MorningWord 2/11/13: I think it is fair to say that Q4 Technology earnings were a mixed bag, for instance semiconductors heavily exposed to PCs struggled (INTC), while those exposed to smartphones & tablets flourished (QCOM), smartphone manufactures still trying to hold onto every last once of margin (AAPL) felt market share pressure from those looking to undercut on price with broader offerings (Samsung & GOOG). While these trends have been emerging for the past few quarters, they are likely to continue for the foreseeable future.
With most companies have just reported trailing results and given at least guidance for the current quarter, most investors would likely expect to be in a bit of quiet period until we get towards the back end of Q1 and we get into “pre-announcement season”. This week is likely to be a bit of an anomaly as Goldman Sachs hosts their anual Technology Conference with some VERY notable key note addresses throughout the day on Tuesday; Tim Cook CEO of AAPL on Tuesday at 4:15pm et, YHOO’s CEO Marissa Mayer 3:30pm et, EBAY CEO & John Donahue at 11:10am (full schedule below). It is likely way to soon for any business updates since all three company’s gave Q1 guidance in the last 3 weeks, but it does give companies like AAPL and YHOO the opportunity to speak to the institutional investment community directly about recent cash management concerns in AAPL’s case or a broader sense for a turnaround at YHOO.
While I don’t expect too much market moving commentary, I would expect managements to highlight recent successes and do their best to soften the rhetoric around disappointments. In AAPL’s case, I wouldn’t expect too much additional commentary centering on their plans for cash return to shareholders after the company’s very public statement on Thursday that they were considering additional options prior to their shareholder meeting on Feb 27th.
Here’s the full schedule: