Crude futures extend gains on less than expected inventory build
EIA Petroleum Inventories:
Crude +1.3M barrels vs. +4.1M consensus, +10.9M last week.
Gasoline -2.1M barrels vs. -0.02M consensus, +0.8M last week.
Distillates +2M barrels vs. +0.9M consensus, -0.3M last week.
Guidance: Delta says it plans to reduce international capacity by 3% for the winter schedule with a focus on cutting flights in regions most impacted negatively by a strong U.S. dollar. Operating margin of 16% to 18% is forecast on an assumed fuel price of $2.35-$2.40. System capacity is seen rising 3% next quarter
Delta Air Lines (NYSE:DAL) reports traffic increased 3.6% in Q1.
The company's operating margin adjusted for items rose 90 bps to 8.8%.
Foreign exchange swings lopped off $105M from Delta's revenue during the quarter. Cargo revenue was flat year-over-year.
Delta's consolidated yield for the period was -0.4% with Pacific routes (-8.2%) and regional carriers (-3.1%) the most inefficient parts of the business.
The load factor fell 100 bps to 81.7%.
Number of aircraft in operation +3 Y/Y to 912. Number of employees +3% to 81,055.
The company saw fuel expenses increase $23M as settled hedging losses offset the impact of lower jet fuel prices. The average fuel cost per gallon was $2.93.
The Trainer refinery produced a profit of $86M for the three months.
Guidance: Delta says it plans to reduce international capacity by 3% for the winter schedule with a focus on cutting flights in regions most impacted negatively by a strong U.S. dollar. Operating margin of 16% to 18% is forecast on an assumed fuel price of $2.35-$2.40. System capacity is seen rising 3% next quarter.
Delta Air Lines (NYSE: DAL) reported Q1 EPS of $0.45, $0.01 better than the analyst estimate of $0.44. Revenue for the quarter came in at $9.39 billion versus the consensus estimate of $9.41 billion.
Stronger mortgage numbers, but weaker trading results as BofA beats estimates
Q1 net income of $3.4B or $0.27 per share vs. a loss of $276M and $0.05 one year ago. This year's results include $0.09 per share in charges for annual retirement-eligible costs and market-related net interest income adjustments.
Excluding litigation costs of $370M this year vs. $6B one year ago, noninterest expense of $15.3B fell 6% from a year ago.
Consumer Banking net income of $1.475B vs. $1.468B a year ago. Average deposit balances of $531.4B up 5%. Client brokerage assets of $118.5B up 18%. Mobile banking customers of 16.9M up 13%, with 13% of deposit transactions done through mobile up 10% Y/Y. $13.7B in mortgages originated and $3.2B of home equity loans vs. $8.9B and $2B one year ago.
Global Wealth and Investment Management net income of $651M vs. $729M a year ago. Revenue was stable at $4.5B. AUM of $917B vs. $842B.
Global Banking net income of $1.365B vs. $1.291B a year ago.
Global Markets net income of $945M vs. $1.313B a year ago, with revenue of $4.6B down 8%. FICC revenue fell 7%.
Legacy Assets and Servicing (LAS) loss of $238M vs. a loss of $4.9B a year ago.
Tangible book value per share of $14.79 vs. $13.81 one year ago. CET 1 ratio of 10.3%.
API Reports US Crude Stocks +2.6 Mln Bbl in Week, Source Says
I posted weeks ago that I cover my short position. Was hoping it would drop to $50.Oh well Congratulation's on this insane pop. Looks like a short squeeze.
They get to pay off all their debt & will have over $280 million in the bank. Not bad for a company that has no hope of every making a dime. And they say Bernie Madoff was a #$%$. LOl...
Dyax Corp. (DYAX) today announced the pricing of an underwritten public offering of 7,400,000 shares of its common stock, offered at a price to the public of $27.00 per share. The gross proceeds to Dyax from this offering are expected to be approximately $200 million, before deducting the underwriting discounts and commissions and other estimated offering expenses payable by Dyax. Dyax has granted the underwriters a 30-day option to purchase up to an aggregate of 1,110,000 additional shares of common stock. The offering is expected to close on or about April 13, 2015, subject to customary closing conditions.
Kilduff said the surge in oil could be seen as a selling opportunity, particularly after Saudi Arabia announced a significant increase in production.
In comments Tuesday, Saudi Oil Minister Ali al-Naimi said Saudi Arabia is ready to "improve" prices if other producers outside OPEC join the effort. He said Saudi Arabia also pumped 10.3 million barrels a day, a big jump from prior months. Brent crude, the international benchmark was weaker, in afternoon trading.
"That is huge. That could be 800,000 barrels per day more than they were producing a couple months ago," said Kilduff. He said part of the move upward in WTI futures was technical.
U.S. crude oil inventories rose 12.2M barrels last week, according to the API, up from 5.2M barrels the previous and week and against expectations for a 3M barrel gain.
The EIA reports its numbers tomorrow morning.
Virgin America to add routes into Hawaii
Virgin America (VA) announces it will add flights to Hawaii from the U.S. Mainland.
The carrier will start flights into Honolulu in November and Maui in December.
Virgin will compete with United Continental, Hawaiian Airlines, and Delta Air Lines on the lucrative routes.
YY -2.3%; 86 Research expects soft Q1 music sales
Believing YY's music sales are worse than expected and that gaming growth won't be enough to offset, 86 Research sees the company missing Q1 revenue estimates.
YY's online music/entertainment revenue rose 100.9% Y/Y in Q4 to $109M (58% of total revenue). Gaming revenue rose 40.9% to $37M. The company has already provided below-consensus Q1 revenue guidance; sales (as measured in yuan) are still expected to rise 59%-62% Y/Y
Really? No skin in the game & your posting every hr on the hr on how evil the stock market is? Yea right! Cover your short position & move on...