Analytics, 23 October 2019
Daily comment Oct 23
- Wall St opens mixed on earnings, Brexit uncertainty
- TXN -8.2% on profit warning
- SNAP -2.5% on weak outlook despite strong 3Q user growth
- CMG -3.4% despite 3Q EPS beat
- Brexit plan approved, timing uncertain
- WTI +1.6%
Market movers:
- Texas Instruments (-8.2%): The co. provided weak 4Q outlook, missed on revenue. 3Q rev. -11.5% y/y to $3.77bn vs est. $3.81bn. Adj. EPS -10.5% y/y to $1.46 vs est. $1.47. Sees 4Q rev. of $3.07-$3.33 vs est. $3.6bn; sees EPS of $0.91-$1.09 vs est. $1.28. (https://bit.ly/2Jhy34d)
- Snap (-2.5%): The Co. reported 3Q EPS and user metrics beat, missed on guidance. 3Q rev. +50% y/y to $446.2mn vs est. $437.9mn. DAU was 210mn and average rev/user $2.12 vs est. 207mn and $2.10. Adj. EPS +67% y/y to -4c vs est. -5c. Sees 4Q rev. at $540-$560 vs est. $555.4. (https://bit.ly/2NaALtk)
- Chipotle (-3.4%): The Co. topped 3Q EPS estimate. Rev. +15% y/y to $1.40bn vs est. $1.38bn. Comps +11% vs est. +9.3%. Adj. EPS +76% y/y to $3.82 vs est. $3.21. (https://chip.tl/31DVqvf)
- Facebook (+1%): Mark Zuckerberg set to testify on cryptocurrency plans today before the House Financial Services Committee. (https://bloom.bg/33Qy3jw)
Macro:
- UK Parliament supported PM Johnson’ withdrawal agreement, voting however against accelerated timeline to leave on 31 Oct. (https://bloom.bg/2ME7W9Q)
Commodities:
- WTI (+1.6%): US crude inventories rose 4.45mn bls last week: API.
- Russia’s EnMin said there is no proposal among OPEC+ members to deepen production cuts: Bloomberg
- Citigroup expects US oil output growth to be 1.2mn bpd in 2019 and 1.1mn bpd in 2020. (Bloomberg)
Coming up:
- Microsoft and Tesla are among companies to report earnings after-market.
- On Thu (10/24): ECB monetary policy decision