of almost 20%. This is interesting because stock is still cheap after a 20% run up.

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