Halister News

(Bloomberg) -- Following are forecasts for today’s U.S. economic releases as compiled by Bloomberg News:

• U. Mich Conf 98; range 96 to 100 (63 estimates)
• January reading of 98.5 was highest in 13 years
• • "Consumer sentiment has increased significantly since the presidential election, and the gains have been more durable than most analysts anticipated, based on patterns in prior elections": Bloomberg Intelligence

(Bloomberg) -- Net change in employment seen at -10k in January vs revised +46.1k in December (forecast range -30k to +10k); average monthly change in 2016 was 19k.

• Canada’s unemployment rate seen at 6.9%, unchanged (forecast range 6.8% to 7%)

(Bloomberg) -- Following are forecasts for today’s U.S. economic releases as compiled by Bloomberg News:

• Import prices 0.3% m/m; range 0% to 0.8% (39 estimates)
• Import Prices 3.4% y/y; range 3% to 3.6% (9 estimates)
• • "Analysts who expect the dollar’s rapid appreciation to keep import inflation in check might have to adjust those expectations as the greenback has recently fallen to levels seen after the election in early November": Bloomberg Intelligence

(Bloomberg) -- Western Union’s “WU Way” initiative, which is designed to transform the business and save costs, raises questions about earnings quality, SunTrust analyst Andrew Jeffrey (hold) writes in note after WU’s 2017 guidance disappointed yesterday.

• Unclear whether the program is a one-time thing or reflects “structurally higher expenses”
  • NOTE: Yesterday, WU said it spent $13m on the program in 4Q and plans to spend another ~$100m in 2017
• Cautious despite WU’s “attractive” valuation given higher costs and “eroding competitive position” that will likely pressure revenue/earnings growth and put cap on stock; competition likely what drove 2017 guidance miss
• Separately, Evercore ISI’s Rayna Kumar (hold) sees “WU Way” leading to “low-quality” earnings as it’s excluded from operating income; doesn’t see program directly advancing WU’s low-single digit revenue growth or transaction gains
  • Encouraged by WU’s pricing gains and dividend boost, but cautious on long-term consumer-to-consumer pricing strategy and sees it facing pressure
• NOTE: WU has 4 buys, 15 holds, 9 sells, avg PT $19: Bloomberg data
• NOTE: Jan. 26, Jack Ma Not Making It Easy for Western Union as Shares Slide
• NOTE: Jan. 19, Western Union to Pay $586 Million Over Failure to Stop Fraud

Economic Release Details: {INPIINDY Index ECOD}

(Bloomberg) -- CBRE sees FY17 adj. EPS $2.35 to $2.45, est. $2.33 (range $2.12-$2.47)

• 4Q rev. $3.82b, est. $3.88b (range $3.76b-$4.02b)
• 4Q adj. EPS 93c, est. 81c (range 78c-85c)

NOTE:

• 8 buys, 1 hold, 0 sells before today
• Call 8:30am (NY time), 877.407.8037

Statement