>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance:
  • CREE -9% VNET -7.1%, LOW -5.5%, TGT -5.3%, SPLS -3.5%, PLKI -2.5%
Select metals/mining stocks trading lower: AU -2.8%, AG -1.4%, SLV -1%, RIO -0.9%, MT -0.9%, RIO -0.9%, FCX -0.7%

Other news:
  • STEM -28.8% (StemCells discloses it will be accepting warrant exercises from the holders of its outstanding warrants to purchase common stock issued on April 29, 2015 at a reduced exercise price of $1.10/share)
  • PSG -6.7% (Performance Sports files to delay Form 10-K - as expected- cautions that earnings before income tax and net income for the year ended May 31 are expected to be significantly lower than the corresponding period of the prior fiscal year; S&P lowered Performance Sports Group Corporate Credit rating to 'CCC' due to weak operations, likely covenant default)
  • BCRX -3.9% (Baker Bros trims active stake to 14.99%)
  • INCR -3.8% (commences 4.5 mln common stock offering by certain of its existing stockholders, namely affiliates of Avista Capital Partners, L.P. and affiliates of Ontario Teachers' Pension Plan)
  • BSPM -2.5% (thinly traded - to delay Form 10-Q, expects that the Quarterly Report that is subject hereof will be filed within the time frame allowed by the extension), SO -2.2% (prices offering of 32.5 mln shares of its common stock for gross proceeds of ~$1.6 bln)
  • WMT -1.6% (in sympathy with TGT earnings)
  • CHK -1.5% (prices term loan at $1.5 bln (upsized from $1 bln))
  • HD -0.6% (in sympathy following LOW earnings)
Analyst comments: ASML -2.2% (downgraded to Neutral from Buy at BofA/Merrill)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:
  • URBN +12%, PLCE +6%, MEET +5.4%, (MeetMe reiterates Q3 and FY16 guidance in response to recent volatility in the share price and in anticipation of upcoming investor meetings)
  • JKHY +4.5%, AEO +2.9%, HMY +2.3%, ALR +2.1%, CTRN +1%, JASO +0.6%
M&A news: CFNL +3% (follow-up to reports the company is in talks to be acquired by United Bankshares (UBSI))

Select metals/mining stocks trading higher: DRD +2.1%, GG +1.3%, CLF +0.6%, BBL +0.6%, BHP +0.5%, GFI +0.5%

Other news:
  • ANTH +9.4% (appoints William Shanahan, M.D., J.D. as Chief Medical Officer)
  • CGIX +9.2% (receives NY State approval for its Focus::Myeloid NGS-based panel for myeloid malignancies including acute myeloid leukemia, myelodysplastic syndrome, and myeloproliferative neoplasms)
  • WLDN +6.8% (light volume, Willdan Group receives new three-year $35.4 mln contract by 'leading' utility in the western United States)
  • PATK +5.8% (to join S&P SmallCap 600)
  • LL +4.8% (announces the final resolution of the Proposition 65 lawsuit originally filed on July 23, 2014)
  • SHOP +2.1% (prices offering by co and selling shareholders of 7.5 mln shares of Class A stock at $38.25 per share)
  • DY +1.8% ( to join S&P MidCap 400)
  • HMC +1.6% (rebound in Nikkei overnight)
Analyst comments:
  • SCYX +21.4% (initiated with a Buy at Guggenheim)
  • VRX +9.8% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
  • CTAS +1.9% (upgraded to Overweight from Equal Weight at Barclays)

>>> US Early premarket gappers

Early premarket gappers

Gapping up: SCYX +26.2%, URBN +11.7%, ANTH +9.4%, VRX +8.8%, WLDN +6.8%, LL +6.6%, MEET +6.4%, PATK +5.8%,JKHY +4.5%, CTRP +4.4%, PLCE +3.6%, AEO +2.8%, SHOP +2%, DY +1.8%, HMC +1.6%, DRD +1.2%, RIG +1.2%, CTRN+1%, CLF +0.6%

Gapping down: STEM -24.6%, CREE -9.9%, PSG -6.7%, VNET -6%, TGT -5.8%, LOW -5.5%, BCRX -3.9%, SPLS -3.5%, AU-2.8%, BSPM -2.5%, PLKI -2.5%, ASML -2.4%, SO -2.1%, DB -1.8%, SAN -1.4%, RIO -1%, NVO -1%, SLV -1%, MT -0.9%, OAS-0.9%, GDX -0.9%, CHK -0.8%, HD -0.8%, FCX -0.7%

>>> Pre-market earnings movers: URBN +12%, CREE -10%, MEET +5%, TGT -4%, LOW -4%

Pre-market earnings movers: URBN +12%, CREE -10%, MEET +5%, TGT -4%, LOW -4%
  • Urban Outfitters (URBN) +12.4% after co beat by $0.11, reports revs in-line
  • Cree (CREE) -10.4% after co missed by $0.01, reports revs in-line with preannouncement; guided Q1 with and without Wolfspeed business, being sold to Infineon (IFNNY)
  • MeetMe (MEET) +5.4% after co reiterated Q3 and FY16 guidance (in response to recent volatility in the share price and in anticipation of upcoming investor meetings)
  • OSI Systems (OSIS) +4.7% after co beat by $0.03, missed on revs; guided FY17 EPS above consensus, revs in-line
  • Target (TGT) -4.1% after co beat by $0.10, reports revs in-line; guided Q3 EPS below consensus; lowered FY17 EPS; sees 2H comps below estimates
  • Lowe's (LOW) -3.7% after co missed by $0.05, reports revs in-line; lowers and guided FY17 EPS above consensus, raises FY17 revs above consensus
  • Popeyes Louisiana Kitchen (PLKI) -2.3% after co reports EPS in-line, missed on revs; reaffirms FY16 EPS guidance, lowers comps
  • Childrens Place (PLCE) +1.3% after co beats by $0.22, reports revs in-line; raises FY17 EPS guidance

>>> Staples reports EPS in-line, revs in-line; guides Q3 EPS in-line

--> No pre market for now

Staples reports EPS in-line, revs in-line; guides Q3 EPS in-line
  • Reports Q2 (Jul) earnings of $0.12 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.12; revenues fell 3.7% year/year to $4.75 bln vs the $4.76 bln Capital IQ Consensus.
    • North American Commercial sales for the second quarter of 2016 were $2.0 bln, flat compared to the second quarter of 2015. This primarily reflects growth in facilities supplies, promotional products, and breakroom supplies, partially offset by declines in ink and toner, office supplies and paper. Sales growth was negatively impacted by approximately one percent due to the sale of the company's Staples Print Solutions business during the second quarter of 2016.
    • Staples Business Advantage achieved sales growth of one percent on a GAAP basis and three percent on a local currency basis after excluding a negative impact of approximately two percent due to the sale of the company's Staples Print Solutions business.
    • North American Stores and Online sales for the second quarter of 2016 were $2.0 bln, a decrease of six percent compared to the second quarter of 2015. Store closures negatively impacted second quarter 2016 sales growth by approximately one percent. Sales growth was also negatively impacted by approximately one percent due to changes in foreign exchange rates. Comparable sales, which combines comparable store sales and Staples.com sales growth excluding the impact of changes in foreign exchange rates, decreased four percent versus the prior year. Sales declines in ink and toner, business machines, technology accessories and office supplies were partially offset by growth in computers. Comparable store sales decreased five percent, primarily reflecting a decline in customer traffic versus the prior year. Staples.com sales grew one percent in U.S. dollars and on a local currency basis compared to the second quarter of 2015.
    • International Operations sales for the second quarter of 2016 were $721 mln, a decrease of seven percent in U.S. dollars or four percent on a local currency basis compared to the second quarter of 2015. This was primarily driven by sales declines in Europe, partially offset by double-digit growth in China.
  • Co issues in-line guidance for Q3, sees EPS of $0.32-0.35, excluding non-recurring items, vs. $0.35 Capital IQ Consensus Estimate.
  • For the full year 2016, the company expects to generate approximately $600 mln of free cash flow excluding the after-tax impact to operating cash flow of approximately $340 mln of charges associated with financing for the proposed acquisition of Office Depot (ODP) and costs associated with the termination of the Office Depot merger agreement. The company plans to close at least 50 stores in North America in 2016.

>>> Lowe's misses by $0.05, reports revs in-line; lowers and guides FY17 EPS abo

--> -6.7% pre open - low volume 1k shares traded

Lowe's misses by $0.05, reports revs in-line; lowers and guides FY17 EPS above consensus, raises FY17 revs above consensus
  • Reports Q2 (Jul) earnings of $1.37 per share, excluding non-recurring items, $0.05 worse than the Capital IQ Consensus of $1.42; revenues rose 5.3% year/year to $18.26 bln vs the $18.42 bln Capital IQ Consensus.
    • Q2 comparable sales increased 2.0%.
  • Co issues lowers guidance for FY17, sees EPS of $4.06 vs. $4.05 Capital IQ Consensus Estimate, down from ~$4.11 prior; sees FY17 revs of +10% YoY to ~$65.0 bln vs. $63.78 bln Capital IQ Consensus Estimate, up from ~+6% YoY $62.6 bln prior guidance
    • The 53rd week is expected to increase total sales by ~1.5%
    • Comparable sales are expected to increase ~4% (unchanged)
    • The company expects to add approximately 45 home improvement and hardware stores.

>>> Lowe's misses by $0.05, reports revs in-line; lowers and guides FY17 EPS abo

Lowe's misses by $0.05, reports revs in-line; lowers and guides FY17 EPS above consensus, raises FY17 revs above consensus
  • Reports Q2 (Jul) earnings of $1.37 per share, excluding non-recurring items, $0.05 worse than the Capital IQ Consensus of $1.42; revenues rose 5.3% year/year to $18.26 bln vs the $18.42 bln Capital IQ Consensus.
    • Q2 comparable sales increased 2.0%.
  • Co issues lowers guidance for FY17, sees EPS of $4.06 vs. $4.05 Capital IQ Consensus Estimate, down from ~$4.11 prior; sees FY17 revs of +10% YoY to ~$65.0 bln vs. $63.78 bln Capital IQ Consensus Estimate, up from ~+6% YoY $62.6 bln prior guidance
    • The 53rd week is expected to increase total sales by ~1.5%
    • Comparable sales are expected to increase ~4% (unchanged)
    • The company expects to add approximately 45 home improvement and hardware stores.