>>> Knight-Swift beats by $0.07, reports revs in-line; guides Q4 EPS in-line; gu

Knight-Swift beats by $0.07, reports revs in-line; guides Q4 EPS in-line; guides Q1 (Mar) EPS in-line (30.20)
  • Reports Q3 (Sep) earnings of $0.65 per share, excluding non-recurring items, $0.07 better than the S&P Capital IQ Consensus of $0.58; revenues rose 158.2% year/year to $1.35 bln vs the $1.35 bln S&P Capital IQ Consensus.
    • The year-over-year increase was largely driven by the inclusion of Swift's results for the full third quarter in 2018, compared to the 22 days after the September 8, 2017 merger date, in accordance with the accounting treatment applicable to the transaction. Additionally, our acquisition of Abilene Motor Express, Inc. ("Abilene") and our organic growth within the Knight Trucking, Knight Logistics, and Swift Intermodal segments contributed to the increase in revenue.
    • Co's trucking segments operated on a combined basis at an 84.9% Adjusted Operating Ratio, and co's efforts in the first half of 2018 and into the third quarter of 2018 resulted in stabilization of the Swift tractor fleet, which ended the third quarter at 14,779 operational tractors.
  • Co issues in-line guidance for Q4, sees EPS of $0.71-0.75, excluding non-recurring items, vs. $0.71 S&P Capital IQ Consensus.
  • Co issues in-line guidance for Q1 (Mar), sees EPS of $0.50-0.54, excluding non-recurring items, vs. $0.51 S&P Capital IQ Consensus.

FT : Iranians will not risk peace in order to make a political point

Iranians will not risk peace in order to make a political point
Many fear their country could turn into another Syria if the system collapses

History is repeating itself for Iran’s pro-democracy forces. Whenever they are positioned to make meaningful changes, the US corners them and they lose ground to hardliners.

It is still thrilling for me to remember the aspirations of young voters campaigning for President Hassan Rouhani, who won a landslide victory in May last year. They had hoped that the re-election of a centrist politician would send a message to Donald Trump that Iranians supported the 2015 nuclear accord and favoured detente with the US. Right or wrong, the majority of those voters chose not to give up on the goal of reforming the current system and to ignore the frightening alternatives.

But the US president withdrew from the nuclear accord last May, striking a big blow to Mr Rouhani, who found himself stuck with fresh economic and political challenges as a result of renewed US sanctions. The value of Iran’s currency, the rial, has fallen sharply this year and the US is set to reimpose oil and banking sanctions on November 4, which will cut the nation’s economic lifeline.

November 4 will be the 39th anniversary of the day in 1979 when Iranian revolutionaries took 52 US diplomats hostage in Tehran, partly to protest at US interference in the country. Alongside that, today both reformists and many ordinary Iranians see the imposition of oil sanctions against Iran as a modern version of the 1953 military coup, when the US helped royalists overthrow the democratically elected government of Mohammad Mossadegh and stop the nationalisation of the country’s oil industry.

Hardliners find the US’s newly hostile approach a godsend. Many people have lost hope in reforms and a prosperous future. Some threaten never to vote again. If this mood persists, hardliners can count on a low turnout to help them win the next parliamentary and presidential polls in 2020 and 2021, respectively. Conspiracy theorists say this is the outcome that hawks in Washington and rival regional countries favour.

In the years under Mohammad Khatami, a former reformist president who ruled from 1997-2005, western diplomats in Tehran saw his desperate attempts to secure a nuclear deal as part of a fake power struggle: Iranian politicians were all parts of the same theocratic system, they told me.

Back then, while Europe watched passively, the US called Iran part of the “axis of evil”. Reformists lost the presidential election to Mahmoud Ahmadi-Nejad, and hardliners boasted of big nuclear and regional achievements.

But this time, European nations realise the dire consequences of the US approach to a rare security deal in the volatile Middle East. Now, European states are respectful of Iran’s commitment to the nuclear accord while remaining critical of its regional and defence policies. Perhaps the US did not foresee this approach.

It may be too early to tell how Europe’s resistance is going to affect Iran’s domestic affairs. But thanks to Europe’s approach, I’ve noticed signs of relative calm. Mr Rouhani sounds more confident that his government may not bow to US pressure.

Iran’s president accuses Washington of seeking to bring about a regime change through “ economic war” and “media war”. But there is a feeling in Tehran that the Americans may have relied too much on fomenting public dissent as a way to encourage fundamental changes.

It is true that people regularly stage street protests and chant anti-regime slogans. Big demonstrations can happen — as they did in December, when people called for the arrival of a secular “Iranian republic”.

But both Iran’s political leaders and its people are going through a complicated transition period to open up the country and rid it of some of its ideological and historical baggage.

Saeed Laylaz, a reformist and expert on political economy, says that while the Republic’s officials may be ready to step down, “it is the people who are determined not to let the system collapse”. Indeed, many Iranians fear US policies could turn their country into another Syria instead of helping them weather the storm safely.

Perhaps America’s current leaders should re-read Iran’s history and this time learn a different lesson. Iranians love peace and will not readily risk their security, even though they may feel disillusioned now.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance
:

  • NDLS -14.1% (also announces launch of secondary offering of 8.75 mln shares of its Class A common stock by selling stockholders), STM -12%, MKSI -7.3%, SIX -7%, IRBT -6.6%, TXN -6.2%, LPL -4.9%, DB -3.8%, BABY -3.8%, T -3.5%, UPS -3.1%, CSL -3%, LH -2.7%, EW -2.6%, GD -2.5%, OC -2.2%, BSX -2.2%, UMBF -1% (light volume), ILMN -0.8%, QSR -0.7%

Select semiconductor related names showing weakness:

  • TXN -6.7%, NXPI -2.2%, ON -2.1%, ADI -2%, CY -1.9%, SOXX -1.5%, SMH -1.3%, MU -1.2%, XLNX -0.8%, AMD -0.5%, NVDA -0.5%

Other news:

  • IGC -4.8% (ongoing volatility)
  • LOVE -3.8% (files 2.0 mln share common stock offering by selling stockholders)
  • BGFV -3.4% (Akorn will replace Big 5 Sporting Goods in the S&P SmallCap 600)
  • VRRM -3.3% (files for offering of 146,381,878 shares of Class A Common Stock and 6,666,666 warrants to purchase Class A Common Stock by holders)
  • NOG -1.2% (files 100.84 mln share common stock offering by selling stockholders)
  • BKS -0.9% (Special Committee of the Board of Directors assigned to evaluate strategic alternatives for the Company has selected Evercore as its financial advisor and Baker Botts L.L.P. as its legal advisor)

Analyst comments:

  • WING -1.9% (downgraded to Hold from Buy at Stifel)
  • QEP -1.7% (downgraded to Market Perform at Wells Fargo)
  • YUM -1.5% (downgraded to Hold from Buy at Stifel)
  • BJRI -1.3% (downgraded to Hold from Buy at Stifel)
  • ABR -1.3% (downgraded to Underweight from Neutral at JP Morgan)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance
:

  • TRVG +15.7%, ZIXI +10.5%, USNA +5.8% (also announces buyback plan), TER +4.8%, VAR +4.5%, UMC +4.5%, BA +4.3%, RRC +4.1%, LRN +3.9% (light volume), ALXN +3.3%, CNI +2.9% (also announces new normal course issuer bid for share repurchase of up to 5.5 mln common shares), COF +2.8%, SEIC +2.5%, BXMT +2.3%, BCS +2%, NOC +1.9%, TMO +1.4%, AMP +0.8%

Other news:

  • CMTA +27.7% (plans to submit New Drug Application for palovarotene for the treatment of FOP based on positive phase 2 results)
  • LIQT +16.7% (schedules investor update call on tomorrow October 24 at 10am ET)
  • TSLA +2.5% (after making notable move higher on Citron report)
  • CMP +2% (following today's 20% move lower on guidance)
  • PTI +2% (prices 11 mln shares of common stock at $6.75 per share)
  • KMX +1.4% (approves $2 bln expansion of share repurchase program)
  • TGA +1% (provides operations update)
  • SBLK +0.8% (announces termination of debt restructuring restrictions and provides $625 mln financing update), . 

Analyst comments:

  • CRBP +5.7% (initiated with a Buy at B. Riley FBR; tgt $22)
  • NEO +3.9% (upgraded to Strong Buy at First Analysis Sec)
  • SM +3.2% (upgraded to Outperform at Wells Fargo)
  • DDD +3.2% (upgraded to Neutral from Underweight at Piper Jaffray)
  • LMT +2.4% (added to Conviction Buy List at Goldman)
  • LULU +1.9% (upgraded to Buy from Hold at Canaccord Genuity)
  • AVY +1.2% (upgraded to Overweight from Neutral at JP Morgan)
  • VFC +1% (added to Focus List at JP Morgan)
  • PHM +0.8% (upgraded to Neutral from Sell at BTIG Research)

>>> UPS reports EPS in-line, revs in-line; reaffirms FY18 EPS guidance, raises F

UPS reports EPS in-line, revs in-line; reaffirms FY18 EPS guidance, raises FCF (114.24)
  • Reports Q3 (Sep) earnings of $1.82 per share, excluding non-recurring items, in-line with the S&P Capital IQ Consensus of $1.82; revenues rose 7.9% year/year to $17.44 bln vs the $17.48 bln S&P Capital IQ Consensus.
  • The U.S. Domestic segment experienced strong revenue growth of 8.1% to $10.4 billion, driven by high demand for the company's solutions and robust yield expansion compared to 3Q 2017. The segment also generated sequential yield improvements driven in part by a more disciplined approach to capture high-quality growth opportunities.
  • Export volume also increased across all regions and exports grew nearly 3% on top of 19% growth last year. Year-over-year comparisons are affected by the strong 3Q 2017 growth UPS experienced in Europe.
  • Co reaffirms guidance for FY18, sees EPS of $7.03-7.37, excluding non-recurring items, vs. $7.26 S&P Capital IQ Consensus. As previously guided, UPS expects 4Q18 adjusted EPS to increase about 15 percent, despite anticipated currency headwinds in emerging markets and one less operating day during peak season. The company is raising free cash flow guidance to over $5.0 billion in 2018 from $5B

>>> General Dynamics beats by $0.12, misses on revs

eneral Dynamics beats by $0.12, misses on revs
  • Reports Q3 (Sep) earnings of $2.89 per share, excluding non-recurring items, $0.12 better than the S&P Capital IQ Consensus of $2.77; revenues rose 20.0% year/year to $9.09 bln vs the $9.41 bln S&P Capital IQ Consensus.
  • The company's total backlog at the end of third-quarter 2018 was $69.5 billion, up 4.9 percent from second-quarter 2018

>>> Boeing beats by $0.11, beats on revs; guides FY18 EPS above consensus, incr

Boeing beats by $0.11, beats on revs; guides FY18 EPS above consensus, increases FY18 revenue guidance (349.61)
  • Reports Q3 (Sep) earnings of $3.58 per share, excluding non-recurring items, $0.11 better than the S&P Capital IQ Consensus of $3.47; revenues rose 3.8% year/year to $25.15 bln vs the $23.84 bln S&P Capital IQ Consensus.
    • Total company backlog at quarter-end was $491 bln, up from $488 bln at the beginning of the quarter, and included net orders for the quarter of $28 bln.
    • Commercial Airplanes booked 171 net orders during the quarter, valued at $13 bln. The 787 program has captured more than 100 orders in 2018 and nearly 1,400 orders since its launch. Co says backlog remains robust with more than 5,800 airplanes valued at $413 bln. Commercial Airplanes revenue guidance is reaffirmed at between $59.5 and $60.5 bln.
  • Co issues upside guidance for FY18, sees EPS of $14.90-15.10, excluding non-recurring items, vs. $14.64 S&P Capital IQ Consensus and vs prior guidance of $14.30-14.50; sees FY18 revs of $98-100 bln vs. $98.48 bln S&P Capital IQ Consensus and vs prior guidance of $97-99 bln.
  • Co reaffirms 2018 deliveries of 810-815 commercial airplane

>>> US Early premarket gappers


Early premarket gappers

Gapping up:

  • CMTA +35.4%, LIQT +15.2%, USNA +5.8%, TER +4.8%, ZIXI +4.7%, VAR +4.5%, RRC +4.1%, LRN +3.9%, SM +3.2%, CNI +2.9%, BXMT +2.3%, CMP +2%, WPG +1.6%, KMX +1.4%, TSLA +1.3%, COF +1.3%

Gapping down:

  • NDLS -14.1%, STM -10.6%, MKSI -10%, IRBT -8.5%, CSL -6.8%, TXN -6.5%, TXN -6.5%, EW -5.9%, DB -4.3%, LOVE -3.8%, BGFV -3.4%, VRRM -3.3%, IGC -3.2%, NXPI -2.8%, CHKP -2.8%, ON -2.1%, CY -1.9%, QEP -1.7%, SMH -1.7%, SOXX -1.7%, ADI -1.6%, AMD -1.6%, AI -1.6%, MU -1.5%, NVDA -1.3%, NOG -1.2%, UMBF -1%, AMZN -0.7%, ILMN -0.6%