Early Look

Friday, February 18, 2022

Futures	Up/Down	%	Last
Dow	108.00	0.32%	34,340
S&P 500	19.25	0.45%	4,394
Nasdaq	88.50	0.62%	14,253

 

 

U.S. futures are edging higher with S&P futures rising nearly 0.5% back to the 4,400 level, following a slow steady grin lower yesterday as major averages finished Thursday at their lows and the Dow posted its biggest one-day decline this year down over -600 points on increased Ukraine/Russian tensions. Investors flocked toward defensive sectors and safe havens such as bonds and gold as geopolitical tensions between Washington and Russia over Ukraine flared. After reports that Ukrainian forces and pro-Moscow rebels traded fire in eastern Ukraine, U.S. President Joe Biden said there was every indication Russia was planning to invade in the next few days. On Wall Street, growth-oriented technology stocks and communication services sectors were among the hardest hit, along with financials while defensive utilities and staples outperformed. Developments in Ukraine have added to uncertainty about the path of the Federal Reserve’s tightening plans to fight inflation. In Asian markets, The Nikkei Index fell -110 points to 27,122, the Shanghai Index rose 22 points to 3,490, and the Hang Seng Index plunged -465 points or 1.88% to 24,327. In Europe, the German DAX is down about -10 points to 15,255, while the FTSE 100 is higher by +0.25% to 7,555. Oil prices retreat below $90 per barrel after touching highs above $95 this week, while gold slips back below $1,900 an ounce with no new developments overnight in Ukraine.

Market Closing Prices Yesterday

·     The S&P 500 Index slumped -94.75 points, or 2.12%, to 4,380.26

·     The Dow Jones Industrial Average fell -622.27 points, or 1.78%, to 34,312.03

·     The Nasdaq Composite plunged -407.38 points, or 2.88%, to 13,716.72

·     The Russell 2000 Index declined -51.22 points, or 2.46% to 2,028.09

 

Events Calendar for Today

·     10:00 AM ET        Existing Home Sales MoM for January

·     10:00 AM ET        Leading index MoM for January

·     1:00 PM EST         Baker Hughes Weekly rig count data

 

Earnings Calendar:

·     Earnings Before the Open: ASIX, B, DE, DKNG, LTRPA, MMI, PPL

 

Other Key Events:

·     Credit Suisse Financial Services Conference, 2/16-2/18, in Miami, FL

·     KBW Financial Services Conference, 2/16-2/18, in Florida

·     Leerink Healthcare Conference (virtual), 2/14-2/18

 

 

Macro	Up/Down	Last
Nymex	-2.09	89.67
Brent	-2.29	90.68
Gold	-10.00	1,892.00
EUR/USD	-0.0008	1.1353
JPY/USD	0.26	115.21
10-Year Note	+0.00	1.974%

 

 

Sector News Breakdown

Consumer

·     BJ Restaurants (BJRI) Q4 EPS (20c) vs est. (2c) on revenue $291.3M vs est. $298.4M, comp sales +45.6% vs est. +49.2%

·     Chuy’s Holdings (CHUY) 4Q adj EPS $0.40 vs est. $0.31 on revs $98.7Mm vs. est. $99.3M; Comparable sales +20.8%, vs. est. +19.2%; restaurant level operating margin 21.3% vs. 20.3% y/y

·     Golden Entertainment, Inc. (GDEN) 4Q EPS $0.59 vs est. $0.66 on revs $282Mm vs est. $266.1Mm

·     Pilgrims Pride (PPC) shares slide -18% after Brazilian meatpacking giant JBS SA said it scrapped plans to buy the rest of the company in a deal that had valued the co at about $7 billion. JBS, which already owns about 80% of Pilgrim’s, said in a securities filing that it was unable to reach an agreement with the Colorado-based company over the terms of the deal.

·     Shake Shack (SHAK) Q EPS ($0.25) vs est. ($0.17) on revs $203.3Mm vs est. $202.7Mm, comps +20.8% vs 202 and +2.2% vs 2019; sees 1Q shack sales $190-195Mm vs est. $203.5Mm and total revs $196-201.4Mm vs est. $210.9Mm, says comps +13% month-to-date

 

Energy

·     Ameren (AEE) Q4 EPS $0.48 vs. est. $0.49; Q4 revs $1.55B vs. est. $1.4B; sees FY22 EPS $3.95-$4.15 vs. est. $4.05; expects diluted earnings per share to grow at a 6% to 8% compound annual rate from 2022 through 2026

·     Hannon Armstrong (HASI) Q4 EPS $0.71 vs est. $0.41 on revenue $53.7M vs est. $27.7M; raised its dividend to 37.5c/shr from 35c; raised and extended guidance through 2024 for distributable earnings growth to +10-13% (2024 midpoint of $2.40 per share) and dividends to +5-8%

·     SunRun (RUN) Q4 EPS (19c) vs est. (2c) on revenue $435.2M vs est. $409.1M; expects Q1 solar energy capacity installed to be between 195mw-200mw, full-year growth to be at least 20% (vs. 2021’s +31% growth)

 

Financials

·     American Equity (AEL) Q4 adj EPS $1.04 vs. est. $1.05; Q4 sales $1.04B; Book value per common share of $60.78 at December 31, 2021; non-GAAP book value per common share excluding accumulated other comprehensive income (AOCI)1 of $40.80 at December 31, 2021

·     Digital Realty (DLR) Q4 FFO $1.67 vs. est. $1.68; Q4 revs $1.1B, in-line with ests; sees FY22 core FFO $6.80-$6.90 vs. est. $6.90; sees FY22 revenue $4.7B-$4.8B vs. est. $4.65B.

·     Redfin (RDFN) 4Q EPS ($0.27) vs est. ($0.31) on revs $643.1Mm vs est. $598.8Mm; guides 1Q revs $535-560Mm vs est. $524.6Mm

·     Realogy Holdings (RLGY) Q4 adj EPS $0.40 vs. est. $0.32; Q4 revs $2.0B vs. est. $1.92B; expects operating ebitda for full year 2022 in range of $800 to $850 mln; Generated Operating EBITDA of $902 million, an increase of $176 million y/y

·     Tanger (SKT) 4Q FFO/share $0.45 vs est. $0.42; sees FY FFO/share $1.68-1.76 vs est. $1.70

·     Ventas (VTR) 4Q adj FFO/share $0.73 vs est. $0.71; guides 1Q adj FFO/share $0.76-0.80 vs est. $0.70 and same-store cash NOI +6-9%

 

Healthcare

·     Abbott (ABT) is initiating a proactive, voluntary recall of powder formulas, including Similac, Alimentum and EleCare manufactured in Sturgis, Mich., one of the company’s manufacturing facilities

·     AMN Healthcare Services (AMN) Q4 adj EPS $2.95 vs. est. $2.60; Q4 revs rose 116% to $1.36B vs. est. $1.3B; sees Q1 revs up 66% to 71%; Gross margin was 31.9%, lower by 100 basis points year over year and lower by 290 basis points sequentially

·     Exelixis, Inc. (EXEL) 4Q adj EPS $0.35 vs est. $0.06 on revs $451.1Mm vs. est. $352.8Mm; guides FY revs $1.525-1.625B vs est. $1.625B

·     Globus Medical (GMED) 4Q adj EPS $0.49 vs est. $0.47 on revs $250Mm vs est. $243.5Mm; guides FY adj EPS $2.10 vs est. $2.26 and sales $1.025B vs est. $1.05B

·     Ligand Pharmaceuticals (LGND) 4Q adj ESP $1.80 vs est. $1.37 on revs $72.5Mm vs est. $65.3Mm; guides FY revs $147-172Mm vs est. $189.9Mm

·     Quidel Corp. (QDEL) Q4 adj EPS $7.29 vs. est. $5.61; Q4 revs $636.9M vs. est. $561.17M; said qtrly revenue for COVID-19 products was $511.8 M, up from $405.3M y/y

·     Shockwave Medical (SWAV) Q4 EPS $0.34 vs est. $0.09 on revenue $84.2M vs est. $75.4M; sees FY22 revenue $405M-$425M vs est. $386.7M

·     Regeneron Pharmaceuticals (REGN) and Sanofi (SNY) are stopping a phase 3 trial (CUPID STUDY B) of Dupixent (dupilumab) in patients with chronic spontaneous urticaria (CSU) due to futility following an interim analysis.

 

Industrials & Materials

·     Deere Inc. (DE) Q1 EPS $2.92 vs. est. $2.26 and revs $9.56B vs. est. $8.19B; Q1 net income fell to $903M from $1.22B a year earlier, as costs related to supply chain and labor weighed on margins; raised 2022 net income between $6.7B-$7.1B, up from its prior expectation of $6.5B-$7.0B

·     Celanese Corp (CE) confirmed reports overnight that it would buy DuPont’s (DD) mobility and materials unit for $11 billion as the industrial materials maker continues to tweak its portfolio to focus on electronics, automotive and water solutions.

·     Air Lease (AL) approves $150M common share buyback authorization; Q4 adj EPS $1.75 vs est. $0.84 on revenue $597M vs est. $532.9M

·     Aspen Aerogels, Inc. (ASPN) 4Q EPS ($0.50) vs est. ($0.29) on revs $31.5Mm vs est. $34.5Mm; guides FY revs $145-155Mm vs est. $151Mm and EPS loss $1.95-2.07 vs est. loss $0.98

·     Casella Waste (CWST) 4Q adj EPS $0.21 vs est. $0.18 n revs $241.8Mm vs est. $230.4Mm; guides FY revs $980-995Mm vs est. $977.3Mm, adj EBITDA $228-232Mm vs est. $230Mm, adj FCF $104-108Mm

·     Livent Corp. (LTHM) 4Q adj EPS $0.08 vs est. $0.07 on revs $122.9Mm vs est. $106.5Mm; guides FY revs $540-600Mm vs est. $514.2Mm and adj EBITDA $160-200Mm vs est. $160.9Mm

 

Media & Telecom

·     Liberty Media (LBTYA) Q4 rev $1.92B vs. est. $1.93B; Q4 adj Ebitda fell -46.8% y/y to $689.9M; 4q adj free cash flow $434.0M, -18% y/y; qtrly loss from continuing operations increased 162.4% yoy on a reported basis to $638.3 million

·     Telephone Data Systems (TDS) Q4 EPS $0.11 vs. est. $0.04; Q4 revs $1.37B vs. est. $1.36B; Sees 2022 US Cellular adjusted EBITDA $925m-$1.075B; and adjusted EBITDA $260m-$290m

 

Technology

·     Roku Inc. (ROKU) shares fall -20%; Q4 EPS $0.17 vs. est. $0.04; Q4 revs miss at $865.3M vs. est. $893.1M; guides Q1 revs $720M vs. est. $751M Q1 adj Ebitda $55M vs. est. $78.4M; for 2022, expect ongoing supply chain disruptions will affect the broader consumer electronics space, and the tv industry in particular; Q4 qtrly active accounts 60.1 mln vs 51.2 mln

·     Intel Inc. (INTC) sees FY22 EPS $3.50 vs. est. $3.54; sees FY22 revenue $76.0B vs. est. $74.9B; sees long term growth in mid-high single digits in 2023-24, 10-12% by 2026; said gross margins are expected to expand from the 51%-53% range over the next 3-years to 54%-58% in 2025-26

·     Appian Corp. (APPN) 4Q adj EPS ($0.16) vs est. ($0.23) on revs $105Mm vs est. $95.3Mm; guides 1Q adj EPS loss $0.12-0.15 vs est. loss $0.20 and revs $106-108Mm vs est. $102.7Mm; guides FY revs $444-446Mm vs est. $424.3Mm and FY adj EPS loss $0.80-0.83 vs est. loss $0.85

·     Cambium Networks (CMBM) 4Q adj EPS $0.16 vs est. $0.15 on revs $78.7Mm vs est. $76.1Mm; guides 1Q revs $77.5-81.5Mm vs est. $79.4Mm and adj EPS $0.10-0.15 vs est. $0.21

·     Cognex (CGNX) Q4 EPS $0.30 vs. est. $0.22; Q4 revs $244M vs. est. $222.9M; sees Q1 revs $265M-$285M vs. est. $249.93M; sees Q1 gross margin in low-70% range; q1 2022 operating expenses are expected to be relatively flat with q4-21

·     CyberOptics Corp (CYBE) 4Q EPS $0.45 vs est. $0.25 on sales $22.1Mm vs est. $20.9Mm; guides 1Q sales $22-24Mm vs est. $22.75Mm

·     Dropbox (DBX) Q4 adj EPS $0.41 vs. est. $0.37; Q4 revs $565.5M vs. est. $558.1M; qtrly total ARR ended at $2.261B, an increase of $43.1M q/q and an increase of 11.8% y/y; qtrly paying users ended at 16.79 mln, as compared to 15.48 mln for same period last year; qtrly average revenue per paying user was $134.78, as compared to $130.17 for same period last year

·     Globant SA (GLOB) Q4 adj EPS $1.07 vs est. $1.02 on revenue $379.8M vs est. $359.4M; reached $1B in full-year revenue for the first time; sees FY22 adj EPS at least $4.86 vs est. $4.74 with Q1 revs at least $395M vs est. $366M and FY revs at least $1.751B vs est. $1.646B

·     Keysight Technologies (KEYS) Q1 adj EPS $1.65 vs est. $1.55 on revenue $1.25B vs est. $1.24B; orders +22% YoY to 1.5B; sees Q2 adj EPS $1.63-$1.69 vs est. $1.64 on revenue $1.29B-$1.31B vs est. $1.29B

·     Nlight Inc. (LASR) Q4 adj EPS loss (-$0.01) vs. est. $0.03; Q4 revs $67.5M vs. est. $69.4M; sees Q1 revenue $61M-$67M vs. est. $69.78M; sees Q1 gross margin to be in the range of 21% to 25% and Adjusted EBITDA to be approximately break-even

·     Federal and state regulators have widened their investigations into how Activision Blizzard Inc.’s (ATVI) leadership handled workplace misconduct claims, according to documents and people familiar with the probes, as the videogame giant works to complete a planned $75 billion sale to Microsoft Corp. (MSFT), the WSJ reports