BABA earnings |Morning News

BullVsBearAUGUST 12, 2015

US futures on pace for a spike down at this 7AM hour adding to yesterday’s selling pressure. The yuan continued it’s descent, falling sharply for a second day pulling world stocks, Asian currencies and government bonds yield into its vortex. Overnight, crude erased it’s losses and moved higher after IEA announced that demand for the commodity was increasing at the fastest pace in 5 years, although the glut is seen as persisting into 2016.

NEWS:

  • OIL: USO: UCO: OIH: The IEA sees oil glut persisting in 2016 despite soaring demand, reports reuters
  • APP: issues warning to shareholders, needs to raise money, reports wsj
  • GSK: announces plant closing due to Legionnaire’s bacteria discovery
  • FB:  brings auto-play video ads to apps in its mobile ad network, reports techcrunch
  • BRK.B: BRK.A: S&P placed the company on review
  • CF: CHS: CF Industries and CHS Announce Agreement to Form Strategic Venture, reports market watch
  • MCD: McDonald’s downsizing for the first time in 45 years, announces Plans to Shrink by 59 Locations This Year in US, reports Bloomberg

ON THE ECONOMIC CALENDAR:

  • 7AM: MBA Mortgage Applications
  • 8:30 AM: Fed’s Dudley to speak
  • 10AM: Atlanta Fed’s Business Inflation Expectations
  • 10AM: Job Openings
  • 10AM: Labor Turnover Survey
  • 10:30AM: EIA Petroleum Inventories
  • 1PM: $24B, 10 Year Note Auction
  • 2PM: Treasury Budget

RECAP OF SOME NOBALE EARNINGS LAST NIGHT AFTER THE CLOSE:

  • SLW: Q2 EPS of $0.13 in-line: revenue of $164.4M misses by $2.26M: reports record quarter for production, sales volume
  • CREE: FQ4 EPS of -$0.19 misses by $0.15: revenue of $382.2M beats by $3.28M: guides in-line
  • CYBR: Q2 EPS of $0.09 beats by $0.03: revenue of $36.37M beats by $3.99M: revenue +70.4% Y/Y: raises guidance above expectations: announces acquisition of Cybertinel, an Israeli threat detection software company
  • FOSL: Q2 EPS of $1.12 beats by $0.30: revenue of $740M misses by $10.35M: lowers guidance
  • MYGN: FQ4 EPS of $0.41 misses by $0.01: revenue of $189.9M beats by $2.13M: guides below consensus

EARNINGS BEFORE THE OPENING THIS MORNING:

  • VWR: Q2 EPS of $0.34 beats by $0.01: revenue of $1.08B beats by $10M
  • MRKT: Q2 EPS of $0.36 beats by $0.01: revenue of $273.1M beats by $3.16M
  • W: Q2 EPS of -$0.15 beats by $0.14: revenue of $491.75M beats by $53.26M: revenue +66.4% Y/Y
  • BABA: FQ1 EPS of $0.59 beats by $0.01: revenue of $3.27B misses by $120M: announces authorization of $4B share buyback over 2 years

SOME NOTABLE EARNINGS AFTER THE CLOSE TODAY:

  • AMPH, BGG, CACI, CPA, CSCO, ECR, FLO, JUNO, MIDD, NTES, NWS, PODD, RNDY, SEDG, TGB, XNET

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • AMID: upgrade: equal weight to overweight: Barclays: $20
  • ZBRA: upgrade: neutral to outperform: Baird: pt cut from $125 to $103
  • KEY: upgrade: underperform to market perform: Keefe Bruyette: $15
  • TEN: upgrade: sell to neutral: Goldman: $60
  • JCI: upgrade: neutral to buy: Goldman
  • CSC: upgrade: neutral to buy: SunTrust: $78
  • NLY: upgrade: neutral to buy: Nomura
  • GOOG: GOOGL: upgrade: equal weight to overweight: Morgan Stanley
  • TOL: upgrade: neutral to buy: UBS: pt raised from $35 to $48
  • DHI: upgrade: neutral to buy: UBS: pt raised from $26 to $38

DOWNGRADES:

  • MTH: downgrade: neutral to sell: UBS
  • NTLS: downgrade; market perform to underperform: Raymond James
  • LB: downgrade: outperform to market perform: BMO Capital
  • UN: UL: downgrade: neutral to sell: Goldman

INITIATIONS:

  • NWL: initiated: buy: UBS: $50
  • ASPN: initiated: buy: Global Hunter: $13

PRICE TARGET CHANGES:

  • IGT: pt raised from $20 to $22: Telsey Advisory Group
  • ABMD: pt raised from $103 to $128: Stephens
  • SYK: pt raised from $115 to $123: Stifel
  • TEX: pt raised from $28 to $33: Stifel
  • AER: pt raised from $60 to $68: RBC Capital
  • FOSL: pt cut from $70 to $66: Telsey Advisory Group
  • JASO: pt cut from $13 to $10: RBC Capital
  • VIPS: pt cut from $30 to $25: Brean Capital
  • VIPS: pt cut from $35 to $31: Summit Research
  • SYMC: pt cut from $26 to $24: RBC Capital
  • RJET: pt cut from $8 to $5: Cowen
  • MAT: pt cut from $26 to $22: Piper Jaffray

About the Author

Leave a Reply 0 comments

Leave a Reply: