AAPL earnings | Morning News

APRIL 28.2015

US futures slipping at this 7AM hour, following mostly red arrows around the world, as cautious investors await key economic data this week as well as continued earnings reports. Overseas, the UK GDP expanded slower than expected in the first quarter, growing just .3% v. the .5% expected. Oil dips below $65 as investors await inventory data due later and a vow from Saudi Arabia to keep production ramped up.

NEWS:

  • SNY: FDA has granted Fast Track designation for the development of GZ/SAR402671, reports rttnews
  • GOOG: GOOGL: Google to partner with European media groups, reports the ft
  • TSN: Tyson will eliminate most drugs in chickens by 2017, reports the WSJ
  • AMRN: FDA issues rejection letter for Vascepa
  • TWTR: JPM Securities positive on Twitter into earnings
  • AAPL: Over 60 million iPhone 6s to be shipped in 2Q15 according to  Taiwan makers, reports digitimes

ON THE ECONOMIC CALENDAR:

  • 8:55AM: Redbook Chain Store Sales
  • 9AM: Case-Shiller Home Price Index
  • 10AM: Richmond Fed Manufacturing
  • 10AM: Consumer Confidence
  • 10AM: State Street Investor Confidence Index
  • 1PM: $35B, % Year Note Auction
  • 4:30PM: Weekly API oil inventory data

EARNINGS:

  • WHR: Q1 EPS of $2.14 misses by $0.20.Revenue of $4.85B (+11.2% Y/Y) misses by $210M: guidancelowers FY15 EPS view to $9.00-$10.00 from $10.75M-$11.75: conference call 10AM EST
  • AET: Q1 EPS of $2.39 beats by $0.44.Revenue of $15.09B (+8.0% Y/Y) misses by $370M: guidance raises FY15 operating EPS to $7.20-$7.40: conference call 8AM EST
  • MRK: Q1 EPS of $0.85 beats by $0.11.Revenue of $9.42B (-8.2% Y/Y) beats by $430M: conference call 8AM EST
  • F: Q1 EPS of $0.23 misses by $0.03.Revenue of $33.9B in-line (flat Y/Y): guidance low volume in truck division had negative impact:  raises FY15 North American operating margin to 8.5%-9.5%: conference call 9AM EST
  • BSX: Q1 EPS of $0.21 in-line.Revenue of $1.77B (flat Y/Y) misses by $10M: guidance cuts FY15 revenue to $7.23B-$7.38B from $7.3B-$7.5B v. consensus $7.43B: conference call 8AM EST
  • PFE: Q1 EPS of $0.51 beats by $0.02.Revenue of $10.86B (-3.9% Y/Y) beats by $130M:guidance cuts FY15 adjusted EPS view to $1.95-$2.05 from $2.00-$2.10: strong dollar had negative impact:  conference call 10AM EST
  • COH: FQ3 EPS of $0.36 beats by $0.01.Revenue of $929.3M (-15.5% Y/Y) misses by $20.95M: conference call 8:30AM EST
  • BMY: Q1 EPS of $0.71 beats by $0.20.Revenue of $4.04B (+6.0% Y/Y) beats by $240M: guidance narrows FY15 adjusted EPS  to $1.55-$1.70 v. $1.72 consensus: conference call 11AM EST
  • UPS: Q1 EPS of $1.12 beats by $0.03.Revenue of $13.98B (+1.5% Y/Y) misses by $290M: guidance affirms FY15 EPS outlook of $5.05 to $5.30: conference call 8:30AM EST
  • VLO: Q1 EPS of $1.87 beats by $0.17.Revenue of $21.33B (-36.6% Y/Y) beats by $5.96B: conference call 11AM EST
  • CMI: Q1 EPS of $2.14 in-line.Revenue of $4.7B (+6.6% Y/Y) beats by $160M: conference call 10AM EST
  • PH: FQ3 EPS of $2.06 beats by $0.07.Revenue of $3.16B (-6.0% Y/Y) misses by $140M: guidance cuts FY15 adjusted EPS to $7.55-$7.75 from $7.90-$8.30: conference call 11AM EST
  • TMUS: conference call 10AM EST

EARNINGS RECAP FROM LAST NIGHT:

  • AAPL: FQ2 EPS of $2.33 beats by $0.17.Revenue of $58.01B (+27.1% Y/Y) beats by $1.95B: raises dividend by 11% to $.52: authorization to increase buyback by $50B to $140B: iPhone sales strong: iPad sales soft: App Store strong: China sales strong: FQ3 gross margin guidance 38.5%-39.5% v. last year of 39.4%: strong dollar had impact: guidance FQ3 revenue $46-48B,
  • TCS: FQ4 EPS of $0.24 misses by $0.07.Revenue of $224.3M (+3.5% Y/Y) misses by $9.34M: guidance cuts FY16 EPS to $0.30-$0.38 v. $0.56 consensus: strong dollar negatively impacted sales

SOME NOTABLE EARNINGS AFTER THE CLOSE TODAY:

AKAM, ARI, ARLP, AUY, BLDP, BMR, BOOM, BWLD, BXMT, CALX, CBL, CEB, CGI, CHE, CINF, CLF, CNL, CRUS, DDR, DHT, ESRX, GNW, GPRE, GPRO, HAWK, KBR, KRFT, LOGM, MWA, NANO, NATI, NCR, PNRA, SWI, TPX, TWTR, WDC, WYNN, X, XCO, XOOM

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • FCX: upgrade: equal weight to overweight: Morgan Stanley:$29
  • MELI: upgrade: market perform to outperform: Credit Suisse: $191

DOWNGRADES:

  • MPEL: downgrade: market perform to underperform: Morgan Stanley: $17

INITIATIONS:

  • DVN: initiated: outperform: Cowen: $80
  • PXD: initiated: outperform: Cowen $216
  • NBL: initiated: outperform: Cowen: $63
  • APC: initiated: outperform: Cowen: $119
  • TFM: initiated: underperform: RBC Capital: $37
  • AMAT: reinstates: buy: Goldman: $24

PRICE TARGET CHANGES:

  • AAPL: pt raised from $160 to $170: Brean Capital
  • AAPL: pt raised from $150 to $155: Susquehanna
  • AAPL: pt raised from $180 to $195: Cantor
  • AAPL: pt raised from $142 to $150: RBC Capital
  • AAPL: pt raised from $151 to $163: CLSA
  • DECK; pt cut from $76 to $70: Piper

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