Peak Earnings Week | Morning News

APRIL 20, 2015

US futures getting a lift at this 7AM hour after overseas market trade mixed overnight and China announced yesterday that they would cut the reserve requirement ratio for all banks. With a quiet economic calendar this week, traders are focused on earnings as several heavyweights across all sectors report n the next 5 days. Oil pares gains after the Saudi Oil Minister announced that oil production would stay near peak for April.

 

NEWS:

  • HOUSING: Residential real estate market is showing signs of slowing, reports barrons
  • PLD: Prologis Inc to buy KTR Capital Partner for $5.9M
  • GRPN: raises Q1 EPS estimates: announces $300M share repurchase program
  • GRPN: announces intent to sell Ticket Monster stake for $360M
  • GENE: announces that it expects sales growth to accelerate through 2015 and beyond
  • TGT: Target launched Lily Pulitzer line and customers rush to buy both online and in brick and mortar stores
  • PCG: gas line explodes in Fresno, CA
  • ADM: ALV, DG, KR, LRCX, PCAR: Barrons out positive over the weekend
  • BAX:Investigational Stand-Alone Recombinant Treatment for Von Willebrand Disease Meets Primary Efficacy Endpoint in Phase 3 Trial of BAX 111, reports baxter
  • FB: WhatsApp surpasses 800M monthly active users
  • FB: Oppenheimer out positive on Facebook into earnings
  • MTG: RDN: GNW: ESNT: NMIH: ORI: FHFA weights in on PMIERs, removing uncertainty
  • APD: announces contract with Saudi Aramco t to build and operate the world’s largest industrial gas complex
  • JNJ: short term buy: Deutsche Bank
  • AAPL: Wells Fargo out positive on Apple into earnings
  • AAPL: Pacific Crest raises EPS estimate for Q2
  • MRO: top pick at Citi: has upgrade from MS this morning also
  • RTN: to acquire Wedsense for $1.9B

ON THE ECONOMIC CALENDAR:

  • 8:30AM: Chicago Fed National Activity Index: expectation +.15: ACTUAL -.42
  • 8:40AM: Fed’s Dudley holds Q&A on Monetary Policy: sees inflation rising, and US economy advancing

EARNINGS:

  • MS: Q1 EPS (Excl. DVA) of $1.14 beats by $0.36.Revenue (Excl. DVA) of $9.78B (+10.3% Y/Y) beats by $610M: conference call 8:30AM EST
  • HAL: Q1 EPS of $0.49 beats by $0.12.Revenue of $7.05B (-4.1% Y/Y) beats by $60M: cautions “unprecedented decline in drilling activity… which drove pricing pressure and margin compression across all product lines.”:conference call 9AM EST
  • HAS: Q1 EPS of $0.21 beats by $0.13.Revenue of $713.5M (+5.0% Y/Y) beats by $53.23M:entertainment and Licensing revenue increased 74% to $60.6M conference call 8:30AM EST
  • MTB:Q1 EPS of $1.68 misses by $0.08.Revenue of $1.1B (+1.9% Y/Y) misses by $20M: conference call 11AM EST
  • STI:Q1 EPS of $0.78 beats by $0.06.Revenue of $1.99B (-2.0% Y/Y) in-line: conference call 8AM EST
  • RCL:FQ1 EPS of $0.20 beats by $0.06.Revenue of $1.82B (-3.7% Y/Y) misses by $40M:guides down FY15 EPS cut to  $4.45 – 4.65 from $4.65 -4.85

SOME NOTABLE EARNINGS AFTER THE CLOSE:BMI, BRO, BXS, CNI, ELS, FTNT, GLF, HLX, HSTM, HXL, IBM, IEX, LRCX, PKG, RCI, RLI, RMBS, SANM, STLD, UCTT, WAL, WWD, ZION

SOME NOTABLE EARNINGS BEFORE TOMORROW’S OPENING: ATI, ACI, ABG, BHI, EAT, CP, CLS, CS, DOV, DD, FITB, GCI, GPC, HOG, ITW, KSU, KMB, LPT, LMT, MAN, MLNX, MTG, EDU, PNR, PLD, RF, SAP, SAH, SNB, SNV, TCB, AMTD, TCK, TRV, TTS, UA, UTX, VZ, WIT

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • GIS: upgrade; sell to neutral: Goldman: $56
  • SYMC: upgrade: sell to hold: Jefferies: $21
  • MRO: upgrade; market weight to overweight: Morgan Stanley: $37

DOWNGRADES:

  • KORS: downgrade: buy to neutral: Mizuho: $70
  • MDVN: downgrade: buy to neutral: Credit Suisse: $11
  • CHD: downgrade: buy to neutral: Goldman: $88
  • LULU: downgrade: outperform to underperform: CLSA: $68
  • CL: downgrade: neutral to sell: Goldman: $64

INITIATIONS:

  • ELY: initiated: buy: Jefferies:$16
  • BABA: initiated: buy: Summit Research: $97
  • BIDU: initiated: buy: Summit Research: $256
  • QIHU: initiated: buy: Summit Research: $71
  • QUNR: initiated: buy: Summit Research: $52
  • DYN: initiated; overweight: Morgan Stanley: $41

PRICE TARGET CHANGES:

  • TSLA: pt cut from $175 to $165: JP Morgan
  • INCY: pt raised from $93 to $120: SunTrust
  • CYT: pt raised from $54 to $62: Cowen
  • EGRX: pt raised from $55 to $75: Piper
  • GPOR: pt raised from $50 to $60: Stifel
  • PTCT: pt raised from $65 to $77: JP Morgan
  • YUM: pt raised from $80 to $90: Oppenheimer
  • AMZN: pt raised from $330 to $385: Wedbush
  • SLB: pt raised from $101 to $105: Oppenheimer
  • SLB: pt raised from $98 to $107: Susquehanna
  • SLB: pt raised from $95 to $110: UBS

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