>>> MasterCard beats by $0.01, misses on revs

MasterCard beats by $0.01, misses on revs
  • Reports Q4 (Dec) earnings of $0.86 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.85; revenues rose 9.5% year/year to $2.76 bln vs the $2.79 bln Capital IQ Consensus.
    • An increase in switched transactions of 17%, to 15.2 billion;
    • A 9% increase in gross dollar volume, on a local currency basis and adjusting for the impact of recent EU regulatory changes, to $1.2 trillion;
    • An increase in cross-border volumes of 13%.

>>> UPS misses by $0.06, reports revs in-line; guides FY17 EPS below consensus

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UPS misses by $0.06, reports revs in-line; guides FY17 EPS below consensus
  • Reports Q4 (Dec) earnings of $1.63 per share, excluding large pension charge, $0.06 worse than the Capital IQ Consensus of $1.69; revenues rose 5.5% year/year to $16.93 bln vs the $16.99 bln Capital IQ Consensus.
    • US Domestic: Revenue increased $648 million to $10.9 billion, a 6.3% increase over 4Q15. Average daily shipments increased 5.0% to 19.6 million. 4Q 2016 operating loss of $570 million; adjusted operating profit was $1.3 billion.
  • Co issues downside guidance for FY17, sees EPS of $5.80-6.10 vs. $6.16 Capital IQ Consensus Estimate; the currency drag lowers the adjusted diluted EPS by $0.30 in 2017, and decreases the EPS growth rates by ~500 basis points.
  • "The investments in ORION and automation provided benefits during the quarter," said Richard Peretz, UPS chief financial officer. "However, bottom-line results were challenged by a shift in product mix and the continued softness in industrial production. Strong growth, combined with our network investments, provide UPS with great opportunities for many years to come."
  • Peer: FDX; customer: AMZN.

>>> Sprint misses by $0.02, beats on revs; sees FY17 profit at the high end of p

Sprint misses by $0.02, beats on revs; sees FY17 profit at the high end of prior range; lowers cap-ex
  • Reports Q3 (Dec) loss of $0.12 per share, $0.02 worse than the Capital IQ Consensus of ($0.10); revenues rose 5.5% year/year to $8.55 bln vs the $8.31 bln Capital IQ Consensus.
  • Adjusted EBITDA of $2.5 billion in the quarter compared to $1.9 billion in the year-ago period, an increase of 29%.
  • As part of its ongoing cost reduction program, the co modified the terms of its vendor agreements associated with the service and repair program on Jan. 1, 2017, which are expected to be accretive to Adjusted EBITDA by ~$25 million to $50 million per quarter. Under the terms of the new agreements, the co will now only record the net margin and therefore expects the reduction to wireless service revenues of ~$200 million per quarter to be more than offset by a greater reduction in cost of service expenses.
  • The co remains on track to achieve its goal of a sustainable reduction of $2 billion or more of run-rate operating expenses exiting fiscal year 2016 and has plans for further reductions in fiscal year 2017 and beyond. Sprint's focus on delivering the best value proposition in wireless resulted in 368,000 postpaid phone net additions in the quarter, its ninth consecutive quarter of year-over-year improvement.
  • Even in a highly competitive quarter with multiple promotional offers from its competitors, Sprint was able to add more postpaid phone customers than both Verizon and AT&T and report its highest postpaid phone net additions in four years. The company also remained postpaid net port positive for the third quarter in a row and had its highest postpaid phone gross additions in four years. The company also reported the following results: Total net additions were 577,000 in the quarter, including postpaid net additions of 405,000, prepaid net losses of 501,000, and wholesale and affiliate net additions of 673,000. Total postpaid churn was 1.67 percent and postpaid phone churn was 1.57 percent in the quarter.
  • The co now expects Adjusted EBITDA of $9.7 billion to $10 billion, at the high end of its previous expectation of $9.5 billion to $10 billion. The company now expects operating income of $1.4 billion to $1.7 billion, at the high end of its previous expectation of $1.2 billion to $1.7 billion. The co now expects cash capital expenditures, excluding devices leased through indirect channels, of $2 billion to $2.3 billion. The co's previous expectation was less than $3 billion. The company continues to expect Adjusted free cash flow around break-even.

>>> Zimmer Biomet beats by $0.03, reports revs in-line; guides FY17 EPS in-line,

Zimmer Biomet beats by $0.03, reports revs in-line; guides FY17 EPS in-line, revs in-line
  • Reports Q4 (Dec) earnings of $2.14 per share, $0.03 better than the Capital IQ Consensus of $2.11; revenues rose 4.1% year/year to $2.01 bln vs the $2.01 bln Capital IQ Consensus.
  • Co issues in-line guidance for FY17, sees EPS of $8.50-8.68 vs. $8.65 Capital IQ Consensus Estimate; sees FY17 revs of $7.855-7.930 bln vs. $7.91 bln Capital IQ Consensus Estimate.
  • "As we reflect on the completion of our first full year as a combined company, our achievements have further strengthened our confidence in the unique value-creation opportunity we offer in the dynamic global healthcare environment. We will continue to drive growth across our broad musculoskeletal portfolio in 2017, as we remain focused on delivering against our net synergy commitments and making ongoing progress towards optimizing and harmonizing our supply chain, and manufacturing and quality systems.

>>> US Early premarket gappers

Early premarket gappers
Gapping up: DRYS +44.3%, JAGX +41.5%, DCIX +15.5%, SANM +10.9%, MNTA+8.3%, AEIS +6.9%, DHT +5.9%, WERN +5.8%, AUDC +5.8%, GTE +3.7%, AIRI+3.6%, SBGL +3.4%, MYL +3.2%, AU +3.1%, RACE +2.7%, PKG +2.4%, CHK+2.3%, HMY +2%, BBL +1.9%, ABX +1.9%, GG +1.8%, SLV +1.8%, SNE +1.6%,AUY +1.6%, GDX +1.6%, FCX +1.5%, NEM +1.5%, RDS.A +1.5%, GOLD +1.5%,BHP +1.4%, PBR +1.2%, AXE +1%, VALE +0.9%, X +0.9%, GGG +0.8%, COH+0.8%, DB +0.7%

Gapping down: RRTS -25.5%, UAA -22.7%, SDRL -17.3%, SMLP -7.5%, IDTI -7%,TEVA -6.8%, RMBS -5.4%, GBX -4.6%, RIGL -3.8%, PULM -3.8%, FIT -2.6%, CGI-2.5%, NKE -2.5%, VFC -2.4%, ABC -2.4%, GLBL -2.3%, HOG -2.3%, XRX -2.2%,CNXC -2.1%, CNXC -2.1%, M -1.6%, FL -1.5%, TMHC -1.5%, FHB -1.3%, ANF-1%, CR -0.8%, VRAY -0.7%, PFE -0.7%

>>> Under Armour misses by $0.02, misses on revs; guides FY17 revs below consens

--> UA -18% 25k shares traded - ADS -1.5% NKE -2% LULU no traded yet

Under Armour misses by $0.02, misses on revs; guides FY17 revs below consensus; CFO leaving
  • Reports Q4 (Dec) earnings of $0.23 per share, $0.02 worse than the Capital IQ Consensus of $0.25; revenues rose 11.7% year/year to $1.31 bln vs the $1.41 bln Capital IQ Consensus.
    • North American revenues grew 6 percent.
    • International revenues, which represented 16 percent of total revenues in the quarter, were up 55 percent driven by significant growth in the U.K., Germany, China and Australia.
    • Apparel revenues increased 7 percent to $929 million including strength in golf and basketball.
    • Footwear revenues increased 36 percent to $228 million driven by accelerated growth in running and basketball.
    • Accessories revenues increased 7 percent to $104 million with strength in bags and headwear.
    • Gross margin was 44.8 percent compared with 48 percent in the prior year's period, as benefits from more favorable product costs were offset by aggressive efforts to manage inventory, changes in foreign currency and the outperformance of footwear and international businesses in the overall mix.
    • Inventory increased 17 percent to $917 million.
    • Total debt increased 22 percent to $817 million.
  • Co issues downside guidance for FY17, sees FY17 revs of +11-12% approx $5.4 bln vs. $6.06 bln Capital IQ Consensus Estimate.
    • Gross margin is expected to be slightly down y/y.
    • Tempered top line results coupled with strategic investments in the company's fastest growing businesses are expected to cause a decline in operating income to approximately $320 million.
    • Other full year assumptions include interest expense of approximately $40 million and an effective tax rate of 32 to 34 percent.
  • CFO Departure
  • The Company's Chief Financial Officer, Chip Molloy, has decided to leave the company due to personal reasons. Effective February 3, David Bergman, Senior Vice President, Corporate Finance will serve as acting CFO. Mr. Molloy will remain with the company in an advisory capacity to assist with the transition

>>> NASDAQ beats by $0.01, reports revs in-line (68.18)

NASDAQ beats by $0.01, reports revs in-line (68.18)
  • Reports Q4 (Dec) earnings of $0.95 per share, $0.01 better than the Capital IQ Consensus of $0.94; revenues rose 11.8% year/year to $599 mln vs the $600.95 mln Capital IQ Consensus.
    • Subscription and recurring revenues in the fourth quarter of 2016 represented 75% of total net revenues.
    • Revenues in non-trading segments in the fourth quarter of 2016 grew 11%, including organic revenue growth of 5%.
  • To better reflect client orientation and how management views the businesses, Nasdaq is realigning its segment reporting to integrate the Listing Services and Corporate Solutions businesses into a single Corporate Services segment. Market Technology is now reported as a separate reporting segment. Nasdaq is evolving its fixed income strategy under new leadership. The repositioning is designed to enhance the customer experience and will bring the company's U.S. and European fixed income products and services together under a single brand called Nasdaq Fixed Income led by John Shay. Nasdaq has made the decision to end its NLX interest rate futures business. Nasdaq will be working with customers to manage the wind down of open positions in an orderly manner.
  • 2017 expense guidance: The company is initiating 2017 non-GAAP operating expense guidance of $1,260 to $1,310 million.

>>> Harley-Davidson misses by $0.04, misses on revs; sees FY17 shipments flat to

Harley-Davidson misses by $0.04, misses on revs; sees FY17 shipments flat to down modestly with gross margin flat (57.92)
  • Reports Q4 (Dec) earnings of $0.27 per share, $0.04 worse than the Capital IQ Consensus of $0.31; revenues fell 7.4% year/year to $933 mln vs the $975.31 mln Capital IQ Consensus.
  • Shipments -12% to 42.4K vs. 44.2-49.2K guidance. In the fourth quarter, worldwide retail sales of new Harley-Davidson motorcycles declined 0.5 percent versus the prior year behind modest declines in some international markets partially offset by slight growth in the U.S.
  • For 2017, Harley-Davidson anticipates full-year motorcycle shipments to be flat to down modestly in comparison to 2016.
  • In the first quarter of 2017, Harley-Davidson expects to ship ~66,000 to 71,000 motorcycles.
  • Harley-Davidson expects full-year 2017 operating and gross margin as a percent of revenue to be ~in line with 2016 and its full-year effective tax rate to be ~34.5 percent. The company anticipates 2017 capital expenditures of $200 million to $220 million