Gapping down
In reaction to disappointing earnings/guidance:
In reaction to disappointing earnings/guidance:
- AXP -2.1%, SRCE -1.6%, IBM -1.5%, SLB -0.9%
Select metals/mining stocks trading lower:
- HMY -2.8%, GFI -2.3%, RIO -1.8%, KGC -0.6%, BBL -0.5%
Other news:
- PSTI -26.4% (prices $15 mln (upsized from $10 mln) bought deal offering of common stock and warrants)
- AFMD -18.6% (commences an underwritten public offering of its common shares; size not disclosed)
- URRE -7.1% (following notable afternoon strength)
- VRAY -6.6% (modestly pulling back)
- AXAS -6.3% (prices 25 mln (upsized from 20 mln shares) common stock offering at $2.40/share)
- HLF -6.1% (lowers Q4 volume, sales guidance; lowers FY17 EPS guidance; intends to raise $1.325 bln of new credit facilities to refinance its existing revolver)
- STML -5.5% (announces an underwritten public offering of common stock)
- MRNS -1.7% (Chief Medical Officer Albena Patroneva resigned effective January 31 for personal/family reasons)
- AFAM -1% (upsizes offering by 500K shares and prices 3 mln shares of common stock at $44.50 per share)
Analyst comments:
- ATI -1.8% (downgraded to Underperform from Buy at BofA/Merrill)
- CSX -1.6% (downgraded to Hold from Buy at Deutsche Bank)
- SIMO -0.9% (downgraded to Neutral from Buy at Nomura)
- TCB -0.8% (downgraded to Hold from Buy at Deutsche Bank)
- ENDP -0.7% (downgraded to Neutral from Overweight at JP Morgan)
Gapping up
In reaction to strong earnings/guidance:
In reaction to strong earnings/guidance:
- SWKS +6.7%, (also initiates new $500 mln stock buyback plan), PG +2.9%, ABCB +2.2%, INDB +1.9%, STI +0.9%
Select SWKS peers showing strength:
- QRVO +4.6%, CRUS +3.8%, QCOM +1.1%, TXN +1%
Select oil/gas related names showing strength:
- SHLX +3.4%, SDRL +2.6%, PBR +1.4%, WLL +1.3%, TOT +1.2%, CHK +1.2%, RDS.A +0.5%
Other news:
- BLDP +5.5% ( Protonex received certification from the U.S. Government)
- NGL +4.4% (declares quarterly cash distribution of $0.39/share (fourth and final quarter of the temporary distribution reduction) and provides distribution guidance)
- MRK +3.4% (higher following BMY Opdivo news)
- NVAX +1.5% (announces the initiation of a Phase 2 clinical trial of its respiratory syncytial virus F-protein nanoparticle vaccine candidate in older adults)
- SGYP +1.4% (confirms FDA approval for TRULANCE)
Analyst comments:
- EMES +8.3% (upgraded to Buy from Neutral at Goldman)
- CF +5.1% (upgraded to Buy from Underperform at BofA/Merrill)
- NE +5% (upgraded to Neutral from Underperform at BofA/Merrill)
--> SLB -0.92% 3k shares traded
Schlumberger reports EPS in-line, revs in-line (87.20)
- Reports Q4 (Dec) earnings of $0.27 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.27; revenues fell 8.2% year/year to $7.11 bln vs the $7.08 bln Capital IQ Consensus.
- "Among the business segments, the fourth-quarter revenue increase was led by the Production Group, which grew 5% due to increased hydraulic fracturing activity in the Middle East and in North America land. Reservoir Characterization Group revenue increased 1% sequentially due to strong Testing & Process activity in Kuwait that outweighed the seasonal decline in Wireline activity in Norway and Russia. Drilling Group revenue was flat sequentially as continued strong directional drilling activity in North America land was offset by activity declines in Europe/CIS/Africa and Middle East & Asia. Cameron Group revenue was also flat sequentially, with growth in OneSubsea and Surface Systems offset by reduced product sales from Valves & Measurement and from a declining order backlog in Drilling Systems...
- "Pretax operating margin was essentially flat sequentially at 11.4% as margin improvements in the Production and Drilling Groups were balanced by contractions in the Cameron and Reservoir Characterization Groups...
- "We maintain our constructive view of the oil markets, as the tightening of the supply and demand balance continued in the fourth quarter, as seen by a steady draw in OECD stocks.
- "We expect the growth in investments to initially be led by land operators in North America, where continued negative free cash flows seem less of a constraint, as external funding is readily available and the pursuit of shorter-term equity value takes precedence over full-cycle return on investment. E&P spending surveys currently indicate that 2017 NAM E&P investments will increase by around 30%, led by the Permian basin, which should lead to both higher activity and a long overdue recovery in service industry pricing."
Skyworks: Color on Quarter
- Craig Hallum raises tgt to $100 from $90. Of the top 15 highest operating margins in the semiconductor space SWKS has the 3rd highest operating margins yet one of the lowest P/E's at ~12x FY2017 numbers. They note that ahead of the record iPhone 6 launch SWKS traded at a ~20x P/E. They believe a multiple of 15x-18x is justified, and gets the stock back above $100. Further, they believe a re-rating is already in the works following the strong results and guide in the quarter, as well as ahead of the most widely anticipated iPhone launch in the iPhone 8, and they would be buyers of SWKS.
- Cowen raises tgt to $85 from $80. Broad markets more than made up for Samsung weakness, while AAPL was as expected and guide should quell fears around AAPL/iPhone. They still think BAW sourcing remains a big question mark (would obviously love to see SWKS buy AVGO FBAR) but the model seems largely de-risked. While they believe SWKS will definitely ride the iPhone super-cycle, when push comes to shove, they prefer QRVO.
- Mizuho raises tgt to $85 from $70. SWKS reported an inline DecQ rev/EPS of $914M/$1.61 with a modest revenue beat. SWKS also guided to slightly better than seasonal MarQ with China and GS8 builds, but inventory remains high and GM was down y/y despite better y/y inventories. A stable handset inventory, China and Samsung should be a tailwind for AVGO (Buy), which does not have any of the GM/inventory issues and is seeing good 20% y/y RF growth. Adjusting estimates, maintaining our Neutral rating and raising our SWKS PT to $80 from $75.
- Drexel Hamilton raises tgt to $105 from $90. By the end of CY16, SWKS believes all prior excess handset inventories of last year are finally behind it, so that clean year-over-year growth should continue through the remainder of FY17. They believe SWKS is well positioned to capitalize on the industry's migration to high-performance system-level solutions, as evidenced by its stable to growing market share at Apple, Samsung, Huawei, and the leading Tier-1 Chinese OEMs. While the after-hours move is encouraging, with SWKS trading at just 11.8x their FY18 estimates, they believe the company continues to offer a significantly discounted valuation, particularly when compared to many of its slower-growing chip peers
- Needham raises tgt to $92 from $84 after SWKS delivered beat and raise results in F1Q17 and is already fully booked to its better than expected F2Q17 guidance. The co secured meaningful content gains on Samsung's GS8 (SSNLF) smartphone platform and has now depleted any excess inventory of components at Apple (AAPL). SWKS is leveraging its TC-SAW capability into high-band PADs. Its Broad Markets business is poised for DD Y/Y growth for the foreseeable future driven by increasing demand for connectivity in connected home, IoT and automotive applications. Most importantly, SWKS is positioned to (meaningfully) beat estimates later this year should the iPhone 8 cycle prove as strong as Apple bulls envision.
- SWKS +7.5% at thirteen month high premarket; peers: AVGO +1.5%, QRVO indicated +3%... supplier AAPL +0.3%
--> GE -1.28% pre open 30k shares traded
General Electric reaffirms FY17 guidance; stock -0.7% premarket
- Reaffirms FY17 operating EPS $1.60-1.70 vs. $1.66 CIQ consensus; organic growth +3-5%; margin expansion ~100 bps; FCF + dispositions $16-20 bln; $19-21 bln cash returned to investors ($11-13 bln buyback).
- Q4 highlights
- Equipment orders (10)% organic with Alstom driven by tough comparisons in Transportation; growth in Renewables, O&G, Healthcare, and Aviation
- Service orders +19% organic with Alstom driven by strength in Power, Renewables, and Transportation
- Backlog +2% VPY and 1% versus prior quarter driven by services
- Global dynamics ... U.S. +23%, international developed markets +8%, and growth markets (9)%
--> PG +1.95% pre open 50k shares traded
Procter & Gamble beats by $0.02, reports revs in-line; reaffirms FY17 EPS guidance, raises organic sales growth to +2-3% from +2%
- Reports Q2 (Dec) earnings of $1.08 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $1.06; revenues fell 0.3% year/year to $16.86 bln vs the $16.77 bln Capital IQ Consensus.
- Organic sales increased two percent driven by a two percent increase in organic shipment volume. Pricing and mix had no net impact on sales for the quarter. All-in volume increased one percent including the impacts of minor brand divestitures and lost sales to Venezuelan subsidiaries. Organic sales and organic volume increased in all five business segments. Beauty organic sales +3%, Grooming +1%, Health Care +7%, Fabric & Home Care +1%, Baby, Feminine & Family Care +1%.
- Core gross margin improved 70 basis points, including 50 basis points of negative foreign exchange impacts; core operating profit margin flat Y/Y.
- Co reaffirms EPS guidance for FY17, sees mid single digit adj. EPS growth (from $3.67) vs. $3.85 Capital IQ Consensus; sees FY17 sales in-line with last year's $67.17 bln vs. $65.17 bln consensus.
- P&G said it is raising its guidance for organic sales growth from ~two percent to a range of two to three percent for fiscal 2017. The Company now expects the combined headwinds of foreign exchange and minor brand divestitures to reduce sales growth by two to three percentage points. As a result, P&G estimates all-in sales to be in line with the prior fiscal year.
Early premarket gappers
Gapping up: EMES +8.9%, SWKS +7.5%, SGYP +7.3%, BLDP +5.5%, QRVO +4.6%, NGL +4.4%, URRE +4.1%, NE +3.8%, CRUS +3.7%, SHLX +3.4%, MRK +3.4%, HLF +2.7%, SDRL +2.3%, PG +2.1%, INDB +1.9%, SYT +1.7%, NVAX +1.5%, DB +1.2%, AVGO +1.2%, NKE +1.1%, TOT +1.1%, SAN +0.9%, RBS +0.9%, STI +0.9%, WU +0.8%, ADI +0.5%
Gapping down: PSTI -17.1%, AFMD -16.3%, AXAS -7.1%, VRAY -6.6%, STML -6.4%, BMY -4.8%, HMY -3.6%, KGC -3.4%, AZN -2.6%, AXP -2.2%, GFI -2%, RIO -1.8%, CSX -1.7%, IBM -1.7%, BBL -0.9%, SLV -0.8%, IMAX -0.6%, TGT -0.6%