Early Look

Wednesday, February 16, 2022

Futures	Up/Down	%	Last
Dow	-34.00	0.10%	34,870
S&P 500	-3.25	0.08%	4,461
Nasdaq	-1.50	0.01%	14,608

 

 

After a strong Tuesday for U.S. stocks, surging in the final minutes of trading to close at the best levels of the day, U.S. futures are looking little changed, down slightly for the S&P around 4,460, but holding again above its key 200-day moving average support of 4,450 as markets await a busy day ahead for economic data. January Import/Export prices, Jan Retail Sales, Industrial Production NAHB Housing and Business Inventories for December all on the calendar. U.S. major averages snapped a three-day losing streak yesterday on apparent easing tensions between Russia and the Ukraine as Russian defense minister said they had pulled back some troops from the border. The news overshadowed another higher inflation reading (PPI data) in the U.S., a common theme over the last month which has triggered forecasts of as many as five rate hikes between now and the end of the year by the Fed to cool prices. Britain recorded the fastest inflation since 1992 last month, at 5.5%, a tally that all but ensures that the Bank of England will raise rates again — for the third time since December. Cryptocurrency-exposed stocks rallied as Bitcoin extended its recent rebound back above the $44,000 level. In Asian markets, The Nikkei Index surged nearly 600 points or 2.2% to 27,460, the Shanghai Index rises +0.57% to 3,465, and the Hang Seng Index gains 363 points or 1.49% to 24,718. In Europe, the German DAX is little changed at 15,415, while the FTSE 100 is down about -20 points to 7,590.

Events Calendar for Today

·     7:00 AM ET          MBA Mortgage Applications Data

·     8:30 AM ET          Import Prices MoM for January…est. +1.3%

·     8:30 AM ET          Export Prices MoM for January…est. +1.3%

·     8:30 AM ET          Advance Retail Sales MoM for January…est. +2.0%

·     8:30 AM ET          Retail Sales Ex Autos MoM for January…est. +0.8%

·     9:15 AM ET          Industrial Production MoM for January…est. +0.4%

·     9:15 AM ET          Capacity Utilization for January…est. 76.8%

·     10:00 AM ET        NAHB Housing Market Index for February…est. 83

·     10:00 AM ET        Business Inventories MoM for December…est. 2.1%

·     10:30 AM ET        Weekly DOE Inventory Data

 

Earnings Calendar:

·     Earnings Before the Open: ADI, AIMC, ALE, AMCX, BCOR, BGCP, CHH, COWN, CRL, CROX, DNB, DRVN, FUN, GNRC, HLT, KHC, NUS, OC, R, SAH, SITE, SUN, TTD, UE, VMC, WAB, WING

·     Earnings After the Close: ACVA, AIG, AKR, ALB, AMAT, APP, AR, ATUS, AWK, AXTI, BCOV, CAKE, CDE, CNDT, CONE, CRMT, CSCO, CYH, DASH, EQIX, EPRT, ES, ESRT, ET, EVER, FCPT, FSLY, FSR, H, HPP, HST, HT, HVT, INFA, INFN, KNBE, LOPE, MMLP, MRO, NE, NP, NVDA, OIS, OM, PAY, PEGA, PXD, QS, QUIK, RBBN, RGLD, RUSHA, SAM, SCKT, SNPS, STAG, TNET, TRIP, TRUP, TYL, UFPI, VECO, VMI, WCN

 

Other Key Events:

·     BTIG MedTech, Digital Health, Life Science Conference, 2/15-2/17, in Utah

·     Credit Suisse Financial Services Conference, 2/16-2/18, in Miami, FL

·     KBW Financial Services Conference, 2/16-2/18, in Florida

·     Leerink Healthcare Conference (virtual), 2/14-2/18

 

Market Closing Prices Yesterday

·     The S&P 500 Index jumped 69.40 points, or 1.58%, to 4,471.07

·     The Dow Jones Industrial Average rose 422.67 points, or 1.22%, to 34,988.84

·     The Nasdaq Composite surged 348.84 points, or 2.53%, to 14,139.76

·     The Russell 2000 Index advanced 55.67 points, or 2.76% to 2,076.46

 

 

Macro	Up/Down	Last
Nymex	0.78	92.85
Brent	0.84	94,12
Gold	-0.40	1,855.80
EUR/USD	0.0021	1.1377
JPY/USD	0.05	115.68
10-Year Note	-0.003	2.042%

 

 

World News

·     UK inflation unexpectedly accelerated a 4^th month as annual price growth rose to 5.5%, a new 30-year high, raising prospects for an aggressive rate hike by the BOE in the March meeting

 

Sector News Breakdown

Consumer

·     AirBnB (ABNB) Q4 EPS $0.08 vs. est. $0.03; Q4 revs $1.53B vs. est. $1.46B; Q4 gross bookings value $11.3B and said sees Q1 nights and Experiences booked to significantly exceeds levels for the first time; sees Q1 revs $1.41B-$1.48B vs. est. $1.24B

·     Cruise operators CCL, NCLH, RCL, look to add to recent gains after the CDC reduced its warning to level three from four in response to a decline in onboard COVID-19 cases, but still recommended that people who were not up to date with vaccines avoid cruises

·     The Andersons, Inc. (ANDE) Q4 adj EPS $1.14 vs est. $0.66 on revenue $3.78B vs est. $3.03B, adj EBITDA $130.5M vs est. $82.75M; renamed its Ethanol segment to “Renewables” to reflect its broader scope of products and services

·     S&P SmallCap 600 constituent Old National Bancorp (ONB) will replace Urban Edge Properties (UE) in the S&P MidCap 400, Urban Edge Properties will replace Old National Bancorp in the S&P SmallCap 600, and Corsair Gaming Inc. (CRSR) will replace First Midwest Bancorp Inc. (FMBI) in the S&P SmallCap 600 effective prior to the opening of trading on Friday, February 18

·     Denny’s (DENN) Q4 EPS $0.16 vs. est. $0.17; Q4 revs $107.6M vs. est. $111.82M; Q4 domestic system-wide same-store sales increased 0.7% compared to the equivalent fiscal period in 2019, including a 0.4% increase at domestic franchised restaurants and a 5.1% increase at company restaurants; Q4 domestic system-wide same-store sales rose 49.0%; sees FY22 domestic system-wide same-store sales increase of 26%-28%

·     Hilton (HLT) Q4 adj EPS $0.72 vs. est. $0.74; Q4 revs $1.84B vs. est. 1.82B; system-wide comparable RevPAR was down 13.5% and 30.0%, on a currency neutral basis, for q4 and full year, respectively, compared to same periods in 2019; full year 2022 net unit growth is expected to be approximately 5%; system-wide comparable RevPAR increased 104.2% and 60.4t, on a currency neutral basis, for q4 and full year, respectively, from same periods in 2020

·     La-Z-Boy Inc. (LZB) Q3 EPS $0.65 vs. est. $0.89; Q3 sales rose 22% to $572M vs. est. $570.4M; qtrly written same-store sales for the La-Z-Boy furniture galleries network increased 3%; expect Case goods import operations to normalize during first half of fiscal 2023

·     Wynn Resorts (WYNN) to sell real estate of Encore Boston Harbor for $1.70B; Q4 adj EPS loss (-$1.37) vs. est. loss (-$1.25); Q4 revs $1.05B vs. est. $994.1M; operating revenues from wynn Macau were $131.7M for Q4 of 2021, a 27.6% decrease from $181.9M y/y; operating revenues from wynn palace were $194.0M for Q4 of 2021, a 12.4% decrease from $221.5M y/y

·     Wyndham Hotels & Resorts (WH) Q4 EPS $0.52 vs. est. $0.54; Q4 revs $392M vs. est. $384.72M; Q4 U.S. RevPAR 2019 levels by 9%, growing 58% versus 2020; sees FY22 adj EPS $3.28-$3.40 vs. est. $3.40; sees FY22 revs $1.34B-$1.37B vs. est. $1.67B; sees RevPAR growth of 12%-16% y/y

 

Energy

·     The American Petroleum institute (API) reported weekly crude inventories fell -1.1M barrels, crude inventories at Cushing fell -2.4M barrels and gasoline inventories fell -0.9M barrels

·     Comstock Resources (CRK) Q4 EPS $0.37 vs. est. $0.47; Q4 revs $379.9M vs. est. $497.05M; Paid down $190 million of debt in the quarter; Q4 adjusted EBITDAX increased 41% to $297M; Q4 capital spending was $140M for drilling and completion activities and $39M for acquisition activities; Q4 production increased 12% to 1,348 Mmcfe per day (99% natural gas)

·     Devon Energy (DVN) Q4 adj EPS $1.39 vs. est. $1.24; Q4 revs $4.27B vs. est. $3.76B; total production averaged 611,000 oil-equivalent barrels (boe) per day in Q4; production in Q1 is estimated to be reduced by 3% or 15,000 boe per day due to the impact of severe winter weather; expects production to approximate 570,000 boe per day in Q1

·     SolarEdge (SEDG) Q4 adj EPS $1.10 vs est. $1.31 on revenue $551.9M vs est. $549.4M; sees Q1 revs $615M-$645M vs est. $578.6M

 

Financials

·     Cincinnati Financial (CINF) Q4 adj EPS $1.97 vs est. $1.35, earned premiums $1.676B vs est. $1.673B, total revenue $3.32B; book value per share +21.9% YoY to $81.72

·     Invitation Homes Inc. (INVH) Q4 EPS in-line $0.12, FFO per share in-line $0.39, revenue $520M vs est. $523M; same-store NOI +12.6; new lease rent growth +17.3% and same-store renewal rent growth +9.0% drove same-store blended rent growth of 11.1%; sees core FY22 FFO $1.62-$1.70 vs est. $1.68

·     Upstart Financial (UPST) announces $400M share repurchase program; Q4 adj EPS $0.89 vs. est. $0.51; Q4 revs rose 252% to $305M vs. est. $262.8M; sees Q1 revs $295M-$305M vs. est. $258.3M; sees year revs about $1.4B vs. est. $1.21B

·     Welltower (WELL) Q4 normalized FFO $0.83 vs. est. $0.81; Q4 revs $1.31B vs. est. $1.24B; reports SHO same store revenue growth accelerated 4.8% in the Q4 compared to the prior year; says Q1 same store SHO portfolio NOI expected to increase about 15% y/y

 

Healthcare

·     Adaptive Biotechnologies (ADPT) Q4 adj EPS loss (-$0.43) vs. est. loss (-$0.45); Q4 revs $37.9M vs. est. $36.7M; cash, cash equivalents and marketable securities was $570.2M end of Dec; sees fy22 sequencing rev 60% of total – sees 1q rev lowest quarter of year – sees fy22 rev $185M-$195M – targets `decelerating expense growth rate` y/y

·     AtriCure, Inc. (ATRC) Q4 adj EPS (30c) vs est. (29c) on revenue $73.2M vs est. $72.7M; sees FY22 adj EPS ($1.12)-($1.07) vs est. ($0.94), revenue $315M-$330M vs est. $319.4M

·     BioNTech SE (BNTX) said it is developing turkey mRNA manufacturing facilities based on a container solution to promote scalable vaccine production in Africa; is expecting to deliver the first BioNTainer in 2H’22, comprising one drug substance and one formulation module

·     Corcept Therapeutics (CORT) Q4 adj EPS $0.35 vs est. $0.22 on revenue $98.8M vs est. $100.6M; sees FY22 revs $400M-$430M vs est. $413.2M

·     CRISPR Therapeutics (CRSP) Q4 EPS ($1.84) vs est. ($1.77) on revs $12.3M vs est. $2.27M and up from $0.5M YoY with an increase primarily attributed to its collaboration with VRTX

·     Global Blood Therapeutics Inc. (GBT) said the European Commission (EC) has granted Marketing Authorization for Oxbryta voxelotor for the treatment of hemolytic anemia due to sickle cell disease in adult and pediatric patients 12 years of age and older as monotherapy or in combination with hydroxycarbamide.

·     Hookipa Pharma (HOOK) shares rise 44%; announced it has entered into an amended and restated collaboration and license agreement with Gilead (GILD) to advance the development of a novel arenaviral immunotherapy as a component of a potential functional curative regimen for human immunodeficiency virus, or HIV.

·     Masimo Corp. (MASI) Q4 adj EPS $1.21 vs. est. $1.10; Q4 product revs $327.6M vs. est. $320.25M; to acquire Viper Holdings Corp, which owns Sound United for $1.025B; sees 2022 adj operating expenses 41.7%; sees 2022 adj gross margin 66.5%

·     Pacific Biosciences (PACB) Q4 adj EPS ($0.30) vs est. ($0.28) on revenue $36M vs est. $36.1M

·     Biotech sector remains pressured: One out of every four biotech’s that went public in 2020 is trading at a valuation below its cash reserves, according to a new STAT News analysis of data from the financial database provider Sentieo

 

Industrials & Materials

·     Airbus SE (EADSY) said it has finalized a deal to sell seven A350 freighters to Singapore Airlines in a deal that would make it the first airline to operate the new model.

·     CF industries (CF) Q4 EPS $3.27 vs. est. $3.55; Q4 revs $2.54B vs. est. $2.63B; projects capital expenditures for full year 2022 will be in a range of $500-$550M vs. est. $464M; gross ammonia production for q4 of 2021 was approximately 2.5 mln tons

·     Generac (GNRC) reports Q4 adj EPS $2.51 vs. est. $2.40; Q4 revs $1.07B vs. est. $1.02B; sees 2022 revenue growth 32%-36%; Net income margin, before deducting for non-controlling interests, is expected to be approximately 13.0 to 14.0% for the full-year 2022

·     GXO Logistics (GXO) Q4 adj EPS $0.73 vs. est. $0.52; Q4 revs $2.3B vs. est. $2.05B; sees FY organic rev growth 8%-12% vs. est. $8.52B

·     Ouster Inc. (OUST) Q4 EPS loss (-$0.17) vs. est. loss (-$0.15); Q4 revs rise 86% y/y to $11.9M; for full year 2022, ouster aims to double revenue, targeting a range of $65M-$85M

·     Resideo Technologies, Inc. (REZI) Q4 EPS $0.45 vs est. $0.37 on revenue $1.45B vs est. $1.47B; sees Q1 revs $1.425B-$1.475B vs est. $1.47B, FY revs $5.95B-$6.2B vs est. $6.15B

 

Media & Telecom

·     Angi Inc. (ANGI) Q4 EPS loss (-40.05) vs. est. loss (-$0.07); Q4 revs $415.9M vs. est. $415.3M

·     IAC Inc. (IAC) Q4 EPS $0.20 vs. est. loss (-$0.17); Q4 revs $1.16B vs. est. $990.2M and vs. prior year $765M; qtrly DotDash Meredith revenue up 240% year-over-year to $252 million, including $170 million from Meredith post acquisition 

·     Roblox (RBLX) shares fell -12%; Q4 (25c) vs est. (13c) on revenue $568.8M vs est. $772M; bookings $770.1M vs est. $763.3M, DAUs 49.5M in-line with estimates; reported January revenue $203M-$206M, DAUs 59.7M

·     ViacomCBS (VIAC) shares fell -6%; Q4 adj EPS $0.26 vs est. $0.43 on revenue $8B vs est. $7.5B; added 9.4M global streaming subscribers led by Paramount+ reaching over 56M subs as streaming revenue rose +48% YoY to $1.3B; says will rebrand to Paramount Global

 

Technology

·     Akami Technologies (AKAM) Q4 adj EPS $1.49 vs. est. $1.42; Q4 revs $905M vs. est. $899.2M; entered into a definitive agreement to acquire Linode Limited Liability Company for $900M

·     Alteryx Inc. (AYX) Q4 adj EPS $0.17 vs. est. $0.05; Q4 revs $173.8M vs. est. $166.1M; sees Q1 revs $144M-4147M vs. est. $132.7M and year revs $710M-$720M vs. est. $621.8M

·     EngageSmart, Inc. (ESMT) Q4 EPS (1c) vs est. 2c on revs $61.6M vs est. $58.1M; sees Q1 revs $61M-$62.5M vs est. $61.1M, FY22 revs $280M-$285M vs est. $276.2M

·     Lattice Semiconductor (LSCC) Q4 adj EPS $0.32 vs est. $0.28 on revenue $141.8M vs est. $134.1M; sees Q1 revenue $141M-$151M vs est. $135.2M

·     Q2 Holdings, Inc. (QTWO) Q4 adj EPS $0.10 vs. est. $0.05; Q4 revs $131.9M vs. est. $132.15M; sees Q1 revenue $131.5M-$133M vs. est. $135.91M; sees FY22 revenue $576M-$581M vs. est. $581.03M; sees FY22 adjusted EBITDA $40.9M-$43.9M

·     Toast inc. (TOST) Q4 EPS (23c) vs est. (12c) on revenue $512M vs est. $487.6M, GPV +125% YoY to $17B; sees Q1 revs $469M-$499M vs est. $463M, FY22 revs $2.349B-$2.409B vs est. $2.28B, FY adj EBITDA ($240M)-($200M) vs est. ($175.8M)

·     ZoomInfo Technologies Inc. (ZI) Q4 adj EPS $0.18 vs est. $0.13 on revenue $222.3M vs est. $207.7M; sees Q1 revenue $226M-$228M vs est. $215.6M, FY revs $1.01B-$1.02B vs est. $982.2M