Gapping up
In reaction to disappointing earnings/guidance:
- CVGI +14.4%, SMCI +11.4%, P +11%, TWI +9.6%, MDRX +8.9%, VIAV +8.6%, SHAK +8.6%, CATM +8.3%, CRC +8.2%, ACAD +7.5%, WTW +7.3%, WIFI +7.2%, MED +6.7%, CTRL +6.5%, ESNT +5.7%, PE +5.5%, BGS +5.5%, MTLS +5%, LYV +4.4%, SPPI +4.3%, STMP +4.2%, AKAO +4%, WING +3.6%, EC +3.6%, HMSY +3.6%, CYRX +3.5%, CC +3.5%, CARG +3.3%, IDXX +2.9%, AGO +2.8%, CBS +2.7%, CYBR +2.6%, SM +2.5%, ADMS +2.5%, CBOE +2.5%, IONS +2.5%, APPN +2.4%, AON +2.3%, CELG +2.3%, VIRT +2.2%, MSI +2.1%, NWL +1.8%, MAIN +1.7%, TXMD +1.6%, BABA +1.6%, STWD +1.5%, OLED +1.4%, ACIA +1.4%, BPY +1.4%, ALNY +1.3%, ITGR +1.1%
M&A news:
- AAXN +1.4% (acquires VIEVU)
Other news:
- PTLA +28.1% (receives FDA approval for Andexxa)
- AAPL +1.1% (CNBC reported Warren Buffet increased his Apple investment by 45% in Q1 to ~240 million shares, currently ~$43 billion)
- MDR +0.9% (to join S&P MidCap 400)
Analyst comments:
- FMC +1.2% (upgraded to Overweight from Equal-Weight at Stephens)
Celgene beats by $0.09, beats on revs; guides FY18 in-line; reaffirms 2020 outlook; Submission of NDA and MAA for ozanimod in relapsing multiple sclerosis expected in 1Q19
- Reports Q1 (Mar) earnings of $2.05 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus of $1.96; revenues rose 19.4% year/year to $3.54 bln vs the $3.47 bln Capital IQ Consensus.
- Revlimid sales +19% to 2.2 bln; Pomalyst/Imnovid +24% to $453 mln; Otezla +46% to $353 mln
- Co issues in-line guidance for FY18, sees EPS of $8.45 from $8.70-8.90 including Juno, excluding non-recurring items, vs. $8.45 Capital IQ Consensus Estimate; sees FY18 revs of $14.8 bln from $14.4-14.8 bln) vs. $14.81 bln Capital IQ Consensus Estimate.
- Submission of NDA and MAA for ozanimod in relapsing multiple sclerosis expected in Q1:19
- "Strong global demand and excellent commercial execution drove our exceptional first quarter results, leading to improvement in our 2018 financial guidance," said Mark J. Alles, Chairman and Chief Executive Officer of Celgene Corporation. "With multiple catalysts for growth expected over the next 12 to 18 months, we are reaffirming our 2020 outlook."
Alibaba beats by $0.03, beats on revs; guides FY19 revs above consensus (182.45)
- Reports Q4 (Mar) earnings of $0.91 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.88; rev grew 61% to $9.87 bln vs. $9.36 bln consensus.
Revenue from core commerce increased 62% year-over-year to RMB51,287 million (US$8,176 million).
Revenue from cloud computing increased 103% year-over-year to RMB4,385 million (US$699 million).
Revenue from digital media and entertainment increased 34% year-over-year to RMB5,272 million (US$840 million).
Revenue from innovation initiatives and others increased 8% year-over-year to RMB988 million (US$158 million).
Annual active consumers on our China retail marketplaces reached 552 million, an increase of 37 million from the 12-month period ended December 31, 2017.
Mobile MAUs on our China retail marketplaces reached 617 million in March 2018, an increase of 37 million over December 2017. - Co issues upside guidance for FY19, sees FY19 revs growth above 60% -- to over $63.8 bln vs. $54.5 bln Capital IQ Consensus.
Newell Brands beats by $0.08, beats on revs; reaffirms FY18 guidance; Expands Accelerated Transformation Plan; sells Waddington Group for $2.3 bln
- Reports Q1 (Mar) earnings of $0.34 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.26; revenues fell 7.6% year/year to $3.02 bln vs the $2.95 bln Capital IQ Consensus, primarily reflecting the negative impact from 2017 divestitures net of acquisitions, the business disruption to the Baby business created by the Toys ‘R' Us reorganization and subsequent liquidation, and significant inventory destocking in the Writing category's office superstore and distributive trade channels. Core sales declined 3.5% driven largely by Writing and Baby.
- Co reaffirms guidance for FY18, sees EPS of $2.65-2.85, excluding non-recurring items, vs. $2.63 Capital IQ Consensus Estimate; sees FY18 revs of $14.4-14.8 bln vs. $14.47 bln Capital IQ Consensus Estimate.
- Expands Accelerated Transformation Plan:
- Restructuring Newell Brands to a more than $9 billion global consumer products company with leading brands in seven core consumer divisions (Appliances & Cookware, Writing, Outdoor & Recreation, Baby, Food, Home Fragrance and Safety & Security);
- Divesting non-core businesses representing ~35 percent of the company's net sales (Jostens, Pure Fishing, Rubbermaid Commercial Products, Mapa/Spontex/Quickie, The Waddington Group, Process Solutions, Rawlings, Goody, Rubbermaid Outdoor/Closet/Refuse & Garage and U.S. Playing Cards) at value creating multiples;
- Applying ~$10 billion in after-tax proceeds from divestitures in combination with free cash flow from operations after dividends to debt repayment and significant accretive share repurchase; and
- Maintaining the company's commitment to its investment grade rating and to the annual dividend of 92 cents per share through 2019, growing thereafter within our target 30 to 35 percent payout ratio range.
Early premarket gappersGapping up:
- CVGI +14.4%, P +11.7%, MED +11%, TWI +9.6%, SHAK +8.9%, WTW +8.2%, CRC +8.2%, VIAV +7.5%, WIFI +7.2%, SMCI +7.2%, BGS +5.8%, ADMS +5.5%, PE +5.5%, LYV +4.4%, SPPI +4.3%, CTRL +3.7%, WING +3.6%, CYRX +3.5%, CC +3.5%, CARG +3.3%, STMP +2.9%, AGO +2.8%, CYBR +2.6%, SM +2.5%, APPN +2.4%, EDIT +2.4%, GPRO +2.2%, MSI +2.1%, CBS +1.8%, MAIN +1.7%, TXMD +1.6%, ACIA +1.4%, ALNY +1.3%, ITGR +1.1%
Gapping down:
- ADVM -9.4%, AKCA -9.1%, FLR -8.6%, ANET -7.4%, WEB -6.7%, CENX -5.5%, VREX -5.2%, FLT -5%, SSRM -4.7%, AMN -4.7%, BTE -4.7%, AIRG -3.6%, SRPT -2.8%, TACO -2.7%, ZAYO -2.7%, ESL -2.5%, ALTR -2.2%, EOG -2.1%, HASI -2%, JOBS -1.7%, SWKS -1.4%, ALRM -1.3%, TSRO -1.1%, LOCO -1%, OLED -1%
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Asian stocks declined as investors assessed the implications of ongoing trade talks between the U.S. and China. The dollar remained under pressure ahead of the monthly U.S. jobs report, while the Aussie advanced.
Stocks from Sydney to Hong Kong retreated. The Aussie rose as traders assessed the Reserve Bank of Australia’s decision to edge up core inflation and unemployment forecasts. The 10-year Treasury yield dipped overnight. With Japan closed for a public holiday, Treasuries will remain shut until the London session. U.K. stock index futures climbed, indicating losses from Asia won’t spread to Europe. US After Hours SHAK +9%, CRC / P / WTW / SMCI +7%, CBS +3% are higher, while FLR -13%, ANET -7% are lower following earnings/guidance
Nikkei -0.16% HAng Seng -0.75% CSI -0.18% Shanghai -0.09% Shenzen +0.16%
Eur$ 1.1974 CNH 6.3517 CNY 6.3504 JPY 109.15 GBP 1.3569 CHF 0.9989 RUB 63.10 WTI$ 68.45 +0.03%
S&P -0.12% EuroStoxx +0.35% FTSE +0.40% DAX +0.45% SMI +0.37%
Macro :
- Europe Looking Past Mnuchin to Payrolls Roulette: Markets Live
- Brexit Transition Must Be Extended, U.K. Officials Said to Think
- Mnuchin Says U.S., China in ‘Very Good Conversation’ on Trade
Keep an eye on :
- AF FP : Air France Staff Are Said to Vote in Favor of Co. Plan:Parisien
- AF FP : Air France-KLM 1Q Loss Widens as Strikes Bite; FY Targets Cut
- ANA SM : Acciona Is Said to Plan Keeping Testa Stake: Cinco Dias
- ALKB DC : ALK-Abello 1Q Revenue Beats Highest Estimate; Raises Forecast
- AMS SM : Amadeus First Quarter Adjusted Net 1.0% Above Estimates
- AAPL US : Buffett Says Berkshire Bought 75m More Apple Shares in 1Q: CNBC
- CS FP : Axa 1Q Revenue Slips 2.7%; Comparable Revenue Climbs 2.2%
- BAYN GY : Bayer Completes Covestro Placement at EU75.50 a Share (29mShares - entire stake)
- BAS GY : BASF First Quarter Ebitda 2.3% Below Estimates
- BMW GY : BMW First Quarter Ebit Beats Estimates
- BNP FP : BNP Paribas’s Trading Revenue Falls on Fixed-Income Slump (1)
- BOL FP : Billionaire Bollore Is Too Much of a Mystery Man: Alex Webb
- BT/A LN : BT May Announce Further Job Cuts Next Week: FT
- DIC GY : DIC Asset First Quarter FFO EU13.6 Mln
- EBS AV : Erste First Quarter Net Income Beats Estimates
- ENGI FP : Engie Is Said to Offer Highest Bid on Petrobras Gas Pipeline
- FNTN GY : Freenet First Quarter Ebitda Misses Lowest Estimate
- GBLB BB : Groupe Bruxelles Lambert 1Q Cash Earnings EU84.3m vs EU83.0m
- G1A GY : GEA Group 1Q Oper Ebitda 1.4% Above Est.
- G IM : Generali 1Q Net Rises 8.6% to EU581m on Higher Non-Life Income
- GSK LN : Glaxo’s Advair Is the $100 Billion Asthma Drug That Won’t Die
- HSBA LN : HSBC Plans Up to $2B Share Buyback, to Call Tier-1 Securities
- HSBA LN : HSBC First Quarter Adjusted Pretax Profit Meets Estimates
- IBE SM : Iberdrola: CNMV Sees No Reason to Review Gamesa Bid Exemption
- LXS GY : Lanxess 1Q Better Than Expected in All Segments: Commerzbank
- LONN SW : Lonza Says Confident to Achieve Positive Half-Year Result
- MDM FP : Maisons du Monde CEO Sees 3-4 Modani Store Openings in 2018 (1)
- NESN SW "Nestle in Talks to Buy Starbucks’ Coffee Buisness: Paradeplatz
- NPRO NO : Norwegian Property First Quarter Revenue Meets Estimates
- HSBA LN : HSBC 1Q Costs Offset Good Revenue Performance: Jefferies
- IMMNOV SS : Immunovia May Boost Total Shares by Up to 20% With New Issue
- JUN3 GY :
- ORI SS : Oriflame First Quarter Ebitda Beats Highest Estimate
- RENE PL : REN First Quarter Net Income EU13.1 Mln
- RHM GY : Rheinmetall First Quarter Revenue Misses Lowest Estimate
- RHK GY : Rhoen Klinikum First Quarter Ebitda EU27.6 Mln
- STL NO : Statoil Says Next-Generation Portfolio Has 3kg/BOE CO2 Intensity
- SGRE SM : Siemens Gamesa Second Quarter Sales Meet Estimates
- GLE FP : SocGen Board Proposes to Renew Oudea as CEO for 4-Year Term
- SREN SW : Swiss Re First Quarter Net Income 4.1% Above Estimates
- TIT IM : Showdown Time for Vivendi, Elliott in Clash Over Telecom Italia
- VOW3 GY : Ex-VW CEO Winterkorn Charged by U.S. in Diesel Cheating Scandal
>>> Up
* Engie Upgraded to Overweight at Morgan Stanley; PT 17 Euros
* Just Eat Upgraded to Outperform at RBC; PT 9.50 Pounds
* Linde Upgraded to Outperform at MainFirst; PT 217 Euros
* Osram Upgraded to Equal-weight at Morgan Stanley; PT 51 Euros
* Pfeiffer Vacuum Raised to Buy at Equinet; Price Target 162 Euros
* Pfeiffer Vacuum Upgraded to Buy at Commerzbank; PT 167 Euros
>>> Down
* Ahold Delhaize Cut to Neutral at JPMorgan; Price Target 20 Euros
* Bpost Downgraded to Reduce at HSBC; PT 14 Euros
* IWG Downgraded to Hold at Peel Hunt; PT 2.60 Pounds
* Outokumpu Cut to Equal-weight at Morgan Stanley; PT 6.70 Euros
* Smith & Nephew ADRs Downgraded to Sell at Deutsche Bank
>>> Initiation
* ASML Rated New Market Perform at New Street Research
* Ericsson Rated New Market Perform at New Street Research
* Infineon ADRs Rated New Outperform at New Street Research
* Nokia Rated New Market Perform at New Street Research
* Siemens Healthineers Rated New Buy at Jefferies
>>> Call