Research 28.05.2014

Today Movers

AGN

Allergan– Valeant Pharmaceuticals has improved its takeover bid for Allergan, adding $10 per share to the cash portion, and adding a contingent value right that it said could be worth up to $25 per share. Separately, Valeant sold the rights to several of its skincare products to Nestle for $1.4 billion in cash.

TWTR

Twitter—Nomura Securities upgraded Twitter to «buy» from «neutral,» saying this year's drop in the stock price has resulted in a much more favorable risk/reward ratio. The firm now sees the possibility of product enhancements that could spur user growth and revenue per user.

DDD

3D Systems–3D announced a public offering of nearly six million shares, a move that will increase the 3D printer maker's outstanding shares by 5.8 percent. The company plans to use the proceeds for future acquisitions and for working capital.

Earnings

KORS
Michael Kors–The luxury goods retailer earned 78 cents per share for its fourth quarter, beating estimates by ten cents, and its revenue was also well above expectations as same store sales rose more than 26 percent. The company also gave an upbeat outlook for the full year.

DSW
DSW–The shoe retailer missed estimates by six cents with first quarter profit of 42 cents per share, with revenue also falling short. The company cited both bad weather and aggressive promotions.

WDAY
Workday—The maker of human resources software posted a first quarter loss of 13 cents per share, two cents smaller than expected. Revenue exceeded forecasts, and the company also raised its sales outlook for the full year on higher demand.

TOL
Toll Brothers–The luxury home builder reported fiscal second quarter profit of 35 cents per share, eight cents above estimates, with revenue exceeding forecasts as well. Toll was able to sell more homes at higher prices compared to a year earlier.

QIHU
Qihoo +5.4% AH on Q1 beat, strong Q2 outlook
Qihoo (QIHU) expects Q2 revenue of $300M-$305M, well above a $270.2M consensus.Q1 results trounced estimates on the back of a 120.9% Y/Y increase in ad revenue to $140M, and a 172.2% increase in value-added service (largely gaming) revenue to $124.8M.Improving search/mobile monetization contributed to the ad growth. Qihoo notes it's now estimated to have 25% of the Chinese search market, up from 23% in Q4; the company has been aiming for a 30% share by year's end.Total users of Qihoo products/services rose by 4M Q/Q and 38M Y/Y to 497M. Users of Qihoo's 360 Mobile Safe app rose another 13% Q/Q and 96% Y/Y to 538M.Daily unique home page visitors rose by 3M Q/Q to 122M, after slipping by 7M in Q4. Average home page daily clicks rose by 91M Q/Q to 772M.Gross margin fell to 79.5% from 87.4% a year ago. Opex rose 101% Y/Y to $155.2M.

Conference calls

7:30 10:30 Qihoo 360 Tech. QIHU
8:00 0:00 Michael Kors KORS
8:30 0:00 Chico's FAS CHS
8:30 0:00 DSW DSW
9:00 0:00 Brown Shoe BWS
11:00 14:00 Cracker Barrel CBRL
11:00 0:00 America's Car-Mart CRMT
11:00 0:00 Daktronics DAKT
11:00 0:00 North Atlantic Drilling NADL
11:00 15:00 RBC Bearings ROLL
12:00 0:00 Seadrill Ltd SDRL
14:00 0:00 Bank of Montreal BMO
14:00 0:00 Toll Brothers TOL
16:30 0:00 Gordmans Stores GMAN
16:30 0:00 Palo Alto Networks PANW
16:30 0:00 Tilly's TLYS