Volatility Continues| Morning News

FEBRUARY 04, 2016
US futures struggling around the flat line at this hour as global markets traded mixed overnight with most Asian shares green. The markets are likely to stay volatile in the depth of the earnings season and in front of tomorrows jobs report which includes nonfarm payrolls and unemployment rate.

NEWS:

• HOG: raises quarterly dividend 12.9%
• BABA: hackers attack 20M accounts on Alibaba's Taobao shopping site, reports WWD
• BXLT: files to sell $100M of common stock
• DUK: considering sale of International Energy unit
• DB: to face US suit over $3.1B in shareholder losses, reports reuters
• HOG: announces 20M share repurchase authorization
• OSIR: announces that President and CEO Debravandere has resigned for personal reasons

THE ECONOMIC CALENDAR:

• various times: Chain Store Sales
• 7:30AM: Challenger Job Cut Report
• 8:30AM: Weekly Jobless Claims
• 8:30AM: Productivity and Costs
• 8:30AM: Gallup Good Jobs Rate
• 9:45AM: Bloomberg Consumer Comfort Index
• 10AM: Factory Orders
• 10:30AM: EIA Natural Gas Inventory
• 4:30PM: Money Supply and Fed Balance Sheet

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• LNC: Q4 EPS of $1.54 misses by $0.02: revenue of $3.35B misses by $30M: revenue -12.5% y/y
• YUM: Q4 EPS of $0.68 beats by $0.02: revenue of $3.95B misses by $70M: revenue -1.3% y/y
• MET: Q4 EPS of $1.23 misses by $0.13: revenue of $17.11B misses by $500M: revenue -6.2% y/y
• GPRO: Q4 EPS of -$0.08 misses by $0.08: revenue of $436.6M misses by $59.5M: revenue -31.1% y/y: guides Q1 revenue $160M-$180M vs consensus $298M: weak FY16 guidance 
• TBI: Q4 EPS of $0.57 misses by $0.03: revenue of $810.73M beats by $5.33M: revenue +70.3% y/y: guides revenue above estimates
• SFLY: Q4 EPS of $3.45 misses by $0.11: revenue of $548.08M beats by $3.38M; revenue +13.4% y/y: guides FY16 revenue $1.12B-$1.16B vs consensus $1.19B
• BWLD: Q4 EPS of $1.32 misses by $0.16: revenue of $490.22M misses by $17.01M: revenue +19.9% y/y: soft revenue guidance : guides FY16 EPS below consensus
• TTWO: FQ3 EPS of $0.89 beats by $0.39: revenue of $486.8M beats by $34.01M: revenue -49.0% y/y: raises FY16 guidance above estimates
• SEDG:FQ2 EPS of $0.44 beats by $0.08: revenue of $124.83 beats by $5.33M; revenue +70.3% y/y: strong FQ3 guidance
• ALL: Q4 EPS of $1.60 beats by $0.25: revenue of $7.55B misses by $50M: revenue +3.6% y/y
• AWH: Q4 EPS of $0.47 misses by $0.12: revenue of $622.8M misses by $23.5M: revenue +8.6% y/y
• GLUU: Q4 EPS of $0.02 beats by $0.05: revenue of $57.9M beats by $7.44M: revenue -24.0% y/y: mixed guidance
• RE: Q4 EPS of $8.17 beats by $2.91: revenue of $1.43B beats by $100M: revenue +5.1% y/y

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• CI: Q4 EPS of $1.87 beats by $0.07: revenue of $9.53B beats by $10M: revenue +7.1% y/y: guides FY16 adjusted EPS $8.85-$9.25 vs consensus $9.30
• CSL: Q4 EPS of $1.24 beats by $0.13: revenue of $876.2M beats by $13M: revenue +10.9% y.y
• GRUB: Q4 non-GAAP EPS of $0.19 beats by $0.05: revenue of $99.96M beats by $0.54M: guides FY16 revenue $445M-$465M vs consensus $448.78M
• DNKN: Q4 EPS of $0.52 beats by $0.02: revenue of $203.8M beats by $0.49M: revenue +5.5% y/y: raises quarterly dividend 13.2% to $0.30: guides FY16 adjusted EPS $2.17-$2.19 vs consensus $2.18
• CLX:FQ2 EPS of $1.14 beats by $0.08: revenue of $1.35B in-line: revenue flat y/y: raises FY16 EPS guidance
• CFX: Q4 EPS of $0.51 beats by $0.08: revenue of $1.06B beats by $40M: revenue -12.4% y/y
• PTEN: Q4 EPS of -$0.40 beats by $0.08: revenue of $338.56M beats by $15.01M; revenue -62.4% y/y
• MD: Q4 EPS of $1.13 beats by $0.03: revenue of $741.74M misses by $6.14M: revenue +14.0% y/y: weak guidance
• HIMX: Q4 EPS of $0.04 beats by $0.01: revenue of $178M beats by $6.06M: revenue -21.6% y/y: guides above consensus
• DLPH: Q4 EPS of $1.39 beats by $0.01: revenue of $3.88B beats by $100M: revenue +2.6% y/y: weak guidance
• TDY: Q3 EPS of $1.34 beats by $0.03: revenue of $555.4M misses by $28.9M: revenue -7.6% y/y: soft Q1 and FY16 EPS guidance
• AZN: Q4 EPS of $0.94 beats by $0.03: revenue of $6.4B beats by $130M: revenue -4.8% y/y: guides FY16 core EPS lower
• OXY: Q4 EPS of -$0.17 misses by $0.05: revenue of $2.8B misses by $150M: revenue -35.0% y/y
• PM: Q4 EPS of $0.81 in-line: revenue of $6.39B misses by $100M: revenue -11.3% y/y: weak FY16 EPS guidance
• SBH: FQ1 TPS of $0.43 beats by $0.06: revenue of $998.03M beats by $5.6M: revenue +3.5% y/y
• BSX: Q4 EPS of $0.26 beats by $0.01: revenue of $1.98B misses by $10M: revenue +4.8% y/y; guides in-line

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• ACET, AHL, AIV, ATHN, ATR, BMI, CATM, CTRL, DATA, DCT, DECK, ECHO, ECOM, ELY, ESL, FLT, G, HBI, HIG, IPHI, LGF, LNKD, MOBL, NTGR, OMCL, PCTY, PDM, POST, PPS, QRVO, RDEN, RNG, SKYW, SRCL, THG, UBNT

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• KMT: upgrade: underperform to neutral: Longbow
• AMBA: upgrade: neutral to buy: Dougherty: $43
• MAT: upgrade: hold to buy: Argus: $38
• EDU: upgrade: neutral to buy: Mizuho
• HUBG: upgrade: hold to buy: Stifel: $41
• ZUMZ: upgrade: hold to buy: Brean Capital: $24
• ATW: hold to accumulate: KLR Group: pt raised from $6.50 to $6.75
• CREE: upgrade: market perform to outperform: Northland: pt raised from $30 to $35
• W: upgrade: neutral to buy: Goldman: pt raised from $50 to $53
• YHOO: upgrade: neutral to buy: Citi:$32
• CAPL: upgrade: neutral to outperform: Barid: pt raised from $25 to $26
• WHR: upgrade: neutral to buy: Goldman: $174
• BWLD: upgrade: market perform to outperform: Raymond James: $165

DOWNGRADES:

• GPRO: downgrade: buy to neutral: Dougherty: 
• GPRO: downgrade: buy to neutral: Sterne Agee
• FINV: downgrade: outperform to neutral: Credit Suisse: pt cut from $57 to $53
• ST: downgrade: overweight to neutral: Atlantic Equities
• BWLD: downgrade: buy to neutral: Longbow: $142
• ILMN: downgrade: buy to hold: Canaccord: $160
• SNCR: downgrade: buy to hold: Stifel
• BTU: downgrade: market perform to underperform: FBR Capital
• WAB: downgrade: buy to neutral: Goldman
• CYOU: downgrade: outperform to neutral: Credit Suisse
• PACB: downgrade: buy to neutral: Piper Jaffray: $11
• MTCH: downgrade: overweight to equal weight: Barclays: $14

INITIATIONS:

• ZTS: initiated: outperform: Credit Suisse: $58
• T: initiated: buy: DA Davidson: $41
• VZ: initiated: neutral: DA Davidson: $53
• SHEN: initiated: buy:  BWS Finacial: $35
• WOOF: initiated: outperform: Credit Suisse: $63
• PETX: initiated: outperform: Credit Suisse: $11
• PETS: initiated: underperform: Credit Suisse: $13
• PAHC: initiated: outperform: Credit Suisse: $42
• SEAS: initiated: neutral: Janney Capital: $20
• NYET: initiated: outperform: Credit Suisse: $11

PRICE TARGET CHANGES:

• RNR: pt raised from $113 to $117: RBC Capital
• LULU: pt raised from $65 to $72: Wedbush
• ETN: pt raised from $56 to %57: RBC Capital
• SEDG: pt raised from $36 to $38: FBR Capital
• SEDG: pt raised from $34 to $38: Needham
• NOV: pt cut from $36 to $25: Cowen
• NOV: pt cut from $35 to $29: RBC Capital
• IMS: pt cut from $33 to $29: Topeka Capital
• ADSK: pt cut from $67 to $61: RBC Capital
• SFLY: pt cut from $52 to $48: RBC Capital
• SFLY: pt cut from $55 to $50: Needham
• GPRO: pt cut from $21 to $17: JP Morgan
• GPRO: pt cut from $7.50 to $7: Piper Jaffray
• GPRO: pt cut from $18 to $13: Wedbush
• LNC: pt cut from $59 to $52: RBC Capital
• ATW: pt cut from $12 to $6: RBC Capital
• MAN: pt cut from $94 to $88: RBC Capital
• MSLZ: pt cut from $51 to $49: RBC Capital
• GM: pt cut from $35 to $30: RBC Capital
• CMCSA: pt cut from $68 to $67: RBC Capital
• ADP: pt cut from $88 to $87: RBC Capital
• IAC: pt cut from $70 to $56: RBC Capital
• IAC: pt cut from $78 to $62: Needham
• BDX: pt cut from $162 to $153: RBC Capital
• APO: pt cut from $23 to $14: UBS
• RDWR: pt cut from $18 to $15: Needham
• IMPV: pt cut from $88 to $56: Needham
• IMPV: pt cut from $80 to $65: Topeka Capital
• IMPV: pt cut from $80 to $62: Wunderlich
• OSIR: pt cut from $8 to $4: Goldman
• LCI: pt cut from $46 to $28: Canaccord
• VRTX: pt cut from $154 to $140: Argus