US EARLY MORNING: US index futures are bouncing higher after Monday's drubbing

US equity futures are seeing some reprieve after the recent downside, which saw the S&P 500 slip beneath the 4,000 level for the first time in over a year. Index futures are currently higher by 0.9-1.7% (NQ +1.7%, RTY +1.1%, ES +1.0%, YM +0.9%), while Treasury yields are narrowing by 2-9bps, with the rally most pronounced in the long-end; major curve are narrowing. Amid the drubbing yesterday, JPMorgan told its clients that it remains pro-risk, with overweight positions in equities and commodities, and underweight positions in bonds and cash. "The past week’s sell-off appears overdone, and driven to a large extent by technical flows, fear, and poor market liquidity, rather than fundamental developments," the bank wrote, "while we expect growth to soften, we continue to push back on a base case assumption that the global economy is headed for recession, an outcome that is increasingly being priced by markets." JPM, which has been expressing its bullish thesis for some time now, says its constructive view is premised on COVID reopening, policy easing in China, strong labour markets, light positioning, distraught investor sentiment, and healthy consumer and corporate balance sheets. It has also argued that we have reached "peak hawkishness" on monetary policy, where the Fed is leaning back on calls to move rates up by 75bps increments. JPM prefers overweighting Emerging Markets stocks vs Developed Markets stocks, is underpinned by its view of policy easing and an eventual COVID reopening in China, as well as cheap valuations. It is also strategically overweight of commodities and energy stocks, premised on its views of a commodity super cycle, as well as geopolitical risks, while the bank says energy stocks are discounting long-term oil prices well below spot prices.

KEY EQUITY LEVELS (per Credit Suisse):

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  SPX: 3984/81, 3993, 4014, 4026/21, 4034/31, 4158, 4174/75, 4199, 4210, 4237/41.


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  NDX: 11878, 11980, 12090/45, 12208/193, 12299, 12805, 12927/82, 13267, 13345, 13542/56.


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  RUT: 1747/42, 1755, 1764, 1787/85, 1805, 1852, 1868/79, 1895/96, 1914, 1936.

TECH:

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  3D Systems Corporation (DDD) - Fell by over 10% after it cut Q2 guidance. Q1 EPS -0.06 (exp. 0.00), Q1 revenue USD 133mln (exp. 132.7mln). Sees FY22 revenue between USD 580-625 (exp. 596mln, prev. 570-630mln).


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  Dun & Bradstreet Holdings, Inc. (DNB) - Q1 adj. EPS 0.24 (exp. 0.23), Q1 revenue USD 536mln (exp. 537.3mln). Sees FY22 adj. EPS between USD 1.13-1.20 (exp. 1.15), and sees FY22 adj. revenue between USD 2.27-2.315bln (exp. 2.3bln).


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  EverCommerce Inc. (EVCM) - Q1 EPS -0.07 (exp. 0.05), Q1 revenue USD 143.6mln (exp. 141mln).


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  JFrog Ltd. (FROG) - Rose 7.1% after hours. Q1 adj. EPS 0.00 (exp. 0.00), Q1 revenue USD 63.7mln (exp. 61.2mln). Sees Q2 adj. EPS between -4c to -3c (exp. -1c), and sees Q2 revenue between 65-66mln (exp. 65mln). Sees FY22 adj. EPS between -1c and +1c (exp. -0.01), and sees FY22 revenue between USD 276.5-278.5mln (exp. 273mln).


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  Microchip Technology Incorporated (MCHP) - Rose 2.6% after hours. Q4 EPS 1.35 (exp. 1.25), Q4 revenue USD 1.84bln (exp. 1.82bln). Boosts quarterly dividend +9.1% to 0.276/shr. Sees Q1 EPS between 1.32-1.36 (exp. 1.28), and sees Q1 revenue between USD 1.918-1.992bln (exp. 1.86bln). Exec said business conditions remained very strong in the March quarter with high levels of bookings and record backlog for product to be shipped over multiple quarters. Demand outpaced the capacity in Q1, resulting in backlogs continuing to climb and lead times remaining stretched. Expects to remain supply-constrained throughout 2022 and into 2023.


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  Microsoft Corp. (MSFT) - The tech giant will help cover the costs of employees having to travel to get abortions or gender-affirming care, a response to looming new restrictions in states around the US, Bloomberg reported.


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  Renishaw (RNSHY) - Lowered its FY profit view due to global uncertainties. 9-month revenue GBP 492.4mln (prev. 407.4mln Y/Y), pretax GBP 124mln (prev. 84.4mln).


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  RingCentral, Inc. (RNG) - Gained 3.4% after hours. Q1 EPS 0.39 (exp. 0.34), Q1 revenue USD 467.7mln (exp. 458.7mln). Subscriptions revenue +35% Y/Y to USD 440mln, ARR +35% Y/Y to USD 1.9bln. Lifts FY22 EPS guide to USD 1.83-1.87 (exp. 1.71), and raises FY22 subscriptions revenue range to USD 1.882-1.898bln (prev. 1.87-1.89bln). FY22 adj. EPS seen at 1.83-1.87 (prev. 1.69-1.72). Names Sonalee Parekh CFO.


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  Siltronic (SLTCY) - Confirms guidance after Q1 sales growth. Q1 revenue EUR 417mln (prev. 376.6mln Y/Y). EBITDA EUR 186mln (prev. 143.7mln).


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  Sony (SONY) - Operating profits more than doubled. FY21/22 Net Profit JPY 882.18bln, -14.3%; Operating Profit JPY 1.2tln, +25.9%, Pretax Profit JPY 1.12tln, +12%. To buy back up to 2.02% of shares, worth JPY 200bln. Nikkei reported that it has partially resumed production at Shanghai plant.


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  TaskUs, Inc. (TASK) - Fell 5.7% after hours. Q1 adj. EPS 0.34 (exp. 0.32), Q1 revenue USD 239.7mln (exp. 230.8mln). Sees Q2 revenue between USD 241.5-243.5mln (exp. 239.4mln), and reaffirms FY22 revenue guidance between USD 980-1.0bln (exp. 993mln).


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  Veeco Instruments Inc. (VECO) - Q1 EPS 0.38 (exp. 0.35), Q1 revenue USD 156.4mln (exp. 155.6mln). Sees Q2 EPS between 0.22-0.34 (exp. 0.39).

INDUSTRIALS:

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  Airbus (EADSY) - Reported 48 deliveries to 33 customers in April, with 190 deliveries to 54 customers YTD.


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  Blink Charging Co. (BLNK) - Q1 EPS -0.36 (exp. -0.41), Q1 revenue USD 9.8mln (exp. 6.9mln).


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  Boeing (BA), Deutsche Lufthansa (DLAKY) - Deutsche Lufthansa to buy seven Boeing 787-9 aircraft, three 777F freighters, seven 777-8F freighters.


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  Ferrovial (FRRVY) - Lifts Heathrow 2022 forecasts from 45.5mln passengers to 53mln passengers.


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  Fraport (FPRUY) - Revenue tops expectations but profits short, leaves guide unchanged. Q1 revenue EUR 474.4mln (prev. 385mln Y/Y). EBITDA EUR 70.7mln (prev. 40.2mln). Affirms FY revenue, net, and traffic guidance.


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  Geely (GELYY), Renault (RNLSY) - Geely to buy 34.02% stake in Renault's Korean unit for around KRW 264bln.


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  Helios Technologies, Inc. (HLIO) - Q1 adj. EPS 1.18 (exp. 0.96), Q1 revenue USD 240.5mln (exp. 221mln). Reiterates FY22 EPS guidance between 4.35-4.60 (exp. 4.46), and FY22 revenue view between USD 930-950mln (exp. 941mln). To acquire Taimi, no terms.


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  Plug Power Inc. (PLUG) - Tumbled around 10% after hours. Q1 EPS -0.27 (exp. -0.16), Q1 revenue USD 140.8mln (exp. 145mln). Reminds investors that historically its H1 typically represents 30% of FY revenue, H2usually represents around 70%; expects this seasonality to continue into 2022. Remains focused on delivering previously announced costs reduction targets; seeing meaningful improvement in service margins, a result of the enhanced technology GenDrive units that were delivered in 2021 which reduce service costs by 50%. Reaffirms its 2025 targets.


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  Tesla (TSLA) - China’s CPCA said 1.062mln passenger cars were sold in April, -35.7% Y/Y. Tesla produced 10,757 Chinese-made vehicles in April (vs. 65,814 in March); it exported zero vehicles from China in April.


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  Trex Company, Inc. (TREX) - Gained 2.8% after hours. Q1 EPS 0.62 (exp. 0.54), Q1 revenue USD 339mln (exp. 326.9mln). Exec said 2022 was off to a strong start, and homeowners were continuing to invest in existing residences and pursue renovations. Price increases to address inflationary pressures were absorbed by the market and also benefitted TREX' net sales. Sees Q2 revenue between USD 375-385mln (exp. 377mln). Reiterates FY22 revenue growth view of double-digits (exp. 1.38bln).


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  Upstart Holdings, Inc. (UPST) - Lost almost half of its market cap in after hours trade on weak guidance. Q1 adj. EPS 0.61 (exp. 0.51), Q1 revenue USD 310mln (exp. 300mln). Sees Q2 revenue between USD 295-305mln (exp. 334.8mln). Cuts FY view, sees FY22 revenue at USD 1.25bln (exp. 1.4bln).


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  Verra Mobility Corporation (VRRM) - Q1 adj. EPS 0.20 (exp. 0.20), Q1 revenue USD 170.4mln (exp. 164.8mln). Sees FY22 revenue at high end of USD 694-715mln (exp. 707.1mln). Announces a USD 125mln share buyback programme.


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  XPO Logistics, Inc. (XPO) - Q1 EPS USD 1.25 (exp. 0.93), Q1 revenue USD 3.47bln (exp. 3.22bln). Sees FY22 EPS between 5.20-5.60 (exp. 5.19). Announces Drew Wilkerson as CEO for spin-off of its tech-enabled brokered services platform.

COMMUNICATIONS:

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  AMC Entertainment Holdings, Inc. (AMC) - Rose 2.4% after hours. Q1 adj. EPS -0.52 (exp. -0.63), Q1 revenue USD 785.7mln (exp. 743.4mln). Exec said the pandemic recovery trajectory continued, and Q1 was the strongest in two years.


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  Angi Inc. (ANGI) - Q1 EPS -0.07 (exp. -0.06), Q1 revenue USD 436.2mln (exp. 433.4mln). Q1 Angi Services growth +107% to USD 113M, due to the acquisition of Angi Roofing. Monetised Transactions were nearly 4mln in Q1, nearly 18mln TTM; ended Q1 with over 260k members, up over three times Y/Y.


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  CarGurus, Inc. (CARG) - Tumbled 12.7% on weak Q2 guidance. Q1 adj. EPS 0.36 (exp. 0.35), Q1 revenue USD 430.6mln (exp. 403.1mln). Sees Q2 adj. EPS between 0.26-0.29 (exp. 0.38), and sees Q2 revenue between USD 480-510mln (exp. 452.6mln).


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  Groupon, Inc. (GRPN) - Lost 14% after hours on a generally weak earnings report. Q1 EPS -0.80 (exp. -0.52), Q1 revenue USD 153.3mln (exp. 165.8mln). Q1 North America active customers 14.0mln, down 8% Y/Y. Q1 international active customers 8.2mln, -23% Y/Y. Sees FY22 revenue between 670-700mln (exp. 837mln).


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  InterActiveCorp (IAC) - Fell 3.6%. Q1 EPS -2.72 (exp. -0.75), Q1 revenue USD 1.33bln (exp. 1.31bln). Revenue supported by its Dotdash segment. Exec noted drop in valuations has been steep and swift, but unlike the pandemic beginning, this time the market reaction is driven by an appropriate resetting in valuation frameworks rather than an exogenous 'black swan' event, and there is no "shot-in-the-arm" this time. Exec said IAC expects stepped-down valuations to last for a while for companies like IAC. Exec said the opportunities for investment dollars are better now than they’ve been in a very long time. Adding that if current valuation framework persists, companies will eventually accept the new valuation reality, and IAC will have opportunities.


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  KKR & Co Inc (KKR), Telecom Italia (TIIAY) - KKR reportedly expressed reservations on Telecom Italia's plans to merge networks business with state-backed OpenFibre.


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  Match Group, Inc. (MTCH), Alphabet (GOOG) - Match sued Google over alleged "strategic manipulation of markets, broken promises, and abuse of power in requiring Match Group to use Google's billing system to remain in the Google Play Store."


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  Nintendo (NTDOY) - Sold 4.11mln Switch units in Q1, bringing its FY total -20% Y/Y to 23.06mln (vs forecast of 23mln) million; shortages of semis and other components blamed. FY21/22 Net Profit JPY 477.7bln, -0.6%; Operating Profit JPY 592.7bln, -7.5%; Recurring Profit JPY 670.8bln, -1.2%. Forecasts Switch hardware sales of 21mln units for the FY. Announces a ten-for-one stock split.


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  Zynga Inc. (ZNGA) - Q1 EPS -0.02 (exp. 0.09), Q1 revenue USD 691mln (exp. 745mln). Exec said it started 2022 with a strong quarterly performance, achieving record Q1 advertising revenue and bookings.

HEALTHCARE:

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  Bayer (BAYRY) - Net profits rose underpinned by strong farming business. Q1 revenue EUR 14.6bln (exp. 13.66bln), Q1 adj. EBITDA EUR 5.25bln (exp. 4.55bln). Core EPS 3.53 (exp. 2.95). Said it is not negatively impacted by the Ukraine war. Confirms outlook for 2022, is confident about the FY despite uncertainty.


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  Clover Health Investments, Corp. (CLOV) - Q1 revenue USD 874.4mln (exp. 787.4mln), Q1 net loss USD 75.3mln (prev. 48.4mln Y/Y). Exec said 2022 was off to a strong start, led by significant Y/Y revenue growth and Q/Q margin improvement in Insurance and Non-Insurance. Backs FY22 revenue view of between USD 3.0-3.4bln (exp. 3.2bln), said it was cautiously optimistic about the remainder of 2022.


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  CRISPR Therapeutics AG (CRSP) - Q1 EPS -2.32 (exp. -1.94), Q1 revenue 0.94mln (exp. 2.76mln).


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  GoodRx Holdings, Inc. (GDRX) - Fell over 30% after the bell as it said it would miss guidance for the FY and was withdrawing FY guidance. Q1 adj. EPS 0.10 (exp. 0.08), and Q1 revenue USD 203.3mln (exp. 200mln). Sees Q2 revenue at around USD 190mln (exp. 216mln). Said it was unlikely it will be able to achieve FY22 targets it provided in its Q4 earnings call, and is not providing FY expectations as the impact of the grocer issue is difficult to estimate because there are several variables including, among others, eventual consumer pricing and returning usage levels that have yet to be determined.


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  Novavax, Inc. (NVAX) - Tumbled 22.3% after hours after profit and sales miss. Q1 EPS 2.56 (exp. 2.69), Q1 revenue USD 704mln (exp. 845.2mln). Reiterates FY22 revenue view between USD 4-5bln (exp. 4.5bln).


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  SmileDirectClub, Inc. (SDC) - Q1 EPS -0.19 (exp. -0.16), Q1 revenue USD 151.6mln (exp. 134.2mln). Exec said 2022 was off to a good start. Reaffirms FY22 revenue view at USD 600-650mln (exp. 608.6mln).

MATERIALS:

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  Holcim (HCMLY) - India's JSW Group to make USD 7bln bid for Holcim's Indian subsidiaries.


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  International Flavors & Fragrances Inc. (IFF) - Q1 adj. EPS USD 1.69 (exp. 1.27), Q1 revenue USD 3.2bln (exp. 3.02bln). Exec said its pricing actions and focus on costs helped offset inflationary pressures, and upgrades guidance to include incremental pricing actions. Lifts FY22 revenue guidance to USD 12.6-13bln (exp. 11.9bln, prev. 12.3-12.7bln).


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  PPG Industries, Inc. (PPG) - Shareholders voted replace the supermajority voting requirements.

FINANCIALS:

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  Citigroup (C) - Disclosed that its Russian consumer banking business has been put up for sale. Reuters reported. Unit had been hit by sanctions against Russia, the bank's decision not to open new accounts and a reduction in investment sales. Also said regulators were investigating Citigroup Global Markets Inc. over record-keeping.


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  Munich Re (MURGY) - Profits up, but sees slight loss due to Ukraine. Q1 Gross Written Premiums EUR 16.83bln (exp. 15.33bln), Q1 operating profit EUR 782mln (exp. 877.3mln). Raises FY GWP guidance to 64bln (prev. 61bln). Maintains guidance on FY profit, ROI. Books almost EUR 700mln in Russian and Ukrainian bond write-downs in Q1.

CONSUMER STAPLES:

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  Philip Morris (PM), Swedish Match (SWMAY) - Philip Morris in talks to buy Swedish Match (SWMA SS) for USD 15bln, WSJ reports, deal could be announced this week.

CONSUMER CYCLICAL:

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  Papa John's (PZZA) - Exec told CNBC that he has not seen this level of food inflation in 40 years. Said April was a challenging month but staffing had gotten progressively better.


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  Schaeffler (SFFLY) - Sales rose in Q1 but EBIT fell. Q1 revenue EUR 3.76bln (prev. 3.56bln Y/Y), Q1 EBIT EUR 258mln (prev. 397mln).

ENERGY:

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  Saipem (SAPMY) - Working on EUR 2bln capital hike in summer, earlier than planned, according to Il Sole 24.


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  Valvoline Inc. (VVV) - Q2 EPS 0.45 (exp. 0.50), Q2 revenue USD 886mln (exp. 887.1mln). Backs FY22 adjusted EPS outlook of 2.07-2.20 (exp. 2.30), lowers FY22 CapEx view.

REAL ESTATE:

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  Simon Property Group, Inc. (SPG) - Q1 FFO/shr 2.78 (exp. 2.73), Q1 revenue USD 1.295bln (exp. 1.3bln). Exec said leasing momentum, retailer sales and cash flow all accelerated in Q1. Lifts FY22 comp FFO/shr view to 11.60-11.75 (exp. 11.73). Boosts quarterly dividend +21.4% to USD 1.70/shr. Board authorises a USD 2bln share buyback programme.

UTILITIES:

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  Southwest Gas Holdings, Inc. (SWX) - Announces Q1 results, where it reaffirmed 2022 guidance and confidence in its long-term growth prospects. Said that it was moving forward expeditiously with strategic alternatives review process.

10 May 2022 - 09:41- EnergyResearch Sheet- Source: Newsquawk