NFLX in focus | Morning News

APRIL 16, 2015

US future pulling back at this 7AM hour as traders look to a continued heavy earnings day and some key economic data.  With mixed market around the world, European markets are mostly lower after Greece missed budget targets for 2014. Shanghai surged more than 2% overnight on healthy FDI data. The dollar hugging the flat line after dipping overnight on strong economic data out of Australia. Oil trading quietly lower after rising sharply on Wednesday on expectations that the US oil supply has begun to fall and global demand has started to strengthen.

NEWS:

  • The Fed’s Lacker still looking to raise rates mid-June
  • EWZ: Brazil forecasts contraction in the economy in 2015
  • AAPL:Six percent of U.S. adults plan to buy Apple Watch, says reuters poll
  • GPOR: secondary price range $46.75-$48.75
  • GME: SunTrust lifts 2015 estimates
  • NVS: FDA approves cataract eye surgery drug
  • OMED: reports positive Demcizumab phase 1 trial for lung cancer
  • AAPL: KGI analyst estimates the global pre-orders of the iWatch have exceeded 2.3M, reports macrumors
  • MDCO: reported late yesterday that the FDA advisory committee voted to approve Cangrelor for multiple use cases

ON THE ECONOMIC CALENDAR:

  • 8:30AM: Housing Starts: expectation 1.04M, up from Feb’s 897K
  • 8:30AM: Weekly Jobless Claims: expectation unchanged at 281K
  • 9:45AM: Bloomberg Consumer Comfort Index
  • 10AM: Philly Fed Business Outlook: expectation 6.0
  • 10:30AM: Natural Gas Inventory
  • 10:40AM: Fed’s Fischer and ECB’s Praet speak at IMF Conference
  • 4:30PM: Money Supply and Fed Balance Sheet
  • no time available: OPEC Monthly Oil Market Report

EARNINGS:

  • UNH: Q1 EPS of $1.46 beats by $0.11.Revenue of $35.76B (+12.8% Y/Y) beats by $1.13B; added 1.6M subscribers in the past year: raises guidance FY15: conference call 8:45AM EST
  • BLK: Q1 EPS of $4.89 beats by $0.37.Revenue of $2.72B (+1.9% Y/Y) misses by $70M: reports 6.5% annualized organic growth on strong inflows
  • KEY: Q1 EPS of $0.26 in-line.Revenue of $1.01B (+1.0% Y/Y) misses by $20M: conference call 9AM EST
  • BX: Q1 EPS of $1.37 beats by $0.33.Revenue of $2.51B (+66.2% Y/Y) beats by $470M: declares $.89/share dividend, up 14.1% from previous $.78: conference call 11AM EST
  • PM:Q1 EPS of $1.16 beats by $0.15.Revenue of $6.62B (-4.3% Y/Y) beats by $490M:guides higher, raising FY15 EPS to $4.32-$4.42: conference call 9AM EST
  • SHW:Q1 EPS of $1.38 misses by $0.06.Revenue of $2.45B (+3.4% Y/Y) misses by $40M: guidance, sees FY 15 EPS $10.90-$11.10 vs consensus $11.22: conference call 11AM EST
  • GWW:Q1 EPS of $3.07 misses by $0.04.Revenue of $2.44B (+2.1% Y/Y) misses by $20M: lowers FY15 EPS and sales growth:conference call 7:30AM EST
  • GS:Q1 EPS of $5.94 beats by $1.68.Revenue of $10.62B (+13.8% Y/Y) beats by $1.27B: increases quarterly dividend to $.65/share: conference call 9:30AM EST
  • TZOO:Q1 EPS of $0.13 beats by $0.05.Revenue of $36.49M (-9.2% Y/Y) beats by $1.72M
  • C:Q1 EPS (Excl. CVA/DVA) of $1.52 beats by $0.13.Revenue (Excl. CVA/DVA) of $19.81M (-99.9% Y/Y) misses by $19.8B: conference call 11AM EST

LAST NIGHT’S NOTABLE EARNINGS RECAP:

  • NFLX: Reported strong subscription growth, moving forward with increased focus on original content and global markets. Netflix still not interested in sports: confirmed that the company is seeking shareholder approval for a stock split: The stock was up 12.7% after-hours and should have impressive volatility today. On watch for analysts’ ratings changes.
  • SNDK: The company missed EPS by $.04 and beat on revenue but guided lower FY15 revenue $5.4-5.7B vs $6.15B
  • KMI: The company missed on revenue: hit by lower commodity prices as its carbon dioxide business fell 23%: hikes dividend to $.48 and reports that its on track to meet its FY target of $.50/quarter.

SOME NOTABLE EARNINGS AFTER THE CLOSE TODAY: AMD, AXP, ASB, BLX, CE, CCK, CYT, EGP, MAT, SLB, NOW, STRM, ULTR

SOME NOTABLE EARNINGS BEFORE THE OPENING TOMORROW: CMA, FHN, GE, HON, MDGN, RAI, STX, SYF

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • COH: upgrade: equal weight to overweight: Barclays: pt raised from $38 to $50
  • NFLX: upgrade: market perform to outperform: pt raised from $400 to $900: FBR Capital
  • MAT: upgrade: market perform to outperform: Wells Fargo: pt range $28-30
  • INTC: upgrade: underperform to market perform: Bernstein: $52
  • PNRA: upgrade: underperform to market perform: Raymond James

DOWNGRADES:

  • SNDK: downgrade: outperform to market perform: Raymond James
  • SNDK: downgrade: outperform to neutral: Credit Suisse: $65
  • SDNK: downgrade: buy to hold: Deutsche Bank: $65
  • ALU: downgrade: conviction buy to buy: Goldman
  • ALU: downgrade: outperform to neutral: Credit Suisse
  • ALU: downgrade: buy to neutral: Citigroup

INITIATIONS:

  • DATA: initiated: buy: Stifel: $115
  • DATA: initiated: outperform: William Blair
  • AAPL: initiated: hold: Maxim: $144
  • ETSY: initiated: buy: Brean Capital: $19
  • CMG: initiated: buy: Guggenheim: $780
  • SBUX: initiated: buy: Guggenheim: $56
  • SBUX: initiated: outperform: BMO Capital: $56

PRICE TARGET CHANGES:

  • NFLX: pt lifted from $500 to $665: Pacific Crest
  • NFLX: pt raised from $500 to $580: Cantor
  • NFLX: pt raised from $550 to $600: RBC
  • NFLX: pt raised from $525 to $584: Citigroup
  • NFLX: pt raised from $535 to $650: Stifel
  • NFLX: pt raised from $509 to $625: JPM
  • NFLX: pt raised from $565 to $600: UBS
  • NFLX: pt raised from $483 to $610: Opco
  • PNRA: pt raised from $185 to $205: UBS
  • BABA: pt cut from $119 to $97: Brean Capital
  • MNKD: pt cut from $13 to $10: RBC
  • KORS: pt cut from $70 to $60: Barclays
  • WDC: pt cut from $115 to $105: JPM
  • SNDK: pt cut from $78 to $75: RBC

 

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