Discipline Needed | Morning News

FEBRUARY 09. 2016

FEBRUARY 09, 2016

US futures adding to yesterday's losses at this 8AM hour as market remain volatile and most global market trade lower ahead of Yellen's Congressional testimony which begins tomorrow and lasts through Thursday. Crude struggling as oil trades under $30 with the IEA finding that the oil surplus is worse than expected and stating that "supply may exceed consumption by an average of 1.75M bpd in the first half of 2016".

NEWS:

• SSNI: pre-announces earnings: expects Q3 EPS of $0.07-$0.08 vs consensus $0.06: expects strong revenue: files $200M mixed securities shelf
• BLOX: raises FQ2 guidance: announces $45M security services acquisition
• DIS: In Disney's quarterly results, cord cutting and its impact on ESPN will likely overshadow success from "Star Wars: the Force Awakens", reports the WSJ
• ITC: Fortis acquires ITC Holdings in a $11.3B deal
• RTRX: Goldman reports 5.4% passive stake in Retrophin
• PFE: added to #1 List at BofA/Merrill
• VBIV: announces research agreement with GSK
• DRI: Starboard Value looks to reduce its stake in Darden
• SHLD: announces it expects to report Q4 revenue of $7.3B vs consensus $7.43B: announces plans to accelerate the pace of store closings: comparable SSS fell 7.1% during Q4
• SRPT: Oppenheimer out positive on the stock, stating that the PDUFA delay is positive

THE ECONOMIC CALENDAR:

• 6AM: NFIB Small Business Optimism Index
• 8:55AM: Redbook Chain Store Sales
• 10AM: Wholesale Trade
• 10AM: Job Openings and Labor Turnover Survey
• 1PM: $24B, 3 Year Note Auction

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• OMI: Q4 EPS of $0.56 beats by $0.07: revenue of $2.49B misses by $20M: revenue flat y/y: reaffirms FY16 adjusted EPS of $2.00-$2.05 vs consensus of $2.04
• RBC: Q4 EPS of $1.17 beats by $0.06: revenue of $773.5M misses by $62.31M: revenue -0.3% y/y: weak FY16 guidance
• OI: Q4 EPS of $0.40 in-line: revenue of $1.63B beats by $10M: revenue +1.9% y/y: guides below estimates
• FOXA: FQ2 EPS of $0.44 in-line: revenue of $7.38B misses by $130M: revenue -0.5% y/y: weak FY16 guidance
• ONVO: FQ3 EPS of -$0.11 in-line: revenue of $0.33M misses by $0.11: revenue +106.3% y/y: cuts FY16 revenue guidance
• BKD: Q4 EPS of -$0.94 may not be comparable to consensus of $0.46: revenue of $1.23B beats by $10M: revenue -1.6% y/y: soft guidance
• MOH: Q4 EPS of $0.67 beats by $0.06: revenue of $3.77B misses by $110M: revenue +34.6% y/y: 
• PAA: Q4 EPS of $0.38 misses by $0.08: revenue of $5B misses by $2.3B: revenue -47.1% y/y
• QLYS:Q4 EPS of $0.21 beats by $0.04: revenue of $44.45M misses by $0.13: revenue +21.5% y/y: weak FY16 and FQ1 guidance
• WCN: Q4 EPS of $0.49 beats by $0.02: revenue of $531.9M beats by $13.81M: revenue +1.1% y/y: guides revenue below consensus
• PRE:Q4 EPS of $3.74 beats by $1.10: revenue of $1.06B misses by $160M: revenue -13.1% y/y: 
• YELP: (reported early)Q4 EPS of $0.11 beats by $0.14: revenue of $153.7M beats by $1.3M: revenue +39.9% y/y: guides in-line
• CMP: Q4 EPS of $1.72 beats by $0.19: revenue of $289.3M inline: revenue -39.3$% y/y: raises dividend 5%: weak guidance

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• FIS: Q4 EPS of $0.93 beats by $0.01: revenue of $187B misses by $10M: revenue +10.7% y/y: guides FY16 below consensus
• CBM: Q4 EPS of $1.01 beats by $0.18: revenue of $156.94M beats by $4M: revenue -20.8% y/y: guides FY16 adjusted EPS $2.46-$2.58 vs consensus $2.35
• KO: Q4 EPS of $0.38 beats by $0.01: revenue of $10B beats by $90M; revenue -8.3% y/y: enters into non-binding letter to refranchise operations in China: sees currency will be a 5 point headwind on Q1 revenue
• AGU: Q4 EPS of $1.52 beats by $0.14: revenue of $2.41B misses by $440M: revenue -10.7% y/y: guides FY16 EPS $5.50-$7.00 vs consensus $7.01
• HCP: A4 FFO of $0.80 beats bu $0.02: revenue of $668M beats by $53.72M: revenue +10.7% y/y: guides FY16 FFO below consensus
• VIAB: Q4 EPS of $1.18 in-line: revenue of $3.15B misses by $110M: revenue -5.7% y/y
• MAS: Q4 EPS Of $0.29 beats by $0.03: revenue of $1.72B beats by $20M:revenue +3.0% y/y
• CVS: Q4 EPS of $1.53 in-line: revenue of $41.15B in-line: revenue +11.0% y/y: reaffirms FY16 adjusted EPS $5.73-$5.88 vs consensus $5.83: guides FY16 PBM revenue growth of 20.25%-21.75%
• GT: Q4 EPS of $0.93 beats by $0.18: revenue of $4.1B beats by $90M: revenue -6.0% y/y: guides FY16 segment operating income growth of 10-15%
• IR: Q4 EPS of $0.94 beats by $0.01: revenue of $3.32B beats by $20M: revenue +2.5% y/y
• OMC: Q4 EPS of $1.35 beats by $0.02: revenue of $4.15B misses by $30M: revenue -1.2% y/y
• WYN: Q4 EPS of $0.98 in-line: revenue of $1.31b beats by $20M; revenue +6.5% y/y: guides FY16 adjusted EPS $5.46.$5.60 vs consensus $5.58
• REGN:Q4 EPS of $2.83 misses by $0.48: revenue of $1.1B misses by $70M: revenue +37.1% y/y: US Eylea revenue $746M vs $518 last year
• WCG: Q4 EPS of $0.60 beats by $0.01: revenue of $3.41B misses by $70M: revenue +1.8% y/y: guides FY16 EPS $4.35-$4.60 vs consensus $4.50
• WEN: Q4 EPS of $0.12 beats by $0.01: revenue of $464.37M beats by $8.23M; Revenue -4.7% y/y: guides FY16 adjusted EPS $0.35-$0.37 vs consensus $0.36
• CNC: Q4 EPS Of $0.95 beats by $0.09: revenue of $6.3B beats by $130M: revenue +33.5% y/y: guides FY16 adjusted EPS $4.05-$4.40 vs consensus $4.25
• SAVE: Q4 EPS Of $1.02 beats by $0.03: revenue of $519.85M beats by $1.17M: revenue +9.6% y/y:  Q4 revenue per passenger flight segment down 12.6%
• SALE: Q4 EPS of $0.26 beats by $0.08: revenue of $83.15M beats by $7.37M: revenue -4.9% y/y:  announces $50M increase to stock share repurchase program: guides FY16 revenue $225M-$240M vs consensus $247.32M: weak Q1 revenue guidance
• GWR: Q4 EPS of $0.85 misses by $0.01: revenue of $514.85M misses by $2.69M; revenue +23.9% y/y: raises FY16 cash flow by 10% to $285M: all 3 operating segments continue to face weak shipments: guides FY16 EPS below consensus

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• ACM, AGU, BDC, CBM, CDW, CNC, CVS, CYNO, FIS, GLT, GPK, GT, GWR, HCP, IR, KO, LPT, MAS, MCC, MLM, MPW, OAK, OMC, REGN, SALE, SAVE, STE, TDG, TEN, VSH, WEN, WYN

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• YELP: upgrade: sell to neutral: B Riley: $15
• EA: upgrade: neutral to buy: Hilliard Lyons: $67
• CRM: upgrade: underperform to hold: Jefferies: $30
• THS: upgrade: neutral to overweight: JP Morgan: $98
• PVTB: upgrade: neutral to buy: SunTrust: $42
• MT: upgrade: sell to neutral: Goldman:
• TCB: upgrade: sell to neutral: Compass Point: pt cut from $13 to $12.50 
• LUX: upgrade: underperform to hold: Jefferies
• KGC: upgrade: neutral to outperform: Credit Suisse: pt raised from $2.25 to $2.76
• SSNC: upgrade: market perform to outperform: Raymond James: $66

DOWNGRADES:

• ECC: downgrade: buy to neutral: Compass Point: pt cut from $20 to $13
• TYG: downgrade: buy to hold: Stifel:
• BCRX: downgrade: overweight to neutral: JP Morgan: pt cut from $16 to $5
• BCRX: downgrade: buy to hold: Jefferies: pt cut from $14 to $2
• PAA: downgrade: buy to neutral: BofA/Merrill: $20
• PAGP: downgrade: buy to neutral: BofA/Merrill: $8
• QDEL: downgrade: buy to hold: Canaccord: pt cut from $22 to $18
• NRF: downgrade: outperform to market perform: Keefe Bruyette: pt cut from $23 to $13
• ECC: downgrade: buy to neutral: Compass Point: pt cut from $20 to $13
• GGAL: downgrade: underweight to neutral: JP Morgan
• MRD: downgrade: overweight to neutral: JP Morgan
• MT: downgrade: overweight to neutral: JP Morgan
• BRX: downgrade: overweight to equal weight: Barclays: pt cut from $28 to $25
• GOLD: downgrade: buy to hold: Deutsche Bank

INITIATIONS:

• RIO: initiated: underperform: RBC Capital: $37
• BHP: initiated: sector perform: RBC Capital: $15
• CAKE: initiated: buy: Maxim Group: $57
• OPWR: initiated: outperform: Avondale: $13
• LJPC: initiated: outperform: Cowen: $40
• SCMP: initiated: buy: UBS: $20
• DEPO: initiated: buy: UBS: $22
• GKOS: initiated: overweight: Piper Jaffray: $19
• MBLX: initiated: buy: Rodman & Renshaw: $3
• SCRI: initiated: buy: Rodman & Rensahaw: $3

PRICE TARGET CHANGES:

• BFAM: pt raised from $70 to $71: RBC Capital
• GPS: pt raised from $23 to $24: RBC Capital
• FCX: pt raised from $5 to $6.50: Jefferies
• AYI: pt cut from $275 to $231: Piper Jaffray
• FOXA: pt cut from $30 to $27: FBR Capital
• FOXA: pt cut from $30 to $28: Topeka Capital
• FOXA: pt cut from $39 to $29: Stifel
• TMH: pt cut from $67 to $38: Stifel
• ON: pt cut from $12 to $11: Stifel
• AGTC: pt cut from $32 to $29: Stifel
• QLYS: pt cut from $40 to $32: Topeka Capital
• QLYS: pt cut from $37 to $32: JP Morgan
• QLYS: pt cut from $45 to $35: Credit Suisse
• YELP: pt cut from $26 to $19: Piper Jaffray
• YELP: pt cut from $25 to $18: Axiom Capital
• YELP: pt cut from $42 to $33: RBC Capital
• ESS: pt cut from $244 to $214: Canaccord
• ESS: pt cut from $258 to $253: RBC Capital
• CTSH: pt cut from $75 to $68: RBC Capital
• MXL: pt cut from $20 to $22: Stifel
• TRI: pt cut from $41 to $40: RBC Capital
• CEB: pt cut from $84 to $73: RBC Capital
• URI: pt cut from $90 to $60: Jefferies
• PTX: pt cut from $14 to $8: Brean Capital
• TSLA: pt cut from $180 to $165: Barclays