Morning Bites - May 11, 2023

🔮 Welcome back to Finsights, fellow financial wizard. Let’s get you up to speed on the market with a flick of your finger! 🪄

• 🕺The market's doing the cha-cha with earnings and rates leading the dance.

• 🎵 Ongoing debt ceiling drama playing a sour tune.

• 📈 Inflation as expected in the US - mixed around the globe 🌍

• 📉 PACW opens up about their drama

💪 Market Rumble: US equity futures indices are in a good mood today: S&P up by 0.30%, Dow by 0.10%, and Nasdaq by 0.31%. Over in the Eurozone, the indices are up by 0.40-0.45%. It's all green and merry, like a St. Patrick's Day parade. Asia, however, missed the memo, with a mix of red and green. Brent prices are up by 1.10% (someone's been hitting the gym), but gold and Bitcoin are down 0.30% and 1.70% respectively - maybe they hit the snooze button? 📈💸

🎭 Debt Ceiling Drama: Like an overhyped season finale, we're all waiting to see if Congress will pull a 'Thelma and Louise' with the debt ceiling. Trump's late-night call for a default added some spicy plot twists, but we're banking on a happy ending. And in the East, China's lukewarm inflation data is causing whispers of a policy easing. But don't get too excited, the Hang Seng and Shanghai Comp ended up looking more red than a sunburnt lobster. 🌏📉

💹 Data and Digits: Earnings reports are coming in faster than a frat boy chugging a beer, with Disney's numbers more disappointing than a cancelled Spring Break. All eyes are now on the BOE's expected rate hike (they're going up faster than tuition fees, am I right?), US PPI & claims data, and some more earnings reports. Bring it on! 🎓🍻

🐂 Stock Talk: We're still waving the bull flag! Why? Earnings and rates are doing a great tango, and the market's sour mood is just adding zest. The latest CPI report was like getting a gold star on our homework, backing up the Fed's "no more hikes for now" promise. Q1 earnings season is like a winning streak on a game show. Sure, there are a few thorns in our side - the never-ending debt ceiling drama, over-eager expectations of rate cuts in H2, and valuations that might make you wince. But none of these are deal breakers. So, let's keep the bull party going! 🎉💰

🏦 PacWest's 10Q filing reveals a 9.5% drop in deposits after a May 3 media report stirred safety concerns among customers. Despite this, their current liquidity, at $15.0 billion, overshadows uninsured deposits of $5.2 billion by a whopping 288%, proving they've got more than enough padding for any bumps on the road

Consumer

👔 DDS (Dillard’s), where you probably snagged your high school prom suit, reported an FQ1 EPS of $11.85, stylishly outperforming the Street's estimate of $8.61. Shoppers might be easing up a bit, but Dillard’s is still strutting its stuff on the financial runway.💃

🍩 DNUT (Krispy Kreme), the irresistible donut-maker that turns your cheat day into a cheat week, cooked up a tasty Q1 EPS of 9c, glazing over the Street's estimate of 7c. Despite the sugar rush, they're keeping their full-year guidance as steady as your love for their Original Glazed. 🍩

👜 TPR (Tapestry), the luxury fashion powerhouse behind Coach and Kate Spade, strutted its way to a FQ3 EPS of 78c, outpacing the Street's estimate of 60c. Looks like Tapestry’s style and success are a match made in fashion heaven. 👛

🍴 USFD (US Foods), the food distributor that likely stocks your favorite restaurants, served up a delectable FQ1 EPS of 50c, satisfyingly more than the Street's prediction of 41c. Despite the hearty performance, they're keeping their full-year guidance on a balanced diet. 🍽️

🥨 UTZ (Utz Brands), the snack maker that’s probably filled your pantry at some point, reported a scrumptious Q1 EPS of 11c, crunching the Street's estimate of 9c. They're ready to snack on even more success with their boosted EBITDA outlook for the full year. 🎉

🧊 YETI (Yeti), the brand that keeps your drinks colder than your ex's heart, chilled out with a Q1 EPS of 18c, icing out the Street's estimate of 15c. They’re cool as a cucumber and maintaining their full-year guidance. ❄️

China

🚗 ATHM (Autohome), the digital platform you turn to when dreaming of that shiny new car, hit the gas with a Q1 EPS of CNY3.91, surpassing the Street's expectation of CNY3.70. Looks like they're cruising comfortably in the fast lane. 🏁

🛍️ JD (JD.com), China's massive e-commerce titan that's like Amazon on steroids, reported a Q1 EPS of CNY4.76, outshopping the Street's estimate of CNY3.59. They're trimming the fat and boosting profitability, even as they pass the CEO baton to a new leader. 🔄

Healthcare

🔬 CRL (Charles River), the lifeline for biomedical research, kicked off the year with a bang. Q1 EPS stands at $2.78, outperforming the Street's guess of $2.59. They've even tweaked their low-end guidance. The science nerds have never been happier! 🧪

💉 HAE (Haemonetics), the blood management solutions provider, turned out some healthy Q1 figures with an EPS of $0.77, beating the Street's estimate of $0.70. Seems like they're really in the flow! 💪

📉 PKI (Revvity) had a bit of a hiccup, missing Q1 revenue projections ($675MM vs. the Street's $681.5MM) thanks to slumping COVID sales. They've also trimmed their full-year guidance. On the bright side, they're getting a new stock ticker, moving from PKI to RVTY starting May 16, 2023. 🔄

Industrials

🛠️ CIR (CIRCOR), the industrial valve and pump manufacturer, gave Wall Street a pleasant surprise with a massive EPS of $0.53, blowing the Street's $0.13 estimate out of the water. They're also playing hard-to-get, continuing talks about selling the company. 🤝

🚪 JBI (Janus Int'l), the self-storage solutions provider, reported an EPS of $0.18, a penny ahead of the Street's estimate. They're optimistic about the future, tweaking their guidance upwards. Guess people need more places to store their stuff! 📦

Tech

🔐 CYBR (CyberArk), the digital security mavens, have outperformed the Street's predictions with an ARR at $604MM, compared to the Street's $590MM. They've even upgraded their full-year guidance for ARR and EPS. Security never looked so good! 📈

🔬 ENTG (Entegris), the provider of specialty chemicals for microelectronics, reported a strong Q1. They pulled in an EPS of $0.65, a leap ahead of the Street's $0.52, and also beat revenue expectations. The future's looking bright too with their decent guidance. 🧪

💻 FVRR (Fiverr), the gig economy champ, reported an in-line revenue of $88MM with EBITDA a touch better than expected. Their Q2 guide seems promising, and they're raising the low-end of their full-year revenue outlook. Gigs are the new 9-5! 💼

🖥️ HIMX (Himax Technologies), the semiconductor company, warns of a rough Q2, underperforming Street expectations. But it's not all doom and gloom - they see a rebound in the second half. Sounds like a classic case of 'it's always darkest before the dawn'. ⛅

☁️ NICE (NICE Ltd), the software solutions provider, outperformed in Q1 with an EPS of $2.03 and revenue of $572MM, beating the Street's estimates. Their Q2 guidance is in line with the Street's expectations, and they're boosting their full-year EPS guidance. Nice going, NICE! 😉

🌯 That’s a wrap for earnings. Have a fantastic day! 🌯

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