World’s largest smartphone trade show canceled over coronavirus fears

The coronavirus has a new victim: the world’s largest phone show.

Mobile World Congress (MWC) — the annual convention where smartphone makers from around the world come to hawk their wares — was scheduled to take place in Barcelona on Feb. 24, but was canceled due to fears surrounding the viral epidemic.

In a statement to Bloomberg, CEO of MWC organizer GSMA John Hoffman said that it would be “impossible” to hold the event due to “global concern regarding the coronavirus outbreak.”

The conference was set to draw more than 110,000 participants to the Spanish city, including thousands of delegates from China. But as the coronavirus has spread in recent weeks — more than 40,000 people have been infected globally and more than 1,100 have died from it — big names began to pull out.

Facebook yanked its employees from the event, citing “evolving public health risks related to the coronavirus,” while Intel backed out “out of an abundance of caution.” Other companies, including Amazon, Nokia, Cisco and Sony, pulled out of the conference before its cancellation.

Spanish media earlier Wednesday had reported that MWC organizers would be convening Friday morning to make a decision on the status of the show — a mere 10 days before it was set to begin.

The show was expected to have an economic impact of more than $530 million on Barcelona, according to the organizing body.

Crude Oil Futures Settle Sharply Higher

Despite a jump in U.S. crude stockpiles last week, crude oil prices moved up sharply on Wednesday amid expectations that OPEC and allies will significantly cut crude production, and on reports from China that the number of new infections due to the coronavirus has come down a bit.

West Texas Intermediate Crude oil futures for March ended up $1.23, or about 2.5%, at $51.17 a barrel.

Brent crude futures advanced by about $1.75, or 3.3%, to $55.76 a barrel.

OPEC has cut its forecast for energy demand growth this year, citing the coronavirus outbreak. It said oil demand will grow by 990,000 barrels per day this year, about 230,000 barrels per day less than what was forecast earlier.

According to the data released by the Energy Information Administration (EIA) this morning, crude stockpiles in the U.S. were up by 7.5 million barrels in the week ended February 7, more than three times the expected increase.

The EIA data also said gasoline inventories dropped by 95,000 barrels last week, as against expectations for a rise of 550,000 barrels. Meanwhile, distillate stockpiles were down by 2 million barrels, substantially higher than an expected drop of 560,000 barrels.

On Tuesday, the American Petroleum Institute released a report that said crude oil stockpiles rose by 6 million barrels last week.

NetApp stock drops 13% after earnings, CFO departure

NetApp Inc. NTAP, +2.95% shares dove more than 13% in after-hours trading Wednesday, after the memory company’s results and forecast came in lighter than expected, and its chief financial officer announced his impending departure. NetApp reported fiscal third-quarter earnings of $277 million, or $1.21 a share, on sales of $1.4 billion, after posting earnings of 98 cents a share on sales of $1.56 billion a year ago. After factoring in stock-based compensation, some tax effects and amortization, NetApp reported earnings of $1.16 a share. Analysts on average expected NetApp to report adjusted earnings of $1.18 a share on sales of $1.46 billion. NetApp’s fourth-quarter forecast was also slightly off from expectations — the company said it expects to record adjusted earnings of $1.28 to $1.36 a share on revenue of $1.46 billion to $1.61 billion, while analysts on average were expecting adjusted earnings of $1.39 a share on sales of $1.57 billion. The company also announced that CFO Ron Pasek plans to retire by the end of the fiscal year, and NetApp intends to name a successor by that time. NetApp shares, which closed Wednesday with a 3% gain at $60.82, dove to less than $53 in the extended session.

Applied Materials stock wobbly as results, outlook beat Street view

Applied Materials Inc. AMAT, +1.43% shares fluctuated between slight gains and losses in the extended session Wednesday after the chip-maker supplier’s results and outlook topped Wall Street estimates. Applied Materials shares were last up less than 1% after hours, following a 1.4% gain in the regular session to close at $65.37. The company reported fiscal first-quarter net income of $892 million, or 96 cents a share, compared with $771 million, or 80 cents a share, in the year-ago period. Adjusted earnings were 98 cents a share. Revenue rose to $4.16 billion from $3.75 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 91 cents a share on revenue of $4.09 billion. Applied Materials expects fiscal second-quarter earnings of 98 cents to $1.10 a share on revenue of $4.14 billion to $4.54 billion, while analysts had forecast 91 cents a share on revenue of $4.05 billion. "Applied Materials’ first quarter earnings exceeded the top-end of our guidance, giving us great momentum entering 2020," said Gary Dickerson, president and CEO, in a statement. "We believe we can deliver strong double-digit growth in our semiconductor business this year as our unique solutions accelerate our customers’ success in the AI-Big Data era."

NetApp Inc. Q3 adjusted earnings Miss Estimates

NetApp Inc. (NTAP) reported a profit for its third quarter that advanced from last year.

The company’s bottom line came in at $277 million, or $1.21 per share. This compares with $249 million, or $0.98 per share, in last year’s third quarter.

Excluding items, NetApp Inc. reported adjusted earnings of $320 million or $1.16 per share for the period.

Analysts had expected the company to earn $1.18 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter fell 10.3% to $1.40 billion from $1.56 billion last year.

NetApp Inc. earnings at a glance:

-Earnings (Q3): $320 Mln. vs. $375 Mln. last year.
-EPS (Q3): $1.16 vs. $1.20 last year.
-Analysts Estimate: $1.18
-Revenue (Q3): $1.40 Bln vs. $1.56 Bln last year.

-Guidance:
Next quarter EPS guidance: $1.19 – $1.36
Next quarter revenue guidance: $1.455 – $1.605 Bln