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Global Stocks Trending in the News for January 18th, 2019

Jan 18, 2019

 

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Global Consumer Stocks Trending in the News

  • Associated British Foods’ (LSE: ABF) Primark budget fashion chain rebounded in the holiday season after a challenging November. Primark benefited from increased retail space and the early stages of an expansion into the US. After the successful holiday season, Associated British Foods is eyeing a continued expansion of its Primark brand into the US, France, and Spain. Associated British Foods is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.  
  • Casino, Guichard-Perrachon Societe Anonyme (ENXTPA: CO) reported FY4Q2018 financials that mostly came in-line with analyst estimates. Casino brought in 9.93bn euros of revenue in FY4Q2018 while analysts’ consensus called for 9.86bn euros. Casino noted a slowdown in its French business in FY4Q2018, citing the yellow vest protests as reasoning. Casino is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.  
  • Netflix (NFLX) reported 4Q18 EPS of 30 cents while 24 cents was consensus .  Netflix 4Q18 revenue of USD$4.19 billion came in line with USD$4.21 billion consensus .  Netflix added 8.8 million new subscribers, below the consensus of  9.4 million.  Netflix gave 1Q19 revenue guidance of USD$4.49 billion while present consensus is USD$4.60 billion.  Netflix said it has no plans to cut The Bird Box despite cries from critics to remove the film.  Netflix is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Pandora A/S (CPSE: PNDORA) Christmas season sales declined at Signet Jewelers Limited (SIG), the retail company said in a statement. Signet detailed in its statement that the firm’s product category, labeled as Other, “declined driven by a strategic reduction of owned brand beads, as well as declined in Pandora.” Pandora is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. Signet is not rated in our Global Top Stock Ideas.
  • Sears (SHLD.Q) creditors do not want to see ESL Investments, its main shareholder, win the auction selling Sears off as part of its bankruptcy.  The group of creditors asked the judge for permission to sue ESL and its President Eddie Lambert-also the CEO of Sears.  The creditor group accuses ESL and Mr. Lambert of slowly stripping Sears of all its best assets only to reacquire it in the auction.  Sears is not rated in our Global Top Stock Ideas. 
  • Signet Jewelers Ltd. (SIG) shares fell to their lowest point since 2009 after announcing a sales drop during the critical holiday period. The mall-based retailer that owns jewelry chains like Zales, Jared, and Kay Jewelers said that same-store sales fell 1.3% for the nine-week period ending January 5th, 2019. Signet is not rated in our Global Top Stock Ideas.
  • Tiffany and Co. (TIF) is reporting that its FY2018 net earnings will likely come in at the lower end of its previous guidance between USD$4.65/share and USD$4.80/share. CEO Alessandro Bogliolo is attributing underwhelming holiday sales performance and lower sales in foreign markets, primarily China. Tiffany’s is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Tesla (TSLA) is cutting 7% of its staff in a cost-cutting move.  Tesla is looking to cut costs in an effort to keep the cost of the Model 3 a slow as is possible in the wake of the federal tax credit expiring .  CEO Elon Musk said, “The road ahead is very difficult”.  Tesla is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.

Global Information Technology and Communication Services Stocks Trending in the News

  • Apple (AAPL) supplier Foxconn has cut 50,000 seasonal jobs at its factory in China.  The jobs are renewed monthly from August until January, but this year there has not been the need for these workers given lower handset sales expected.  Apple is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Electronic Arts Inc. (EA) have reportedly canceled development of their open-world Star Wars game. The cancellation is raising questions if EA can retain their contract with Disney for the Star Wars intellectual property when the contract is up for renewal in 2024. Additionally, Jefferies downgraded its recommendation for EA from buy to hold. EA is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Sage (LSE: SGE) reported a 10.5% jump in fiscal 2Q19 revenue to 387 million pounds.  Sage saw subscription growth of 27.7% while total organic revenue growth was 7.6%.  Sage reiterated 2019 guidance with Shore Capital reiterating its buy rating in the wake of these results.  Sage Data is rated “Attractive” in our European Large-Cap Global Top Stock Ideas.
  • Taiwan Semiconductor (TSEC:2330) provided revenue guidance well below consensus.  Taiwan Semiconductor forecasts 2019 revenue of USD$7.3-7.4 billion while present consensus is for USD$8.1 billion.  The maker of chips for Apple (AAPL) continues to feel the slowdown in handset sales.  Taiwan Semiconductor is not rated in our Global Top Stock Ideas.  Apple is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • Alcoa (AA) reported 4Q18 EPS of 66 cents while 58 cents was consensus .  Alcoa adjusted ebitda of USD$749 million topped USD$717 million consensus.  Alcoa sees a deficit in aluminum continuing in 2019, with a 1.7-2.1 million ton deficit estimated while a surplus of alumina is expected driven by China.  Alcoa is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • CSX (CSX) reported 4Q18 EPS of USD$1.01 while 99 cents was consensus.  CSX 4Q18 revenue of USD$3.14 billion came in line with USD$3.12 billion consensus.  CSX operating margin this quarter was 60.3% and CSX expects that to improve in 2020.  CSX completed its USD$5 billion share buyback and authorized another USD$5 billion buyback.  CSX is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.
  • Knight-Swift Transportation (KNX) reported preliminary adjusted earnings premarket on Thursday that largely pleased investors and analysts. Knight-Swift reported preliminary adjusted EPS for FY4Q2018 between USD$0.91/share and USD$0.93/share while the prior view called for between USD$0.71/share and USD$0.75/share. Knight-Swift is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.  
  • J.B. Hunt Transport (JBHT) reported 4Q18 EPS of 81 cents while USD$1.24 was consensus, though a change in reporting does not make the numbers comparable.  J.B. Hunt Transport 4Q18 operating revenue of USD$2.32 billion came in line with USD$2.30 billion consensus.   Intermodal revenue was USD$1.26 billion while dedicated contract solutions revenue was USD$595.8 million.  J.B. Hunt Transport is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  J.B. Hunt Transport is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.
  • Kansas City Southern (KSU) reported 4Q18 adjusted EPS of USD$1.56/share while consensus was for USD$1.53/share.  Kansas City Southern generated CY4Q18 revenue of USD$694.0mm while analysts expected USD$685.2mm.  Kansas City Southern's operating ratio of 63.1% in CY4Q2018 was slightly below consensus for 64%.  Kansas City Southern is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • PPG Industries (PPG) reported FY4Q2018 financials that slightly beat analysts’ expectations. PPG generated an adjusted EPS from continuing operations in FY4Q2018 of USD$1.15/share while analysts’ consensus called for USD$1.10/share. PPG’s revenue of USD$3.65bn in FY4Q2018 met analyst expectations of USD$3.65bn. PPG is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • PulteGroup (PHM) was downgraded by BTIG to sell from neutral.  PulteGroup’s price target was set at UD$23.  The downgrade comes after a 14% run in the stock that is now trading at a 21% premium to its peers.  PulteGroup is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.

Global Financials Stocks Trending in the News

  • American Express (AXP) reported 4Q18 EPS of USD$2.32 while USD$1.80 was consensus .  American Express 4Q18 revenue of USD$10.50 billion came in line with USD$10.57 billion consensus .  American Express saw loan loss provision grow 14% in the quarter to USD$954 million  American Express gave full year 2019 revenue guidance of USD$7.85-8.35 billion.  American Express is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Bank OZK (OZK) reported 4Q18 EPS of 89 cents while 83 cents was consensus.  Bank OZK 4Q18 net income of USD$115 million came in line with consensus.    Bank OZK is rated “Top Short” in our US Large-Cap Global Top Stock Ideas
  • BB&T Corporation (BBT) reported FY4Q2019 financials pre-market Thursday that matched analyst estimates. BB&T generated an adjusted EPS of USD$1.05/share in FY4Q2018 while analysts’ consensus called for USD$1.05/share. BB&T’s net interest margin of 3.49% edged slightly past analysts’ consensus net interest margin estimate of 3.48%. BB&T is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Citizens Financial (CFG) reported 4Q18 EPS of 98 cents above 94 cents consensus.  Citizens Financial 4Q18 revenue of USD$1.59 billion came in line with USD$1.60 billion consensus .  Citizens Financial NIM was 3.27% with total write-offs of USD$85 million.  Citizens Financial an is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • Fastenal (FAST) reported 4Q18 EPS of 59 cents while 60 cents was consensus.  Fastenal 4Q18 revenue of USD$1.22 billion came in line with USD$1.23 billion consensus.  Fastenal saw sales grow 8.7% in the quarter.  Fastenal is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Fiserv (FISV) has lined up bridge loan financing for its planned acquisition of First Data (FDC).  First Data has a USD$18 billion debt load which includes USD$13 billion of loans and USD$5 billion of bonds.  Fiserv said it intends to keep its BBB rating.  Fiserv is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas. First Data is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Key Bank (KEY) reported 4Q18 EPS of 45 cents while 47 cents was consensus.  Key Bank 4Q18 revenue of USD$1.64 billion came in line with USD$1.64 billion consensus.  4Q18 NIM on a taxable equivalent basis was 3.16%, in-line with 3.19% consensus.  Key Bank is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Morgan Stanley (MS) reported 4Q18 EPS of  73 cents while 89 cents was consensus.  Morgan Stanley 4Q18 revenue of USD$8.5 billion came well below USD$9.35 billion consensus.  FICC sales and trading revenue came at USD$564 million while USD$822 million was consensus.  Morgan Stanley is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • M&T Bank Corporation (MTB) reported mixed FY4Q2018 financials with an EPS beat despite a net interest margin that missed analysts’ consensus estimate. M&T Bank recorded a net interest margin of 3.92% in FY4Q2018 while analysts expected 3.93%.  Despite the net interest margin miss, M&T Bank generated an operating EPS of USD$3.79/share in FY4Q2018 while analysts expected just USD$3.49/share. M&T Bank is rated “Attractive” in our US Large-Cap Global Top Stock Ideas. 
  • Regions Financial (RF) reported 4Q18 EPS of 37 cents while 38 cents was consensus .  Regions Financial 4Q18 revenue of USD$1.44 billion came in line with USD$1.48 billion consensus .  Regions Financial common equity Tier 1 ratio 9.9%, NIM 3.5%.  Regions Financial an is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Signature Bank (SBNY) reported FY4Q2018 earnings that broadly surpassed analyst expectations. Signature Bank generated an EPS of USD$2.94/share in FY4Q2018 while analysts’ consensus called for USD$2.81/share. Signature Bank’s net interest income of USD$335mm beat the highest analyst estimates that ranged between USD$322.9mm and USD$330.0mm. Signature Bank is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.  
  • Societe Generale SA (ENXTPA: GLE) is reportedly considering deep cuts to its bonus pool for traders for a second consecutive year amid a slump in revenue. Reports indicate that bonuses could fall as much as 25%, which would roughly equal the level of bonus cuts last year. The financial institution will reportedly cut trader bonuses by at least 10%. Societe Generale is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • SunTrust (STI) reported 4Q18 EPS of USD$1.50 above USD$1.43 consensus.  SunTrust 4Q18 revenue of USD$2.39 billion came in line with USD$2.36 billion consensus .  SunTrust common equity Tier 1 ratio 9.21%, NIM 3.27%.  SunTrust is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.

Global Commodities Stocks Trending in the News

  • Kinder Morgan (KMI) reported 4Q18 EPS of 23 cents while 25 cents was consensus .  Kinder Morgan 4Q18 revenue of USD$1.96 billion came in line with USD$1.94 billion consensus .  Backlog fell to USD$5.7 billion.  Kinder Morgan is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Schlumberger (SLB) reported 4Q18 EPS of 36 cents in line with 35 cents consensus.  Schlumberger 4Q18 revenue of USD$8.2 billion came in line with USD$8.04 billion consensus .  Schlumberger sees 2019 capex dropping to USD$1-5-1.6 billion, down from USD$2.1 billion in 2018.  Schlumberger is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.​​

 


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