Earnings | Oil | Morning News

APRIL 22, 2015

US futures taking a hit this morning, following European markets into the red, failing to extend the Asian markets rally after Greek debt worries, yet again, reared its shaky head and earnings come in lackluster. Crude oil slipping on data that showed US inventories rose more than expected and the pullback of Saudi strikes against Yemen.  EIA Petroleum Inventories is set to be released at 10:30AM EST and could set a direction for oil today.

NEWS:

  • SNE: raised its forecast ahead of its April 30th earnings report (operating income of ¥68B, up from ¥20B, and  versus ¥26.5B last year)
  • V: MA: China announced it will open up its market for clearing domestic bank card transactions, a move that should allow foreign players such as Visa Inc and MasterCard Inc direct access, reports thestar
  • Fed dove Rosengren says the Fed may need to delay rate hikes
  • GOOG: GOOGL: phone service to launch as soon as today, reports wsj
  • VZ:NBC Universal and Fox join ESPN in objecting to slimmer FiOS pay-TV packages, reports the wsj
  • AMZN: enters online travel, reports the wsj
  • BABA:Alibaba Group Establishes Collaborative Relationships With BMW MINI and Jaguar Land Rover, reports business wire
  • ARIA: announces the issuance of its first US patent on brigatinib, it’s investigational ALK inhibitor, reports business wire
  • TSLA: Deutsche Bank out positive on Tesla’s energy storage capacity
  • PKT: to be taken private for $11.50/share
  • UA: Canaccord out positive on Under Armour (also, analysts from Telsey and Citigroup raised pt on the stock)
  • BHP raises FY15 iron ore production guidance, reports reuters
  • ONVO: announces multi year collaboration with Merck to develop custom tissue models
  • GBSN: clears regulatory hurdle for molecular diagnostic test for Group B Streptococcus
  • INTU: reports robust Turbo Tax sales and raises FY15 guidance: earnings to be reported on 5/19

ON THE ECONOMIC CALENDAR:

  • 7AM: MBA Mortgage Applications: ACTUAL Composite Index: +2.3% v. -2.3% last week
  • 9AM: FHFA House Price Index: ACTUAL +0.7% v. consensus +0.6%
  • 10AM: Existing Home Sales
  • 10:30AM: EIA Petroleum Inventories

EARNINGS:

  • MCD: Q1 EPS of $0.84 may not be comparable to consensus of $1.06.Revenue of $5.96B (-11.0% Y/Y) in-line global sss -2.3% v. expected -2%: US sss -2.6% v. expected -2%: turnaround plan will be detailed on May 4th
  • KO: Q1 EPS of $0.48 beats by $0.06.Revenue of $10.7B (+1.1% Y/Y) beats by $40M: unit case volume +1%: conference call 9;30AM EST
  • BA: Q1 EPS of $1.97 beats by $0.16.Revenue of $22.15B (+8.3% Y/Y) misses by $340M: commercial airline revenue +21%: conference call 10:30AM EST
  • ANGI:Q1 EPS of $0.07 beats by $0.07.Revenue of $83.54M (+15.0% Y/Y) misses by $1.15M; guidance FY15 revenue $357M-$363M, consensus $359.62M
  • HBAN:Q1 EPS of $0.19 in-line.Revenue of $706.9M (+2.2% Y/Y) misses by $5.72M: conference call 10AM EST
  • DHI:FQ2 EPS of $0.40 beats by $0.02.Revenue of $2.34B (+39.3% Y/Y) beats by $130M: strong start to the spring selling season: conference call 10AM EST
  • STJ: Q1 EPS of $0.93 beats by $0.02.Revenue of $1.35B (-0.7% Y/Y) beats by $30M: guidance Q2 adjusted EPS 99c-$1.01 v. consensus 99c: conference call 8AM EST
  • AN:Q1 EPS of $0.97 beats by $0.08.Revenue of $4.94B (+13.3% Y/Y) beats by $100M: strong growth across all sectors:  conference call 11AM EST
  • SONS: Q1 EPS of -$0.27 beats by $0.04.Revenue of $50.14M (-29.1% Y/Y) beats by $1.81M: guidance, sees FY15 EPS (10c)-(15c), consensus (31c). Sees FY15 revenue $245M-$250M, consensus $247.49M
  • TUP: Q1 EPS of $1.02 beats by $0.04.Revenue of $581.8M (-12.3% Y/Y) beats by $3.25M: weaker bolivar to impact FY15: conference call 8:30AM EST

A COUPLE OF EARNINGS RECAPS FROM LAST NIGHT:

  • AMGN:Q1 EPS of $2.48 beats by $0.38.Revenue of $5.03B (+11.3% Y/Y) beats by $120M: US product growth has accelerated the last two quarters: raises FY15 guidance
  • CMG:Q1 EPS of $3.88 beats by $0.22.Revenue of $1.09B (+20.6% Y/Y) misses by $20M: same store sales came in light at +10.4% reading with analysts expecting +11.6%: higher menu prices weighed on sales: guidance FY15 low to mid-single digits: conference call hinted at another menu price increase
  • YUM: Q1 EPS of $0.80 beats by $0.08.Revenue of $2.62B (-3.7% Y/Y) in-line: China sss came in stronger than expected: China recovering: 294 stores added
  • YHOO: Q1 EPS of $0.15 misses by $0.03.Revenue of $1.04B (-4.6% Y/Y) misses by $20M: Q2 guidance light: exploring the sale of Yahoo Japan
  • ILMN:Q1 EPS of $0.91 beats by $0.19.Revenue of $539M (+28.1% Y/Y) beats by $14.55M: raises FY15 guidance

SOME NOTABLE EARNINGS AFTER THE BELL TODAY:

AF, AFOP, AHL, ALGT, AMP, AWH, BDN, CAKE, CCI, CLB, CLGX, CLW, CNMD, CTXS, CUB, CVA, CYS, EBAY, EFX, FB, FFIV, FOE, FTK, GGG, HNI, IBKC, IGT, LHO, LOGI, LVS, MK, NEU, OII, ORLY, PLCM, PLXS, QCOM, RJF, SCSS, SGMO, SKX, SLG, SLM, SUSQ, T, TCBI, TMK, TSCO, TXN, TYL, USTR, VMI, WFT, WSTC, XLNX

SOME NOTABLE EARNINGS BEFORE THE BELL TOMORROW:

MMM, ABBV, ADPT, AGEN, ALK, ALXN, ASPS, MO, AEP, ABCB, AVT, BEAV, BKU, BAX, BBT, BMS, BHE, BCC, CAB, CAM, CBF, CSL, CAT, CX, CLFD, CMS, CFX, COR, DAN, DHR, DPZ, DOW, DPS, DNKN, LLY, ERIC, FNB, FCX, GM, GPK, HP, HSY, IR, IQNR, IVC, JCI, KKR, LAZ, MHO, CLI, MJN, NVS, NUE, PTEN, BTU, PNK, PEP, PG, PHM, QLIK, RTN, RS, LUV, SWK, UNP, UAL

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • ZION: upgrade; market perform to outperform: FBR: pt raised from $30 to $36
  • AMZN: upgrade; neutral to buy: Monness Crespi: $450
  • DLB: upgrade: equal weight to overweight: JP Morgan: $48

DOWNGRADES:

  • ALTR: downgrade: overweight to neutral: Piper: $42
  • HP: downgrade: neutral to sell: Edward Jones
  • CMG: downgrade: outperform to market perform: Raymond James
  • AGU: downgrade: neutral to sell: Citigroup

INITIATIONS:

  • BLUE: initiated: buy: Maxim: $190
  • APC: initiated: buy: Nomura: $104
  • EOG: initiated: buy: Nomura: $112
  • MRO: initiated: buy: Nomura: $36
  • NBL: initiated: reduce: Nomura: $48
  • COH: initiated: market perform: Bluefin Research: $50

PRICE TARGET CHANGES:

  • ILMN: pt raised from $220 to $230: Mizuho
  • ILMN: pt raised from $215 to $240: Citigroup
  • WUBA: pt raised from $60 to $91: Pacific Crest
  • VMW: pt raised from $92 to $102: Goldman
  • AMGN: pt raised from $187 to $192: Piper
  • AMGN: pt raised from $164 to $189: Cowen
  • BRCM; pt raised from $50 to $52: Cowen
  • BRCM: pt raised from $53 to $59: Brean
  • YELP: pt raised from $50 to $58: Brean
  • BHI: pt raised from $72 to $78: Susquehanna
  • UA: pt raised from $85 to $94: Telsey
  • UA: pt raised from $96 to $98: Citigroup
  • NOW: pt raised from $79 to $87: UBS
  • TEVA: pt raised from $64 to $75: Argus
  • YHOO: pt cut from $60 to $54: Piper
  • YHOO: pt cut from $58 to $50: FBR Capital
  • YHOO: pt cut from $56 to $48: Barclays
  • HOG: pt cut from $70 to $63: RBC Capital
  • HOG: pt cut from $78 to $70: Baird
  • CMG: pt cut from $785 to $770: Credit Suisse

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