Early Look

Tuesday, August 9, 2022

Futures	Up/Down	%	Last
Dow	-2.00	0.01%	32,790
S&P 500	-8.25	0.20%	4,133
Nasdaq	-72.50	0.55%	13,110

 

 

US equity futures are down slightly, with the S&P trading in a narrow 25-point range overnight (high 4,155 and low 4,132.75) after stocks were mixed on Monday amid a low volume summer session. Technology shares underperformed yesterday driven by chip maker Nvidia Corp.’s gloomy forecast. This morning, chip maker MU guides Q4 revs lower, pushing the Nasdaq lower. Overnight, Former President Donald Trump said FBI agents raided his Mar-a-Lago estate on Monday and broke into his safe. Taiwan’s foreign minister said on Tuesday that China was using the military drills it launched in protest of U.S. House Speaker Nancy Pelosi’s visit as a game-plan to prepare for an invasion of the self-ruled island. In Asian markets, The Nikkei Index fell -249 points to 27,999, the Shanghai Index gained 10 points to 3,247 and the Hang Seng Index slipped -42 points to hold just above the 20,000 level. In Europe, the German DAX is down -125 points to 13,560, while the FTSE 100 is flat around 7,475. Markets are expected to remain choppy heading into tomorrows monthly CPI inflation report. WTI and Brent crude oil rises $1, reversing earlier loss after news reports Russia suspends oil exports via southern leg of Druzhba pipeline. Another busy day of earnings, but the volume begins to slow after today.

Market Closing Prices Yesterday

·     The S&P 500 Index dipped -5.13 points, or 0.12%, to 4,140.06

·     The Dow Jones Industrial Average rose 29.07 points, or 0.09%, to 32,832.54

·     The Nasdaq Composite slipped -13.10 points, or 0.10%, to 12,644.46

·     The Russell 2000 Index advanced 19.38 points, or 1.01% to 1,941.21

 

Economic Calendar for Today

·     7:45 AM ET          ICSC Weekly Retail Sales

·     8:55 AM ET          Johnson/Redbook Weekly Sales

·     1:00 PM ET          US Treasury to sell $43B in 3-year notes

·     4:30 PM ET          API Weekly Inventory Data

 

Earnings Calendar:

·     Earnings Before the Open: AGEN ARMK AVXL AXSM BLDE BSY BTAI BWEN CCLP CCO CEVA CGTX CRNC DIN EBIX ECOM EMR EVGO FSTR FTCI GFS H HGV HZN IONS ITCI KPLT LPX MPAA NCLH PAR PEI PLNT REYN RL RMBL SEAT SUNW SYY TDG TH TLS TPG UWMC VRTV VTNR WKHS WMG XXII

·     Earnings After the Close: ACEL AGS AKAM ALRM ANGI APEI ARCT ARLO ARRY AVD AXON BARK BE BLZE BRP CANO CCXI CELH CENX COIN CPIX DAR DERM DLB DOMA EMKR ELVT EVBG EXEL FTK GBDC GO HALO HRB HYFM IAC INO IPAR IRBT KODK LAND LDI LMB MASI MAXR MGNI MLNK MODN NGL NLS NVTA OSUR PAYS PETQ PLBY PLUG PRPL QUOT RBLX REAL RICK RIOT RRR RVNC RXT SAIL SENS SFT SG SNCR SWX TTD U VUZI WELL WISH WYNN XL ZEV ZD

 

Other Key Events:

·     BTIG Biotechnology Conference, 8/8-8/9, in New York

·     Cowen Internet & Media Bus Tour, 8/8-8/10, in San Francisco

·     Cowen 8th Annual Communications Infrastructure Summit, 8/8-8/11, in CO

·     Jefferies Industrial Conference, 8/9-8/10, in New York

·     Oppenheimer 25th Annual Technology, Internet & Comm Conference (virtual), 8/9-8/10

·     UBS Financial Services Conference, 8/8-8/10, in WI

·     UBS Genomics 2.0 & MedTech Innovations Summit, 8/9-8/10, in CA

·     Wells Fargo FinTech & Technology Services Forum, 8/8-8/9, in Newport, RI

·     China CPI, PPI data for July

 

 

Macro	Up/Down	Last
Nymex	0.90	91.66
Brent	1.13	97.78
Gold	5.00	1,810.20
EUR/USD	0.0034	1.0229
JPY/USD	-0.14	134.86
10-Year Note	+0.033	2.796%

 

 

World News

·     Former President Donald Trump said FBI agents raided his Mar-a-Lago estate on Monday and broke into his safe

·     China’s July retail passenger vehicle sales -6.3% m/m but +20.1% y/y to 1.843 units, the second largest y/y growth in the last 10 years – CPCA

·     Federal investigators searched the Florida residence of Donald Trump on Monday as part of an investigation into whether he took classified documents from the White House when he left office, an explosive development that risks hanging over his possible run for the presidency in 2024.

 

Sector News Breakdown

Consumer

·     Allbirds (BIRD) Q2 EPS loss (-$0.12) vs. est. loss (-$0.16); Q2 revs $78.2M vs. est. $77.77M; guides Q3 and year revs below ests; sees FY22 revenue $305M-$315M vs. est. $339.62M

·     BellRing Brands (BRBR) announces secondary equity offering of 10,808,473 shares of common stock held by Post (POST)

·     Blink Charging (BLNK) Q2 EPS loss (-$0.41) vs. est. loss (-$0.37); Q2 revs rose 164% y/y to $11.5M vs. est. $8.6M; said 5,631 charging stations contracted, deployed, or sold in q2 2022; increase of 73% over q2 2021

·     CarGurus (CARG) Q2 EPS $0.32 vs. est. $0.31; Q2 revs $511.23M vs. est. $505.85M; Q2 average revenue per subscribing dealer in the U.S. was $5,771 as of June 30, an increase of 4% compared to $5,550 as of June 30, 2021; sees Q3 EPS $0.25-$0.28 vs. est. $0.33 and revs $460M-$490M below the consensus $554.61M; sees Q3 consolidated adjusted EBITDA $44.5M-$52.5M

·     Freshpet Inc. (FRPT) 2Q EPS ($0.45) vs est. ($0.15) on revs $146Mm vs est. $147.2Mm; guides FY net sales over $575Mm vs est. $583Mm and adj EBITDA over $48Mm vs est. $54.4Mm

·     International Flavors & Fragrances (IFF) 2Q adj EPS $1.54 vs est. $1.44 on revs $3.31B vs est. $3.24B, adj EBITDA $700Mm vs est. $649.1Mm; sees FY sales $12.6-13.0B vs est. $12.68B and adj EBITDA $2.5-2.6B vs est. $2.55B; says expected future growth expected to be limited given operating conditions in Russia

·     Luminar Technologies (LAZR) 2Q adj EPS ($0.18) vs est. ($0.16) on revs $9.9Mm; guides FY revs $40-45Mm vs prior $40Mm and est. $41.2Mm; says is on track to meet or beat 2022 business milestones

·     Marriott Vacations (VAC) 2Q adj EPS $2.87 vs est. $2.27 on revs $1.16B vs est. $1.15B; sees FY adj EPS $9.47-10.35 vs est. $9.49

·     Mesa Air (MESA) 2Q adj EPS ($0.20) vs est. ($0.29) on adj EBITDA $20.1Mm vs est. $15.4Mm; adj EBITDAR $29.4Mm vs est. $31Mm

·     Trex Inc. (TREX) Q2 EPS $0.79 vs. est. $0.68; Q2 revs $386M vs. est. $380.6M; guides Q3 revs $180M-$190M below consensus $355M; said anticipate a significant reduction in rev in 2h22 as consumer demand is filled by existing channel inventories

·     Vroom Inc. (VRM) Q2 EPS loss (-$0.73) vs. est. loss (-$0.75); Q2 revs $475.44M vs. est. $545.95M; Q2 e-commerce gross profit per unit of $3,629, up 106%; Q2 Adjusted EBITDA loss improved from $107.4 million to $85.6 million

 

Energy, Industrials and Materials

·     Warren Buffett’s Berkshire Hathaway (BRK.A) disclosed late Monday that it acquired another 6.68M common shares of Occidental Petroleum (OXY) during August 4-8, now owning a 20.2% stake.

·     AECOM (ACM) 3Q EPS $0.75 vs est. $0.82 on revs $3.2B vs est. $3.47B; raised FY adj EPS to $3.25-3.50 vs est. $3.43, affirmed mid-point and narrowed guidance range for FY adj EBITDA to $890-910Mm vs est. $898.6Mm

·     BWX Technologies (BWXT) 2Q adj EPS $0.82 vs est. $0.75 on revs $554Mm vs est. $538.9Mm; guides FY revs +6.5-8.0% vs est. +3.4%, adj EBITDA +5.0-6.5% vs est. +0.9%

·     Cabot (CBT) Q3 adj EPS $1.73 vs. est. $1.56; Q3 revs $1.15B vs. est. $1.05B; narrows FY22 EPS view to $6.10-$6.20 from $5.80-$6.20 (est. $6.14)

·     ONEOK (OKE) 2Q EPS $0.92 vs est. $0.87 on adj EBITDA $886Mm vs est. $854Mm; affirms FY guidance

·     Louisiana-Pacific (LPX) Q2 adj EPS $4.19 vs. est. $4.40; Q2 revs $1.13B vs. est. $1.25B; sees Q3 adjusted EBITDA $200M

 

Financials

·     AIG Inc. (AIG) Q2 adj EPS $1.19 vs. est. $1.10; Q2 total consolidated NII was $2.6B, down 29% from $3.7B y/y; Q2 book value per common share was $58.16 and adjusted book value per common share was $72.23; Q2 general insurance net premiums written increased 0.1%; blamed market volatility for a delay in the initial public offering of its life and retirement unit

·     Lemonade Inc. (LMND) Q2 EPS loss ($1.10) vs. est. loss ($1.32); Q2 revs $50M vs. est. $47.7M; said in force premium (IFP) increased by 54% to $457.6M y/y, primarily due to a 31% increase in the number of customers as well as a 18% increase in premium per customer

·     Upstart Holdings (UPST) Q2 adj EPS $0.01 vs. est. $0.10; Q1 revs rise 18% y/y to $228M vs. est. $241.6M; guides Q3 revenue about $170M vs. est. $248.9M; Bank partners originated 321,138 loans, totaling $3.3 billion, across our platform in the second quarter, up 12% y/y

·     Marathon Digital Holdings (MARA) Q2 EPS loss (-$1.75) vs. est. loss (-$0.22); Q2 revs $24.9M vs. est. $37.5M; said for Q2, increased our bitcoin production 8% y/y, producing 707 bitcoin; said Energization delays, maintenance, and weather issues in Montana, and an approximately 56% decline in the price of bitcoin during the quarter

·     Principal Financial Group (PFG) Q2 EPS $1.65 vs est. $1.38; Assets under management of $632 billion managed by PFG, which is included in assets under administration (AUA) of $1.5 trillion

·     Root Inc. (ROOT) Q2 EPS loss (-$0.36) vs. est. loss (-$0.39); Q2 revs $80.4M vs. est. $83.47M; says moving forward with reverse stock split at 1-for-18 ratio

·     Tanger Outlets (SKT) 2Q core FFO/shr $0.45 vs est. $0.42; occupancy 94.9%, avg tenant sales productivity $450/sq ft +6.4% for total portfolio and same-center basis; same center NOI +5.1% to $79.8Mm; guides FY core FFO/shr $1.73-1.79 vs prior $1.71-1.79 and est. $1.75

·     Softbank Group Corp said it sold 6.7 mln SOFI shares, days after it had offloaded 5.4 mln shares; still has a stake worth more than 9% in SOFI

 

Healthcare

·     Novavax (NVAX) tumbles -30%; 2Q EPS ($6.53) vs est. $5.50 on revs $185.9Mm vs est. $1.0B; guides FY revs $2.0-2.3B vs prior $4.0-5.0B and est. $4.27B; says progressing variant program with top-line clinical data for Omicron expected near end of 3Q

·     Acadia Pharmaceuticals (ACAD) Q2 EPS loss (-$0.21) vs. est. loss (-$0.21); Q2 revs rose 17% y/y to $134.6M vs. est. $140.4M; Q2 end cash, cash equivalents, and investment securities totaled $436.4M, vs. $520.7M end 2021; narrows FY22 revenue view to $510M-$540M from $510M-$560M; NDA submitted for trofinetide for treatment of Rett syndrome

·     Clover Health (CLOV) Q2 revs $846.7M vs. est. $814.6M; sees year revs $3.0B-$3.4B vs. est. $3.31B; Lives under Clover Management grew to 255,000 from 129,000 y/y; Q2 Insurance (Medicare Advantage) Medical Care Ratio of 92.1% shows significant improvement y/y

·     GoodRX (GDRX) 2Q adj EBITDA $47.2Mm vs est. $35.1Mm on revs $191.8Mm vs est. $184.7Mm

·     ICU Medical (ICUI) Q2 adj EPS $1.37 vs. est. $1.86; Q2 revs $561M vs. est. $565.13M; lowers FY22 adj EPS view to $6.20-$6.80 from $9.00-$10.50 (est. $9.17); lowers year Ebitda range to $350M-$370M from prior $450M-$500M

·     Shockwave Medical (SWAV) 2Q EPS $0.68 vs est. $0.44 on revs $120.7Mm vs est. $107.5Mm; guides FY revs $465-475Mm vs est. $448.6Mm

·     SmileDirectClub (SDC) Q2 EPS loss (-$0.17) vs. est. loss (-$0.14); Q2 revs fell -27.8% y/y to $125.8M vs. est. $141.86M; cuts FY22 revenue view to $450M-$500M from $600M-$650M (est. $615.96M) and sees FY22 adjusted EBITDA loss $410M-$180M

·     10x Genomics (TXG) Q2 EPS loss (-$0.57) vs. est. loss (-$0.39); Q2 revs fell -1% y/y to $114.6M vs. est. $117.19M; cash and cash equivalents and marketable securities were $499.7M as of June 30; sees FY22 revenue view to $500M-$520M vs. est. $571.06M

·     Karuna Therapeutics (KRTX) announces $600M common stock offering

 

Technology, Media & Telecom

·     Micron (MU) lowers Q4 guidance for the 2^nd time in 2-months, saying Q4 rev may come in at or below low end of prior guidance range in June; said expectations for cy22 industry bit demand growth for dram and NAND have declined since our June 30, 2022 earnings call

·     Micron (MU) announced its plans to invest $40B through the end of the decade to build memory manufacturing in multiple phases in the U.S. Micron expects to begin production in the second half of the decade

·     Aspen Technology (AZPN) Q4 adj EPS $2.43 vs. est. $2.15; Q4 revs $238.92M vs. est. $280.76M; License and solutions revs, which represents the portion of a term license agreement allocated to the initial license and OSI revenue recognized on a percentage of completion basis, was $177.3M

·     3D Systems (DDD) cuts FY22 revenue view to $530M-$570M from $580M-$625M

·     Desktop Metal (DM) rises as Q2 revenue more than triples to $57.7M, driven by strength from metals platform and contributions from acquisitions above ests $54.7M and reaffirms full-year 2022 revenue forecast of about $260M; however, Q2 loss widens to $297.3M

·     DigitalOcean Holdings (DOCN) Q2 adj EPS $0.20 vs. est. $0.10; Q2 revs $133.9M vs. est. $134.36M; raises FY22 EPS view to $0.75-$0.75 from $0.70-$0.71 (est. $0.66) and backs FY22 revenue view $564M-$568M

·     Digital Turbine (APPS) 1Q adj EPS $0.38 vs est. $0.35 on revs $188.6Mm vs est. $184.8Mm; guides 2Q revs $170-180Mm vs est. $195.2Mm and adj EPS $0.32-0.34 vs est. $0.37

·     LivePerson Inc. (LPSN) 2Q EPS ($0.98) vs est. ($0.21) on revs $132.6Mm vs est. $134.5Mm; adj EBITDA ($5.51Mm) vs est. ($7.2Mm); sees 3Q revs $120.5-123.6Mm vs est. $140.4Mm

·     News Corp. (NWSA) 4Q adj EPS $0.37 vs est. $0.07 on revs $2.67B vs est. $2.58B, qtrly revs offset by $139Mm negative impact from foreign currency

·     PubMatic (PUBM) 2Q adj EPS $0.23 vs est. $0.08 on revs $63Mm vs est. $60.8Mm; adj EBITDA $23Mm vs est. $18.5Mm; says taking conservative approach to guidance, sees 3Q revs $66-68Mm vs est. $69.1Mm and adj EBITDA $23-25Mm vs est. $23.5Mm; cuts FY revs to $277-281Mm from $282-$298Mm vs est. $277.2Mm and adj EBITDA $103-108Mm vs est. $100.5Mm

·     Qualys Inc. (QLYS) 2Q adj EPS $0.89 vs est. $0.79 on revs $119.9Mm vs est. $117.5Mm; sees 3Q revs $124.5-125.1Mm vs est. $124Mm and adj EPS $0.85-0.87 vs est. $0.75; sees FY revs $488-489.5Mm vs est. $485.3Mm and adj EPS $3.50-3.55 vs est. $3.15

·     Take-Two interactive (TTWO) Q2 EPS loss (-$0.76) vs. est. $0.85; on revs $1.1B vs. est. $1.06B; sees FY23 revenue $5.73B-$5.8B vs. est. $6.32B; sees FY22 GAAP net loss to range from ($438M)-($398M) and GAAP net loss per share is expected to range from ($2.75)-($2.50)