>>> Facebook: Color on Qtr

Facebook: Color on Qtr
  • FBR Capital notes Facebook's CC ad growth accelerated to 66%, versus 57% in 3Q, and results bested Street estimates across metrics. The tone of comments on how the business is progressing was constructive, and the 2016 expense outlook was not so bad. Results are supportive of firm's thesis that FB offers scarce large-cap media growth and attractive structural exposure to the rise in mobile precision-brand advertising. Maintain Outperform rating and increase tgt to $130 from $125.
  • Mizuho Securities notes 4Q marked the third consecutive quarter of accelerating revenue trends, with revenue up 60% YoY (FXN) vs. 57% in 3Q and 50% in 2Q. With nearly 1.6b MAUs, solid engagement on mobile, and new ad formats, firm believes Facebook is becoming a must-buy among advertisers. And with video and Instagram ads gaining traction, firm believe these products are mid-term catalysts for sustained revenue growth.
  • Axiom Research increases tgt to $145 from $126. Firm says to buy the stock and hold for the longer term as estimates have yet to reflect contribution from WhatsApp, Messenger, Oculus, the potential for FB to capture a meaningful slice of TV ad budgets through video ads, e-commerce & Search optionality, potential China entry, and the longer-term benefit of expanding Internet usage through Internet.org.
  • Pivotal Research notes Facebook reported another stellar quarter with +52% revenue growth and strong profit expansion during 4Q15. With many levers of growth yet to be pulled, firm continues to see many reasons to remain highly optimistic in Facebook. For Facebook as for Google, size begets more size given the constantly improving capacity the company has to capture a growing share of marketer "wallets." Tgt is raised to $136 from $134 and maintains a Buy rating.

>>> Ford Motor beats by $0.07, beats on revs; reaffirms FY16 guidance

Ford Motor beats by $0.07, beats on revs; reaffirms FY16 guidance
  • Reports Q4 (Dec) adj. earnings of $0.58 per share, $0.07 better than the Capital IQ Consensus of $0.51; revenues rose 12.1% year/year to $37.9 bln vs the $36.27 bln Capital IQ Consensus.
  • Record full year 2015 pre-tax profit, excluding special items, of $10.8B, up $3.5B; after-tax earnings per share of $1.93, excluding special items, up $0.59 cents from a year ago. On Jan 12: Co expects to deliver record 2015 adj. pre-tax profit to be in the upper half of Ford's guidance of $10 billion to $11 billion
  • Reaffirms Company 2016 pre-tax profit, excluding special items, revenue, Automotive operating margin and earnings per share equal to or higher than 2015; Automotive operating-related cash flow expected to be strong but lower than 2015 record

>>> Bristol-Myers beats by $0.10, beats on revs; guides FY16 EPS above consensus

Bristol-Myers beats by $0.10, beats on revs; guides FY16 EPS above consensus
  • Reports Q4 (Dec) earnings of $0.38 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus of $0.28; revenues rose 0.7% year/year to $4.29 bln vs the $4.15 bln Capital IQ Consensus.
  • Co issues upside guidance for FY16, sees EPS of $2.30-2.40, excluding non-recurring items, vs. $2.29 Capital IQ Consensus Estimate.
    • Worldwide revenues increasing in the mid-single digit range.
    • Full-year gross margin as a percentage of revenues to be approximately 75% - 76%.
    • Marketing, sales and administrative expenses decreasing in the mid-single digit range.
    • Research and development expenses increasing in the high-single digit range

>>> Alibaba beats by $0.10, beats on revs --> +5.7% pre open

Alibaba beats by $0.10, beats on revs

  • Reports Q3 (Dec) earnings of $0.99 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus of $0.89; rev +32% to $5.33 bln vs. $5.13 bln consensus, mainly driven by the continued rapid growth of our China commerce retail business.
  • China retail marketplace revenue was RMB28,714 mln (US$4,433 mln), an increase of 35% year-over-year; and mobile revenue was RMB18,746 mln (US$2,894 mln), an increase of 192% year-over-year
  • Annual active buyers on our China retail marketplaces increased to 407 mln, an increase of 21 mln from the prior quarter, while mobile MAUs in December reached 393 mln, an increase of 47 mln over the prior quarter
  • GMV transacted on our China retail marketplaces was RMB964 bln (US$149 bln), an increase of 23% year-over-year (and a net addition of RMB177 bln (US$27 bln) from the same quarter of 2014), with mobile GMV accounting for 68% of total GMV.

>>> Oshkosh beats by $0.13, beats on revs; lower FY16 guidance below consensus

Oshkosh beats by $0.13, beats on revs; lower FY16 guidance below consensus
  • Reports Q1 (Dec) earnings of $0.19 per share, $0.13 better than the Capital IQ Consensus of $0.06; revenues fell 7.5% year/year to $1.25 bln vs the $1.2 bln Capital IQ Consensus.
  • Co issues downside guidance for FY16, sees EPS of $2.20-2.60 vs. $3.07 Capital IQ Consensus Estimate; sees FY16 revs of $5.7-6 mln vs. $6.28 bln Capital IQ Consensus Estimate.
    • Co said, "The timing of the award of an international contract for more than 1,000 M-ATVs that we expect to receive has been slowed. We now assume that we will not receive the contract in time to recognize any sales in fiscal 2016

>>> Eli Lilly reports EPS in-line, revs in-line; reaffirms FY16 guidance

Eli Lilly reports EPS in-line, revs in-line; reaffirms FY16 guidance
  • Reports Q4 (Dec) earnings of $0.78 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.78; revenues rose 5.0% year/year to $5.38 bln vs the $5.33 bln Capital IQ Consensus.
    • The revenue increase was comprised of 7% due to increased volume and 3% due to higher prices, partially offset by 6% due to the unfavorable impact of foreign exchange rates. The increase in worldwide volume was primarily due to the inclusion of revenue from Novartis Animal Health and increased volume for several products, including Trulicity and Cyramza, as well as Erbitux due to the transfer of commercialization rights in North America. These worldwide volume increases were partially offset by the residual impact of the loss of exclusivity for Cymbalta. Revenue in the U.S. increased 15% to $2.821 billion, driven by higher prices, the inclusion of revenue from Novartis Animal Health and increased volumes for several pharmaceutical products. Revenue outside the U.S. decreased 4% to $2.555 billion, driven by the unfavorable impact of foreign exchange rates and the loss of exclusivity for Cymbalta in Europe in 2014, partially offset by the inclusion of revenue from Novartis Animal Health and increased volumes for several pharmaceutical products.
  • Co reaffirms guidance for FY16, sees EPS of $3.45-3.55, excluding non-recurring items, vs. $3.55 Capital IQ Consensus Estimate; sees FY16 revs of $20.2-20.7 bln vs. $20.91 bln Capital IQ Consensus Estimate. Excluding the unfavorable impact of foreign exchange rates, the company expects revenue growth from a number of established products including Humalog, Trajenta, Cialis, Forteo, Strattera, Erbitux, and animal health products, as well as higher revenues from new products including Cyramza, Trulicity, Jardiance, Portrazza, and Basaglar

>>> Northrop Grumman reports Q4 (Dec) results, misses on revs; guides FY16 EPS b

Northrop Grumman reports Q4 (Dec) results, misses on revs; guides FY16 EPS below consensus, revs below consensus

  • Reports Q4 (Dec) GAAP earnings of $2.49 per share, may not be comparable to the Capital IQ Consensus of $2.01; revenues fell 6.8% year/year to $5.69 bln vs the $5.93 bln Capital IQ Consensus.
    • As a result of the passage of the Protecting Americans from Tax Hikes Act of 2015, which made permanent research and development tax credits, the company recognized a full year credit of $60 million, or $0.33 per diluted share, in Q4.
    • EPS also includes $0.31 pension adjustment.
  • Co issues downside guidance for FY16, sees EPS of $9.90-10.20 vs. $10.52 Capital IQ Consensus Estimate; sees FY16 revs of $23.5-24.0 bln vs. $24.41 bln Capital IQ Consensus Estimate.
    Backlog -6% to $35.9 bln.

>>> Potash misses by $0.07, misses on revs; guides Q1 EPS below consensus; guide

--> -3.55% pre open

Potash misses by $0.07, misses on revs; guides Q1 EPS below consensus; guides FY16 EPS below consensus; reduces dividend

  • Reports Q4 (Dec) earnings of $0.24 per share, $0.07 worse than the Capital IQ Consensus of $0.31; revenues fell 28.8% year/year to $1.35 bln vs the $1.37 bln Capital IQ Consensus.
  • Dividend cut: Quarterly dividend reduced by 34% to $0.25 per share
  • Co announces indefinite suspension of Picadilly, New Brunswick potash operation in January 2016
  • Market conditions:
    • Global potash shipments for the fourth quarter remained relatively flat compared to 2014, with increased deliveries to China offsetting slightly weaker demand in most other markets.
    • Nitrogen markets continued to feel the effects of falling energy prices. Lower production costs in key producing regions increased competitive supply, which -- combined with a weaker-than-normal fall application season in the US and slower demand in Brazil -- caused prices for nearly all nitrogen products to trend lower during the quarter.
    • In phosphate, record Chinese exports, seasonally slow demand in India and the US and continued caution in Brazil weighed on prices for solid fertilizers. Prices for feed, industrial, and liquid fertilizer products were more resilient, supported by strong demand and tighter supply.
  • Guidance:
    • Co issues downside guidance for Q1, sees EPS of $0.10-0.20 vs. $0.29 Capital IQ Consensus Estimate.
    • Co issues downside guidance for FY16, sees EPS of $0.90-1.20 vs. $1.45 Capital IQ Consensus Estimate.
    • Co anticipates 2016 potash sales volumes will be in the range of 8.3-9.1 million tonnes.
  • Commentary: "Weaker fertilizer prices late in the year reduced our earnings for the quarter, giving rise to a more cautious outlook for all three nutrients as we begin 2016..."