Early Look

Tuesday, May 4, 2021

Futures	Up/Down	%	Last
Dow	2.00	0.01%	34,010
S&P 500	-5.25	0.13%	4,180
Nasdaq	-47.50	0.34%	13,742

 

 

U.S. futures are looking mixed, with the Dow edging modestly higher after nearing record highs the day prior, the S&P is flat and the Nasdaq Composite slips after underperformance the day prior as investors brace for another heavy dose of quarterly earnings. Shares in companies exposed to commodity prices rose the most Monday, along with consumer retailers and airline stocks were lifted by plans to restart widespread travel in Europe. According to FactSet, more than 60% of the companies in the S&P 500 have posted results, and about 86% of companies have surpassed analysts’ expectations, a record high. Stocks have continued to rise as an economic recovery in the U.S. and abroad thanks to vaccination programs that have helped people get back to work, along with more monetary and fiscal policy measures, have supported stocks. In Asian markets, The Nikkei Index and Shanghai Index were closed and the Hang Seng Index rose 199 points to 28,557. In Europe, the German DAX is down about -40 points to 15,194, while the FTSE 100 rises around 50 points to move back above the 7,000 level.

Market Closing Prices Yesterday

·     The S&P 500 Index gained 11.49 points, or 0.27%, to 4,192.66

·     The Dow Jones Industrial Average rose 238.38 points, or 0.70%, to 34,113.23

·     The Nasdaq Composite dipped -67.56 points, or 0.48%, to 13,895.12

·     The Russell 2000 Index advanced 11.00 points, or 0.49% to 2,277.45

 

Events Calendar for Today

·     7:45 AM ET         ICSC Weekly Retail Sales

·     8:30 AM EST      International Trade for March

·     8:55 AM ET         Johnson/Redbook Weekly Sales

·     10:00 AM EST    Durable Goods MoM for March

·     10:00 AM EST    Factory Orders MoM for March

·     4:30 PM ET         API Weekly Inventory Data

 

Earnings Calendar:

·     Earnings Before the Open: ACRE, AME, APO, ARCB, BBGI, BEN, BERY, BG, BR, CEIX, CMI, CNCE, COP, CRL, CRSR, CTLT, CVLT, CVS, CWH, D, DD, ETN, ETRN, EXPD, FSS, GCP, GLT, GPN, HEP, HSC, HSIC, ICD, IDXX, INCY, INGR, IPGP, IT, KKR, KOPN, LAMR, LCII, LDOS, LGIH, LNG, LPX, MBUU, MIC, MLM, MPC, MPLX, MTOR, NS, NXST, PCRX, PFE, PINC, RGEN, RHP, SABR, SAGE, SEE, SYY, UAA, VIRT, VMC, VSH, WLK, WMG, XYL, ZBH, ZBRA

·     Earnings After the Close: ACLS, AFG, AHT, AIZ, AKAM, ALGT, ALRM, AMRC, ANDE, ANET, APEN, AQST, ARWR, ATVI, AYX, BGFV, BKH, BNFT, BRY, BXC, CDEV, CDLX, CMP, COUR, CPK, CRK, CTVA, CYRX, CZR, DCO, DEI, DENN, DK, DLB, DOOR, DVN, EPAY, ESE, ESPR, EXAS, FTSI, GLAD, GMED, GSKY, H, HASI, HLF, HMN, HST, ICHR, INFN, INN, INTZ, KAMN, KAR, LPSN, LSCC, LYFT, MCFE, MED, MPWR, MTCH, NR, NSA, OSPN, PAA, PAYC, PEN, PKI, PRO, PRU, PTCT, PUMP, PXD, PXLW, QUAD, RARE, RCKY, RDN, RM, RNG, RRR, RTLR, RYAM, SGMO, SILK, SKLZ, SPCE, SYX, TMUS, UPWK, VECO, VERI, VIAV, VRSK, VVI, WK, WTI, WTTR, WU, XLNX, ZG

 

Other Key Events:

·     BMO Capital Global Reserve & Asset Manager Conference (virtual), 5/4-5/6

·     Goldman Sachs European SMID Symposium (virtual), 5/4-5/7

·     Oppenheimer Industrial Growth Conference, 5/4-5/5

 

 

Macro	Up/Down	Last
Nymex	1.17	65.66
Brent	1.30	68.86
Gold	-10.75	1,782.20
EUR/USD	-0.0058	1.2006
JPY/USD	0.41	109.48
10-Year Note	+0.013	1.619%

 

 

World News

·     Fed’s Williams said yesterday he expects inflation will run above the Fed’s 2% target through the rest of the year and will subside to 2% by 2022, U.S. economy is not close not fully recovered, with unemployment still high

·     In a CNBC interview yesterday, Fed’s Barkin said sees price pressure for remainder of the year and then reverse in 2022, unlikely to vote to change policy at least until the employment-to-population measure is back to where it was pre-pandemic.

 

Sector News Breakdown

Consumer

·     Avis Budget Rental (CAR) Q1 EPS loss ($2.43) vs. est. loss ($2.14); Q1 revenue $1.37B vs. est. $1.28B; achieved Adjusted EBITDA of $47 million in the first quarter through cost discipline and double-digit growth in revenue per day in the Americas; liquidity position at the end of the quarter was approximately $1.2 billion with an additional $4.8 billion of fleet funding capacity

·     Bunge (BG) Q1 adj EPS $3.13 vs. est. $1.54; Q1 revenue $12.96B vs. est. $10.35B; boosts dividend by 5%; raised its full-year 2021 adjusted earnings per share to about $7.50 per share from its earlier forecast of at least $6 per share

·     Chegg Inc. (CHGG) Q1 EPS loss (49c) on revs $198.4M (up 51%) vs. est. $184.6M; sees Q2 revs $188M-$190M vs. est. $192.3M; sees FY revs $790M-$800M vs. est. $790.5M; Q1 Services Revenues grew 62% YoY to $162.4M, or 82% of total net revenues, compared to 76% in Q1 2020

·     Freshpet (FRPT) 1Q EPS ($0.26) vs. est. ($0.03) on revs $93.4Mm vs. est. $94Mm; guides FY net sales to exceed $430Mm vs. est. $432Mm, adj EBITDA to exceed $61Mm vs. est. $61.6Mm

·     Leggett & Platt (LEG) Q1 EPS 64c vs. est. 43c; Q1 revenue $1.15B vs. est. $1.14B; raises FY21 EPS view to $2.55-$2.75 from $2.30-$2.60 (est. $2.47) and boosts FY21 revenue view to $4.8B-$5B from $4.6B-$4.9B

·     iRobot (IRBT) 1Q adj EPS $0.41 vs. est. $0.09 on revs $303.3Mm vs. est. $264Mm; reaffirmed FY adj op inc and EPS expectations

 

Energy

·      Bonanza Creek (BCEI) Q1 EPS 88c vs. est. 75c; Q1 revenue $74M vs. est. $62.74M; Initiating an annual cash dividend of $1.40 per share to be payable quarterly beginning in the second quarter 2021; average sales volumes for Q1 of 20.9 thousand barrels of oil equivalent per day with oil representing 50% of total volumes; QQ – 4Q 2021 production guidance of 40.0 to 44.0 MBoe/d with oil representing 48% to 52% of total volumes

·     Diamondback Energy (FANG) Q1 adj EPS $2.30 vs. est. $1.80; Q1 revenue $1.18B vs. est. $1.01B; sees 2021 total net production 350-360 MBOE/d and sees FY21 Capex $1.6B-$1.75B; OAS entered into a definitive agreement under which Oasis will acquire select Williston Basin assets from Diamondback Energy in a cash transaction valued at approximately $745M

·     Energy Transfer (ET) and Phillips 66 Partners (PSXP): The U.S. Army Corps of Engineers does not believe a judge should order a shutdown of the Dakota Access Pipeline while an environmental review continues, court filings say

·     Shoals Technology Group (SHLS) 1Q adj EPS $0.05 vs. est. $0.04 on revs $45.6Mm vs. est. $43.5Mm; guides FY revs $20-240Mm vs. est. $235.7Mm, reaffirms FY outlook

·     SolarEdge Technology (SEDG) Q1 EPS 98c vs. est. 99c; Q1 revenue $405.5M vs. est. $396.21M; sees Q2 revenue $445M-$465M vs. est. $446.81M and sees Q2 revenue from solar products to be within the range of $405M o $420M; sees non-GAAP gross margin 32%-34%

·     Transocean (RIG) Q1 adj EPS loss (19c), in-line with estimates; Q1 revs $653M vs. est. $660.4M; contract backlog was $7.4 bln as of April 2021 fleet status report; Operating and maintenance expense was $435 million, compared with $465 million in the prior period; Adjusted EBITDA was $245 million, compared with adjusted EBITDA of $210 million in the prior quarter

·     TravelCenters (TA) 1Q EPS ($0.40) vs. est. ($0.72) on revs $1.53B vs. est. $1.41B

·     Williams Energy (WMB) Q1 adj EPS 35c vs. est. 29c; Q1 revenue $2.61B vs. est. $1.97B; now expects 2021 adjusted Ebitda between $5.2 bln and $5.4 bln and available funds from operations between $3.7 bln and $3.9 bln, both a $100M midpoint increase from guidance originally issued in February 2021

 

Financials

·     EverQuote (EVER) Q1 EPS loss (13c) vs. est. (13c); Q1 revenue $103.82M vs. est. $101.42M; Q1 variable marketing margin of $31.4M, an increase of 32%; sees Q2 revenue $101M-$103M vs. est. $100.57M

·     Sunstone Hotel (SHO) 1Q adj FFO/shr ($0.13) vs. est. ($0.15); 17 hotel REVPAR -69.5% to $42.19, had 15 of 17 hotels in operation for entirety of 1Q; says leisure demand continues to accelerate and business transient and group demand, which have been slower to return, are both demonstrating positive growth

·     Vornado Realty (VNO) Q EPS $0.06 vs. est. ($0.02), adj FFO/share $0.65 vs. est. $0.66; qtrly same-store NOI at share -8.4%

 

Healthcare

·     Ligand (LGND) Q1 adj EPS $1.41 vs. est. $1.12; Q1 revenue $55.2M vs. est. $62.85M; affirms its guidance for 2021 total revenues to be approximately $291 million and 2021 adjusted earnings per diluted share to be approximately $6.15

·     Myriad Genetics (MYGN) 1Q adj EPS ($0.06) vs. est. ($0.14) on revs $173.1Mm vs. est. $156.2Mm, qtrly total test volumes +5% sequentially; not providing 2Q or FY guide

·     Qiagen NV (QGEN) Q1 adj EPS 66c vs. est. 63c; Q1 revenue $567.2M vs. est. $557.5M; backs FY21 adjusted EPS $2.42-$2.46 vs. est. $2.49 and backs FY21 revenue growth view 18%-20%; q1 16% CER growth to $364M from non-covid product groups, represent 64% of total sales, while covid-19 product group sales rise 186% CER to $203M

·     SeaSpine (SPNE) 1Q EPS ($0.46) vs. est. ($0.34) on revs $42Mm vs. est. $40.3Mm; sees FY revs $193-198Mm vs. est. $191Mm (incl acquisition of 7D Surgical, continues to expect revs $200-205Mm)

·     SmileDirectClub (SDC) announced that it experienced a systems outage that was caused by a cybersecurity incident on April 14, 2021; implemented series of measures , including temporarily isolating & shutting down affected systems, related manufacturing operations; expects that the incident may have a material impact on its business operations and financial results in Q1

·     Vaxart Inc (VXRT) rises 17% (after falling 25% Monday on lower-than-expected quarterly revenue), after reported new data from its early-stage study of its oral COVID-19 vaccine candidate, showing the vaccine demonstrated higher T-cell responses than the vaccines developed by rivals PFE and MRNA

 

Industrials & Transportation

·     Flowserve Corp. (FLS) Q1 EPS 28c vs. est. 19c; Q1 revenue $857.3M vs. est. $812.8M; Q1 included a 47% increase in adjusted EPS year-over-year while generating 15% sequential bookings growth; raises FY21 EPS view to $1.40-$1.60 from $1.30-$1.50 (est. $1.52); backlog at March 31, 2021 was $1.9 bln, up 1.6% versus December 31, 2020

·     Kennametal Inc. (KMT) 3Q adj EPS $0.32 vs. est. $0.20 on sales $485Mm vs. est. $472.4Mm; guides 4Q sales +MSD sequentially, sees FY CAPEX about $120Mm

·     Maxar Technologies (MAXR) Q1 EPS loss ($1.30), in-line with last year loss; Q1 revenue $392M vs $381M last year; total order backlog of $1.8 bln as of March 31, 2021 compared to $1.9 bln as of December 31; net loss of $84M, inclusive of a $28M charge related to the SXM-7 satellite program and a $41M loss on debt extinguishment

·     Regal Beloit Corp. (RBC) 1Q adj EPS $1.98 vs. est. $1.71 on sales $814.1Mm vs. est. $784.9Mm, daily orders +17% in 1Q and almost +90% in April; guides 2Q sales +hi-20’s% vs. est. +23% and 2Q adj EPS $1.85-2.05 vs. est. $1.82

·     Woodward (WWD) Q2 adj EPS $1.61 vs. est. 80c; Q2 revenue $581.32M vs. est. $572.33M; will continue to withhold guidance as we navigate uncertain economic landscape.

·     XPO Logistics (XPO) Q1 adj EPS $1.46 vs. est. 97c; Q1 revenue $4.77B vs. est. $4.34B; raises year adjusted eps to $5.90-$6.50 from prior $5.10-$5.85 (est. $5.46) and boosts year adjusted ebitda $1.83B-$1.88B from $1.73B-$1.8B

 

Materials

·     Chemours (CC) Q1 adj EPS 71c vs. est. 63c; Q1 revenue $1.4B vs. est. $1.4B; boosts FY21 adj EPS view to $2.84-$3.56 from $2.40-$3.12 (est. $2.87); says free Cash Flow now expected to be greater than $450M, up $100M vs. prior outlook

·     DuPont (DD) Q1 adj EPS 91c vs. est. 76c; Q1 revenue $3.98B vs. est. $3.85B; sees Q2 adj EPS 93c-95c vs. est. 88c; sees Q2 revenue $3.93B-$4.03B above consensus $3.85B; raises FY21 adj EPS view to $3.60-$3.75 from $3.30-$3.45 (est. $3.45) and boosts FY21 revenue view to $15.7B-$15.9B from $15.4B-$15.6B (est. $15.6B)

·     DuPont (DD) shareholders voted in favor by more than 81% proposal asking the company to disclose how much plastic the company releases into the environment each year and assess the effectiveness of DuPont’s pollution policies, after company management had advised investors to reject the resolution.

·     Nutrien (NTR) Q1 EPS 29c (in-line w ests) on revs $4.66B vs. est. $3.99B; raises FY21 EPS view to $2.55-$3.25 from $2.05-$2.75 (est. $2.34) and boosts FY21 adjusted EBITDA view to $4.4B-$4.9B from $4.0B-$4.5B

·     Livent Corp. (LVNT) Q1 GAAP EPS loss (1c) vs. est. 1c; Q1 revenue $91.7M vs. est. $82.1M; sees FY21 revenue $335M-$365M vs. est. $352.85M; sees FY21 Adjusted EBITDA $40M-$60M; expects ’21 performance at higher end of range

·     Mosaic (MOS) 1Q adj EPS $0.57 vs. est. $0.52 on revs $2.3B vs. est. $2.25B, qtrly phosphates sales volume +7% yr/yr, says strengthening fundamental trends expected to continue through remainder of FY; 1q adj Ebitda $560M, vs. est. $563.5m

 

Technology

·     Fabrinet (FN) 3Q adj EPS $1.21 vs. est. $1.14 on revs $479.3Mm vs. est. $468.8Mm; guides 4Q adj EPS $1.18-1.25 vs. est. $1.119, sees 4Q revs $475-495Mm vs. est. $483.6Mm

·     Intel Corporation (INTC) will invest $3.5 billion to equip its New Mexico operations for the manufacturing of advanced semiconductor packaging technologies, including Foveros, Intel’s breakthrough 3D packaging technology

·     Rambus (RMBS) 1Q EPS ($0.02) on revs $70.4Mm; says sees 2Q licensing billings $50-66Mm

·     Sanmina Corp. (SANM) Q2 adj EPS $1.01 vs. est. 83c; Q2 revenue $1.7B vs. est. $1.71B; sees Q3 adj EPS 84c-94c vs. est. 84c; sees Q3 revenue $1.675B-$1.775B vs. est. $1.73B

·     Varonis Systems (VRNS) Q1 EPS loss (36c) vs. est. loss (13c); Q1 revenue $74.79M vs. est. $68.9M; said Q1 subscription revenues increased 120% to $44.8M, compared with $20.4M YoY; boosts FY21 revenue to $365M-$370M from $357M-$366M and narrows year EPS view

·     ZoomInfo (ZI) Q1 adj EPS 13c vs. est. 10c; Q1 revenue $153.3M vs. est. $145.5M; sees Q2 adj EPS 11c-12c vs. est. 11c; sees Q2 revenue $161M-$163M vs. est. $154.14M; closed the quarter with more than 950 customers with $100,000 or greater in annual contract value