Analytics, 25 October 2019
Daily comment Oct 25
- Wall St opens lower amid mixed earnings, trade uncertainty
- AMZN -4% on light 4Q sales outlook
- V -1% despite 4Q EPS beat
- INTC +5% after raising FY guidance
- EU considers Brexit “flextension”
- China to seek tariff removal
- WTI -0.3%
Market movers:
- Amazon (-4.0%): The Co. reported EPS miss and weak 4Q guidance. 3Q rev. +24% y/y to $69.9bn vs est. $68.7bn. AWS rev. +35% y/y to $9.00bn vs est. $9.19bn. Global shipping costs +46% y/y on 1-day delivery efforts. 3Q Adj. EPS -46.3% y/y to $4.23 vs est. $7.5. Sees 4Q rev. $80.0bn-$86.5bn vs est. $87.16bn; Sees 4Q op. income $1.2bn-$2.9bn vs est. $4.31bn. (https://bit.ly/340Z6sn)
- Visa (-1%): The Co. reported 4Q EPS beat, boosted dividend. 4Q rev. +13% y/y to $6.14bn vs est. $6.08bn helped by more spending on debit and credit cards. Total processed transactions +11% y/y vs est. +11.5%. 4Q adj. EPS $1.47 vs. $1.21 y/y, est. $1.43. Increased quarterly dividend by 20% to $0.3. (https://bit.ly/363ax4I)
- Intel (+5%): The Co. boosted FY rev. forecast. 3Q rev. was flat y/y at $19.19bn vs est. $18.03bn. Gross margin sharked to 60.4% from 66% y/y vs est. 61.6%. Data Center rev. +4% y/y to $6.38bn vs est. $5.62bn. Adj. EPS +1.4% y/y to $1.42 vs est. $1.24. Sees 4Q rev. ~$19.2bn vs est. $18.86bn. Sees FY adj. EPS $4.60, (saw $4.40) vs est. $4.37. (https://bit.ly/2PiWJ08)
- Boeing (-0.6%): A final investigation of Lion Air crash revealed pilot error as well deficiencies in 737 Max design. (https://bloom.bg/2JnYgOz)
Macro:
- China’s officials reportedly seek for US tariffs removal in return for agricultural purchases. (https://reut.rs/2pbRnsI)
- EU officials agreed on Brexit delay, however, the exact date will be decided next week. The EU considers an option of “flextention”: UK will leave on Jan 31 or earlier if it and the EU ratify a deal. (https://reut.rs/2Pk5UNU)
Commodities:
- WTI (-0.3%): The Forties oil pipeline has been shut amid power outage. (Bloomberg)
Coming up:
- Baker-Hughes rig count will be published at 1:00 PM (EST)