Hammerstone Markets Early Look

By admin | 03/02/2022

·      The Canadian dollar rises as oil prices jump and the Bank of Canada is expected to start raising interest rates in a policy decision later this morning; the USD/CAD falls 0.2% to 1.2715 as the BOC is likely to raise its benchmark rate by 25 basis points to 0.50%

Sector News Breakdown

Consumer

·      Nordstrom (JWN) shares jump over 30% after 4Q EPS $1.23 vs est. $1.02 on sales $4.35B vs est. $4.39B, qtrly GMV +24%; guides FY revs +5-7% incl retail sales and credit card revs vs est. +3.7% and Ebit margin 4.6-6.0%; says 4Q inventory levels higher than planned but expects to reduce inventory relative to sales during 1Q – inventory up 19% while sales were down 1%

·      Urban Outfitters (URBN) 4Q EPS $0.41 vs est. $0.50 on sales $1.33B, qtrly retail comps +14%, total inventory +39.1%

·      PLBY Group (PLBY) 4Q EPS ($1.33) vs est. ($0.49) on revs $247Mm vs est. $235.3Mm, says loss largely driven by stock-based comp and non-cash charges

·      Ross Stores (ROST) authorizes $1.9B stock buyback and raises dividend; Q4 EPS $1.04 vs. est. $0.97; q4 sales $5.0B vs. est. $4.96B; sees 2023 comparable store sales to be flat to up 3% versus a 13% gain in fiscal 2021

·      Scientific game Corp (SGMS) board authorizes $750M share buyback; Q4 EPS $0.95 vs. est. $0.13; Q4 revs $580M vs. est. $558.5M; to be rebranded “light & wonder” and new symbol will be “LNW”; expects to significantly de-lever, targeting net debt leverage ratio range of 2.5x to 3.5x

·      B&G Foods (BGS) Q4 adj EPS $0.39 vs est. $0.42 on revenue $571.8M vs est. $591.6M; sees FY adj EPS $1.70-$1.85 vs est. $2.03 on revenue $2.07B-$2.125B vs est. $2.11B; gross profit in the qtr was impacted by higher-than-expected input cost inflation that is expected to continue to have a significant industry-wide impact in FY22

·      Dutch Bros (BROS) Q4 EPS $0.02, in-line with ests and revs $140.1M vs. est. $135M; sees FY22 revenue $700M-$715M vs. est. $692.6M; sees 2022 same shop sales growth in mid-single digits; sees 2022 capex in range of $175M-$200M and sees total system shop openings at least 30 in Q1

·      Grocery Outlet (GO) 4Q adj EPS $0.20 vs est. $0.20 on revs $782.7Mm vs est. $778.4Mm; guides FY net sales $3.33-3.38B vs est. $3.4B, comps +4-5%, gross margin about 30.6%, adj EBITDA $210-217Mm vs est. $222.5Mm and adj EPS $0.92-0.97 vs est. $1.02

·      GrowGeneration Corp. (GRWG) Q4 EPS loss (-$0.03) vs. est. loss (-$0.09); Q4 revs $90.6M vs. est. $89.09M; sees FY22 revenue $415M-$445M vs. est. $478.11M; sees FY22 adjusted EBITDA in the range of $30M-$35M; same-store sales at 26 locations decreased (-12.3%) in Q4

·      Inter Parfums (IPAR) Q4 EPS loss (-$0.04) vs. est. loss (-$0.20); Q4 revenue $210.7M vs. est. $210.8M; doubles quarterly dividend to 50c per share; affirms guidance

·      PAR Technology (PAR) 4Q adj EPS ($0.36) vs est. ($0.38) on revs $81.6Mm vs est. $76Mm

·      Purple Innovation (PRPL) Q4 adj EPS loss (35c) vs. est. loss (27c); Q4 revs $186.4M vs. est. $178.99M; names new CEO; sees Q1 revs $125M-$135M below consensus $195.66M and sees Q1 adjusted EBITDA ($26M)-($20M); sees FY22 revs $790M-$830M vs. est. $808.21M

·      The Beachbody Company, Inc. (BODY) Q4 EPS ($0.48) vs est. ($0.19) on revenue $216.3M vs est. $167.9M; announced a strategy to accelerate path to profitability that includes consolidating its streaming fitness and nutrition offerings into a single platform, reduce headcount by ~10% in Q1, and reduce cash use from operations by ~$110M in FY22; sees Q1 revenue $170M-$180M vs est. $200.3M, adj EBITDA ($25M)-($20M) vs est. ($24.25M);

·      WW International (WW) Q4 EPS $0.42 vs est. $0.36 on revenue $275.8M vs est. $279.3M; sees Q1 EPS ($0.31)-($0.26) vs est. ($0.12) on revenue about $300M vs est. $343.6M

Energy, Industrials and Materials

·      First Solar (FSLR) shares slide -15%; Q4 EPS $1.23 vs. est. $1.06; Q4 revs $900M vs. est. $917.6M; guides year sales $2.4B-42.6B vs. est. $2.73B; and sees year EPS flat to up $0.60 vs. est. $1.94; year-end 2022 ending net cash balance is projected to be in range of $1.1B-$1.35B; sees 2022 CAPEX $850M to $1.1B vs. est. $801.5M

·      Exxon Mobil (XOM) said it would exit Russia oil and gas operations that it has valued at more than $4 billion and halt new investment as a result of Moscow’s invasion of Ukraine.

·      Expeditors International (EXPD) disclosed that the previously announced cyberattack it suffered will have a “material adverse impact” on its business, revenue, expenses, cash flow and reputation.

·      Hannon Armstrong (HASI) files automatic mixed securities shelf

·      Plug Power (PLUG) Q4 EPS ($0.33) vs est. ($0.11) on revenue $161.9M vs est. $157.3M; reaffirms FY22 revenue goals of $900M-$925M (est. $898.2M), 2025 goals for $3B

·      Southwest Gas (SWX) said it plans to spin off a construction business that billionaire investor Carl Icahn has pushed the utility to sell

Financials

·      SoFi Technologies (SOFI) Q4 EPS ($0.15) vs est. ($0.17) on adj revenue $279.9M vs est. $279.3M; added 523K new members, +39% sequentially, and 906K total products, +51% sequentially; Q1 guidance for adj revenue $280M-$285M (vs est. $306.3M) includes the negative impact of the unexpected extension of the federal student loan payment moratorium to May 1, 2022; full-year revs are expected to be $1.57B vs est. $1.45B with adj EBITDA $180M vs est. $162.2M

·      ZipRecruiter, Inc. (ZIP) Q4 EPS $0.16 vs est. $0.12 on revenue $220M vs est. $207.1M; authorized a $100M share repurchase program; sees Q1 revenue $217M-$223M vs est. $208.9M, FY revenue $878M-$892M vs est. $846.1M

Healthcare

·      Gilead Sciences Inc. (GILD) said it received a complete response letter from the FDA regarding its application for an experimental HIV drug lenacapavir, a long-acting HIV-1 capsid inhibitor, for people with multi-drug resistant HIV. The FDA raised questions about the use of a specific type of vial and whether it’s compatible with the drug solution

·      Abbott Laboratories (ABT) recalled some Similac PM 60/40 cans and cases produced at a Michigan facility, after an infant who was exposed to the powdered baby formula died, the U.S. FDA said on Monday; recall ABT recalled certain Alimentum, Similac and EleCare baby formulas a few days earlier

·      Bionano Genomics, Inc. (BNGO) 4Q revs $6.3Mm vs est. $5.6Mm; guides FY revs $24-27Mm vs est. $28Mm

·      Cara Therapeutics (CARA) files $300M mixed securities shelf

·      ChemoCentryx, Inc. (CCXI) Total revenue of $32.2M in 2021 with $2.3M in Q4; TAVNEOS net product sales of approximately $1.0M in Q4 2021 following US FDA approval in ANCA-associated vasculitis; plans to initiate clinical development for TAVNEOS in lupus nephritis and to meet with FDA on the path forward in severe hidradenitis suppurativa and C3 glomerulopathy in 2022

·      GoHealth (GOCO) shares fall -14% as guides Q4 revenue $425M-$470M well below consensus $615.8M and sees Q4 adjusted EBITDA ($5.5M) to $8.5M.

·      Jazz Pharmaceuticals (JAZZ) Q4 adj EPS $4.21 vs. est. $3.64; Q4 revs $896.7M vs. est. $864.23M; sees FY22 EPS $16.00-$17.00 vs. est. $17.47; sees FY22 revs $3.46B-$3.66B vs. est. $3.64B

·      NanoString Technologies (NSTG) 4Q revs $42Mm vs est. $41.5Mm; guides FY revs $170-180Mm vs est. $179.2Mm, adj gr margin 56-58% and adj EBITDA loss $55-65Mm vs est. loss 83.4Mm

·      PetIQ, Inc. (PETQ) 4Q GAAP EPS ($0.49) vs est. ($0.36) on revs $196.6Mm vs est. $170.6Mm; sees 1Q net sales approx $270Mm vs est. $261.5Mm; guides FY net sales approx $985Mm vs est. $981.8Mm

·      Sarepta (SRPT) Q4 adj EPS ($0.77) vs est. ($1.13) on revenue $201.5M vs est. $198.6M; sees FY22 total revenue over $880M vs est. $908.5M

·      Senseonics Holdings (SENS) 4Q EPS $0.19 vs est. ($0.03) on revs $4.0Mm vs est. $3.98Mm; guides FY net revs $14-18Mm vs est. $20.8Mm

Media & Telecom

·      AMC Entertainment (AMC) Q4 adj EPS loss (-$0.11) vs. est. loss (-$0.26); Q4 revs rose to $1.17B vs. est. $1.09B; net loss for q4 improved to $134.4 million, including a non-cash impairment charge related to long lived assets of $77.2 million; currently has liquidity availability of more than $1.8 billion (including cash and undrawn revolver lines

·      ContextLogic Inc. (WISH) Q4 EPS in-line (9c) on revenue that fell -64% YoY to $289M vs est. $309.8M; the board approved a restructuring plan that will reduce headcount by ~15% and cost ~$3M in severance in addition to spending up to $21M to exit certain leases and related non-cash impairments of lease assets to achieve approx. $32M-$37M in annualized cost savings

·      Cardlytics, Inc. (CDLX) 4Q adj EPS ($0.15) vs est. ($0.42) on revs $90Mm vs est. $76.6Mm, qtrly MAUs 175.4Mm +7.2%, qtrly ARPU $0.49

Technology

·      Salesforce.com (CRM) Q4 EPS $0.84 vs. est. $0.75; Q4 revs rose 26% to $7.33B vs. est. $7.24B; said raising FY23 revenue guidance to $32.1 billion at the high-end of range, with non-GAAP operating margin of 20%, and operating cash flow growth of 22% y/y; guides Q1 revs $7.37B-$7.38B vs. est. $7.26B and sees Q1 EPS $0.93-$0.94 vs. est. $0.99

·      Arlo Technologies, Inc. (ARLO) 4Q adj EPS $0.04 vs est. ($0.03) on revs $142.9Mm vs est. $134.9Mm; guides 1Q revs $110-120Mm vs est. $95.5Mm and adj EPS loss $0.00-0.06 vs est. loss $0.05

·      Hewlett-Packard Enterprises (HPE) Q1 adj EPS $0.53 vs. est. $0.46; Q1 revs $6.96B vs. est. $7.03B; sees Q2 EPS $0.41-$0.49 vs. est. $0.44; raises FY22 adj EPS guidance $2.03-$2.17 from $1.96-$2.10 prior (est. $2.19) and reiterates free cash flow guidance of $1.8 to $2.0B

·      Jamf Holding Corp. (JAMF) 4Q adj EPS $0.02 vs est. $0.01 on revs $103.8Mm vs est. $100.3Mm; guides 1Q revs $104.5-106.5Mm vs est. $103.8Mm and adj op Inc $18-22Mm

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