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Amazon (NASDAQ:AMZN) says it will provide up to two weeks of pay for employees who are diagnosed with the coronavirus or placed into quarantine.
The company establishes the Amazon Relief Fund with an initial $25M to support delivery service partners, Flex workers, and seasonal employees experiencing financial stress due to the virus.
In its newly filed 10-Q report, Ciena (CIEN -5%) now says it is expecting adverse impact on its revenue and results for Q2 tied to the coronavirus outbreak.
“We are monitoring the situation and actively assessing further possible implications to our business, supply chain and customer demand. However, the coronavirus situation remains dynamic,” the company says.
If adverse effects of the virus become more prevalent in locations where Ciena, customers, suppliers or manufacturers conduct business, the company might experience constrained supply or curtailed demand that would provide material impacts in future periods, it says.
It expects the virus to impact Q2 revenue by $30M, forecasting $875M-$905M.
On the conference call from its fiscal Q1 report, the company had said full-year guidance would be unchanged if there were no additional impact from COVID-19.
In a shareholder update on COVID-19, Maxar Technologies (MAXR -9.4%) says it’s watching the timing of new awards carefully but “to date there has been no material impact to delivery of Maxar’s backlog or revenue.”
“All of Maxar’s operations remain open and the Company has business continuity plans for all sites,” it says. “While Maxar has employees in many countries, we do not have manufacturing or other critical operations in any locations currently designated as CDC Level 2 or 3 risk areas.”
It’s monitoring five suppliers in China for the Space Infrastructure business but sees no near-term impacts, and it’s unaware of downstream disruption to its supply chain.
Similarly, there’s no significant disruption to the Earth Intelligence business, or the sale of MDA to a consortium.
KeyBanc analyst Weston Twigg says that memory-focused semi companies “could be reasonably well positioned” amid the coronavirus outbreak, which could improve the industry’s supply/demand balance.
Twigg writes that demand for NAND and DRAM “will remain limited this year after nearly two years of restricted capacity expansion,” which “should lower downside risk if demand is meaningfully affected.”
Twigg prefers Micron (NASDAQ:MU) over its peers and maintains an Overweight rating and $63 price target. The company has a Bullish average Sell Side rating.
Micron shares are down 2.9% pre-market to $46.47.
Jefferies cuts its price targets on a number of software names, saying that “no one is immune” from the potential impact of the coronavirus outbreak.
Analyst Brent Thill expects the impact to show up in March quarter results and notes that “key companies have begun to foreshadow the impending impacts of coronavirus, from event cancellations to restricted travel.”
Notable target changes: Microsoft (NASDAQ:MSFT) from $195 to $190, Palo Alto Networks (NYSE:PANW) from $266 to $225, Salesforce (NYSE:CRM) from $220 to $200, and Splunk (NASDAQ:SPLK) from $180 to $165.
Microsoft shares are down 2.3% pre-market to $157.20.
