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After Hours: SolarCity, Gap Crash, Stamps.com, MaxLinear Rise

SolarCity ( SCTY ), Gap ( GPS ), Stamps.com ( STMP ) and  MaxLinear ( MXL ) were among those reporting quarterly earnings or preliminary figures after the close on Monday. SolarCity SolarCity’s per-share loss deepened to $2.56, worse than an expected loss of $2.32. GAAP revenue surged to around $123 million, topping estimates for $109.8 million. But the residential solar-energy systems installer expects a second-quarter loss that was far worse than investors expected. SolarCity cut its full-year installation forecast to 1.0-1.1 gigawatts from 1.25 gigawatts and said first-quarter bookings were weak Shares tumbled 14% in late trading after closing up 3.1% on the stock market today . The company in a Q1 review cut its full-year installation forecast to 1.0-1.1 gigawatts from 1.25 gigawatts and said first-quarter bookings were weak. The company, whose chairman is Tesla ( TSLA ) CEO Elon Musk, also said regulatory decisions, pending or resolved, hindered potential decisions on purchases. Gap Gap expects first-quarter EPS of 31 to 32 cents, below analysts’ consensus for 33 cents after saying that sales fell 6% to $3.44 billion, well below Wall Street’s $3.54 billion target. April same-store sales fell 7%. The struggling apparel retail also said it’s evaluating its Banana Republic and Old Navy chains, mainly outside the U.S. Gap shares plunged 11% in extended trading after closing up 0.7% at 21.81. Gap will report full Q1 results on May 19. Stamps.com Stamps.com earned $1.72 a share in its Q1, up 139% vs. a year earlier. Revenue rose 86% to $81.8 million. Wall Street had expected EPS of $1.06 on revenue of $65.61 million. Stamps.com now sees full-year EPS of $6-6.50 and revenue of $310 million-$330 million. Analysts had forecast EPS $5.28 and revenue of $301.8 million. Stamps.com stock leapt 17% in late trading. Shares closed up 4.7% to 88.34, trying to break a 2-month downtrend since hitting a record high of 123.75 on May 4. MaxLinear MaxLinear ( MXL ) stock rose late Monday after the wireless chipmaker reported strong first quarter earnings growth and said it will buy the wireless infrastructure backhaul business of Broadcom ( AVGO ) for $80 million. On April 28, MaxLinear announced that it had bought assets related to Microsemi’s ( MSCC ) wireless business, which was previously part of PMC-Sierra, for $21 million plus some assumed liability. MaxLinear’s Q1 EPS minus one-time items shot up to 45 cents vs. 9 cents a share in the same quarter a year ago, beating analyst estimates by 2 cents. Revenue grew 190% to $102.7 million, edging views for $102.2 million, partly on strong early ramp sale of its high-speed optical interconnect products. MaxLinear shares rose 3% late.  

5 Top Chip Stocks Seek Support Amid Enterprise Demand Warning

Highly rated chipmakers Macom Tech ( MTSI ), Microsemi ( MSCC ), MaxLinear ( MXL ), Inphi ( IPHI ) and Cirrus Logic ( CRUS ) are dropping in heavy volume today, though they pared their losses as the tech-heavy Nasdaq rallied by the early afternoon. Some of the selling pressure is potentially coming from Juniper Networks ‘ ( JNPR ) earnings preannouncement late Monday. The networking equipment vendor lowered its first-quarter revenue and earnings expectations below Wall Street estimates, citing weaker-than-anticipated demand from enterprise customers. Macom tumbled intraday below its 50-day line and the 40 price level in intraday trade, but the shares are now looking for support at those levels, down 2.9% in early afternoon action. The stock is trading 11% below its recent high. Microsemi is plunging back below buy range from a cup-with-handle base buy point it initially cleared in mid-March, losing 2.5%. In intraday trade, shares neared the 50-day line, which recently crossed back above the 200-day line as the stock’s performance improved. MaxLinear also dropped back below buy range from a base it initially cleared in early March, though it pared its losses, sliding 2.8% in early afternoon action. Several weeks ago, the stock dipped back below buy range but found support at the 50-day line before regaining composure. Inphi is still well extended from a double-bottom entry at 28.54, but it tested the lower bound of its buy range from an alternate entry at 32.42. Shares dipped 1.2% to 33.41. And Apple ( AAPL ) supplier Cirrus Logic is testing support at its 50-day line, but it bounced back to trade unchanged. Shares are trading 7% below their high set last May. Apple, for its part, rose 0.6% intraday. Meanwhile, Juniper Networks gapped down 8% on the bearish outlook, plunging below its 50-day line in giant volume. The stock is now 29% below its November peak.

Juniper’s Q1 Miss Drags Down Networking Stocks; Chips Fall Too

When enterprise clients slow down purchases, and Internet service providers delay capital expenditures, Juniper Networks ( JNPR ) has a problem. The top computer-networking gear maker not named Cisco Systems ( CSCO ) pre-announced just such a first-quarter situation after the market close Monday, sending networking stocks lower Tuesday. Juniper stock was down more than 9% in morning trading in the stock market today , below 23, as at least three investment banks lowered their price target. Cisco stock was down 1%, near 27. The IBD Computer-Networking industry group was down 1.4%. Shares of  Arista Networks ( ANET ) and rival Brocade Communications Systems ( BRCD ) were each down 2%. Chips stocks weren’t faring much better. IBD’s Electronics-Semiconductor Manufacturing industry group was down 1% and had been down more than 4%, while the Electronics-Semiconductor Fabless group also was down 1%. Microsemi ( MSCC ) was down nearly 3%,  MaxLinear ( MXL ) 1%, and Inphi ( IPHI ) was weaker by more than 1% — though all had been down more than 3% earlier. FBN Securities analyst Shebly Seyrafi dropped his price target for Juniper stock to 25 from 27 and maintained a sector perform rating. “The primary reasons for the weakness include weaker-than-anticipated demand from enterprise (customers) and the timing of deployments of certain U.S. and EMEA (Europe, Middle East and Africa) Tier 1 telecoms,” Seyrafi wrote in a research note Tuesday. “It is somewhat disappointing to see the weakness in EMEA telecoms (which was the case in fiscal Q4 as well), especially considering that in Q4, JNPR’s service provider segment grew by a strong 25% year over year and that JNPR had an easy compare in the Q1 service provider segment (where revenue declined 8% year over year the year before).” Seyrafi noted that AT&T ( T ) expects to grow capital expenditures 6% to $22 billion this year, while Verizon ( VZ ) implied a 3% decline in capex to a range of $17.2 billion to $17.8 billion. “So U.S.-based service providers will likely not be driving much growth for communication equipment suppliers this year,” he said. Juniper Notes March Rebound “We do think that Juniper felt what Cisco (outperform-rated) noted in February, namely that some customers paused to digest what was happening following financial market turbulence at the beginning of the year,” Seyrafi wrote. “However, we do note that financial markets rebounded in March, and JNPR CEO Rami Rahim stated that the company remains constructive on fiscal 2016 as the company expects new products to add to growth while the company maintains ongoing focus on cost discipline.” Juniper said that it expects to report earnings per share minus items of 35 cents to 37 cents, down from its prior guidance of 42-46 cents. Wall Street had expected 43-44 cents, up 34% to 38% from Q1 2015. Juniper’s new midpoint, 36 cents, would be up 12%. Juniper expects Q1 revenue of $1.09 billion to $1.10 billion, down from its prior guidance of $1.15 billion to $1.19 billion. Analysts polled by Thomson Reuters had expected $1.16 billion, up 8.4%. Sunnyvale, Calif.-based Juniper is set to release full Q1 results after the close April 28. William Blair analyst Jason Ader maintained his outperform rating on Juniper stock but “modestly lowered” full-year estimates for 2016 and 2017. Analyst Alex Henderson at Needham reiterated his hold rating and said that he’s “firmly on the sidelines,” as he too trimmed estimates. “While we see Juniper as one of the weaker companies in our coverage, there could be read-throughs to other names such as Cisco, F5 Networks ( FFIV ) and Viavi ( VIAV ),” Henderson said in a Tuesday research note. “We think Arista and Gigamon ( GIMO ) are likely to be able to power through the choppy environment. Given the magnitude of the (Juniper) top-line miss, we think estimates for Q2 will have to be ratcheted back as well.” F5 stock was down 2% Tuesday morning, while Gigamon was down 1% and Viavi Solutions off 1.5%.