Early Look

Friday, August 6, 2021

Futures	Up/Down	%	Last
Dow	28.00	0.08%	34,971
S&P 500	2.25	0.05%	4,423
Nasdaq	-22.50	0.15%	15,145

 

 

After closing at record highs for both the S&P 500 and Nasdaq Composite, markets are looking flat-to-mixed ahead of the key monthly U.S. payrolls report at 8:30 data where non-farm payrolls are expected to add 870K jobs, private payrolls about 700K and the unemployment rate to drop to 5.7% from 5.9% the prior month. The numbers are closely watched, and again could be a “goldilocks” scenario as a strong number points to an improving economy, while a bad number could continue to stretch out the FOMC’s asset purchases (after discussing tapering timetables recently) and rates staying at record lows. Expectations for a strong payrolls report following Thursday’s announcement of a second weekly drop in U.S. jobless claims could lead to market swings. The spread of the Covid-19 delta variant is also delaying and complicating companies’ return-to-office plans. Oil prices are looking higher, though are down more than 6% this week, headed for the biggest five-day loss this year. Gold prices edge lower, Treasury yields higher ahead of the jobs report. Stocks rose on Thursday as data boosted confidence in the reflation trade, with the small cap Russell 2000 notching its biggest daily percentage gain since July 21, while the financial and energy sectors paced S&P 500. In Asian markets, The Nikkei Index gains 90 points to settle the week at 27,820, the Shanghai Index dipped -8 points to 3,458 and the Hang Seng Index slipped -25 points to 26,179. In Europe, the German DAX is higher by 30 points to 15,775, while the FTSE 100 is up a few points to 7,125.

Events Calendar for Today

·     8:30 AM ET         Nonfarm Payroll report for July…est. 870K

·     8:30 AM ET         Private Payrolls for July…est. 700K

·     8:30 AM ET         Manufacturing Payrolls for July…est. 25K

·     8:30 AM ET         Unemployment Rate for July…est. 5.7%

·     8:30 AM ET         Average Hourly Earnings …est. 0.3%

·     10:00 AM ET      Wholesale Inventories MoM for June…est. 0.8%

·     3:00 PM ET         Consumer Credit for June…est. $23.0B

·     1:00 PM EST       Baker Hughes Weekly rig count data

 

Earnings Calendar:

·     Earnings Before the Open: AMCX, AMR, ANIP, BWEN, CNK, D, DKNG, EAF, ESNT, FLR, FWONA, GCI, GT, IEP, KOP, LEA, LSXMA, MD, MGP, MMI, NCLH, NUAN, OFIX, PAYA, PLXP, QRTEA, ROAD, RUTH, SPB, TILE, TWST, VNT, VTR

 

Other Key Events:

·     Piper Wealth Management Forum (virtual), 8/3-8/6

·     Needham 10th Annual Industrial Technologies 1:1 Conference (virtual), 8/6-8/9

 

Market Closing Prices Yesterday

·     The S&P 500 Index gained 26.44 points, or 0.60%, to 4,429.10

·     The Dow Jones Industrial Average rose 271.58 points, or 0.78%, to 35,064.25

·     The Nasdaq Composite jumped 114.58 points, or 0.78%, to 14,895.12

·     The Russell 2000 Index advanced 39.69 points, or 1.81% to 2,236.01

 

 

Macro	Up/Down	Last
Nymex	0.78	69.87
Brent	0.82	72,11
Gold	-6.50	1,797.90
EUR/USD	-0.0022	1.1918
JPY/USD	0.04	109.81
10-Year Note	+0.04	1.257%

 

 

Sector News Breakdown

Consumer

·     Beyond Meat (BYND) Q2 EPS loss (-$0.31) vs. est. loss (-$0.23); Q2 revs $149.4M vs. est. $142.62M; sees Q3 revs $120M-$140M vs. est. $153.7M; qtrly gross profit was $47.4M, or gross margin of 31.7% of net revs; Q2 adjusted Ebitda was a loss of $2.2M, or -1.5% of net revenues

·     Beacon Roofing (BECN) Q3 EPS $0.91 vs. est. $1.32; Q3 revs $1.87B vs. est. $1.81B; Residential roofing product sales increased 18.0%, complementary product sales increased 35.1%, and non-residential roofing product sales increased 16.3% compared to the prior year; Gross margin improved from 23.8% in the prior year to 27.6%

·     Funko (FNKO) Q2 EPS $0.36 vs. est. $0.18; Q2 revs $236.1M vs. est. $205.15M; sees FY21 adj EPS $1.06-$1.19 vs. est. $1.10; sees FY21 revenue $900M-$930M vs. est. $881.92M

·     Golden Entertainment, Inc. (GDEN) 2Q EPS $3.26 vs est. $0.49 on revs $292.5Mm vs est. $251.8Mm, says all casino properties and distributed gaming ops achieved highest qtrly adj EBITDA in company history

·     GoPro (GPRO) Q2 adj EPS $0.12 vs. est. $0.04; Q2 revs $250M vs. est. $232.31M; said its subscription-centric strategy delivered a stellar Q2 with improved margins and 86% year-over-year revenue growth; Closed Q2 with 1,160,000 GoPro subscribers, up 23% sequentially and 211% YoY; GoPro.com revenue increased 48% YoY to $88M in Q2, or 35% of total revenue

·     Monster Beverage (MNST) 2Q EPS $0.75 vs est. $0.68 on revs $1.46B vs est. $1.4B

·     Post Holdings, Inc. (POST) announced it plans to distribute a significant portion of its interest in BellRing Brands, Inc. (BRBR) to shareholders of Post

·     Shake Shack (SHAK) 2Q adj pro forma EPS $0.05 vs est. ($0.07) on revs $187.5Mm vs est. $175.9Mm, comps +52.7%; guides 3Q revs $194-200Mm, comps +mid-high-20s%, shack-level op margin 15-17%; guides FY domestic company-op shack openings +35-38, sees gross licensed shack openings +20-25

·     Turtle Beach (HEAR) 2Q adj EPS $0.14 vs est. ($0.10) on revs $78.6Mm vs est. $70.2Mm, sees FY revs about $385Mm vs est. $385.1Mm, sees FY adj EPS about $1.55 vs est. $1.50

 

Energy

·     SunRun (RUN) Q2 EPS loss (-$0.20) vs. est. loss (-$0.08); Q2 revs $401.2M vs. est. $366.56M; now expects to accelerate its growth rate to 30%, an increase from prior guidance of 25% to 30%; announces Co-Founder and CEO Lynn Jurich to transition to executive co-chair of the Bd; Mary Powell to Become Company’s Next CEO; Customer Additions of 26,110 in Q2, Bringing Total Customers to 599,743, 19% year-over-year growth in Customers pro-forma for Vivint Solar

 

Financials

·     AIG Inc. (AIG) Q2 adjusted EPS $1.52 vs. est. $1.17; raises share repurchase plan to $6B; Q2 adjusted book value per common share $60.07; Q2 book value per common share $76.73

·     Genpact (G) Q2 adj EPS $0.66 vs. est. $0.54; Q2 revs $988M vs. est. $963.49M; raises FY21 adj EPS view to $2.36-$2.39 from $2.27-$2.30 (est. $2.29); boosts FY21 revenue view to $3.96B-$4B from $3.93B-$3.99B (est. $3.97B); raises Global Client revenue growth in the range of 10.5% to 11.5%, from the prior outlook of 9.0% to 11.0%

·     Moody’s (MCO) to acquire RMS, a global provider of climate and natural disaster risk modeling and analytics, for ~$2.0 billion from Daily Mail and General Trust plc.

·     Paylocity Holdings (PCTY) 4Q reported EPS $0.21 vs est. $0.30 on revs $167.5Mm vs est. $162.2Mm; guides 1Q revs $171.5-175.5Mm vs est. $168Mm; guides FY revs $790-795Mm vs est. $774.6Mm

·     Redfin (RDFN) Q2 EPS ($0.29) vs est. ($0.33) on revs $471M vs est. $454.8M; mobile app and website reached 48.4M average monthly users (+14% YoY); sees Q3 loss ($24M)-($20M) on revs $530M-$541M vs est. $487.3M; shares up over 2%

·     Trupanion (TRUP) 2Q EPS ($0.23) vs est. ($0.13) on revs $168.3Mm vs est. $164.9Mm; Total enrolled pets was 1,024,226 at June 30, an increase of 38% over the second quarter of 2020

·     Voya Financial (VOYA) Q2 adj EPS $2.20 vs. est. $1.46; Compared with the prior-year period, Wealth Solutions full service recurring deposits for the trailing twelve months ended June 30, 2021 grew 6.7%, and full-service net flows were $238 million in the second quarter

 

Healthcare

·     Dicerna (DRNA) announces positive top-line results from the Company’s PHYOX 2 pivotal clinical trial of nedosiran, which is in development as a once-monthly treatment for primary hyperoxaluria (PH), a family of ultra-rare, life-threatening genetic disorders that initially manifest with complications in the kidneys

·     Endo Pharma (ENDP) 2Q EPS $0.65 vs est. $0.48 on revs $714Mm vs est. $661.3Mm; guides FY revs $2.73-2.79B vs est. $2.73B, sees FY adj EPS $2.15-2.30 vs est. $2.19

·     Fluidigm (FLDM) 2Q EPS ($0.23) vs est. ($0.20) on revs $31Mm vs est. $31mm; guides 3Q revs $29-31Mm vs est. $34.2Mm, sees FY revs $134-140Mm vs est. $136.1Mm

·     Illumina (ILMN) Q2 adj EPS $1.87 vs. est. $1.35; Q2 revs $1.13B vs. est. $1.01B; sees FY21 adjusted EPS $6.30-$6.50 vs. est. $6.02; now expects YoY revenue growth in the range of 32% to 34%, GAAP earnings per diluted share of $4.69 to $4.89, and non-GAAP earnings per diluted share of $6.30 to $6.50.

·     Insulet (PODD) Q2 EPS loss (-$0.37) vs. est. $0.13; Q2 revs $263.2M vs. est. $259.19M; for year ending December 31, 2021, is reaffirming its revenue guidance range of 16% to 20% and sees Q3 rev growth 11%-18%

·     Novavax (NVAX) shares fell -7%; Q2 EPS loss ($4.75) vs. est. loss ($3.63); Q2 revs $298M vs. est. $387.87M; as of June 30, 2021, Novavax had $2.1B in cash, cash equivalents and restricted cash, compared to $806M as of December 31, 2020; net cash provided by operating activities for the first six months of 2021 was $807M, compared to $93M for the same period in 2020.

·     Puma Biotechnology (PBYI) Q2 adj EPS $0.32 vs. est. loss (-$0.27); Q2 revs $53.4M vs. est. $51.6M; Net NERLYNX revenue in the second quarter of 2021 was $48.9 million, compared to $48.8 million in the second quarter of 2020

·     Quidel Corp. (QDEL) shares fell -7%; Q2 EPS $0.45 vs est. $1.20 on revs $176.6M vs est. $174.4M as sales of Covid-related products fell to $83.4M vs $109M YoY and influenza products $1.6M vs $18.7M YoY

 

Industrials & Materials

·     Alarm.com (ALRM) 2Q adj EPS $0.54 vs est. $0.39 on revs $188.9Mm vs est. $162.7Mm; sees 3Q SAAS and license revs $114.9-115.1Mm, guides FY adj EPS $1.77-1.79 vs est. $1.69, sees FY revs $707.3-717.8Mm vs est. $684.2Mm, sees FY SAAS and license revs $452.3-452.8Mm

·     Axon Enterprise, Inc. (AXON) 2Q adj EPS ($0.38 vs est. $0.23 on revs $219Mm vs est. $175.2Mm; guides FY revs $825-850Mm vs est. $806.7Mm, sees adj EBITDA $155-160Mm vs est. $150Mm

·     Flowserve Corp. (FLS) 2Q adj EPS $0.37 vs est. $0.42 on sales $898.2Mm vs est. $899Mm; bookings $952.8Mm +17.9%; guides FY revs -2% to -4% vs est. -2.1%, sees FY adj EPS $1.45-1.65 vs est. $1.65

·     ITT Inc. (ITT) 2Q adj EPS $0.94 vs est. $0.90 on revs $691.6Mm vs est. $653.5Mm; guides FY revs +11-13% vs est. $+10.4%, sees FY adj EPS $3.90-4.05 vs est. $3.98

·     Livent (LTHM) Q2 adj EPS $0.04 vs. est. $0.02; Q2 revs $102.2M vs. est. $88.75M; raises FY21 revenue view to $370M-$390M from $335M-$365M (est. $364.69M); boosts FY21 Adjusted EBITDA view to $55M-$70M from $40M-$60M

·     MasTec (MTZ) 2Q $1.30 vs est. $1.24 on revs $2.0B vs est. $2.09B; guides 3Q adj EPS $1.71 vs est. $1.70, sees 3Q revs about $2.3B vs est. $2.28B; guides FY adj EPS $5.45 vs est. $5.42; reports record 18-month backlog of $9.2B

·     Virgin Galactic (SPCE) Q2 EPS loss (-0.39) vs. est. loss (-$0.33); Q2 revs $571K vs. est. $380K; said its cash position remains strong, with cash and cash equivalents of $552 million as of June 30, 2021

 

Media & Telecom

·     Lions Gate (LGF/A) Q1 adj EPS $0.18 vs. est. loss (-$0.18); Q1 revs $901.2M vs. est. $904.41M; Adjusted OIBDA was $119.8 Million; global Media Networks Subscribers were 28.9 Million; global Streaming Subscribers were 16.7 Million, reflecting 58% Year-Over-Year Growth; STARZPLAY International Subscribers More than Doubled Year-Over-Year to 7.0 Million

·     News Corp (NWSA) Q4 adj EPS $0.16 vs. est. $0.05; Q4 revs $2.49B vs. est. $2.24B; Foxtel’s streaming products exceeded 2 mln total paid subscribers as of year-end; qtrly book publishing continued to benefit from strong consumption patterns with 19% revenue growth; Dow Jones saw record digital subscriptions in qtr; Q4 news media revenue $595M vs $490M and qtrly book publishing revenue $493M vs $407M

 

Internet:

·     CarGurus (CARG) 2Q adj EPS $0.23 vs est. $0.25 on revs $217.7Mm vs est. $190.3Mm; guides 3Q revs $210-216Mm vs est. $199Mm, sees 3Q adj EPS $0.30-0.32 vs est. $0.26

·     Expedia (EXPE) Q2 adj EPS loss ($1.13) vs. est. loss (-$0.65); Q2 revs $2.11B vs. est. $2B; Q2 gross bookings $20.82B, up 667% yoy; said Booking trends for lodging, air, and other travel products all improved sequentially from the first quarter of 2021

·     TripAdvisor (TRIP) Q2 EPS loss (-$0.07) vs. est. loss (-$0.11); Q2 revs $235M vs. est. $188.57M

·     TrueCar (TRUE) 2Q EPS ($0.07) vs est. ($0.03) on revs $65.8Mm vs est. $65.9Mm; expect above breakeven adj EBITDA for 3Q; not providing other formal guidance for 3Q or FY at this time

·     Yelp Inc. (YELP) Q2 EPS $0.05 vs est. ($0.09) on revs $257.2M vs est. $245.6M, adj EBITDA $63.8M vs. est. $41.5M; board authorized a $250M increase to its stock repurchase program; raised FY21 outlooks for sales to $1.01B-$1.03B from $1B-$1.02B (est. $1.01B) and adj EBITDA to $200M-$220M from $175M-$195M; YoY revenue growth of +57% was best since 2015 and revs were +4% vs 2Q19; users using app to make reservations +45% vs 2Q19, ad revs +23% vs 2Q19

·     Zillow (ZG) Q2 EPS $0.44 vs est. $0.24 on revs $1.3B vs est. $1.28B, adj EBITDA $183M; mobile app and website traffic reached 229M average monthly unique users (+5% YoY), 2.8B total visits (+10% YoY); ends the quarter with $4.6B in cash and investments; sees Q3 revs $1.93B-$2.05B vs est. $1.45B, which includes forecast for Homes segment revs $1.4B-$1.5B vs est. $900M

 

Technology

·     Appian Corp. (APPN) 2Q adj EPS ($0.24) vs est. ($0.23) on revs $83Mm vs est. $78.2Mm; guides 3Q adj EPS loss $0.17-0.23 vs est. EPS loss $0.18, sees 3Q revs $90.5-91Mm vs est. $90.1Mm

·     Bandwidth (BAND) 2Q adj EPS $0.32 vs est. $0.09 on revs $120.7Mm vs est. $116.5Mm; guides 3Q adj EPS $0.07-0.09 vs est. $0.04, sees 3Q revs $123.6-124.6Mm vs est. $118.5Mm; guides FY adj EPS $0.71-0.75 vs est. $0.49, sees FY revs $484.8-486.8Mm vs est. $475.1Mm

·     Brooks Automation (BRKS) Q3 adj EPS $0.72 vs. est. $0.69; Q2 revs $315M vs. est. $308.37M; sees Q4 adj EPS $0.71-$0.81 vs. est. $0.67; sees Q4 revs $328M-$348M vs. est. $313.33M

·     Cloudflare (NET) Q2 adj EPS loss (-$0.02) vs. est. loss (-$0.03); Q2 revs $152.4M vs. est. $146.06M; said revenue growth continued to accelerate, growing 53% year-over-year while added a record number of large customers; sees Q3 adjusted EPS loss (4c)-(3c) vs. est. loss (2c); sees Q3 revs $165M-$166M vs. est. $157.44M

·     Cornerstone OnDemand (CSOD) announced it has entered into a definitive agreement to be acquired by Clearlake Capital Group for $57.50 per share or $5.2B

·     Dropbox (DBX) Q2 EPS $0.40 vs. est. $0.33; Q2 revs $530.6M vs. est. $524.06M; Q2 total ARR ended at $2.166B, an increase of $53.8M QoQ and an increase of 12.2% yoy; on a constant currency basis, yoy growth would have been 10.6%; Q2 paying users ended at 16.14 million, as compared to 14.96 million for the same period last year; raises year guidance

·     FireEye (FEYE) shares fell -11%; Q2 EPS in-line $0.09 on revs $248M vs est. $248.9M; sees Q3 adj EPS 5c-7c vs est. 11c on revs $118M-$122M vs est. $257M, saying its spinoff of its legacy products business to focus on cloud-based services will result in higher costs

·     Groupon (GRPN) 2Q adj EPS $0.33 vs est. ($0.03) on revs $266Mm vs est. $242.5Mm; guides FY adj EBITDA $115-125Mm vs est. $117.2Mm

·     LiveRamp Holdings, Inc. (RAMP) 1Q adj EPS $0.09 vs est. ($0.02) on revs $119Mm vs est. $112Mm; guides 2Q revs about $124Mm vs est. $121.7Mm; guides FY revs about +18% vs est. +14.9%

·     Synaptics (SYNA) Q4 EPS $2.18 vs. est. $2.00; Q4 revs $327.8M vs. est. $324.45M; sees Q1 revs $355M-$385M vs. est. $349.05M; sees Q1 non- GAAP gross margin 57%-58%; guides Q1 non-GAAP operating expense $87M-$90M

·     Teradata Corp. (TDC) 2Q adj EPS $0.74 vs est. $0.46 on revs $491Mm vs est. $475.4Mm; guides 3Q adj EPS $0.30-0.34 vs est. $0.29; guides FY revs +lsd-msd% vs est. +3.8%, sees FY adj EPS $1.92-1.96 vs est. $1.58

·     Universal Display (OLED) 2Q EPS $0.85 vs est. $0.88 on revs $129.7Mm vs est. $128Mm; continues to guide FY revs $530-560Mm vs est. $558.9Mm

·     Velodyne Lidar (VLDR) 2Q adj EPS ($0.18) vs est. ($0.14) on revs $13.6Mm vs est. $17.2Mm; guides FY revs $77-94Mm vs est. $85.7Mm

·     Zynga (ZNGA) entered into a definitive agreement to acquire StarLark, developer of the fast-growing and second-largest mobile golf game in the world, Golf Rival, from Betta Games for $525 million in cash and stock