Morning News

MAY 28. 2015

US futures teetering around the flat line even as most of the market around the world pull back with Shanghai down 6.5% overnight and  Greek worries resurface to put pressure on European stocks. The US$ hit a 12 year high against the yen.

NEWS:

  • GPRO: working on a drone and 360 degree camera
  • QCOM:AMBA: PacCrest speculates that QCOM could buy AMBA
  • ACT: SLXP: FDA approves IBS-D drugs
  • RALY: CA: CA Technologies to buy Rally for $19.50/share
  • AAPL: Swatch plans smartwatch launch this summer
  • AVGO: BRCM: Avago to acquire Broadcom for $38B in cash and stock

ON THE ECONOMIC CALENDAR:

  • 8:30AM: Weekly Jobless Claims
  • 9:45AM: Bloomberg Consumer Comfort Index
  • 10AM: Pending Home Sales
  • 10:30AM: EIA Natural Gas Inventory
  • 11AM: EIA Petroleum; Inventories
  • 11:30AM: $13B 2 Year FRN Auction
  • 1PM: $29B 7 Year Note Auction
  • 3PM: Farm Prices
  • 4:30PM: Money Supply and Fed Balance Sheet

EARNINGS:

  • JKS: Q1 EPS of $0.88 beats by $0.48.Revenue of $443.5M beats by $71.22M: conference call 8AM EST
  • TD: FQ2 EPS of C$1.14 beats by C$0.03.Revenue of C$7.76B  beats by C$500M: conference call 3PM EST
  • ANF:Q1 EPS of ex-items of ($0.53) misses by $0.19: Revenue of $709.42M misses by $21.49M: conference call 8:30AM EST
  • FLO: Q1 EPS of $0.29 misses by $0.01.Revenue of $1.15B misses by $10M: conference call 8:30AM EST
  • DANG: Q1 Non-GAAP Net Loss of $9.35MRevenue of $357.7M (+28.1% Y/Y) beats by $1.92M: conference call 8AM EST
  • SDRL:Q1 EPS of $0.86 beats by $0.23.Revenue of $1.24B misses by $20M: conference call 12PM EST
  • AVGO:FQ2 EPS of $2.13 beats by $0.12.Revenue of $1.61B misses by $30M
  • EXPR: Q1 EPS of $0.22 beats by $0.08.Revenue of $502.4M beats by $14.88M: strong guidance:  conference call 9AM EST
  • SIG: FQ1 EPS of $1.62 misses by $0.01.Revenue of $1.53B misses by $10M: conference call 8:30AM EST

RECAP OF SOME NOTABLE EARNINGS FROM LAST NIGHT:

  • HALO: Q1 EPS of -$0.12 beats by $0.01.Revenue of $18.7M misses by $0.7M: revenue up +56% y/y
  • SMTC:FQ1 EPS of $0.27 misses by $0.01.Revenue of $130.1M  misses by $2.41M: weak guidance
  • COST:FQ3 EPS of $1.17 beats by $0.01.Revenue of $26.1B misses by $530M: conference call 11AM EST 05/28
  • PANW:FQ3 EPS of $0.23 beats by $0.03.Revenue of $234.2M beats by $10.98M: strong guidance: acquires CirroSquare

NOTABLE EARNINGS AFTER THE CLOSE TODAY: 

AVGO, BLOX, DECK, EXA, GME, OVTI, PSUN, SPLK, ULTA, VEEV

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • WDC: upgrade: neutral to buy: Goldman: pt raised from $106 to $122
  • RL: upgrade: neutral to buy: Goldman: $154
  • JCI: upgrade; neutral to buy: UBS: pt raised from $51 to $59
  • TAP: upgrade: equal weight to overweight: Morgan Stanley: $83
  • GNW: upgrade: underweight to equal weight: Morgan Stanley: $8
  • GM: upgrade: underweight to equal weight: Morgan Stanley:
  • CMG: upgrade: hold to buy: Miller Tabak: pt raised from $715 to $725

DOWNGRADES:

  • KORS: downgrade: buy to neutral: Goldman: pt cut from $93 to $50
  • KORS: downgrade: outperform to market perform: Telsey Advisory: pt cut from $84 to $50
  • TFM: downgrade: overweight to neutral: JP Morgan: $34
  • FPO: downgrade: outperform to market perform: BMO Capital:
  • MTN: downgrade: buy to neutral: MKM Partners
  • DSW: downgrade: buy to neutral: Goldman: $37

INITIATIONS:

  • OXY: initiated: overweight: JP Morgan: $85
  • PIR: initiated: buy: Cantor: $17
  • SALE: initiated: buy: Topeka: $28

PRICE TARGET CHANGES:

  • PANW: pt raised from $175 to $180: RBC Capital
  • PANW: pt raised from $165 to $175: FBR Capital
  • PANW: pt raised from $165 to $185: Piper
  • CHS: pt cut from $20 to $19: RBC Capital
  • KORS: pt cut from $81 to $52: Janney
  • KORS: pt cut from $120 to $75: Topeka Capital

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