TWTR | FOMC |Morning News

April 29, 2015

US futures dipping slightly as markets remain mostly quiet around the world ahead of the first look at the US Q1 GDP this morning and the wrap up of the FOMC meeting this afternoon.  Overnight, the dollar moved lower against most other major currencies, with investors cautious of moving into the US$ ahead of the interest rate statement out of the FOMC meeting. Oil weakens after Saudi King alters line of succession adding uncertainty and  volatility to an already volatile commodity.

NEWS:

  • SSYS: issues warnings on earnings: reports on 5/11:expects Q1 revenue of $171M-$173M and EPS of $0.02-$0.04, well below a consensus of $198.8M and $0.29 ( DD has already announced it warning: XONE is in the same sector)
  • BABA: Alibaba’s Ma says freezing hiring after growing ‘too quickly’, reports reuters
  • ARIA: CEO retiring
  • ONCY: Announces Receipt of Orphan Drug Status from the EMA for Pancreatic Cancer, reports CNN money
  • AOL: AOL and NBCUniversal Announce Video Content Partnership, reports businesswire

ON THE ECONOMIC CALENDAR:

  • 7AM: MBA Mortgage Applications
  • 8:30AM: GDP Q1
  • 10AM: Pending Home Sales
  • 10:30AM: EIA Petroleum Inventories
  • 11:30AM: $15B, 2 Year FBN Auction
  • 1PM: Results of $29B 7 Year Note Auction
  • 2PM: FOMC Announcements

EARNINGS:

  • VRX: Q1 EPS of $0.21Revenue of $2.19B (+15.9% Y/Y)
  • HOT:Q1 EPS of $0.65 beats by $0.08.Revenue of $1.42B (-2.7% Y/Y) beats by $30M: plans to explore strategic alternative “no option is off the table”
  • SAVE: Q1 EPS of $0.96 in-line.Revenue of $493.36M (+12.6% Y/Y) misses by $1.25M
  • HLT: Q1 EPS of $0.12 in-line.Revenue of $2.6B (+10.2% Y/Y) beats by $190M: conference call 10AM EST
  • GRUB: conference call 10AM EST
  • MA: conference call 9AM EST
  • GRMN: Q1 EPS of $0.55 misses by $0.02.Revenue of $585.39M (+0.4% Y/Y) misses by $20.87M
  • TWX: Q1 EPS of $1.19 beats by $0.10.Revenue of $7.13B (+4.9% Y/Y) beats by $130M: conference call 10:30AM EST
  • IP :Q1 EPS of $0.84 beats by $0.04.Revenue of $5.52B (-3.5% Y/Y) misses by $280M: conference call 9AM EST

RECAP OF SOME NOTABLE EARNINGS LAST NIGHT:

  • TWTR: Q1 revenue was $435.9M (misses by $20.9M), EPS $0.07 (beats by $0.03), and monthly active users 302M (+5% Q/Q and +18% Y/Y) Guidance:Q2 revenue of $470M-$485M, well below a $538.2M consensus. Full-year revenue guidance has been cut to $2.17B-$2.27B (below a $2.37B consensus) from $2.3B-$2.35B. Full-year adjusted EBITDA guidance has been cut to $510M-$535M from $550M-$570M:partnering with Google’s (NASDAQ:GOOG) DoubleClick unit (a giant in the display ad space) to allow Twitter advertisers using DoubleClick to “measure when conversions result from views and other actions on Twitter.”
  • KRFT: Q1 EPS of $0.86 beats by $0.05.Revenue of $4.35B (-0.2% Y/Y) misses by $80M
  • GPRO: Q1 EPS of $0.24 beats by $0.06.Revenue of $363.1M (+54.1% Y/Y) beats by $22.11M: strong guidance,Q2 revenue of $380M-$400M and EPS of $0.24-$0.26, soundly above a consensus of $333.7M and $0.16
  • WYNN:Q1 EPS of $0.70 misses by $0.63.Revenue of $1.09B (-27.8% Y/Y) misses by $80M:38% drop in Macau revenue
  • BWLD:Q1 EPS of $1.52 misses by $0.11.Revenue of $440.59M (+19.8% Y/Y) misses by $11.8M: Chicken wing costs +41% Y/Y
  • CRUS:Q4 EPS of $0.66 beats by $0.19.Revenue of $255.18M (+70.5% Y/Y) beats by $22.99M: guidance strong FQ1 revenue of $260M-$280M v. $222.2M consensus
  • X: Q1 EPS of -$0.07 misses by $0.19.Revenue of $3.27B (-26.5% Y/Y) misses by $160M: cuts FY15 guidance
  • AKAM:Q1 EPS of $0.61 in-line.Revenue of $526.54M (+16.1% Y/Y) in-line: weak guidanceQ2 revenue of $532M-$547M and EPS of $0.55-$0.59 below consensus

SOME NOTABLE EARNINGS REPORTING AFTER THE CLOSE TODAY:

BIDU ,EQIX, EQY, ES, ESV, EXL, GLUU, HOLX, HOS, KEG, MAR, MTW, MUR, NE, NSR, NXPI, O, OGS, OIS, PDM, PPC, PRXL, PTC, QEP, QUIK, RKT, ROG, RRTS, SAM, SCI, SFLY, SSS, SU, TX, UNM, VAR, VRTX, WLL, WMB, WTS,, YELP

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • TWTR: upgrade: hold to buy: Pivotal Research: NOTE: pt cut from $54 to $50
  • AKAM: upgrade; hold to buy: Deutsche Bank: pt raised from $73 to $79
  • LLY: upgrade: neutral to buy: Citigroup: pt raised from $66 to $100

DOWNGRADES:

  • TWTR: downgrade: buy to hold: Axiom: pt cut from $63 to $45
  • TWTR: downgrade; overweight to equal weight: Barclays: pt cut from $60 to $44
  • TWTR: downgrade: buy to neutral: Janney Capital
  • PFE: downgrade: buy to neutral: Citigroup: $37
  • SSYS: downgrade; buy to hold: Goldman
  • SSYS: downgrade: buy to neutral: Dougherty

INITIATIONS:

  • STX: initiated: buy: Benchmark: $65

PRICE TARGET CHANGES:

  • TWTR: pt cut from $50 to $40: Wunderlich
  • TWTR: pt cut from $50 to $44: Citigroup
  • TWTR: pt cut from $58 to $50: UBS
  • TWTR: pt cut from $67 to $55: JP Morgan
  • TWTR: pt cut from $50 to $40: Wedbush
  • GPRO: pt raised from $48 to $56: Citigroup
  • GPRO: pt raised from $55 to $66: Piper
  • GPRO: pt raised from $55 to $65: Dougherty
  • JBLU: pt raised from $20 to $25: Imperial Capital
  • BMY: pt raised from $60 to $80: Citigroup
  • BLUE: pt raised from $119 to $186: Piper

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