Early Look

Tuesday, May 7, 2024

U.S. futures looking mixed after posting strong results on Monday. Only 4-days into May and major averages are up between 2.7%-4.4% between the S&P, Russell 2000, Nasdaq, and Dow as investors have put a rough April behind them. Bank America noted yesterday “the 6-month stretch from May to October known for weak SPX performance has been positive in 8 of the past 10 years from May-Oct, with an average return of +4%” (so much for the “Sell in May – Go Away”) then as the Nasdaq 100 (QQQ) is now up 4.5% in 3 days and just 2% from the 3/21 all-time highs (ATH) and the S&P 500 index (SPX) is +3.2% in 3 days and 1.6% from its respective 3/28 ATH. Stock markets recorded their third straight session Monday, as investors continued to gain hope that there was a greater chance of the Federal Reserve cutting interest rates this year. Expectations for rate cuts by the U.S. central bank have been tempered as the year has progressed, as inflation has proven stickier, and some investors had begun to worry they might not materialize at all, sending markets lower in April – but weak jobs data last Friday raised hopes it could lead to a more accommodative Fed by the Fall. Most S&P 500 sectors ended in positive territory, led by communications, technology, and energy, which got a boost as natural gas prices rose to 14-week highs. In Asian markets, The Nikkei Index surged 599 points or 1.57% to 38,835, the Shanghai Index rose 7 points to 3,147, and the Hang Seng Index fell -98 points to 18,479. In Europe, the German DAX is up 137 points to 18,313, while the FTSE 100 jumps 85 points, or 1% to 8,298 (all-time highs) after returning from holiday. This morning Dow component and media giant Disney (DIS) reported better Q1 results but subs missed, while raised EPS growth view.

• The Dow Jones Industrial Average rose 176.59 points, or 0.46%, to 38,852.27.
• The Nasdaq Composite jumped 192.92 points, or 1.19%, to 16,349.25.
• The Russell 2000 Index advanced 24.95 points, or 1.23% to 2,060.67.

• 8:55 AM ET                  Johnson/Redbook Weekly Sales
• 11:30 AM ET                Fed’s Kashkari Participates in Fireside Chat
• 1:00 PM ET                   U.S. Treasury to sell $58B in 3-year notes.
• 3:00 PM ET                   Consumer Credit for March
• 4:30 PM ET                   API Weekly Inventory Data

• Earnings After the Close: ACRS ADPT AGL AHT AIZ ALAB AMRC ANET ANGI AOSL APEI AQST ATEC AWR AZPN BCC BHF BIO BKD BL BROS BRP CERT CFLT CLOV CMP CPNG CRC CRUS CYRX DAVE DEI DO DV EA ENV EOLS EPM FLYW FTK GMED GMRE GO GPRO GXO HALO HASI HEAR HRTX IAC INGN INSP INTA IPAR IRBT JKHY JOBY KD KE KTCC KTOS LAND LAZR LGND LOPE LPRO LYFT LZ MASI MCK MEG MQ MRCY MTCH MTW MYGN NRDY OVV OXY PAYS PCRX PCT PEN POWI PRO PRPL PUBM QLYS RDDT RDFN REAL RGR RIVN RNG RPD RRR RVLV RYAM SHLS SIGA SNCR SONO SPCE STAA SWIM TMCI TOST TRIP TWLO UFCS UIS UPST VECO WYNN YMAB ZI

• BTIG 4th Annual Housing Ecosystem Conference, 5/6-5/7, in New York
• Oppenheimer 19th Annual Industrial Growth Conference, 5/6-5/8
• ASGCT Annual Meeting – American Society of Gene & Cell Therapy, 5/7-5/11, in Baltimore, MD
• RSA Conference, 5/7-5/9, in San Francisco, CA
• China April Exports/Import/Trade Balance data

• Celsius Holdings (CELH) shares fell after Q1 EPS $0.27 vs. est. $0.19; Q1 revs jumped 37% y/y to $355.71M vs. est. $389.86M; said Q1 category share of 11.5% as of April; said a sequential drop in inventory days dragged revenue by about $20M.
• Coty Inc. (COTY) Q3 EPS $0.05 vs. est. $0.06; Q3 revs rose 8% y/y to $1.39B vs est. $1.37B; Q3 adj EBITDA $199.9M vs. est. $193.6M; Q3 adj operating income $143.9M vs. est. $130.4M; Q1 Prestige net revenues increased 8% on a reported basis and 13% on a LFL basis and Consumer Beauty net revenues increased 6% on a reported and LFL basis; said FY24 outlook raised to high end of guidance range.
• International Flavors & Fragrances (IFF) Q1 adj EPS $1.13 vs est. $0.87, adj EBITDA $578Mm vs. est. $492.4Mm on sales $2.9B vs est. $2.78B; guides FY toward higher end of prior sales guidance of $10.8-11.1B vs est. $11.052B and adj EBITDA $1.9-2.1B vs est. $2.039B, sees volume towards higher end of prior +0-3% range and pricing approx +1%.
• Lucid (LCID) Q1 EPS ($0.30) vs est. ($0.25) on revs $172.74Mm vs est. $156.99Mm, delivered 1,967 vehicles, produced 1,728 vehicles, says on track for annual production of about 9,000 vehicles.
• Vici Properties Inc (VICI) files for common stock offering of up to $2.0B.

• Axon Enterprises (AXON) Q1 adj EPS $1.15 vs est. $0.94 on revs $461Mm vs est. $441.6Mm; sees FY revs $1.94-1.99B vs est. $1.932B, CAPEX $80-95Mm.
• BWX Technologies (BWXT) Q1 EPS $0.75 vs est. $0.69, adj EBITDA $115.2Mm vs est. $112.1Mm on revs $604Mm vs. est. $599.9Mm; sees FY revs $2.6B vs. est. $2.615B and adj EPS $3.05-3.20 vs es.t $3.14.
• FMC Corp. (FMC) Q1 adj EPS $0.36 vs. est. $0.32; Q1 revs fell -32% y/y to $918.0M vs. est. $1.01B; said Q1 negative adj free cash flow $187.8M, -79% y/y; sees Q2 EPS $0.43-$0.72 vs. est. $0.67 and revs $1.00-$1.15B vs. est. $1.05B while still forecasts FY revs $4.50B to $4.70B vs. est. $4.53B.
• Gold Fields (GFI) said Q1 production was severely impacted by weather-related events and operational challenges; said attributable equivalent gold production, excluding Asanko in Ghana, for the quarter fell 18% compared with last year and 22% sequentially to 464,000 ounces.
• Mueller Water (MWA) Q2 adj EPS $0.30 vs est. $0.15, adj EBITDA $82.2Mm vs. est. $49.9Mm, adj EBITDA mgn 23.3%; guides FY net sales -2% to flat vs est. -4.48%, adj EBITDA $248.6-256.7Mm vs est. $217.02Mm.
• Palantir (PLTR) Q1 adj EPS $0.08, in-line with consensus on revs $634M vs. est. $625.43M; sees Q2 revenue $649M-$653M, below consensus $653.25M and adj income from operations $209M-$213M; for FY24, raises revenue view to $2.677B-$2.689B from $2.652B-$2.668B vs. est. $2.71B.
• Regal Rexnord (RRX) Q1 adj EPS $2.00 vs. est. $1.99; Q1 revs $1.55B vs. est. $1.56B; said delivered adjusted gross margins of 36.5% or 37.4% without Industrial Systems, well on our path to 40%; lowers FY24 adjusted EPS view to $9.60-$10.40 from $9.75-$10.55 (est. $10.13).
• Rocket Lab (RKLB) Q1 EPS loss (-$0.09) vs. est. loss (-$0.11); Q1 revs $92.77M vs. est. $94.99M; sees Q2 revenue $105M-$110M, vs. consensus $106.22M and sees Q2 adjusted EBITDA ($25M)-($23M); announced it has completed the selection of subcontractors to provide payloads and ground systems for the 18 satellites the Company is developing for SDA.
• Williams Energy (WMB) Q1 adj EPS $0.59 vs est. $0.48, adj EBITDA $1.934B vs est. $1.766B; guides FY adj EBITDA to top half of $6.8-7.1B range vs est. $6.952B; sees FY25 adj EBITDA $7.2-7.6B vs est. $7.466B.

• Fidelity National (FIS) Q1 adj EPS $1.10 vs est. $0.95, adj EBTIDA $975Mm vs est. $962.4Mm on revs $1.684B vs est. $2.445B; reaffirms FY revs and adj EBITDA, raises FY adj EPS guide by $0.22 to $4.88-4.98 vs est. $4.71, sees Q2 revs $2.465-2.490B vs est. $2.488B and adj EPS $1.21-1.25 vs est. $1.15.
• Realty Income (O) Q1 AFFO/shr $1.03 vs est. $1.04 on revs $1.26B vs est. $1.20B.
• Simon Property Group (SPG) Q1 FFO/shr $3.56 vs est. $2.81, occupancy 95.5%; sees FY FFO/shr $12.75-12.90 vs est. $12.08.
• Vornado Realty (VNO) Q1 AFFO/shr $0.55 vs est. $0.58; says extends one of its two revolving credit facilities.

• RxSight (RXST) Q1 adj EPS ($0.12) vs est. ($0.27) on revs $29.5Mm vs est. $31.56Mm; guides FY revs $132-137Mm vs est. $131.55Mm, gr mgn 68-70%, op exp $126-130Mm.
• Vertex Pharmaceuticals (VRTX) Q1 EPS $4.21 vs. est. $4.06; Q1 revs rose 13% y/y to $2.69B vs. est. $2.58B; affirms FY4 revenue view of $10.55B-$10.75B (est. $10.7B); Submitted NDA and MAA filings for Vanzacaftor triple in CF to FDA and EMA.

• Coherent Corp. (COHR) Q3 adj EPS $0.53 vs. est. $0.40 and revs fell -2.5% y/y to $1.21B vs. est. $1.17B; guides Q4 revs $1.23B-$1.32B above est. $1.27B and forecasts Q4 adj EPS $0.52-$0.68 vs. est. $0.54.
• Fabrinet (FN) Q3 adj EPS $2.39 vs. est. $2.11; Q3 revs rose 10% y/y to $731.5M vs. est. $717.8M; sees Q4 adj EPS $2.20-$2.27 above est. $2.17 and revs $720M-$740M vs. est. $735.7M.
• Lumentum Holdings (LITE) Q3 adj EPS $0.29 vs est. $0.26 on revs $366.5Mm vs est. $365.1Mm, adj gr mgn 32.6% and adj op mgn 4.1%; sees Q4 revs $290-315Mm vs est. $331.44Mm and adj EPS ($0.05) – $0.10 vs est. $0.14.
• Microchip (MCHP) Q4 EPS $0.57 vs. est. $0.59 and revs $1.33B vs. est. $1.34B; raises dividend; guides Q1 EPS $0.46-$0.56 vs. est. $0.58 and revs $1.22B-$1.26B below consensus $1.34B; said believe that business will return to sequential revenue growth in sept 2024 qtr; said capital expenditures for fiscal 2025 expected to be about $175M.
• Teradata (TDC) Q1 EPS $0.57 vs. est. $0.55; Q1 revs $465M vs. est. $466M; Q1 public cloud ARR increased 35% y/y to $525M from $388M, and total ARR decreased -2% y/y to $1.480B from $1.506B; still sees FY24 adjusted EPS $2.15-$2.31 vs. est. $2.20 and total ARR growth of 4% to 8% year-over-year, in constant currency; Recurring revenue growth of 1% to 3% year-over-year.
• Zeta Global (ZETA) Q1 adj EBITDA $30.5Mm vs est. $29Mm on revs $195Mm vs est. $187.1Mm; sees Q2 revs $210-214Mm vs. est. $204.11Mm and adj EBITDA $35.3-35.8Mm vs est. $34.18Mm and prior $34.2Mm; sees FY revs $895-905Mm vs est. $874.91Mm and adj EBITDA $170-172Mm vs est. $165.74Mm and prior $166Mm.