Acacia (ACIA), NVIDIA (NVDA) Stock Flying on Earnings Blowout; ORIG Slumps On Bankruptcy Concerns

Nasdaq stocks

Shares of Ocean Rig UDW LLC (NASDAQ:ORIG) plunged $1.02, or 70 percent, to $1.14 in after-hours trading Thursday after the company reported fiscal-second quarter earnings.

The offshore drilling contractor posted earnings of $1.83 per share on revenues of $452.6 million, up 4.5% from a year ago. Analysts were expecting EPS of $0.71 on revenues of $370.22 million.

While earnings results came in better-than-expected, the company said, “Despite the continued positive operational performance of the Company (fleet utilization for the second quarter of 96.3%) the market conditions remain extremely negative. Oil companies continue to reduce their offshore budgets and as more floaters come off contract in the next six months, an already grossly oversupplied market is expected to worsen. In this current and anticipated poor market environment which we expect to persist for an extended period of time, we believe it is prudent to focus on maintaining liquidity and de-levering the Company.”

Ocean Rig also said, “Given the ongoing distressed market environment as well as the consensus view that a recovery may not occur for several years, we have engaged financial and legal advisors to assess the viability of our capital structure and alternatives that may be available to pursue. In the recent period, we have been approached by several of our debt holders who have in certain cases also retained legal counsel and financial advisors. While we have not made any specific decisions, it is evident to the Company and a number of its creditors that its debt obligations will need to be amended or exchanged for new debt and/or equity securities, and some debt holders may have little or no recovery on their investment. We continue to explore and consider alternatives, which may include a possible reorganization under US bankruptcy laws or another jurisdiction, so that we can ride out this very difficult cycle with feasible prospects for strong, long-term success.” (emphasis added)

ORIG currently prints a year-to-date loss of about 37 percent.

Acacia Communications, Inc. (NASDAQ:ACIA) rallied 20% to $80.80 in after-hours trading after it reported fiscal-second quarter earnings.

The provider of high-speed coherent interconnect products handed in earnings of $0.77 per share on revenue of $116.2 million, handily beating Wall Street estimates of $0.30 per share on revenue of $85.78 million. GAAP net income for the period came in at $17.6 million, or $0.43 per diluted share, from $4.7 million, or $0.09 per diluted share, a year earlier.

Liquidity

As of June 30, 2016, the company had cash and cash equivalents of $159 million, compared with $16 million in the same period last year.

Looking ahead, for Q316, Acacia provided EPS guidance of $0.64 to $0.76 versus consensus of $0.44 per share. The company also issued revenue projection of $120 to $128 million, compared to the consensus revenue estimate of $91.70 million.

ACIA currently prints a year-to-date return of around 119 percent.

NVIDIA Corporation (NASDAQ:NVDA) reported second-quarter non-GAAP EPS of $0.53 after the closing bell Thursday, compared to the consensus estimate of $0.48. Revenues increased 23.9% from last year to $1.43 billion. Analysts expected revenues of $1.35 billion. The company’s net income soared to $253 million, or $0.40 per share, from $26 million, or $0.05 per share, a year earlier.

For the current quarter, the graphics chip titan guided revenues of $1.65 billion to $1.71 billion, as compared to analysts’ expectations of $1.45 billion. Sales would be up 29% at the midpoint. NVIDIA didn’t offer an earnings per share view, but consensus is at $0.43, down $0.01.

Nvidia CEO Jen-Hsun Huang said in a statement that the company’s quarter was helped by “strong demand for our new Pascal-generation GPUs and surging interest in deep learning drove record results.” Huang also said “We are more excited than ever about the impact of deep learning and AI, which will touch every industry and market. We have made significant investments over the past five years to evolve our entire GPU computing stack for deep learning. Now, we are well positioned to partner with researchers and developers all over the world to democratize this powerful technology and invent its future.”

NVIDIA stock is currently up $2.15 to $61.85 on 17 million shares.

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