GOOG | AMZN | Morning News

google-amazon-moneOCTOBER 23, 2015

US futures spike higher as markets around the world rally on news that China has cut interest rates 25 basis points and positive earnings reports out of tech heavyweights AMZN and GOOG. Meanwhile, prospects of new stimulus measures from the ECB and China interest rate cuts  lifted crude futures, but a stronger US dollar and concerns over surplus are limiting gains.

NEWS:

  • ABBV: FDA warnings for a known risk/contra-indication for its HepC drug
  • SSYS: issues warning, guides Q3 revenue of $166M-168M and EPS of -$0.03 to $0.02, below a consensus of $184.6M and $0.08
  • DNKN: announces a $125M accelerated share buyback program
  • COP: wins drilling permit for project in Alaska’s petroleum reserve, reports chron
  • TSLA:Tesla CEO says could start China car production in two years, reports reuters
  • AAPL: Piper’s Munster reiterates that Apple is still his large cap pick into earnings

ON THE ECONOMIC CALENDAR:

  • 9:45AM: PMI Manufacturing Index Flash

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

  • AMZN:Q3 EPS of $0.17 beats by $0.30: revenue of $25.36B beats by $450M: revenue +23.0% y/y: guides in-line
  • T:Q3 EPS of $0.74 beats by $0.05: revenue of $39.1B misses by $1.32B: revenue +19.0% y/y: raises FY15 guidance to $2.68-2.74 vs consensus $2.64
  • GOOG: GOOGL:Q3 EPS of $7.35 beats by $0.14: revenue of $18.67B beats by $140M: revenue +13.0% y/y : announces authorization of repurchase of $5.1B of Class C shares in Q4
  • FTNT:Q3 EPS of $0.14 beats by $0.02: Revenue of $260.07M beats by $1.27M: revenue +34.5% y/y: soft guidance views Q4 EPS $0.18-0.19 vs. consensus $0.21
  • TRN:Q3 EPS of $1.31 beats by $0.15: revenue of $1.54B misses by $220M: revenue -1.3% y/y: raises 2015 EPS guidance to $4.65-4.90 from $4.45-4.75
  • JNPR:Q3 EPS of $0.57 beats by $0.04: revenue of $1.25B beats by $20M: revenue +10.6% y/y: guides in-line
  • MSFT:FQ1 EPS of $0.67 beats by $0.08: revenue of $21.7B beats by $670M: revenue -6.5% y/y: solid guidance
  • ATHN:Q3 EPS of $0.36 beats by $0.10: revenue of $236.07M beats by $3.1M: revenue +24.0% y/y: reaffirms guidance
  • MXIM:FQ1 EPS of $0.42 in-line: revenue of $562.51M misses by $1.75M: revenue -3.1% y/y: soft guidance,guiding for FQ2 revenue of $490M-$520M and EPS of $0.29-$0.35, below a consensus of $535.3M and $0.42
  • COF:Q3 EPS of $1.98 beats by $0.04: revenue of $5.9B beats by $10M: revenue +4.6% y/y
  • GIMO:Q3 EPS of $0.22 beats by $0.05: revenue of $56.7M beats by $2.02M: revenue +44.4% y/y: strong guidance, views Q4 EPS of $0.21-0.25 vs. consensus $0.20

NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING: 

  • WHR: Q3 EPS of $3.45 beats by $0.16: revenue of $5.28B misses by $130M: revenue +9.5% y/y
  • PG: FQ1 EPS of $0.98 beats by $0.03: revenue of $16.53B misses by $640M: revenue -11.9% y/y
  • RCL: Q3 EPS of $2.84 beats by $0.13: revenue of $2.52B misses by $20M: revenue +5.4% y/y
  • AAL: Q3 EPS of $2.77 beats by $0.05: revenue of $10.71B in-line: revenue -3.9% y/y: announces authorization for new $2B share repurchase program
  • LEA: Q3 EPS of $2.56 beats by $0.19: revenue of $4.33B misses by $90M: revenue +2.4% y/y: raises guidance
  • COG: Q3 EPS of -$0.01 misses by $0.01: revenue of $305.3M misses by $50.45M: revenue -40.4% y/y
  • TEN: Q3 EPS of $1.22 beats by $0.05: revenue of $2.03B misses by $20M: revenue -2.4% y/y
  • TRI:Q3 EPS of $0.52 beats by $0.03: revenue of $2.98B misses by $60M: revenue -4.2% y/y
  • DTE: Q3 EPS of $1.40 beats by $0.15: revenue of $2.6B misses by $80M

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • MCD: upgrade: equal weight to overweight; Piper Jaffray: pt raised from $95 to $130
  • ANTH: upgrade: market perform to outperform: Raymond James: $160
  • PGNX: upgrade: hold to buy: Jefferies: $9

DOWNGRADES:

  • FEYE: downgrade: outperform to neutral: Wedbush: pt cut from $41 to $32
  • CAB: downgrade: outperform to market perform: Raymond James
  • CAB: downgrade: outperform to market perform: Wells Fargo
  • MJN: downgrade: buy to neutral: Credit Suisse: $86
  • BEAV: downgrade: outperform to sector perform: RBC Capital: pt cut from $62 to $47
  • DNKN: downgrade: buy to neutral: Piper Jaffray:  yp cut from $60 to $42
  • P: downgrade: outperform to sector perform: RBC Capital: pt cut from $24 to $20
  • P: downgrade: outperform to perform: Oppenheimer
  • P: downgrade: overweight to neutral: Piper Jaffray
  • SKX: downgrade: buy to neutral: Buckingham
  • MT: downgrade: outperform to neutral: Credit Suisse

INITIATIONS:

  • SRPT: initiated: hold: Jefferies: $28
  • PTCT: initiated: hold: Jefferies: $26
  • RXDX: initiated: buy: Jefferies: $18
  • BLUE: initiated: buy: Jefferies: $108

PRICE TARGET CHANGES:

  • PHM: pt raised from $20 to $22: FBR Capital
  • JNPR: pt raised from $33 to $35: RBC Capital
  • GOOG: GOOGL: pt raised from $723 to $812: Piper Jaffray
  • GOOG: GOOGL: pt raised from $750 to $880: RBC Capital
  • GOOG: GOOGL: pt raised from $800 to $900: JP Morgan
  • GOOG: GOOGL: pt raised from $700 to $822: Oppenheimer
  • AMZN: pt raised from $670 to $745: Oppenheimer
  • AMZN: pt raised from $650 to $800: Piper Jaffray
  • AMZN: pt raised from $705 to $775: RBC Capital
  • SWK: pt raised from $105 to $110: Imperial Capital
  • MSFT: pt raised from $53 to $60: FBR Capital
  • MMM: pt cut from $141 to $138: RBC Capital
  • PTEN: pt cut from $20 to $18: Cowen
  • FTNT: pt cut from $52 to $44: FBR Capital
  • N: pt cut from $115 to $105: FBR Capital
  • N: pt cut from $100 to $90: Mizuho
  • APOL: pt cut from $14 to $8.50: Compass Point
  • COH: pt cut from $34 to $32: Mizuho
  • CY: pt cut from $21 to $18: Mizuho
  • KORS: pt cut from $45 to $42: Mizuho
  • SYNA: pt cut from $105 to $100: Mizuho

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