Market 2018-03-06 (Target, YY, and more)

Stock market has another choppy day as trade-war threat lingers. Indices manage to finish green, lead by Nasdaq (+0.56%). Paul Ryan urges more 'surgical approach' to tariffs. Some Republicans also disagree with Trump.

Crude -0.21% to $62.44. Gold +1.13% to $1,334.80. Dollar falls again UUP -0.25%. Bond yields have little change.

Winners

Ciena Corp. (CIEN +10.1%) after ER beats and inline guidance. Revenue by Segment: Total Networking, $496M (+77% Y/Y); Total Software and Software-Related Services, $53.5M (+8%); Total Global Services, $96.6M (+15%).

Cree +9.7% after the company acquired assets of Infineon Technologies AG Radio Frequency Power Business.

Semiconductor sector continues its rally: AMAT +4.1%, LCRX +4.9%, WDC +4.3%, MU +3.3%, NVDA +2.8%, INTC +1.9%...

NFLX gains another 3.24%. shares jump more than 10% in three days.

UPS +3.8% after being upgraded by Stifel Nicolaus to Buy with $121 PT.

Chinese Tech: BZUN +31.1% after ER beats, WB +3.3%, SINA +3.2%, BABA +3.2%, NTES +2%, BIDU +1.5%, MOMO +2.1%...

Autodesk (ADSK +0.8%): Q4 EPS of -$0.09 beats by $0.02. Revenue of $553.8M (+15.7% Y/Y) beats by $9.06M. Shares +11.4% in AH.

Losers

TGT -4.5% after reporting mixed ER: Q4 EPS of $1.37 misses by $0.01. Revenue of $22.77B (+10.1% Y/Y) beats by $240M. comparable sales +3.6%, Digital sales +29%. However, EBIT margin fell from 6.5% to 5.1%. 2018 EPS of $5.15 to $5.45 is expected vs. $5.26 consensus. I believe TGT is positioned well for 2018. WMT -1%.

YY -12.3% despite strong earnings. In 17Q4, rev +46% Y/Y, mobile live streaming monthly active users +36.6% Y/Y, total live streaming paying users +25.0%. 2017 EPS $6.79, with $120/share, trailing P/E is only 17.7. YY is planning to spin off its gaming streaming unit Huya for an independent IPO. An earlier Bloomberg report put the unit’s valuation at around $200M. For Q1, it's expecting revenues of 3B-3.15B yuan (+32.3%-39% Y/Y), which is in-line. This is a great buying opportunity, I believe.

Ross Stores (ROST +3.2%) trade lower after reporting ER beats and issuing guidance on the conservative side: Comparable store sales are forecast to be +1~2% and EPS of $1.03-$1.07 vs. $1.03 consensus. Shares -3.1% in AH.

Urban Outfitters (URBN +2.1%): Q4 EPS of $0.69 beats by $0.06. Revenue of $1.09B (+5.8% Y/Y) beats by $10M. Shares -6.7% in AH amid margin worries.

My Trades Today

  • Sold BGS @ $30.5
  • Bought YY @ $119.6

Earnings Tomorrow

  • pre-market:   ANF, DLTR, MOMO, PLUG
  • post-market:  BREW, COST, CZR, THO

Comments

  1. UnknownMarch 6, 2018 at 3:58 PM

    Futures lost more than 1% after the news: Gary Cohn, Trump's top economic adviser decides to resign. He is against wide tariffs. Trade-war seems closer than we thought.

    ReplyDelete

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