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Wednesday, March 18, 2020

-=Nabors Industries (NBR) proposes reverse stock split

  • Nabors Industries proposes reverse stock split with ratio between 1-for-15 and 1-for-50 common shares; expected to become effective on April 16 (shareholders vote April 13)

Monday, March 16, 2020

Earnings this week : March 16 - 20, 20 (wk 12)

Notable earnings reports: 

  • New Age Beverages (NASDAQ:NBEV), FuelCell Energy (NASDAQ:FCEL), Coupa Software (NASDAQ:COUP) and Revlon (NYSE:REV) on March 16; 
  • FedEx (FDX), Michaels Companies (NASDAQ:MIK) and Designed Brand (NYSE:DBI) on March 17; 
  • General Mills (NYSE:GIS), Five Below (NASDAQ:FIVE) and Futu Holdings (NASDAQ:FUTU) on March 18; 
  • Darden Restaurants (NYSE:DRI), Children's Place (NASDAQ:PLCE), Lennar (NYSE:LEN), Crowdstrike (NASDAQ:CRWD), Momo (NASDAQ:MOMO) on March 19; 
  • Tiffany (NYSE:TIF) and Hibbett Sports (NASDAQ:HIBB) on March 20.

 Spotlight on FedEx:
FedEx (FDX) is one of the first heavyweight multinationals to report earnings after the coronavirus acceleration in the U.S. Analysts project the shipper will report revenue of $16.9B, consisting of $8.7B from the FedEx Express segment, $5.6B from the ground segment and $1.7B from the freight segment. EPS of $1.48 is expected and operating margin is anticipated to come in at 3.1%. What about guidance? How FedEx models and discusses the coronavirus impact on the U.S. economy could swing UPS (NYSE:UPS) up or down and sway the transportation sector as a whole.

Friday, March 13, 2020

This week's biggest % winners & losers: March 9 - 13, 20 (wk 11)

The following are this week's top percentage gainers and losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top % gainers
  • Healthcare: OSUR (7.54 +27.36%), VAPO (12.54 +22.46%), PINC (34.95 +21.02%), TBIO (8.93 +20.68%), EBS (68.76 +17.24%), SLDB (3.72 +16.98%)
  • Industrials: AFI (2.66 +39.27%)
  • Consumer Discretionary: GME (4.59 +17.09%), LRN (23.94 +16.78%)
  • Information Technology: CY (23.11 +41.17%)
  • Energy: DO (3.76 +82.52%), GPOR (0.89 +77.43%), EQT (9.53 +49.14%), SWN (1.77 +35.11%), FRO (9.35 +32.81%), CNX (6.72 +30.74%), EXTN (8.5 +29.18%), DHT (6.6 +28.16%), STNG (20.5 +25%), EURN (10.49 +22.98%)

This week's top % losers
  • Healthcare: TVTY (4.36 -60.04%), TLRY (4.03 -59.83%), INO (7.20  -48.90%)
  • Consumer Discretionary: NCLH (11.1 -59.04%), RCL (32.33  -50.27%)
  • Financials: FMO (1.77 -64.1%), GMZ (1.45 -62.14%), JMF (2.02 -60.08%)
  • Energy: CLB (8.49 -64.39%), CDEV (0.56 -63.28%), PVAC (4.1 -62.35%), SLCA (1.26 -61.59%), NBR (0.37 -61.52%), ECA (3.09 -61.08%), APA (8.07 -61.01%), OII (3.23 -60.47%), FTSI (0.28 -60.23%), MTDR (2.64 -59.69%), NBLX (4.86 -59.3%), OIS (2.42 -59.19%)
  • Materials: JNUG (4.47  -92.90%), NUGT (6.76  -79.07%) 

Monday, March 9, 2020

-=Stitch Fix (SFIX) reported earnings Mon 9 March 20 (a/h)

The online provider of personalized apparel reported adjusted earnings of 11 cents per share on revenue of $451.8 million. Wall Street expected earnings of 7 cents a share on revenue of $452.6 million. The earnings report was for the company's fiscal second quarter ended Feb. 1.

Stitch Fix Guidance Disappoints
For the current quarter, Stitch Fix estimated revenue in the range of $465 million to $475 million. That's below analyst estimates for $506.2 million.

For fiscal 2020, Stitch Fix expects revenue in the range of $1.81 billion to $1.84 billion. Analysts predicted $1.92 billion.

RBC Capital Markets analyst Mark Mahaney cut his price target on Stitch Fix stock to 24 from 38, but kept a rating of outperform.

He blamed the lower-then-expected outlook by Stitch Fix on a series of factors. These included "heightened promotional activity across retail that resulted in lower order values, ad channel price inflation, slower than expected ramp for its U.K. offerings due to macro concerns and Covid-19 uncertainty."

Client Numbers Increase
Stitch Fix provides an online styling service that delivers personalized clothing to its members, with free shipping. The company uses data analytics in its decision-making process for selecting apparel.

The company ended the quarter with 3.5 million active clients, an increase of 17% from the year-ago period, according to the Stitch Fix earnings report.

However, the company warned in its report, "We believe that in part due to heightened promotional activity across retail, those clients spent less per Fix in the quarter on average, resulting in lower order values than we anticipated."

-=Aon (AON) to acquire Willis Towers Watson (WLTW)

Today Aon (AON) agreed to acquire Willis Towers Watson (WLTW) in an all-stock transaction that values the combined company at about $80 billion.

The acquisition, the insurance sector's largest ever, unifies the second and third largest brokers globally into a company worth almost $80 billion, overtaking market leader Marsh & McLennan Companies Inc (MMC). It comes at a time when insurers are facing rising claims and new threats from the global outbreak of coronavirus and climate change.
Aon had scrapped plans last year to pursue a merger with Willis, a day after media reports forced it to reveal it was in the early stages of considering an all-stock offer for the Irish-domiciled company. The merger agreement came right after a 12-month restriction under Irish rules for revisiting the deal expired.
The timing also coincides with a violent market correction, as Wall Street's main stock indexes plummeted and the Dow Jones Industrials crashed 2,000 points on Monday, driven by 20% slump in oil prices and the rapid spread of coronavirus.
This also weighed on Aon, whose shares dropped 16% on Monday, much more than the 8% drop in Willis shares.