Yellen in Focus | Morning News

MAY 22, 2015

US futures wavering along the flat line in very light volume ahead of the long holiday weekend as earnings season winds down and investors look towards Janet Yellen’s speech at 1PM EST. Oil hovering around the $60 level as supply continues to exceed demand and OPEC continues to oversupply the market.

NEWS:

  • TWC:Charter in talks with Time Warner Cable over bid likely above $170 per share, reports the wsj
  • AAPL: Apple prepping 12″ iPads, dual-app viewing, multi-user login, reports seekingalpha contributor
  • BABA: launches first supermarket distribution center in China
  • BBRY: announces buyback 12M shares
  • BBRY:BlackBerry targeted for acquisition, say sources, reports digitimes
  • CTRP: LONG: Ctrip Acquires Strategic Stake in eLong, reports prnewswire
  • KSU: CSX: NSC: UNP: shipments of crude via rail fell 14% Q/Q
  • CBS: Letterman final draws 13.76M viewers
  • BMY: announces positive CHMP for Nivolumab
  • AMGN: announces positive CHMP for Repatha
  • WIN: TLN: Talen Energy to replace Windstream in the S&P MidCap400

ON THE ECONOMIC CALENDAR:

  • 8:30AM: Consumer Price Index
  • 1PM: Janet Yellen speaks

EARNINGS: 

  • ANN: conference call 8:30AM EST
  • CPB:FQ3 EPS of $0.62 beats by $0.10.Revenue of $1.9B misses by $30M: conference call 8:30AM EST
  • HIBB: Q1 EPS of $1.09 misses by $0.04.Revenue of $269.82M misses by $4.25M: conference call 10AM EST
  • FL:Q1 EPS of $1.29 beats by $0.06.Revenue of $1.92B beats by $10M: conference call 9AM EST
  • DE: FQ2 EPS of $2.03 beats by $0.48.Revenue of $7.4B misses by $130M: conference call 10AM EST

RECAP OF SOME NOTABLE EARNINGS FROM LAST NIGHT: 

  • INTU:FQ3 EPS of $2.85 beats by $0.11.Revenue of $2.19B beats by $40M: raises FY15 sales guidance: weak EPS guidance
  • ROST:Q1 EPS of $1.33 beats by $0.05.Revenue of $2.94B beats by $50M
  • GPS: Q1 EPS of $0.54 misses by $0.02.Revenue of $3.66B misses by $90M: guidance reaffirmed
  • BRCD:FQ2 EPS of $0.22 beats by $0.02.Revenue of $547M misses by $4.33M:soft guidance
  • MRVL:FQ1 EPS of $0.13 beats by $0.03.Revenue of $724.28M (-24.4% Y/Y) misses by $9.55M: soft guidance
  • ACXM:FQ4 EPS of $0.24 beats by $0.02.Revenue of $257M misses by $2.33M: weak guidance
  • TFM:Q1 EPS of $0.50 beats by $0.01.Revenue of $462.04M misses by $11.82M
  • AEO: Q1 EPS of -$0.56 misses by $0.01.Revenue of $318.6M (-19.5% Y/Y) misses by $6.4M: strong dollar and cold weather had negative impact
  • HPQ:FQ2 EPS of $0.87 beats by $0.01.Revenue of $25.45B misses by $180M:spending slowdown: FQ3 guidance at low end of expectation: guidanceFY15  EPS of $3.53-$3.73 v. $3.64 consensus
  • LGF: FQ4 EPS of $0.39 beats by $0.07.Revenue of $646.1M misses by $26.19M

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • PAY: upgrade: neutral to buy: Citigroup: $44
  • BP: upgrade: underweight to neutral: JP Morgan
  • TOT: upgrade: neutral to overweight: JP Morgan

DOWNGRADES:

  • GD: downgrade: outperform to market perform: Cowen: $153
  • OTIC: downgrade: buy to neutral: JP Morgan: $30

INITIATIONS:

  • PAY: initiated: outperform: Imperial Capital: $44
  • QURE: initiated: outperform: Opco: $47
  • TXN; initiated: neutral: Mizuho: $56
  • SNDK: initiated: neutral: Mizuho: $74
  • ON: initiated: buy: Mizuho: $16
  • AVGO: initiated; buy: Mizuho: $150
  • CY: initiated: buy: Mizuho: $23
  • MU: initiated: buy: Mizuho: $39
  • NXPI: initiated: buy: Mizuho: $140
  • SWKS: initiated: buy: Mizuho: $115
  • SWKS: initiated: neutral: Goldman: $108

PRICE TARGET CHANGES:

  • INTU: pt raised from $113 to $120: Jefferies
  • SYNA: pt raised from $95 to $105: JP Morgan
  • NFLX: pt raised from $600 to $700: RBC Capital
  • WWWW: pt raised from $25 to $32: Piper
  • ROST: pt raised from $100 to $109: Telsey
  • SRPT: pt raised from $25 to $35: WBB Securities
  • DY; pt raised from $65 to $70: FBR Captial
  • CRM: pt raised from $80 t0 $85: Needham
  • ARO: pt cut from $3 to $2: Telsey
  • ARO: pt cut from $3.50 to $2.50: Mizuho
  • LL: pt cut from $30 to $18: Piper

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