FB Quarterly Profits Top $1B | Morning News

JANUARY 28.2016
US futures under pressure, struggling at the flat line, at this hour after the market was hit yesterday afternoon, sparked by the Fed statement that still left a March rate hike on the table. China's volatile shares dropped again overnight, taking losses for the year to 25%. Officials from the IMF and World Bank are heading to Azerbaijan to discuss a possible $4B loan package in what could be the first in a series of bailouts arising from the crude glut and plummeting oil prices.

NEWS:

• FCX: S&P downgrades the company's senior credit ratings deeper into junk territory
• WWE: TTWO: 2K and WWE announce multi-year extension for WWE video game properties
• QYLS: announces resignation of the company's CFO
• GD: awarded $170.72M government contract
• VZ: YHOO: Verizon issues statement, denying the rumors of a bid for Yahoo
• BABA: Alibaba reaches deal to sell Meituan-Dianping stake, reports the WSJ
• ANTM: added to Citi's Focus List: $172
• DMND: narrows guidance

THE ECONOMIC CALENDAR:

• 8:30AM: Weekly Jobless Claims
• 8:30AM: Durable Goods Orders
• 9:45AM: Bloomberg Consumer Comfort Index
• 10AM: Pending Home Sales
• 10:30AM: EIA Natural Gas Inventory
• 11AM: Kansas City Fed Manufacturing Survey
• 1PM: $29B, 7 Year Note Auction
• 4:30PM: Money Supply and Fed Balance Sheet

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• FB: Q4 EPS of $0.79 beats by $0.11: revenue of $5.84B beats by $470M: revenue +51.7% y/y: ad revenue rose 57%: 1.59B users
• MLNX: Q4 EPS of $0.77: beats by $0.07: revenue of $176.94M beats by $3.03M; revenue +25.4% y/y: strong revenue guidance
• VRTX: Q4 EPS of $0.17 in-line: revenue of $417.9M beats by $11.6M; revenue +189.1% y/y
• QCOM: FQ1 EPS of $0.97 beats by $0.07: revenue of $5.77B beats by $80M: revenue -18.7% y/y: weak Q2 adjusted EPS guidance
• EBAY: Q4 EPS of $0.50 in-line: revenue of $2.32B in-line: revenue flat y/y: soft guidance
• CRUS: FQ3 EPS of $0.82 beats by $0.01: revenue of $347.9M beats by $1.02M: revenue +16.5% y/y: light FQ4 guidance
• LVS: Q4 EPS of $0.62 misses by $0.03: revenue of $2.86B misses by $60M: revenue -16.4% y/y: raises dividend
• HOLX: FQ1 EPS of $0.46 beats by $0.04: revenue of $695.2M beats by $7.16M; revenue +6.5% y/y: guides EPS higher
• SNDK: Q4 EPS of $1.26 beats by $0.37: revenue of $1.54B beats by $100M: revenue -11.5% y/y
• TSCO: Q4 EPS of $0.82 in-line: revenue of $1.65B in-line: revenue +4.4% y/y: guides in-line
• CTXS: Q4 EPS of $1.66 beats by $0.47: revenue of $904.76M beats by $27.72M: revenue +6.3% y/y: solid guidance: authorizes $400M increase to share repurchase program
• LRCX: FQ2 EPS of $1.57 beats by $0.14: revenue of $1.42B beats by $10M: revenue +15.4% y/y: soft Q3 EPS guidance
• KEX: Q4 EPS of $0.94 misses by $0.03: revenue of $484.14M misses by $33.1M: revenue -27.6% y/y: weak Q1 and FY15 EPS guidance: warns
• NOW: Q4 EPS of $0.19 beats by $0.11: revenue of $285.7M beats by $4.3M; revenue +44.3$% y/y: weak FY16 sales guidance
• MCK: Q4 EPS of $3.18 beats by $0.05: revenue of $47.9B misses by $890M: revenue +3.0% y/y: reaffirms FY16 guidance
• INVN: FQ3 EPS of $0.18 in-line: revenue of $120M beats by $2.29M: revenue +3.6% y/y: guides revenue below consensus
• JNPR: Q4 EPS of $0.63 beats by $0.04: revenue of $1.32B beats by $20M; revenue +20.0% y/y: weak Q1 guidance
• URI: Q4 EPS of $2.19 misses by $0.12: revenue of $1.52B misses by $10M: revenue -2.6% y/y:  issues cautious guidance
• DFS: Q4 EPS of $1.14 misses by $0.16: revenue of $2.21B misses by $10M: revenue +8.3% y/y
• PYPL; Q4 EPS of $0.36 beats by $0.01: revenue of $2.56B beats by $50M; revenue +16.9% y/y: authorizes $2B share repurchase program: guides in-line
• CGI: FQ2 EPS of $0.24 misses by $0.09: revenue of $275.4M beats by $5.23M: revenue +23.8% y/y
• TTEK: Q4 EPS of $0.71 beats by $0.02: revenue of $3.19B misses by $10M: revenue -2.4% y/y: raises guidance, but remains in-line with consensus
• CCI: Q4 EPS of $1.11 beats by $0.01: revenue of $945.84M beats by $17.31M; revenue +2.2% y/y: raises guidance, but remains in-kine with consensus: names new CEO
• VAR: FQ1 EPS of $0.99 beats by $0.05: revenue of $757.1M beats by $10.54M; revenue +2.6% y/y: mixed guidance: strong FY16 EPS guidance: soft Q2 EPS guidance
• CLS: Q4 EPS of $0.27 misses by $0.03: revenue of $1.51B beats by $90M: revenue +6.3% y/y: weak EPS guidance
• MUR: Q4 EPS of -$0.76 beats by $0.44: revenue of $658.1 beats by $47.46M: revenue -53.3% y/y: Enbridge to buy Murphy Oil BC midstream assets for C$538M
• SLG: Q4 FFO of $1.62 beats by $0.01: revenue of $319.96M misses by $12.55M: revenue +8.8% y/y
• DRE:Q4 FFO of $0.26 in-line: revenue of $221.56M beats by $21.34M: revenue -10.0% y/y: guides in-line
• TXN: Q4 EPS of $0.71 beats by $0.02: revenue of $3.19B misses by $10M: revenue -2.4% y/y: guides revenue below consensus
• TER: Q4 EPS of $0.13 beats by $0.03: revenue of $318M beats by $6.23M: revenue -1.6% y/y

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• CSH: Q4 EPS of $0.48 in-line: revenue of $280.08M misses by $4.67M: revenue -3.2% y/y: guides Q1 EPS above consensus: guides FY16 EPS $1.25-$1.45 vs consensus $1.36
• LLY: Q4 EPS of $0.78 in-line: revenue of $5.3B beats by $60M; revenue +5.1% y/y: mixed guidance: FY16 adjusted EPS in-line guidance: FY16 revenue soft guidance
• POT: Q4 EPS of $0.24 misses by $0.07: revenue of $1.35B misses by $100M: revenue -28.9% y/y: guides FY16 EPS $0.90-$1.20 vs consensus $1.34
• SWK: Q4 EPS of $1.78 may not be comparable to consensus of $1.77: revenue of $2.85B misses by $90M: revenue -4.4% y/y:guides FY16 EPS $6.00-$6.20 vs consensus $6.41
• TWC: Q4 EPS of $1.80 beats by $0.02: revenue of $6.07B beats by $20M: revenue +4.8% y/y
• MKC: Q4 EPS of $1.18 beats by $0.01: revenue of $1.20B beats by $10M: revenue +2.6% y/y: mixed guidance: guides FY16 adjusted EPS $3.65-$3.72 vs consensus $3.73
• TMO: Q4 EPS of $2.12 beats by $0.01: revenue of $4.65B beats by $100M: revenue +3.6% y/y
• BABA: FQ3 EPS of RMB6.43 beats by RMB0.62: revenue of RMB34.54B beats by RMB1.28B: revenue +31.9% y/y
• AEP: Q4 EPS of $0.48 misses by $0.02: revenue of $3.6B misses by $300M: revenue -5.3% y/y: reaffirms guidance
• MJN: Q4 EPS of $0.78 beats by $0.05: revenue of $967M in-line: revenue -11.3% y/y: guides in-line
• AN: Q4 EPS of $0.96 misses by $0.08: revenue of $5.15B misses by $310M: revenue +2.6% y/y
• CELG: Q4 EPS Of $1.18 misses by $0.04: revenue of $2.56B beats by $20M: revenue +22.% y/y: guides in-line
• CAT: Q4 EPS of $0.74 beats by $0.04: revenue of $11.03B misses by $420M: revenue -22.5% y/y: guides above estimates
• JBLU: Q4 EPS of $0.56 beats by %0.05: revenue of $1.59B beats by $20M: revenue +9.7% y/y
• VLO: Q4 EPS of $1.79 beats by $0.34: revenue of $18.77B beats by $2.02B: revenue -32.6% y/y
• MO: Q4 EPS Of $0.67 misses by $0.01: revenue of $4.73B misses by $10M: revenue +2.6% y/y: guides in-line
• LLL: Q4 EPS of $2.16 beats by $0.16: revenue of $2.87B misses by $200M: revenue -3.0% y/y: guides EPS above consensus
• BMY: Q4 EPS of $0.38 beats by $0.10: revenue of $4.29B beats by $150M: revenue +0.7% y/y: guides in-line
• UA: Q4 EPS of $0.48 beats by $0.02: revenue of $1.17B beats by $50M: revenue +30.7% y/y: guide FY16 revenue $4.95B vs consensus $4.91B: footwear revenue +95%
• HSY: Q4 EPS of $1.08 beats by $0.03: revenue of $1.91B misses by $70M: revenue -5.0% y/y
• SHW: Q4 EPS of $2.12 beats by $0.25: revenue of $2.60B beats by $10M: revenue +1.2% y/y: guides Q1 EPS $1.50-$1.65 vs consensus $1.62: weak FY16 EPS guidance
• RTN:Q4 EPS of $1.93 beats by $0.12: revenue of $6.3B in-line: revenue +2.6% y/y: mixed guidance: soft FY16 EPS guidance: solid FY16 revenue guidance
• EDP: Q4 EPS of $0.34 misses by $0.01: revenue of $6.16B misses by $1.58B: revenue -39.5% y/y
• XEL: Q4 EPS of $0.41 in-line: revenue of $2.65B misses by $730M: revenue -9.6% y/y
• TGI: FQ3 EPS of $1.39 beats by $0.01: revenue of $913.87M misses by $44.22M: revenue -0.4% y/y: guides FY16 revenue $3.9B vs consensus $3.92B: soft Q4 EPS guidance
• WCC: Q4 EPS of $1.03 beats by $0.01: revenue of $1.86B beats by $20M: revenue -7.0% y/y
• PHM: Q4 EPS of $0.64 may not be comparable to consensus of $0.49: revenue of $2.06B beats by $210M: revenue +13.2% y/y
• HOG: Q4 EPS of $0.22 beats by $0.03: revenue of $1.01B misses by $20M: revenue -1.9% y/y
• JCI: FQ1 EPS of $0.82 in-line: revenue of $8.93B misses by $360M: revenue -7.2% y/y: reaffirms guidance
• OSK: FQ1 EPS of $0.19 beats by $0.12: revenue of $1.25B beats by $50M: revenue -7.4% y/y:  cuts FY16 EPS to $2.20-$2.60 from $3.00-$3.40 vs consensus $3.04
• DGX: Q4 EPS of $1.19 in-line: revenue fo $1.85B in-line: revenue -1.6% y/y: raises quarterly dividend from $0.38 to $0.40

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• ALGN, AMGN, AMZN, ARAY, BCR, CPT, EA, EPAY, FICO, FTNT, GIMO, KLAC, MSFT, MTW, N, PFPT, QSII, RGA, SHOR, SIMO, SWKS, SYNA, TMST, UIS, V, WDC, WERN

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• EMC: upgrade: hold to buy: Maxim Group: pt cut from $30 to $28.50
• NMBL: upgrade: hold to buy: Maxim Group: pt cut from $15 to $14
• SNDK: upgrade: neutral to buy: Mizuho: $86.50
• DLB: upgrade: neutral to buy: Dougherty & Company: $38
• PB: upgrade: market perform to outperform: Keefe Bruyette: $54
• CYH: upgrade: underperform to market perform: Raymond James
• HAL: upgrade: accumulate to buy: KLR Group: $44
• HA: upgrade:underperform to neutral: BofA/Merrill: pt raised from $30 to $40
• CRUS: upgradE; perform to outperform: Oppenheimer
• KMI: upgrade: neutral to outperform: Credit Suisse: pt raised from $18 to $20
• KMI: upgrade: hold to buy: Stifel
• PYPL: upgrade: neutral to outperform: Wedbush: $40
• CTXS: upgrade: underperform to market perform: JMP Securities
• RDC: upgrade: underweight to equal weight: Morgan Stanley

DOWNGRADES:

• NOW: downgrade: buy to neutral: Mizuho: pt cut from $90 to $65
• URI: downgrade: buy to neutral: UBS: pt cut from $94 to $56
• RRC: downgrade: overweight to equal weight: Barclays
• TUP: downgrade: overweight to neutral: Piper Jaffray: $50
• KEX: downgrade: outperform to sector perform: RBC Capital: pt cut from $65 to $32
• QCOM: downgrade: outperform to market perform: William Blair
• TRIP: downgrade: market perform to underperform: Raymond James:
• ROK: downgrade: market perform to underperform: Bernstein: 481
• HCN: downgrade: buy to hold: Evercore: 

INITIATIONS:

• PARR: initiated: outperform: Imperial Capital: $30
• PSTG: initiated: buy: Maxim Group: $22

PRICE TARGET CHANGES:

• FB: pt raised from $155 to $170: Piper Jaffray
• FB: pt raised from $127 to $136: JP Morgan
• FB: pt raised from $125 to $145: Deutsche Bank
• FB: pt raised from $125 to $130: FBR Capital
• FB: pt raised from $130 to $160: RBC Capital
• LVS: pt raised from $44 to $45: Telsey Advisory
• VRTX: pt cut from $180 to $143: Piper Jaffray
• EBAY: pt cut from $30 to $25: Piper Jaffray
• EBAY: pt cut from $30 to $29: RBC Capital
• NSC: pt cut from $93 to $89: Cowen
• RIG: pt cut from $12 to $2.70: Morgan Stanley
• QCOM: pt cut from $52 to $50: Topeka Capital
• QCOM: pt cut from $67 to $60: Brean Capital
• VLY: pt cut from $11 to $9: RBC Capital
• UTX: pt cut from $104 to $100: RBC Capital
• BA: pt cut from $153 to $143: RBC Capital
• PYPL: pt cut from $46 to $42: RBC Capital
• NOW pt cut from $90 to $85: RB Capital
• GD: pt cut from $173 to $166: RBC Capital
• GD: pt range cut from $165-170 to $158-163