Market –0.35%
-WSJ: Merkel faces tough choices as Greek crisis threatens euro anew Link
-WSJ: Lockhardt suggests QE3 isn’t a done deal Link
-German senior lawmaker says concessions with Greece bailout possible Link
-Sarepta’s risks shouldn’t be ignored Link
-Coinstar streaming strategy HBO Go-like, less quantity more curated Link
-German ECB Asmussen says bond purchases may be “unlimited” Link
-Oracle Investment Research downgrades Apple to hold Link
DELL call: corporate client discretionary spend "has been in a pause" in current uncertain environment. component prices hasn’t changed much. Little bit more deflation due to weak demand, but not dramatically different. consumer "revenue deterioration clearly worse than they expected" deterioration can’t last forever co says "challenging end-user computing environment in the 2H (of year)" "long-term strategy will take time" seeing shift to tablets/smartphones. Q2 consumer revenue $2.62 billion, operating income $14 million. consumer business -22% y/y, consumer notebook sales -26% y/y (OMG UGLY! iPad driven implosion). "continued budgetary challenges" in government public business
consumer PC/segment revenue last 3 quarters y/y: Q4 -4% y/y, Q1 -12% y/y, Q2 -22% y/y
large enterprise: Q4 +5% y/y, Q1 -3% y/y, Q2 -3% y/y. Small business Q4 +10% y/y, Q1 +4% y/y, Q2 -1% y/y
public: Q4 -1% y/y, Q1 -4% y/y, Q2 -6% y/y
DELL cash flow from operations $637 million vs.*gasp* GS estimate of $1.11 billion
DELL EPS beat this quarter is all one-time lower tax-rate and one-time vendor settlement, it’s not a beat
DELL guides FY2013 EPS to "at least 1.70" vs. previous guidance of at least 2.13 and street estimate of 1.91. next quarter guidance is really bad. Sales mid-point $13.99B vs. even already meager estimate of $14.86B
BKS call: won’t give out Nook unit numbers (weird). Shades of Grey had biggest impact on our numbers. Traffic is up y/y. best-sellers only 5% of sales. Nook ASP -23% y/y. Nooks sales would have been significantly higher if it wasn’t for product shortages of Nook Glowlight. expect to gain share with Windows 8 ebook-store launch. will launch UK Nook biz with top retailers in October. Nook news-stand is leading seller of digital magazines. their data suggests they are maintaining 25-30% market share in ebooks
BKS Nook device sales y/y last 3 qters: 64%, negative, negative. Nook digital content: 85%, 65%, 46%. Overall Nook sales: 38%, 1%, flat
BBY call: "stuff going on in the public market place is a distraction" notebook industry is softer than they anticipated going into Windows 8 launch. visibility to technology product launches in 2H is "variable" In other words, they have no idea. TVs mid single digit growth, but lower ASPs. Smaller/mid size screens. gross margin lower than anticipated. Greater mix of smart-phones, lower volumes of notebooks – bigger promotions. China really weak as economy slows there. TV, gaming, notebooks weak. Mobile phones, tablets better. lower gross margin due to product mix and promotions
