Early Look

Thursday, February 11, 2021

Futures	Up/Down	%	Last
Dow	75.00	0.24%	31,403
S&P 500	12.25	0.31%	3,915
Nasdaq	66.50	0.49%	13,710

 

 

Stock futures in the U.S. are looking higher after mixed results on Wednesday as investors weigh tame inflation data (CPI) alongside expected fiscal stimulus out of Washington, which continues to bolster market sentiment. U.S. stocks were choppy throughout Wednesday’s session before slipping late into the close, with the Nasdaq and S&P turning negative after each reaching intraday record highs prior. Comments from Fed Chairman Powell, again calling for more fiscal relief measures, really didn’t move the needle for markets on the day. We are about 65% through earnings season with a couple of big names today including Dow component Disney (DIS) after the bell. The SmallCap Russell 2000 and S&P 600 small cap index both ended 7-day win streaks. In Asian markets, The Nikkei Index and Shanghai Index were closed, while the Hang Seng Index gained 134 points to settle at 30,173. In Europe, the German DAX is higher by 80 points, moving back above the 14,000 level, while the FTSE 100 is up a few points to 6,530. A light day of economic data with only weekly jobless claims on the agenda.

Market Closing Prices Yesterday

·     The S&P 500 Index dropped -1.35 points, or 0.03%, to 3,909.88

·     The Dow Jones Industrial Average rose 61.97 points, or 0.20%, to 31,437.80

·     The Nasdaq Composite slipped -35.16 points, or 0.25%, to 13,972.53

·     The Russell 2000 Index declined -16.56 points, or 0.72% to 2,282.44

 

Events Calendar for Today

·     8:30 AM ET         Weekly Jobless Claims

·     8:30 AM EST      Continuing Claims

·     10:30 AM ET      Weekly EIA Natural Gas Inventory Data

 

Earnings Calendar:

·     Earnings Before the Open: AB, AGTC, ALNY, AZEK, BRG, BWA, COHU, COWN, DUK, ECOM, ENS, GNRC, HII, K, KHC, KIM, KPTI, LH, NET, NUS, PBF, PEP, POOL, R, REI, SAFE, SON, SSTK, SVMK, TAP, THS, TPX, TSN, UFS, VIRT, VNT, WSO, YETI, ZBRA

·     Earnings After the Close: AFRM, ASYS, BIO, BJRI, BL, BRX, CARG, CC, CGNX, CRY, CIT, CUZ, DCO, DDOG, DIS, DLR, DVA, EGOV, EXPE, FLO, FWRD, FORR, GDDY, HUBS, ILMN, JCOM, LLNW, LTRX, MHK, MRC, NR, PXLW, RARE, REG, SGEN, SHO, TEX, VCRA, VECO, VRSN, VVI, WRE

 

Other Key Events:

·     Cowen Aerospace, Defense & Industrial Conference (virtual), 2/9-2/11

·     Goldman Sachs Technology & Internet Conference (virtual), 2/10-2/11

·     KBW Inc. Financial Services Symposium (virtual), 2-10-2/12

·     Annual WORLDSymposium (Lysosomal Diseases), 2/8-2/12

 

 

Macro	Up/Down	Last
Nymex	-0.47	58.21
Brent	-0.52	60.95
Gold	-2.30	1,840.60
EUR/USD	0.0009	1.2127
JPY/USD	0.15	104.74
10-Year Note	+0.02	0.9%

 

 

Sector News Breakdown

Consumer

·     PepsiCo (PEP) Q4 core EPS $1.47 vs. est. $1.46; Q4 revenue $22.46B vs. est. $21.8B; Q4 organic revenue growth of 5.7%; sees FY21 core constant currency EPS up high-single digits and FY21 organic revenue up mid-single digits; sees total cash returns to shareholders of approximately $5.9B, comprised of dividends of approximately $5.8B and share repurchases of approximately $100M.

·     Pilgrim’s Pride (PPC) Q4 adj EPS 25c vs. est. 33c; Q4 revenue $3.12B vs. est. $3.29B; Q4 adjusted EBITDA of $205.4M vs. $161.6M last year and 6.6% margin vs. 5.3% last year

·     Tyson Foods (TSN) Q1 adj EPS $1.94 vs. est. $1.49; Q1 revenue $10.46B vs. est. $10.84B; sees FY21 revenue the near upper end of $42B-$44B view vs. est. $44.89B; incurred direct incremental expenses associated with impact of covid-19 totaling about $120 mln for q1 of fiscal 2021

·     Calloway (ELY) shares fell -8%; 4Q adj EPS ($0.33) vs. est. ($0.19) on net sales $375Mm vs. est. $337.4Mm, golf club sales +48.5%, golf ball sales +14.3%, apparel sales +8.7%, not providing FY guidance for FY21 due to Covid uncertainty

·     Hibbett Sports (HIBB) sees 4Q adj EPS $1.30-1.40 vs. est. $1.09, 4Q comps +21.9%; guides FY22 EPS $5.00-5.50 vs. est. $3.84, sees FY22 comps -LSD to +LSD

·     iRobot (IRBT) 4Q adj EPS $0.84 vs. est. $0.31 on revs $544.8Mm vs. est. $494.1Mm; sees FY21 adjusted EPS $3.00-$3.25 vs. est. $2.19; sees FY21 revenue $1.635B-$1.675B vs. est. $1.47B

·     MGM Resorts (MGM) 4Q adj EPS ($0.90) vs. est. ($0.90) on net revs $1.5B vs. est. $1.5B, 4Q casino revs -38% yr/yr and rooms revs -70% yr/yr at Vegas strip resorts, MGM China net revs -58% to $305Mm; says remains confident in long-term recovery of Las Vegas and Macau markets

·     O’Reilly Automotive (ORLY) 4Q EPS $5.40 vs. est. $5.13 on sales $2.83B vs. est. $2.78B, announces additional $1.0B repurchase authorization effective for three years; guides FY21 EPS $22.70-22.90 vs. est. $23.32, sees FY21 revs $11.5-11.8B vs. est. $11.75B

·     Sonos (SONO) 1Q adj EPS $1.17 vs. est. $0.88 on revs $645.6Mm vs. est. $589.9Mm; sees FY21 revs $1.525-1.575B vs. est. $1.46B, sees FY gr mgn 46-46.5%, sees adj EBITDA $195-225Mm vs. est. $179.8Mm (mgn 13-14% vs est 12.3%);

·     Spirit Airlines (SAVE) 4Q revs $498.5Mm vs. est. $516Mm, EPS ($1.61) vs. est. ($1.43), continues to see significant neg impact due to covid, ended yr with $1.9B unrestricted cash and equiv, 4Q load factor 71.5%, capacity -25.4% yr/yr, revs/segment -25.6%; sees 1Q capacity -17%

·     Uber Inc. (UBER) 4Q EPS ($0.54) vs. est. ($0.56) on revs $3.2B vs. est. $3.58B, qtrly gross bookings $17.15B, qtrly monthly active consumers 93Mm; Delivery Gross Bookings growing 128% YoY and Mobility Gross Bookings declining 47% YoY, respectively, on a constant currency basis; Adjusted EBITDA loss of $(454) million, reduced by $171 million QoQ and by $161 million YoY

·     Zillow Group (ZG) shares rose 10%; to buy ShowingTime.com for $500M; Q4 revs $789M vs. est. $741M; Q4 Adjusted EBITDA exceeded the high end of the company’s outlook for all three segments, resulting in consolidated Adjusted EBITDA of $170 million; Traffic to Zillow Group’s mobile apps and websites reached a fourth-quarter record of 201 million average monthly unique users, an increase of 16% year over year, driving 2.2 billion visits during the quarter, up 27% year over year; sees Q1 total revenue $1.069B-$1.112B vs. est. $892.43M

 

Energy, Industrials and Materials

·     Bloom Energy (BE) Q4 EPS loss (8c) vs. est. 0c; Q4 revenue $249.4M vs. est. $235.28M; Gross margin of 25.5% in the fourth quarter of 2020, an increase of 13.8 percentage points compared to gross margin of 11.7% YoY; sees year revs $950M-$1B vs. est. $978.2M

·     CSX Corp. (CSX) boosts dividend 8% to 28c per share

·     Rush Enterprises (RUSHA) Q4 EPS 72c vs. est. 54c; Q4 revenue $1.3B vs. est. $1.21B

·     XPO Logistics (XPO) 4Q adj EPS $1.19 vs. est. $0.67 on revs $4.67B vs. est. $4.25B; guides FY21 adj EPS $5.10-5.85 vs. est. 3.88, sees FY21 adj EBITDA $1.725-1.8B vs. est. $1.71B, sees FY21 FCF $600-700Mm

·     Kinross Gold (KGC) Q4 adj EPS 27c vs. est. 22c; Q4 revenue $1.195B vs. est. $1.22B; said total capital expenditures for 2021 are forecast to be approximately $900M, plus or minus 5%

 

Financials

·     Annaly Capital (NLY) Q4 non-GAAP EPS of 30c beats the consensus estimate by a penny; book value per common share of $8.92 at Dec. 31, 2020, up 2.5% from $8.70 at Sept. 30

·     Brighthouse Financial (BHF) Q4 adj EPS $3.03 vs. est. $2.74; Ended 4Q With Book Value of $16.7 B, or $188.90/Shr; authorized the Repurchase of up to $200m of its common stk; repurchase authorization is in addition to $500 m stk repurchase authorization announced in feb 2020

·     Moelis (MC) increases quarterly dividend 44% to 55c per share

·     Western Union (WU) Q4 adj EPS 45c vs. est. 42c; Q4 revenue $1.3B vs. est. $1.25B; achieves all-time highs for money transfer transactions and principal in 2020, with 38% growth for digital revenues; provides 2021 financial outlook, including margin expansion and solid revenue growth; share repurchases resume in the first quarter of 2021 along with a 4% increase in the dividend

·     OneMain Holdings (OMF) 8M share Secondary priced at $53.00

 

Healthcare

·     Cerner Corp. (CERN) 4Q adj EPS $0.78 vs. est. $0.78 on revs $1.395B vs. est. $1.394B, bookings $1.683B, backlog $13.04B; guides 1Q21 revs $1.37-1.42B vs. est. $1.41B, sees 1Q adj EPS $0.72-0.76 vs. est. $0.76; sees FY21 adj EPS $3.10-3.20 vs. est. $3.22

·     Fluidigm (FLDM) shares fell -13%; Q4 EPS loss (13c) vs. est. loss (7c); Q4 revenue $44.61M vs. est. $50.72M; guides Q1 revenue $30M-$33M, below consensus $47.62M and sees Q1 product and service revenue of approximately $29M to $31M.

·     Molina Healthcare (MOH) Q4 revenue $5.235B vs. est. $5.3B; sees FY21 adjusted EPS $12.50-$13 vs. est. $13.77; sees FY21 revenue over $24B vs. est. $23.61B; 2021 premium revenue growth expected to be over 25%

·     Seagen (SGEN) and Genmab (GMAB) announced the submission of a Biologics License Application to the U.S. FDA seeking accelerated approval for tisotumab vedotin

·     Apria (APR) 7.5M share IPO priced at $20.00

·     Bioventus (BVS) 8M share IPO priced at $13.00

·     KalVista (KALV) 5.375M share Secondary priced at $36.00

·     Nano-X Imaging (NNOX) 3.09M share Secondary priced at $62.50

·     Oak Street Health (OSH) 10.72M share Secondary priced at $56.00

·     Onconova (ONTX) 25M share Spot Secondary priced at $1.00

·     Signify Health (SGFY) 23.5M share IPO priced at $24.00

 

Media & Telecom

·     Altice USA (ATUS) Q4 EPS 60c vs. est. 37c; Q4 revenue $2.54B vs. est. $2.51B; expects rev and adjusted Ebitda growth for 2021, cash capex to be between $1.3 to $1.4 bln for year, and share repurchases of $1.5 bln; sees revenue, adjusted EBITDA growth for 2021

·     Bumble (BMBL) 50M share IPO priced at $43.00, above its target range, to raise $2.2 billion – was previously aiming to sell 45 million shares at a target price range $37-$39

 

Technology

·     Microsoft (MSFT) made an approach to Pinterest (PINS) about a potential acquisition in recent months, the FT reported, but says the talks are not currently active; the FT didn’t specify a price for a potential transaction. https://bit.ly/2Ni1mIC 

·     Emcore (EMKR) 5.79M share Spot Secondary priced at $5.40

·     Lumen Technologies (LUMN) Q4 adj EPS 48c vs. est. 29c; Q4 revenue $5.13B vs. est. $5.12B; sees 2021 capital expenditures of $3.5 to $3.8 billion; sees 2021 free cash flow (excluding special items) $2.8 to $3.0 billion

·     Avalara (AVLR) Q4 EPS 9c vs. est. loss (6c); Q4 revenue $144.8M vs. est. $133.39M; sees Q1 revenue $142M-$144M vs. est. $140.59M and sees Q1 operating loss of $10M to $12M; Q4 calculated billings were $167.1 million in the fourth quarter of 2020, compared to calculated billings of $120.8 million YoY

·     eGain Corp. (EGAN) 2Q adj EPS $0.06 vs. est. $0.01 on revs $19.2Mm vs. est. $18.5Mm; guides 3Q revs $18.3-18.8Mm vs. est. $19.12Mm sees 3Q GAAP EPS loss $0.02 to $0.05 vs. est. $0.02;

·     Impinj (PI) 4Q adj EPS $($0.15) vs. est. ($0.22) on revs $36.4Mm vs. est. $34.9Mm; guides 1Q adj EPS net loss $0.15-0.08 vs. est. net loss/shr $0.28, sees 1Q revs $41-43Mm vs. est. $31.36Mm, says committed to executing a restructuring plan and expects to eliminate about 9 full-time positions within its go-to-market organization

·     Qualys (QLYS) Q4 adj EPS 71c vs. est. 70c; Q4 revenue $94.8M vs. est. $94.62M; sees FY21 adjusted EPS $2.60-$2.65 vs. est. $2.99; sees FY21 revenue $399M-$402M vs. est. $408.17M; announced CEO is taking a leave of absence due to health issues unrelated to COVID-19; announces additional $100 million share repurchase program

·     Paycom (PAYC) Q4 adj EPS 84c vs. est. 79c; Q4 revenue $220.9M vs. est. $213.56M; sees Q1 revenue $270M-$272M vs. est. $269.69M; sees Q1 Adjusted EBITDA in the range of $126M-$128M; Full year total client count expanded to 30,994 as of December 31, 2020, up 17% from the prior year-end.

·     Trimble (TRMB) Q4 non-GAAP EPS 61c vs. est. 51c; Q4 revenue $829.7M vs. est. $785.69M; expects to report Gaap revenue between $3,299.7 mln and $3,399.7 mln and Gaap earnings per share of $1.31 to $1.54 for 2021

·     Zynga (ZNGA) Q4 EPS loss (5c) vs. est. 9c; Q4 revenue $616M vs. est. $677.73M; said achieved our highest quarterly revenue of $616 million, up 52% year-over-year, and record quarterly bookings of $699 million, up 61% year-over-year; qtrly user pay revenue of $499 mln, up 54%; qtrly user pay bookings $582 mln, up 64%; average mobile daus of 36 mln, up 77% in qtr; average mobile maus of 134 mln, up 103% in qtr; sees FY21 revenue $2.6B vs. est. $2.75B; sees FY21 bookings $2.8B and adjusted EBITDA of $450M