Analytics, 05 November 2019
Daily comment Nov 5
- Wall St opens higher on signs of trade progress
- SHAK -17% on 3Q comps miss
- ADBE+4% on upbeat guidance
- UBER -7.8% on 3Q bookings miss
- PBC cut MLF by 5bps
- WTI +0.7%
Market movers:
- Shake Shack (-17.2%) reported 3Q Comparable sales miss, gave mixed FY guidance. Rev. +31.9% y/y to $157.76mn vs est. $157.45mn. Comps +2.0% vs est. +2.9%. Restaurant op. margin fell to 23.1% vs est. 24.1%. The Co. expects FY19 rev. of $592-597mn vs $585-590mn prior and est. $600mn; sees 2019 comps to increase 1.5% vs 2.0% prior and op. margins of 22-22.5% vs 23% prior. (https://bit.ly/34w4ELN)
- Adobe (+4.2%) provided upbeat FY20 outlook. The Co. sees FY20 rev. of ~13.15bn vs est. $13.14bn, FY20 EPS of $9.75 vs est. $9.69. ADBE said it’s on tract for 4Q rev. of $2.97bn with $2.25 EPS. (https://bloom.bg/36wOCmV)
- Uber (-7.8%) reported 3Q revenue and EBITDA beat but missed on bookings. Rev. +30% y/y to $3.53bn vs est. $3.39bn. Gross bookings +29% y/y (32% y/y excl. FX) to $16.5bn vs est. $16.7bn. Costs +33% y/y. EBITDA was -$585mn vs est. -$805mn. UBER sees FY EBITDA of -$2.8bn to -2.9bn vs -$3.0 to -3.2bn prior. (https://reut.rs/34zDJP4)
Macro:
- According to FT the US is considering removal of the latest round of tariffs as a part of “phase one” agreement. (https://on.ft.com/2WMJG8F)
- China’s CB slashed the cost of 1-y funds to banks (MLF) by 5bps to 3.25%, the first time since 2016. (https://reut.rs/2qqnm8M)
- Xi Jinping highlighted China’s commitment to the global trading order. (https://bloom.bg/33ibZON)
Commodities:
- WTI (+0.7%): OPEC cut its own 2019-2023 oil production outlook by ~5mn bpd (~16%) amid rivals supply pressure. (https://reut.rs/2PQ2W3Y)
Coming up:
- Companies to report earnings today: Walt Disney, Toyota.
- US ISM non-manufacturing PMI for Oct will be released at 10:00 AM (EST).