Hammerstone’s Early Look

By admin | 02/14/2020

Friday, February 14, 2020

U.S. stock futures are edging higher, looking to rebound after posting its first daily loss in a week on Thursday as markets dealt with reports of a nearly 10-fold spike in reported coronavirus cases in the Chinese province at the epicenter of the outbreak. Last night, figures were updated again as China’s Hubei province reported 116 new coronavirus deaths – a further 4,823 cases had been detected in Hubei, taking the total in the province to 51,986. Over four fifths of the province’s new cases were in Wuhan, as per Reuters. Markets are still on track for solid gains on the week following more dovish commentary from Fed Chairman Powell earlier this week in his testimony on Capitol Hill and a generally well received set of earnings results again. U.S. Treasury prices ended mixed and little changed, as the two-year yield gained a basis point to 1.45% and the 10-year yield trimmed a basis point to 1.62%. In Asian markets, The Nikkei Index lost -140 points to 23,687, the Shanghai Index gained 10 points to 2,917 and the Hang Seng Index rose 85 points to 27,815.In Europe, the German DAX is up about 20 points to 13,765, while the FTSE 100 is little changed at 7,450.

Market Closing Prices Yesterday

• The S&P 500 Index dropped -5.51 points, or 0.16%, to 3,373.94
• The Dow Jones Industrial Average fell -128.11 points, or 0.43%, to 29,423.31
• The Nasdaq Composite slipped -13.99 points, or 0.14%, to 9,711.97
• The Russell 2000 Index advanced 4.36 points, or 0.26% to 1,693.74

Events Calendar for Today

• 8:30 AM EST       Import Prices MoM for January…est. (-0.2%)
• 8:30 AM EST       Retail Sales MoM for January…est. 0.3%
• 8:30 AM EST       Retail Sales – Less Autos for January…est. 0.3%
• 9:15 AM EST       Industrial Production MoM for Jan…est. (-0.2%)
• 9:15 AM EST       Capacity Utilization for Jan…est. 76.8%
• 10:00 AM EST     Business Inventories for December…est. 0.1%
• 10:00 AM EST     University of Michigan Confidence, Feb-F…est. 99.4
• 1:00 PM EST        Baker Hughes Weekly Rig Count

Earnings Calendar:

• Earnings Before the Open: ABR, AL, AXL, ESNT, IMGN, MGP, NWL, POR, PPL, SXT, TEX

Other Key Events:

• American Society of Clinical Oncology 2/13-2/15, in San Francisco
• KBW Inc. Financial Services Conference, 2/13-2/14, in Miami, FL

World News

• Germany’s economy stalled in the fourth quarter, as the country’s gross domestic product remained flat at 0.0% compared with the previous quarter, which was below economists’ expectations of a 0.1% expansion. Following the revision, Germany’s GDP increased 0.2% in the prior period, compared with a first estimate of a 0.1% rise.
• China’s Hubei province reports 116 new coronavirus deaths- A further 4,823 cases had been detected in Hubei, taking the total in the province to 51,986. Over four fifths of the province’s new cases were in Wuhan, as per Reuters

Sector News Breakdown

Consumer

• Tesla (TSLA)65M share offering priced at $767 per share
• Delphi Technologies (DLPH) Q4 EPS 62c/$1,06B vs. est. 52c/$1.02B; said restructuring plan ahead of plan; announced compelling transaction with BorgWarner to enhance propulsion technologies leadership
• eBay Inc. (EBAY) completes sale of StubHub; guides 1Q net revs $2.31-2.36B, sees adj EPS $0.72-0.75; guides FY net revs $9.56-9.76B (was $10.72-10.92B), sees FY adj EPS $3.00-3.10
• Mohawk (MHK) Q4 EPS $2.25/$2.4B vs. est. $2.20/$2.42B; sees Q1 EPS $1.90-$2.00 vs. est. $2.07; sees accelerating performance in second half of FY20
• Mattel (MAT) Q4 EPS 11c on revs $1.47B vs. est. 3c and $1.5B; 4Q adjusted gross margin 48.9% above est. 46.2%; said its structural Simplification run-rate savings of $875 million exiting 2019, exceeding target of $650 million; said dolls sales were down -5% YoY, driven by decline in American Girl while Infant, Toddler and Preschool -9% due to declines in Fisher-Price Friends; sees 2020 gross sales growth as reported up 1.0%-2.5%
• Newell Brands (NWL) reports Q4 normalized EPS 42c/$2.6B vs. est. 39c/$2.58B; sees FY20 normalized EPS $1.46-$1.56 on revs $9.4B-$9.55B vs. est. $1.55 and $9.66B

Energy, Industrials & Materials

• Chemours (CC) Q4 EPS 56c on sales $1.35B vs. est. 42c and $1.35B; Q4 adj Ebitda $227M vs. est. $216M; sees 2020 adjusted Ebitda $1.05 billion to $1.25 billion above est. $1.16 billion and EPS $2.60-$3.55 vs. est. $3.17
• Canadian National (CNI) announced that the company has been forced to initiate a disciplined and progressive shutdown of its operations in Eastern Canada.
• Terex (TEX) Q4 adj EPS 36c on revs $885M vs. est. 19c and $921.1M; guides 2020 EPS $1.85-$2.35 vs. est. $2.30 and revenue about $3.9B vs. est. $3.92B

Healthcare

• AstraZeneca PLC (AZN) said core operating profit fell in the final quarter of the year, missing analysts’ expectations, and guided for growth in the year ahead; said core operating profit slid 29% to $1.55B vs. est. $1.80B and total revenue rose 3.9% to $6.66B, also falling short of analysts’ expectations of $6.73B at the top line.
• DexCom (DXCM) 4Q adj EPS $1.15 vs. est. $0.74 on revs $462.8Mm vs. est. $442.4Mm; affirms FY20 revenue view of $1.725B-$1.775B vs. est. $1.77B and affirms FY20 Gross profit margin of approximately 64% and operating margin of approximately 13%
• Ultragenyx (RARE) Q4 EPS loss ($1.62) vs. est. loss ($1.63); 4Q cash and other $760.4 million, +65% YoY; 2020 Crysvita revenue in Ultragenyx territories guidance of $125 million to $140 million
• SmileDirectClub (SDC) promises to fix customers’ smiles for about a third of the cost of traditional braces with at-home teeth straightening, but a number of patients say the aligners instead caused painful problems – NBC news reported
• Deciphera (DCPH)182M share Secondary priced at $55.00
• CannTrust Holdings Inc. (CTST) said it plans to submit documents to regulators Feb. 14 that detail how it has fixed the issues at its Niagara, Ontario facility and in support of the reinstatement of its license there

Technology, Media & Telecom

• S. Commerce Dept announces it is extending a Temporary General License for Huawei and its non-U.S. affiliates on the entity list for 45 days.
• Alteryx (AYX) 4Q revs $156.5Mm, adj EPS $0.64; guides 1Q revs $105-108Mm vs. est. $105.5Mm; FY20 forecast includes $555-565M in revenue (consensus: $522.5M) and EPS of $0.80-0.91 (consensus: $0.82); Q4 non-GAAP gross profit margin was 93%, flat on the year
• Arista Networks (ANET) Q4 EPS $2.29 on revs $552.5M vs. est. $2.10 and $550.98M; guides Q1 revenue $522M-$532M vs. est. $523.29M and sees Q1 non-GAAP operating margin of approximately 34%; announces the acquisition of Big Switch Networks
• CarGurus (CARG) shares fell -18%; 4Q adj EPS $0.17 vs. est. $0.14; guides 1Q adj EPS $0.07-0.08 below est. $0.15, sees 1Q revs $156.5-159.5Mm vs. est. $163.8Mm; guides 2020 adj EPS $0.50-0.55 vs. est. $0.66, sees 2020 revs $664-676Mm vs. est. $709Mm
• DataDog (DDOG) 4Q adj EPS $0.03 on revs $113.6Mm vs. est. (2c) and $102.4M; guides 1Q adj loss/share 1c-2c vs. est. loss/share 3c, sees 1Q revs $117-119Mm vs. est. $109.3Mm; guides 2020 adj loss/share 3c-7c vs. est. loss/share 9.7c, sees 2020 revs $535-545Mm vs. est. $503.8Mm
• Expedia (EXPE) Q4 adj EPS $1.16 on revs $2.75B vs. est. $1.14 and $2.77B; 4Q gross bookings $23.25B, +5.9% YoY while 4Q room nights stayed +11% vs. +11% YoY and 4Q adjusted Ebitda $478M topping the $451M est.; Domestic gross bookings rose 7% and international gross bookings were up 4%; issued 2020 profit forecast for “double-digit” growth, topping analysts’ estimates
• GoDaddy (GDDY) Q4 EPS 34c/$780.4M vs. est. 31c/$777.18M; sees 2020 revenue $3.32B vs. est. $3.31B and sees 2020 unlevered free cash flow $835M, CapEx $85M; guides Q1 revs $795M vs. est. $788.6M
• LivePerson (LPSN) shares fell -11%; Q4 EPS loss (43c) on revs $79.1M vs. est. loss (8c)/$78.91M; Q4 EPS includes charges of 7c per share, comprised of $0.1M of restructuring, $1.7M of litigation costs and $2.6M of non-cash interest expense; sees FY20 EPS ($1.64)-($1.54) vs. est. loss (25c)
• LogMeIn (LOGM) 4Q adj EPS $1.43 vs. est. $1.40 on revs $322.9M vs. est. $320.1M; will not be holding a conference call or be providing a financial outlook due to the Company’s previously announced proposed transaction w/affiliates of Francisco Partners & Evergreen Coast Capital
• Nvidia (NVDA) Q4 adj EPS $1.89 vs. est. $1.66 on revs $3.11B vs. est. $2.96B; 1Q rev guide cut by $100Mm on coronavirus impact; reported a 56% gain in gaming sales from a year ago to $1.49B but was below the $1.52B est.; posted a 43% surge in data-center sales to a record $968M, well above the $825.8M estimate
• Roku (ROKU) 4Q EPS (13c) vs. est. (14c) on revs $411.2Mm vs. est. $391.7Mm; guides 1Q net revs $300-310Mm vs. est. $296.8Mm, sees adj EBITDA loss $18-23Mm vs. est. profit $4.17Mm; guides 2020 revs $1.58-1.62B vs. est. $1.62B, sees 2020 adj EBITDA loss $10Mm; reports Q4 streaming hours up 16.3B y/y to record-high 40.3B
• Talend (TLND) Q4 EPS loss (39c) on revs $66.9M vs. est. loss (20c) and $66.26M; said Q4 revs were up 20% YoY and total ARR of $243.1M, up 23% year-over-year; now have over 2,250 cloud customers and cloud has become the largest contributor to new ARR; sees Q1 EPS loss (30c)-(26c) vs. est. loss (25c) and sees Q1 revenue $64.9M-$65.9M vs. est. $68.68M
• Yelp (YELP) Q4 EPS 24c/$268.8M vs. est. 60c/$273.65M; 4 Adjusted EBITDA1 grew to $61M, up 15% YoY; said ended the year with double-digit revenue growth in the fourth quarter and that momentum has continued into 2020, giving us confidence in our ability to achieve our long-term financial targets; authorizes $250M stock buyback

Want a free trial to The Hammerstone Report 4x Daily ? Sign-up for a trial today at https://www.hammerstonemarkets.com/

Please be sure to check out The Hammerstone Pro Feed; News and Analysis for the Informed Trader at https://www.hammerstonemarkets.com/pro-trader/#get-started

***DISCLAIMER/LIMITATION OF LIABILITY: Catena Media Financials US, Inc, (D.B.A. Hammerstone Markets) (the “Report”) provides information and data and does NOT provide any individual investment advice or money management assistance and does NOT attempt to influence the sale or purchase of securities. The Report is intended for informational purposes only and does not claim to be actionable for investment decisions. The information contained in the Report has been obtained from sources deemed to be reliable but is not represented to be complete, and it should not be relied upon as such. The Report does not purport to be a complete analysis of any security, issuer, or industry and is not an offer or a solicitation of an offer to buy or sell any securities. The Report is prepared for general information purposes only and does not consider the specific investment objectives, financial situation, and particular needs of any individual subscriber, person, or entity. This e-mail and any attachment(s) are believed to be free from virus. However it is the responsibility of the recipient to ensure that they are virus free. We do not accept any liability for any loss or damage arising in any way from the receipt, opening or use of this e-mail and any attachment(s). Nothing on the Hammerstone Platform is a recommendation that you purchase, sell or hold any security or other investment, or that you pursue any investment style or strategy.