LNKD | Morning News

MAY 1, 2015

US futures push into positive territory overnight on light volume as the US$ hits a 2 month low against the euro, and  as traders wait for key economic data due out this morning. With most European markets closed for the holiday, a look at overseas markets finds Asia mostly lower after China’s manufacturing and services sectors showed signs of anemic growth last month, fueling fears about a downhill slide of the world’s second largest economy. Oil futures slipped overnight, coming off their best monthly gain in nearly six years, but prices for the commodity stay on track for a weekly gain.

NEWS:

  • NFLX: FB: MSFT : The European Commission looks to widen probe against U.S. tech companies.The “digital single market” probe could also bring in stricter rules to video services companies and messaging apps like WhatsApp and Skype, reports the ft
  • TSLA: introduced “Tesla Energy” last night which includes household, business and utilities batteries
  • AMZN: rolls out flower delivery service in NYC
  • AAPL: UBS cuts iWatch estimates
  • AAPL: Xiaomi’s Mi Note Could Pose Challenge to Apple, Samsung, reports recode
  • MDCO: announces FDA approval for Raplixa and IonSys
  • BAC: files $109.9M mixed securities shelf
  • BA: FAA orders fix for potential power loss in Boeing 787 Dreamliners

ON THE ECONOMIC CALENDAR:

  • AUTO SALES: various times
  • 9:45AM: PMI Manufacturing Index
  • 10AM: ISM Manufacturing Index: expectation 52.2%
  • 10AM: Construction Spending: expectation +0.5%
  • 10AM: Reuters/UofM Consumer Sentiment: expectation 96.0

SOME NOTABLE EARNINGS THIS MORNING:

  • WY:Q1 EPS of $0.19 misses by $0.06.Revenue of $1.72B (-1.1% Y/Y) misses by $50M: warns on Q2 EPS: conference call 10AM EST
  • CVS:Q1 EPS of $1.14 beats by $0.06.Revenue of $36.33M (-99.9% Y/Y) misses by $35.89B: conference call 8:30AM EST

RECAP OF SOME NOTABLE EARNINGS FROM LAST NIGHT:

  • LNKD:Q1 EPS of $0.57 beats by $0.01.Revenue of $637.7M (+34.8% Y/Y) beats by $1.22M: weak guidance,Q2 revenue of $670M-$675M and EPS of $0.28, below a consensus of $717.5M and $0.74, FY15 revenue of $2.9B and EPS of $1.90, below a consensus of $2.98B and $3.03
  • GILD: Q1 EPS of $2.94 beats by $0.62.Revenue of $7.6B (+52.0% Y/Y) beats by $680M: raises FY15 guidance for net product sales to $28B – 29B from $26B – 27B
  • FEYE: Q1 EPS of -$0.48 beats by $0.03.Revenue of $125.37M (+69.5% Y/Y) beats by $4.81M: strong guidance, Q2 and FY15 revenue guidance  $140M-$144M and $615M-$635M respectively v. consensus $139.7M and $619.8M
  • SPWR :Q1 EPS of $0.13 beats by $0.04.Revenue of $430.6M (-37.0% Y/Y) misses by $21.96 : declines to provide 2015 guidance

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • CMG: upgrade: market perform to outperform: BMO Capital: pt raised from $693 to $760
  • MOS: upgrade: market perform to outperform: RBC Capital: $55
  • WU: upgrade: market perform to outperform: Wells Fargo: pt range raised from $15-27 to $27-29
  • UHC: upgrade: market perform to outperform: Keefe Bruyette: $24
  • CSH: upgrade: underperform to market perform: JMP Securities: $32

DOWNGRADES:

  • BIDU: downgrade: buy to hold: Jefferies

INITIATIONS:

  • MKTO: initiated: outperform: Bernstein: $40
  • DATA: initiated: buy: SunTrust: $140
  • ALK: initiated: neutral: Credit Suisse: $76
  • KND: reinstated: overweight: Barclays: $36

PRICE TARGET CHANGES:

  • LNKD: pt cut from $208 to $172: Brean Capital
  • LNKD: pt cut from $280 to $245: Cantor
  • LNKD: pt cut from $295 to $250: KeyBanc
  • ALKS: pt cut from $65 to $60: UBS
  • PCRX: pt cut from $121 to $92: Brean
  • FEYE: pt range raised from $47-49 to $50-53: Wells Fargo
  • EXPE: pt raised from $95 to $110: Cantor
  • YUM: pt raised from $85 to $100: UBS
  • BMRN: pt raised from $133 to $135: Citigroup
  • BMRN: pt raised from $120 to $125: JP Morgan

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