Early Look

Thursday, February 17, 2022

Futures	Up/Down	%	Last
Dow	-153.00	0.4%	34,698
S&P 500	-22.25	0.50%	4,447
Nasdaq	-96.50	0.66%	14,503

 

 

U.S. futures are looking lower, back near 200-day MA yet again (4,450) for the S&P amid geopolitical concerns following reports Russia and Ukraine forces had each fired across ceasefire lines, as per Reuters. Moscow, which has amassed more than 100,000 troops near Ukraine, denies it is planning to invade its neighbor and has said this week it is pulling back some troops. The West disputes that there has been a significant withdrawal, and the United States said thousands more troops were still arriving. The macro headlines have been the main driver of broader markets of late while individual earnings results from companies have been a focus as well. The Russia-Ukraine crisis has been unnerving investors at a time when markets were already struggling because of concern that the pace of monetary policy tightening, to slow surging inflation and prices, will crimp U.S. growth. Wall Street’s main indexes cut early losses to end mixed on Wednesday after the minutes from the Federal Reserve’s most recent monetary policy meeting offered no surprises to investors. Fed officials last month agreed that, with inflation widening its grip on the economy and employment strong, it was time to tighten monetary policy, but also that any decisions would depend on a meeting-by-meeting analysis of data, according to the minutes of the Jan. 25-26 policy meeting. In Asian markets, The Nikkei Index dropped -227 points or -.8% to 27,232, the Shanghai Index inched higher a few points to 3,468, and the Hang Seng Index rose 73 points to 24,792. In Europe, the German DAX is little changed at 15,370, while the FTSE 100 is down about -50 points to 7,550. Gold prices are jumping to fresh 3-month highs, while oil slips.

Economic Calendar for Today

·     8:30 AM ET         Weekly Jobless Claims…est. 219K

·     8:30 AM EST       Continuing Claims…est. 1.605M

·     8:30 AM ET         Housing Starts MoM for January…est. 1.7M

·     8:30 AM ET         Building Permits MoM for January…est. 1.76M

·     8:30 AM Et          Philly Fed Index for February…est. 20.0

·     10:30 AM ET       Weekly EIA Natural Gas Inventory Data

 

Earnings Calendar:

·     Earnings Before the Open: AAWW, AN, BAX, BKKT, BRC, CBZ, CNVY, COMM, DNOW, ECC, EPAM, FOCS, GEL, GEO, GPC, GPK, IDCC, IRDM, IRWD, ISPC, ITGR, MD, MPLN, MTRN, PWL, PGTI, PLTR, POOL, POR, RCM, RLGY, RS, SCL, SEE, SO, SWI, SYNH, TPH, TRN, USFD, VC, WMT, WST, YETI

·     Earnings After the Close: AEE, AEL, AMN, APPN, ASPN, ATR, NJRI, BLZE, CGNX, GHUY, CMBM, CPS, CWST, CYBE, DBX, DLR, DOMA, EXEL, GMED, HASI, INST, IVR, JAKK, KEYS, KNSL, LASR, LGND, LNT, LTHM, MATX, NR, PK, QDEL, RDFN, ROKU, RUN, SHAK, SKT, SWAV, TDS, TTOO, UEIC, USM, VTR, WRE

 

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 4.03 points, or 0.09%, to 4,475.10

·     The Dow Jones Industrial Average fell -53.25 points, or 0.15%, to 34,935.59

·     The Nasdaq Composite dropped -15.66 points, or 0.11%, to 14,124.10

·     The Russell 2000 Index advanced 2.85 points, or 0.14% to 2,079.31

 

 

Macro	Up/Down	Last
Nymex	-2.24	91.42
Brent	-2.04	92.77
Gold	15.10	1,886.60
EUR/USD	-0.0004	1.1367
JPY/USD	-0.45	115.07
10-Year Note	-0.035	2.01%

 

 

Sector News Breakdown

Consumer

·     Boston Beer (SAM) Q4 EPS ($4.22) vs est. ($3.23) on revenue $348.1M vs est. $365.5M; sees FY22 EPS $11-$16 vs est. $15.90; sees national prices increasing between 3-5% in 2022; said hard seltzer category growth fell well short of theirs and the industry’s expectations; announced Truly Vodka, the limited summer offering Truly Poolside, and an exciting new collaboration between Dogfish Head and Patagonia to launch an environmentally conscious pilsner as new innovations for 2022 and we remain confident they can grow full-year volume between 4-10%

·     Cheesecake Factory (CAKE) Q4 adj EPS $0.49 vs est. $0.58 on revenue $776.7M vs est. $773.4M, comp restaurant sales +33.8% YoY, +7.7% vs 4Q19; Q1-to-date comp sales are +24.3% YoY

·     DoorDash (DASH) Q4 EPS ($0.45) vs est. ($0.25) on revenue $1.3B vs est. $1.28B; marketplace GOV +36% to $11.2B, total orders +35% to 369M, MAUs +22% to over 25M; sees marketplace GOV $11.4B-$11.8B in Q1, $48B-$50B for FY22, FY22 adj EBITDA $0-$500M vs est. $455M

·     Fisker (FSR) Q4 EPS loss (-$0.47) vs. est. (-$0.47); sees year capex $280M-$290M; says cash and equivalents $1.2B as of end of December

·     Host Hotels (HST) Q4 FFO 26c vs est. 17c, revenue $998M vs est. $907M, RevPAR $148, +13% vs Q3; Jan. RevPAR est. $105 and Feb. RevPAR est. $150-$155; is not providing guidance at this time; resumed its quarterly dividend at 3c/share

·     Hyatt (H) 4Q adj EPS loss $2.78 vs est. loss $0.23, comparable system wide REVPAR $96.75; says expects to grow net rooms aby about 6% in 2022 and sees FY CAPEX about $215Mm; says has suspended all share repurchase activity and qtrly dividend

·     KAR Auction (KAR) Q4 adj EPS $0.11 vs. est. $0.02; Q4 revs $549.4M vs. est. $511.67M; Q4 gross profit per vehicle sold increased year-over-year and sequentially to $297; Adjusted EBITDA increased year-over-year and sequentially to $97.9 million

·     An activist investor is seeking to add directors to Hasbro’s (HAS) board and is urging the toy maker to spin off the unit housing Dungeons & Dragons – WSJ reports

·     Tripadvisor (TRIP) Q4 adj EPS (1c) vs est. 8c on revs $241M vs est. $249M; Q4 monthly unique visitors on website was 73% of 4Q19 levels, down slightly from Q3’s 76% vs 2019; sees Q1 consolidated rev to be in line with 4Q21, likely a bit higher, adj EBITDA margin mid-to-high single digit percentage, lower than Q4 due primarily to typical seasonally lower recognition of revenue versus bookings

 

Energy

·     Antero Midstream (AM) Q4 adj EPS $0.20 vs. est. $01.9; Q4 revs $234M vs. est. $220.68; forecasting low single digit throughput growth compared to 2021; sees FY22 adj EPS $0.81-$0.89 vs. est. $0.83; sees FY adj EBITDA $850M-$890M, FCF $385M-$425M, capex $275M-$300M

·     Antero Resources (AR) Q4 adj EPS $0.46 vs. est. $0.68; Q4 revs $2.39B vs. est. $1.43B; authorizes $1B share repurchase program; qtrly net production averaged 3.2 bcfe/d, including 160 mbbl/d of liquids; sees FY net production is expected to average 3.2 to 3.3 bcfe/d

·     American Water Works (AWK) 4Q EPS $3.55 vs est. $0.85 on revs $955Mm vs est. $1.0B; guides FY EPS $4.39-4.49 in-line with prior guide vs est. $4.46; says long-term financial targets affirmed

·     Marathon Oil (MRO) 4Q adj EPS $0.77 vs est. $0.55, FCF $898Mm, oil production of 181k net boepd and oil-equivalent production of 353k net boed; 2022 capital budget $1.2B

·     Pioneer Natural Resources (PXD) Q4 adj EPS $4.58 vs. est. $4.08; Q4 revs $4.32B vs. est. $3.15B; Q4 average realized price for oil was $76.38 per barrel; sees 2022 oil production of 350 to 365 thousand barrels of oil per day (mboepd); sees 2022 total production of 623 to 648 thousand barrels of oil equivalent per day (mboepd) sees 2022 capex $3.3B-$3.6B

·     Eversource Energy (ES) Q4 EPS $0.89 vs. est. $0.93; Q4 revs $2.48B vs. est. $2.12B; sees compound annual eps growth from regulated businesses in upper half of 5-7 % through 2026

·     SunPower (SPWR) 4Q adj EPS ($0.07) vs est. $0.04 on adj revs $384.2Mm vs est. $374.7Mm; guides FY adj EBITDA $90-110Mm vs est. $125.9Mm; sees net income of $85M-$105M in 2022 on GAAP basis

 

Financials

·     AIG Inc. (AIG) Q4 adj EPS $1.58 vs. est. $1.19; as of December 31, 2021, book value per common share was $79.97, up 5% from December 31, 2020; qtrly general insurance net premiums written increased 7% from prior year quarter to $5.96 billion; qtr-end adjusted book value per common share was $68.83, up 21% from December 31, 2020

 

Healthcare

·     Acadia Pharmaceuticals (ACAD) resubmitted an application to the U.S. FDA seeking approval of NUPLAZID (pimavanserin) to treat hallucinations and delusions associated with Alzheimer’s disease psychosis (ADP).

·     Community Health (CYH) Q4 adj EPS $1.15 vs est. $0.61 on revenue $3.23B vs est. $3.17B; on a same-store basis, admissions -3.9% and adj admissions +1.7%; sees FY22 EPS $1-$1.50 vs est. $1.41, revenue $12.6B-$13.1B vs est. $12.67B; shares paring initial post-EPS decline

·     10x Genomics, Inc. (TXG) shares fall -18%; Q4 EPS (16c) vs est. (9c) on revenue $143.5M vs est. $148.5M; sees FY22 revenue $600M-$630M vs est. $679.9M

 

Industrials & Materials

·     Albemarle (ALB) adj EPS $1.01 vs est. $0.99 on sales $894Mm vs est. $894.5Mm; guides FY22 net sales $4.2-4.5B vs est. $4.0B and adj EPS $5.65-6.65 vs est. $6.19

·     Allison Transmission (ALSN) 4Q EPS $1.25 vs est. $0.91 on revs $644Mm vs est. $593Mm; guides FY sales $2.625-2.775B vs est. $2.6B

·     Kadant Inc. (KAI) 4Q adj EPS $2.31 vs est. $2.00 on revs $219Mm vs est. $215Mm; guides 1Q adj EPS $2.00-2.10 vs est. $2.07 and revs $212-217Mm vs est. $217Mm; guides FY adj EPS $8.55-8.75 vs est. $8.90; says supply chain issues, labor shortages and raw materials inflation remain a challenge

·     Royal Gold (RGLD) 4Q adj EPS $1.05 vs est. $0.97 on revs $168.5Mm vs est. $159.7Mm

·     Tronox (TROX) 4Q adj EPS $0.53 vs est. $0.58 on revs $884Mm vs est. $859.5Mm; guides 1Q adj EBITDA $230-245Mm vs est. $258.2Mm; sees FY22 adj EPS $3.08-3.59 vs est. $2.86; says intends to raise annual dividend to $0.50/share from $0.40/share

·     Waste Connections (WCN) Q4 adj EPS $0.64 vs. est. $0.82; Q4 revs $1.624B vs. est. $1.58B; sees FY22 net income of approximately $846M

 

Media & Telecom

·     Altice (ATUS) Q4 EPS $0.56 vs. est. $0.50; Q4 revs $2.52B, in-line with ests; announces multi-year plan to bring 100% fiber broadband to more than 6.5m passings across the optimum and Suddenlink footprint; Adj EBITDA declined -5.9% y/y in Q4 2021 to $1.08B with a margin of 43.0%; 2022 CAPEX to increase about 40% to $1.7B-$1.8B

·     Equinix (EQIX) Q4 adj FFO $6.22 vs. est. $6.27; Q4 revs $1.6B vs. est. $1.7B; sees FY22 AFFO $28.87-$29.20 vs. est. $29.45; sees FY22 revs $7.20B-$7.25B vs. est. $7.16B; raises dividend

·     Ribbon Communications (RBBN) 4Q adj EPS $0.01 vs est. $0.13 on revs $231Mm vs est. $252.6Mm; guides 1Q revs $165-180Mm vs est. $199.9Mm and adj EPS loss $0.07-0.10 vs est. $0.06; sees FY revs $850-880Mm vs est. $910.5Mm and adj EPS $0.30-0.34 vs est. $0.51

 

Technology

·     Nvidia (NVDA) 4Q adj EPS $1.32 vs est. $1.22 on revs $7.64B vs est. $7.42B, adj gross margin 67%; guides 1Q revs $8.1B +/- 2% vs est. $7.2B, sees Q1 gross margin 67%, Q1 operating expenses $1.6B and Q1 tax rate 11%-13% plus/minus 1%

·     Applied Materials (AMAT) Q adj EPS $1.89 vs est. $1.85 and revs $6.27B vs est. $6.16B, gross margin 47.2%, operating margin 31.5%; guides 2Q sales $6.35B vs est. $6.38B and adj EPS $1.75-2.05 vs est. $1.94

·     AppLovin Corporation (APP) Q4 EPS $0.08 vs. est. $0.11; Q4 revs $793.5M vs. est. $780.17M; sees FY22 revenue $3.55B-$3.85B vs. est. $3.82B; sees FY22 software platform $1.35B-$1.50B, up 100%-123%; Q4 Adj EBITDA grew 60% Y/Y to $221M and Adj EBITDA margin improved to 28%

·     Cisco Systems (CSCO) Q2 EPS $0.84 vs. est. $0.81; Q2 revs rose 6% to $12.7B vs. est. $12.65B; sees Q3 EPS $0.85-$0.87 vs. est. $0.86; sees Q3 rev growth 3%-5% y/y (est. $13.35B); sees year EPS $3.41-$3.46 vs. est. $3.42; raises dividend 3% and adds $15B authorized for stock repurchase

·     Infinera (INFN) 4Q adj EPS $0.03 vs est. $0.02 on revs $401.2Mm, adj gr margin 37.2%; guides 1Q revs $345-375Mm vs est. $359.5Mm, adj gr margin 35.5-38.5%

·     Amplitude, Inc. (AMPL) 4Q adj EPS ($0.05) vs est. ($0.08) on revs $49.4Mm vs est. $46.9Mm; guides 1Q revs $50-51Mm vs est. $51.3Mm and adj net loss/shr $0.09-0.10 vs est. loss $0.12; sees FY revs $226-234Mm vs est. $235.9Mm and FY adj net loss/shr $0.42-0.44 vs est. loss $0.44

·     Fastly (FSLY) shares fall -18%; Q4 adj EPS ($0.10) vs est. ($0.16) on revenue $97.7M vs est. $92.5M; sees Q1 adj EPS ($0.15)-($0.13) vs est. ($0.13) on revenue $97M-$100M vs est. $98M, FY22 adj EPS ($0.60)-($0.50) vs est. ($0.48) on revenue $400M-$410M vs est. $419M

·     Informatica (INFA) Q4 EPS $0.20 vs est. $0.21 on revenue $406.7M vs est. $396.4M; sees Q1 revenue $357M-$367M vs est. $362.3M, FY revenue $1.585B-$1.605B vs est. $1.58B

·     MagnaChip Semi (MX) 4Q adj EPS $0.31 vs est. $0.28 on revs $110.3Mm vs est. $122.3Mm; guides 1Q revs $102-108Mm vs est. $118.8Mm

·     Matterport (MTTR) shares fall -12%; Q4 EPS loss (-$0.10) vs. est. loss 9-$0.09); Q4 revs $27.1M vs. est. $25.13M; total subscribers increased to 503K, up 98% compared to Q4 of 2020; Spaces Under Management grew to 6.7M, up 54% compared to Q4 of 2020; guides Q1 revs $25.5M-427.5M vs. est. $31.9M

·     Palantir (PLTR) Q4 adj EPS $0.02 vs. est. $0.04; Q4 revs $433M vs. est. $417.6M; sees Q1 revenue $443M vs. est. $439.16M and sees Q1 adjusted operating margin of 23%

·     Pegasystems Inc. (PEGA) 4Q adj EPS $0.04 vs est. $0.12 on revs $316.2Mm vs est. $346.4Mm; guides FY adj EPS $0.75-1.00 vs est. $0.84 and revs $1.46-1.49B vs est. $1.475B

·     Synopsys (SNPS) 1Q adj EPS $2.40 vs est. $2.37 on revs $1.27B vs est. $1.27B; guides 2Q adj EPS $2.35-2.40 vs est. $1.79 and revs $1.24-1.27B vs est. $1.15B

·     Tyler Technologies (TYL) Q4 adj EPS $1.75 vs est. $1.74 on revenue $434.2M vs est. $432.6M; total revs +53%, organic revs +9.2%; sees FY22 adj EPS $7.41-$7.58 vs est. $8.12, revenue $1.83B-$1.87B vs est. $1.85B

·     Veeco Instruments (VECO) Q4 EPS $0.43 vs. est. $0.37; Q4 revs $153M vs. est. $151.1M; sees Q1 EPS $0.28-$0.44 vs. est. $0.34; sees Q1 revs $145M-$165M vs. est. $152.4M