>>> US After Hours Summary: ZG +12%, YELP +11%, BKNG / DIS +5% are hig

After Hours Summary: ZG +12%, YELP +11%, BKNG / DIS +5% are higher, while MED -25%, TDC -19% are lower following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: TRUE +31%, FSLY +20.6%, STMP +18.1%, SIEN +16.1%, AAXN +14.5%, ZG +11.6%, YELP +11.2%, QNST +11.1% (also retains Goldman Sachs for review of strategic alternatives), EB +10.8%, SWCH +10%, CORT +8.7%, FARM +7.7% (also discloses CFO change), PLNT +7.4% (also appoints Jeremy Tucker as Chief Marketing Officer, effective November 20), GPRO +6.6%, GH +6.5%, LGF.A +6.4%, MIME +5.8%, CDAY +5.3% (CFO Arthur Gitajn to retire), BKNG +5.2%, DIS +5.2%, UEPS +5.2%, NET +4.2%, NCR +4.1%, PAR +3.8% (light volume), SWAV +2.9%, AMH +2.5%, MNST +2.4%, AMPH +2.2% (light volume), NLOK +1.4%, MTW +1.3%

Companies trading higher in after hours in reaction to news: CFMS +17.3% (announces FDA clearance of next generation Conformis Hip System), WKHS +10.9% (enters into intellectual property licensing agreement with Lordstown Motors Corp), PRTY +6.5% (modestly rebounding from today's 67% decline, was also downgraded to Market Perform at Telsey Advisory Group), NK +6.4% (announces presentation of results from Phase 2 trial of natural killer cell-based therapeutic in metastatic Merkel cell carcinoma), DB +2.7% (positive mention on CNBC's Fast Money), ZIXI +1.9% (ticking higher; initiated with Outperform at Wedbush; tgt $10)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: MED -24.9%, NVEE -22.1%, MOD -19.8%, TDC -18.7% (also names Victor Lund interim CEO following departure of Oliver Ratzesberger), ARLO -13.3%, RGR -12.8%, HEAR -11.2%, CWH -10.4%, TUSK -9.1%, GDOT -8.2%, PEN -8.1%, CTRE -5.9% (light volume), ENLC -5%, UPLD -4.9%, MTD -4.6%, TTD -4.4%, SVMK -4.3%, ALTR -3.9%, PETQ -3.6% (light volume), ATVI -2.2%, LADR -1.9% (light volume), TTWO -1%

Companies trading lower in after hours in reaction to news: ADMS -10.6% (files $200 mln mixed securities shelf offering; reports Q3 results), GPS -7% (names Chairman Robert Fisher to as interim CEO, sees Q3 EPS below consensus), AFMD -6.9% (IND has cleared the required 30-day review by the FDA for a Phase 1/2a clinical trial of AFM24; announces progress on NK cell engager collaboration with Roche Group's Genentech; commences public offering of common shares; size not disclosed), LXRX -6.4% (files $150 mln mixed securities shelf offering), WORK -4.1% (initiated with Underperform at Wedbush; tgt $14)

>>> Roku: Color on Quarter --> -15% Pre Market

Roku: Color on Quarter (141.05)
  • RBC notes Roku posted a Beat & Lower Q3, with the Revenue Beat much smaller than in prior 2 qtrs. Fundamental trends were robust, tho mixed. Q4 Guide was in line to below Street re: Revenue, Gross Profit & EBITDA, due in part to aggressive investments. Raising ests (tho, mostly inorganically) and PT to $160. Reit Outperform.
  • Needham notes Roku's 3Q19 reached key operating metrics including (most impressive to them) 32.3mm active accounts (ie, households), $22.58 ARPU, (up 30% y/y, well above linear TV's 15-22% reported CPM growth) and 10.3B hours streamed during 3Q. Each represented 30-68% y/y growth and all were above their estimates. 3Q19 revenue reached $261mm, up 50% y.y and in line with their estimate. Roku's Adj EBITDA loss of $0.4mm was much better than our projected loss of $7.6mm. Gross margins were light at 45.6% vs our 46.6% estimate, primarily driven by a shift to video ads which have a 50% margin vs other platform revenue where margins are 70%-80%, and 400 basis points lower hardware/player gross margins. Roku is guiding to 0% gross margins for its hardware in 4Q19. They also wonder whether sub rev shares have lower gross margins that AVOD rev shares.
  • Oppenheimer maintains their Outperform rating and $155 target after ROKU reported mostly in-line results, after several quarters of material upside. FY guidance is largely unchanged adjusting for dataxu acquisition. Revenue 2% above Street, +50% y/y (Platform +79% vs. +86% in 2Q), though active accounts slightly missed their estimate, as net adds were flat y/y and guidance suggests more aggressive Player investment in 4Q, with Roku Express launched globally. The impact of the SVOD "streaming wars" is unclear short term, as most deals have longer-term incentives/accounting, with limited 4Q impact. The high percentage of 4Q ad revenue generated from Black Friday to December 25 is limiting management's visibility at this point. 2020's poised to be a pivotal year for ROKU (UK launch, "streaming wars," dataxu acquisition and agency adoption).
  • Wedbush reiterates Neutral, $105 tgt

WSJ : Trump Wanted Attorney General Barr to Publicly Clear Him Over Ukraine Call

Trump Wanted Attorney General Barr to Publicly Clear Him Over Ukraine Call
Mr. Barr refused the request, which came after the White House released a rough transcript of the July 25 call with Ukrainian President Volodymyr Zelensky, an official said

WASHINGTON—President Trump wanted Attorney General William Barr to publicly declare that he hadn’t broken any laws during a phone call with the Ukrainian leader that is now at the heart of an impeachment inquiry, but Mr. Barr refused the request, an administration official said Wednesday.

Mr. Trump’s request for Mr. Barr to hold a news conference came shortly after the White House released a rough transcript of the July 25 call. In that call, Mr. Trump pressed Ukrainian President Volodymyr Zelensky to undertake investigations related to Democratic presidential candidate Joe Biden, as well as the 2016 election. Mr. Trump’s desire for such a public announcement was discussed among White House officials, who relayed it to the Justice Department, the official said.

A whistleblower from the intelligence community said the call showed Mr. Trump had tried to enlist a foreign power to help him in the 2020 presidential election, spurring House Democrats to launch an impeachment inquiry.

Mr. Trump’s request that his attorney general publicly exonerate him, earlier reported by the Washington Post, represented an extension of a willingness throughout his presidency to pressure the Justice Department to defend and support him.

It also sheds new light on Mr. Barr’s handling of the controversy surrounding the whistleblower complaint. Democrats have criticized him for his perceived closeness to the president and for not stepping aside from matters related to the Ukraine controversy. Mr. Trump repeatedly told Mr. Zelensky he would have the attorney general call to discuss the possible Biden investigation and other issues.

It couldn’t immediately be determined how hard Mr. Trump pressed for a news conference or why Mr. Barr declined to hold one. A department spokeswoman declined to comment.

After the transcript was released on Sept. 25, the Justice Department said it had evaluated the whistleblower’s complaint to determine whether Mr. Trump had violated campaign finance laws and concluded he didn’t. It declined to open a formal investigation.

Mr. Trump apparently wanted Mr. Barr, who associates said had advocated for the release of the transcript, to make a more public announcement.

It wasn’t the first time Mr. Trump sought to pressure the nation’s top prosecutor to more vigorously defend him. He frequently criticized his first attorney general, Jeff Sessions, for recusing himself from oversight of special counsel Robert Mueller’s investigation. He also lamented not having an attorney general who would protect him, the way he believed former attorneys general Robert Kennedy and Eric Holder had shielded the presidents who appointed them.

Mr. Trump also wanted former FBI Director James Comey to publicly say that he wasn’t personally under investigation in connection to Russia interference in the 2016 presidential election—an assurance the director had previously given the president privately. Mr. Comey refused, and Mr. Trump ultimately fired him. But Mr. Barr appears to remain in good standing with the president.

Mr. Trump has often praised Mr. Barr, while critics have said he more closely resembles Mr. Trump’s personal attorney than the top U.S. law-enforcement official.

Mr. Barr has denied he is Mr. Trump’s defender and instead has said he is defending the presidency.

Among Mr. Barr’s priorities has been an investigation into the origins of the Russia probe—an administrative review that has evolved into a criminal inquiry. Mr. Trump and his allies have long urged the Justice Department to look at whether Trump associates were unfairly targeted for surveillance. The president has praised and supported Mr. Barr’s efforts, giving him broad authority to declassify information and encouraging foreign leaders to cooperate with the probe.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance:

  • FOSL -27.9%, EYPT -24.2%, BAND -17.8%, TPIC -15.2%, PBYI -15.1%, ROKU -14.7%, GLUU -13.5%, INSG -13.4%, EXPE -12.6%, AAOI -10.3%, HL -10.1%, VERI -10%, RUBI -9.4%, QTWO -9.3%, VIVO -7.9%, UPWK -7.8%, RP -7.3% (also announced acquisition of Buildium), LCI -6.9%, QUOT -6.7% (also announced retirement of CFO Ronald Fior and acquisition of Ubimo), RLGY -6.3%, FSCT -5.7%, CVNA -5.5%, KGC -5%, TRIP -4.9% (also announced strategic partnership with Trip.com Group [TCOM]), STAY -4.9%, PGTI -4.9%, COMM -4.7%, RCII -4.2%, PLUG -4.2%, EQH -3.7% (also authorized $400 mln share repurchase program), BIP -3.6%, HIMX -3.4%, EAF -3.3%, TELL -3%, SEAS -2.7%, NCLH -2.5%, NVTA -2.1%, BRKS -1.8%, INSW -1.8%, IAG -1.6%, GTN -1.6%, VSLR -1.5%, SUN -1.5%, TPC -1.3%, DCP -1.3%, LOPE -1%

Other news:

  • QTNT -5.7% (prices offering of 12 mln shares of common stock at $7.00 per share)
  • EOLS -3.2% (prices offering of 5,217,000 shares of common stock at $13.00 per share)
  • YETI -3.2% (prices secondary offering of 10.0 mln shares at $29.00/share)
  • AM -2.3% (prices offering of 25,965,437 shares of common stock by selling shareholders with gross proceeds expected to be $171 mln)
  • DRRX -2.1% (to host key opinion leader conference call for DUR-928 Phase 2a alcoholic hepatitis study)

Analyst comments:

  • IONS -1.4% (downgraded to Underweight from Equal-Weight at Morgan Stanley)
  • TWTR -1.3% (downgraded to Underperform from In-line at Evercore ISI)
  • DVA -1% (downgraded to Mkt Perform from Outperform at Raymond James)