China PMI Contracting | Morning News

MARCH 01.2016
US futures rebounding with markets around the world trading positive as investors await ISM and construction spending data out of the US this morning at 10AM EST. Overnight, crude lifted off support even as traders remain cautious on the commodity after China PMI data disappointed and stayed below the crucial 50 mark.

NEWS:

• QLYS: HGR: Qualys to replace Hanger in S&P 600 after the close tomorrow, March 2.
• DUK: announces a public offering of 9.25M common shares
• PVCT: awarded patent for PV-10 investigational drug
• DIS: removed from US #1 List at BofA/Merrill
• AN: FRC: added to US #1 list at BofA/Merrill
• XOM: reports sale of $12B worth of bonds 
• TASR: announces $50M stock buyback authorization
• AAPL: wins favorable decision in NY for iPhone case, reports FT

THE ECONOMIC CALENDAR:

• 9:45AM: Markit PMI
• 10AM: ISM
• 10AM: Construction spending
• Various Times: Motor Vehicle Sales

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• WDAY: FQ4 EPS of -$0.01 beats by $0.04: revenue of $323.4M beats by $3.77M: revenue +42.9% y/y: guides Q1 revenue below consensus: guides FY17 in-line
• CROC: Q4 adjusted net loss of $52.9M: revenue of $208.68M beats by $7.09M: revenue +1.1% y/y: guides revenue below consensus
• APEI: Q4 EPS of $0.75 beats by $0.21: revenue of $85.91M beats by $1.81M: revenue -5.9% y/y: guides in-line
• CECO: Q4 EPS of $2.08 may not be comparable to consensus of -$0.06: revenue of $199.94M beats by $49.24M: revenue -8.1% y/y
• HALO: Q4 EPS of $0.03 beats by $0.11: revenue of $52.2M beats by $10.14M: revenue +71.8% y/y: guides in-line
• EXEL: Q4 EPS of -$0.19 beats by $0.03: revenue of $9.9M beats by $1.74M: revenue +34.7% y/y
• RMTI: Q4 EFP of -$0.12 misses by $0.14: revenue of $14.1M misses by $5.88M: revenue -2.4% y/y
• OPWR: Q4 EPS of -$0.14 in-line: revenue of $40.5M beats by $0.53M: revenue +16.2% y/y: issues soft guidance
• DPLO: Q4 EPS of $0.21 beats by $0.01: revenue of $987M beats by $17.3M: revenue +61.3% y/y: guides EPS below consensus
• TUBE: Q4 EPS Of -$0.04 beats by $0.08: revenue of $58.5M beats by $6.21M: revenue +62.1% y/y: guides FY16 revenue above consensus

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• OA: Q4 EPS of $1.45 beats by $0.34: revenue of $1.14B beats by $30M: revenue -8.8% y/y: guides FY16 EPS $5.25-%.50 vs consensus $5.55
• JKS: Q4 EPS of $2.44 beats by $1.16: revenue of $937.68M beats by $224.91M; revenue +95.8% y/y: guides FY16 solar module shipments 6GW-6.5GW
• BNS: Q4 EPS of C$1.43 beats by C$0.01: revenue of C$6.37B beats by C$100M: revenue +8.7% y/y: raises quarterly dividend to $0.72/share
• JD: Q4 non-GAAP EPS of -RMB48 misses by RMB36: revenue of RMB54.61B beats by RMB2.71B: revenue +57.3% y/y
• ACRE: Q4 EPS of $0.31 beats by $0.04: revenue of $20.92M misses by $0.04M: revenue +0.6% y/y: raises quarterly dividend to $0.26: announces expansion of stock repurchase authorization to $30M
• AZO: FQ2 EPS of $7.43 beats by $0.15: revenue of $2.26B in-line: revenue +5.6% y/y
• DLTR: Q4 EPS of $1.01 misses by $0.06: revenue of $5.36B misses by $50M: revenue +116.1% y/y: guides FY16 EPS $3.35-$3.65 vs consensus $3.76
• KATE: Q4 EPS of $0.32 in-line: revenue of $428.96M misses by $12.68M; revenue +7.6% y/y: announces launch in India later this year: guides FY16 EPS $0.70-$0.80 vs consensus $0.82
• MDT: FQ3 EPS of $1.06 in-line: revenue $6.93B misses by $60M: revenue +60.4% y/y

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• ASNA, AVD, BBG, DMD, KONA, ROST, TIVO, XCO

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• TLP: upgrade: neutral to buy: UBS: pt raised from $32 to $40
• RIO: upgrade: underperform to sector perform: RBC Capital
• HP: upgrade: sector perform to outperform: RBC Capital:pt raised from $49 to $65
• WDAY: upgrade: equal weight to overweight: JP Morgan: $85
• WBA: upgrade: neutral to buy: Mizuho: $90
• DGX: upgrade: neutral to buy: Mizuho: $75
• RIG: upgrade: sell to hold: Canaccord: $8.50
• CQP: upgrade: equal weight to overweight: Morgan Stanley: $29
• CQH: upgrade: equal weight to overweight: Morgan Stanley: $20
• DEG: upgrade: equal weight to overweight: Morgan Stanley:
• KALU: upgrade: hold to buy: Deutsche Bank: pt raised from $85 to $90
• E: upgrade: underweight to equal weight: Barclays:

DOWNGRADES:

• TMH: downgrade: buy to hold: Jefferies: $49
• USPH: downgrade: buy to hold: Jefferies: pt cut from $56 to $50
• CBPO: downgrade: outperform to neutral: Credit Suisse: $129
• NE: downgrade: outperform to sector perform: RBC Capital:  pt cut from $13 to $9.50
• VRX: downgrade: outperform to sector perform: RBC Capital: pt cut from $194 to $85
• SUNE: downgrade: outperform to perform: Oppenheimer
• SAN: downgrade: buy to hold: HSBC: 
• PTCT: downgrade: outperform to neutral: Wedbush: pt cut from $27 to $11
• ESRX: downgrade: buy to neutral: Mizuho: $77
• DPLO: downgrade: buy to neutral: Mizuho: $30
• MCK: downgrade: buy to neutral: Mizuho: $164 
• DPZ: downgrade: conviction buy to buy: Goldman: $138
• GLOG: downgrade: overweight to equal weight: Morgan Stanley: $10
• OPWR: downgrade: overweight to sector weight: Pacific Crest
• SXL: downgrade: buy to neutral: Credit Suisse
• DSW: downgrade: neutral to sell: Goldman: $20
• SNDK: downgrade: buy to hold: Stifel: 
• SWN:downgrade: equal weight to underweight: Barclays: pt cut from $7 to  $4
• UTX:downgrade: outperform to sector perform: RBC Capital: pt raised from $100 to $109

INITIATIONS:

• BLUE: initiated: buy: BTIG Research: $72
• WAT: initiated: equal weight: Barclays: $125
• PKI: initiated: underweight: Barclays: $46
• BRKR: initiated: overweight: Barclays: $30
• JNP: initiated: buy: Wainwright: $18
• CLDX: initiated: buy: Wainwright: $25

PRICE TARGET CHANGES:

• AMT: pt raised from $122 to $128: RBC Capital
• XON: pt raised from $28 to $29: Mizuho
• MLNK: pt cut from $62 to $52: Mizuho
• WDAY; pt cut from $90 to $80: FBR Capital
• WDAY: pt cut from $100 to $76: Pacific Crest
• OPWR: pt cut from $16 to $9: Wunderlich
• STRZA: pt cut from $35 to $29: Pivotal Research
• UNFI: pt cut from $34 to $25: Pivotal Research
• UNFI: pt cut from $35 to $33: RBC Capital
• DSGX: pt cut from $15 to $14: RBC Capital
• INN: pt cut from $15 to $14: RBC Capital
• PTCT: pt cut from $11 to $9: RBC Capital
• PEGI: pt cut from $29 to $25: RBC Capital
• GB: pt cut from $52 to $42: RBC Capital
• MU:pt cut from $22 to $20: Cowen
• RRC: pt cut from $35 to $23: Pivotal Research
• CMRX: pt cut from $9 to $5: Citi
• LL: pt cut from $15 to $13: Wedbush
• AMC: pt cut from $36 to $33: Wedbush
• UNFI: pt cut from $47 to $32: Wedbush
• BANX: pt cut from 425 to $22: Wunderlich
• RESI: pt cut from $17 to $14: Compass Point