US EARLY MORNING: Futures inch higher and reside around Tuesday's peak with Fed speak & Q3 PCE due

FINANCIALS:

• 
  Berkshire Hathaway (BRK.B) - Charlie Munger, vice-chair of Berkshire Hathaway and investment partner of Warren Buffett, died aged 99 on Tuesday in California.


• 
  Goldman Sachs (GS), Apple (AAPL) - Apple seeks to terminate its partnership with Goldman Sachs earlier, offering a 12-15 month exit option, contingent on finding replacements for their credit card and savings services, FT reports. Separately, Bernstein’s analysts cite multiple third party data which indicate that Apple's iPhone is losing share to Huawei.

TECH:

• 
  Alphabet (GOOG) - The Verge reports that Alphabet's YouTube is offering Premium users access to online games dubbed "Playables" directly within its app without downloads, as it makes a modest push into the world of gaming. YouTube also announced that for a limited time, eligible Premium members can try out new features that it is working on, including AI experiments.


• 
  Crowdstrike (CRWD) - Q3 EPS 0.82 (exp. 0.74), Q3 revenue USD 786mln (exp. 777.1mln), Q3 net new ARR growth accelerated to a record USD 223mln, ending ARR +35% Y/Y surpassing USD 3bln, Q3 adj. subscription gross margin 80% (vs 78% Y/Y). Sees Q4 EPS between 0.81-0.82 (exp. 0.78), and sees Q4 revenue between USD 836.6-840mln (exp. 836.7mln). Boosts FY24 EPS outlook to 2.95-2.96 (exp. 2.83, prev. 2.80-2.84), and boosts FY24 revenue outlook to between 3.047-3.050bln (exp. 3.04bln, prev. 3.03-3.04bln).


• 
  Uber (UBER) - Uber aims to reintroduce London black-cab drivers to its fleet, inviting their registration for a new taxi service despite past opposition, FT reports. Plans to launch in 2024. Uber seeks "several hundred" drivers for the service.


• 
  Splunk (SPLK), Cisco (CSCO) - Splunk reported Q3 EPS 0.55 (vs -0.20 Y/Y), Q3 revenue USD 1.067bln (exp. 1.03bln).


• 
  Taiwan Semiconductor Manufacturing Company (TSM) - TSMC picked as Bernstein's Best Idea for 2024, raises PT to USD 125 from 113 with an outperform raring.


• 
  Hewlett Packard Enterprise (HPE) - Q4 EPS 0.52 (exp. 0.50), Q4 revenue USD 7.35bln (exp. 7.36bln). Q4 Compute revenues -30% to USD 2.59bln (exp. 2.727bln), Q4 Intelligent Edge revenues +40% to USD 1.35bln (exp. 1.47bln), Q4 Storage sales -12% to USD 1.11bln (exp. 1.164bln), Q4 HPC/AI revenue +38% to USD 1.18bln (exp. 0.92bln). Boosts quarterly dividend to 0.13/shr (prev. 0.12). Sees Q1 2024 Adj. EPS  USD 0.42-0.50 (exp. 0.46), and sees Q1 2024 net revenue USD 6.9bln-7.3bln (exp. 7.27bln). Reaffirms FY24 adj. EPS view at USD 1.82-2.02 (exp. 1.93), reaffirms FY24 revenue adj. for currency growth view of 2-4%, and reaffirms FY24 free cash flow view of USD 1.9bln-2.1bln (exp. 2.07bln).


• 
  NetApp Inc (NTAP) - Q2 adj. EPS 1.58 (exp. 1.39), Q2 revenue USD 1.56bln (exp. 1.53bln), Q2 gross margin 72% (exp. 70.1%). Q2 NetApp Public Cloud ARR USD 609mln (exp. 640mln). Sees Q3 adj. EPS between 1.64-1.74 (exp. 1.53), and sees Q3 revenue between USD 1.51-1.67bln (exp. 1.56bln). Boosts FY24 EPS view to 6.05-6.25 (prev. 5.65-5.85, exp. 5.73).


• 
  Intuit Inc (INTU) - Q1 adj. EPS 2.47 (exp. 1.98), Q1 revenue USD 2.98bln (exp. 2.88bln). Small Business/Self-Employed revenue +18% to USD 2.344bln (exp. 2.3bln). Sees Q2 adj. EPS USD 2.25-2.31 (exp. 2.56), and sees Q2 revenue growth of +11-12% Y/Y. Reaffirms FY EPS guidance of between USD 16.17-16.47 (exp. 16.39), and reaffirms FY revenue guidance of between USD 15.89bln-16.11bln (exp. 16.02bln).


• 
  OpenAI, Microsoft (MSFT) - OpenAI plans to exclude Microsoft, Khosla Ventures, and Thrive Capital from its new board despite recent turmoil, Reuters reports.


• 
  Unity Software (U) - Said it was committed to a plan to close corporate offices in around 14 locations, said substantial costs were expected to be incurred in Q4 2023 and Q1 2024.


• 
  Workday (WDAY) - Q2 adj. EPS 1.53 (exp. 1.41), Q2 revenue USD 1.87bln (exp. 1.85bln), Q2 subscription revenue backlog +30.9% at USD 18.45bln (exp. 17.837bln). Exec said momentum across its business is "palpable." Sees FY subscription revenue at USD 6.60bln (exp. 6.57-6.59bln).


• 
  Jabil (JBL) - Lowers outlook; sees Q1 revenue between USD 8.3-8.4bln (prev. saw between 8.4-9bln, exp. 8.74bln), sees FY core EPS above 9.00 (exp. 9.59). Said that during the final stretch of Q1, it experienced a softening in demand as a result of short-term inventory corrections. Sees Q2 revenue between USD 7-7.6bln (exp. 8.1bln), and sees FY revenue roughly around USD 31bln (exp. 33.7bln).

HEALTHCARE:

• 
  UnitedHealth (UNH) - Reaffirms FY23 EPS outlook between USD 24.85-25.00 (exp. 24.95). Guides initial FY24 EPS between 27.50-28.00 (exp. 27.91), and guides FY24 revenue between USD 400-403bln (exp. 393.7bln). UNH will host an analyst meeting on Wednesday.


• 
  Amgen (AMGN) - Amgen's treatment of biliary tract cancers was granted orphan status by the FDA.


• 
  Arvinas (ARVN), Pfizer (PFE) - Arvinas and Pfizer will present updated trial data for vepdegestrant (ARV-471) at the 2023 San Antonio Breast Cancer Symposium. The data includes Phase 1b combination study and Phase 2 monotherapy results for ER+/HER2- breast cancer treatment.

ENERGY:

• 
  Energy Inventories - API data reportedly showed US crude stocks drawing by -0.8mln (exp. -0.9mln), Cushing drawing by -0.5mln, gasoline stocks drawing by -0.9mln (exp. +0.2mln), and distillate inventories building by +2.8mln (exp. +0.4mln).


• 
  TotalEnergies (TTE) - Acquires minority stake in Xlinks Morcoo-UK power plant.

INDUSTRIALS:

• 
  Boeing (BA) - Awarded USD 2.3bln for additional US Air Force contract for KC-46A tankers.


• 
  Ferrovial (FRRVY) - Ferrovial to sell its 25% Heathrow stake for GBP 2.37bln to Ardian (15% stake) and Saudi Arabia's PIF (10% stake), Reuters reports.


• 
  Textron (TXT) - Textron announced that it would reduce its global workforce by 2%; cites lower demand, and anticipates pre-tax charges of between USD 115-135mln, with cost savings of USD 75mln annually after completion by H1 2024.


• 
  AP Moller Maersk AS (AMKBY) - Said it does not anticipate any impact of low water levels on its ability to load contracted volumes on all services.

MATERIALS:

• 
  Copper - A strike at Peru's Las Bambas copper will conclude on Thursday at 5:30am local time, after the labour authority declared the strike improper, Reuters reports.


• 
  Dow Inc. (DOW) - CEO told CNBC that China is still strong for the company, and was coming back. Q3 saw a third straight quarter of volume increases. Adds that DOW's dividend is safe, balance sheet is the best it has been for some time.


• 
  Norsk Hydro (NHYDY) - Guides up to NOK 2bln greener earnings uplift by 2030. Is updating 2024 and medium-term CAPEX, guides to NOK 15bln Y/Y from currency, inflation and 2023 carry-over. Aims to distribute 50-60% of adjusted net income to shareholders in 2023.


• 
  Holcim (HCMLY) - Enters three-year global strategic partnership with International Union for the Conservation of Nature.

CONSUMER:

• 
  Farfetch (FTCH) - Farfetch will not report earnings BMO on Wednesday, as scheduled, sttaing that it will provide a market update in due course. The announcement follows reports that founder Jose Neves plans to privatise the company, and has had discussions with major shareholders, including Richemont; an announcement expected soon.


• 
  Las Vegas Sands (LVS) - To offer a USD 2bln common stock; shares slipped 5% afterhours on the news.


• 
  McCormick (MKC) - McCormick raises quarterly dividend +0.03 taking it to 0.42/shr.


• 
  Toyota (TM) - Plans December-February global production rise +10% Y/Y, according to Mid-Japan Economist.

29 Nov 2023 - 09:30- Research Sheet- Source: Newsquawk