Early Look

Friday, February 12, 2021

Futures	Up/Down	%	Last
Dow	-76.00	0.24%	31,283
S&P 500	-11.25	0.28%	3,901
Nasdaq	-26.50	0.19%	13,702

 

 

U.S. futures are looking modestly lower heading into the 3-day holiday weekend, a day after stocks ended mostly higher again as the tech heavy Nasdaq eked out a modest gain with investors continuing to bet on more fiscal stimulus to keep the stock market rally going. The Semiconductor index (SOX) led the performance, trading at new record highs while other sectors benefitted from ongoing positive earnings results. Trade uncertainty poked its head after President Biden told a group of U.S. senators in a meeting to discuss the need to upgrade U.S. infrastructure that the U.S. must raise its game in the face of the challenge from China. Bitcoin mania the new “flavor of the month” for markets, trading to new all-time highs above $48,000 after Mastercard said it was planning to offer support for some cryptocurrencies on its network this year, and Bank of New York Mellon saying it had formed a new unit to help clients hold, transfer and issue digital assets, helping legitimize the crypto currency even further. Overnight, Dow component and media giants Disney (DIS) advanced following solid quarterly earnings results led by streaming subscriptions, benefitting from people still working from home due to Covid-19. In Asian markets, The Nikkei Index fell -42 points to 29,520, the Shanghai Index remained closed for its holiday (last 3,655) and the Hang Seng Index rose134 points to 30,173. In Europe, the German DAX is down -65 points to 13,975, while the FTSE 100 is up a few points to 6,530.

Market Closing Prices Yesterday

·     The S&P 500 Index jumped 6.50 points, or 0.17%, to 3,916.38

·     The Dow Jones Industrial Average slid -7.10 points, or 0.02%, to 31,430.70

·     The Nasdaq Composite gained 53.24 points, or 0.38%, to 14,025.77

·     The Russell 2000 Index advanced 2.88 points, or 0.13% to 2,285.32

 

Events Calendar for Today

·     10:00 AM EST    University of Michigan Sentiment, Feb-P

·     1:00 PM EST       Weekly Baker Hughes Rig Count data

 

Earnings Calendar:

·     Earnings Before the Open: AIMC, AXL, D, HUN, IMGN, LECO, MCO, NBLX, NWL, SXT

 

Other Key Events:

·     KBW Inc. Financial Services Symposium (virtual), 2-10-2/12

·     Annual WORLDSymposium (Lysosomal Diseases), 2/8-2/12

 

 

Macro	Up/Down	Last
Nymex	-0.43	57.81
Brent	-0.41	60.73
Gold	-6.50	1,818.95
EUR/USD	-0.0033	1.2097
JPY/USD	0.05	105.07
10-Year Note	-0.011	1.15%

 

 

Sector News Breakdown

Consumer

·     BJ Restaurants (BJRI) Q4 EPS loss (81c) vs. est. loss (70c); Q4 revenue $197.0M vs. est. $202.07M; Q4 Comparable sales -32.3% vs. +0.40% y/y; Restaurant level operating margin 6.6% vs. 16% y/y

·     Expedia (EXPE) 4Q adj EPS ($2.64) vs. est. ($1.99) on revs 4920Mm vs. est. $922.2Mm, gross bookings -67%, qtrly room nights -61%; Adjusted EBITDA was -$160M vs. -$50.9M consensus

·     Flowers Foods (FLO) Q4 adj EPS 28c vs. est. 24c; Q4 revenue $1.023B vs. est. $989.28; sees FY21 EPS $1.07-$1.17 vs. est. $1.14; sees FY21 revenue $4.212B-$4.3B vs. est. $4.27B

·     Mohawk industries (MHK) Q4 adj EPS $3.54 vs. est. $2.87; Q4 revenue $2.64B vs. est. $2.49B; sees Q1 EPS $2.69-$2.79 vs. est. $2.11; Q4 Flooring Rest of the World Segment’s sales increased 20% as reported and 13% on a constant currency and days basis. The segment’s operating income grew over 60% with a margin of 17.5% as reported and 18.2%, ex: costs

·     Sunstone Hotel (SHO) 4Q adj FFO/shr ($0.16) vs. est. ($0.23), says 17 hotel portfolio REVPAR -86.9% to $25.36 in qtr, says to reposition and rebrand Renassance Washington DC to Westin Washington DC; expects to invest $70-80Mm capital in FY21 including about $30Mm for Renassance Washington DC rebranding

·     Urban-Gro (UGRO) 5.4M share Spot Secondary priced at $10.00

 

Energy, Industrials and Materials

·      Chemours (CC) Q4 adj EPS 61c vs. est. 41c; Q4 revenue $1.3B vs. est. $1.28B; sees FY21 adjusted EPS $2.40-$3.12 vs. est. $2.60; sees FY21 adjusted EBITDA $1B-$1.15B up 22% from 2020 at the mid-point; is reporting two new segments starting in Q4 2020 — Advanced Performance Materials and Thermal & Specialized Solutions — formerly the Fluoroproducts segment

·     Terex (TEX) 4Q EPS $0.21 vs. est. $0.02 on revs $786.7Mm vs. est. $757.7Mm; sees FY21 sales approx $3.45B vs. est. $3.49B and FY EPS $1.95-2.35 vs. est. $1.77

·     Forward Air (FWRD) Q4 EPS 55c vs. est. 73c; Q4 revenue $350.34M vs. est. $344.08M; sees Q1 EPS 55c-59c vs. est. 60c; sees Q1 revenue growth 11%-15% vs. est. $327.8M

·     International Paper (IP) has entered into an agreement to sell the Kwidzyn pulp and paper mill and supporting operations to Mayr-Melnhof Karton for approximately $812M in cash

 

Financials

·     Cousins Properties (CUZ) 4Q FFO $0.68 vs. est. $0.69 on revs $183.1Mm vs. est. $182.8Mm, says collected 98.8% of rents including 99.2% from office customers during qtr; sees FY21 FFO/shr $2.76-2.86 vs. est. $2.83 assuming physical occupancy remains significantly below normalized levels until 2H21

·     Regency Centers (REG) Q4 FFO 76c vs. est. 72c; Q4 same property Net Operating Income, excluding termination fees, decreased 10.5% and 11.6% during the full year 2020, respectively, from prior periods driven primarily by a higher rate of uncollectible lease income due to the COVID-19 pandemic; sees FY21 FFO $2.96-$3.14 vs. est. $3.28

·     WEX (WEX) to acquire certain health savings account (HSA) assets of HealthcareBank, the custodian bank for customers of WEX’s Health division

 

Healthcare

·     Amicus Therapeutics (FOLD) shares fell over -20% following updates on its Phase III PROPEL topline results

·     Bio-Rad (BIO) Q4 EPS $4.01 vs. est. $3.29; Q4 revenue $789.8M vs. est. $686.8M; FY21 guidance implies $2.66B-$2.67B vs. est. $2.53B and sees FY21 operating margin of approximately 16.0% to 16.5%

·     DaVita (DVA) Q4 adj EPS $1.67 vs. est. $1.87; Q4 revenue $2.905B vs. est. $2.93B; sees FY21 adj EPS $7.75-$8.75 vs. est. $8.16; sees FY21 free cash flow $900M-$1.15B

·     Dexcom (DXCM) Q4 non Gaap EPS 91c vs. est. 92c; Q4 revenue $568.9M vs. est. $552.88M; sees FY21 revenue $2.21B-$2.31B below est. $2.33B; sees FY21 gross margin 65% and EBITDA margin of 23%;

·     Illumina (ILMN) Q4 adj EPS $1.22 vs. est. $1.11; Q4 revenue $953M vs. est. $903.92; Adjusted gross margin 66.9% vs. 70.2% y/y; sees FY21 adjusted EPS $5.10-$5.35 vs. est. $6.11; sees FY21 revenue growth 17%-20%

·     Ultragenyx (RARE) 4Q EPS ($0.37) vs. est. ($1.16) on revs $91.5Mm vs. est. $70.5Mm; backs FY21 revenue guidance range for Crysvita

·     Applied Therapeutics (APLT) 3M share Secondary priced at $23.00

·     Codiak (CODK) 2.75M share Secondary priced at $21.00

·     Oncorus (ONCR) 3M share Secondary priced at $19.00

 

Media & Telecom

·     Disney (DIS) Q1 EPS 32c vs. est. loss (38c); Q1 revenue $16.25B vs. est. $15.93B; as of qtr-end, Disney+ paid subscribers were 94.9 mln vs. est. 90.7 mln; as of qtr-end, ESPN+ paid subscribers were 12.1 mln vs. est. 11.5 mln; Disney parks, experiences and products revenues for quarter decreased 53% to $3.6 bln; domestic channels revenues for quarter increased 1% to $6.1 bln; Hulu paid subscribers were 39.4 mln vs. est. 38.4 mln

 

Technology

·     2U Inc. (TWOU) Q adj EPS $0.06 vs. est. ($0.09) on revs $215.3Mm vs. est. $208.2Mm; guides FY revs $910-945Mm vs. est. $911.67Mm

·     Blackline (BL) 4Q adj EPS $0.21 vs. est. $0.08 on revs $95.7Mm vs. est. $91.6Mm; guides 1Q adj EPS $0.04-0.06 vs. est. $0.09, sees 1Q revs $95.5-96.5Mm vs. est. $95.75Mm; guides FY21 adj EPS $0.38-0.41 vs. est. $0.52, sees FY revs $410-415Mm vs. est. $411.4Mm

·     CarGurus (CARG) Q4 EPS 22c vs. est. 27c; Q4 revenue $151.55M vs. est. $148.93M; said total paying dealers were 30,631 at December 31, 2020, a decrease of 9% compared to 33,618 at December 31, 2019; of the total paying dealers at Dec 31, 2020, U.S. and International accounted for 23,934 and 6,697, respectively, compared to 26,289 and 7,329, respectively, at December 31, 2019; sees Q1 EPS 21c-23c vs. est. 27c and sees Q1 revenue $156M-$160M vs. est. $148.93M

·     Cloudflare (NET) Q4 EPS loss (2c) vs. est. loss (3c); Q4 revenue $125.9M vs. est. loss $118.37M; Dollar-based net retention of 119%, representing an improvement of 300 basis points sequentially, driven by continued strength from large enterprise customers; sees FY21 EPS loss (9c) to (8c) vs. est. loss (9c) and revs $589M-$593M vs. est. $567.58M

·     Cognex (CGNX) Q4 adj EPS 32c vs. est. 28c; Q4 revenue $223.62M vs. est. $205.52M; sees Q1 revenue $225M-$245M vs. est. $194.23M; sees Q1 gross margin in the mid-70% range; announced that Board Chairman Shillman to resign

·     Data Dog (DDOG) 4Q adj EPS $0.06 vs. est. $0.02 on revs $178Mm vs. est. $163.6Mm; at yr-end had 97 customers with ARR of $1Mm or more +94%, had 1,253 customers with ARR of $100K or more +46%; guides 1Q revs $185-187Mm vs. est. $181.3Mm, sees adj EPS $0.02-0.03 vs. est. $0.04; guides FY revs $825-835Mm vs. est. $802.4Mm, sees FY adj EPS $0.10-0.14 vs. est. $0.19

·     GoDaddy (GDDY) 4Q EPS $0.41 vs. est. $0.31 on revs $873.9Mm vs. est. $865Mm, qrtly ARPU +5.1% to $166, total bookings $943.11Mm, customers at yr-end 20.6Mm +7.1% yr/yr; sees 1Q revs about $885Mm vs. est. $878.5Mm; guides FY 21 revs about $3.7B vs. est. $3.66B

·     HubSpot (HUBS) 4Q adj EPS $0.40 vs. est. $0.23 on revs $252.1Mm vs. est. $236.7Mm; guides 1Q adj EPS $0.28-0.30 vs. est. $0.28 and 1Q revs $260-265Mm vs. est. $245.3Mm; guides FY21 revs $1.16-1.17B vs. est. $1.06B and FY adj EPS $1.51-1.59 vs. est. $1.38

·     Limelight Networks (LLNW) Q4 adj EPS loss (3c) vs. est. 2c; Q4 revenue $55.4M vs. est. $61.27M; Bob Lyons named new president and chief executive officer; does not plan to issue guidance for 2021 at this time; active efforts underway to evaluate all aspects of business strategy and cost structure

·     SPS Commerce (SPSC) 4Q adj EPS $0.40 vs. est. $0.34 on revs $83.3Mm vs. est. $80.6Mm; guides 1Q adj EPS $0.36-0.37 vs. est. $0.38, sees 1Q revs $86.8-87.8Mm vs. est. $85.8Mm; guides FY adj EPS $1.58-1.62 vs. est. $1.59, sees FY revs $363-366Mm vs. est. $357.3Mm

·     SurveyMonkey (SVMK) 4Q adj EPS $0.03 vs. est. $0.02 on revs $101Mm vs. est. $100.6Mm; guides 1Q revs $99.5-101.5Mm vs. est. $104.9Mm, sees 1Q adj op mgn (2%)-0.0%; sees FY revs $436-443Mm vs. est. $449.96Mm, sees FY adj op mgn 2-4%

·     Veeco Instruments (VECO) Q4 EPS 30c vs. est. 30c; Q4 revenue $138.95M vs. est. $129.11M; sees Q1 EPS 12c-30c vs. est. 23c and sees Q1 revenue $115M-$135M vs. est. $119.57M

·     VeriSign (VRSN) Q4 EPS $1.38 vs. est. $1.29; Q4 revenue $320.3M in-line w ests; ended 4Q20 with 165.2 M .com and .net Domain Name Registrations in the Domain Name Base; will increase annual registry-level wholesale fee for each new and Renewal .com Domain Name Registration From $7.85 to $8.39, Effective Sept. 1

·     Vocera (VCRA) Q4 adj EPS 28c vs. est. 20c; Q4 revenue $56.69M vs. est. $54.59M; sees FY21 adjusted EPS 45c-61c vs. est. 59c; sees FY21 revenue $215M-$225M vs. est. $217M