Early Look

Friday, February 19, 2021

Futures	Up/Down	%	Last
Dow	33.00	0.10%	31,464
S&P 500	8.25	0.20%	3,917
Nasdaq	45.50	0.33%	13,678

 

 

U.S. futures are edging higher, but are on track for the first declines in about a month as market concerns about rising inflation took a toll on sentiment this week. Major U.S. indexes closed lower on Thursday, though they did manage to pare their losses late day as investors bought the steep intraday dip. Smallcaps led the decline as the Russell 2000 dropped around 1.7%, while energy prices turned lower, dragging energy stocks down after a strong run the last few weeks. Stocks closed lower as bond yields resumed their climb, jobless claims increased more than expected and earnings from retail giant Walmart (WMT) disappointed. Robinhood, and hedge fund chiefs were grilled by lawmakers over the GameStop/Reddit rally, but was more a sideshow than anything. The S&P 500 record high close was last Friday and its intraday peak was on Tuesday of this week. Friday, marks the one-year anniversary since its February 19, 2020 top. It now remains to be seen if another downside acceleration awaits. Other things to watch, the United States is in the process of evaluating its approach to China, but tariffs imposed on Chinese goods by the former Trump administration will remain in place for now, Treasury Secretary Janet Yellen told CNBC on Thursday. In Asian markets, The Nikkei Index fell -218 points to 30,017, the Shanghai Index rose 20 points to 3,696, and the Hang Seng Index gained 49 points to 30,644. In Europe, the German DAX is up about 65 points to 13,950, while the FTSE 100 is lower by -10 points to 6,605. Stocks look to get back on track after rising the past six months on optimism over the development and rollout of coronavirus vaccines. Equities also have been buoyed by expectations that President Joe Biden’s $1.9 trillion stimulus plan will be passed.

 

Market Closing Prices Yesterday

·     The S&P 500 Index dropped -17.36 points, or 0.44%, to 3,913.97

·     The Dow Jones Industrial Average fell -119.68 points, or 0.38%, to 31,493.34

·     The Nasdaq Composite slumped -100.14 points, or 0.72%, to 13,865.36

·     The Russell 2000 Index declined -37.72 points, or 1.67% to 2,218.39

 

Events Calendar for Today

·     9:45 AM EST      Markit Manufacturing Comp flash PMI…prior 58.7

·     9:45 AM EST      Markit Services PMI for Feb…est. 57.6

·     9:45 AM EST      Markit Manufacturing PMI…est. 58.5

·     10:00 AM EST    Existing Home Sales MoM for January…est. (-1.5%)                    

·     1:00 PM EST       Baker Hughes Weekly rig count data

 

Earnings Calendar:

·     Earnings Before the Open: ABR, B, BCPC, DE, DTE, ESNT, ITT, MGI, MNOV, POR, THRM

 

 

Macro	Up/Down	Last
Nymex	-1.43	59.09
Brent	-1.12	62.81
Gold	-3.80	1,771.90
EUR/USD	0.0046	1.2138
JPY/USD	-0.38	105.31
10-Year Note	+0.01	1.31%

 

 

Sector News Breakdown

Consumer

·     Copart (CPRT) Q2 EPS 80c vs. est. 79c; Q2 revenue $617.0M vs. est. $628.9M

·     Frontdoor (FTDR) Q4 EPS 8c vs. est. 5c; Q4 revenue $323M vs. est. $321.18M; sees Q1 revenue $325M-$330M vs. est. $321.34M and sees FY21 revenue $1.63B-$1.65B vs. est. $1.62B

·     Host Hotels (HST) 4Q adj FFO/shr ($0.07) vs. est. ($0.21) on revs $267Mm vs. est. $243.3Mm; sees FY21 CAPEX $375-475Mm

·     Magna (MGA) Q4 adj EPS $2.83 vs. est. $2.03; Q4 revenue $10.57B vs. est. $10.12B; raised dividend 8% to 43c; sees FY21 revenue $40B-$41.6B vs. est. $38.45B and sees FY21 adjusted EBIT margin 7.1%-7.5%; sees FY21 capital spending $1.6B

·     Planet Fitness (PLNT) 4Q adj EPS $0.17 vs. est. $0.22 on revs $133.8Mm vs. est. $138Mm, comps -10.6%; company not providing FY21 outlook at this time

·     Texas Roadhouse (TXRH) Q4 EPS 28c vs. est. 49c; Q4 revenue $638M vs. est. $679M; said total revenue was negatively impacted by lapping the $59.5 million benefit of the 14th week in 2019, which represented 7.9% of the decrease in total revenue for the quarter; comparable restaurant sales at domestic company restaurants increased 0.8%, decreased 6.3%, and decreased 18.2%, respectively for Oct, Nov and Dec

 

Energy

·     DMC Global (BOOM) Q4 adj EPS loss (6c) vs. est. loss (5c); Q4 sales $57.1M vs. est. $52.8M; sees Q1 sales $55M-$62M vs. est. $54.9M

·     JinkoSolar Holding Co., Ltd. (JKS) announced that the Company intends to sign a “strategic cooperation agreement” with Tongwei Co., Ltd. to jointly invest in a high-purity crystalline silicon project with annual capacity of 45,000 metric tons and a silicon wafer project

 

Healthcare

·     AMN Healthcare (AMN) Q4 adjusted EPS $1.00 vs. est. 89c; Q4 revenue $631.3M vs. est. $625.74M; sees Q1 revenue $800M-$820M above consensus $605.28M; sees Q1 gross margin 31.5%-32%; ended year with total debt outstanding of $872 mln

·     eHealth (EHTH) Q4 adj EPS $2.32 vs. est. $2.84; Q4 revenue $293.3M vs. est. $331.65M; sees FY21 adjusted EPS $2.77-$3.26 vs. est. $3.92; sees FY21 revenue $660M-$700M vs. est. $760.62M; Drove online penetration with 43% of major medical Medicare applications submitted online in the fourth quarter of 2020 compared to 36% in the fourth quarter of 2019.

·     Emergent BioSolutions (EBS) Q4 adj EPS $3.67 vs. est. $3.19; Q4 revenue $583M vs. est. $563.94M; sees FY21 revenue $1.95B-$2.05B vs. est. $1.93B; sees FY21 adjusted EBITDA $750M-$810M

·     Novavax (NVAX) signed a memorandum of understanding with the Vaccine Alliance (Gavi) to provide 1.1 billion doses of its COVID-19 vaccine, NVX-CoV2373, globally.

·     Quidel (QDEL) Q4 adj EPS $11.07 vs. est. $10.14; Q4 revenue $809.2M vs. est. $809.09M; Received Emergency Use Authorization (EUA) for Sofia(R) 2 Flu + SARS Antigen FIA rapid test; received EUA for QuickVue(R) SARS Antigen test for the professional point-of-care segment

·     Dr. Reddy’s Laboratories (RDY) has initiated the process with the Drugs Controller General of India for Emergency Use Authorization (EUA) of human adenoviral vector-based platform vaccine candidate, Sputnik V

 

Industrials & Materials

·     Deere (DE) shares rise 3.5%; Q1 EPS $3.87 vs. est. $2.16 and Q1 total revenue $9.11B vs. est. $7.21B; raises FY21 revenue outlook to $4.6B-$5B from $3.6B-$4B; -first-quarter net income more than doubles on 23% gain in net sales, reflecting successful execution of new operating strategy; sees fy 2021 equipment operations cap ex of about $900 mln

·     Aerojet Rocketdyne (AJRD) Q adj EPS $0.47 vs. est. $0.47 on revs $557Mm vs. est. $545.6Mm, backlog $6.7B end of qtr; disclosed merger restriction in 10k today; Lockheed (LMT) has right to modify terms if higher bid emerges

·     Casella Waste (CWST) 4Q adj EPS $0.17 vs. est. $0.14 on revs $200.2Mm vs. est. $198Mm; guides FY21 revs $815-830Mm vs. est. $832.2Mm, sees FY21 adj EBITDA $184-188Mm vs. est. $186.6Mm

·     Celanese Corporation (CE) announced that as a result of the impacts of extreme winter weather on Celanese’s operations, as well the unplanned shutdowns and force majeure declarations of many of its suppliers and service providers in the Texas Gulf Coast, Celanese is declaring force majeure with respect to the following products to its customers in the Americas and EMEA

·     Livent Corp. (LTHM) 4Q adj EPS ($0.02) vs. est. $0.01 on revs $82.2Mm vs. est. $83Mm; guides FY21 revs $335-365Mm vs. est. $350.15Mm, sees adj EBITDA $40-60Mm vs. est. $64.3Mm; announced multi-year supply agreement with BMW Group to deliver both lithium hydroxide and carbonate

 

Technology, Media & Telecom

·     Applied Materials (AMAT) 1Q adj EPS $1.39 vs. est. $1.28 on revs $5.16B vs. est. $4.97B, adj gr mgn 45.9%; guides 2Q net sales $5.19-5.59B vs. est. $4.96B, sees 2Q adj EPS $1.44-1.56 vs. est. $1.28

·     Appian Corp. (APPN) 4Q adj EPS ($0.03) vs. est. ($0.17) on revs $81.6Mm vs. est. $74Mm; guides 1Qrevs $81.7-82.7Mm vs. est. $80.6Mm, sees 1Q adj EPS ($0.15) to ($0.13) using 70.8Mm avg shrs vs. est. ($0.41); guides FY21 revs $353-355Mm vs. est. $341.5Mm, sees adj EPS ($0.64) to ($0.60) using 71.2Mm avg shrs vs. est. ($0.43)

·     Arista Networks (ANET) Q4 EPS $2.49 vs. est. $2.39; Q4 revenue $648.5M vs. est. $628.9M; Q4 gross margin 65.0% vs. 65.2% last year; sees Q1 revenue $630M-$650M vs. est. $610.4M

·     Casa Systems (CASA) 4Q adj EPS $0.27 vs. est. $0.11 on revs $120.5Mm vs. est. $107.5Mm; guides FY21 revs $425-445Mm vs. est. $421Mm, sees FY adj EPS $0.23-0.32 vs. est. $0.31

·     CyberOptics (CYBE) 4Q EPS $0.20 vs. est. $0.08 on sales $16.9Mm vs. est. $16.1Mm; guides 1Q sales $16.5-17.5Mm vs. est. $16.96Mm

·     DropBox (DBX) 4Q adj EPS $0.28 vs. est. $0.20 on revs $504.1Mm vs. est. $498.6Mm, qtrly avg rev per paying user $130.17 vs $125 yr ago, qtrly paying users 15.48Mm vs 14.31Mm year ago

·     Everbridge (EVBG) Q4 adj EPS 3c vs. est. 2c; Q4 revenue $75.6M vs. est. $72.54M; sees FY21 adjusted EPS loss (25c)-(19c) vs. est. 5c and sees FY21 revenue $342.1M-$344.1M s. est. $336.48M

·     Globant (GLOB) 4Q adj EPS $0.70 vs. est. $0.68 on revs $232.6Mm vs. est. $222.3Mm; sees 1Q revs at least $258Mm vs. est. $235.8Mm, sees 1Q adj EPS at least $0.79 vs. est. $0.70; guides FY21 revs at least $1.047B vs. est. $1.015B, sees FY adj EPS at least $3.20 vs. est. $3.09

·     Keysight Technologies (KEYS) Q1 adj EPS $1.43 vs. est. $1.37; Q1 revenue $1.18B vs. est. $1.15B; sees Q2 adjusted EPS $1.29-$1.35 vs. est. $1.31; sees Q2 revenue $1.19B-$1.21B vs. est. $1.16B; Q1 Orders rose 7% from the year-ago period to $1.22 billion

·     Rackspace (RXT) 4Q adj EPS $0.26 vs. est. $0.23 on revs $716Mm vs. est. $701.8Mm, bookings $293Mm +27% yr/yr; guides FY21 adj EPS $0.95-1.05 vs. est. $1.11, sees FY revs $2.9-3.1B vs. est. $2.94B

·     Roku (ROKU) Q4 EPS 49c vs. est. loss (5c); Q4 revenue $649.9M vs. est. $617.7M; Q4 adj. EBITDA $113.5M vs. $15.1M last year; Q4 Active accounts 51.2M vs. 36.9M last year, Q4 streaming hours 17.0B vs. 10.9B YoY and ARPU $28.76 vs. $23.14 last year; sees Q1 revenue $478M-$493M above consensus $462.97M and sees Q1 adjusted EBITDA $27M-$34M vs. ($16.3M) last year

·     Trade Desk (TTD) Q4 adjusted EPS $3.71 vs. est. $1.88; Q4 revenue $319.9M vs. est. $292.36M; sees Q1 revenue $214M-$217M vs. est. $208.4M; sees Q1 adjusted EBITDA of at least $55M; Customer retention remained over 95% during the quarter, as it has for each quarter, the previous 6 years

·     TripAdvisor (TRIP) Q4 adj EPS loss (41c) vs. est. loss (25c); Q4 revenue $116M vs. est. $107.59M; as of December 31, 2020, had $418 million of cash and cash equivalents, an increase of $99 million from December 31, 2019; says it has seen sequential improvement in February, with a more pronounced increase versus January than in previous years

·     Twilio (TWLO) files to sell $1B in common stock

·