BofA/Merrill Lynch Slashes Estimates, PT on Fossil (FOSL) Amid Weak 2015 Outlook
February 18, 2015 6:45 AM EST
BofA/Merrill Lynch lowered estimates and its price target on Fossil (NASDAQ: FOSL) to $80.00 (from $95.00) following Q4 results
Fossil Group (NASDAQ: FOSL) reported Q4 EPS of $3.00, $0.07 worse than the analyst estimate of $3.07. Revenue for the quarter came in at $1.07 billion versus the consensus estimate of $1.12 billion.
Wholesale net sales decreased 4%; decreased 1% in constant currency, with increases in Europe and Asia Pacific offset by a decline in North America
Direct to consumer net sales increased 12%; increased 16% in constant currencyGlobal comparable store sales increased 7.7%, with increases in Europe, North America and Asia Pacific
Fossil Group sees Q1 2015 EPS of $0.59-$0.69, versus the consensus of $1.21.
Fossil Group sees FY2015 EPS of $5.45-$6.05, versus the consensus of $7.54.
No $10 earning with oil at $80, more like $5 to $6 which makes AAL a $30 stock.
Oil is going back to $80 by May. Short airlines, go long oil & oil stocks.
Analysts are mostly negative, believing Newman's departure signals more challenging times ahead for RIG after already impairing $2.8B of assets last quarter with more impairments expected in 2015; with an aging floater fleet and an increasing oversupply of rigs available for work globally, RIG likely will need to stack and retire a large number of its assets.
Deutsche Bank reiterates a Sell rating for RIG and cuts its price target to $6 from $16, saying the dividend reduction frees up ~$800M/year and was a better outcome than an outright elimination, but the firm expects RIG's free cash flow to remain negative for the "foreseeable future."
Opens at $15 sinks to $12. Get real, longs have been screwed.....
Jefferies analyst Cynthia Meng cut estimates and her price target on Baidu (NASDAQ: BIDU) to $253.00 (from $283.00) but maintained an Buy rating following Q4 results and lower guidance.
Meng commented, "1Q15 lower-than-expected revenue guidance factors in late CNY timing and higher mobile traffic mix. We expect to see a strong 2Q15 rebound and maintain our FY15 revenue outlook. Expect continued investment in LBS and mobile to push back margin recovery to FY16. Revised down FY15/FY16 profit est. by 11%/12.8%, and expect the Street to follow. We see near-term stock correction as a buying opportunity. Maintain Buy; revise down PT by 11% to USD253."
The firm cut FY 2015 EPS from $8.79 to $7.84 and FY 2016 EPS from $12.40 to $10.85.
Long-time Tesla Motors (NASDAQ: TSLA) bear John Lovallo of BofA/Merrill Lynch took a victory lap today following results from the EV maker after the close. He also cut estimates and his price target to $70.00 (from $75.00) while reiterating an Underperform rating.
The analyst key takeaways from the quarter were: 1) 4Q deliveries, revenue, and EPS well below expectations, 2) Tesla burned $455mm of free cash flow in 4Q ($541 mm ex. reg. credits), 3) Operating expenses,capex, and cash burn all forecast higher, with little relief in sight, 4) It could prove challenging for bulls to maintain lofty estimates, POs, & Buy ratings, 5) Stock only down marginally in aftermarket trading, but there is likely much more ahead.
The firm cut FY 2015 EPS from $2.40 to $1.56, FY 2016 EPS from $3.00 to $2.10, FY 2017 EPS from $3.95 to $2.60.