>>> US Early premarket gappers

Early premarket gappers

  • Gapping up:
    • TSLA +18.4%, MKSI +14.1%, MX +8.6%, PYPL +8%, ALGN +7.6%, NOW +7.3%, LRCX +6.8%, TAL +6.6%, STM +6.2%, EW +5.9%, SAVE +5.8%, VAR +5.8%, FFIV +5.6%, RRC +5.5%, KRC +5%, AMP +5%, PTC +4.6%, WPG +4.5%, PTEN +4.3%, AZN +4%, CMRE +3.8%, PDS +3.8%, MR +3.7%, ASGN +3.6%, AYX +3.5%, BMRN +3.5%, NXGN +3.5%, ORLY +3.4%, AMAT +3.3%, PLXS +3.3%, QEP +2.6%, TWLO +2.5%, SLM +2.2%, KLAC +2.1%, SEIC +2.1%, SQ +2%, CLB +1.7%, LUV +1.6%, VLO +1.5%, SPLK +1.2%, TEAM +1.2%, TRTN +1.2%, MSFT +1%, AEM +0.9%, DHT +0.9%, XEL +0.9%
  • Gapping down:
    • NOK -18.2%, TXMD -13.3%, NTGR -12.4%, FTI -9.2%, GGG -7.9%, EBAY -6.9%, F -4.2%, RBS -3.6%, LMAT -2.8%, MMM -2.8%, KRA -2.5%, TECK -2.3%, ACOR -2%, ARI -1.4%, CUZ -1.4%, SWK -1.2%, CVBF -1.1%, XLNX -0.8%, PKG -0.8%, GPI -0.7%, MSM -0.6%, GM -0.5%

>>> After Hours Summary: TSLA +20%, MKSI +1



After Hours Summary: TSLA +20%, MKSI +13%, ALGN +9%, FFIV / MX +8.5%, PYPL +8%, EW / LRCX / NOW +6% are higher while NTGR -12%, EBAY -6%, F -3%, XLNX -2% are lower following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: TSLA +20.2%, MKSI +13%, ALGN +8.7%, FFIV +8.5%, MX +8.5%, PYPL +8.1%, EW +6.2%, LRCX +6.2%, NOW +5.9%, PTC +4.6%, SAVE +4.6%, WPG +4.5%, BMRN +3.8%, ORLY +3.2%, QEP +2.6%, CMRE +2.5%, AEM +1.7%, MSFT +0.5%

Companies trading higher in after hours in reaction to news: MR +3.7% (anticipates third quarter 2019 production to be above the high end of the previously announced guidance of between 600-615 MMcfe per day and to exceed current consensus expectations), AYX +3% (being attributed to Capitalize for Kids conference Tudor mention), AMAT +2.9% / KLAC +2.1% (following LRCX earnings), SQ +1.9% (higher with PYPL; also Square and simPRO partner to provide payment processing options to field service professionals), TWLO +2.1% / TEAM +1.2% / SPLK +0.9% (following NOW earnings/guidance)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: NTGR -11.8%, FTI -6.6% (light volume), EBAY -5.9%, F -2.6%, XLNX -1.7% (also increases by $1 bln the Company's authorization to repurchase its debt and equity securities), ARI -1.4%

Companies trading lower in after hours in reaction to news: TXMD -16.8% (launches public offering of 22.0 mln shares of common stock and reports prelim Q3 revs of $7.82-8.3 mln vs. $7.85 mln S&P Capital IQ Consensus), ACOR -2% (implements corporate restructuring, provides third quarter 2019 update), GM -0.8% (following F earnings

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance:

  • REZI -37.5% (reports prelim Q3 revenues below consensus and lowers FY19 adj EBITDA guidance; has begun a comprehensive operational and financial review; names Robert Ryder as interim CFO), IRBT -19.1%, CADE -11.2%, TXN -8.4%, NOW -7.8% (appoints Bill McDermott as CEO, succeeding John Donahoe, who is stepping down to become CEO of Nike (NKE) in January; provides preliminary Q3 results and FY19 financial outlook), HA -6.6%, WHR -5.2%, CSGP -4.4%, SKX -3.7%, RES -2.9%, EEFT -2.8%, SIX -2.6%, LLY -2.6%, WGO -1.8%, CMG -1.7%, LRN -1.4%, CNI -1.2%, BYD -1%, VCYT -0.8%, UCBI -0.8%, WM -0.8%, HLT -0.6%

Select semiconductor/related names showing weakness:

  • ON -4.4%, MXIM -4%, ADI -3.3%, MCHP -3%, SWKS -2.8%, MRVL -2.5%, SMH -2.1%, SOXX -1.9%, AVGO -1.9%, NVDA -1.9%, QCOM -1.9%, XLNX -1.8%, AMAT -1.7%, INTC -1.6%, MU -1.5%, AMD -1.5%, TSM -1.3%, LRCX -1.3%, STM -0.9%

Select NOW peers trading lower:

  • WDAY -2%, CRM -1.6%, TWLO -1.6%

Other news:

  • MGNX -7.9% (reports top line results from second interim overall survival analysis for Phase 3 SOPHIA study of margetuximab)
  • OPK -7.9% (announces proposed public offering of up to $100 mln of shares of its common stock)
  • NMFC -2.4% (commences underwritten offering of 8,000,000 shares of its common stock)

Analyst comments:

  • WBA -1.7% (downgraded to Neutral from Overweight at JP Morgan)
  • KIM -0.7% (downgraded to Equal Weight from Overweight at CapitalOne)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:

  • MANH +7.1%, TER +6.2%, BSX +4.8%, OC +4%, TMO +4%, ABB +3.6%, HCSG +3.4%, CLF +3.4%, USNA +3.3%, ALXN +3.2%, TDY +2.6%, CSTM +2.4%, CSL +2%, FMBI +1.8%, ROL +1.8%, ANTM +1.6%, VNE +1.5%, BA +1.5%, SLAB +1.4%, SNAP +1.3%, LAD +1.3%, NAVI +1.2%, DFS +1%, NTB +0.7%, NDAQ +0.7%, LPL +0.6%, CAT +0.5%

Other news:

  • HNGR +10% (to join S&P SmallCap 600, effective prior to the open on October 28)
  • MRNA +4.2% (Moderna receives FDA Fast Track designation for mRNA-3927)
  • BIIB +2% (continued strength; also updates on legal matters in 10-Q, has participated in preliminary discussions with the government regarding potential resolution of aspects of inquiry into the company's relationship with non-profit organizations)
  • AXGT +1.3% (announces preliminary data from an expanded access study administering investigational AXO-AAV-GM2 gene therapy in two patients with infantile Tay-Sachs disease)
  • HAS +1% (following yesterday's sharp earnings related decline; CEO interviewed on CNBC MadMoney after the close)

Analyst comments:

  • SENS +4.6% (initiated with a Buy at Stifel)
  • TNK +2% (upgraded to Buy from Hold at Jefferies)
  • SNAP +1.3% (upgraded to Overweight from Neutral at JP Morgan)
  • CRWD +0.9% (initiated with a Buy at Nomura)
  • KO +0.5% (upgraded to Buy from Neutral at UBS)

>>> Caterpillar misses by $0.24, misses on revs; guides FY19 EPS below consensus

Caterpillar misses by $0.24, misses on revs; guides FY19 EPS below consensus, revs below consensus (133.69)
  • Reports Q3 (Sep) earnings of $2.66 per share, $0.24 worse than the S&P Capital IQ Consensus of $2.90; revenues fell 5.6% year/year to $12.76 bln vs the $13.49 bln S&P Capital IQ Consensus. The primary driver of the decline in sales and revenues was a $1.2 billion movement in dealers' inventories. Dealers decreased their inventories about $400 million during the third quarter of 2019, after increasing their inventories about $800 million during the third quarter of 2018. "Our volumes declined as dealers reduced their inventories, and end-user demand, while positive, was lower than our expectations."
  • Co issues downside guidance for FY19, lowers EPS to $10.90-11.40 from the low end of $12.06-13.06 vs. $11.65 S&P Capital IQ Consensus; sees FY19 revs modestly lower from $54.7 bln vs. $55.72 bln S&P Capital IQ Consensus.
  • "In the fourth quarter, we now expect end-user demand to be flat and dealers to make further inventory reductions due to global economic uncertainty," said Umpleby. "Caterpillar's improved lead times, along with these dealer inventory reductions, will enable us to respond quickly to positive or negative developments in the global economy in 2020. We are expanding our offerings and investing in services, including digital capabilities, to drive long-term profitable growth, while continuing to achieve our Investor Day targets for improved financial performance.

>>> Alexion Pharma beats by $0.32, beats on revs; raises FY19 guidance, announce

Alexion Pharma beats by $0.32, beats on revs; raises FY19 guidance, announces new $1 bln share repurchase authorization (99.28)
  • Reports Q3 (Sep) earnings of $2.79 per share, excluding non-recurring items, $0.32 better than the S&P Capital IQ Consensus of $2.47; revenues rose 23.0% year/year to $1.26 bln vs the $1.24 bln S&P Capital IQ Consensus.
  • In October 2019, the Board of Directors approved a new share repurchase authorization of $1 billion. The repurchase program does not have an expiration date and we are not obligated to acquire a particular number of shares of common stock.
  • Co raises guidance for FY19, sees EPS of $10.25-10.40 (Prior $9.65-9.85), excluding non-recurring items, vs. $9.93 S&P Capital IQ Consensus; sees FY19 revs of $4.86-4.89 bln (Prior $4.75-4.8 bln) vs. $4.84 bln S&P Capital IQ Consensus

>>> US Early premarket gappers

Early premarket gappers

  • Gapping up:
    • HNGR +10%, MANH +7.1%, TER +6.2%, VNE +5%, SENS +4.6%, MRNA +4.2%, ABB +3.7%, SNAP +3.6%, HCSG +3.4%, USNA +3.3%, CSTM +2.4%, BIIB +2.1%, CSL +2%, FMBI +1.8%, HAS +1.7%, NAVI +1.2%, DFS +1%, NTB +0.7%, MTH +0.6%, LPL +0.6%, LLY +0.6%,
  • Gapping down:
    • REZI -34.7%, IRBT -18.9%, TXN -9.3%, NOW -9%, OPK -8.4%, HA -6.6%, MGNX -5.7%, WHR -5.2%, CSGP -4.4%, MXIM -4%, BYD -3.7%, ON -3.5%, MCHP -3.5%, ADI -3.5%, SWKS -2.8%, NMFC -2.7%, SIX -2.6%, UNFI -2.3%, XLNX -2.1%, SMH -2.1%, AVGO -2.1%, CMG -2.1%, LRCX -2%, SOXX -1.8%, QCOM -1.8%, NVDA -1.7%, INTC -1.6%, MU -1.5%, AMAT -1.4%, LRN -1.4%, TSM -1.3%, AMD -1.3%, WDAY -1.2%, CNI -1.2%, TWLO -1.1%, STM -1%, CRM -1%, FUN -0.9%

>>> Eli Lilly beats by $0.07, reports revs in-line; raises FY19 EPS above consen

Eli Lilly beats by $0.07, reports revs in-line; raises FY19 EPS above consensus, reaffirms FY19 revs guidance (109.84)
  • Reports Q3 (Sep) earnings of $1.48 per share, excluding non-recurring items, $0.07 better than the S&P Capital IQ Consensus of $1.41; revenues rose 3.2% year/year to $5.48 bln vs the $5.5 bln S&P Capital IQ Consensus, +4% ex-FX. The increase in revenue was driven by an 8 percent increase due to volume, partially offset by a 4 percent decrease due to lower realized prices. Revenue in the U.S. was essentially flat at $3.060 billion, as increased volume of 5 percent was offset by lower realized prices.
  • Co issues guidance for FY19, sees EPS of $5.75-5.85 from $5.67-5.77 due to a lower tax rate, excluding non-recurring items, vs. $5.72 S&P Capital IQ Consensus; sees FY19 revs of $22.0-22.5 bln vs. $22.23 bln S&P Capital IQ Consensus. Revenue growth is expected to be driven by volume from key growth products including Trulicity, Taltz, Basaglar, Jardiance, Verzenio, Cyramza, Olumiant, and Emgality. Revenue growth is also expected to benefit from the recent launch of Baqsimi. Revenue growth is expected to be partially offset by lower revenue for Cialis and other products that have lost patent exclusivity. Revenue growth is also expected to be partially offset by the negative impact of foreign exchange rates, a mid-single digit net price decline in the U.S. driven primarily by rebates and legislated increases to Medicare Part D cost sharing, patient affordability programs, price declines in some international markets and the impact of the product withdrawal of Lartruvo. Gross margin as a percent of revenue rate is still expected to be ~80.0 percent on a non-GAAP basis

>>> Hilton beats by $0.03, reports revs in-line; guides Q4 EPS below consensus

Hilton beats by $0.03, reports revs in-line; guides Q4 EPS below consensus (90.73)
  • Reports Q3 (Sep) earnings of $1.05 per share, $0.03 better than the S&P Capital IQ Consensus of $1.02; revenues rose 6.3% year/year to $2.4 bln vs the $2.39 bln S&P Capital IQ Consensus.
  • System-wide comparable RevPAR increased 0.4% on a currency neutral basis for the third quarter from the same period in 2018.
  • HLT opened 17,400 rooms in the third quarter, contributing to 15,600 net additional rooms, on track to deliver approximately 6.5% net unit growth for the full year.
  • Co issues downside guidance for Q4, sees EPS of $0.91-$0.96 vs. $0.99 S&P Capital IQ Consensus. System-wide comparable RevPAR is expected to be roughly flat on a currency neutral basis compared to 4Q18

>>> Snap beats by $0.01, beats on revs; Adj-EBITDA, DAU exceed guidance; guide

Snap beats by $0.01, beats on revs; Adj-EBITDA, DAU exceed guidance; guides Q4 revs in-line, Adj-EBITDA just below consensus; sees Q4 DAUs of 214-215 mln (14.00 -0.58)
  • Reports Q3 (Sep) loss of $0.04 per share, excluding non-recurring items, $0.01 better than the S&P Capital IQ Consensus of ($0.05); revenues rose 49.9% year/year to $446.2 mln vs the $436 mln S&P Capital IQ Consensus.
  • Adjusted EBITDA improved $96 million to $(42) million in Q3 2019, compared to the prior year and vs. guidance for ($85-60 mln)
  • DAUs were 210 million in Q3 2019, compared to 203 million in Q2 2019 and 186 million in Q3 2018, and vs. guidance for 205-207 mln.
  • Co issues guidance for Q4, sees Q4 revs of $540-560 mln vs. $553.64 mln S&P Capital IQ Consensus, sees Adj-EBITDA of $0-20 mln vs. $21 mln consensus
  • Slide Deck
  • Prepared Remarks
    • Time spent and viewership on our content platform continue to grow rapidly, with more than 100 Discover channels reaching a monthly audience of over 10 million viewers in Q3, and total time spent by Snapchatters watching Discover increasing 40 percent year-over-year.
    • Looking at our business today, there are clear investment areas across short, medium, and long term time horizons that are incremental to our investments in enhancing our core communication platform and growing our community. In the short term, meaning the next 1-3 years, we are focused on scaling our content and augmented reality platforms, making Snapchat content and augmented reality easier to create, easier to monetize, and more personalized. Over the medium term, the next 3-5 years, we will work to further enhance, scale, and monetize our maps and gaming platforms. Looking out over the long term, the next 7-10 years, we will work towards realizing our vision of computing overlaid on the world through wearable augmented reality.
    • We continue to improve our efficiency across our business, and our cloud-based infrastructure has dramatically reduced the need for ongoing capital expenditures, while simultaneously delivering low and declining infrastructure costs on a per user basis.
    • Average revenue per user was $2.12 in Q3, an increase of 33 percent year-over-year, with the highest rate of ARPU growth coming in North America at 43 percent.
    • As we look forward to Q4 we expect to continue to invest in the future of our business, to scale our business efficiently, and to make additional progress towards profitability and positive free cash flow. To begin, I will share with you that our financial guidance assumes DAU of 214 to 215 million in Q4, which implies a sequential increase in DAU of 4 to 5 million.