Earnings peak | Morning News

Bullish Price Action Awakens Retail TradersOCTOBER 21, 2015

US futures point to a higher opening as earnings seasons hits its peak and global markets trade mostly in the positive. China gave back early gains to close down 3.05%. Overnight, crude fell as investors await EIA Petroleum Inventories this morning at 10:30AM EST, and a meeting between OPEC members and non-member oil producing countries later today.

NEWS:

  • KERX: Baupost Group files 34.6% stake in Keryx
  • WDC: SNDK: Western Digital to buy Sandisk for $19B
  • MNST: McDonalds confirms testing Monster drinks in 20  locations
  • FB: Irish court orders investigation of Facebook data transfers to U.S, reports reuters
  • FB:Facebook Focuses on Emerging Markets for New Products. reports the wsj
  • GS: Reliance Capital to buy Goldman’s Indian fund unit for $37.5M, reports reuters
  • GOOG: GOOGL:Google Launches Shopping Insights To Help Stores Figure Out Potential Bestsellers, reports techcrunch
  • IMAX:Early ticket sales for December’s Star Wars: The Force Awakens has broken IMAX records 
  • MDT:Medtronic Receives CE Mark for New Single-Chamber ICDs That Can Detect Atrial Fibrillation, reports nasdaq
  • SNTA: announces the termination the Phase 3 GALAXY-2 trial of ganetespib and docetaxel, for ineffectiveness in treating some lung cancers
  • LRCX: KLAC:Lam Research to acquire KLA-Tencor in a $10.6B deal ($67.02/share)

ON THE ECONOMIC CALENDAR:

  • 7AM: MBA Mortgage Applications
  • 10:30AM: EIA Petroleum Inventories

NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

  • ILMN: Q3 EPS of $0.80 beats by $0.01: revenue of $550.3M misses by $5.77M: revenue +14.6% y/y: guides below consensus
  • ISRG:Q3 EPS of $5.24 beats by $1.01: revenue of $590M beats by $9.63M: revenue +10.5% y/y
  • VMW:Q3 EPS of $1.02 beats by $0.02: revenue of $1.67B beats by $10M: revenue +9.9% y/y: raises guidance FY15 EPS view to $4.04-$4.08 from $3.97-$4.03
  • IRBT:Q3 EPS of $0.42 beats by $0.19: revenue of $143.6M misses by $1.7M: revenue +0.1% y/y: soft guidance
  • PKG: Q3 EPS of $1.26 misses by $0.02: revenue of $1.47B misses by $30M: revenue -3.3%  y/y: guides Q4 EPS $1.03 vs. consensus $1.17
  • CREE: FQ1 EPS of $0.21 beats by $0.01: revenue of $425.5M beats by $6.83M: revenue -0.5% y/y: guides in-line
  • CB: Q3 EPS of $2.60 beats by $0.60: revenue of $3.17B misses by $20M
  • YHOO: Q3 EPS of $0.15 misses by $0.02: revenue of $1B misses by $260M: revenue -8.3% y/y: guides below consensus
  • WERN:Q3 EPS of $0.44 beats by $0.01: revenue of $534.5M misses by $14.81M: revenue -3.2% y/y
  • IBKR:Q3 EPS of $0.35 beats by $0.03: revenue of $359M misses by $8.12M: revenue +109.9% y/y

NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

  • STJ:Q3 EPS of $0.97 in-line: revenue of $1.34B misses by $10M: revenue-2.2% y/y
  • BA:Q3 EPS of $2.52 beats by $0.30: revenue of $25.85B beats by $1.1B: revenue +8.7% y/y: raises guidance 
  • GM:Q3 EPS of $1.50 beats by $0.31: revenue of $38.8B beats by $250M: revenue -1.2% y/y
  • ABT:Q3 EPS of $0.54 beats by $0.01: revenue of $5.15B beats by $10M: revenue +1.0% y/y
  • SNDK: Q3 EPS of $1.09 beats by $0.29: revenue of $1.45B beats by $50M: revenue -17.1% y/y
  • KO:Q3 EPS of $0.51 beats by $0.01: revenue of $11.43B misses by $110M: revenue -4.6% y/y: teams up with 3 bottlers to expand local distribution
  • NLSN:Q3 EPS of $0.69 in-line: revenue of $1.53B misses by $10M: revenue -2.5% y/y
  • TUP:Q3 EPS of $0.79 beats by $0.08: revenue of $521M  beats by $5.29M: revenue -11.5% y/y: weak guidance
  • TMO:Q3 EPS of $1.80 beats by $0.01: revenue of $4.12B beats by $20M: revenue -1.2% y/y: raises guidance
  • PII:Q3 EPS of $2.30 beats by $0.02: revenue of $1.46B beats by $30M: revenue +12.3% y/y
  • OC:Q3 EPS of $0.96 beats by $0.28: revenue of $1.46B beats by $40M: revenue +5.8% y/y
  • BIIB:Q3 EPS of $4.48 beats by $0.68: revenue of $2.78B beats by $130M: revenue +10.8% y/y: announces 11% cut in workforce: raises guidance
  • ABB:Q3 EPS of $0.26 misses by $0.02: revenue of $8.52B misses by $400M: revenue -13.2% y/y
  • BKU:Q3 EPS of $0.50 beats by $0.01: revenue of $220.12M beats by $8.7M: revenue +17.3% y/y
  • AOS:Q3 EPS of $0.82 beats by $0.03: revenue of $625.1M misses by $24.87M: revenue +7.5% y/y: raises guidance FY15 EPS to $3.08-$3.12 from $3.04-$3.09 vs. consensus $3.07
  • LRCX:FQ1 EPS of $1.82 beats by $0.11: revenue of $1.6B in-line: revenue +39.1% y/y
  • KMB:Q3 EPS of $1.51 beats by $0.02: revenue of $4.72B beats by $40M:revenue -6.7% y/y
  • SLGN: Q3 EPS of $1.26 misses by $0.14: revenue of $1.2B in-line: revenue -2.4% y/y: cuts guidance FY15 adjusted EPS to $2.88-$2.98 from $3.10-$3.30
  • ARMH:Q3 EPS of $0.35 misses by $0.01: revenue of $375.5M beats by $2.68M: revenue +17.3% y/y

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

  •  AMP, AWH, AXP, BDN, CA, CCI, CLB, CTXS, CYS, DLB, DTLK, EBAY, EEFT, EFX, ELY, FTK, GGG, HNI, IBKC, KALU, KMI, KNX, LOGI, LVS, MLNX, MSA, NOW, PFPT, PLCM, RHI, RJF, SLG, SLM, SNDK, SON, SXT, TSCO, TXN, TYL, UIS, URI, VMI

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • COH: upgrade: underweight to equal weight: Morgan Stanley: $27
  • WM: upgrade: hold to buy: Stifel: $60
  • DG: upgrade: underperform to neutral: BofA/Merrill: pt raised from 460 to $73
  • EDU: upgrade: hold to buy: Brean Capital: $32
  • EDU: upgrade: neutral to buy: Jefferies: $32
  • EXAS: upgrade: equal weight to overweight: Stephens: pt cut from $14 to $12

DOWNGRADES:

  • VMW: downgrade: buy to neutral: Nomura: $70
  • VMW: downgrade: buy to neutral: Macquarie: $70
  • VMW: downgrade: buy to neutral: Sterne Agee: $75
  • WNR: downgrade: buy to neutral: Citi: pt cut from $54 to $45
  • YHOO: downgrade: buy to neutral: Mizuho: pt cut from $40 to $37
  • YHOO: downgrade: buy to neutral: B Riley: $35
  • TWTR: downgrade: hold to sell: Morgan Stanley: $24
  • CVRR: downgrade: buy to neutral: Citi: pt cut from $22.50 to $21
  • RAI: downgrade: outperform to underperform: CLSA: pt raised from $46 to $48
  • EAT: downgrade: outperform to market perform: Raymond James
  • ATI: downgrade: buy to hold: Deutsche Bank
  • MU: downgrade: neutral to underperform: BofA/Merrill
  • DG: downgrade: buy to neutral: BofA/Merrill
  • WWW: downgrade: neutral to underperform: Sterne Agee: $16
  • HOG: downgrade: overweight to neutral: JP Morgan: $50

INITIATIONS:

  • GPOR: initiated: buy: Canaccord: $48
  • DPLO: initiated: buy: UBS: $35

PRICE TARGET CHANGES:

  • YUM: pt raised from $80 to $87: Mizuho
  • TRV: pt raised from $115 to $120: RBC Capital
  • CP: pt raised from $202 to $213: RBC Capital
  • GPN: pt raised from $135 to $150: RBC Capital
  • YHOO: pt cut from $47 to $42: RBC Capital
  • YHOO: pt cut from $56 to $49: Oppenheimer
  • ILMN: pt cut from $250 to $205: UBS
  • WERN: pt cut from $37 to $34: RBC Capital
  • MOS: pt cut from $53 to $45: RBC Capital
  • AGU: pt cut from $115 to $110: RBC Capital
  • AMX: pt cut from $18 to $16.50: RBC Capital
  • CP: pt cut from $177 to $173: Cowen
  • CF: pt cut from $63 to $57: RBC Capital
  • CMG: pt cut from $800 to $740: Telsey Advisory
  • CMG: pt cut from $810 to $760: Maxim Group
  • VMW: pt cut from $90to $73: FBR Capital
  • WWW: pt cut from $34 to $28: Stifel
  • HOG: pt cut from $72 to $58: Stifel
  • DFS: pt cut from $69 to $68: Stifel
  • EAT: pt cut from $58 to $52: RBC Capital
  • EAT: pt cut from $64 to $60: Maxim Group
  • ARMH: pt cut from $61 to $52: Northland Capital

 

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