FB earnings | Morning News

APRIL 23, 2015

US futures pull back as markets around the world pause at these lofty levels with traders looking towards earnings from some heavy hitters today along with more housing data and weekly jobless claims. Overnight, domestic orders and output dragged Japan flash manufacturing PMI to 49.7. Oil slipped overnight as China flash manufacturing PMI edged to one year low and US stockpiles rose more than expected.

NEWS:

  • MON: The European Union is proposing new rules that would allow individual member states to ban the sale of GMO crops for non-scientific reasons
  • ARRS: announced, after the close yesterday, acquisition of rival Pace for $2.1B in cash and stock
  • STX: announces $2.5B share buyback
  • GWPH: announces FDA granted orphan status for ischemic encephalopathy treatment
  • MCP: REE: AVL: GMO: China removes export duties on rare earths and some metal products
  • AAPL: Apple Software Bug Lets Hackers Crash IPhones, reports bloomberg
  • FB: remains Top Pick at Credit Suisse: $106
  • MOBL: warns on Q1 revenue: CFO resigns

ON THE ECONOMIC CALENDAR:

  • 8:30AM: Weekly Jobless Claims: expectation 288K: ACTUAL+1K to 295K
  • 9:45AM: PMI Manufacturing Index Flash
  • 9:45AM: Bloomberg Consumer Comfort Index
  • 10AM: New Home Sales: expectation 504K
  • 10:30AM: EIA Natural Gas Inventory
  • 4:30PM: Fed Balance sheet and Money Supply

EARNINGS:

  • GM: Q1 EPS of $0.86 misses by $0.11.Revenue of $35.7B (-4.6% Y/Y) misses by $1.91B: operating performance negatively impacted by difficulties in South America and its tax rate: conference call 12PM EST
  • LUV:Q1 EPS of $0.66 beats by $0.01.Revenue of $4.41B (+5.8% Y/Y) in-line: expects to complete the repurchase of the remaining $80M shares: fuel cost savings of $450M
  • NVS: Q1 EPS of $1.33 beats by $0.14.Revenue of $11.94B misses by $960M:backs FY15 revenue guidance of growth in mid-single digit
  • CAT: Q1 EPS of $1.86 beats by $0.51.Revenue of $12.7B (-4.1% Y/Y) beats by $320M: guidance raises FY15 EPS outlook to $4.70-$5 from $4.60-$4.75: announces expectation to repurchase shares FY15: conference call 11AM EST
  • MMM: Q1 EPS of $1.85 misses by $0.08.Revenue of $7.57B (-3.3% Y/Y) misses by $270M: guidance lowers FY15 EPS to $7.80-$8.10 from $8.00-$8.30 v. consensus $8.14: conference call 9AM EST
  • DPZ: Q1 EPS of $0.81 beats by $0.01.Revenue of $502.03M (+10.6% Y/Y) beats by $12.87M:Global retail sales growth was up 10.4% Y/Y
  • ABBV: Q1 EPS of $0.94 beats by $0.09.Revenue of $5.04B (+10.5% Y/Y) beats by $60M: guidance raises FY15 adjusted EPS to $4.10-$4.30 from $4.05-$4.25 v. consensus $4.19: conference call 9AM EST
    UAL:Q1 EPS of $1.52 beats by $0.08.Revenue of $8.61B (-1.0% Y/Y) misses by $10M
  • RTN :Q1 EPS of $1.26 misses by $0.16.Revenue of $5.29B (-4.0% Y/Y) beats by $70M: guidance raises FY15 EPS: conference call
  • BTU:Q1 EPS of -$0.62 misses by $0.30.Revenue of $1.54B (-5.5% Y/Y) misses by $70M: guidance Q2 adjusted EPS (59c)-(49c) v. consensus (34c) : cuts 2015 US volume targets by 10M tons
  • FCX:Q1 EPS of -$0.06 beats by $0.01.Revenue of $4.15B (-16.7% Y/Y) beats by $90M
  • UNP:Q1 EPS of $1.30 misses by $0.07.Revenue of $5.61B (-0.5% Y/Y) misses by $100M: conference call 8:45AM EST
  • MJN: Q1 EPS of $1.09 beats by $0.04.Revenue of $1.09B (-1.8% Y/Y) misses by $40M
  • PEP: Q1 EPS of $0.83 beats by $0.04.Revenue of $12.22B (-3.2% Y/Y) beats by $40M: conference call 8AM EST
  • BAX: Q1 EPS of $1.00 beats by $0.12.Revenue of $3.76B (-2.3% Y/Y) beats by $60M: conference call 8:30AM EST
  • MO: Q1 EPS of $0.63 beats by $0.01.Revenue of $4.27B (+6.5% Y/Y) beats by $140M: domestic cigarettes shipment volume up 1.6%: conference call 9AM EST
  • DOW:Q1 EPS of $0.84 beats by $0.08.Revenue of $12.37B (-14.0% Y/Y) misses by $670M: conference call 9AM EST
  • PG:FQ3 EPS of $0.92 in-line.Revenue of $18.14B (-7.6% Y/Y) misses by $350M: negatively impacted by strong US dollar: conference call 8:30AM EST
  • AEP:Q1 EPS of $1.28 beats by $0.18.Revenue of $4.7B (+1.1% Y/Y) beats by $70M: conference call 9AM EST
  • JCI:Q2 EPS of $0.77 beats by $0.03.Revenue of $9.2B (-2.7% Y/Y) misses by $910M: guidance misses, FY15 EPS $3.30-$3.45 v. consensus $3.55: conference call 11AM EST
  • PHM:Q1 EPS of $0.15 misses by $0.05.Revenue of $1.13B (+0.9% Y/Y) misses by $110M: conference call 8:30AM EST
  • LLY:Q1 EPS of $0.87 beats by $0.10.Non-GAAP Revenue of $4.64B (-5.9% Y/Y) beats by $20M: guidance reaffirms FY15 adjusted EPS view of $3.10-$3.20 v. consensus $3.15
  • PII:Q1 EPS of $1.30 beats by $0.03.Revenue of $1.03B (+15.9% Y/Y) beats by $30M
  • SWK:Q1 EPS of $1.07 may not be comparable to consensus of $0.95.Revenue of $2.63B (+0.4% Y/Y) beats by $30M
  • DNKN:Q1 EPS of $0.40 beats by $0.05.Revenue of $185.91M (+8.1% Y/Y) beats by $5.23M: sss rise to +2.7% v. +1.2% last year: guidance raised FY15 EPS lifted to $1.87-$1.91 from $1.83-$1.87: conference call 8AM EST

RECAP OF SOME NOTABLE EARNINGS AFTER THE CLOSE YESTERDAY:

  • FB:Q1 EPS of $0.42 beats by $0.02.Revenue of $3.54B (+41.6% Y/Y) misses by $20M :ad revenue rose 46% Y/Y in Q1 to $3.54B, a slowdown from Q4’s 53% growth: FB revenue negatively impacted by the strong US dollar since more than half of their revenue is generated overseas
  • QCOM: FQ2 EPS of $1.40 beats by $0.07.Revenue of $6.89B (+8.2% Y/Y) beats by $60M: guidance came in below consensus for both Q3 and FY15: FQ3 revenue of $5.4B-$6.2B and EPS of $0.85-$1.00 v. consensus of $6.5B and $1.14 : guidance FY15 (ends Sep. ’15) revenue of $25B-$27B and EPS of $4.60-$5.00 v. consensus of $27.22B and $5.00
  • EBAY:Q1 EPS of $0.77 beats by $0.07.Revenue of $4.45B (+4.5% Y/Y) beats by $30M:total payment volume rose 18% to $61B in Q1
  • TXN: Q1 EPS of $0.61 misses by $0.01.Revenue of $3.15B (+5.7% Y/Y) misses by $50M: guidance below estimates: Q2 revenue of $3.12B-$3.38B and EPS of $0.60-$0.70, below a consensus of $3.43B and $0.73
  • LVS: Q1 EPS of $0.66 misses by $0.06.Revenue of $3.01B (-24.9% Y/Y) misses by $210M: 34% Y/Y drop in revenue at Sands China during Q1, much worse than expected
  • T:Q1 EPS of $0.63 beats by $0.01.Revenue of $32.57B (+0.3% Y/Y) misses by $270M:1.2M total net adds in wireless, which includes 441K postpaid and 684K connected cars: Churn drops to a best-ever 1.02%

SOME NOTABLE EARNINGS AFTER THE CLOSE TODAY:

ALGN, ALTR, AMZN, AWAY, BAS, BCR, BGS, BLDR, CB, CBI, COF,CVTI, CYN, DV, EFII, ELY, ETH, FET, FICO, FII, FR, FSL, GHL, GIMO, GOOG, HA, HBHC, HBI, JNPR, KLAC, KN, MSFT, MTSN, MXIM, MXWL, N, NEM, NTGR, P, PEB, PFG, QLIK, RGA, RHI, RMD, RSG, SBAC, SBUX, SFG, SHOR, SWN, SYA, SYNA, TRN, UIS, VCRA, VRSN, WIRE, WRE

SOME NOTABLE EARNINGS BEFORE THE OPENING TOMORROW:

AAN, AMX, AAL, B, BIIB, COG, DTE, IMGN, IMS, INFY, JMP, LEA, PB, SPG, SHOO, VTR, WLB, XRX

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • FFIV: upgrade: hold to buy: Needham: $140
  • TWC: upgrade: hold to buy: Jefferies: $193
  • STJ: upgrade: market perform to outperform: Credit Suisse: $84

DOWNGRADES:

  • QCOM: downgrade: outperform to neutral: BNP Paribas
  • TXN: downgrade: buy to neutral: BofA/Merrill: pt cut from $62 to $59
  • ANGI: downgrade: market perform to underperform: Northland: $5.50
  • FFIV: downgrade; buy to neutral: MKM Partners
  • RIG: downgrade: equal weight to underweight: Morgan Stanley: $19.50

INITIATIONS:

  • QURE: initiated: outperform: BMO Capital: $49
  • BLUE: initiated: outperform: BMO Capital: $160

PRICE TARGET CHANGES:

  • GWPH: pt raised from $120 to $135: Leerink
  • STJ: pt raised from $77 to $85: Leerink
  • EBAY: pt raised from $55 to $60: Wedbush
  • EBAY: pt raised from $60 to $68: Cantor
  • CAKE: pt raised from $50 to $58: Wunderlich
  • CAKE: pt raised from $60 to $65: Stifel
  • TXN: pt raised from $60 to $62: Cowen
  • FB: pt raised from $88 to $105: RBC Capital
  • FB: pt raised from $96 to $100: Brean Capital
  • FB: pt raised from $90 to $92: Cantor
  • FB: pt raised from $90 to $100: Deutsche Bank
  • FB: pt raised from $84 to $94: FBR
  • FB: pt raised from $85 to $100: JP Morgan
  • HLF: pt raised from $42 to $50: Canaccord
  • ARRS: pt raised from $34 to $44: Brean Capital
  • PTCT; pt raised from $135 to $155: Oppenheimer
  • FFIV: pt cut from $145 to $138: RBC Capital
  • MOBL: pt cut from $13 to $9: Nomura
  • QCOM: pt cut from $87 to $80: Canaccord

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