7:56 am S&P futures vs fair value: -9.10. Nasdaq futures vs fair value: -19.50. : U.S. equity futures trade sharply lower amid cautions action overseas. The S&P 500 futures trade nine points below fair value with some volatility expected around 8:30 ET when the Nonfarm Payrolls report crosses the wires. The Briefing.com consensus expects the report to reveal the addition of 220,000 payrolls in July.
Reviewing overnight developments:
- Asian markets ended on a lower note. Japan's Nikkei -0.6%, China's Shanghai Composite -0.7%, and Hong Kong's Hang Seng -0.9%
- In economic data:
- China's Manufacturing PMI rose to 51.7 from 51.0 (expected 51.4), while HSBC Manufacturing PMI ticked down to 51.7 from 52.0 (expected 52.0)
- Japan's Manufacturing PMI slipped to 50.5 from 50.8 (expected 50.8)
- South Korea's CPI ticked up 0.1% month-over-month (expected 0.2%, previous -0.1%), while the year-over-year reading increased 1.6%, as expected. Separately, HSBC Manufacturing PMI improved to 49.3 from 48.4 and the trade surplus narrowed to $2.52 billion from $5.50 billion (expected surplus of $2.74 billion)
- Australia's PPI ticked down 0.1% quarter-over-quarter (expected 0.7%, previous 0.9%), while AIG Manufacturing Index rose to 50.7 from 48.9
- In news:
- According to press reports, Japan's Prime Minister Shinzo Abe has considered making changes to his cabinet as early as the first week of September
- In economic data:
- Major European indices trade lower across the board. France's CAC -0.9%, Great Britain's FTSE -1.2%, and Germany's DAX -1.7%. Elsewhere, Italy's MIB -0.2% and Spain's IBEX -1.5%
- Participants received several data points:
- Eurozone Manufacturing PMI ticked down to 51.8 from 51.9 (expected 51.9)
- Germany's Manufacturing PMI fell to 52.4 from 52.9 (expected 52.9)
- Great Britain's Manufacturing PMI slipped to 55.4 from 57.2 (consensus 57.2)
- French Manufacturing PMI inched up to 47.8 from 47.6 (expected 47.6)
- Italy's Manufacturing PMI fell to 51.9 from 52.6 (consensus 52.6)
- Spain's Manufacturing PMI fell to 53.9 from 54.6 (expected 54.7)
- In news:
- Spanish and Italian bonds are on the defensive with Spain's 10-yr yield higher by five basis points at 2.56%, while Italy's benchmark yield is higher by eight basis points at 2.66%
- Participants received several data points:
- ArcelorMittal (MT 14.27, -0.94): -6.2% after missing on earnings and revenue
- Bally Technologies (BYI 81.00, +20.83): +34.6% after agreeing to be acquired by Scientific Games (SGMS 8.54, 0.00) for $83.80/share, representing a 38.4% premium to yesterday's closing price
- Expedia (EXPE 82.00, +2.58): +3.4% after beating earnings and revenue estimates
- GoPro (GPRO 43.30, -4.67): -9.7% despite beating estimates and guiding ahead of the Capital IQ consensus
- Procter & Gamble (PG 78.75, +1.43): +1.9% following its bottom-line beat on below-consensus revenue
- Tesla (TSLA 221.76, -1.54): -0.7% despite beating earnings and revenue expectations
7:55 am Gapping up (:SCANX) : In reaction to strong earnings/guidance: ARNA +26.3%, IMPV +13.7%, AXTI +11.6%, GDOT +8.4%, TNDM +8.1%, SKUL +7%, SWIR +6.6%, LNKD +6.5%, BEAT +5.6%, (light volume), SYNA +5.2%, KCG +5.1%, EXPE +3.8%, IRE +3.7%, MHK +3.2%, AHS +3.1%, DATA +2.3%, WU +1.9%, (light volume), PG +1.8%, MCHP +1.3%, (light volume), CYH +1%, ONNN +0.9%, CTRX +0.9%, AVD +0.7%, (light volume), LNG +0.2%, (light volume), AIV +0.1%, (saw late move higher following early earnings release), .
M&A news: BYI +33.5% (Scientific Games to acquire Bally Technologies in transaction valued at $5.1 billion),IBCA +10.3% (Intervest Bancshares Corp to be acquired by Bank of the Ozarks in an all-stock transaction).
Select oil/gas related names showing strength: STO +0.8%, TOT +0.6%.
Other news: ARRY +8.5% (received orphan drug designation status for binimetinib for the treatment of ovarian cancer),SRPT +2.9% (announces appointment of John Hodgman as interim chairman; also initiated with an Outperform at Oppenheimer),JD +2.5% (trading higher following positive MadMoney mention),FNMA +1.4% (releases June 2014 monthly summary; Book of Business decreased at a compound annualized rate of 1.7% in June),VRTX +0.7% (light volume; receives European approval for KALYDECO (ivacaftor) in eight non-G551D gating mutations; KALYDECO is the first medicine to treat the underlying cause of CF in people with specific non-G551D gating mutations )
Analyst comments: RNA +3.9% (light volume, initiated with an Outperform at Oppenheimer),DV +0.3% (DeVry upgraded to Buy from Hold at Stifel)
7:51 am Independence Realty Trust reports Q2 results in-line (IRT) : Reports Q2 (Jun) earnings of $0.19 per share, in-line with the Capital IQ Consensus Estimate of $0.19; revenues rose 148% year/year to $11.6 mln vs the $11.9 mln consensus.
7:46 am Asian Markets Close: Nikkei -0.6%, Hang Seng -0.9%, Shanghai -0.7% (:SUMRX) :
- It was a sea of red across Asia as all of the major bourses ended in the red following yesterday's carnage on Wall Street.
- Mixed Manufacturing PMI (51.7 actual v. 51.4 expected, 51.0 previous) and HSBC Final Manufacturing PMI (51.7 actual v. 52.0 expected, 52.0 previous) were not enough to keep China's Shanghai Composite (-0.7%) above the breakeven line. Brokerage shares weighed as Citic Securities shed 2.5% and Haitong Securities lost 2.3%.
- Neighboring Hong Kong was also pressured as the Hang Seng (-0.9%) slid off three and a half-year highs. Property names were hit as traders booked profits following the recent rally with Cheung Kong off 4.7% to lead to the downside.
- Across the East China Sea, Japan's Nikkei (-0.6%) fell from six month-highs despite Bank of Japan Governor Haruhiko Kuroda defending the central bank's upbeat economic outlook amid a slowdown in the data. Electronics maker Sony outperformed, up 4.7%, following its better than expected earnings report.
- India's Sensex (-1.6%) pressed lower for the fourth time in five days. Utilities were a drag with NTPC and Tata Power lower by 3.0% and 2.8%, respectively.
- Australia's ASX (-1.4%) tumbled off its best level in more than six years. All of the 'big four' banks saw losses with Westpac down 1.6%, leading the sector's decline.
- Regional Decliners: Singapore -0.9%...Taiwan -0.5%...Malaysia -0.4%...Vietnam -0.4%...South Korea -0.2%...Thailand -0.2%
- Regional Advancers: Philippines +0.4% Closed: Indonesia
- Fx: USDCNY ticked up to 6.1795...USDINR surged to 61.17, the highest in over four months...USDJPY +15 pips @ 102.95...AUDUSD -15 pips @ .9280
7:42 am PNM Resources beats by $0.02, misses on revs; guides FY14 EPS in-line (PNM) : Reports Q2 (Jun) earnings of $0.39 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.37; revenues fell 0.4% year/year to $346.1 mln vs the $356 mln consensus. Co issues in-line guidance for FY14, sees EPS of $1.44-1.51 vs. $1.47 Capital IQ Consensus Estimate.
7:41 am Vista Gold reported a Q2 net loss of ($0.04) vs a net loss of ($0.26) in the prior year's quarter; no revenue. (VGZ) :
- Management is strongly committed to careful cash management and maintaining liquidity.
- The Co's cash burn rate has been dramatically reduced since 2013 as several cash intensive programs at the Mt Todd gold project such as water treatment and preparation of the preliminary feasibility study have been completed.
- In addition, several significant cost cutting measures have been introduced including a reduction of management positions, significant reductions in cash compensation for executives, senior management and the Co's Board of Directors, and the delay or elimination of discretionary programs, including exploration activities.
- Other aggressive cost cutting measures, particularly at the Mt Todd gold project, are being pursued
7:36 am Targa Resources beats by $0.06 (TRGP) : Reports Q2 (Jun) earnings of $0.63 per share, $0.06 better than the Capital IQ Consensus Estimate of $0.57; revenues rose 43% year/year to $2.06 bln vs the $1.88 bln consensus.
7:36 am Heartland Payment Systems misses by $0.03, misses on revs; guides FY14 EPS in-line, revs in-line (HPY) : Reports Q2 (Jun) earnings of $0.58 per share, $0.03 worse than the Capital IQ Consensus Estimate of $0.61; revenues rose 6.5% year/year to $159.4 mln vs the $161.9 mln consensus. Co issues in-line guidance for FY14, sees EPS of $2.33-2.37 vs. $2.36 Capital IQ Consensus Estimate; sees FY14 revs of $645-660 mln vs. $648.35 mln Capital IQ Consensus Estimate.
7:34 am Health Care REIT beats by $0.04, reports revs in-line; raises FY14 FFO in-line (HCN) : Reports Q2 (Jun) funds from operations of $1.06 per share, $0.04 better than the Capital IQ Consensus Estimate of $1.02; revenues rose 21.8% year/year to $826.4 mln vs the $818.9 mln consensus.
- Co issues in-line guidance for FY14, raises FFO to $4.05-4.15 from $4.03-4.13 vs. $4.07 Capital IQ Consensus Estimate.
- "We are adding value to our high-quality portfolio through innovative programs and partnerships to generate consistent and strong same-store NOI growth, which grew 7.7% in our seniors housing operating portfolio and 4.4% in the total portfolio during the second quarter. We also maintain an investment pipeline that delivers consistent quarterly volume from our network of operating partners. The earnings power of our internal and external growth strategy culminated in 14% FFOPS growth and 15% FADPS growth for the quarter. I am proud to lead this special company positioned to continue delivering high-level performance while fulfilling our mission to improve health care delivery in the U.S., Canada and the U.K."
7:34 am Spirit Aerosystems beats by $0.31, beats on revs; raises guidance for FY14 (SPR) : Reports Q2 (Jun) earnings of $1.01 per share, $0.31 better than the Capital IQ Consensus Estimate of $0.70; revenues rose 18.5% year/year to $1.8 bln vs the $1.69 bln consensus. Spirit's backlog at the end of the second quarter of 2014 was approximately $41 billion.
- Co raises guidance for FY14, sees EPS of $2.90-3.05 vs. $2.94 Capital IQ Consensus Estimate; sees FY14 revs of $6.7-6.9 bln vs. $6.72 bln Capital IQ Consensus Estimate.
7:32 am Drew Industries misses by $0.07, beats on revs (DW) : Reports Q2 (Jun) earnings of $0.77 per share, $0.07 worse than the Capital IQ Consensus Estimate of $0.84; revenues rose 12.1% year/year to $321.78 mln vs the $318.4 mln consensus.
7:32 am CBOE Holdings reports EPS in-line, revs in-line (CBOE) : Reports Q2 (Jun) earnings of $0.50 per share, in-line with the Capital IQ Consensus Estimate of $0.50; revenues fell 4.6% year/year to $143.9 mln vs the $143.59 mln consensus.
- "While second-quarter results reflected lackluster trading volume industry-wide and muted market volatility, CBOE posted solid financial results and continued to deliver long-term value, both to our shareholders and market participants... We were pleased to increase our quarterly dividend as well as our share repurchase authorization and are very encouraged with the response to our extended trading hours for VIX futures, which now trade nearly 24 hours a day, five days a week. Moreover, we continued to advance our strategic growth initiatives so that CBOE is well positioned to benefit in more favorable market conditions."
- The company announced that, in light of the subdued trading volumes, it is taking steps to reduce expenses. Based on these actions and year-to-date results, the company is lowering its guidance for core operating expenses for the 2014 fiscal year. The company now expects core expenses to be in the range of $186.0 million to $190.0 million, down from its previous guidance of $191.0 million to $196.0 million.
- Capital expenditures are still expected to be in the range of $47.0 million to $50.0 million.
- Depreciation and amortization expense is still expected to be in the range of $38.0 million to $40.0 million.
7:32 am Montage Tech announces shareholder approval for acquisition by Shanghai Pudong Science and Technology Investment (MONT) : Co announced the results of its extraordinary general meeting of shareholders held on July 31, 2014 in Shanghai, China. Shareholders voted to approve the Agreement and Plan of Merger, dated June 11, 2014, under which Shanghai Pudong Science and Technology Investment, a wholly state-owned limited liability company directly under Pudong New Area government of Shanghai, will acquire all of the outstanding ordinary shares of Montage for $22.60 per ordinary share by way of a merger.
7:31 am Soligenix receives additional NIAID funding to advance development of OrbeShield in GI ARS; awarded $2.1 mln in additional funding (SNGX) : Co announced today that the National Institute of Allergy and Infectious Diseases has exercised its option to advance preclinical development of OrbeShield:
- The 12-month option provides an additional $2.1 million to Soligenix to advance OrbeShield as a medical countermeasure for the treatment of gastrointestinal acute radiation syndrome.
- Soligenix's GI ARS program is supported by contract awards from both the Biomedical Advanced Research Development Authority and NIAID, totaling up to approximately $32 million
7:31 am FARO Techs announces acquisition of The CAD Zone to expand presence in the law enforcement products and services market; financial terms not disclosed (FARO) : Co announced it has acquired The CAD Zone, Inc., a leading software provider in the law enforcement accident and crime scene reconstruction market. CAD Zone's point cloud software application will be integrated with FARO's laser scanning technology to provide turnkey solutions for crime scene and other forensic applications.
- "While law enforcement is a relatively small vertical market for FARO today, we believe it represents a significant opportunity for the right 3D documentation solution and our acquisition of CAD Zone takes a major step forward in creating that offering," stated Jay Freeland, FARO's President and CEO.
7:30 am Intelli-Check wins $333K contract to provide ID card readers to Washington State Ferries (IDN) : Co announced it was been awarded a $333K contract to provide 33 IM2610 TWIC Plus portable hand held readers to the Washington State Ferries, operated by the Washington State Department of Transportation.
- Installation, which began this week, is expected to be completed by late August.
7:30 am On The Wires (:WIRES) :
- In accordance with Rule 2.10 of the Irish Takeover Panel Act, 1997, Takeover Rules 2013, Chiquita Brands International, Inc. (CQB) confirms that as of July 31, 2014 its issued share capital comprised 46,917,581 common shares, par value $0.01/share.
- China Ming Yang Wind Power (MY) announced that its MY1.5-89 wind turbine has obtained the GL 2010 Type Certification issued by DNV-GL Group.
- The Howard Hughes (HHC) announced that Larry H. Miller Megaplex Theatres has signed on as a major entertainment anchor at Cottonwood, a 57-acre mixed-use redevelopment located only eight miles from downtown Salt Lake City.
- MedWest Haywood and Duke LifePoint Healthcare have finalized Duke LifePoint's (LPNT) acquisition of the 169-bed medical center and its affiliated assets, and Duke will will invest a minimum of $36 mln in capital improvements.
- The Texas Health and Human Services Commission has selected Accenture (ACN) to serve as lead Medicaid vendor upon the termination of the current prime contractor on August 1, 2014. The contract has a three-year base period, with two one-year extension options.
7:28 am Weak PMI Data Weighs on Sterling: 10-yr: -05/32..2.582%..USD/JPY: 102.94..EUR/USD: 1.3392 (:SUMRX) :
- The Dollar Index has given up its early gains and hovers little changed near 81.45.
- Action over the past couple of sessions has struggled to claim the 81.50 level as trade holds at 10-month highs.
- EURUSD is +10 pips @ 1.3400 as trade continues its attempt to put in a tradable bottom near the November lows. Today's small bid has developed despite the weak Italian (51.9 actual v. 52.8 expected, 52.6 previous) and Spanish (53.9 actual v. 54.8 expected, 54.6 previous) Manufacturing PMI figures. The bulls have their sights set on reclaiming the key 1.3500 level.
- GBPUSD is -50 pips @ 1.6835 as trade presses lower for the twelfth time in thirteen sessions. Manufacturing PMI (55.4 actual v. 57.2 expected, 57.2 previous) was the latest number to miss estimates, causing trade to drop below the 100 dma for the first time in a year. Support near 1.6800 should provide some help at one and a half-month lows. Click here to see a daily GBPUSD chart.
- USDCHF is -10 pips @ .9075 as action slips off its best levels of 2014. The pair has been limited to a tight 20 pip range as Swiss banks are closed in observation of Independence Day.
- USDJPY is +15 pips @ 102.95 as trade looks for its eleventh gain in twelve sessions. The early bid comes following overnight comments from Bank of Japan Governor Haruhiko Kuroda, which defended the central bank's upbeat assessment of the economy despite the recent slowdown in the data. Any positive close will be the best since the beginning of April.
- AUDUSD is -15 pips @ .9280 as sellers remain in control for the sixth time in seven sessions. The early weakness comes following the tame PPI (-0.1% QoQ actual v. 0.7% QoQ expected) print, and has the pair at its lowest levels since the start of June. The .9200 area will be key as support there is guarded by the 200 dma. USDCNY ticked up to 6.1795 following the mixed Manufacturing PMI (51.7 actual v. 51.4 expected, 51.0 previous) and HSBC Final Manufacturing PMI (51.7 actual v. 52.0 expected, 52.0 previous) numbers.
- USDCAD is +35 pips @ 1.0940 as trade climbs for the sixth time in seven days. Buying over the past two weeks has lifted the pair off its lowest levels of 2014 and has action contending with three-month highs.
7:22 am Bally Technologies to be acquired by Scientific Games (SGMS) for $83.30/share in cash; transaction expected to be immediately accretive to Scientific Games' EPS and cash flow (BYI) : Cos announced that the companies have entered into a definitive merger agreement whereby Scientific Games (SGMS) has agreed to acquire all of the outstanding Bally common stock for $83.30 in cash per share, which represents a 38 percent premium to Bally's closing stock price on July 31, 2014. The aggregate transaction value is ~ $5.1 bln, including the refinancing of ~ $1.8 bln of existing Bally net debt. The transaction was unanimously approved by the boards of directors of the two companies.
- Scientific Games would acquire all of the outstanding shares of Bally for $83.30 per share in cash, for a total transaction value of ~ $5.1 bln, including net debt of ~ $1.8 bln. The acquisition would be financed with debt and cash on hand and Scientific Games has obtained committed debt financing for the transaction, which is not subject to a financing contingency.
- The acquisition is subject to customary closing conditions, including receipt of Bally shareholder approval and antitrust and gaming regulatory approvals, and is currently expected to be completed in early 2015. Scientific Games and Bally are both licensed in more than 300 gaming jurisdictions worldwide, which is expected to help facilitate obtaining the required gaming regulatory approvals.
- Scientific Games expects to achieve the anticipated $220 mln of cost synergies and $25 mln of capital expenditure savings by consolidating operations and generating efficiencies in the areas of manufacturing, engineering, field and customer service and administrative operations. Scientific Games anticipates incurring $75 mln of costs to achieve the cost synergies and $40 mln in capital costs to complete the integration of the companies.
7:17 am Ruth's Hospitality Group reports EPS in-line, misses on revs (RUTH) : Reports Q2 (Jun) earnings of $0.20 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of $0.20; revenues rose 2.4% year/year to $102.9 mln vs the $104.78 mln consensus.
- Company-owned comparable restaurant sales for Ruth's Chris Steak House increased 2.8%.
- Company-owned comparable restaurant sales for Mitchell's Fish Market declined 0.7%.
- "We remain pleased with the overall strength of our business, and in particular, the ongoing sales momentum of the Ruth's Chris Steak House brand. Led by continued traffic gains, comparable sales at Ruth's grew for the 17th consecutive quarter, which helped to offset considerable beef cost headwinds." O'Donnell continued, "Looking ahead to the second half of the year, we are well-positioned to maintain our sales momentum. Our development pipeline continues to strengthen and will include the opening of three new Company-owned Ruth's Chris Steak Houses this year, one of which has already opened, and three franchisee-owned restaurants. Longer-term, we will continue to maintain a balanced shareholder return plan that includes reinvesting in our existing business, investing in high return new restaurant development and long-term capital decisions that include a mix of dividends, debt reduction, and share repurchases."
- FY14 Guidance: Based on current information, Ruth's Hospitality Group, Inc. is reiterating its previously announced full year 2014 outlook: Cost of goods sold of 31.0% to 33.0% of restaurant sales, Restaurant operating expenses of 49.0% to 51.0% of restaurant sales,
7:16 am Shanghai...-0.7% :
7:16 am S&P futures vs fair value: -11.00. Nasdaq futures vs fair value: -26.50. :
7:16 am European Markets : FTSE...6631.26...-98.90...-1.50%. DAX...9219.30...-188.20...-2.00%.
7:16 am Asian Markets : Nikkei...15523.11...-97.70...-0.60%. Hang Seng...24532.43...-224.40...-0.90%.
7:14 am Targa Resources Partners beats by $0.21, misses on revs; announces management changes (NGLS) : Reports Q2 (Jun) earnings of $0.64 per share, $0.21 better than the Capital IQ Consensus Estimate of $0.43; revenues rose 43.0% year/year to $2.06 bln vs the $2.16 bln consensus.
Co announced today that Rene R. Joyce has elected to retire as Executive Chairman of TRC and of the general partner of the Partnership, effective December 31, 2014. He will continue to serve as a director of both companies. Roy E. Johnson, also a founding executive and a key to the Targa vision and success story, has elected to retire effective December 31, 2014 as well.
TRC and the Partnership also announced today that James W. Whalen will assume the role of Executive Chairman of TRC and of the general partner of the Partnership, effective January 1, 2015. Mr. Whalen, who will remain on the management team, has served as a director of TRC and its predecessor companies since 2004 and as a director of the general partner of the Partnership since 2007.
7:12 am WisdomTree beats by $0.08, reports revs in-line (WETF) : Reports Q2 (Jun) earnings of $0.15 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus Estimate of $0.07; revenues rose 18.2% year/year to $44.1 mln vs the $44.1 mln consensus.
- "Gross margin for our US listed ETFs, which is our total revenues less fund management and administration expenses and third party sharing arrangements, was 82.4% in the second quarter of 2014 as compared to 74.5% in the second quarter of 2013 and 78.6% in the first quarter of 2014."
- "We recorded top line revenue growth of 18% with a 77% increase in pre-tax income in our US business despite the challenging flows this quarter. We are clearly demonstrating the efficiency, power and potential of our business model. Since the first quarter, we showed a nearly 5% improvement in our gross margin to 82.4% for our US business. Including our new European entity, we reported a record 45.6% pretax margin on a base of $34 billion in average AUM. Our business and our balance sheet have never been stronger. With $141 million in cash and investments, WisdomTree is in a position of strength to invest for future growth."
7:12 am Enbridge beats by $0.01; reaffirms FY14 EPS guidance (ENB) : Reports Q2 (Jun) earnings of CC$0.40 per share, C$0.01 better than the Capital IQ Consensus Estimate of C$0.39.
- Co reaffirms guidance for FY14, sees EPS of C$1.84-2.04 vs. C$1.96 Capital IQ Consensus Estimate.
- The results were in line with management's expectation, matching the prior year's exceptionally strong first half. The Company remains on track to achieve its 2014 full year adjusted earnings per share guidance range.
7:11 am Burger King beats by $0.02, reports revs in-line; increases dividend (BKW) : Reports Q2 (Jun) earnings of $0.25 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.23; revenues fell 6.1% year/year to $261.2 mln vs the $260.53 mln consensus. On July 31, 2014, the Company's Board of Directors approved an increase in the quarterly dividend to $0.08 per share for the third quarter.
7:10 am Citigroup to sell 80% of its $1.5 bln limited partnership interest in Metalmark Capital Partners II to Lexington (C) : Co and Lexington Partners announced that they have entered into a definitive agreement whereby Citi will sell 80% of its $1.5 billion limited partnership interest in Metalmark Capital Partners II to Lexington. As part of the previously announced revision of the business relationship between Citi and Metalmark in Dec 2013, Citi will offer 20% of its limited partnership interest to existing MCP II limited partners. Terms of the transaction, which is expected to close in the fourth quarter of 2014, are not being disclosed.
7:09 am Procter & Gamble beats by $0.04, misses on revs; guides FY14 EPS in-line (PG) : Reports Q4 (Jun) core earnings of $0.95 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.91; revenues fell 0.7% year/year to $20.16 bln vs the $20.48 bln consensus.
- Co issues in-line guidance for FY14, sees EPS of mid single digits (cons +3.9%) vs. $4.21 Capital IQ Consensus Estimate.
- "We met our objectives in a very difficult operating environment, delivered strong constant currency earnings growth, and built on our strong track record of cash returns to shareholders. Still, we have more work to do to deliver the profitable sales growth and strong cash productivity we are capable of delivering. We will discuss our going-forward strategy and plans to further strengthen our results during our earnings call this morning."
- Guidance Details: P&G expects organic sales growth in the low-to-mid single digit range in fiscal year 2015. Net sales growth is expected to be in the low single digit range, including a negative one point impact from foreign exchange.
7:09 am Moneygram beats by $0.08, reports revs in-line (MGI) : Reports Q2 (Jun) earnings of $0.40 per share, $0.08 better than the Capital IQ Consensus Estimate of $0.32; revenues rose 2.0% year/year to $368.8 mln vs the $370.41 mln consensus.
- The Company continues to estimate full-year constant currency revenue growth to be in the range of 1 to 3 percent and estimates full-year constant currency Adjusted EBITDA growth to be in the range of 0 to 2 percent.
- "MoneyGram faced significant headwinds in the quarter particularly in our U.S.-to-U.S. business. While our growth is not at our historically high levels, we did continue to see particularly strong performance in our U.S. outbound business, self-service channels and emerging markets. We also continued to strengthen our core money transfer business through key agent signings. With the renewal of CVS and Canada Post, we have now secured seven of our top ten send agents until the second quarter of 2017, with several through 2020," said Pamela H. Patsley, MoneyGram's chairman and CEO. "We were also pleased to resolve additional legacy matters in the quarter, recognizing a significant cash gain. These settlements, along with our consistent cash flow, will be strategically reinvested in the business, including through a newly-reaffirmed share repurchase authorization. We are committed to building long-term shareholder value."
7:03 am Cambrex beats by $0.35, beats on revs; guides FY14 EPS above consensus (CBM) : Reports Q2 (Jun) earnings of $0.63 per share, excluding non-recurring items, $0.35 better than the Capital IQ Consensus Estimate of $0.28; revenues rose 59.2% year/year to $98 mln vs the $87.57 mln consensus.
- Co issues upside guidance for FY14, sees EPS of $1.07-1.15 vs. $1.01 Capital IQ Consensus Estimate.
- Co raises sales growth expectation to 13-16% from 8-12%.
- Co raises EBITDA guidance to $74-78 mln from $70-76 mln.
- Co announced that it has entered into a credit facility with Hercules Technology Growth Capital (HTGC) and its affiliate lenders. The credit facility provides for up to $25 million of loans.
- Co drew a first tranche of $10 million at the closing of the new credit facility. A second tranche of up to $15 million can be drawn, at Celladon's option, prior to May 31, 2015. This option may be exercised if data from the ongoing Phase 2b trial of MYDICAR supports the continued development of MYDICAR for its Breakthrough Therapy indication to either a Phase III study or registration for approval, as reasonably determined by Celladon's senior management and board of directors. Co expects to report results from the Phase 2b trial in April 2015.
- Co plans to use the proceeds from the credit facility to provide additional funding for the development of MYDICAR, for other development programs in its pipeline, and for general corporate purposes.
7:02 am Hutchinson Tech. beats by $0.02, reports revs in-line (HTCH) : Reports Q3 (Jun) loss of $0.32 per share, $0.02 better than the Capital IQ Consensus Estimate of ($0.34); revenues fell 2.4% year/year to $59.8 mln vs the $60.32 mln consensus.
- Gross profit in the fiscal 2014 third quarter was $3.6 million, or 6% of net sales, compared with $5.9 million, or 10% of net sales, in the preceding quarter.
- The company expects its suspension assembly shipments in the fiscal 2014 fourth quarter to be 110 million to 115 million as customers' production plans for hard disk drives increase and the company's participation on customers' programs improves. Fourth quarter average selling price is expected to be relatively flat sequentially with DSA suspension assemblies accounting for 25% to 30% of fourth quarter shipments.
- The company expects fourth quarter gross profit to increase on a sequential basis as higher shipments and the benefits of cost reductions are partially offset by a reduction in finished goods inventories.
7:02 am ISIS Pharm initiates Phase 3 study of ISIS-SMN Rx in infants with spinal muscular atrophy; dosage of first infant will trigger $18 mln milestone payment (ISIS) : Co announced the initiation of a pivotal Phase 3 study evaluating ISIS-SMNRx in infants with spinal muscular atrophy, the most common genetic cause of infant mortality.
- Isis plans to dose the first infant in this study within the next few weeks, at which time Isis will earn an $18 million milestone payment from its development partner, Biogen Idec. (BIIB)
- The Phase 3 study, ENDEAR, is the first of several planned studies in a broad and comprehensive late-stage clinical development program for ISIS-SMNRx.
- Isis plans to initiate a second pivotal study in children with SMA later this year.
7:01 am Biota Pharma reports top-line data From its Phase 2 IGLOO trial of Laninamivir Octanoate; neither the 40 mg or 80 mg cohort achieved a statistically significant reduction in the median time to alleviation of influenza symptoms; Stock is halted (BOTA) : Co announced top-line data from a randomized, double-blind, placebo-controlled, parallel-arm Phase 2 clinical trial comparing the safety and efficacy of a 40 mg and 80 mg dose of laninamivir octanoate to placebo:
- Of the 639 patients enrolled, 248, or 39%, had PCR confirmed influenza A or B virus and were included in the intent-to-treat efficacy analyses.
- Approximately 75% and 19% of the influenza-confirmed patients were infected with influenza A H1N1 2009 and H3N2, respectively, with 6% being infected with influenza B.
- As compared to placebo, neither the 40 mg or 80 mg cohort achieved a statistically significant reduction in the median time to alleviation of influenza symptoms as measured by the Flu-iiQ patient-recorded outcome questionnaire (p=0.248 and p=0.776, respectively), which was the primary endpoint of the study.
- Patients in both the 40 mg (p
- In addition, a statistically significant proportion of patients in both the 40 mg (p=0.002) and 80 mg (p=0.020) cohorts were culture negative on Day 3 of the study as compared to placebo.
- The co plans to provide a detailed update on the full efficacy and safety results of the Phase 2 IGLOO trial, the status of the LANI program and its corporate strategy during its fourth quarter and fiscal year-end earnings call in early September.
6:53 am Pepco Hldgs beats by $0.02, misses on revs; reaffirms FY14 EPS guidance (POM) : Reports Q2 (Jun) earnings of $0.28 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.26; revenues rose 6.1% year/year to $1.12 bln vs the $1.51 bln consensus.
- Co reaffirms guidance for FY14, sees EPS of $1.12-1.27 vs. $1.22 Capital IQ Consensus Estimate.
- Power Delivery electric sales were 11,175 gigawatt hours in the second quarter of 2014, compared to 11,172 GWh for the same period in 2013. In the electric service territory, cooling degree days decreased by 5 percent for the three months ended June 30, 2014, compared to the same period in 2013. Weather-adjusted electric sales were 11,136 GWh in the second quarter of 2014, compared to 11,041 GWh for the same period in the prior year.
6:48 am Perion Network announced new 3 year agreement with MSFT's Bing (PERI) : Co announced that it has signed a 3 year agreement with Microsoft's (MSFT) Bing, extending its existing partnership, starting January 1, 2015 through December 31, 2017. Upon mutual agreement, the agreement may be renewed for 2018 as well. The agreement includes desktop and tablet distribution with limited exclusivity in the United States as well as mobile distribution.
6:45 am On The Wires (:WIRES) :
- Citi's (C) Issuer Services business, acting through Citibank N.A., has been appointed by Reed Elsevier PLC (RUK) and Reed Elsevier NV (ENL) as successor depositary bank for their NYSE listed American Depositary Receipt programmes.
- IEC Electronics (IEC) announced that its Board of Directors has adopted a Tax Benefit Preservation Plan in an effort to preserve the value of its net operating loss carry forwards under Section 382 of the Internal Revenue Code.
- MakerBot, a subsidiary of Stratasys (SSYS) announced the expansion of its international operations with the launch of MakerBot Europe.
6:43 am Royal Dutch Shell acknowledged outcome of Woodside Petroleum's (WOPEY) shareholders' negative vote on selective buy-back proposal announced June 17 2014; Shell is reviewing its options in relation to its remaining 13.6% holding in Woodside (RDS.A) :
6:43 am NIDEC announces the status of own share repurchase (NJ) : Co announced the status of the it's own share repurchase under its ongoing repurchase plan resolved at a meeting of the Board of Directors held on March 8, 2014, pursuant to Article 459, Paragraph 1, Item 1 of the Company Law of Japan.
Details of Share Repurchase:
- Period of own share repurchase: From July 1, 2014 through July 31, 2014
- Class of shares: Common stock
- Number of own shares repurchased: 0
- Total repurchase amount: 0 yen
6:40 am CGG: contribution of CGG's North America Land contract business to Geokinetics (GEOKQ) (CGG) : Co announced that it has signed a binding agreement with Geokinetics (GEOKQ), one of the largest independent international land and shallow water seismic companies, for the contribution by CGG of its North American Land Contract assets and activities (excluding its land multi-client and monitoring businesses) against a minority equity stake in Geokinetics.
- This combination is expected to secure Geokinetics' position as a market leader in the North America Contract business.
- This transaction is expected to be finalized by end of October 2014.
6:39 am Qihoo 360 Tech. priced private placement of $450 mln principal amount of convertible senior notes due 2020 and $450 mln principal amount of convertible senior notes due 2021 (QIHU) : The notes will be convertible into Qihoo 360's ADSs, every two ADSs representing as of the date above three Class A ordinary shares of Qihoo 360, based on an initial conversion rate of 7.9789 ADSs per $1,000 principal amount of the 2020 notes (equivalent to an initial conversion price of ~ $125.33 per ADS) and an initial conversion rate of 8.2799 ADSs per $1,000 principal amount of the 2021 notes (equivalent to an initial conversion price of ~ $120.77 per ADS). The initial conversion rates for the 2020 notes and 2021 notes represent conversion premiums of ~ 37.5% and 32.5%, respectively, over the NYSE last reported sale price of the ADSs on July 31, 2014, which was $91.15 per ADS.
6:38 am Hill International priced public offering of common stock at $4.25/share after hours; intends to initially keep $10.0 mln of the net proceeds as cash or cash equivalents and to use the balance of the net proceeds from the offering (HIL) : Co announced the pricing of an underwritten public offering of 8.5 mln shares of its common stock, offered at a price to the public of $4.25 per share. The company has granted the underwriters a 30-day option to purchase up to an aggregate of 1.275 mln additional shares of common stock to cover overallotments, if any. All of the shares in the offering are to be sold by the company. The offering is expected to close on or about August 6, 2014, subject to customary closing conditions.
- KeyBanc Capital Markets Inc. is acting as sole book-running manager in connection with the offering.
- The company intends to initially keep $10.0 mln of the net proceeds as cash or cash equivalents and to use the balance of the net proceeds from the offering to meet certain of its obligations and repay a portion of its outstanding indebtedness under its existing credit facilities.
6:36 am Exelis beats by $0.01, reports revs in-line; guides FY14 EPS in-line, revs in-line (XLS) : Reports Q2 (Jun) earnings of $0.34 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.33; revenues fell 10.7% year/year to $1.12 bln vs the $1.12 bln consensus.
- Co issues in-line guidance for FY14, sees EPS of $1.44-1.50 vs. $1.48 Capital IQ Consensus Estimate; sees FY14 revs of $4.5 bln vs. $4.54 bln Capital IQ Consensus Estimate.
- The company secured $1.2 billion in funded orders during the second quarter of 2014, including significant new business in several of its strategic growth platforms, along with orders from a variety of international customers.
6:36 am LDK Solar secures funding commitments for its offshore restructuring (LDKSY) : Co and its Joint Provisional Liquidators ("JPLs"), Tammy Fu and Eleanor Fisher, both of Zolfo Cooper (Cayman), today announced that LDK Solar has secured funding commitments to enable the offshore restructuring to continue to be progressed. The JPLs now intend to seek sanction of the Grand Court of the Cayman Islands to the terms of the funding commitments and certain amendments to restructuring support agreements previously approved by the Cayman Court. The JPLs also provided an update on the progress of the restructuring in light of recent positive developments in the course of the Company's offshore restructuring.
- On June 27, 2014, the JPLs confirmed that they continued to consider and progress discussions with a number of parties in respect of the provision of funding required to meet the agreed commitments pursuant to the restructuring support agreement relating to the 10% Senior Notes due 2014, the restructuring support agreement relating to the convertible preferred shares of an affiliate of the Company and involving claims against the Company, as well as the costs of the offshore restructuring process and the forecast offshore working capital requirements of the Company.
- On July 15, 2014, the JPLs received a binding commitment from Heng Rui Xin Energy for $10 million in cash and $14 million for working capital financing in connection with the Company's offshore restructuring. In addition, the Company and the JPLs have identified a further $5 million of funding which is to be committed by certain subsidiaries of the Company to the offshore restructuring. Subject to approval by the Cayman Court, the JPLs now consider that these funding commitments will be sufficient to meet the Exit Financing requirements of the offshore restructuring.
- Since their announcement on June 27, 2014 and in addition to the Exit Financing, the JPLs have also received an additional $3.2 million of interim financing for the provisional liquidation from the partial repayment of outstanding intercompany receivables.
- As a result of the challenges in raising the Exit Financing and the resultant delay in the timetable for completing the restructuring, LDK Solar and the JPLs have reached agreements with the Ad-Hoc Committee for the Company's 10% Senior Notes due 2014, over 79% of the holders of the convertible preferred shares of an affiliate of the Company involving claims against the Company and a majority of shareholders of the Company to certain amendments to the Senior Notes RSA and the Preferred Obligations RSA.
6:35 am Genworth Financial provides additional disclosure on long term care insurance (GNW) : Co announced on July 29, 2014 that it is conducting a comprehensive review of its long term care insurance claim reserves. Many of the co's investors have asked for additional information about the last in-depth review of the claims reserve, which was conducted in 2012. The co cannot predict how the results of the current review will compare with the results of its review in 2012.
- As a result of the 2012 claims review, the co established refinements to its claim reserves to reflect how a claim transitions by diagnosis and care facility, trends in benefit utilization, and refinements to claim terminations. The impact to GAAP claim reserves as a result of the new methodology was an increase to reserves of ~ $166 mln as of September 30, 2012.
- Separately, the co also made changes to claim reserves to appropriately reflect waiver of premium benefit, shared policies where both lives are on claim, reinsurance on incurred but not reported claims, and the valuation interest rate.
- The impact to GAAP claim reserves as a result of these changes was a decrease to reserves of ~ $165 mln as of September 30, 2012.
- The net impact to GAAP claim reserves as a result of the 2012 claims review was a net increase to reserves of ~ $1 mln as of September 30, 2012.
6:33 am Immunogen reports FY14 EPS in-line, revs above consensus; guides FY15 revs above consensus (IMGN) : Co reports FY14 loss of $0.83 vs. ($0.83) Capital IQ Consensus Estimate; FY14 revs of $59.90 mln vs. $63.07 mln Capital IQ Consensus Estimate.
- Co issues upside guidance for FY15, sees FY15 revs of $100-105 mln vs. $70.16 mln Capital IQ Consensus Estimate.
- Sees operating expenses to be between $160 million and $165 million; its net loss to be between $60 million and $65 million; its cash used in operations to be between $55 million and $60 million; and its capital expenditures to be between $7 million and $9 million.
- Cash and marketable securities at June 30, 2015 are anticipated to be between $75 million and $85 million.
6:32 am Alexion Pharma: European Commission grants Orphan Drug designation to Soliris (eculizumab) for the treatment of patients with Myasthenia Gravis (MG) (ALXN) : announced that the European Commission has granted orphan drug designation to Soliris (eculizumab) for the treatment of patients with Myasthenia Gravis, a rare, debilitating neurologic disorder caused by uncontrolled complement activation. In patients with MG, uncontrolled complement activation due to antibodies directed at the neuromuscular junction can ultimately lead to profound and debilitating weakness of various muscle groups throughout the body.
6:32 am Illumina provides additional information about UKs fight against cancer and DNA testing (ILMN) : The Prime Minister is unveiling a new partnership between Genomics England and the company Illumina that will deliver infrastructure and expertise to turn the plan into reality. As part of this, Illumina's services for whole genome sequencing have been secured in a deal worth around 78 mln.
- The Prime Minister has pledged that the UK will map 100,000 human genomes by 2017.
- In turn, Illumina will invest around 162 mln into the work in England over four years, creating new knowledge and jobs in the field of genome sequencing. The investment will not only help the life science industry to thrive, but potentially create opportunities for talented UK scientists to lead the world. It will also pave the way for all NHS patients to eventually benefit from this exciting new technology.
6:31 am William Lyon Homes priced a private offering of $300 mln in aggregate principal amount of 7.00% senior notes due 2022 through its subsidiary, WLH PNW Finance (WLH) :
6:30 am American DG Energy priced public offering of 2.65 mln shares of common stock at $1.51 and warrants to purchase up to the same number of shares of common stock at a per warrant price of $.0001 (ADGE) :
6:29 am VTTI Energy Partners (NYSE: VTTI) priced 17.5 mln unit IPO at $21.00 per unit, at high end of the $19-21 expected range (:IPOXX) :
6:28 am Standard Pacific Correction: SPF beat EPS and revenue consensus -- prior comment has been edited (SPF) : Reports Q2 (Jun) earnings of $0.14 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.13; revenues rose 35.1% year/year to $592.5 mln vs the $555.1 mln consensus. (Our prior comment contained inaccurate consensus estimates.)
6:24 am Oil States reported Q2 EPS of $0.88 vs $0.85 Capital IQ Consensus Estimate; revs $459.6 mln vs $490.10 mln Capital IQ Consensus Estimate (OIS) :
6:23 am Mobileye N.V. (NYSE: MBLY) priced 35,589,000 share IPO (27,264,000 by selling shareholders) at $25.00 per share, above the $21-23 expected range (:IPOXX) : The co originally planned to offer 27.75 mln shares but revised the IPO to 35.59 mln.
6:21 am Tesco beats by $0.01, reports revs in-line (TESO) : Reports Q2 (Jun) earnings of $0.29 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.28; revenues rose 12.5% year/year to $145.1 mln vs the $143.9 mln consensus.
- "We continue to see positive trends for top drive sales and bookings in 2014, and we believe expected new top drive shipments in 2014 could approach 2012 levels, primarily from stronger demand from North American and Asian customers. This is supported by a current backlog of 55 units valued at $65 million. Top drive rental utilization and revenue also improved sequentially as activity levels in Mexico increased."
6:20 am Catamaran beats by $0.03, beats on revs; raises bottom end of EPS and revenue guidance for FY14 (CTRX) : Reports Q2 (Jun) earnings of $0.54 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.51; revenues rose 57.6% year/year to $5.39 bln vs the $5.01 bln consensus.
- Co issues raised guidance for FY14, raises bottom end of EPS to $2.12-2.22 from $2.10-2.22 vs. $2.19 Capital IQ Consensus Estimate; raises bottom end of FY14 revs to $20.5-21.0 bln from $20-21 bln vs. $20.73 bln Capital IQ Consensus Estimate.
- Q2 2014 EBITDA increased $30.4 million, or 19%, to $188.5 million, compared to $158.1 million in Q2 2013. YTD 2014 EBITDA increased $57.8 million, or 19%, to $359.4 million, compared to $301.6 million in YTD 2013.
- "The second quarter results reflect our continued success in offering a flexible and scalable alternative within the PBM industry. The Catamaran team continues to execute on multiple strategic efforts, including developing the very best service offering to our clients, integrating the Cigna partnership and Restat acquisition as well as pursuing new opportunities for growth. We continue to build upon our foundation for continued record financial results," FY14: Co EBITDA of $770 to $800 million.
6:17 am Church & Dwight beats by $0.03, reports revs in-line; guides Q3 EPS below consensus; reaffirms 2014 sales/EPS guidance (CHD) : Reports Q2 (Jun) earnings of $0.65 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.62; revenues rose 2.6% year/year to $808.3 mln vs the $805.85 mln consensus.
- Co sees Q3 EPS of $0.80-0.82 vs. $0.88 Capital IQ Consensus Estimate; sees gross margin contracting by 150 bps behind higher trade spending, coupon redemptions on our new products and more competitive pricing in the laundry category, as well as negative business mix.
- 2014 outlook:
- Reaffirms 2014 EPS range of 7 to 9% growth, despite unprecedented price competition in the laundry category.
- Continues to expect organic sales growth to be approximately 3%.
- Gross margin is expected to be approximately 75 bps lower than last year (the high-end of previous 50 to 75 bps outlook) due to higher trade promotions to address the price competition and to support the launch of our new products. They continue to expect operating margin expansion from rigorous control of SG&A.
- They expect the second half of the year to drive the majority of earnings growth, as the first half included a significant increase in slotting, couponing, trade promotions, and incremental marketing support for our new product launches.
6:14 am Gentherm beats by $0.10, beats on revs; raises FY14 revs above consensus (THRM) : Reports Q2 (Jun) earnings of $0.46 per share, $0.10 better than the Capital IQ Consensus Estimate of $0.36; revenues rose 28.5% year/year to $206.2 mln vs the $190.51 mln consensus.
- Co issues raised guidance for FY14, sees FY14 revs of at least 20% or ~$786.40 mln from prior of +10-15% vs. $784.93 mln Capital IQ Consensus Estimate.
- "The excellent results in this year's second quarter followed a very strong first quarter and capped off an exceptional first six months of 2014. We achieved record levels of revenue and profit in both periods and every one of our operations met or exceeded its goals. Revenues for this year's second quarter were again driven by a significant year-over-year increase in sales of our Climate Control systems. Operational efficiencies continued to increase in the first half of this year, and our gross margins improved significantly year over year and were again at the high end of our expected range."
6:12 am Arena Pharm beats by $0.14, beats on revs (ARNA) : Reports Q2 (Jun) earnings of $0.03 per share, $0.14 better than the Capital IQ Consensus Estimate of ($0.11); revenues fell 81.4% year/year to $12.8 mln vs the $9.17 mln consensus, of which $3.1 million represented 31.5% of Eisai's net product sales and $0.4 million related to redemptions of the 15-day free trial voucher. Eisai recorded net product sales for BELVIQ of $9.9 million in the second quarter of 2014. At June 30, 2014, cash, cash equivalents and short-term investments available-for-sale totaled $219.1 million.
- IMS Health estimates that approximately 110,000 prescriptions for BELVIQ were filled in the second quarter of 2014, representing growth of approximately 43% in total prescriptions as compared to the previous quarter.
6:10 am Weyerhaeuser beats by $0.05, misses on revs (WY) : Reports Q2 (Jun) earnings of $0.40 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.35; revenues rose 4.8% year/year to $1.96 bln vs the $2.27 bln consensus.
- TIMBERLANDS 3Q 2014 Outlook - Weyerhaeuser anticipates significantly lower earnings from the Timberlands segment in the third quarter, primarily due to seasonality and lower earnings from disposition of non-strategic timberlands. In the West, the company expects seasonally lower sales volumes and prices for domestic and export logs. In the South, the company anticipates higher silviculture and road costs, largely offset by increased fee harvest volumes.
- WOOD PRODUCTS 3Q 2014 Outlook - Weyerhaeuser expects comparable earnings from the Wood Products segment in the third quarter. The company anticipates slightly lower average realizations for lumber and oriented strand board, offset by lower Western log costs and improved price realizations for engineered wood products.
- CELLULOSE FIBERS 3Q 2014 Outlook - Third quarter results will include a net gain of approximately $1 billion on the divestiture of WRECO.
6:07 am Genesee & Wyoming beats by $0.01, reports revs in-line (GWR) : Reports Q2 (Jun) earnings of $1.12 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $1.11; revenues rose 3.5% year/year to $414.6 mln vs the $410.92 mln consensus.
- "Our second quarter financial results were consistent with our expectations as adjusted earnings per share increased 11% to $1.12. Our total revenue increased 3.5% and we maintained an operating ratio of 73.4% despite severe track washouts in Canada and the Southeast United States. In North America, rail network congestion decreased and the economy remained relatively strong over the course of the second quarter, which resulted in a 7.1% growth in same railroad carloads. In Australia, our second quarter carload traffic was down 9%; however, effective management of our costs resulted in an operating ratio of 69.2%"
6:07 am ArcelorMittal misses by $0.17, misses on revs (MT) : Reports Q2 (Jun) earnings of $0.03 per share, $0.17 worse than the Capital IQ Consensus Estimate of $0.20; revenues fell 47.0% year/year to $10.7 bln vs the $20.42 bln consensus.
- "The second quarter and first half results reflect the anticipated improvement in steel shipments and margins, supporting an underlying EBITDA improvement compared with last year. The expansion of our iron ore business is also on track, although increased iron ore shipments were offset by the lower than anticipated iron ore price, which has led us to revise our EBITDA guidance for the full year."
- "Looking ahead, indicators in both Europe and the US, which together account for two thirds of our shipments, continue to be positive and we have increased our steel demand forecasts for both markets. ArcelorMittal continues to focus on delivering on its strategy of reducing costs, investing in our franchise businesses and reducing net debt."
6:04 am Hilton Hotels beats by $0.02, beats on revs; guides Q3 EPS in-line; raises FY14 EPS above consensus (HLT) : Reports Q2 (Jun) earnings of $0.21 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.19; revenues rose 12.1% year/year to $2.67 bln vs the $2.57 bln consensus.
- Co issues in-line guidance for Q3, sees EPS of $0.15-0.17, excluding non-recurring items, vs. $0.17 Capital IQ Consensus Estimate.
- Co issues raised guidance for FY14, sees EPS of $0.67-0.70 from $0.64-0.67, excluding non-recurring items, vs. $0.66 Capital IQ Consensus Estimate.
- Adjusted EBITDA for the second quarter increased more than 10 percent from the same period in 2013 to $651 million and Adjusted EBITDA margin increased 110 basis points.
- System-wide comparable RevPAR increased 6.7 percent for the second quarter on a currency neutral basis from the same period in 2013 U.S. comparable RevPAR increased 7.3 percent for the second quarter from the same period in 2013.
- FY14 Guidance Details: System-wide RevPAR is expected to increase between 5.5 percent and 7.0 percent on a comparable and currency neutral basis, with ownership segment RevPAR expected to increase between 4.5 percent and 6.5 percent on a comparable and currency neutral basis as compared to 2013. Adjusted EBITDA is projected to be between $2,425 million and $2,475 million. Q3 Guidance: System-wide RevPAR is expected to increase between 5.5 percent and 7.0 percent on a comparable and currency neutral basis compared to the third quarter of 2013. Adjusted EBITDA is expected to be between $610 million and $630 million.
6:02 am Loxo Oncology (Nasdaq: LOXO) prices upsized 5,261,538 share IPO (from 4.38 mln) at $13.00 per share, at mid-point of the $12-14 expected range (:IPOXX) :
5:58 am Global Power Equipment misses by $0.06, misses on revs; reaffirms FY14 revs guidance (reported last night) (GLPW) : Reports Q2 (Jun) earnings of $0.06 per share, $0.06 worse than the Capital IQ Consensus Estimate of $0.12; revenues fell 1.1% year/year to $114.7 mln vs the $128.35 mln consensus.
- Co reaffirms guidance for FY14, sees FY14 revs of $525-550 mln vs. $533.32 mln Capital IQ Consensus Estimate.
- Orders for Product Solutions were $35.6 million, or $23.6 million lower than sales for the quarter. Backlog for Product Solutions at quarter end was $165.0 million, up 13.5% from the prior-year period, and down from the trailing quarter due to the strong shipments in the quarter. Approximately 75% of Product Solutions' backlog is expected to ship in 2014.Adjusted EBITDA from continuing operations was $5.2 million in the second quarter compared with $4.5 million in the prior-year quarter.
- FY14 Guidance Details: Product Solutions - expected to improve on stronger power generation and oil and gas markets, and full year of acquisition revenue. Energy Services - expected to improve primarily due to a full year of acquisition revenue. Nuclear Services - expected to be down modestly, primarily due to fewer outages. Gross margin is expected to improve moderately as a percent of revenue (20 to 30 basis points from 17.6% in 2013). Operating expenses are expected to moderately decline as a percent of revenue (30 to 40 basis points from 15.1% in 2013).
- Company Earnings