MARKET MOVERS/ STOCKS IN FOCUS – May 4th

MARKET MOVERS

InFocus Last day trade;

Big analyst picks;

Big analyst cuts;

Stocks In News;

Earnings Calendar;

MARKET MOVERS

 InFocus Last day trade

• Starbucks’ (NASDAQ:SBUX):- shares dropped 4.4% after the coffee company opted not to raise its 2023 projection despite posting better-than-expected quarterly profitability driven by a rapid expansion of its customer base in China.
• Advanced Micro Devices (NASDAQ:AMD:- A poor PC market caused Advanced Micro Devices (NASDAQ:AMD) to predict quarterly sales below projections, which resulted in a 7.6% decline in the company’s stock price.
• Ford’s (NYSE:F):- shares dropped 1.2% as the automaker said that, while reporting strong revenue and profit in the first quarter, it expects to incur restructuring charges of between $1.5 billion and $2 billion in 2023. It also reported that its electric car segment continues to experience losses.
• Eli Lilly (NYSE:LLY) :- The share price of Eli Lilly (NYSE:LLY) increased 5.7% after the pharmaceutical company revealed encouraging Phase 3 findings for one of its Alzheimer’s drugs.
• The share price of CVS Health (NYSE:CVS) dropped 2.4% after the pharmacy chain cut its profitability forecast for 2023, citing expenses related to two recent acquisitions that were made as part of an effort to diversify its product line.
• The share price of CVS Health (NYSE:CVS) dropped 2.4% after the pharmacy chain cut its profitability forecast for 2023, citing expenses related to two recent acquisitions that were made as part of an effort to diversify its product line.
• Amcor (NYSE:AMCR) :-The shares of packaging business Amcor (NYSE:AMCR) dropped 6.4% after it lowered its full-year profits projection due to volume problems.
•  Kraft Heinz (NASDAQ:KHC):- The shares of packaged food firm Kraft Heinz (NASDAQ:KHC) increased 3.2% after the business increased its full-year profit prediction as pricing increases and strong demand offset the impact of rising commodity prices.
• Yum! Brands :- After beating forecasts for comparable sales in the first quarter, Yum! Brands (NYSE:YUM) shares dropped 3.5% as more customers chose Taco Bell and KFC’s less expensive menu options.
• After Estée Lauder (NYSE:EL):- Forecast a bigger drop in full-year sales and profit on Wednesday due to a slower-than-expected recovery in its key market China, the cosmetics giant’s stock price dropped over 13.7%.

Big analyst picks

• Molson Coors:- Following a positive Q1 performance, Molson Coors receives two upgrades. JPMorgan boosted its price objective for the brewer from $59.00 to $64, upgrading it from Underweight to Neutral. In the meanwhile, CFRA boosted its price objective for the company from $50.00 to $70.00 and upgraded it from Hold to Buy.

• Penn National Gaming :-Prior to its first quarter reporting, Penn National Gaming improved:- The company claims that poor weather that affected Q4/22 profitability led to an overreaction from the buy-side and sell-side, which resulted in decreased 2023 estimates. Although Q1/23 GGR has increased, investors may decide to reconsider 2023 as a result of better Q1 margins brought on by favourable weather and increased demand.

•  Ameresco (NYSE:AMRC) :-With a Buy rating and a $60 price target, UBS began coverage of Ameresco (NYSE:AMRC), noting that it anticipates a 19% annual growth in adjusted EBITDA through 2027, driven by capital reinvestment into energy assets (solar, storage, and RNG), which are not yet valued in the stock. The company anticipates that these expenditures will result in a profitable 50%+ additional margin contribution.
• Globalstar (NYSE:GSAT) was moved from Underweight to Equalweight by Morgan Stanley, which also lowered their price objective from $1.75 to $0.97. Pre-market today, shares increased by more than 7%.

Big analyst cuts

Advanced Micro Devices (NASDAQ:AMD) was downgraded by Bank of America to Hold from Buy and had its price target decreased from $98 to $95 as a result of the company’s weak Q2 forecast. AMD was trading down in the premarket on Wednesday.

Stocks drop as Comerica (NYSE:CMA) is downgraded to Peerperform due to ongoing concerns about regional banks. Yesterday, Comerica’s shares suffered a significant loss and fell more than 12%.

Neutral rating drop for Quest Diagnostics:- Quest Diagnostics (NYSE:DGX) was downgraded by BofA Securities to Neutral from Buy and its price target was decreased from $166.00 to $148.00.

Clorox (NYSE:CLX) CFRA raised its price objective for Clorox (NYSE:CLX) from $143.00 to $145.00 while downgrading the stock to Sell from Hold.

 E2open Parent (NYSE:ETWO Following the release of the Q4 earnings, E2open Parent (NYSE:ETWO) was downgraded at BofA Securities and Craig-Hallum.BofA Securities lowered its price objective for the firm from $8.00 to $5.00 and downgraded it from Buy to Underperform. Craig-Hallum, meanwhile, lowered from Buy to Hold.

Stocks In News

Earnings from Apple:-On a revenue of $92.9 billion, Apple Inc. (NASDAQ:AAPL) is anticipated to post earnings per share of $1.43.

Earnings for Shell :- Shell PLC ADR (NYSE:SHEL), the world’s largest oil company, is anticipated to announce profits per share of $2.09 on sales of $78.99 billion.

Chesapeake’s (CHK) Q1 EPS was $1.87 compared to the expected $1.72; net production in Q1 was roughly 4.1 billion cubic feet equivalent per day, with natural gas making up about 90% and all other liquids the remaining 10%.

Comstock Resources (CRK) drilled 18 operational horizontal Haynesville/Bossier shale wells in Q1 with an average lateral length of 12,075 feet. Q1 adj EPS $0.33 vs. est. $0.35; Q1 revs $390.4M vs. est. $448.43M; Q1 production cost per Mmcfe was 83c per Mmcfe.

Edison International (EIX) Q1 EPS $1.09 vs. approx. $0.95; Q1 revenues $3.97B vs. est. $4.25B; supports an FY23 EPS range of $4.55-$4.85 vs. an estimated $4.73; and sets a long-term EPS growth rate objective of 5%-7% for 2021–2025.

Jack Henry & Associates’ (3Q) $1.12 EPS beat estimates. $1.10 in sales $508.5M compared to estimate. $529.2Mm; forecasts FY adj. revenues of $2.02-2.03B. $2.05B and $4.85–4.87 EPS vs. estimate. $4.81.

Lincoln National (LNC) announces a $28 billion reinsurance agreement with Fortitude Re and issues Q1 adjusted EPS guidance of $1.47 to $1.56 vs. $1.81 expected.

Paycom’s (1Q adj) $2.46 EPS was lower than expected. $2.35 on revenue of $451,6M more than expected. $221M in adj EBITDA vs. estimate: $444.2M. $211.4Mn; anticipates 2Q revenue of $397-$399Mn. $393,1M, adj EBITDA: $154–164M vs. est. $150.4Mm, vs. expected FY revenue of $1.713-1.715B. $1.7B.

Voya Financial (VOYA) :- Excess capital of around $0.5 billion as of March 31, 2023, indicating capital creation of over 90% of adjusted operating profits for the prior twelve months ended March 31. Voya Financial (VOYA) Q1 adj EPS $1.44 vs. est. $1.71.

Western Union’s (WU) Q1 adj EPS was $0.43 vs. expectations. $0.34; Q1 sales $1.04B vs. estimate. $998.5M; adjusted EPS for FY23 $1.55–$1.65 vs. est. $1.58; compares to estimated FY23 GAAP sales of (7%-9)%. $4.09B.

ImmunoGen Inc. (IMGN):- Positive top-line findings from the Phase 3 confirmatory MIRASOL study (GOG 3045/ENGOT OV-55) assessing the safety and effectiveness of ELAHERE were released by ImmunoGen Inc. (IMGN).

Inspire Medical Systems’s (INSP) 1Q EPS ($0.53) was $0.53 more than expected. (0.66) on revenue of $127.9M compared to estimate. $119.3Mm, gr mgn 84.4%; forecasts FY revs of $580-590Mm. $569.9M, gramme mgn 83-85%.

Omnicell’s (1Q adj) $0.39 EPS above expectations. $0.07 on $290.6M in revenues against expectations. $277.7M, adj EBITDA of $27M vs. estimate. $11.3M; forecasts 2Q revenue of $278-288M. $288.7M, adj EBITDA estimated at $22-28M. vs. estimate, $30.7M and adj EPS of $0.25-0.35. $0.37; compared. estimates, FY adj EBITDA is $120–135 million. $127.5M.

Pacific Biosciences’ (PACB) 1Q adj EPS ($0.31) was $0.31 more than expected. ($0.33) on $38.9Mm in revenue against expectations. $34.4M, adj. gross management 26%.

Penumbra Inc.’s (PEN) Q EPS of $0.22 beat estimates. $0.11 on $241.4M in revenues against expectations. $229.7Mm; guiding FY revs $1.04-1.06B vs. est. $1.0B.

Advanced Micro’s (AMD) 1Q adj EPS of $0.60 above expectations. $56 on revisions $5.353B compared to expectations. $5.3B, adj gr mgn 50%; forecasts 2Q revs of $5.0-5.6B vs. est. $5.48B with adj gross margin of around 50%; continues to be optimistic about growth in 2H as pc and server markets improve and new products start to flow.

Match Inc.’s (MTCH) 1Q EPS of $0.42 beat estimates. $0.41 on $787.1M in revenues vs expectations. $793.8Mm, adj op mgn 33%; 2Q revs are expected to be between $805-815Mm. $822.3Mm.

Super Micro’s (SMCI) 3Q adj EPS was $1.63 vs. expectations. 1.71% on sales $1.28B compared to expectations. $1.39B, adj gross margin 17.7%; 4Q net sales guidance $1.7-1.9B compared to the estimate. $1.64B; adj EPS vs. estimate: $2.21-2.71. $2.10.

Viavi (VIAV) Q3 adj EPS $0.08 vs $0.09 est; Q3 revs $247.8M against est. $250.32M; Q4 EPS and revs are below expectations.

Workiva’s (WK) Q1 adj EPS loss (-$0.12) was worse than expected (-$0.22), while Q1 revenues were $150.19M more than expected. $149.61M; adjusted FY23 EPS loss (13c)-(9c) vs. est. loss (-$0.26) and revs $626M-$628M vs. est. $625.75M. 

EARNINGS CALENDAR 4th MAY

BEFORE THE MARKET OPEN

Novo Nordisk ADR (NVO)National Australia Bank ADR (NABZY) Shell ADR (SHEL) Anheuser Busch ADR (BUD) ConocoPhillips (COP) Regeneron Pharma (REGN) Zoetis Inc (ZTS) Becton Dickinson (BDX) Shopify Inc (SHOP) Canadian Natural (CNQ) ICE (ICE) Moderna (MRNA) Ferrari NV (RACE) Infineon ADR (IFNNY) Sempra Energy (SRE) American Electric Power (AEP) Ambev SA (ABEV) BCE Inc (BCE) SwissCom AG (SCMWY) PG E (PCG) Capgemini ADR (CGEMY) Henkel AG & Co KGAA (HENKY) Henkel Ag A (HENOY) TELUS (TU) AP Moeller-Maersk AS (AMKBY) Swiss Re (SSREY) Aptiv (APTV) Legrand ADR (LGRDY) Constellation Energy (CEG) Alnylam (ALNY) Quanta Services (PWR) Kellogg (K) Vulcan Materials (VMC) Martin Marietta Materials (MLM)Cardinal Health (CAH) PPL (PPL) Datadog (DDOG) Xylem (XYL) Telenor ASA ADR TELNY) Ball (BALL) Targa Resources (TRGP) Iron Mountain (IRM) Bruker (BRKR) Magellan (MMP) BorgWarner (BWA) Carlyle Group (CG) Lamar (LAMR) ZALANDO ADR (ZLNDY) The Dixie (DXYN) iSpecimen (ISPC)

AFTER THE MARKET CLOSED

Apple (AAPL) ANZ Group (ANZGY) Booking (BKNG) EOG Resources (EOG) Monster Beverage (MNST) Motorola (MSI) Fortinet (FTNT)  Microchip (MCHP) AIG (AIG) Atlassian Corp Plc (TEAM) Block (SQ) Consolidated Edison (ED) Wheaton Precious Metals (WPM) Ameren (AEE) DoorDash (DASH) Banco Bradesco (BBD) Monolithic (MPWR) Insulet (PODD)  Coterra Energy (CTRA) Pembina Pipeline (PBA) Live Nation Entertainment (LYV) Brazilian Electric Power DRC (EBR) Expedia (EXPE) AMH 4 Rent (AMH) Alliant Energy (LNT) Bio-Rad Labs B (BIOb) Bio-Rad Labs (BIO)  Ryan Specialty Group Holdings (RYAN) Floor & Decor (FND) Paylocity Holdng PCTY)Regency Centers (REG) DraftKings (DKNG) Open Text (OTEX) Federal Realty (FRT) Americold Realty (COLD) Charles&Colvard (CTHR)Safeguard Scientifics (SFE) Jones Soda Co (JSDA) GTX Inc (ONCT)