Earnings in Focus | Morning News

APRIL 21, 2015

US futures making another move to the upside at this hour following mostly green arrows around the world as overseas markets rally on news that  China has upped its stimulus. Oil weak after Iran’s oil minister said that Iran hopes to boost crude exports by as much as 1M bpd when  it finalizes a nuclear agreement and ahead of oil inventories report from the API  this afternoon.

NEWS:

  • ASMC: announces that the US  Navy plans to sole source American Superconductor’s  high-temperature superconductor  equipment
  • TSN: PPC: SAFM: HRL: Bird flu confirmed on large Iowa farm, reports wsj
  • GILD: VRTX: Bernstein analyst sites reasons why GILD should buy VRTX now, reports thestreet
  • BIIB: reports efficacy data on ATTAIN study
  • BIIB: MS patients treated with Novartis’ Gilenya perform well two years out (rival drug to BIIB’s Avonex)
    AAPL: Apple granted patents on Apple Watch Sport Band, Classic Buckle and Link Bracelet designs, reports appleinsider
  • NFLX: Morgan Stanley out positive on Netflix long term: reaffirms overweight and pt of $775
  • DATA: Pacific Crest out positive on Tableau long term: reaffirms outperform and pt of $110
  • TWTR: Twitter to start selling sports tickets, reports recode.net
  • JDSU:JDSU Signs Exclusive Distribution Agreement With Laser 2000, reports marketwired
  • TEVA: MYL: Teva could make the offer to Mylan today, reports Bloomberg

ON THE ECONOMIC CALENDAR:

  • 8:55AM: Redbook Chain Store Sales

EARNINGS:

  • EDU:Q1 EPS of $0.29 beats by $0.07.Revenue of $287.7M (+13.1% Y/Y) beats by $2.95M : guidance Q4 revenue $322M-$333.5M, consensus $323.49M: conference call 8AM EST
  • VZ: Q1 EPS of $1.02 beats by $0.07.Revenue of $31.98B (+3.8% Y/Y) misses by $290M: added 133K net new FiOS Internet, 90K net new FiOS Video connections: backs FY15 estimates: conference call 8:30AM EST
  • KMB: Q1 EPS of $1.42 beats by $0.09.Revenue of $4.69B (-4.1% Y/Y) beats by $80M: guidance FY15 EPS $5.60-$5.80, consensus $5.64: foreign currency had an impact on total revenue: conference call 10AM EST
  • UA: Q1 EPS of $0.05 in-line.Revenue of $804.94M (+25.5% Y/Y) beats by $2.41M: guidance FY15 operating income growth view to 13%-15%: guidance revenue below consensus: Inventory +22.38% to $577.95M: conference call 8:30AM EST
  • LMT:Q1 EPS of $2.74 beats by $0.24.Revenue of $10.11B (-5.1% Y/Y) misses by $130M: guidance raises FY15 EPS to $10.85-$11.15 from $10.80-$11.10
  • MTG: Q1 EPS of $0.26 beats by $0.05.Revenue of $270.2M (+14.9% Y/Y) beats by $26.74M: conference call 10AM EST
  • HOG: Q1 EPS of $1.27 beats by $0.02.Revenue of $1.51B (-3.8% Y/Y) misses by $80M: expectation 2015 motorcycle shipments to grow 2%-4%; Q1 new motorcycle sales -1.3%: conference call 9AM EST
  • MLNX: Q1 EPS of $0.60 beats by $0.12.Revenue of $146.7M (+48.6% Y/Y) beats by $4.04M
  • TRV: Q1 EPS of $2.53 misses by $0.01.Revenue of $5.9B (+0.5% Y/Y) misses by $140M: weather played a factor: quarterly dividend raised 11% to $0.61 per share, and authorization of $5B of buybacks is announced: conference call 9AM EST
  • DD: Q1 EPS of $1.34 beats by $0.02.Revenue of $9.17B (-9.5% Y/Y) misses by $250M: raises quarterly dividend  4.3%: guidance FY15 EPS at low end of $4.00-$4.20, consensus $4.05: conference call 9AM EST
  • CLS: Q1 EPS of $0.19 misses by $0.03.Revenue of $1.29B (-1.5% Y/Y) misses by $40M: announces authorization to repurchase subordinate voting shares: guidance Q2 EPS 20c-26c v. consensus 26c: conference call 8AM EST
  • ITW:Q1 EPS of $1.21 beats by $0.03.Revenue of $3.34B (-6.4% Y/Y) misses by $130M: guidance lower FY15 EPS view by 15c to $5.00-$5.20 v. consensus $5.21: Q2 EPS $1.22-$1.30 v. consensus $1.36: conference call 10AM EST
  • EAT: FQ3 EPS of $0.94 in-line.Revenue of $784.22M (+3.3% Y/Y) misses by $6.91M: food commodity inflation was offset by menu price hikes: conference call 10AM EST
  • MAN: Q1 EPS of $0.83 beats by $0.04.Revenue of $4.54B (-7.3% Y/Y) beats by $70M: stronger dollar had an impact:
  • ATI: Q4 EPS of $0.09 misses by $0.02.Revenue of $1.13B (+14.5% Y/Y) beats by $50M
  • ACI: Q1 EPS of -$0.54 misses by $0.06.Revenue of $677.01M (-8.0% Y/Y) misses by $42.4M
  • DOV: Q1 EPS of $0.72 in-line.Revenue of $1.72B (-4.4% Y/Y) in-line
  • FITB: Q1 EPS of $0.37 in-line.Revenue of $1.51B (+3.4% Y/Y) beats by $60M: conference call 9AM EST
  • UTX: Q1 EPS of $1.51 beats by $0.06.Revenue of $14.54B (-1.4% Y/Y) misses by $350M
  • ARMH: Q1 EPS of £0.07 in-line.Revenue of $348.2M (+14.1% Y/Y) beats by $6.48M
  • PCAR: Q1 EPS of $1.06 beats by $0.05.Revenue of $4.55B (+11.2% Y/Y) misses by $130M

RECAP OF A COUPLE OF NOTABLE EARNINGS FROM LAST NIGHT:

  • IBM: Q1 EPS of $2.91 beats by $0.09.Revenue of $19.59B (-12.9% Y/Y) misses by $140M: revenue misses for the 12th consecutive quarter and EPS: while the results were lackluster, cloud computing was the bright spot which was mostly positive: FY15 EPS guidance of $15.75-$16.50 v. $15.89 consensus
  • FTNT: Q1 EPS of $0.08 beats by $0.02.Revenue of $212.9M (+26.0% Y/Y) beats by $7.69M: strong earnings and guides higher: Q2 revenue of $224M-$228M (+23% Y/Y at midpoint) and full-year revenue of $935M-$940M (+22% at midpoint), above consensus estimates of $222.1M and $926.1M

SOME NOTABLE EARNINGS AFTER TODAY’S CLOSE:

ACE, ADTN, AMGN, BRCM, CAMP, CMG, CREE, DFS, DLB, EWBC, FTI, HTS, IBKR, ILMN, INFN, IRBT, ISRG, NBR, SYK, URI, VASC, VMW, YHOO, YUM

SOME NOTABLE EARNINGS BEFORE THE OPENING TOMORROW:

ABT, ANGI, AN, BK, BA, KO, DHI, EMC, EVR, HBAN, MCD, NLSN, NS, OC, R, SONS, STJ, TUP, WAB

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • WUBA: upgrade; market perform to outperform: Credit Suisse: $90
  • ALGN: upgrade: equal weight to overweight: Morgan Stanley: $79
  • BMY: upgrades: equal weight to overweight: Morgan Stanley: pt raised from $60 to $80

DOWNGRADES:

  • ES: downgrade: buy to neutral: UBS: $53
  • SHAK: downgrade: buy to hold: Stifel: NOTE: pt raised from $50 to $55
  • PXD: downgrade: neutral to sell: SocGen: $160

INITIATIONS:

  • CYTR: initiated: outperform: FBR: $8
  • BCRX: initiated: outperform: FBR: $18
  • SCTY: initiated: outperform: Northland: $65
  • BBBY: initiated: buy: Cantor: $83
  • COH: initiated: sell: Cantor: $32
  • PANW: coverage resumed: outperform: Imperial Capital: $170

PRICE TARGET CHANGES:

  • INCY: pt raised from $80 to $121: Piper
  • LRCX: pt raised from $88 to $95: JP Morgan
  • CHKP: pt raised from $92 to $98: Citigroup
  • CHKP: pt raised from $83 to $91: RBC
  • HAL: pt raised from $48 to $56: RBC
  • HAL: pt raised from $50 to $60: UBS
  • FTNT: pt raised from $34 to $40: RBC
  • FTNT: pt raised from $37 to $43: UBS
  • HAS: pt raised from $66 to $79: Piper

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