LOCO = Reports Q3 revenue $112.1M, consensus $110.37M. System-wide comparable restaurant sales increased 1.1%, including a 1.6% increase for company-operated restaurants, and a 0.6% increase for franchised restaurants. Bernard Acoca, President and Chief Executive Officer of El Pollo Loco Holdings, Inc., stated, “Our third quarter results were highlighted by accelerating sales momentum as our Transformation Agenda continues to gain traction. Despite a slow start to the quarter, the expansion of our delivery capabilities, focus on value and improved company operations drove system-wide comparable restaurant sales growth of 1.1%, representing our fifth straight quarter of positive system-wide comp growth. In fact, the month of September was our strongest month of the year to-date in terms of sales, with system comparable restaurant sales of 4.2% driven by positive traffic, which is particularly impressive given the 3% growth comparison from last year. We’re pleased to see our momentum continue into the fourth quarter as both system wide comparable sales and traffic remain positive in October.” SunTrust analyst Jake Bartlett raised his price target on El Pollo Loco to $14 after its stronger than expected Q3 results, with 1.1% increase in comps for the quarter along with the 4.2% increase in September. The analyst adds that he is also encouraged by the recent trends around the impact of delivery, but remains on the sidelines until the sustainability of same-store-sales momentum is “more clear”.

NPTN = Reports Q3 revenue $92.4M, consensus $89.77M. “Solid execution, strong customer demand, and cost reduction combined for a profitable quarter for NeoPhotonics,” said Tim Jenks, Chairman and CEO of NeoPhotonics. “Despite the trade tensions, we believe the macro trends of the industry favor our core capabilities of delivering the highest performance products for the most demanding applications,” concluded Jenks.

BGNE = Piper Jaffray analyst Tyler Van Buren raised his price target for BeiGene (BGNE) to $200 from $180 citing the company’s “surprising” and “transformational” strategic collaboration with Amgen (AMGN). This is a “high quality deal” as it leverages BeiGene’s commercial infrastructure in China in the near-term, creates immediate synergies, maximizes the company’s strategic presence in China over the long-term, and provides “additional validation from a bellwether in the biotech space after recent short attacks” and just ahead of the Aspen trial readout, Van Buren tells investors in a research note. He keeps an Overweight rating on BeiGene shares.

QRVO = Qorvo® (Nasdaq:QRVO), a leading provider of innovative RF solutions that connect the world, today announced financial results for the Company’s fiscal 2020 second quarter, ended September 28, 2019.  On a GAAP basis, revenue for Qorvo’s fiscal 2020 second quarter was $807 million, gross margin was 40.1%, operating income was $113 million and diluted earnings per share was $0.70.  On a non-GAAP basis, gross margin was 46.5%, operating income was $208 million and diluted earnings per share was $1.52. Bob Bruggeworth, president and chief executive officer of Qorvo, said, “Qorvo delivered another solid quarter, as our technology investments, portfolio management, and operational discipline continued to yield strong and consistent performance.  We are especially pleased with 5G design activity and the trends we see toward increasing RF integration.  During the quarter, we successfully integrated our programmable power management products and technologies into IDP.  Following the quarter, we completed the acquisition of Cavendish Kinetics, adding RF MEMS technology and expanding Qorvo’s technology and product leadership.”

Strategic Highlights

  • Secured new design wins and expanded participation in mass-market tier of leading Korea-based smartphone manufacturer
  • Selected by top four China-based smartphone OEMs to supply mid-/high-band PAD and other highly integrated solutions for upcoming 5G smartphones
  • Selected to supply recently launched Wi-Fi 6 front end modules (FEMs) in support of multiple leading China-based smartphone OEMs
  • Received first purchase orders for next-generation multiplexers featuring Qorvo’s recently launched micro BAW technology
  • Launched world’s first Wi-Fi 6 dual-band FEM and world’s first Wi-Fi 6 iFEM for CPE applications, expanding Wi-Fi portfolio for retail, enterprise and network operators
  • Secured design win to supply V2X co-existence 5.9 GHz BAW filter to top-tier automotive OEM for calendar 2020 shipments and shipped Wi-Fi FEMs supporting multiple automotive OEMs
  • Received purchase orders to supply GaN amplifiers for X-band and Ka-band defense radar and communications programs
  • Expanded portfolio of integrated motor control power management solutions supporting brushless DC motors in white goods, power tools and other products
  • Completed, following the quarter, acquisition of Cavendish Kinetics, adding RF MEMS capabilities and expanding technical leadership in switching and tuning
  • Announced today the authorization of a new $1 billion share repurchase program

Mark Murphy, chief financial officer of Qorvo, said, “Qorvo’s December quarter guidance reflects continued robust mobile demand supported by an increase in 5G handset volumes.  Separately, as a result of our market outlook, operating performance and free cash flow forecast, Qorvo’s Board of Directors has approved a new $1 billion share repurchase authorization.”

Qorvo currently believes the demand environment in its end markets supports the following expectations for the December 2019 quarter:

  • Quarterly revenue in the range of $840 million to $860 million
  • Non-GAAP gross margin of approximately 48%
  • Non-GAAP diluted earnings per share of $1.67 at the midpoint of guidance

Craig-Hallum analyst Anthony Stoss raised his price target for Qorvo (QRVO) to $100 from $85 and reiterated a Buy rating after the company’s results and guidance came in above estimates on strength at both Apple (AAPL) and Samsung (SSNLF). Additionally, Stoss says Qorvo is seeing new 5G design wins with Chinese smartphone OEMs coming in faster than expected, which should drive significant content expansion for the company. He continues to think Qorvo is nicely positioned to benefit from both content expansion as well as unit growth at Apple next year driven by the likely introduction of a 5G iPhone.

Needham analyst Rajvindra Gill raised his price target on Qorvo to $105 and kept his Buy rating after its “significant” Q2 earnings beat and raised guidance. The analyst says the earnings beat was driven by the company’s mobile segment, where demand has strengthened throughout the quarter, along with support from “multiple 5G engagements” from China’s top OEMs.

EHC = The fiscal 2020 Medicare payment and policy final rule for home health agencies was published last night, William Blair analyst Matt Larew tells investors in a research note. The “behavioral adjustment” remained in the final rule as expected, and technically increased from 8.01% to 8.39%, says the analyst. However, given the magnitude of changes that the Patient-Driven Groupings Model system brings for 2020, Centers for Medicare and Medicaid now believes that it will take providers longer to adopt the “assumed behaviors,” adds the analyst. The net outcome is that the behavioral adjustment for 2020 has decreased to 4.36% in the final rule from 8.01% in the proposed rule, says Larew. He believes this is a positive outcome for providers that should push 2020 estimates higher. The analyst has Outperform ratings on Addus HomeCare (ADUS), Amedisys (AMED), Encompass Health (EHC) and LHC Group (LHCG).

BRKR = Bruker’s revenues for the third quarter of 2019 were $521.1 million, an increase of 11.7% compared to the third quarter of 2018. In the third quarter of 2019, Bruker’s year-over-year organic revenue growth was 7.6%. Growth from acquisitions was 6.4%, while foreign currency translation had a negative effect of 2.3%. Third quarter 2019 Bruker Scientific Instruments (BSI) segment revenues of $471.8 million increased 13.1% year-over-year, including organic growth of 8.6%. Third quarter 2019 Bruker Energy & Supercon Technologies (BEST) segment revenues of $52.5 million increased 3.1% year-over-year, including an organic revenue decline of 0.8%, net of intercompany eliminations. Third quarter 2019 GAAP operating income was $87.8 million, compared to $69.1 million in the third quarter of 2018, representing GAAP operating margins of 16.8% and 14.8%, respectively. Non-GAAP operating income was $95.5 million, compared to $83.3 million in the third quarter of 2018. Bruker’s third quarter 2019 non-GAAP operating margin of 18.3% increased 40 basis points from 17.9% in the third quarter of 2018. Frank H. Laukien, President and CEO of Bruker, commented: “We are very pleased with our year-to-date progress, with 6% organic and 13% constant currency revenue growth, highlighted by our strong performance in life science mass spectrometry solutions and in microbiology. We are on track to deliver solid margin and EPS improvements in 2019, and we are increasing our non-GAAP EPS outlook for the full year.”

MTZ = MasTec, Inc. (NYSE: MTZ) today announced better than expected third quarter financial results and increased 2019 annual earnings guidance.

  • Third quarter 2019 revenue was $2.02 billion, compared with $1.98 billion for the same period last year. GAAP net income increased 8% to $130.1 million, or $1.69 per diluted share, compared to $120.5 million, or $1.52 per diluted share, in the third quarter of 2018. GAAP results exceeded the Company’s previously announced diluted earnings per share expectation by $0.12.
  • Third quarter 2019 adjusted net income, a non-GAAP measure, increased 26% to $132.8 million, compared to $105.2 million for the same period last year. Adjusted diluted earnings per share, a non-GAAP measure, increased 30% to $1.73, compared to $1.33 in the third quarter of 2018, exceeding the Company’s previously announced third quarter 2019 expectation by $0.11.
  • Third quarter adjusted EBITDA, also a non-GAAP measure, was $252.1 million, compared with $226.3 million in the third quarter of 2018, an 11% increase. Third quarter adjusted EBITDA margin was 12.5%. Third quarter adjusted EBITDA also exceeded the Company’s previously announced 2019 third quarter guidance expectation by approximately $6 million.
  • The Company also announced 18-month backlog as of September 30, 2019 of $7.5 billion, an approximate $300 million decline when compared to the third quarter of 2018. Backlog as of September 30, 2019 does not include approximately $700 million in awards signed during the third quarter that are estimated to be realized beyond the 18-month period utilized in backlog.
  • Adjusted net income, adjusted diluted earnings per share and adjusted EBITDA, which are all non-GAAP measures, exclude certain items which are detailed and reconciled to the most comparable GAAP-reported measures in the attached Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures.

Jose Mas, MasTec’s Chief Executive Officer, commented, “We had a strong quarter and exceeded our earnings expectation with a 110-basis point improvement in adjusted EBITDA margin. We are pleased to raise our annual earnings guidance expectation, despite lower than originally expected third and fourth quarter Oil & Gas revenue, as regulatory delays on one large project caused shifts in construction activity and revenue to 2020.” Mr. Mas continued, “As we look forward into 2020 and beyond, we remain bullish about our growth prospects, with great visibility and strong demand for our Oil & Gas, Communications, Power Generation & Industrial and Electrical Transmission segments. We believe our growing end markets will allow us the opportunity to extend both our geographic base as well as our service offerings.”

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