Newsquawk

Daily US Equity Opening News - MSFT lower after soft guidance; META falls on heavy spending plans; EL tumbles on withdrawn guidance

TODAY'S AGENDA:

DAY AHEAD: Chicago PMI and Dallas Fed gauges are due. In energy, the EIA's natgas storage change data for the week is seen posting a build of 82bcf (prev. 80bcf). Today's US corporate earnings slate is heavy and includes Apple (AAPL), Intel (INTC), Amazon (AMZN), United States Steel (X), Ingersoll Rand (IR), and Atlassian Corp (TEAM).

BROKER MOVES: LHX upgraded at BofA; ARM downgraded at Bernstein. For the full list, please click here.

EQUITY NEWS:

TECH

Microsoft (MSFT) Q1 2024 (USD): EPS 3.30 (exp. 3.10), Revenue 65.6bln (exp. 64.51bln); Cloud revenue 38.9bln (exp. 38.1bln), Intelligent Cloud revenue 24.1bln (exp. 26.7bln), Azure and other cloud services revenue (ex-FX) rose +34%; AI contributed 12 pts to Azure revenue growth in the quarter. Productivity and Business Processes revenue 28.32bln (exp. 23.79bln), More Personal Computing revenue 13.18bln (exp. 13.92bln). Commentary: Exec said FY25 was off to a solid start, with AI sales tracking to beat a USD 10bln run rate in Q2; exec added that it continues to take share across all major categories. Guidance: Q2 total revenue 68.1-69.1bln (exp. 69.9bln); Intelligent Cloud revenue 25.55-25.85bln, More Personal Computing revenue 13.85-14.25bln, Productivity and Business Processes revenue 28.7-29bln; Q2 Office 365 growth seen at around +14%, and Q2 Azure revenue growth +31-32% (exp. 31.1%).

Uber Technologies (UBER) Q3 2024 (USD): EPS 1.20 (exp. 0.41), Revenue 11.19bln (exp. 10.98bln), Gross bookings 40.97bln (exp. 41.24bln), Mobility bookings 21.00bln (exp. 21.38bln), Adj. EBITDA 1.69bln (exp. 1.65bln). Guidance: Q4 gross bookings view 42.75-44.25bln (exp. 43.67bln). Commentary: CEO sees broad strength in trip volumes, but especially outside the US, via CNBC.

Samsung Electronics (SSNLF) Q3 2024 (KRW): Net profit 10tln (exp. 7.8tln), Operating profit 9.2tln. Commentary: The decline in operating profit was attributed to one-off costs in the chip division. Ahead, it will focus on profitability over market share in 2025, with anticipated growth in the overall foundry market. However, an executive noted that the display sector faces challenges from increasing competition. Samsung said Q4 earnings growth will be limited; will mass produce HBM4 in 2025; sees global smartphone market growing by less than 1% next year.

Micron (MU) - Chair Robert Switz will retire on January 16th; current president and CEO Sanjay Mehrotra has been appointed as the new board Chair; Lynn Dugle will take on the role of lead independent director.

KLA Corp (KLAC) Q1 2025 (USD): Adj. EPS 7.33 (exp. 7.05), Revenue 2.84bln (exp. 2.76bln). Commentary: Exec said that while some customers are facing near-term challenges, it is optimistic about continued semiconductor market growth into 2025. Guidance: Q2 revenue 2.95bln (exp. 2.857bln), Adj. EPS 7.15-8.35 (exp. 7.41).

TSMC (TSM) - Typhoon Kong-rey made landfall on Taiwan's east coast, leading to widespread closures, cancelled flights, and significant rainfall. TSMC expects minimal operational impact; it implemented standard typhoon preparation protocols at all facilities, but anticipates no major operational disruptions.

Cognizant Technology (CTSH) Q3 2024 (USD): Adj. EPS 1.25 (exp. 1.15), Revenue 5.0bln (exp. 5.0bln). Results were driven by strong performance in its largest segments, Health Sciences and Financial Services. Investments in AI-driven platforms were resonating with clients and supported its large deals success; in the quarter, it signed six deals with total contract value of more than USD 100mln each, bringing its YTD count to nineteen, more than FY23 in total. Guidance: Q4 revenue 5.0-5.1bln (exp. 5.1bln); FY24 adj. EPS 4.63-4.67 (exp. 4.62), Revenue19.7-19.8bln (exp. 19.65bln).

MicroStrategy (MSTR) Q3 2024 (USD): EPS -1.72 (exp. -0.14), Revenue 116.1mln (exp. 122.7mln). YTD BTC yield 17.8%; is revising its long-term target to achieve an annual BTC Yield of 6-10% between 2025-27. As of September 30th, the carrying value of its digital assets (around 252,220 bitcoins) was USD 6.851bln; the original cost basis and market value of its bitcoin were USD 9.904bln and USD 16.007bln, respectively, reflecting an average cost per bitcoin of approximately USD 39,266 and a market price per bitcoin of USD 63,463, respectively. Aims to raise USD 42bln over the next 3 years to buy more bitcoin.

Nvidia (NVDA) - The European Commission has accepted the request submitted by Italy to assess the proposed acquisition of Run:ai by Nvidia under the EU Merger Regulation.

Twilio (TWLO) Q3 2024 (USD): EPS 1.02 (exp. 0.85), Revenue 1.13bln (exp. 1.09bln). More than 320k Active Customer Accounts (vs 306k Y/Y). Guidance: Q4 revenue 1.15-1.16bln (exp. 1.15bln), EPS 0.95-1.00 (exp. 0.87). FY24 organic revenue growth 7.5-8.0%, FY24 FCF 650-675mln.

Informatica (INFA) Q3 2024 (USD): EPS -0.05 (exp. 0.30), Revenue 422.5mln (exp. 421.5mln). Surpassing 101tln processed cloud transactions per month in the quarter. Sees great momentum in AI-powered data management use cases. Guidance: Q4 revenue 448-468mln (exp. 460.3mln); Reiterated FY24 revenue outlook at 1.66-1.68bln (exp. 1.67bln).

Monolithic Power (MPWR) Q3 2024 (USD): EPS 4.06 (exp. 3.97), Revenue 620.1mln (exp. 600.6mln). Guidance: Q4 revenue 600-620mln (exp. 602.7mln).

GoDaddy (GDDY) Q3 2024 (USD): EPS 1.32 (exp. 1.23), Revenue 1.15bln (exp. 1.14bln). Launches a new reseller programme. Guidance: Q4 revenue 1.165-1.185bln (exp. 1.18bln). Raised FY24 revenue to 4.545-4.565bln (exp. 4.55bln).

STMicroelectronics (STM) Q3 2024 (USD): EPS 0.37 (exp. 0.33), Revenue 3.25bln (exp. 3.22bln). Guidance: Q4 revenue 3.32bln (exp. 3.38bln), but lowered FY24 revenue to 13.3bln (exp. 13.3bln, prev. 13.2-13.7bln). Launches new Co.-wide programme to restore manufacturing footprint; "based on our current customer order backlog and demand visibility, we anticipate a revenue decline between Q4'24 and Q1'25 well above seasonality."

Paycom Software (PAYC) Q3 2024 (USD): EPS 1.67 (exp. 1.61), Revenue 452mln (exp. 447mln). Guidance: Q4 revenue 477-484mln (exp. 483mln), FY24 revenue 1.866-1.873bln (exp. 1.87bln).

Gen Digital (GEN) Q2 2025 (USD): Non-GAAP EPS 0.54 (exp. 0.54), Revenue 974mln (exp. 970mln). Guidance: Q3 EPS 0.54-0.56 (exp. 0.55), Revenue 980-990mln (exp. 978mln); FY25 EPS 2.18-2.23 (exp. 2.20), Revenue to 3.905-3.930bln (exp. 3.91bln).

COMMUNICATIONS

Meta Platforms (META) Q3 2024 (USD): EPS 6.03 (exp. 5.24), Revenue 40.59bln (exp. 40.27bln). Advertising revenue 39.89bln (exp. 39.71bln), Family of Apps revenue 40.32bln (exp. 39.92bln), Reality Labs revenue 270mln (exp. 312.8mln). Ad impressions +7% (prev. +31% Y/Y, exp. +10.8%), Average price per ad +11% (prev. -6% Y/Y, exp. +6.8%), Average family service users per day 3.29bln (exp. 3.25bln). Commenatary Exec said Meta AI now has more than 500mln monthly active users, Llama 4 models are training on a cluster that exceeds 100k H100 GPUs daily, and it expects to complete the global rollout of the Facebook full-screen video tab in early 2025. Guidance: Q4 total revenue 45-48bln (exp. 46.3bln), FY CapEx 38-40bln (prev. 37-40bln); continues to expect significant CapEx growth in 2025.

Disney (DIS) - Will pay over USD 500mln to broadcast the Grammy Awards for ten years starting in 2027, ending CBS' decades-long tenure, WSJ reports. ABC, Disney+, and Hulu will air the show, with additional content from the Recording Academy on Disney platforms.

DoorDash (DASH) Q3 2024 (USD): EPS 0.38 (exp. 0.21), Revenue 2.7bln (exp. 2.66bln); Marketplace gross order value 20.00bln (exp. 19.74bln). Guidance: Q4 adj. EBITDA 525-575mln (exp. 545mln), Gross order value 20.6-21bln (exp. 20.53bln). DoorDash also announced that it and Lyft (LYFT) have partnered to offer exclusive benefits; starting October 30th, DashPass members receive monthly Lyft rideshare perks, while eligible Lyft riders get a free DashPass trial, enhancing savings on rides and local delivery services.

Roku (ROKU) Q3 2024 (USD): EPS -0.06 (exp. -0.32), Revenue 1.06bln (exp. 1.02bln). Streaming households 85.5mln (+2mln vs Q2), Streaming hours 32.0bln (+5.3bln Y/Y), ARPU 41.10 on a trailing 12-month basis, flat Y/Y. Exec said advertising outperformed the overall ad and OTT ad market. Guidance: Q4 revenue 1.14bln (exp. 1.11bln). Warns platform may not accelerate from current run rates in 2025.

Comcast (CMCSA) Q3 2024 (USD): Adj. EPS 1.12 (exp. 1.06), Revenue 32.07bln (exp. 31.66bln), Adj. net income 4.337bln (exp. 4.072bln). Q3 Peacock paid subscribers up 29% to 36mln, including net additions of 3mln in the quarter; Q3 domestic broadband customers down by 87k to 32mln.

Sirius XM Holdings (SIRI) Q3 2024 (USD): EPS (exp. 0.77), Revenue 2.17bln (exp. 2.19bln). FY outlook: Adj. EBITDA 1bln, Revenue 8.67bln; reaffirms FY adj. EBITDA and FCF guidance; non-cash impairment charge of USD 3.36bln in the quarter.

CONSUMER DISCRETIONARY

McDonald's (MCD) - CDC said it identified slivered onions on McDonald's Quarter Pounders as the likely source of an E. coli outbreak. Taylor Farms, the onion supplier, has recalled impacted batches from its Colorado facility, and investigations are ongoing at an onion grower in Washington state.

Booking Holdings (BKNG) Q3 2024 (USD): Adj. EPS 83.89 (exp. 77.35), Revenue 7.99bln (exp. 7.63bln); Agency revenue 2.75bln (exp. 2.85bln), Advertising & other revenue 269mln (exp. 270.2mln). Rental car days sold +16.2%, Gross bookings 43.4bln (exp. 41.37bln), Gross agency bookings 15.1bln (exp. 15.72bln), Gross merchant bookings 28.4bln (exp. 25.65bln). Commentary: Exec said room night growth of +8% exceeded prior expectations, driven by stronger performance in Europe, and expects to see a healthy level of room night growth in Q4. Guidance: Q4 revenue +7-9% (exp. 7.0%), Room night growth of +6-8%, Gross bookings growth +7-8%. Is optimistic about the long-term outlook for Asia. Lifts FY24 adj. EPS outlook and now sees up high teens (prev. +15%), lifted FY24 revenue view to just below 10% (prev. at least 7%); raised FY24 gross bookings view to +8% (prev. over 6%).

Starbucks (SBUX) Q4 2024 (USD): Adj. EPS 0.80 (exp. 1.03), Revenue 9.07bln (exp. 9.38bln). Q4 comp sales -7% (exp. -6.2%), North America comps -6%, US comps -6%, International comps -9%, and China comps -14%. Commentary: Is suspending its FY25 guidance in light of its CEO transition and the current state of business. Exec said it saw a Q4 traffic decline, primarily in the afternoons, with decreased frequency across memberships. Efficiency measures improved margins by 250bps in the quarter, saving nearly USD 1bln. It plans fewer store openings and renovations in FY25, but is optimistic about overcoming challenges. It said that non-dairy milk upcharges will be eliminated from November 7th, and confirmed no price hikes will happen through FY25.

eBay (EBAY) Q3 2024 (USD): Adj. EPS 1.19 (exp. 1.18), Revenue 2.58bln (exp. 2.55bln). Active buyers +0.8% Y/Y at 133mln (exp. 132.7mln), GMV +1.7% Y/Y at 18.31bln (exp. 18.1bln). FCF -17% Y/Y at 646mln (exp. 553.8mln). Guidance: Q4 revenue 2.53-2.59bln (exp. 2.6bln), Adj. EPS 1.17-1.22 (exp. 1.22). FY revenue 10.23-10.29bln (exp. 10.32bln).

Etsy (ETSY) Q3 2024 (USD): EPS 0.45 (exp. 0.55), Revenue 662.4mln (exp. 652.8mln), EBITDA 183.6mln (exp. 177mln); announced a new USD 1bln share buyback. Sees Q4 adj. EBITDA margin between 28-29%.

MGM Resorts (MGM) Q3 2024 (USD): Adj. EPS 0.54 (exp. 0.61), Revenue 4.2bln (exp. 4.2bln). Commentary: Exec said the performance was driven by record results from MGM China. In Las Vegas, it saw sequential improvement throughout the quarter, and many key metrics are demonstrating strength including growth in ADR and occupancy. Las Vegas Strip Resorts net revenue 2.1bln (exp. 2.15bln), Regional operations net revenue 952mln (exp. 946.1mln); MGM China net revenue 929mln (exp. 967.1mln).

Toyota Motor (TM) - Toyota and NTT plan to invest JPY 500bln by 2030 to develop an AI platform aimed at reducing traffic accidents. They aim to have a working system ready by 2028, targeting widespread adoption from 2030.

Stellantis (STLA) - Reported lower sales amid its transition. Q3 revenue EUR 33bln (exp. 33.1bln). Exec said it is clear that Chinese rivals are coming into Europe and taking a "very aggressive stance". Affirmed its guidance.

Carvana (CVNA) Q3 2024 (USD): Revenue 3.66bln (exp. 3.45bln), Adj. EBITDA 429mln. Sees Q4 adj. EBITDA at the high end of its USD 1.0-1.2bln range, and sees a sequential increase in Y/Y growth in retail units sold in Q4.

International Paper (IP) Q3 2024 (USD): Adj. EPS 0.44 (exp. 0.26), Revenue 4.69bln (exp. 4.7bln).

Mobileye Global (MBLY) Q3 2024 (USD): EPS 0.10 (exp. 0.10), Revenue 0.486bln (exp. .47bln), adj. net income 78mln (exp. 77mln) FY Revenue view 1.65bln (exp. 1.65bln). Commentary: Near-term growth environment remains challenging; focused on medium and long-term opportunities and expect these becoming more evident in coming months

Li Auto (LI) Q3 (CNY): Revenue 42.9bln (exp. 40.55), deliveries 152,831 (+45.5% Y/Y). Q4 delivery guidance 160-170k units.

Ball (BALL) Q3 2024 (USD): Comparable EPS 0.91 (exp. 0.85), Revenue 3.08bln (exp. 3.13bln). Sees FY24 comparable EPS up mid-single digit plus.

BorgWarner (BWA) Q3 2024 (USD): Adj. EPS 1.09 (exp. 0.92), Revenue 3.45bln (exp. 3.51bln). Guidance: Raised FY24 adj. EPS to 4.15-4.30 (exp. 4.1, prev. 3.95-4.15), lowered FY24 revenue to 14-14.2bln (exp. 14.26bln, prev. 14.1-14.4bln).

Aptiv (APTV) Q3 2024 (USD): Adj. EPS 1.83 (exp. 1.68), Revenue 4.9bln (exp. 5.2bln). Guidance: Cut FY24 adj. EPS to 6.00-6.30 (exp. 6.22, prev. 6.15-6.45), Revenue 19.6-19.9bln (exp. 20.21bln, prev. 20.1-20.4bln).

Hyatt Hotels (H) Q3 2024 (USD): EPS 0.94 (exp. 1.38), Revenue 1.63bln (exp. 1.57bln).

Norwegian Cruise Line (NCLH) Q3 2024 (USD): EPS 0.95 (exp. 0.94), Revenue 2.806bln (exp. 2.77bln).

Camping World Holdings (CWH) - 14.634mln share spot secondary priced at 20.50.

Alibaba (BABA) - Received a positive mention in Barron's; said the stock has soared but it is still cheap enough to buy.

FINANCIALS

Mastercard (MA) Q3 2024 (USD): Adj. EPS 3.89 (exp. 3.74), Revenue 7.4bln (exp. 7.27bln). Q4 net revenue growth was seen in the low teens. Key Metrics: Cross-border volumes: +17% (exp. +16.2%), Purchase volume: 2.06tln (exp. 2.05tln), Gross Dollar Volume: 2.50tln (exp. 2.5tln), Operating expenses: 3.37bln (exp. 3.15bln), Adj. operating expenses: 3.0bln (exp. 3bln).

ING Groep (ING) - Profits and net income were down, but it started a EUR 2bln share buyback. Q3 2024 (EUR): Net Income 1.88bln (exp. 1.69bln), Adj. pretax profit 2.67bln (prev. 2.87bln Y/Y), Revenue 5.91bln (prev. 5.84bln Y/Y), NII 3.69 (exp. 3.83bln). Announces EUR 2bln share buyback, and EUR 500mln cash dividend payment. Guides FY24 Revenue "above 22.5bln" (prev. "around 22bln").

BBVA (BBVA) - Profits rose amid performance in Spain and Mexico; said it would outperform its 2021-2024 goals. Q3 2024 (EUR): Net Income 2.63bln (exp. 2.39bln), NII 5.87bln (exp. 6.17bln).

Coinbase Global (COIN) Q3 2024 (USD): EPS 0.28 (exp. 0.43), Adj. EBITDA 449mln (exp, 448mln), Revenue 1.20bln (exp. 1.25bln). Transaction revenue -27% Q/Q to 573mln, Subscription and services revenue -7% to 556mln due to lower crypto prices. Total operating expenses -6% to 1bln; tech, admin, and marketing expenses +3% to 873mln. Net income 75mln, despite USD 121mln in unrealised crypto investment losses, primarily due to lower prices. In October, authorised USD 1bln share buyback. Guidance: Q4 revenue 505-580mln (exp. 574mln).

Robinhood Markets (HOOD) Q3 2024 (USD): EPS 0.17 (exp. 0.18), Revenue 637mln (exp. 657.9mln). FY24 total operating expenses view 1.86-1.96bln, including a USD 10mln regulatory accrual in Q3.

Intercontinental Exchange (ICE) Q3 2024 (USD): EPS 1.55 (exp. 1.55), Revenue 2.3bln (exp. 2.35bln). Fixed income & data services revenue: 586mln; Mortgage technology revenue: 509mln. Guidance: FY CapEx 700-740mln (prev. 600-650mln); Q4 adj. operating expenses 977-987mln (exp. 967mln).

MetLife (MET) Q3 2024 (USD): Adj. EPS 1.95 (exp. 2.18), Revenue 18.44bln (exp. 18.66bln).

Prudential (PRU) Q3 2024 (USD): Adj. EPS 3.48 (exp. 3.48).

Aflac Incorporated (AFL) Q3 2024 (USD): Adj. EPS 2.16 (exp. 1.68), Revenue 2.90bln (exp. 4.42bln).

Allstate (ALL) Q3 2024 (USD): Adj. EPS 3.91 (exp. 2.47), Revenue 16.6bln (exp. 14.94bln).

Everest Group (EG) Q3 2024 (USD): EPS 11.80 (exp. 11.91), Revenue 4.29bln (exp. 4.1bln); Q3 group combined ratio 93.1%, reinsurance of 91.8%, and insurance of 97.1%.

Arch Capital Group (ACGL) Q3 2024 (USD): Adj. EPS 1.99 (exp. 1.96).

Willis Towers Watson (WTW) Q3 2024 (USD): Adj. EPS 2.93 (exp. 2.71), Revenue 2.23bln (exp. 2.29bln). Guidance: FY24 adj. EPS 16-17 (exp. 16.43), Revenue 9.8bln or greater and mid-single digit organic revenue growth (exp. 9.92bln).

BNP Paribas (BNPQY) - Saw Q3 net income and revenue rise, and confirmed its 2024 trajectory. Q3 2024 (EUR): Revenue 11.9bln (exp. 12.02bln), Net Income 2.86bln (exp. 2.76bln). Affirmed guidance.

SocGen (SCGLY) - Q3 net profit topped expectations, and it is reshuffling its top management. Q3 2024 (EUR): Net Income 1.37bln (exp. 1.27bln), Revenue 6.84bln (exp. 6.57bln). CFO Caire Dumas to step down, effective end-Jan; has tapped Sabadell's Alvear as its new CFO.

Banco de Sabadell (BNDSY) - Saw a record profit in the quarter; appoints Sergio Tome as new CFO. Q3 2024 (USD): Net Income 503mln (exp. 454mln), NII 1.25bln (exp. 1.25bln).

Caixabank (CAIXY) - Income from lending was impacted by lower rates, but it unveiled a EUR 500mln buyback. 9-month (EUR): Net Income 4.25bln (prev. 3.66bln), NII 8.37bln (prev. 7.26bln Y/Y). Announces a EUR 500mln share buyback.

INDUSTRIALS

A P Moller Maersk (AMKBY) - Topped expectations in Q3, and raised its guidance. Q3 2024 (USD): Revenue 15.7bln (exp. 14.78bln), Profit before tax 3.25bln (exp. 2.3bln), EBIT 3.3bln (exp. 2.99bln), EBITDA 4.8bln (exp. 4.4bln), EPS 193.00 (exp. 178.00). Guidance: Raises FY24 guidance; EBITDA 11.0-11.5bln (exp. 10.5bln), EBIT 5.2-5.7bln (exp. 4.8bln), FCF above 3bln (prev. above 2bln). Commentary: Exec said the global container market growth outlook has revised to around +6% (prev. 4-6%); said re-routing south of the Cape of Good Hope remained a significant factor, impacting on bunker consumption and operating costs.

Airbus (EADSY) - Announced succession plans for its commercial aircraft unit; MTU CEO Wagner will join the company; it also reiterated its goal of 770 aircraft deliveries in 2024. Q3 profits were up, and it maintained its guidance.

Siemens (SIEGY), Altair Engineering (ALTR) - Siemens announced it is to acquire Altair Engineering for USD 10.6bln to expand its digital portfolio. The acquisition aims to strengthen Siemens' industrial software sector, enhancing its simulation capabilities and boosting revenue by an estimated 8%. Siemens expects significant cost and revenue synergies.

Spirit Airlines (SAVE) - Plans to furlough 330 pilots and downgrade 120 captains in January to reduce costs amid ongoing losses, Reuters reports. Following its failed JetBlue (JBLU) merger, Spirit will cut capacity by 20% and sell older aircraft, aiming for USD 80mln in savings.

C.H. Robinson (CHRW) Q3 2024 (USD): Adj. EPS 1.28 (exp. 1.14), Revenue 4.6bln (exp. 4.5bln). Exec said results reflect continued improvement in its execution; "We are raising the bar, even in a historically prolonged freight recession, with strong execution and disciplined volume growth across divisions while delivering exceptional service for our customers and carriers."

Eaton (ETN) Q3 2024 (USD): EPS 2.84 (exp. 2.80), Revenue 6.35bln (exp. 6.37bln).

Generac Holdings (GNRC) Q3 2024 (USD): Adj. EPS 2.25 (exp. 1.95), Revenue 1.17bln (exp. 1.16bln). Lifted FY24 revenue growth view to 5-9% (prev. 4-8%).

AMETEK (AME) Q3 2024 (USD): Adj. EPS 1.66 (exp. 1.62), Revenue 1.71bln (exp. 1.71bln). Guidance: Q4 adj. EPS 1.81-1.86 (exp. 1.84); Raised FY24 adj. EPS to 6.77-6.82 (exp. 6.76, prev. 6.70-6.80).

Spirit AeroSystems (SPR) - To furlough about 330 pilots on January 31st, 2025, a spokesperson told Reuters, aiming to cut costs and shore up finances.

Xylem (XYL) Q3 2024 (USD): Adj. EPS 1.11 (exp. 1.11), Revenue 2.1bln (exp. 2.17bln). Guidance: Narrowed 2024 adj. EPS view to 4.22-4.24 (exp. 4.26, prev. 4.18-4.28), Revenue 8.5bln (exp. 8.58bln).

Huntington Ingalls Industries (HII) Q3 2024 (USD): EPS 2.56 (exp. 3.86), Revenue 2.7bln (exp. 2.87bln). Guidance: Cut FY24 shipbuilding revenue view to ~ 8.8bln (prev. 8.8-9.1bln), Mission technologies revenue 2.75-2.80bln (prev. 2.8-2.85bln).

Parker-Hannifin (PH) Q1 2025 (USD): EPS 6.30 (exp. 6.14), Revenue 4.9bln (exp. 4.9bln). Guidance: FY25 adj. EPS 26.35-27.05 (prev. 26.30-27.00, exp. 26.88).

Quanta Services (PWR) Q3 2024 (USD): Q3 adj. EPS 2.72 (exp. 2.69), Revenue 6.48bln (exp. 6.57bln). Guidance: Narrowed FY24 adj. EPS 8.50-8.80 (exp. 8.63, prev. 8.32-8.87), Revenue 23.5-23.9bln (exp. 23.84bln, prev. 23.5-24.1bln).

WW Grainger (GWW) Q3 2024 (USD): EPS 9.87 (exp. 9.97), Revenue 4.39bln (exp. 4.40bln). Guidance: Narrowed 2024 EPS view to 38.65-39.35 (exp. 38.71, prev. 38.00-39.50), Revenue 17.1-17.3bln (exp. 17.21bln, prev. 17.0-17.3bln).

HEALTHCARE

Merck & Co Inc (MRK) Q3 2024 (USD): adj. EPS 1.57 (exp. 1.50), Revenue 16.66bln (exp. 16.46bln); lowered EPS outlook, Adj. R&D expense 5.8bln (exp. 5.04bln). Guidance: FY EPS view 7.72-7.77 (exp. 7.74; prev. 7.94-8.04), Revenue 63.6-64.1bln (exp. 64.11bln). Revenue breakdown: Keytruda 7.43bln (exp. 7.32bln); Gardasil 2.31bln (exp. 2.48bln); Animal 1.49bln (exp. 1.47bln).

Bristol-Myers Squibb (BMY) Q3 2024 (USD): Adj. EPS 1.80 (exp. 1.49), Revenue 11.89bln (exp. 11.28bln). Guidance: Raises FY adj. EPS to 0.75-0.95 (exp. 0.71, prev. prev. 0.60-90). Drug revenue breakdown: Eliquis 3.00bln (exp. 2.85bln), Opdivo 2.36bln (exp. 2.39bln), Revlimid 1.41bln (exp. 1.03bln), Orencia 936mln (exp. 937mln), Pomalyst/Imnovid 898mln (exp. 866.3mln), Yervoy 642mln (exp. 609.5mln).

Amgen (AMGN) Q3 2024 (USD): Adj. EPS 5.58 (exp. 5.11), Revenue 8.50bln (exp. 8.52bln). Guidance: FY adj. EPS 19.20-20.00 (prev. 19.10-20.10, exp. 19.48), Revenue 33.0-33.8bln (prev. saw 32.8-33.8bln, exp. 33.2bln); still sees FY CapEx at about USD 1.3bln (exp. 1.2bln), and still sees share buybacks of up to USD 500mln.

Eisai (ESAIY), Biogen (BIIB) - Eisai and Biogen reported that lecanemab, an Alzheimer's treatment, showed significant cognitive improvement over three years, with a 30% reduced progression risk. Findings suggest earlier treatment may positively affect disease progression in early Alzheimer’s patients.

Cigna Group (CI) Q3 2024 (USD): EPS 7.51 (exp. 7.20), Revenue 63.69bln (exp. 59.35bln). Guidance: FY EPS view of at least 28.40 (exp. 28.50).

Regeneron Pharmaceuticals (REGN) Q3 2024 (USD): EPS 12.46 (exp. 11.69), Revenue 3.72bln (exp. 3.67bln). Dupixent global net sales (recorded by Sanofi) increased 23% Y/Y to 3.82bln; US net sales for EYLEA HD and EYLEA increased 3% Y/Y to 1.54bln, including 392mln from EYLEA HD.

Roche (RHHBY) - New England Journal of Medicine publishes landmark phase III results for Roche’s Itovebi, showing more than doubling of progression-free survival in certain types of HR-positive advanced breast cancer.

IDEXX Laboratories (IDXX) Q3 2024 (USD): EPS 2.80 (exp. 2.68), revenue 976mln (exp. 979mln). Guidance: Reduced 2024 EPS to 10.37-10.53 (exp. 10.56, prev. 10.31-10.59), Revenue 3.865-3.890bln (exp. 3.92bln, prev. 3.885-3.945bln).

Teleflex (TFX) Q3 2024 (USD): Adj. EPS 3.49 (exp. 3.39), revenue 764mln (exp. 770mln). Guidance: Narrowed 2024 adj. EPS view to 13.90-14.20 (exp. 13.97, prev. 13.80-14.20).

IQVIA Holdings (IQV) Q3 2024 (USD): EPS 2.84 (exp. 2.81), Revenue 3.9bln (exp. 3.86bln).

Harmony Biosciences (HRMY) - 8mln share secondary priced at USD 31.

ENERGY

ConocoPhillips (COP) Q3 2024 (USD): adj. EPS 1.78 (exp. 1.64), adj. net income 2.1bln (exp. 1.95bln); boosts share buyback by USD 20bln. Q3 production 1.917mln BOED. Guidance: Sees Q4 production between 1.99-2.03mln BOED, FY production seen between 1.94-1.95mln BOED; Still sees Marathon (MPC) merger closing this quarter; Still expects to significantly exceed initial USD 500mln synergy guidance.

Shell (SHEL) - Profits topped expectations in the quarter as gas markets offset weak refining, and it started a USD 3.5bln share buyback programme. Q3 adj. profit USD 6.03bln (exp. 5.39bln), Q3 adj. EBITDA USD 16bln (exp. 15.40bln); plans a share buyback programme of USD 3.5bln.

TotalEnergies (TTE) - Saw Q3 income fall amid a decline in its refining margins. It reported Q3 adj. net income USD 4.07bln (exp. 4.27bln), adj. EBITDA USD 10bln (exp. 10.1bln). Confirmed investment guidance for 2024. Announced an interim dividend of EUR 0.79/shr for the FY. It also announced its first oil from the third development phase of the Mero field on Lubra block Brazil offshore.

Exxon Mobil (XOM) - Exxon has agreed to sell its oil and gas assets in Argentina's Vaca Muerta formation, including five blocks and a stake in pipeline operator Oldelval, to Pluspetrol, Reuters reports. Details of the deal’s value and finalisation timeline were undisclosed.

Marathon Petroleum (MPC) - Marathon raises its quarterly dividend +10% to 0.91/shr.

Transocean (RIG) - Q3 adj. EPS 0.00 (exp. -0.04), Q3 revenue USD 948mln (exp. 943.8mln). Reports a backlog of nearly USD 1.3bln booked in Q3; with these awards, more than 97% of Transocean's active fleet is contracted in 2025.

Repsol (REPYY) - Q3 EBITDA EUR 1.42bln (exp. 1.73bln); said an interim dividend will be paid in January, of EUR 0.475/shr.

Marathon Oil Corp (MRO) - Announced upcoming layoffs of more than 500 workers in Texas, according to a filing from the Texas Workforce Commission.

REAL ESTATE

Equinix (EQIX) Q3 2024 (USD): AFFO/shr 9.05 (exp. 8.70), EPS 3.10 (exp. 2.93), Revenue 2.2bln (exp. 2.2bln). Exec sees continued robust demand for AI-enabling digital infrastructure from a highly diverse set of customers. Guidance: FY24 AFFO/shr 34.81-35.22 (exp. 35.10), Revenue 8.748-8.788bln (exp. 8.75bln).

Equity Residential (EQR) Q3 2024 (USD): Normalised FFO/shr 0.98 (exp. 0.98), Revenue 748.35mln (exp. 742.9mln), Q3 same store revenue +2.7% Y/Y. Exec said the business continues to benefit from high employment levels among its well-earning resident base, wage growth across the economy and limited home ownership and rental options in most of its markets. Guidance: Q4 normalised FFO/shr 0.98-1.02 (exp. 1.00).

Invitation Homes (INVH) Q3 2024 (USD): Core FFO/shr 0.47 (exp. 0.46), Revenue 660mln (exp. 659.5mln); Q3 same store NOI +3.9% Y/Y. Raised FY24 Core FFO/shr and AFFO/shr outlook by a penny at the midpoint to USD 1.88 and USD 1.59 respectively.

UDR (UDR) Q3 2024 (USD): AFFO 0.54 (exp. 0.62), Revenue 420mln (exp. 417mln). Raised FY24 AFFO to 2.21-2.23 (exp. 2.47, prev. 2.16-2.24), and sees Q4 AFFO at 0.56-0.58 (exp. 0.62).

Mid-America Apartment Communities (MAA) Q3 2024 (USD): Core FFO 2.21 (exp. 2.08), narrowed core FFO view to 8.80-8.96 (exp. 8.88, prev. 8.74-9.02), and sees Q4 core FFO of 2.15-2.31 (exp. 2.25).

Ventas (VTR) Q3 2024 (USD): Normalised FFO 0.80 (exp. 0.80), Revenue 1.24bln (exp. 1.21bln). Narrowed FY24 normalised FFO view to 3.14-3.18 (exp. 3.18, prev. 3.12-3.18).

Federal Realty Investment Trust (FRT) Q3 2024 (USD): FFO 1.71 (exp. 1.72), Revenue 304mln (exp. 301mln), confined its 2024 FFO view to 6.76-6.86 (exp. 6.81, prev. 6.70-6.88).

Kimco Realty (KIM) Q3 2024 (USD): FFO 0.43 (exp. 0.41), Revenue 508mln (exp. 498mln). Raised 2024 FFO view to 1.64-1.65 (exp. 1.62, prev. 1.60-1.62).

CONSUMER STAPLES

Estee Lauder Companies Inc (EL) Q3 2024 (USD): EPS 0.14 (exp. 0.09), Revenue 3.36bln (exp. 3.37bln). Withdrawing FY25 outlook & cutting quarterly dividend by 47% to 0.35%.

Clorox (CLX) - Q1 adj. EPS 1.86 (exp. 1.39), Q1 revenue USD 1.76bln (exp. 1.65bln). Lifts FY25 adj. EPS outlook to between 6.65-6.90 (exp. 6.65; prev. saw 6.55-6.80), and expects FY25 net sales to be flat to down 2%; organic sales seen up +3-5% (ex- about 2 points of negative impact from its divestiture of Argentina business, and about 3 points of negative impact from divestiture of the Better Health VMS business).

Kellanova (K) Q3 2024 (USD): Adj. EPS 0.91 (exp. 0.85), Revenue 3.233bln (exp. 3.16bln).

Altria Group Inc (MO) Q3 2024 (USD): Adj. EPS 1.38 (exp. 1.35), Revenue 6.259bln (exp. 5.33bln).

PepsiCo (PEP) - Is overhauling some of its top brands, such as Lay's potato chips as shoppers look for cheaper options, and is increasingly sharing data with major retailers and in return getting coveted information on shoppers' purchases, a PepsiCo executive said in an interview this week.

Carlsberg (CABGY) - In its Q3 update, it reported revenue of DKK 20.5bln, +0.9%; Beer sales volume 28.7mln/HL. Noted lower volumes in China, France and the UK, which impacted overall group performance. Added that weather and consumer environment also impacted. Earnings expectations were maintained.

UTILITIES

American Water Works Company (AWK) Q3 2024 (USD): EPS 1.80 (exp. 1.84), revenue 1.32bln (exp. 1.23bln). Guidance: Maintained FY24 EPS of 5.25-5.30 (exp. 5.26), FY25 EPS 5.65-5.75 (exp. 5.69).

Xcel Energy (XEL) Q3 2024 (USD): Ongoing EPS 1.25 (exp. 1.26), Revenue 3.64bln (exp. 3.93bln).

CMS Energy (CMS) Q3 2024 (USD): Adj. EPS 0.84 (exp. 0.78), Revenue 1.74bln (exp. 1.88bln). Guidance: FY24 adj. EPS 3.52-3.58 (exp. 3.59).

Entergy (ETR) Q3 2024 (USD): Adj. EPS 2.99 (exp. 2.97). Narrowed FY24 adj. EPS view to 7.15-7.35 (exp. 7.21, prev. 7.05-7.35), and announced a two-for-one forward stock split.

WEC Energy (WEC) Q3 2024 (USD): Adj. EPS 0.82 (exp. 0.70), revenue 1.86bln (exp. 1.93bln). Affirmed FY24 adj. EPS view of 4.80-4.90 (exp. 4.86).

The Southern Company (SO) Q3 2024 (USD): Adj. EPS 1.43 (exp. 1.34), revenue 7.27bln (exp. 7.29bln). Sees FY24 adj. EPS at 4.05 (exp. 4.03, prev. 3.95-4.05).

MATERIALS

CF Industries (CF) - Q3 EPS 1.55 (exp. 1.18), Q3 revenue USD 1.37bln (exp. 1.3bln); Q3 average selling prices were higher Y/Y primarily due to higher average selling prices for ammonia from lower global supply availability due in part to lower natural gas availability in Trinidad and Egypt. Q3 sales volumes were similar Y/Y as higher ammonia sales volumes due primarily to the addition of contractual commitments served from the recently acquired Waggaman ammonia production facility were offset primarily by lower UAN sales volumes. Gross ammonia production for the first nine months and Q3 were approximately 7.2mln and 2.4mln tons, respectively, (prev. 7.0mln and 2.2mln). Expects gross ammonia production for FY24 to be approximately 9.8mln tons.

Linde (LIN GY) Q3 (USD): adj. EPS 3.94 (exp. 3.89) adj. EBIT 2.5bln (exp. 2.43bln), revenue 8.4bln (exp. 8.34bln); cuts top end. CEO says "as expected weak economic trends persisted through Q3, most notably in industrial markets

31 Oct 2024 - 13:16- Data- Source: Newsquawk

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