Morning Preview: February 05, 2021

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Early Look

Friday, February 5, 2021









S&P 500










Another day, another record for major averages as the S&P 500, Nasdaq Composite and SmallCap Russell 2000 index each eclipsed their prior all-time highs, while the Dow closed just shy of its record in another rallying cry on Wall Street amid strong earnings and data. It looks like much of the same again this morning, with U.S. futures pointing higher while markets overseas also rise in a generally strong week for global markets. In Asian markets, The Nikkei Index jumped 437 points to 28,779, the Shanghai Index fell -5 points to 3,496 and the Hang Seng Index rose 175 points to 29,288. In Europe, the German DAX is up 25 points to 14,085, while the FTSE 100 is little changed above the 6,500 level. The U.S. Senate approved a budget resolution 51-to-50 that will allow for a fast tracking of the $1.9 trillion coronavirus relief plan proposed by the Biden administration to be approved without Republican support, something stock investors have been waiting on. Vice President Kamala Harris cast the tie-breaking vote. Regarding the recent short interest squeeze market mania, that sent some stocks soaring led by comments and posts on platforms such as Reddit and WallStreetBets, shares have since come crashing down from meteoric highs, but some names look higher this morning. As for the pandemic, Johnson & Johnson (JNJ) submitted an application with U.S. regulators seeking emergency use authorization for its investigational single-dose Covid-19 vaccine candidate.

Market Closing Prices Yesterday

·     The S&P 500 Index jumped 41.57 points, or 1.09%, to 3,871.74

·     The Dow Jones Industrial Average rose 332.26 points, or 1.08%, to 31,055.86

·     The Nasdaq Composite spiked 167.20 points, or 1.23%, to 13,777.74

·     The Russell 2000 Index advanced 42.72 points, or 1.98% to 2,202.42


Events Calendar for Today

·     8:30 AM EST      Nonfarm Payrolls for January…est. 50K

·     8:30 AM EST      Private Payrolls for January…est. 50K

·     8:30 AM EST      Manufacturing Payrolls for Jan…est. 30K

·     8:30 AM EST      Unemployment Rate for Jan…est. 6.7%

·     8:30 AM EST      Average Hourly Earnings MoM for Jan…est. 0.3%

·     1:00 PM EST       Weekly Baker Hughes Rig Data

·     3:00 PM EST       Consumer Credit for December…est. $12.0B


Earnings Calendar:






















10-Year Note





Sector News Breakdown


·     Columbia Sportswear (COLM) 4Q EPS $1.44 vs. est. $1.24 on sales $915.7Mm vs. est. $866.9Mm, inventory yr-end -8% to $556.5Mm; guides FY21 net sales $2.95-3.00B vs. est. $2.85B, sees FY op inc $320-346Mm vs. est. $305.7Mm, op mgn 10.8-11.5%, guides FY EPS $3.75-4.05 vs. est. $3.65

·     Decker’s Outdoors (DECK) Q3 EPS $8.99 vs. est. $7.07; Q3 revenue $1.078B vs. est. $963.38M; Q3 comp store sales rose 33.8%; UGG(R) brand net sales for Q3 increased 12.2% to $876.8 million compared to $781.1 million for the same period last year; HOKA ONE ONE(R) brand net sales for Q3 increased 52.1% to $141.6 million compared to $93.1 million for the same period last year.

·     Ford Motor (F) 4Q adj EPS $0.34 vs. est. $($0.07) on revs $35B vs. est. $33.9B; increases commitments to invest in growth to more than $22B in EVs, $7B in AVs, says estimates from suppliers could suggest losing 10-20% of planned 1Q production due to semiconductor situation, says Mustang Mach-E will be followed by the first E-Transit commercial van in late 2021 and an all-electric F-150 pickup mid-2022

·     GoPro (GPRO) Q4 non-GAAP EPS 39c vs. est. 38c; Q4 revenue $358M vs. est. $373.6M; Ended 2020 with 761,000 GoPro subscribers, up 52% sequentially and 145% year-over-year; Q4 Street ASP increased 14% year-over-year to $323, while 2020 Street ASP increased 13% to $316

·     Leslie Inc. (LESL) Q1 EPS loss (6c) vs. est. loss (11c); Q1 revenue $145M vs. est. $141.23M; Raises Fiscal 2021 sales outlook by $20 million, Adjusted EBITDA by $10 million, and Adjusted net income per share by $0.05; sees FY21 EPS 55c-60c vs. est. 54c; sees FY21 revenue $1.175B $.1.195B vs. est. $.$1.17B

·     Modine Manufacturing (MOD) 3Q adj EPS $0.41 vs. est. $0.28 on sales $484.3Mm vs. est. $468Mm; guides FY21 sales down 7-12% vs. est. -10.65%, sees FY adj EBITDA $155-165Mm vs. est. $155.85Mm

·     Peloton (PTON) Q2 EPS 18c vs. est. 9c; Q2 revenue $1.06B vs. est. $1.03B; Q2 ending Connected Fitness subscriptions grew 134% to 1.67M and Digit subscriptions grew 472% to 625,000. Members grew to over 4.4M; sees Q3 revenue $1.10B vs. est. $1.09B and sees Q3 ending Connected Subscriptions 1.98B and gross profit margin 35%; Q2 average monthly workouts per connected fitness subscription, 21.1 vs 12.6 in the year- ago period

·     Skecher’s (SKX) Q4 EPS 34c vs. est. 30c; Q4 sales $1.32B vs. est. $1.31B; not providing guidance due to pandemic; qtrly china sales grew 29.7% year-over-year; qtrly domestic wholesale sales grew 1.2% year-over-year

·     Wynn Resorts (WYNN) Q4 adjusted EPS loss ($2.45) vs. est. loss ($2.31); Q4 revenue $686M below consensus $722.3M; operating revenues were $686.0 mln for q4 of 2020, a decrease of 58.5%; operating revenues from Wynn Macau were $181.9 mln for q4 of 2020, a 65.4% decrease; operating revenues from Las Vegas operations were $172.5 mln for q4 of 2020, a 53.2% decrease


Energy, Industrials and Materials

·     Chevron Corp. (CVX) said it made a nonbinding proposal to acquire the rest of midstream infrastructure company Noble Midstream Partners LP (NBLX) in a stock swap; CVX which already owns roughly 62.5% of Noble, said it offered to exchange $12.47 of stock for each remaining unit, equal to Thursday’s closing price

·     CMS Energy (CMS) upgraded to Outperform from Neutral at Credit Suisse

·     CN Energy (CNEY) 5M share IPO priced at $4.00

·     Document Security (DSS) 12.3M share Secondary priced at $2.80

·     Northern Oil and Gas (NOG) 12.5M share Secondary priced at $9.75

·     National Oilwell (NOV) Q4 EPS loss (90c) vs. est. loss (19c); Q4 revenue $1.33B vs. est. $1.34B; qtrly new orders booked improved 27 percent sequentially to $215M; backlog for capital equipment orders for completion & production solutions at Dec 31, 2020 was $696M

·     Werner Enterprises (WERN) Q4 adj EPS 89c vs. est. 78c; Q4 revenue $620.3M vs. est. $615.62M; Operating margin of 16.5% increased 430 basis points from 12.2%; non-GAAP adjusted operating margin of 16.8% increased 440 basis points from 12.4%



·     Janus Henderson Group (JHG) 30.7M share Secondary priced at $29.25

·     Opendoor Technologies (OPEN) 28M share Secondary priced at $27.00

·     Fleetcor Technologies (FLT) Q4 adj EPS $3.01 vs. est. $2.81; Q4 revenue $617.3M vs. est. $603.24M; sees Q1 adjusted EPS $2.60-$2.80 below consensus $2.96; sees FY21 adjusted EPS $11.90-$12.70 vs. est. $12.65 and revs $2.6B-$2.7B vs. est. $2.67B

·     Hartford Financial (HIG) 4Q core EPS $1.76 vs. est. $1.33, qtr-end BV/share $50.39, qtrly consolidated net investment income $556Mm vs. est. $426.3Mm



·     Clover Health Investments (CLOV) got letter from SEC indicating it is conducting investigation, requesting document, data preservation from Jan 1, 2020, to present; company intends to cooperate with sec’s investigation; SEC letter relates to certain matters that are referenced in Hindenburg research article on Feb. 4, 2021 – Reuters

·     Johnson & Johnson (JNJ) applied to the FDA for emergency use authorization for its single-shot COVID-19 vaccine

·     Evaxion Biotech (EVAX) 3M share IPO priced at $10.00

·     Immunocore (IMCR) 9.936M share IPO priced at $26.00

·     Lucira Health (LHDX) 9M share IPO priced at $17.00

·     Pharvaris (PHVS) 8.27M share IPO priced at $20.00

·     Rhythm Pharmaceuticals (RYTM) 5M share Secondary priced at $30.00

·     Terns Pharmaceuticals (TERN) 7.5M share IPO priced at $17.00

·     Veracyte (VCYT) 7.432M share Secondary priced at $74.00

·     T2 Biosystems Inc. (TTOO) shares rose after hours after the company said its T2SARS-CoV-2 Panel can detect the Brazil variant of the SARS-CoV-2, the virus responsible for Covid-19 infections

·     Arrowhead Pharma (ARWR) 1Q EPS ($0.20) vs. est. ($0.27) on revs $21.3Mm vs. est. $33.9Mm

·     Gilead Sciences (GILD) 4Q adj EPS $2.19 vs. est. $2.15 on revs $7.42B vs. est. $7.33B; sees FY21 adj EPS $6.75-7.45 vs. est. $6.85; expects a gradual recovery in underlying market dynamics starting 2Q21

·     Mettled Toledo (MTD) Q4 adj EPS $9.26 vs. est. $8.72; Q4 revenue $938M vs. est. $904.2M; raises FY21 adjusted EPS view to $29.20-$29.80 from $27.50-$28.30 (est. $27.91) and ups FY21 local currency sales growth view to 5%-7% from 4%-6%

·     Neurocrine Biosciences (NBIX) Q4 EPS 91c vs. est. 54c; Q4 revenue $247.9M vs. est. $260.49M; INGREZZA net product sales for Q4 and full-year 2020 were $240 million and $993 million, respectively, representing an increase of 1% and 32% versus respective 2019 comparable periods

·     Twist Biosciences (TWST) 1Q EPS ($0.72) vs. est. ($0.74) on revs $28.2Mm vs. est. $25.4Mm, total orders received $33.6Mm; maintains FY rev guide of $110-118Mm vs. est. $116Mm

·     Varex Imaging (VREX) 1Q adj EPS $0.08 vs. est. $0.04 on revs $177Mm vs. est. $172.1Mm; guides 2Q revs $180-200Mm vs. est. $178.4Mm, sees 2Q adj EPS $0.05-0.25 vs. est. $0.04


Media & Telecom

·     Lionsgate (LGF/A) Q3 adj EPS 21c vs. est. loss (11c); Q3 revenue $836.4M vs. est. $776.47M;

·     News Corp. (NWSA) Q2 adj EPS 34c vs. est. 11c; Q2 revs $2.41B vs. est. $2.24B; 2Q Book Publishing Rev $544M, Digital Real-Estate Services Rev $339M, Dow Jones Rev $446M, 2Q News Media Rev $573M and 2Q Subscription Video Services Rev $511M

·     T-Mobile (TMUS) Q4 EPS 60c vs. est. 51c; Q4 revenue $20.3B vs. est. $19.93B; total net additions of 1.7 million in Q4 2020; 5.6 million in full-year 2020, highest in four years; Postpaid net additions of 1.6 million in Q4 2020; 5.5 million in full-year 2020, most in company history; Postpaid phone net additions of 824 thousand in Q4 2020, – 2.2 million in full-year 2020.

·     WWE Inc. (WWE) 4Q adj EPS $0.24 on revs $238.2Mm vs. est. $245.7Mm; sees 2021 adj OIBDA $270-$305Mm, estimates adj OIBDA range would be 15-20% higher without Covid, expects significant yr/yr increase in expense base due to return of employees from furlough, not reinstating qtrly guidance at this time



·     Activision (ATVI) Q4 EPS 76c vs. est. $1.18; Q4 revenue $2.41B vs. est. $2.83B; generated $2.25 billion in operating cash flow for the year as compared with $1.83 billion for 2019. For the quarter, operating cash flow was $1.14 billion; qtrly net bookings from digital channels were $2.34 bln vs $1.88 bln; qtrly in-game net bookings were $1.32 bln

· (BILL) Q2 adj EPS loss (3c) vs. est. loss (8c); Q2 revenue $54M vs. est. $47.07M; Core Revenue Increased 59% Year-over-Year; Total Payment Volume was $35 Billion, up 40% Year-over-Year; Transaction Fees Increased 98% Year-over-Year

·     Microchip (MCHP) Q3 non-GAAP EPS $1.62 vs. est. $1.58; Q3 revenue $1.35B vs. est. $1.36B; Adjusted gross margin was 63% vs. the 62.6% estimate and 61.5% in last year’s quarter; operating margin was 39.8% (both set new records)

·     Monolithic Power (MPWR) Q4 EPS $1.31 vs. est. $1.24; Q4 revenue $233.04M vs. est. $225.74M;

·     New Relic (NEWR) 3Q adj EPS ($0.14) vs. est. ($0.16) on revs $166Mm vs. est. $165Mm; guides 4Q adj EPS loss $0.45-0.49 vs. est. ($0.16), sees 4Q revs +4% vs. est. +7%

·     NortonLifeLock (NLOK) Q3 adj EPS 38c vs. est. 37c; Q3 revenue $639M vs. est. $630.53M; sees Q4 adjusted EPS 37c-39c vs. est. 37c and sees Q4 revenue $655M-$66M vs. est. $633.96M; Operating margin was 51.0%, up 14.8 points; consumer reported billings was $700 million, up 10% in USD; Direct customer count of 21.0 million, up over 876,000

·     Paylocity Holding (PCTY) 2Q EPS $0.17 vs. est. $0.25 on revs $146.3Mm vs. est. $143.5Mm; guides 3Q revs $182.5-186.5Mm vs. est. $188.66Mm, sees 3Q adj EBITDA $59-62Mm vs. est. $64.3Mm, sees FY21 revs $623.5-628.5Mm vs. est. $626.9Mm, sees FY adj EBITDA $152-156Mm vs. est. $157.6Mm

·     Pinterest (PINS) 4Q revs $706Mm vs. est. $645.6Mm, 4Q ad EPS $0.43 vs. est. $0.32, qtrly US MAUs 98Mm +11%, qtrly international MAUs 361Mm +46%, monthly active users at yr-end were 459Mm +37%; sees 1Q revs +low-70’s% yr/yr vs. est. +56.5%

·     Plantronics (PLT) 3Q adj EPS $1.47 vs. est. $0.95 on revs $485Mm vs. est. $432Mm; guides 4Q adj EPS $0.80-1.00 vs. est. $0.83, sees 4Q net revs $438-468Mm vs. est. $415.3Mm

·     Proofpoint (PFPT) Q4 EPS 51c vs. est. 42c; Q4 revenue $275.13M vs. est. $269.28M; Q4 billings of $374.9M, up 8% year-over-year; sees FY21 EPS $1.91-$1.99 vs. est. $2.05; sees FY21 revenue $1.19B-$1.2B vs. est. $1.19B; sees FY21 gross margin 80%

·     Snap Inc. (SNAP) Q4 adj EPS 9c vs. est. 7c; Q4 revenue $911.32M vs. est. $857.39M; Q4 DAUs up 22% year-over-year to 265M vs. est. 258M; sees Q1 revenue $720M-$740M vs. est. $704.57M; ended 2020 with over $3.5 bln in available working capital inclusive of cash, marketable securities, existing credit facilities; experienced interruption to advertising demand in 1st 2 weeks of Jan as many brand advertisers paused campaigns amid events at Capitol

·     Synaptics (SYNA) Q2 EPS $2.30 vs. est. $2.13; Q2 revenue $357.6M vs. est. $357.37M; sees Q3 revenue $310M-$340M vs. est. $305.81M; sees Q3 gross margin 51.5%-53.5%; Record revenue for IoT and PC businesses for the December quarter; GAAP Gross Margin of 42.1%

·     Unity Software (U) Q4 EPS loss (10c) vs. est. loss (14c); Q4 revenue $220.3M vs. est. $204.23M; sees FY21 revenue $950M-$970M vs. est. $956.08M; Monthly active end users, downloads, and mobile market share hit record levels; 793 customers each generated more than $100,000 of revenue in the trailing 12 months as of December 31, 2020, compared to 600 as of December 31, 2019; expects a ~3% revenue hit from Apple’s new IDFA policy

·     Zendesk (ZEN) 4Q adj EPS $0.11 vs. est. $0.15 on revs $283.5Mm vs. est. $277.9Mm; guides 1Q revs $291-296Mm vs. est. $290.6Mm, sees 1Q adj op inc $15-19Mm; guides FY21 revs $1.28-1.305B vs. est. $1.28B


Market commentary provided by Hammerstone Markets, Inc, a firm separate from and not affiliated with Regal Securities. Regal Securities has not participated in the creation of the content, and does not explicitly or implicitly endorse the content.

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