Patience is Mandatory | Morning News

FEBRUARY 18, 2016
US futures follow mostly green arrows around the world, pointing to added gains at this hour as investors weigh the Feds' Bullard's comment that raising interest rates would be unwise. Overnight, crude gained another leg up, adding to yesterday's strength after Iran's oil minister said he would support a production ceiling to stabilize oil prices.

NEWS:

• TM: recalls 1M+ RAV4's on seat belt flaw
• ZFGN: announces successful mid-stage obesity study for beloranib
• ATHX: announces one year follow up shows encouraging results from MultiStem therapy
• KAR: raises quarterly dividend 7.2% to $0.29
• FL: raises quarterly dividend 10% to $0.275
• DLR: raises quarterly dividend 3.5% to $0.88
• NHI: raises quarterly dividend 5.9% to $0.90
• IM: Chinese logistics firm Tianjim Tianhai to acquire Ingram Micro in $6B deal or $38.90/share (TECD, SNX, ARW trading higher on this news)
• COP: announces an additional $300M will be added to their buyback
• MRVL: announces that the company has settled the Carnegie Mellon's infringement suit for $750M
• RDY: announces authorization of a share repurchases plan to up to $235M
• AMZN: Amazon expanding deliveries by its "on-demand" drivers, reports reuters
• EA: prices $1B in senior debt: announces that it may use some proceeds for $500M buyback

THE ECONOMIC CALENDAR:

• 7:30AM: ECB minutes of January meeting
• 8:30AM: Weekly Jobless Claims
• 8:30AM: Philly Fed Business Outlook
• 9:45AM: Bloomberg Consumer Comfort Index
• 10AM: Leading Indicators
• 10:30AM: EIA Natural Gas Inventory
• 10:30AM: EIA Petroleum Inventories
• 4:30: Money Supply and Fed Balance Sheet

SOME NOTABLE EARNINGS REPORTED YESTERDAY AFTER THE CLOSE:

• NVDA: Q4 EPS of $0.52 beats by $0.20: revenue of $1.4B beats by $90M: revenue +12.0% y/y:  guides revenue above consensus: announces plans to cut 12% of workforce
• ARRS: Q4 EPS of $0.62 beats by $0.15: revenue of $1.1B misses by $30M: revenue -12.7% y/y: soft Q1 guidance
• CF: Q4 EPS of $0.76 misses by $0.06: revenue of $1.12B beats by $40M: revenue -8.2% y/y
• JACK: FQ1 EPS of $0.93 misses by $0.10: revenue of $470.82M misses by $4.67M: revenue +0.5% y/y: lowers guidance but remains in-line
• ABX: Q4 EPS of $0.08 beats by $0.02: revenue of $2.24B beats by $20M; revenue -10.8% y/y: guides FY16 CapEx $1.35-$1.65
• SNPS: FQ1 EPS of $0.68 beats by $0.06: revenue of $568.6M in-line: revenue +4.9% y/y: guides Q2 above estimates: reaffirms FY16 guidance
• BRCD: FQ1 EPS of $0.29 beats by $0.05: revenue of $574M beats by $12.84M: revenue -0.4% y/y: guides in-line
• SPWR: Q4 EPS of $1.73 beats by $0.20: revenue of $1.36B beats by $90M: revenue +123.1% y/y: lowers guidance
• NTAP:FQ3 EOS if $0.70 beats by $0.02: revenue of $1.39B misses by $60M: revenue -10.3% y/y:  guides below consensus
• LZB: FQ3 EPS of $0.43 beats by $0.03: revenue of $384.01M beats by $7.47M: revenue +7.3% y/y: 
• MRO: Q4 EPS of -$0.48 in-line: revenue of $1.48B beats by $310M: revenue -40.8% y/y:  cutting CapEx by 50%+
• OIS: Q4 EPS  of 40.13 beats by $0.15: revenue of $234.47M misses by $13.35M: revenue -51.5% y/y: announces resignation of chairman Stephen Wells
• GDDY: Q4 EPS of $0.00 beats by $0.03: revenue of $425.4M beats by $1.93M; revenue +14.4% y/y: guides sales in-line
• IPAS: Q4 EPS of -$0.04 misses by $0.01: revenue of $15.42M misses by $0.54: revenue -10.1% y/y: announces plants to cut 30% of workforce: guides revenue below consensus
• MAR: Q4 EPS of $0.77 beats by $0.01: revenue of $3.71B misses by $10M: revenue +4.2% y/y: guides FY16 EPS in-line
• CPA: Q4 EPS of $0.73 beats by $0.10: revenue of $532.6M misses by $11.07M: revenue -18.6% y/y
• ALB: Q4 EPS of $1.03 beats by $0.20: revenue of $930.3M beats by $44.56M: revenue +55.4% y/y: guides FY16 adjusted EPS of $3.45-$3.80 vs consensus $3.90
• GPOR: Q4 EPS of -$.016 misses by $0.05: revenue of $190.3M beats by $29.29M: revenue -28.9% y/y:guides Fy16 CapEx $425M-$475M, down 36% 36%-43% y/y
• NEM: Q4 EPS of $0.04 misses by $0.08: revenue of $1.82B in-line: revenue -9.9% y/y

SOME NOTABLE EARNINGS REPORTED TODAY BEFORE THE OPENING:

• PRGO:Q4 EPS Of $1.80 misses by $0.12: revenue of $1.42B misses by $40M: revenue +32.7% y/y:  guides FY16 adjusted EPS $9.50-$9.80 vs consensus $9.74
• DISH: FY15 EPS of $1.61 may not be comparable to consensus of $1.97: revenue of $15.1B beats by $80M: revenue +3.1% y/y
• MGM: Q4 EPS of -$0.05 misses by $0.13: revenue of $2.19B misses by $60M: revenue -8.4% y/y
• SODA: Q4 EPS of $0.24 beats by $0.07: revenue of $112.94M beats by $2.79M: revenue -10.7% y/y
• VA: Q4 EPS of $1.20 in-line: revenue of $391.47M misses by $0.69M: revenue +5.2% y/y: guides Q1 PRASM down 3-5%
• MPEL: Q4 EPS of $0.09 beats by $0.04: revenue of $1.06B in-line: revenue -5.4% y/y
• WMT: Q4 EPS of $1.49 beats by $0.06: revenue of $129.7B misses by $950M: revenue -1.4% y/y:  raises annual dividend to $2.00 from $1.96/share: cuts sales guidance:  sss +0.6% vs consensus 0.9%
• HOT: Q4 EPS ex-items $0.89 beats by $0.10: guides FY16 EPS before special times $2.74-$2.84 vs consensus $3.27: guides Q1 EPS $0.56-$0.59 vs consensus $0.71
• CAB: Q4 EPS of $1.26 beats by $0.05: revenue of $1.4B beats by $20M: revenue +10.2% y/y: guides FY16 revenue high single digit growth
• BCC: Q4 EPS of $0.06 misses by $0.22: revenue of $876.54 beats by $19.55M: revenue +1.7% y/y: lowers Q1 EBITDA guidance in Wood Products business: guides FY16 CapEx $85M-$95M
• KEG: Q4 EPS of -$0.27 beats by $0.04: revenue of $150.2M misses by $2.92M: revenue -57.7% y/y
• H: Q4 EPS of $0.21 misses by $0.03: revenue of $1.11B beats by $10M: revenue +2.8% y/y: guides comparable systemwide RevPAR up 3%-5%
• WM:  Q4 EPS of $0.71 beats by $0.03: revenue of $3.25B misses by $30M: revenue -5.5% y/y: guides FY16 adjusted EPS $2.74-$2.79 vs consensus $2.76
• VAL: FQ1 EPS of $0.66 beats by $0.01: revenue of $885.8M misses by $20.5M: revenue -12.3 % y/y: guides FY16 adjusted EPS $4.80-$5.00 vs consensus $4.88
• GTS: Q4 EPS of $0.45 beats by $0.20: revenue of $768.34M beats by $1.99M; revenue +35.9% y/y
• DAN:Q4 EPS of $0.34 misses by $0.03: revenue of $1.38B beats by $30M: revenue -12.7% y/y
• DUK: Q4 EPS of $0.87 misses by $0.03: guides FY16 adjusted EPS $4.50-$4.70 vs consensus $4.66
• NI: Q4 EPS of $0.31 beats by $0.01: revenue of $1.12B misses by $160M: revenue -19/4% y/y: reaffirms FY16 EPS of $1.00-$1.10 vx consensus $1.06
• NHI: Q4 FFO of $1.17 in-line: revenue of $58.07M beats by $1.5M; revenue +28.4% y/y: guides FY16 FFO 4$4.82-$4.88 vs consensus $4.90

SOME NOTABLE EARNINGS TO BE REPORTED TODAY AFTER THE CLOSE:

• AHS, AMAT, ANET, ARII, AUY, BAS, CAA, CENX, CHEF, CUBE, ECOL, ED, EQIX, FLR, FLS, FR, HTA, INAP, IRWD, JWN, KEYS, LHO, MDRX, MRIN, SAM, TRN, TRUE, WAGE, WIRE, WRE, YUME

ANALYSTS' RATINGS CHANGES:

UPGRADES:

• ATRO: upgrade; sector weight to overweight: KeyBanc: $35
• STNG: upgrade: hold to buy: Deutsche Bank: $9
• RHT: upgrade: neutral to buy: Citi: pt cut from $82 to $79
• AMZN: upgrade: hold to buy: Canaccord: pt raised from $600 to $750
• SHOP: upgrade: hold to buy: Canaccord: $30
• HT: upgrade: market perform to outperform: FBR Capital: pt raised from $26 to $28
• STM: upgrade: sell to neutral: UBS:
• DORM: upgrade: sell to neutral: B Riley
• CVA: upgrade: hold to buy: Stifel: $16.50
• BA: upgrade: underperform to neutral: Buckingham
• BRCD: upgrade: hold to buy: Wunderlich: pt raised from $9.50 to $10.50
• OCUL: upgrade: equal weight to overweight: Morgan Stanley: $15
• LXK: upgrade: sell to underperform: Credit Suisse: $31
• IBM: upgrade: equal weight to overweight: Morgan Stanley: pt raised from $135 to  $140 

DOWNGRADES:

• MEP: downgrade: outperform to underperform: Credit Suisse: pt cut from $16 to $5
• GRMN: downgrade: neutral to underweight: JP Morgan: pt raised from $33 to $36
• ENLC: downgrade; buy to hold: Wunderlich: pt cut from $17 to $8
• NTAP: downgrade: buy to neutral: Baird: pt cut from $35 to $27
• HRL: downgrade: market perform to underperform: CLSA
• FANG: downgrade: buy to hold: Canaccord: pt cut from $71 to $65
• TMH: downgrade: buy to neutral: UBS: pt cut from $67 to $40
• DNKN: downgrade: buy to neutral: CL King
• IM: downgrade: buy to neutral: Citi
• MKC: downgrade: buy to hold: BB&T: 
• EVEP: downgrade: market perform to underperform: Wells Fargo: pt cut from $3-$6 to $1-$4
• LNCO: downgrade:market perform to underperform: Wells Fargo: pt cut to $0-$1

INITIATIONS:

• ADHD: initiated: buy: Jefferies: $10
• SHOO: initiated: buy: Jefferies: $40
• SWN: initiated: buy: Drexel Hamilton: $13
• TRN: initiated: sell: Axiom: $10
• MGNX: initiated: buy: Janney Capital: $36
• RICE: initiated: buy: Drexel Hamilton: $18
• RRC: initiated: buy: Drexel Hamilton: $37
• COG: initiated: buy: Drexel Hamilton: $25
• GTT: initiated: buy: SunTrust: $27
• VSTO: initiated: buy: DA Davidson: $58
• BLKB: initiated: buy: Wunderlich: $69
• PAYC: initiated: buy: Wunderlich: $34

PRICE TARGET CHANGES:

• MRVL: pt raised from $12 to $15: Cowen
• PCLN: pt raised from $1300 to $1460: Oppenheimer
• URBN: pt raised from $23 to $25: RBC Capital
• ITRI: pt raised from $42 to $47: Baird
• NVDA: pt raised from $30 to $34: Wedbush
• NVDA: pt raised fro $38 to $40: Jefferies (reaffirms Top Pick)
• GPOR: pt raised from $30 to $32: Stifel
• DPS: pt raised from $98 to $102: Stifel
• NTAP: pt cut from $43 to $40: Maxim Group
• TYL: pt cut from $211 to $201: Maxim Group
• ARRS; pt cut from $34 to $28: Needham
• CLMT: pt cut from $27 to $22: RBC Capital
• CLMT: pt cut from $32 to $23: Cowen
• SCCO: pt cut from $26 to $24: Cowen
• KALU: pt cut from $88 to $86: Cowen
• FTI: pt cut from $37 to $29: Cowen
• NBR: pt cut from $13.50 to $8.75: Cowen
• SPWR: pt cut from $43 to $38: Cowen
• FUN: pt cut from $64 to $60: FBR Capital
• WCIC: pt cut from $28 to $23: FBR Capital
• CNK: pt cut from $45 to $44: Topeka Capital
• EGN: pt cut from $40 to $35: Topeka Capital
• GPOR: pt cut from $42 to $38: Topeka Capital
• HTS: pt cut from $18 to $16.50: Compass Point
• SCOR: pt cut from $62 to $60: Telsey Advisory
• TOL: pt cut from $37 to $35: RBC Capital
• TEP: pt cut from $48 to $40: RBC Capital
• ENLC: pt cut from $16 to $10: RBC Capital
• ENLK: pt cut from $20 to $14: RBC Capital
• DVN: pt cut from $50 to $35: RBC Capital
• CVA: pt cut from $18.50 to $17: Imperial Capital
• CYBR: pt cut from $42 to $41: Imperial Capital
• WPX: pt cut from $10 to $5.50: Imperial Capital
• SPLK: pt cut from $81 to $44: Citi
• RIG: pt cut from $6 to 42: Citi
• CSLT: pt cut from $7 to $6: Stifel
• DLNG: pt cut from $20 to $18: Stifel
• CYH: pt cut from $35 to $27: UBS
• GWPH: pt cut from $129 to $100: Leerink
• PANW: pt cut from $220 to $165: JMP Securities