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Skyworks Exceeds Q1 FY20 Expectations

  • Delivers Revenue of $896 Million, Up 8% Sequentially
  • Posts GAAP Diluted EPS of $1.50; Non-GAAP Diluted EPS of $1.68
  • Generates $398 Million in Cash Flow from Operations
  • Guides to Better-than-Seasonal Revenue Trends in Q2 FY20

Skyworks Solutions, Inc. (Nasdaq: SWKS), an innovator of high performance analog semiconductors connecting people, places and things, today reported first fiscal quarter results for the period ended December 27, 2019.

Revenue for the first fiscal quarter of 2020 was $896.1 million, up 8 percent sequentially, exceeding the high end of the revenue guidance range, as well as consensus estimates. On a GAAP basis, operating income for the first fiscal quarter of 2020 was $277.3 million with diluted earnings per share of $1.50. On a non-GAAP basis, operating income was $315.4 million with non-GAAP diluted earnings per share of $1.68, or $0.03 better than guidance and consensus estimates.

"Skyworks exceeded December quarter expectations driven by global demand for our high performance connectivity engines," said Liam K. Griffin, president and chief executive officer of Skyworks. "Leveraging decades of experience, manufacturing scale and vertical integration capabilities, our highly advanced Sky5® platform is fueling market adoption of 5G across a broadening customer set. With an expansive suite of applications − from smartphones to wireless infrastructure, industrial robotics, autonomous vehicles, smart homes and virtual assistants − our solutions provide the critical connection, ensuring peak performance for 5G and IoT usage cases. At the same time, through crisp operational execution and a strong business model, we are translating these results into long-term shareholder value."

First Fiscal Quarter Business Highlights

  • Ramped Sky5® portfolio across Oppo, Vivo and Xiaomi 5G mobile platforms
  • Powered rapidly emerging 5G massive IoT applications with cellular-based solutions certified by KDDI, NTT Docomo, SoftBank and Verizon
  • Advanced automotive content with SkyOne®, Wi-Fi 6 and V2X portfolio
  • Extended market leadership position in high-speed 802.11ax access points with advanced 2.4 and 5 GHz FEMs
  • Introduced Bluetooth® Low Energy modules for Proctor & Gamble’s infant monitoring system
  • Leveraged Zigbee®, Thread and Bluetooth® Low Energy architectures for extended-range smart gas meter applications
  • Commenced volume production of Wi-Fi 6 connectivity engines for ZTE and Belkin/Linksys
  • Supported GoPro’s next-generation wearable, waterproof action camera with GPS technology
  • Shipped LoRa devices powering premium home security platforms
  • Expanded infrastructure footprint with 5G massive-MIMO and small cell base station design wins

Second Fiscal Quarter 2020 Outlook

We provide earnings guidance on a non-GAAP basis because certain information necessary to reconcile such guidance to GAAP is difficult to estimate and dependent on future events outside of our control. Please refer to the attached Discussion Regarding the Use of Non-GAAP Financial Measures in this press release for a further discussion of our use of non-GAAP measures, including quantification of known expected adjustment items.

"We expect new content opportunities and the ramp of our Sky5® solutions to drive better-than-seasonal results in the March quarter," said Kris Sennesael, senior vice president and chief financial officer of Skyworks. "Specifically, in the second fiscal quarter of 2020, we anticipate revenue to be between $800 and $820 million with non-GAAP diluted earnings per share of $1.46 at the midpoint of our revenue range."

Dividend Payment

Skyworks’ Board of Directors has declared a cash dividend of $0.44 per share of the Company’s common stock, payable on March 3, 2020, to stockholders of record at the close of business on February 11, 2020.

Skyworks’ First Quarter 2020 Conference Call

Skyworks will host a conference call with analysts to discuss its first fiscal quarter 2020 results and business outlook today at 4:30 p.m. Eastern time. To listen to the conference call via the Internet, please visit the investor relations section of Skyworks’ website. To listen to the conference call via telephone, please call (844) 583-4549 (domestic) or (825) 312-2257 (international), confirmation code: 7077695.

Playback of the conference call will begin at 9:00 p.m. Eastern time on January 23 and end at 9:00 p.m. Eastern time on January 30. The replay will be available on Skyworks’ website or by calling (800) 585-8367 (domestic) or (416) 621-4642 (international), access code: 7077695.

About Skyworks

Skyworks Solutions, Inc. is empowering the wireless networking revolution. Our highly innovative analog semiconductors are connecting people, places and things spanning a number of new and previously unimagined applications within the aerospace, automotive, broadband, cellular infrastructure, connected home, industrial, medical, military, smartphone, tablet and wearable markets.

Skyworks is a global company with engineering, marketing, operations, sales and support facilities located throughout Asia, Europe and North America and is a member of the S&P 500® and Nasdaq-100® market indices (Nasdaq: SWKS). For more information, please visit Skyworks’ website at: www.skyworksinc.com.

Safe Harbor Statement

This news release includes "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation information relating to future results and expectations of Skyworks (e.g., certain projections and business trends, as well as plans for dividend payments and share repurchases). Forward-looking statements can often be identified by words such as "anticipates," "expects," "forecasts," "intends," "believes," "plans," "may," "will," or "continue," and similar expressions and variations or negatives of these words. All such statements are subject to certain risks, uncertainties and other important factors that could cause actual results to differ materially and adversely from those projected, and may affect our future operating results, financial position and cash flows.

These risks, uncertainties and other important factors include, but are not limited to: the susceptibility of the semiconductor industry and the markets addressed by our, and our customers', products to economic downturns; our reliance on several key customers for a large percentage of our sales; the risks of doing business internationally, including increased import/export restrictions and controls (e.g., the effect of the U.S. Bureau of Industry and Security of the U.S. Department of Commerce placing Huawei Technologies Co., Ltd. and certain of its affiliates on the Bureau’s Entity List), imposition of trade protection measures (e.g., tariffs or taxes), security and health risks, possible disruptions in transportation networks, fluctuations in foreign currency exchange rates, and other economic, social, military and geo-political conditions in the countries in which we, our customers or our suppliers operate; the volatility of our stock price; declining selling prices, decreased gross margins, and loss of market share as a result of increased competition; our ability to obtain design wins from customers; delays in the standardization or commercial deployment of 5G technologies; changes in laws, regulations and/or policies that could adversely affect our operations and financial results, the economy and our customers' demand for our products, or the financial markets and our ability to raise capital; fluctuations in our manufacturing yields due to our complex and specialized manufacturing processes; our ability to develop, manufacture and market innovative products, avoid product obsolescence, reduce costs in a timely manner, transition our products to smaller geometry process technologies, and achieve higher levels of design integration; the quality of our products and any defect remediation costs; our products’ ability to perform under stringent operating conditions; the availability and pricing of third-party semiconductor foundry, assembly and test capacity, raw materials and supplier components; our ability to retain, recruit and hire key executives, technical personnel and other employees in the positions and numbers, with the experience and capabilities, and at the compensation levels needed to implement our business and product plans; the timing, rescheduling or cancellation of significant customer orders and our ability, as well as the ability of our customers, to manage inventory; our ability to prevent theft of our intellectual property, disclosure of confidential information, or breaches of our information technology systems; uncertainties of litigation, including potential disputes over intellectual property infringement and rights, as well as payments related to the licensing and/or sale of such rights; our ability to continue to grow and maintain an intellectual property portfolio and obtain needed licenses from third parties; our ability to make certain investments and acquisitions, integrate companies we acquire, and/or enter into strategic alliances; and other risks and uncertainties, including, but not limited to, those detailed from time to time in our filings with the Securities and Exchange Commission.

The forward-looking statements contained in this news release are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Note to Editors: Skyworks and the Skyworks symbol are trademarks or registered trademarks of Skyworks Solutions, Inc. or its subsidiaries in the United States and other countries. Third-party brands and names are for identification purposes only and are the property of their respective owners.

SKYWORKS SOLUTIONS, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

(in millions, except per share amounts)

 

December 27,
2019

 

December 28,
2018

Net revenue

 

$

896.1

 

 

$

972.0

 

Cost of goods sold

 

451.8

 

 

486.9

 

Gross profit

 

444.3

 

 

485.1

 

Operating expenses:

 

 

 

 

 

Research and development

 

107.7

 

 

109.2

 

 

Selling, general and administrative

 

55.4

 

 

47.8

 

 

Amortization of intangibles

 

3.1

 

 

7.4

 

 

Restructuring and other charges (benefit)

 

0.8

 

 

(0.2

)

 

 

Total operating expenses

 

167.0

 

 

164.2

 

Operating income

 

277.3

 

 

320.9

 

 

Other income, net

 

1.4

 

 

2.9

 

Income before income taxes

 

278.7

 

 

323.8

 

Provision for income taxes

 

21.6

 

 

38.9

 

Net income

 

$

257.1

 

 

$

284.9

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

Basic

 

$

1.51

 

 

$

1.61

 

 

 

Diluted

 

$

1.50

 

 

$

1.60

 

 

Weighted average shares:

 

 

 

 

 

 

Basic

 

170.2

 

 

176.6

 

 

 

Diluted

 

171.6

 

 

177.7

 

SKYWORKS SOLUTIONS, INC.

UNAUDITED RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

(in millions)

 

December 27,
2019

 

December 28,
2018

GAAP gross profit

 

$

444.3

 

 

$

485.1

 

 

 

Share-based compensation expense [a]

 

4.2

 

 

3.6

 

 

 

Acquisition-related expenses

 

 

 

1.9

 

 

 

Amortization of acquisition-related intangibles

 

5.9

 

 

4.7

 

 

 

Settlements, gains, losses and impairments [b]

 

(5.3

)

 

 

Non-GAAP gross profit

 

$

449.1

 

 

$

495.3

 

GAAP gross margin %

 

49.6

%

 

49.9

%

Non-GAAP gross margin %

 

50.1

%

 

51.0

%

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

(in millions)

 

December 27,
2019

 

December 28,
2018

GAAP operating income

 

$

277.3

 

 

$

320.9

 

 

 

Share-based compensation expense [a]

 

33.6

 

 

20.8

 

 

 

Acquisition-related expenses

 

0.2

 

 

2.1

 

 

 

Amortization of acquisition-related intangibles

 

9.1

 

 

12.0

 

 

 

Settlements, gains, losses and impairments [b]

 

(5.6

)

 

0.7

 

 

 

Restructuring and other charges

 

0.8

 

 

 

 

 

Deferred executive compensation (benefit)

 

 

 

(0.1

)

Non-GAAP operating income

 

$

315.4

 

 

$

356.4

 

GAAP operating margin %

 

30.9

%

 

33.0

%

Non-GAAP operating margin %

 

35.2

%

 

36.7

%

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

(in millions)

 

December 27,
2019

 

December 28,
2018

GAAP net income

 

$

257.1

 

 

$

284.9

 

 

 

Share-based compensation expense [a]

 

33.6

 

 

20.8

 

 

 

Acquisition-related expenses

 

0.2

 

 

2.1

 

 

 

Amortization of acquisition-related intangibles

 

9.1

 

 

12.0

 

 

 

Settlements, gains, losses and impairments [b]

 

(5.6

)

 

0.7

 

 

 

Restructuring and other charges

 

0.8

 

 

 

 

 

Deferred executive compensation (benefit)

 

 

 

(0.1

)

 

 

Tax adjustments

 

(6.4

)

 

4.2

 

Non-GAAP net income

 

$

288.8

 

 

$

324.6

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

December 27,
2019

 

December 28,
2018

GAAP net income per share, diluted

 

$

1.50

 

 

$

1.60

 

 

 

Share-based compensation expense [a]

 

0.19

 

 

0.12

 

 

 

Acquisition-related expenses

 

 

 

0.01

 

 

 

Amortization of acquisition-related intangibles

 

0.05

 

 

0.07

 

 

 

Settlements, gains, losses and impairments [b]

 

(0.03

)

 

0.01

 

 

 

Restructuring and other charges

 

0.01

 

 

 

 

 

Tax adjustments

 

(0.04

)

 

0.02

 

Non-GAAP net income per share, diluted

 

$

1.68

 

 

$

1.83

 

 

SKYWORKS SOLUTIONS, INC.

DISCUSSION REGARDING THE USE OF NON-GAAP FINANCIAL MEASURES

Our earnings release contains some or all of the following financial measures that have not been calculated in accordance with United States Generally Accepted Accounting Principles ("GAAP"): (i) non-GAAP gross profit and gross margin, (ii) non-GAAP operating income and operating margin, (iii) non-GAAP net income, and (iv) non-GAAP diluted earnings per share. As set forth in the "Unaudited Reconciliations of Non-GAAP Financial Measures" table found above, we derive such non-GAAP financial measures by excluding certain expenses and other items from the respective GAAP financial measure that is most directly comparable to each non-GAAP financial measure. Management uses these non-GAAP financial measures to evaluate our operating performance and compare it against past periods, make operating decisions, forecast for future periods, compare our operating performance against peer companies and determine payments under certain compensation programs. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by eliminating certain non-recurring expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods and competitors more difficult, obscure trends in ongoing operations or reduce management’s ability to make forecasts.

We provide investors with non-GAAP gross profit and gross margin, non-GAAP operating income and operating margin, non-GAAP net income and non-GAAP diluted earnings per share because we believe it is important for investors to be able to closely monitor and understand changes in our ability to generate income from ongoing business operations. We believe these non-GAAP financial measures give investors an additional method to evaluate historical operating performance and identify trends, an additional means of evaluating period-over-period operating performance and a method to facilitate certain comparisons of our operating results to those of our peer companies. We also believe that providing non-GAAP operating income and operating margin allows investors to assess the extent to which our ongoing operations impact our overall financial performance. We further believe that providing non-GAAP net income and non-GAAP diluted earnings per share allows investors to assess the overall financial performance of our ongoing operations by eliminating the impact of share-based compensation expense, acquisition-related expenses, amortization of acquisition-related intangibles, settlements, gains, losses and impairments, restructuring-related charges, certain deferred executive compensation and certain tax items which may not occur in each period presented and which may represent non-cash items unrelated to our ongoing operations. We believe that disclosing these non-GAAP financial measures contributes to enhanced financial reporting transparency and provides investors with added clarity about complex financial performance measures.

We calculate non-GAAP gross profit by excluding from GAAP gross profit, share-based compensation expense, acquisition-related expenses, amortization of acquisition-related intangibles, settlements, gains, losses and impairments, and restructuring-related charges. We calculate non-GAAP operating income by excluding from GAAP operating income, share-based compensation expense, acquisition-related expenses, amortization of acquisition-related intangibles, settlements, gains, losses and impairments, restructuring-related charges, and certain deferred executive compensation. We calculate non-GAAP net income and diluted earnings per share by excluding from GAAP net income and diluted earnings per share, share-based compensation expense, acquisition-related expenses, amortization of acquisition-related intangibles, settlements, gains, losses and impairments, restructuring-related charges, certain deferred executive compensation, and certain tax items. We exclude the items identified above from the respective non-GAAP financial measure referenced above for the reasons set forth with respect to each such excluded item below:

Share-Based Compensation - because (1) the total amount of expense is partially outside of our control because it is based on factors such as stock price volatility and interest rates, which may be unrelated to our performance during the period in which the expense is incurred, (2) it is an expense based upon a valuation methodology premised on assumptions that vary over time, and (3) the amount of the expense can vary significantly between companies due to factors that can be outside of the control of such companies.

Acquisition-Related Expenses - including such items as, when applicable, amortization of acquired intangible assets, fair value adjustments to contingent consideration, fair value charges incurred upon the sale of acquired inventory, and acquisition-related expenses because they are not considered by management in making operating decisions and we believe that such expenses do not have a direct correlation to our future business operations and thereby including such charges does not necessarily reflect the performance of our ongoing operations for the period in which such charges or reversals are incurred.

Restructuring-Related Charges - because these charges have no direct correlation to our future business operations and including such charges or reversals does not necessarily reflect the performance of our ongoing operations for the period in which such charges or reversals are incurred.

Settlements, Gains, Losses and Impairments - because such settlements, gains, losses and impairments (1) are not considered by management in making operating decisions, (2) are infrequent in nature, (3) are generally not directly controlled by management, (4) do not necessarily reflect the performance of our ongoing operations for the period in which such charges are recognized and/or (5) can vary significantly in amount between companies and make comparisons less reliable.

Deferred Executive Compensation - including charges related to any contingent obligation pursuant to an executive severance agreement, because that expense has no direct correlation with our recurring business operations and including such expenses or reversals does not accurately reflect the compensation expense for the period in which incurred.

Certain Income Tax Items - including certain deferred tax charges and benefits that do not result in a current tax payment or tax refund and other adjustments, including but not limited to, items unrelated to the current fiscal year or that are not indicative of our ongoing business operations.

The non-GAAP financial measures presented in the table above should not be considered in isolation and are not an alternative for the respective GAAP financial measure that is most directly comparable to each such non-GAAP financial measure. Investors are cautioned against placing undue reliance on these non-GAAP financial measures and are urged to review and consider carefully the adjustments made by management to the most directly comparable GAAP financial measures to arrive at these non-GAAP financial measures. Non-GAAP financial measures may have limited value as analytical tools because they may exclude certain expenses that some investors consider important in evaluating our operating performance or ongoing business performance. Further, non-GAAP financial measures are likely to have limited value for purposes of drawing comparisons between companies as a result of different companies potentially calculating similarly titled non-GAAP financial measures in different ways because non-GAAP measures are not based on any comprehensive set of accounting rules or principles.

Our earnings release contains forward-looking estimates of non-GAAP diluted earnings per share for the second quarter of our 2020 fiscal year ("Q2 2020"). We provide this non-GAAP measure to investors on a prospective basis for the same reasons (set forth above) that we provide it to investors on a historical basis. We are unable to provide a reconciliation of our forward-looking estimate of Q2 2020 GAAP diluted earnings per share to a forward-looking estimate of Q2 2020 non-GAAP diluted earnings per share because certain information needed to make a reasonable forward-looking estimate of GAAP diluted earnings per share for Q2 2020 (other than estimated share-based compensation expense of $0.15 to $0.20 per diluted share, estimated amortization of intangibles of $0.05 to $0.07 per diluted share and certain tax items of -$0.05 to $0.05 per diluted share) is difficult to predict and estimate and is often dependent on future events that may be uncertain or outside of our control. Such events may include unanticipated changes in our GAAP effective tax rate, unanticipated one-time charges related to asset impairments (fixed assets, inventory, intangibles or goodwill), unanticipated acquisition-related expenses, unanticipated settlements, gains, losses and impairments and other unanticipated non-recurring items not reflective of ongoing operations. The probable significance of these unknown items, in the aggregate, is estimated to be in the range of $0.00 to $0.08 in quarterly earnings per diluted share on a GAAP basis. Our forward-looking estimates of both GAAP and non-GAAP measures of our financial performance may differ materially from our actual results and should not be relied upon as statements of fact.

[a]

These charges represent expense recognized in accordance with ASC 718 - Compensation, Stock Compensation. For the three months ended December 27, 2019, approximately $4.2 million, $14.8 million and $14.6 million were included in cost of goods sold, research and development expense and selling, general and administrative expense, respectively.

 

 

For the three months ended December 28, 2018, approximately $3.6 million, $12.5 million and $4.7 million were included in cost of goods sold, research and development expense and selling, general and administrative expense, respectively.

 

[b]

During the three months ended December 27, 2019, the Company recognized $5.6 million in non-recurring benefits primarily consisting of a reversal of inventory-related charges that were booked in prior periods as a result of the U.S. Bureau of Industry and Security of the U.S. Department of Commerce placing Huawei Technologies Co., Ltd. and certain of its affiliates on the Bureau’s Entity List.

SKYWORKS SOLUTIONS, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

(in millions)

 

December 27,
2019

 

September 27,
2019

Assets

 

 

 

 

Cash, cash equivalents and marketable securities

 

$

1,228.6

 

 

$

1,082.2

 

Accounts receivable, net

 

426.8

 

 

465.3

 

Inventory

 

604.4

 

 

609.7

 

Property, plant and equipment, net

 

1,190.8

 

 

1,205.6

 

Goodwill and intangible assets, net

 

1,286.3

 

 

1,297.7

 

Other assets

 

354.9

 

 

179.1

 

Total assets

 

$

5,091.8

 

 

$

4,839.6

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

Accounts payable

 

$

138.5

 

 

$

190.5

 

Accrued and other liabilities

 

686.0

 

 

526.8

 

Stockholders’ equity

 

4,267.3

 

 

4,122.3

 

Total liabilities and equity

 

$

5,091.8

 

 

$

4,839.6

 

SKYWORKS SOLUTIONS, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

Three Months Ended

(in millions)

December 27,
2019

 

December 28,
2018

Cash flow from operating activities

 

 

 

 

 

Net income

$

257.1

 

 

$

284.9

 

 

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Share-based compensation

33.6

 

 

20.8

 

 

 

Depreciation

79.8

 

 

77.5

 

 

 

Amortization of intangible assets, including inventory step-up

11.4

 

 

15.5

 

 

 

Deferred income taxes

0.9

 

 

1.8

 

 

 

Other, net

 

 

1.0

 

 

Changes in operating assets:

 

 

 

 

 

Receivables, net

38.5

 

 

131.4

 

 

 

Inventory

7.9

 

 

(5.0

)

 

 

Accounts payable

(6.7

)

 

(22.2

)

 

 

Other current and long-term assets and liabilities

(24.1

)

 

43.3

 

 

 

Net cash provided by operations

398.4

 

 

549.0

 

Cash flow from investing activities

 

 

 

 

 

Capital expenditures

(111.2

)

 

(129.5

)

 

 

Purchases of marketable securities

(131.5

)

 

(2.2

)

 

 

Sales and maturities of marketable securities

62.2

 

 

303.2

 

 

 

Net cash provided by (used in) investing activities

(180.5

)

 

171.5

 

Cash flow from financing activities

 

 

 

 

 

Repurchase of common stock — payroll tax withholdings on equity awards

(26.6

)

 

(19.4

)

 

 

Repurchase of common stock — stock repurchase program

(74.2

)

 

(284.0

)

 

 

Dividends paid

(75.1

)

 

(67.1

)

 

 

Net proceeds from exercise of stock options

34.9

 

 

2.4

 

 

 

Net cash used in financing activities

(141.0

)

 

(368.1

)

 

 

Net increase in cash and cash equivalents

76.9

 

 

352.4

 

 

 

Cash and cash equivalents at beginning of period

851.3

 

 

733.3

 

 

 

Cash and cash equivalents at end of period

$

928.2

 

 

$

1,085.7

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20200123005782/en/

Contacts

Media Relations:
Pilar Barrigas
(949) 231-3061

Investor Relations:
Mitch Haws
(949) 231-3223

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  • Morgan Stanley is paying $2,500 per customer for E-Trade. You can earn a $3,500 sign-up bonus for signing with a new broker — with one major catch
    Business
    MarketWatch

    Morgan Stanley is paying $2,500 per customer for E-Trade. You can earn a $3,500 sign-up bonus for signing with a new broker — with one major catch

    If the latest Wall Street mega-deal doesn't make you want to switch online brokerage accounts for a lucrative sign-up bonus, maybe it should. Wall Street giant Morgan Stanley announced an agreement Thursday to pay $13 billion to acquire the online brokerage E-Trade which has 5.2 million customer accounts. “The combination will significantly increase the scale and breadth of Morgan Stanley's Wealth Management franchise, and positions Morgan Stanley to be an industry leader in Wealth Management across all channels and wealth segments,” Morgan Stanley said in a statement.

  • Business
    Benzinga

    Barron's Picks And Pans: AT&T, Kroger, Virgin Galactic And More

    Cover story "Wall Street Takes Over Main Street" by Daren Fonda and Andrew Bary shares why the Morgan Stanley (NYSE: MS) deal for E*TRADE Financial Corp (NASDAQ: ETFC) heats up big banks' race to land more retail investors. Jack Hough's "It's Time to Build a Stake In Caterpillar" suggests that earnings could be bottoming out at construction, mining and energy and transportation machine maker Caterpillar Inc. NYSE: CAT).

  • Business
    GuruFocus.com

    Top Insider Buys Highlight for the Week of Feb. 21

    The largest insider buys this week were in Tesla Inc. (NASDAQ:TSLA), NextEra Energy Inc. (NYSE:NEE), Coty Inc. (NYSE:COTY) and Bunge Ltd. (NYSE:BG). The company is a component of both the Nasdaq 100 and Russell 1000. As of 2019, the company sells the Model S, Model X and Model 3 cars as well as the Powerwall, Powerpack and Megapack batteries.

  • Virus Outbreak Exposes $46 Billion Rift in China’s Tech Industry
    Business
    Bloomberg

    Virus Outbreak Exposes $46 Billion Rift in China’s Tech Industry

    Chinese businesses like Alibaba and Meituan with outsized footprints in the material world are rushing to contain the fallout while virtual denizens ByteDance Inc. and Tencent Holdings Ltd. ride a surge in social media and entertainment. Alibaba Group Holding Ltd. and Meituan Dianping have shed $28 billion of market value since Covid-19 erupted in central China in January because they depend on millions of people and trucks to ferry packages and meals through an increasingly tangled nationwide transport network. WeChat operator Tencent, which flogs virtual goods like costumes and armor in mobile games or sprinkles advertising online, has gained about $18 billion.

  • Buffett defends stock investments
    Business
    Reuters Videos

    Buffett defends stock investments

    Warren Buffett's company provided disappointing returns to shareholders last year, but on Saturday, the billionaire investor vigorously defended Berkshire Hathaway's move to invest heavily in stocks of companies like Apple. In his closely scrutinized annual letter to shareholders, the man known as the "Oracle of Omaha" for his investing prowess called stocks a far better bet than low-yielding bonds in light of low rates for interest and corporate taxes. He said he would prefer buying whole companies but argued that stocks often are the better bet.

  • Bearish Bets: 2 Stocks You Should Consider Shorting This Week
    Business
    TheStreet.com

    Bearish Bets: 2 Stocks You Should Consider Shorting This Week

    Using recent actions and grades from TheStreet's Quant Ratings and layering on technical analysis of the charts of those stocks, Trifecta Stocks identifies five names each week that look bearish. While we will not be weighing in with fundamental analysis we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names. Dillard's Inc. recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.

  • 3 Monster Growth Stocks Primed for Further Gains
    Business
    TipRanks

    3 Monster Growth Stocks Primed for Further Gains

    As Wall Street observers gauge the strength of a particular investment opportunity, often, they will filter out the noise and instead, concentrate their attention on its long-term growth prospects. Setting out on our own search, we used TipRanks' Stock Screener tool to pinpoint 3 stocks that have earned “Strong Buy” consensus ratings from the analysts and boast substantial upside potential from current levels. Selecta Biosciences believes that its ImmTOR immune tolerance platform can help patients fight rare diseases.

  • 'Flat earther' dies in rocket crash
    U.S.
    Associated Press Videos

    'Flat earther' dies in rocket crash

    A California man who said he wanted to fly to the edge of outer space to see if the world is round has died after his home-built rocket blasted off into the desert sky and plunged back to earth. Feb.

  • Business
    Bloomberg

    Tesla Rival Sets Out to Banish 160-Year-Old Lead Tech From Cars

    These may help eliminate lead-acid batteries, a piece of technology invented in 1859 that still lurks under the hoods of Teslas in addition to the main lithium-ion power source. Supercapacitors have some way to go before they are widely adopted. There is still a gap with the popular lithium-ion units on how much energy they can store, Skeleton Chief Executive Officer Taavi Madiberk admits.

  • NVIDIA Corporation Just Recorded A 5.1% EPS Beat: Here's What Analysts Are Forecasting Next
    Business
    Simply Wall St.

    NVIDIA Corporation Just Recorded A 5.1% EPS Beat: Here's What Analysts Are Forecasting Next

    Last week saw the newest yearly earnings release from NVIDIA Corporation (NASDAQ:NVDA), an important milestone in the company's journey to build a stronger business. NVIDIA reported US$11b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$4.52 beat expectations, being 5.1% higher than what analysts expected. Analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of.

  • Boeing finds debris in fuel tanks of many undelivered 737 MAX jets
    World
    Reuters

    Boeing finds debris in fuel tanks of many undelivered 737 MAX jets

    Boeing Co has found debris in the fuel tanks of dozens of undelivered 737 MAX jets amid ongoing inspections as the Chicago-based planemaker struggles to restore the trust of airlines and the wider public in the grounded fleet. Boeing found debris in the fuel tanks of about 35 aircraft, a company spokesman confirmed on Friday. A person familiar with the matter told Reuters that more than 50% of the undelivered 737 MAX jets inspected thus far have had debris found in them.

  • 9 secrets of dividend investing, from a couple of stock pros who beat the market
    Business
    MarketWatch

    9 secrets of dividend investing, from a couple of stock pros who beat the market

    Go with dividend growers: Dividend stocks outperform, as a group, but companies with a history of increasing dividends do better, whereas companies with flat dividends tend to be more average. You want to own shares in companies that are likely to continue hiking dividends. To find those, look for these next four qualities.

  • Business
    Barrons.com

    Virgin Galactic Stock Is on a Tear. This Other Asset Is Doing Even Better.

    Instead of buying stock from another holder when exercising a call option, a warrant holder will buy shares from the company, in this case Virgin Galactic. The company will take the cash from the warrant holder and issue new shares. It's one way for a company to raise capital.

  • Business
    GuruFocus.com

    Stocks That Fell to 3-Year Lows in the Week of Feb. 21

    Carnival Corp. (NYSE:CCL), Exxon Mobil Corp. (NYSE:XOM), 3M Co. (NYSE:MMM) and HSBC Holdings PLC (NYSE:HSBC) have reached their three-year lows. The price of Carnival shares declined to $41.69 on Feb. 21, which is only 4.2% above the three-year low of $39.92. Carnival is a British-American cruise operator and currently the world's largest travel leisure company.

  • Analysts: These 3 Tech Stocks Won’t Stay Under-the-Radar for Long
    Business
    TipRanks

    Analysts: These 3 Tech Stocks Won’t Stay Under-the-Radar for Long

    Like many small-cap tech companies, Allot reported a net loss per share in the quarter, of 5 cents. This didn't scare off investors as the stock is up 41% so far this year. Looking ahead, Allot is confident in its ability to drive continued growth.

  • Business
    Benzinga

    Notable Insider Buys Last Week: Moderna, Tesla And More

    Tesla Inc (NYSE: TSLA) CEO Elon Musk took advantage of the recent secondary offering. Via trust, he picked up more than 13,000 shares of this electric vehicle maker at $767.00 apiece. That cost him just shy $10 million.

  • Business
    Barrons.com

    Stocks Are Wobbling. Investors Saw It Coming.

    Yet the amount of money that has gone into exchange-traded funds tracking the broad market, rather than riskier areas, points to a degree of caution that should serve people well if stocks do drop. Almost as much money has gone into bonds as to equities. From the start of 2019 through the end of January, ETF investors allocated $168 billion, net of withdrawals, to equity ETFs, according to (MORN) Direct.

  • Warren Buffett says Berkshire is '100% prepared' for his death, details what will happen to his stock
    Business
    Yahoo Finance

    Warren Buffett says Berkshire is '100% prepared' for his death, details what will happen to his stock

    Investing icon Warren Buffett says Berkshire Hathaway (BRK-A, BRK-B) is "100% prepared" for his death, and detailed what will happen to his shares in that event. In his widely-read annual letter, Buffett told the story of how his friend received "an irritating letter" from a local newspaper seeking biographical data for an obituary. Buffett, whose net worth is estimated by Forbes to be $90.2 billion, has 99% of his net worth in Berkshire shares.

  • I’m 40, will get a pension and have $60,000 saved for retirement. Should I borrow from it to pay off $17,500 in credit card debt?
    Business
    MarketWatch

    I’m 40, will get a pension and have $60,000 saved for retirement. Should I borrow from it to pay off $17,500 in credit card debt?

    At that time, I will have 30-plus years on the job with a pension giving me 70% of my current income with a cost-of-living annual percentage increase around 2% or 3%. Is it a good idea to borrow from your 457(b) plan to pay off credit card debt? You're not alone in your struggle with credit card debt: More than half (55%) of U.S. adults who have credit cards say they also have debt, a survey from CNBC and Morning Consult revealed in 2019.

  • Warren Buffett Flashes ‘Urgent’
    Business
    Bloomberg

    Warren Buffett Flashes ‘Urgent’

    It's evolved over time into what reads like a love letter to shareholders, to insurance float — the lucrative gift that keeps on giving at Berkshire — and to America as a whole, while taking the occasional jab at Wall Street's fee-giddy bankers and anyone who thinks Ebitda is an honest profit gauge. Berkshire had $128 billion of cash as of December, about the same level as the previous quarter and many billions more than Buffett would like to see sitting in a bank. The letter, one of two major yearly events for Berkshire investors and Buffett groupies (the other is the shareholder meeting each May) has become more condensed in recent years.

  • Here are 25 Dividend Aristocrat stocks screened for ‘quality’
    Business
    MarketWatch

    Here are 25 Dividend Aristocrat stocks screened for ‘quality’

    The managers give practical advice, including focusing on companies with consistent records of increasing payouts, with high returns on capital and moderate dividend yields. A high dividend yield may be a signal that a majority of investors don't trust the company to maintain the payout. A dividend cut is typically associated with a severe drop in a company's stock price.