Early Look

Tuesday, October 26, 2021

Futures	Up/Down	%	Last
Dow	125.00	0.35%	35,743
S&P 500	17.25	0.38%	4,575
Nasdaq	84.50	0.54%	15,579

 

 

U.S. futures looking at new all-time highs for the Dow and S&P 500, while the Nasdaq futures outperform with major averages continuing the record setting performances day after day on earnings optimism and pure momentum chasing. In Asian markets, The Nikkei Index surged 500 points (1.77%) to 29,106, the Shanghai Index slipped -0.3% to drop below 3.600, and the Hang Seng Index fell about 90 points to 26,038. In Europe, the German DAX is jumps about 150 points (0.95%) to 15.750, while the FTSE 100 is up around 60 points to 7,270. Overnight in China, the PBOC injects 200b y via 7day RR, net 190b injection & second straight day of large injections. In D.C., Senator Manchin sounding optimistic on getting a deal done this week, has concerns over an expansion of Medicare and new paid leave policies, wants the price tag to stay at $1.5 trillion. Earnings overload again this morning with Facebook rising after mixed results last night, while UPS, MMM, LLY among movers early after their results.

Market Closing Prices Yesterday

·     The S&P 500 Index gained 21.58 points, or 0.47%, to 4,566.48

·     The Dow Jones Industrial Average rose 64.13 points, or 0.18%, to 35,741.15

·     The Nasdaq Composite surged 136.51 points, or 0.90%, to 15,226.71

·     The Russell 2000 Index advanced 21.37 points, or 0.93% to 2,312.64

 

Events Calendar for Today

·     7:45 AM ET         ICSC Weekly Retail Sales

·     8:55 AM ET         Johnson/Redbook Weekly Sales

·     9:00 AM ET         Monthly Home Prices MoM for August

·     9:00 AM ET         CaseShiller 20 City Index for August

·     10:00 AM ET      Consumer Confidence for October…est. 108.3

·     10:00 AM ET      New Home Sales MoM for September…est. 760K

·     10:00 AM ET      Richmond Fed Index for October…prior (-3)

·     1:00 PM ET         U.S. to sell $60 bln 2-year notes

·     4:30 PM ET         API Weekly Inventory Data

 

Earnings Calendar:

·     Earnings Before the Open: AAN, ABG, ADM, ARCH, AWI, CEQP, CIT, CNC, CVLT, DAN, ECL, ENTG, FELE, GBX, GE, GLW, GPK, HAS, HOOD, HUBB, HZO, IEX, IVZ, JBLU, LLY, LMT, MMM, MSCI, PCAR, PEBO, PHM, PII, RTX, SBSI, SFNC, SHW, SPGI, SSTK, ST, TPB, TRU, UPS, WM, WRLD, XRX

·     Earnings After the Close: AAT, ACCO, AGYS, AHT, ALSN, AMD, APAM, BXP, BYD, CHRW, COF, DLR, ENPH, EQR, ESS, FBHS, FFIV, GOOGL, HA, HAFC, HIW, HPP, HRZN, HT, JNPR, LFUS, MANH, MASI, MSFT, MTDR, NAVI, NBR, NCR, NOV, PFG, QS, RRC, TENB, TER, TXN, TWTR, UDR, USNA, V, WIRE, ZWS

 

 

Macro	Up/Down	Last
Nymex	-0.38	83.38
Brent	-0.32	85.67
Gold	-5.75	1,802.00
EUR/USD	0.001	1.1618
JPY/USD	0.28	113.99
10-Year Note	-0.008	1.627%

 

 

Sector News Breakdown

Consumer

·     Inter Parfums (IPAR) Q3 revs $262.7M vs. est. $196.31M; raises FY21 EPS view to $2.35 from $1.95 and boosts FY21 revenue view to $810M from $750M (est. $771.7M)

·     Monarch Casinos (MCRI) 3Q EPS $1.15 vs est. $0.99 on revs $111.6Mm vs est. $101.2Mm; says labor shortages and wage pressure, as well as supply chain constraints and price inflation remain headwinds; continue to see strong demand across all segments of biz at Atlantis

·     Armstrong World (AWI) Q3 adj EPS $1.17 vs. est. $1.28; Q3 revs $292.2M vs. est. $292M; Raises FY21 revenue view to $1.095B-$1.105B from $1.085B-$1.105B; narrows FY21 adjusted EPS view to $4.25-$4.35 from $4.20-$4.40

·     Hasbro (HAS) Q3 adj EPS $1.96 vs. est. $1.69; Q3 revs $1.97B, in-line with ests; qtrly franchise brands revenue $882 mln vs $807.5 mln; qtrly consumer products segment revenue and operating profit declined slightly

·     Polaris (PII) Q3 adj EPS $1.98 vs. est. $1.97; Q3 revs $1.96B vs. est. $2.13B; cuts FY21 adjusted EPS view to $9.00 from $9.35-$9.60 (and below est. $9.56); FY21 adjusted sales now expected to be up approximately 16% over the prior year

 

Energy

·     Pioneer Natural Resources (PXD) discloses $501M in net losses from oil and gas hedging in Q3, according to an 8-K filing; the Q3 results bring Pioneer’s total hedging losses for the year to September 30 to $2.02B.

·     Natural gas-focused producers (CHK, AR, SWN, RRC, EQT) ripped to 52-week highs today as U.S. front-month natural gas soared to its largest one-day percentage gain since September a year ago, closing +12% to $5.898/MMBtu

 

Financials

·     AGNC Investment (AGNC) Q3 $0.35 net income per common share; $16.41 tangible net book value per common share as of September 30, 2021; $84.1 billion investment portfolio as of September 30, 2021

·     Alexandria Real Estate (ARE) Q3 FFO $1.95 vs est. $1.93, EPS $0.67 vs est. $0.62, revenue $547.8M vs est. $442.1M; narrowed FY21 adj FFO/share view to $7.74-$7.76 from $7.71-$7.79 (est. $7.77)

·     American Campus Communities (ACC) 3Q adj FFO/share $0.40 vs est. $0.37 on revs $228.9Mm vs est. $217.9Mm; says maintaining recently increased guidance range for FY

·     Brandywine Real Estate (BDN) Q3 FFO $0.35 vs. est. $0.34; Q3 revs $120.42M vs. est. $121.43M; sees DY21 FFO $1.35-$1.39 vs. est. $1.36

·     Brown & Brown (BRO) 3Q EPS $0.52 vs est. $0.53 on revs $770.3Mm vs est. $760.5Mm

·     Cadence Bancorp (CADE) 3Q EPS $0.67 vs est. $0.50; NII $136.1Mm vs est. $137.3Mm; total adj op revs $182.5Mm vs est. $180.1Mm

·     Cathay General Bancorp (CATY) Q3 EPS $0.93 vs est. $0.91; net income before provision for credit losses $152.5M (+10.9%); total loans ex-PPP +9.1% annualized, total deposits +25.9% annualized

·     Hope Bancorp. (HOPE) Q3 EPS $0.45 vs. est. $0.42; qtrly net interest income before provision (credit) for credit losses $130.3M vs $117.6M

·     Heidrick & Struggles (HSII) 3Q EPS $1.21 vs est. $0.78 on revs $264Mm vs est. $251.6Mm; guides 4Q revs $255-265Mm vs est. $228.6Mm

·     TriNet Group, Inc. (TNET) 3Q adj EPS $1.31 vs est. $0.79 on revs $1.1B; guides FY adj EPS $4.88-5.12 vs est. $4.63, sees FY revs +11-12%

·     TrueBlue, Inc. (TBI) Q3 adj EPS $0.59 vs. est. $0.60; Q3 revs rose 22% to $577M vs. est. $570.9M

·     Unum Group (UNM) announces $250 million share repurchase authorization

·     Washington Trust Bancorp, Inc. (WASH) 4Q EPs $1.07 vs est. $0.93, NII $36.1Mm vs est. $34.6Mm; no provision for credit losses recognized in 3Q or 2Q

·     TransUnion (TRU) has signed a definitive agreement to sell TransUnion Healthcare, Inc. to nThrive, Inc., platform backed by Clearlake Capital Group, L.P for $1.735 billion in cash

 

Healthcare

·     Eli Lilly (LLY) Q3 EPS $1.94 vs. est. $1.68; Q3 revs $6.77B vs. est. $5.7B; raises FY21 adjusted EPS view to $7.95-$8.05 from $7.80-$8.00 (est. $6.80) and boosts FY21 revenue view to $27.2B-$27.6B from $26.8B-$27.4B

·     Centene (CNC) Q3 adj EPS $1.26 vs. est. $1.25; Q3 revs $32.41B vs. est. $31.62B; Raises FY21 revenue view to $125.2B-$126.4B from $123.3B-$125.3B (est. $125.06B) and narrows FY21 adjusted EPS view to $5.05-$5.15 from $5.05-$5.35

·     AnaptysBio (ANAB) announces agreement to monetize portion of Jemperli Royalties for $250 million with Sagard; to receive $250 mln upfront cash payment from Sagard healthcare royalty partners; Sagard to receive Anaptysbio’s 8% royalty on annual global net sales of Jemperli (dostarlimab-gxly) below $1 bln

·     HealthStream (HSTM) 3Q EPS $0.05 vs est. ($0.01) on revs $64.1Mm vs est. $62.9Mm; guides FY revs $205-206.5Mm vs est. $255.5Mm

·     Medpace Holdings, Inc. (MEDP) 3Q EPS $1.29 vs est. $1.07 on revs $295.6Mm vs est. $291.6Mm; guides FY21 revs $1.135-1.145B vs est. $1.14B, sees FY EPS $4.66-4.77 vs est. $4.45; guides FY22 revs $1.4-1.46B vs est. $1.36B, sees FY22 EBITDA $262-278Mm

·     PetMed Express, Inc. (PETS) 2Q EPS $0.31 vs est. $0.35 on sales $67.4Mm vs est. $72.45Mm; proposes $0.3/share qtrly dividend

·     United Health Services (UHS) Q3 adj EPS $2.67 vs. est. $2.74; Q3 revs $3.16B vs. est. $3.10B; acute care adjusted admissions +12.4% vs. +17.3% y/y

 

Industrials & Materials

·     General Electric (GE) Q3 adj EPS $0.57 vs. est. $0.43; Q3 revs $18.43B vs. est. $19.25B; Q3 total orders $22.1B, up 42%; raises FY21 adjusted EPS view to $1.80-$2.10 from $1.20-$2.00 (est. $1.94); says expects revenue growth, margin expansion, and higher free cash flow in 2022; sees FY21 adjusted Industrial profit margin up 350+bps

·     3M (MMM) Q3 EPS $2.45 vs. est. $2.20; Q3 revs $8.94B vs. est. $8.67B; narrows FY21 EPS view to $9.70-$9.90 from $9.70-$10.10 (est. $9.83) and also narrows FY21 revenue growth view to up 9%-10% from up 7%-10%; sees FY21 organic local-currency sales growth 8%-9%

·     UPS Inc. (UPS) Q3 adj EPS $2.65 vs. est. $2.54; Q3 revs $23.2B vs. est. $22.56B; raises FY21 adjusted operating margin view to 13% from 12.7%

·     Axalta Coating (AXTA) Q3 EPS adj EPS $0.39 vs est. $0.34 on revenue $1.089B vs est. $1.1B; Performance coatings net sales +14.1% offset a -10.1% decrease in mobility coatings that included a -14.8% decline in the light vehicle segment due to customer production constraints given the current chip shortage; sees FY net sales growth +19% YoY, adj EPS $1.70-$1.80, down from prior $1.85-$2.00 and vs est. $1.82, adj EBIT $645M-$665M (est. $650.7M)

·     Crane Inc. (CR) 3Q adj EPS $1.89 vs est. $1.36 on sales $834Mm vs est. $770.7Mm; announced new $300Mm share repurchase auth; raises FY adj EPS guide to $6.35-6.45 vs est. $6.1

·     Crown Holdings (CCK) Q3 adj EPS $2.03 vs. est. $1.95; Q3 sales $2.92B vs. est. $2/9B; raises year EPS view to $7.50-$7.55 from $7.30-$7.40 (est. $7.47) and Q4 EPS $1.50-$1.55 vs. est. $1.53

·     Owens-Illinois (OI) 3Q adj EPS $0.58 vs est. $0.52 on revs $1.6B vs est. $1.62B; guides 4Q adj EPS $0.30-0.35 vs est. $0.33, sees FY adj EPS $1.77-1.82 vs est. $1.74

·     Packaging Corp. (PKG) Q3 adj EPS $2.69 vs. est. $2.34; Q3 revs $2.0B vs. est. $1.93B; said Q3 beat driven by higher prices and production volume; sees Q4 EPS $2.04 vs. est. $2.15; said paper segment volume will be lower as the Jackson mill is not expected to produce any paper grades

·     PotlatchDeltic (PCH) Q3 adj EPS $0.92, in-line with ests; Q3 revs $287.3M vs. est. $296.36M; Generated Total Adjusted EBITDDA of $107.2M and Total Adjusted EBITDA margin of 37%; lumber prices bottomed at a high level and have increased eight weeks in a row

·     Simpson Manufacturing (SSD) 3Q EPS $1.70 vs est. $1.77 on revs $396.7Mm, gr mgn 49.9%; guides FY CAPEX $55-60Mm, sees FY op mgn 20-22% and effective tax rt 25-26%;=

 

Technology, Media & Telecom

·     Facebook (FB) Q3 EPS $3.22 vs. est. $3.19; Q3 revs $29B vs. est. $29.45B; DAUs were up 6% YoY to 1.93 bln and MAUs up 6% YoY to 2.91 bln; sees Q4 revs $31.5B-$34B vs. est. $34.8B; said sees non-ads revenue to be down year-over-year in Q4; said outlook reflects significant uncertainty in q4 in light of continued headwinds from apple’s iOS 14 changes, and macroeconomic factors; announces $50B boost in share buyback authorization

·     Amkor (AMKR) 3Q EPS $0.74 on revs $1.68B; guides 4Q EPS $0.55-0.75, sees 4Q sales $1.59-1.69B

·     Cadence Design (CDNS) 3Q EPS $0.63 vs est. $0.75 on revs $751Mm vs est. $741.4Mm; guides 4Q revs $745-765Mm, sees 4Q adj EPS $0.76-0.80 vs est. $0.74 with op margin about 35%; guides FY revs $2.96-2.98B, sees FY adj EPS $3.24-3.28 vs est. $3.17 with op margin about 37%

·     Sirius XM (SIRI) raises quarterly cash dividend 50%

·     Logitech (LOGI) Q2 EPS $1.05 vs. est. $1.10; Q2 revs $1.31B vs. est. $1.27B; affirms FY22 revs