5:57 pm PTC to acquire Axeda for $170 mln in cash to expand Internet of Things portfolio; expected to add $25-30 mln of revs in FY15 (PTC) : Co announced it has signed a definitive agreement to acquire privately-held Axeda Corporation, a pioneer in the development of solutions to securely connect machines and sensors to the cloud, for approximately $170 million in cash. Axeda's technology innovation, extensive customer base, and powerful partnerships directly complement the PTC ThingWorx business, and will accelerate PTC's ability to deliver best-in-class solutions across the entire Internet of Things technology stack. Subject to satisfaction of customary closing conditions and certain regulatory approvals, the transaction is expected to be completed in PTC's fiscal Q4 2014.
- The acquisition is expected to add $25 million to $30 million of revenue in FY'15. PTC expects to draw on its credit facility to finance the transaction. Axeda has approximately 160 employees primarily located in the United States.
5:53 pm CBS Outdoor Americas: Wally Kelly, President and COO, to leave company (CBSO) : Co announced that Wally Kelly, president and chief operating officer since 2013, will be leaving the organization. He will stay at the company for an advisory period until the end of this year. Mr. Kelly previously served as president and chief executive officer of the CBS Outdoor business beginning in 2003 and, prior to that, held various executive roles.
5:48 pm China Auto Logistics says it will vigorously oppose 'grossly unfair and damaging' plan by Depository Trust Company to impose 'global lock' on its securities (CALI) : Co said it will vigorously oppose a "grossly unfair and highly damaging" plan by the Depository Trust Corporation, ("DTC"), as detailed in a notification letter received by the Company from DTC on July 17, 2014, to suspend all book entry services provided to DTC participants with respect to CALI shares (the "Global Lock"). The letter indicated the Company has until August 13, 2014 to provide a written response stating its objections to the DTC action, after which DTC will make either a determination or a request for further information within 20 business days.
- According to the Company, the DTC decision to impose a "Global Lock" affecting all current shareholders is not based on any wrongdoing by the Company and there have been no allegations made against it. Rather, it is said to be based on DTC becoming aware of a recent SEC enforcement action against S. Paul Kelley et. al., in which the SEC alleges that Kelley et. al., among other offenses, violated Section 5 of the Securities Act. DTC's concern is that certain deposits made by Kelley et. al. were in violation of DTC's eligibility standards, and were comingled with shares of CALI eligible for deposit.
5:36 pm ALCO Stores announces amendment to rights agreement (ALCS) : Co yesterday announced that its Board of Directors has approved an amendment to its stockholders rights agreement to add a "cooling off" period of 10 business days between (i) the date when either it is announced that someone has become an "Acquiring Person" or a majority of the Board of Directors of the Company has actual knowledge that someone has become an Acquiring Person and (ii) the date when the rights become irrevocably triggered. The Board believes this action is in the best interests of the Company's stockholders and will enhance shareholder value and control while retaining the Rights Plan's protections that require any potential acquirer treat all stockholders fairly and equally.
5:35 pm Ethan Allen beats by $0.10, beats on revs (ETH) : Reports Q4 (Jun) earnings of $0.50 per share, $0.10 better than the Capital IQ Consensus Estimate of $0.40; revenues rose 9.1% year/year to $198.8 mln vs the $190.63 mln consensus.
- "July through September will be a period of transition with the sale of floor samples and inventory to make room for new products, remodeling to improve the projection of our design centers and producing new products most of which are made in our North American workshops. We plan to accelerate our marketing in the second quarter of fiscal 2015 and further accelerate in the third and fourth quarter. We remain cautiously optimistic."
5:34 pm Fluor: U.S. Department of Energy awards Fluor $420 mln 3-year contract for Paducah deactivation and shutdown (FLR) : Co was chosen by the U.S. Department of Energy (:DOE) for the next phase of cleanup at the Paducah Gaseous Diffusion Plant (GDP) in Paducah, Kentucky. Fluor is the prime contractor for the management, integration and execution of the deactivation and post-GDP shutdown remediation activities at the Paducah site. It is anticipated that the new contract will help reduce environmental risks and create local job opportunities. The estimated value of the contract, which Fluor booked in the third quarter of 2014, is approximately $420 million over three years.
5:33 pm CVB Financial beats by $0.03 (CVBF) : Reports Q2 (Jun) earnings of $0.24 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.21.
5:32 pm NRG Yield prices 10.5 mln share offering of common stock at $54 per share (NYLD) : Co announced it has priced the previously announced public offering of 10,500,000 shares of its Class A common stock at a price of $54.00 per share.
- The Company intends to use all of the net proceeds of the offering to acquire newly issued Class A units of NRG Yield LLC ("Yield LLC"). Yield LLC intends to use the net proceeds of the offering, together with cash on hand and the proceeds from newly issued debt securities to fund the aggregate $870 million cash purchase price of the previously announced acquisition of the Alta Wind Facility. However, the offering is not conditioned upon the completion of the Alta Acquisition, and, to the extent the Alta Acquisition is not completed, Yield LLC will use the net proceeds from the offering for general corporate purposes, including to fund other acquisition opportunities that may become available to the Company.
- BofA Merrill Lynch, Citigroup, Morgan Stanley, Barclays and Goldman, Sachs & Co. are acting as joint book runners for the offering.
5:32 pm SL Green Rlty beats by $0.18, beats on revs (SLG) : Reports Q2 (Jun) funds from operations of $1.62 per share, $0.18 better than the Capital IQ Consensus Estimate of $1.44; revenues rose 9.4% year/year to $387.2 mln vs the $326.21 mln consensus.
5:24 pm BancorpSouth increases quarterly dividend 50% to $0.075 from $0.05 per share (BXS) :
5:20 pm Sallie Mae beats by $0.01; guides FY14 EPS below consensus (SLM) : Reports Q2 (Jun) earnings of $0.10 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.09. Loan originations total $373 million in second-quarter 2014, exceed $1.8 billion in first-half 2014. Private education loan portfolio grows 40 percent to $7.4 billion from $5.3 billion in the prior year. Net interest margin was 5.08 percent compared with 4.64 percent in the year-ago quarter.
- Co issues downside EPS guidance for FY14, sees EPS of $0.41-0.43 vs. $0.46 Capital IQ Consensus Estimate. Expects full-year private education loan originations of $4 billion. Full-year operating expenses of $312 million, including $32 million of reorganization expenses. $1.2 billion of private education loan sales in the second half of the year. Provision for private education loan losses of approximately $60 million in the second half of the year. Full-year diluted core earnings per share between $.41 and $.43.
5:20 pm Lumber Liquidators responds to lawsuit allegations: 'The allegations in this lawsuit concerning our product are simply flat-out false' (LL) : Co issued the following statement in response to a lawsuit filed in California state court by the Global Community Monitor organization and Sunshine Park LLC:
- "The allegations in this lawsuit concerning our product are simply flat-out false. Our product meets relevant environmental standards and undergoes rigorous, independent, third-party testing. More specifically, our internal testing and that conducted by third parties concluded that product levels fell well below the Proposition 65 "safe harbor" limits. Further, Lumber Liquidators' products are produced and independently tested to ensure compliance with the low emissions standards set by the California Air Resource Board (CARB). We apply these stringent California standards to products we sell nationwide.
- "In addition to providing safe, high-quality products, we are transparent about our quality control and assurance processes - for our California customers, we provide Proposition 65 notices on customer invoices and in-store signage.
- "In short, all of our flooring meets the highest quality and environmental standards - that's why we sell it, that's why we use it in our own homes, and that's why we are a market leader. We will not let factually inaccurate and legally flawed lawsuits filed by a party with a clear financial motive influence our approach to our business or our customers."
5:19 pm Omega Health beats by $0.02, beats on revs; rasies FY14 FFO above consensus (OHI) : Reports Q2 (Jun) funds from operations of $0.69 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.67; revenues rose 18.8% year/year to $121.8 mln vs the $96.05 mln consensus.
- Co raised guidance for FY14, sees FFO of $2.82-2.85, excluding non-recurring items, vs. $2.76 Capital IQ Consensus Estimate, from $2.74-2.77.
5:09 pm Guanwei Recycling reports receipt of notice from DTC of plans to impose 'global lock' on its securities; company says DTC plans are 'unfair and unnecessarily damaging to current shareholders and is reviewing options' (GPRC) :
- DTC intends to suspend all book entry services provided to DTC participants with respect to GPRC shares. The letter indicated the Company has until August 14, 2014 to provide a written response stating its objections to the DTC action, after which the latter will make either a determination or a request for further information within 20 days. The DTC decision is the result of a recent SEC enforcement action against S. Paul Kelley and four other individuals, in which the SEC alleges that Kelly et al issued unregistered shares of the Company in violation of Section 5 of the Securities Act. It is DTC's position that such shares were not eligible for deposit at DTC for book entry services. Because all the Company's shares held by DTC are freely interchangeable, DTC has determined to implement the Global Lock. The Company said there were no allegations made about any improprieties by GPRC, and believes DTC's actions are unfair and unnecessarily damaging to current shareholders and the Company.
- The Company said it is reviewing its options and, if there are any new developments with respect to this matter, it will inform shareholders.
5:06 pm Teradyne beats by $0.13, beats on revs; guides Q3 below consensus (TER) : Reports Q2 (Jun) earnings of $0.54 per share, excluding non-recurring items, $0.13 better than the Capital IQ Consensus of $0.41; revenues rose 22.5% year/year to $525.6 mln vs the $479.38 mln consensus.
Co issues downside guidance for Q3, sees EPS of $0.34-0.43, excluding non-recurring items, vs. $0.48 Capital IQ Consensus Estimate; sees Q3 revs of $440-480 mln vs. $490.33 mln Capital IQ Consensus Estimate.
"Semiconductor Test orders were driven by a combination of capacity expansion and new design wins with the strongest demand from applications processor, power management, microcontroller and memory test. Our strong sales and earnings growth reflect both the short time to market requirements of chip makers and our operating model's ability to flex to meet customer demand. After the strongest first half of orders since 2004, our third quarter outlook reflects the industry's normal seasonal patterns."
5:05 pm Oceaneering Intl beats by $0.01, beats on revs; guides Q3 EPS in-line; narrows FY14 EPS guidance in-line (OII) : Reports Q2 (Jun) earnings of $1.02 per share, $0.01 better than the Capital IQ Consensus Estimate of $1.01; revenues rose 13.0% year/year to $927.4 mln vs the $916.65 mln consensus.
- Co issues in-line guidance for Q3, co EPS guidance to $1.10-1.15 vs. $1.13 Capital IQ Consensus Estimate.
- Co issues in-line guidance for FY14, narrows EPS guidance to $3.95-4.05 vs. $4.04 Capital IQ Consensus Estimate, from $3.90-4.10.
5:03 pm Rambus and ENTR sign license agreement for DPA countermeasures to secure next generation content (RMBS) : Cryptography Research, the security division of RMBS, and Entropic (ENTR) announced they have signed a patent license agreement allowing for the use of the Cryptography Research side-channel attack countermeasures in Entropic's integrated circuits. The Cryptography Research patented technology will protect Entropic's set-top box system-on-a-chip (SoC) products against differential power analysis and related attacks.
5:02 pm McGraw-Hill Financial receives Wells Notice from SEC regarding S&P's rating of six commercial mortgage backed securities transactions in 2011 (MHFI) : Co acknowledging that on July 22, 2014, it received a "Wells Notice" from the Commission Staff stating that the Staff has made a preliminary determination to recommend that the Commission institute an enforcement action against Standard & Poor's Ratings Services ("S&P"), alleging violations of federal securities laws with respect to S&P's ratings of six commercial mortgage backed securities transactions issued in 2011, and public disclosure made by S&P regarding those ratings thereafter. In connection with the contemplated action, the Staff may recommend that the Commission seek remedies that include a cease-and-desist order, disgorgement, pre-judgment interest, civil money penalties, and remedial sanctions such as revocation or suspension of S&P's NRSRO registration.
- The Wells Notice is neither a formal allegation nor a finding of wrongdoing. It allows S&P the opportunity to provide its perspective and to address the issues raised by the Staff before any decision is made by the Commission on whether to authorize the commencement of an enforcement proceeding. S&P has been cooperating with the Commission in this matter and intends to continue to do so.
5:01 pm Boston Scientific receives CE Mark for Agent Paclitaxel-Coated PTCA Balloon Catheter (BSX) : Co has received CE Mark and begun the European market launch of the Agent Paclitaxel-Coated PTCA Balloon Catheter. The Agent Drug-Coated Balloon (:DCB) provides physicians with an additional alternative to treat both in-stent restenosis (ISR) and de novo small vessel coronary disease. The Agent DCB combines the deliverability of the Boston Scientific Emerge balloon platform and the proven drug paclitaxel. The Agent DCB also features proprietary TransPax coating technology, which combines paclitaxel and a citrate ester excipient designed to maintain drug-coating integrity and maximize drug-transfer efficiency for consistent and predictable drug delivery.
5:00 pm Teleflex signs new agreement with Amerinet for manual ligation products (TFX) : Co announced a new group purchasing agreement with Amerinet covering Teleflex Incorporated's Weck Brand of Ligation Products. The agreement began July 1, 2014 and extends through July 31, 2016.
4:59 pm Cash America announces planned retirement of CEO Daniel R. Feehan in April 2015 (CSH) : Co announced today that its president and chief executive officer, Daniel R. Feehan, 63, has informed the Board of Directors of his intent to retire as president and chief executive officer of the Company when the current term of his executive employment agreement expires on April 30, 2015. Mr. Feehan will remain on the Company's Board of Directors and will assume the role of Chairman of the Board following his retirement. Jack Daugherty, the Company's founder and current Chairman of the Board, will step down as Chairman at that time but will continue to serve on the Board. The Board of Directors has appointed a special committee, chaired by James H. Graves, the Chairman of the Management Development and Compensation Committee, to lead a search for a successor CEO.
4:55 pm Core Labs beats by $0.01, reports revs in-line; guides Q3 EPS in-line, revs in-line; guides Q4 (Dec) EPS in-line, revs in-line (CLB) : Reports Q2 (Jun) earnings of $1.35 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $1.34; revenues rose 1.7% year/year to $267.56 mln vs the $267.11 mln consensus.
Co issues in-line guidance for Q3, sees EPS of $1.49-1.52 vs. $1.52 Capital IQ Consensus Estimate; sees Q3 revs of $280-290 mln vs. $284.62 mln Capital IQ Consensus Estimate. Within those ranges, operating margins are expected to be approximately 32%, with year-over-year incremental margins as high as 60%. A 23% effective tax rate is assumed for the third quarter of 2014. FCF is expected to be between $77,000,000 and $81,000,000.
Co issues in-line guidance for Q4 (Dec), sees EPS of $1.56-1.61 vs. $1.61 Capital IQ Consensus Estimate; sees Q4 (Dec) revs of $285-295 mln vs. $294.63 mln Capital IQ Consensus Estimate. Within those ranges, operating margins in the quarter are expected to be approximately 33% while exiting the year at 34% with year-over-year incremental margins as high as 60%. A 24% effective tax rate is assumed for the fourth quarter of 2014 as a result of operational activity expected in higher tax rate jurisdictions. FCF for the final quarter of 2014 is expected to range between $81,000,000 and $85,000,000.
4:52 pm Sallie Mae names Jeffrey Dale as first Chief Risk Officer (SLM) : Dale arrives from Citigroup (C) where he most recently served as the North American Group Risk Director responsible for consumer credit in the United States, Puerto Rico and Canada.
4:49 pm OFG Bancorp Correction: Reports EPS in-line (OFG) : Reports Q2 (Jun) earnings of $0.38 per share, in-line with the Capital IQ Consensus of $0.38.
- Net interest margin continued strong at 6.10% compared to 5.90% in the first quarter of 2014.
- Tangible book value per common share of $14.71 at June 30, 2014 rose 4.6%, from $14.07 at March 31, 2014, and book value per common share of $16.87 grew 3.9%, from $16.23 at March 31, 2014.
- Performance metrics were in line with OFG's targets, with return on average assets of 1.10%, return on average tangible common stockholders' equity of 10.96%, and efficiency ratio of 47.89%.
- Earlier we cited a faulty CIQ Consensus of $0.45.
4:46 pm F5 Networks on the call (FFIV) :
- Security business continues to be largest growth driver
- Saw a rise in competitive win rates across co
- Closed acquisition of defense.net; increases portfolio w/ cloud based security services
- Continue to see new project wins for traffic diameter solution
4:43 pm Raymond James beats by $0.09, beats on revs (RJF) : Reports Q3 (Jun) earnings of $0.85 per share, $0.09 better than the Capital IQ Consensus Estimate of $0.76; revenues rose 9.4% year/year to $1.21 bln vs the $1.2 bln consensus.
- Private Client Group assets under administration reached a record $454 billion, up 17 percent over the year-ago period and 5 percent over the preceding quarter. Record quarterly net revenues of $816.9 million, up 10 percent over the prior year's fiscal third quarter and 1 percent over the preceding quarter.
- Equity underwriting revenues increased 24 percent over the prior year's June quarter and 17 percent over the preceding quarter.
- Institutional commissions in both the Equity Capital Markets and Fixed Income divisions remain depressed. Low interest rates coupled with low levels of rate volatility continue to depress commissions in the Fixed Income division, which are down 22 percent compared to last year's June quarter. However, trading profits remain satisfactory given the challenging market environment.
4:41 pm Markel Corp announces acquisition Of Cottrell; terms of the transaction were not disclosed (MKL) : Co announced the acquisition of a majority interest in Cottrell, Inc. and affiliated entities. Headquartered in Gainesville, Georgia, Cottrell is a global leader in the design, manufacture and delivery of over-the-road automobile transport equipment. Terms of the transaction were not disclosed.
4:38 pm Astoria Fincl beats by $0.04 (AF) : Reports Q2 (Jun) earnings of $0.20 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.16.
- Commenting on the future outlook, Mr. Redman stated, "Our strategy to expand our position as a full-service community bank continues to gain momentum. The 23% growth of business deposits in the first half of 2014 is extremely encouraging, providing us with proof that we are reaping the rewards associated with all of the focus and effort that we have placed on growing business banking."
- "We believe that this is only the start for business banking and we look forward to even stronger growth in the second half of the year. The growth of these core business deposits continues to be one of the biggest contributing factors as we move closer to our goal that core deposits represent 80% of total deposits by the end of 2015. With the significant strengthening of our credit metrics, combined with the strong credit quality we have experienced on our residential loan production since 2008 and our MF/CRE originations since 2011, we believe that the majority of our previous credit issues are behind us and look forward to further strengthening our position as a full-service community bank."
4:36 pm Susquehanna Bank beats by $0.03; announces repurchase plan for 3.5% of shares outstanding (SUSQ) : Reports Q2 (Jun) earnings of $0.23 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.20.
4:35 pm Pacific Continental announces its board of directors approved a regular cash dividend of $0.10 per share and an additional special cash dividend of $0.03 per share, both payable Aug 15, 2014, to shareholders of record as of Aug 4, 2014 (PCBK) :
4:35 pm MKS Instruments beats by $0.14, beats on revs; guides Q3 EPS in-line, revs in-line (MKSI) : Reports Q2 (Jun) earnings of $0.42 per share, $0.14 better than the Capital IQ Consensus Estimate of $0.28; revenues rose 17.8% year/year to $185 mln vs the $171.25 mln consensus.
- Co issues in-line guidance for Q3, sees EPS of $0.28-0.42 vs. $0.31 Capital IQ Consensus Estimate; sees Q3 revs of $170-190 mln vs. $175.48 mln Capital IQ Consensus Estimate.
- "Looking ahead, reports from the recent semiconductor industry tradeshow continue to project that third quarter OEM shipments may be down from the second quarter. In our other markets, the global economy continues to improve and we continue to search out and leverage growth opportunities in a strategic manner."
4:34 pm SL Green Rlty announces sales of three Manhattan assets (SLG) : Co announced three separate agreements to sell its Manhattan assets located at 2 Herald Square, 180 Broadway, and 985-987 Third Avenue which will generate net cash proceeds to the co of $240 mln.
- The co will sell the leased fee interest in 2 Herald Square for $365.0 mln. The sale of the leased fee interest, which is improved with an existing 11-story 365,000 square foot commercial office building, is expected to close during the fourth quarter of 2014.
- SL Green, with its partner Jeff Sutton, have reached an agreement to sell all their interests, including their fee position and retail condominium unit, in a mixed-use college dormitory/retail asset at 180 Broadway for $222.5 mln. This transaction is expected to close during the third quarter of 2014.
- Also, today SL Green closed on the sale of its development properties at 985--987 Third Avenue for $68.7 mln. The sale was made in conjunction with the sale of an adjacent parcel, which the co did not own. The total amount paid for the combined development site, plus development rights, was $100.0 mln.
4:33 pm Datawatch beats by $0.01, beats on revs; Q3 revenue was reported at an all-time high of $9.23 million (DWCH) : Reports Q3 (Jun) net loss of ($0.24) per share, $0.01 better than the Capital IQ Consensus Estimate of a loss of ($0.25); revenues rose 18% year/year to $9.23 mln vs the $8.9 mln consensus.
4:33 pm United Stationers reports EPS in-line, beats on revs (USTR) : Reports Q2 (Jun) earnings of $0.85 per share, in-line with the Capital IQ Consensus Estimate of $0.85; revenues rose 3.6% year/year to $1.32 bln vs the $1.28 bln consensus.
- Gross margin declined 70bps from the prior-year quarter to 15.1% of sales.
- The decline in margin rate resulted from some opportunistic lower-margin sales to major technology customers, targeted investments in industrial products and higher freight costs in the growing online businesses.
4:33 pm Interface increases quarterly distribution 33.3% to $0.04 per share (TILE) :
4:32 pm Kaiser Alum beats by $0.18, beats on revs (KALU) : Reports Q2 (Jun) earnings of $1.05 per share, $0.18 better than the Capital IQ Consensus Estimate of $0.87; revenues rose 2.7% year/year to $344 mln vs the $338.42 mln consensus.
- "In the second quarter we posted another record for heat treat plate and automotive shipments, which, along with improving manufacturing efficiencies, more than offset the impact of lower heat treat plate prices. The throughput and efficiency gains from the Phase 5 expansion at our Spokane (Trentwood), Washington facility exceeded our initial expectations and were key factors driving our improved performance in the quarter."
4:32 pm Sanchez Energy operations update; Eagle Ford operations initial 30 day production rates of ~500 BOE/D, confirming that we can expand our planned activity in Wycross at favorable rates (SN) : Eagle Ford Operations Update
- The Company continues to realize sustained costs savings and drilling efficiencies as it currently has 6 gross (5 operated and 1 non-operated) rigs running across its Eagle Ford positions. In addition to the rig currently running in Catarina, we have contracted a new, modern rig which will be deployed in Catarina by the end of August. Results of our step-out tests in the Marquis and Cotulla areas have now confirmed additional high return inventory in these areas. Six new wells in the Five Mile Creek area of Marquis were brought online with initial 30 day average production rates of approximately 450 to 700 BOE/D at an average cost of $7.0 million, de-risking the 10,000 net acre position. We are also drilling our first Buda well, the Crabb Ranch A #2, targeting the Buda formation across the Five Mile Creek area and are now in final preparation for the drilling of two Upper Eagle Ford appraisal wells in the third quarter in the Sante area, with plans for additional Upper Eagle Ford appraisal wells in Fayette and Lavaca Counties in the second half of the year. In the Wycross area of Cotulla, we completed four wells in an appraisal area close to the salt dome designed to expand the prospective area for future locations. Those wells were brought online during the second quarter with average initial 30 day production rates of approximately 500 BOE/D, confirming that we can expand our planned activity in Wycross at favorable rates of return in an area originally thought to be too complicated and risky around the salt dome. In the Talbutt area of northern Cotulla, we successfully drilled an approximately 7,000' lateral and achieved initial 30 day rates over 600 BOE/D, which is a significant improvement over the 350 BOE/D results from initial wells drilled prior to our May 2013 acquisition. We are currently completing four Wycross wells with an additional five Wycross wells waiting on completion.
- Our first TMS well, the Dry Fork East #2H, in Wilkinson County, Mississippi was spud in late May and reached total depth earlier this month within the planned time-frame. During clean out prior to running production casing, the drill string parted due to defects in the drill pipe. We are now in the process of sidetracking the lateral portion of the well and expect to have casing run within two weeks. The lateral exhibited strong hydrocarbon shows during drilling, confirming our expectation of a good well. The TMS rig will run continuously throughout the year, allowing us to spud up to four gross operated wells in addition to participating in 10 -- 15 gross non-operated wells. We increased our TMS net acreage position during the second quarter from approximately 40,000 net acres to 58,000 net acres, largely through bolt on acreage positions. We expect other TMS operators to continue ramping up their activity and further de-risk various portions of the play.
4:31 pm Allied World Assurance misses by $0.12, misses on revs (AWH) : Reports Q2 (Jun) operating earnings of $0.76 per share, excluding non-recurring items, $0.12 worse than the Capital IQ Consensus Estimate of $0.88; net premiums written fell 4.6% year/year to $554 mln vs the $623.79 mln consensus.
- Net premiums earned were $537.2 million, a 5.9% increase compared to $507.3 million in the second quarter of 2013. Underwriting income was $51.9 million, compared to underwriting income of $86.9 million in the second quarter of 2013. The combined ratio was 90.3% compared to 82.8% in the second quarter of 2013.
4:31 pm Atlas Pipeline increases second quarter distribution 1.6% to $0.63 per share (APL) :
4:31 pm Brandywine Realty beats by $0.01, reports revs in-line; guides FY14 FFO in-line (BDN) : Reports Q2 (Jun) funds from operations of $0.36 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.35; revenues rose 7.0% year/year to $150.5 mln vs the $150.97 mln consensus. Co issues in-line guidance for FY14, sees FFO of $1.43-1.48 vs. $1.45 Capital IQ Consensus Estimate.
4:29 pm Infinera beats by $0.07, reports revs in-line (INFN) : Reports Q2 (Jun) earnings of $0.11 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.04; revenues rose 19.5% year/year to $165.4 mln vs the $165.38 mln consensus. Non-GAAP gross margin for the quarter was 43.3% compared to 41.8% in the first quarter of 2014 and 38.9% in the second quarter of 2013.
- "We continued the strong momentum from our solid first quarter results delivering record quarterly revenue, an expanded gross margin and significant earnings growth in the second quarter. We had record 100G port shipments as we experienced excellent DTN-X deployments across a broad base of customer verticals. We were pleased to add four new invoiced DTN-X customers this quarter, including a new customer to Infinera, allowing us to further capitalize on the 100G technology cycle with this new footprint" said Tom Fallon, Infinera's Chief Executive Officer. "We see video and cloud driving bandwidth growth across our markets as well as Internet Content Providers building significant amounts of new capacity. Our technological innovation and proven operating excellence supports continued growth in the long haul market as we enter the second half of the year and positions us well as we begin the process of expanding into new adjacent high capacity transport markets."
4:28 pm Graco beats by $0.08, beats on revs (GGG) : Reports Q2 (Jun) earnings of $1.07 per share, $0.08 better than the Capital IQ Consensus Estimate of $0.99; revenues rose 12.8% year/year to $322.5 mln vs the $311.13 mln consensus.
- "Demand levels around the world firmed in the second quarter, as we experienced solid growth in all segments and geographies," said Patrick J. McHale, Graco's President and CEO."
- After a solid first half of 2014, we are well positioned to achieve full-year growth in all segments and geographies," stated Mr. McHale.
- "Our Contractor segment is poised to continue low double-digit growth in the Americas, benefitting from the recovery in the U.S. construction market. Stable macroeconomic conditions in developed economies and firming demand levels in the emerging markets of EMEA and China may provide upside to our outlook for mid-single-digit organic growth for the second half of the year."
4:28 pm TripAdvisor misses by $0.06, reports revs in-line (TRIP) : Reports Q2 (Jun) earnings of $0.55 per share, $0.06 worse than the Capital IQ Consensus of $0.61; revenues rose 30.8% year/year to $323 mln vs the $321.7 mln consensus.
- Revenue from click-based advertising totaled $235 million for Q2, an increase of 28% compared to the second quarter of 2013. Click-based advertising revenue represented 73% of total revenue in the second quarter of 2014, compared to 74% in the second quarter of 2013.
- "We are gaining momentum in 2014. In the second quarter, we saw growth accelerate in total revenues, click-based revenues, revenue per hotel shopper and hotel shoppers, a testament to the progress we have made in our core products as well as our adjacent business lines," said Steve Kaufer, President and CEO of TripAdvisor. "With nearly 280 million average monthly unique visitors and nearly 50% of our traffic on mobile devices, our product innovations and recent acquisitions are aimed at delighting more users throughout all phases of the travel planning, booking and trip-taking process."
4:27 pm Spectranetics announces FDA clearance of peripheral laser atherectomy devices for in-stent restenosis (trading halted) (SPNC) : Co announced receipt of FDA 510(k) clearance of their peripheral atherectomy products, Turbo-Tandem and Turbo Elite, for the treatment of in-stent restenosis (ISR). The clearance prompts a new standard of care in ISR treatment with improved clinical outcomes.
- EXCITE clinical trial proves safety, efficacy of laser technology; uniquely positions SPNC to set new standard of care while serving $350 mln, $750 mln global market opportunity
4:27 pm Illumina beats by $0.07, beats on revs; guides FY14 EPS & revs higher (ILMN) : Reports Q2 (Jun) earnings of $0.57 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.50; revenues rose 29.5% year/year to $448 mln vs the $425.75 mln consensus.
- Co issues upside guidance for FY14, sees EPS of $2.26-2.28 vs. $2.17 Capital IQ Consensus Estimate
- Raises FY14 outlook to 25-26% rev growth from prior guidance of 21-23%
4:26 pm Umpqua Holdings beats by $0.04; NIM increased to 4.85% from 4.12% in the prior qtr (UMPQ) : Reports Q2 (Jun) earnings of $0.27 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.23.
- Adjusted net interest margin (NIM) increased to 4.85%, from 4.12% in the prior quarter
- Tangible book value per share of $8.69; up 2% sequentially
4:26 pm Cheesecake Factory misses by $0.02, misses on revs; raises dividend (CAKE) : Reports Q2 (Jun) earnings of $0.59 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.61; revenues rose 5.6% year/year to $496.4 mln vs the $501.51 mln consensus.
The Company also announced today that its Board of Directors approved an increase in its quarterly dividend equating to 18%. The Company's Board of Directors declared a quarterly cash dividend of $0.165 per share on the Company's common stock. The dividend is payable on August 19, 2014 to shareholders of record at the close of business on August 6, 2014.
4:26 pm Everest Re misses by $0.48, reports revs in-line (RE) : Reports Q2 (Jun) after-tax operating income of $5.41 per share, excluding non-recurring items, $0.48 worse than the Capital IQ Consensus Estimate of $5.89; revenues rose 10.4% year/year to $1.27 bln vs the $1.27 bln consensus.
- Everest continues to generate strong earnings, despite a challenging marketplace
- "We are seeing select market opportunities, which is driving top-line growth and producing excellent underwriting margins and double digit returns on equity."
- This is driving growth in shareholder value with book value per share, adjusted for dividends, up over 10% through the first six months of the year
4:26 pm E*TRADE beats by $0.01, beats on revs (ETFC) : Reports Q2 (Jun) earnings of $0.24 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.23; revenues fell 0.5% year/year to $438 mln vs the $429.66 mln consensus.
- E*TRADE reported DARTs of 155,000 during the quarter, a decrease of 22 percent from the prior quarter and an increase of four percent versus the same quarter a year ago.
- The Company ended the quarter with 3.1 million brokerage accounts, an increase of 33,000 from the prior quarter. This compared with 72,000 net new brokerage accounts in the prior quarter and 30,000 in the second quarter of 2013. Brokerage account attrition for the quarter was 8.6 percent annualized.
- The Company ended the quarter with $281 billion in total customer assets, compared with $269 billion at the end of the prior quarter and $220 billion from the year-ago period.
- Net charge-offs in the quarter were $14 million, compared with $54 million in the prior quarter which included $42 million related to the transfer of one- to four-family TDRs to held-for-sale at the end of the prior quarter, and an $11 million benefit related to a settlement with a third party mortgage originator. Excluding these items, net charge-offs were down $9 million compared to the previous quarter. The allowance for loan losses ended the quarter at $401 million, down $2 million from the previous quarter.
- As of June 30, 2014, the Company reported bank and consolidated Tier 1 leverage ratios of 10.2 percent and 7.5 percent, respectively, compared with 9.7 percent and 7.0 percent in the prior quarter.
4:23 pm Polycom beats by $0.03, misses on revs; announces buyback (PLCM) : Reports Q2 (Jun) earnings of $0.21 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.18; revenues fell 3.8% year/year to $332 mln vs the $338.66 mln consensus.
- "Operating margin improved on both a sequential and year-over-year basis as a result of better overall gross margin and steady expense control," said Laura Durr, Chief Financial Officer and Executive Vice President. "We are pleased to report a 40 percent year-over-year increase in non-GAAP earnings per share, driven by lower share count and improved operational performance."
- Separately, Polycom also announced today that its board of directors approved a new $200 million share repurchase authorization.
4:23 pm Covenant Transport beats by $0.05, beats on revs (CVTI) : Reports Q2 (Jun) earnings of $0.25 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.20; revenues rose 0.7% year/year to $173.7 mln vs the $171.11 mln consensus.
4:22 pm Fortinet beats by $0.01, beats on revs (FTNT) : Reports Q2 (Jun) earnings of $0.11 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.10; revenues rose 24.9% year/year to $184.1 mln vs the $171.9 mln consensus.
4:20 pm CA Tech beats by $0.05, misses on revs (CA) : Reports Q1 (Jun) earnings of $0.65 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.60; revenues fell 49.0% year/year to $1.07 bln vs the $1.09 bln consensus.
- The decrease in revenue was primarily due to a decrease in subscription and maintenance revenue and a decrease in professional services revenue.
- The decrease in bookings was primarily due to lower year-over-year professional services bookings, due to a decrease in the size and number of professional services engagements, including non-core engagements with government customers that are not directly related to our software product sales.
- The Company executed a total of 8 license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of $330 million.
- During the first quarter of fiscal 2014, the Company executed a total of 9 license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of $323 million.
4:20 pm StanCorp Fin misses by $0.25, reports revs in-line (SFG) : Reports Q2 (Jun) earnings of $0.96 per share, $0.25 worse than the Capital IQ Consensus Estimate of $1.21; revenues fell 2.2% year/year to $701.1 mln vs the $699.86 mln consensus.
- Co said, "Our second quarter results reflected less favorable claims experience in Insurance Services. Despite the less favorable claims experience this quarter, the benefit ratio for Employee Benefits improved for the first six months of 2014 compared to the same period of 2013. At the same time, we are pleased with our record Asset Management earnings, our balance sheet strength and capital management."
4:18 pm Aspen Insurance beats by $0.07 (AHL) : Reports Q2 (Jun) earnings of $1.40 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus Estimate of $1.33; Net earned premiums rose 13.3% year/year to $616.2 mln vs the $659.08 mln consensus.
- Gross written premiums increased overall by 13.4% to $779.3 million in the second quarter of 2014 from the second quarter of 2013. Gross written premiums in Reinsurance were flat and Insurance increased by 23.7% compared with the second quarter of 2013
- Combined ratio of 90.1% (89.2% excluding non-recurring corporate expenses) for the second quarter of 2014 compared with 97.1% for the second quarter of 2013.
- Aspen continues to expect to achieve or exceed an operating return on equity of 10% in 2014, assuming a pre-tax catastrophe load of $185 million, normal loss experience, the current interest rate environment and insurance pricing environment. "We expect to achieve an operating return on equity of 11% in 2015, and to achieve an operating return on equity of between 11% and 12% in 2016, assuming normal loss experience, our expectations for rising interest rates and a less favorable insurance pricing environment."
4:18 pm Angie's List misses by $0.07, misses on revs; guides Q3 revs below consensus (ANGI) : Reports Q2 (Jun) loss of $0.31 per share, $0.07 worse than the Capital IQ Consensus Estimate of ($0.24); revenues rose 33.3% year/year to $78.9 mln vs the $80.16 mln consensus.
- Membership revenue in the second quarter of 2014 was $18.5 million, an increase of 16 percent compared to the prior year period. Service provider revenue remains the largest and fastest growing component of total revenue at $60.4 million for the quarter, representing a 39 percent growth rate year over year. Advertising revenue was $52.6 million in the second quarter of 2014, an increase of 37 percent compared to the prior year period, and e-commerce revenue was $7.8 million, an increase of ~ 57 percent year over year.
- Marketing expense increased 28 percent, or $8.0 million, compared to the prior year period.
- Gross member additions of ~399,000 at an average cost per acquisition of $90
The Company expects to generate positive adjusted EBITDA for the full year 2014.
"We increased marketing spend during a seasonally strong period and had a record quarter in gross new member additions, which we believe reflects the continued resonance of our value proposition. While revenue growth in e-commerce was lower than expected, we continued to make progress against our strategy of enabling service providers and populating their stores with offers. We expect significant improvement in margin in the second half of the year and continue to see compelling opportunities for growth."
4:17 pm Torchmark reports Q2 (Jun) results; guides FY14 EPS in-line (TMK) : Reports Q2 (Jun) earnings of $0.98 per share, may not be comparable to the Capital IQ Consensus Estimate of $1.03. ROE (excluding net unrealized gains on fixed maturities) was 15.4%.Co issues in-line guidance for FY14, sees EPS of $4.05-4.15 vs. $4.07 Capital IQ Consensus Estimate.
4:17 pm Sangamo BioSci beats by $0.04, beats on revs; reaffirms FY14 revs guidance (SGMO) : Reports Q2 (Jun) loss of $0.10 per share, $0.04 better than the Capital IQ Consensus Estimate of ($0.14); revenues rose 50.4% year/year to $10.38 mln vs the $7.84 mln consensus.
- Co reaffirms guidance for FY14, sees FY14 revs of $45-50 mln vs. $48.08 mln Capital IQ Consensus Estimate.
- Sangamo expects that its cash, cash equivalents and marketable securities will be at least $225 million at the end of 2014, inclusive of research funding and certain milestone payments from Shire and Biogen but exclusive of funds arising from any additional new collaborations or partnerships, equity financings or other new sources.
- Sangamo expects that operating expenses will be in the range of $65-70 mln for 2014.
4:17 pm TriQuint Semi beats by $0.06, beats on revs; guides Q3 EPS in-line, revs below consensus (TQNT) : Reports Q2 (Jun) earnings of $0.13 per share, $0.06 better than the Capital IQ Consensus Estimate of $0.07; revenues rose 21.4% year/year to $230.8 mln vs the $220.6 mln consensus.
- Co issues mixed guidance for Q3, sees EPS of $0.23-0.25 vs. $0.24 Capital IQ Consensus Estimate
- CO sees Q3 revs of $255-265 vs. $277.36 mln Capital IQ Consensus Estimate.
4:16 pm Costamare beats by $0.11, reports revs in-line (CMRE) : Reports Q2 (Jun) earnings of $0.48 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus Estimate of $0.37; revenues rose 23.5% year/year to $123.5 mln vs the $123.29 mln consensus.
- Adjusted EBITDA of $91.4 million and $173.4 million for the three and six months ended June 30, 2014, respectively.
- Voyage revenue adjusted on a cash basis, increased by 22.0%, or $22.7 million, to $126.0 million during the three-month period ended June 30, 2014, from $103.3 million during the three-month period ended June 30, 2013. This increase was mainly due to (i) revenue earned by the six and three newbuild vessels delivered to us during the nine-month period ended December 31, 2013 and the six-month period ended June 30, 2014, respectively; partly offset by (ii) decreased charter rates in certain of our vessels during the three-month period ended June 30, 2014, compared to the three-month period ended June 30, 2013, and (iii) revenues not earned by two and one vessels sold for scrap during the nine-month period ended December 31, 2013 and the six-month period ended June 30, 2014, respectively.
4:15 pm Equifax beats by $0.02, reports revs in-line; guides Q3 EPS in-line, revs in-line; guides FY14 EPS in-line, revs in-line (EFX) : Reports Q2 (Jun) earnings of $0.96 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.94; revenues rose 4.6% year/year to $613.9 mln vs the $614.97 mln consensus.
- Co issues in-line guidance for Q3, sees EPS of $0.96-0.99, excluding non-recurring items, vs. $0.98 Capital IQ Consensus Estimate; sees Q3 revs of $620-625 mln vs. $620.97 mln Capital IQ Consensus Estimate.
- Co issues in-line guidance for FY14, sees EPS of $3.83-3.91, excluding non-recurring items, vs. $3.85 Capital IQ Consensus Estimate; sees FY14 revs of $2.44-2.47 bln vs. $2.45 bln Capital IQ Consensus Estimate.
4:15 pm VSE Corp awarded $2.9 mln Postal Service shelving contract (VSEC) : Co awarded a delivery order to supply 10K engineered shelving kits to the United States Postal Service for use in the Long Life Delivery Vehicles. This delivery order has a value of $2.9 mln, with an option to purchase up to 40K additional kits following the initial delivery.
WBI submitted a design concept for purpose-built shelving units to address an increase in package deliveries by the Postal Service. Upon evaluation of the design, WBI was awarded the opportunity to supply 100 kits for in-field testing.
4:15 pm Incyte announces top-line results from RELIEF trial of ruxolitinib in patients with polycythemia vera; statistical significance not achieved for the primary endpoint of symptom control; positive trends in favor of ruxolitinib versus hydroxyurea observed (INCY) : Co announced top-line results from RELIEF, a randomized, double-blind clinical trial designed to compare symptom improvement in 110 patients with polycythemia vera (PV.V) treated with ruxolitinib versus patients treated with hydroxyurea (:HU).
- While positive trends were observed in favor of ruxolitinib, the trial did not achieve statistical significance for the primary endpoint as measured by the proportion of patients with = 50% reduction in a defined cluster of symptoms that included tiredness, itching, muscle aches, night sweats and sweats while awake at week 16 compared to baseline.
- Topline results showed a 43.4% symptom response rate in the ruxolitinib arm and a 29.6% symptom response rate in the hydroxyurea arm (p=0.139). Full data from the RELIEF trial are expected to be presented at an upcoming scientific meeting.
- Further analyses of RELIEF are underway to evaluate what factors may have contributed to a symptom control rate for patients on stable doses of HU that was five to six times higher than that seen in the best available therapy control arm of the RESPONSE trial, and which led to an underpowering of the RELIEF trial.
- RESPONSE was an open-label randomized trial of 222 patients and is the basis of Incyte's supplemental New Drug Application (sNDA) submitted in June 2014. RESPONSE was conducted under a Special Protocol Assessment (SPA) agreement. The FDA granted Fast Track designation for ruxolitinib in PV, specifically for the treatment of patients who are resistant to or intolerant of hydroxyurea. If approved, ruxolitinib would be the first JAK1/JAK2 inhibitor available for patients with PV.
4:15 pm Closing Market Summary: Earnings Send S&P 500 to Another Record Close (:WRAPX) : The stock market ended the Wednesday session on a mixed note. The tech-heavy Nasdaq displayed relative strength, climbing 0.4%, while the S&P 500 added 0.2% with five sectors settling in the green. For its part, the Dow Jones Industrial Average (-0.2%) spent the entire session below its flat line.
Equities started the midweek affair on a rather unassuming note in the absence of market-moving news or economic releases. With those pieces missing from the equation, participants turned their attention to quarterly earnings as another dose of better than expected results pushed the S&P 500 to a fresh record close at 1987.01.
The health care sector (+0.8%) surged at the open and never relinquished the lead thanks to a big earnings beat reported by Biogen Idec (BIIB 337.60, +33.93). The stock soared 11.2%, while the iShares Nasdaq Biotechnology ETF (IBB 259.34, +5.66) advanced 2.2%. Elsewhere among biotech names, Puma Biotech (PBYI 233.43, +174.40) nearly tripled in value after announcing positive trial results.
In addition to boosting the health care space, biotechnology provided a measure of support to the Nasdaq, which also drew strength from the shares of Apple (AAPL 97.19, +2.47). The top-weighted tech stock rose 2.6% after beating earnings estimates on below-consensus revenue. However, the company guided Q4 revenue below its Capital IQ consensus estimate.
Sticking to tech earnings, Microsoft (MSFT 44.87, +0.04) missed bottom-line estimates, but beat on revenue. Meanwhile, Broadcom (BRCM 38.15, -0.60) and Juniper Networks (JNPR 22.43, -2.39) retreated despite delivering above-consensus results. Notably, Broadcom and other chipmakers struggled to stay out of the red with the PHLX Semiconductor Index falling 2.3%.
The underperformance of microchip names prevented the technology sector (+0.2%) from extending its slim gain, while other cyclical sectors ended on a mixed note. Energy (+0.6%) and materials (+0.4%) finished ahead of the broader market, while financials (+0.2%) kept pace with the S&P 500. The remaining two growth-sensitive sectors-consumer discretionary (-0.1%) and industrials (-0.4%)-could not make it into the green.
The weakest sector of the day-industrials-lagged amid weakness in the shares of Boeing (BA 126.71, -3.03). The Dow component lost 2.3% despite beating earnings estimates and raising its fiscal-year 2014 earnings guidance.
Also of note, it was reported during the session that the International Monetary Fund lowered its growth forecast for the U.S. to 1.7% from 2.0% and said the Fed may need to delay its first rate hike due to the contraction that took place in the first quarter. However, the remarks had little impact on equities as the major averages held their ground. The Treasury market did not move either and the 10-yr note ended the day flat with its yield at 2.47%.
Participation was well below average with less than 570 million shares changing hands at the NYSE.
Economic data was limited to the weekly MBA Mortgage Index, which rose 2.4% to follow last week's 3.6% decline.
Tomorrow, weekly initial claims (Briefing.com consensus 308K) will be reported at 8:30 ET, while the New Home Sales report for June (consensus 475K) will cross the wires at 10:00 ET. On the earnings front, 3M (MMM 144.68, -0.44), American Airlines (AAL 43.33, +0.95), Caterpillar (CAT 108.38, -1.68), Ford Motor (F 17.78, -0.04), and General Motors (GM 37.41, -0.35) will report ahead of the opening bell.
- S&P 500 +7.5% YTD
- Nasdaq Composite +7.1% YTD
- Dow Jones Industrial Average +3.1% YTD
- Russell 2000 -0.4% YTD
4:15 pm Macerich beats by $0.02, misses on revs; guides FY14 FFO in-line (MAC) : Reports Q2 (Jun) funds from operations of $0.86 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.84; revenues fell 3.3% year/year to $254.33 mln vs the $258.88 mln consensus.
- Co issues in-line guidance for FY14, sees FFO of $3.50-3.60 vs. $3.55 Capital IQ Consensus Estimate.
4:14 pm Qualcomm beats by $0.10, beats on revs; guides Q4 EPS below consensus, revs in-line -- co believes certain licensees in China are not fully complying with their contractual obligations to report their sales of licensed products (QCOM) : Reports Q3 (Jun) earnings of $1.31 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus of $1.21; revenues rose 9.0% year/year to $6.81 bln vs the $6.52 bln consensus.
Co issues guidance for Q4, sees EPS of $1.03-1.18, excluding non-recurring items, vs. $1.38 Capital IQ Consensus Estimate; sees Q4 revs of $6.5-7.4 bln vs. $7.14 bln Capital IQ Consensus Estimate. "During the fourth quarter of fiscal 2014, we expect to complete a minimum of $1 billion in stock repurchases under our current stock repurchase program. Our outlook for fiscal 2014 diluted earnings per share includes an estimate of the benefit related to stock repurchases.
China continues to present significant opportunities for us, particularly with the rollout of 4G LTE, but also presents significant challenges, as our business practices continue to be the subject of an investigation by the China National Development and Reform Commission (:NDRC)...
- We also believe that certain licensees in China currently are not fully complying with their contractual obligations to report their sales of licensed products to us (which includes certain licensees underreporting a portion of their 3G/4G device sales and a dispute with a licensee) and that unlicensed cos may seek to delay execution of new licenses while the NDRC investigation is ongoing.
- We expect calendar year 2014 3G/4G device shipments to be ~1.3 billion globally. However, our estimate of calendar year 2014 3G/4G device shipments that we currently expect to be reported to us is ~1.04 billion to 1.13 billion, which is adjusted for units that we believe may not be reported to us, are in dispute or are currently unlicensed. We are taking steps to address these issues, although the timing of any resolution is uncertain."
- MSM chip shipments: 225 million units, up 31 percent y-o-y and 20 percent sequentially. March quarter total reported device sales: ~$58.1 billion, up 3 percent y-o-y and down 13 percent sequentially. March quarter estimated 3G/4G device shipments: ~ 250 to 254 million units, at an estimated average selling price of ~$228 to $234 per unit. Cash and Marketable
4:13 pm Facebook beats by $0.10, beats on revs (FB) : Reports Q2 (Jun) earnings of $0.42 per share, $0.10 better than the Capital IQ Consensus Estimate of $0.32; revenues rose 60.5% year/year to $2.91 bln vs the $2.81 bln consensus.
Revenue from advertising was $2.68 billion, a 67% increase y/y. Excluding the impact of year-over-year changes in foreign exchange rates, revenue from advertising would have increased by 65%.
- Daily active users (DAUs) were 829 million on average for June 2014, an increase of 19% year-over-year.
- Mobile DAUs were 654 million on average for June 2014, an increase of 39% year-over-year.
- Monthly active users (MAUs) were 1.32 billion as of June 30, 2014, an increase of 14% year-over-year.
- Mobile MAUs were 1.07 billion as of June 30, 2014, an increase of 31% year-over-year.
- Mobile advertising revenue represented approximately 62% of advertising revenue for the second quarter of 2014, up from approximately 41% of advertising revenue in the second quarter of 2013.
- Payments and other fees revenue was $234 million, a 9% increase from the same quarter last year.
- GAAP costs and expenses for the second quarter of 2014 were $1.52 billion, an increase of 22% from the second quarter of 2013. Excluding share-based compensation and related payroll tax expenses, non-GAAP costs and expenses were $1.2 billion in the second quarter of 2014, up 18% compared to $1.02 billion for the second quarter of 2013.
- Capital expenditures for the second quarter of 2014 were $469 million.
- Cash and marketable securities were $13.96 billion at the end of the second quarter of 2014.
- Free cash flow for the second quarter of 2014 was $872 million.
4:13 pm Assurant beats by $0.08, beats on revs (AIZ) : Reports Q2 (Jun) earnings of $1.62 per share, $0.08 better than the Capital IQ Consensus Estimate of $1.54; revenues rose 16.5% year/year to $2.61 bln vs the $2.35 bln consensus.
4:13 pm Quantum beats by $0.01, reports revs in-line; guides Q2 revs in-line (QTM) : Reports Q1 (Jun) earnings of $0.01 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of ($0.00); revenues fell 13.3% year/year to $128.1 mln vs the $127.96 mln consensus.
- Co issues in-line guidance for Q2, sees Q2 revs of $130-135 mln vs. $132.91 mln Capital IQ Consensus Estimate; Co sees Q2 GAAP and non-GAAP gross margin of 44 to 45%.
- "Our strong first quarter results reflect the adjustments in our business model and other strategic actions we've taken over the past five quarters to drive shareholder value by generating increased profit and cash flow while positioning the company to deliver overall revenue growth."
4:13 pm Varian Medical misses by $0.01, misses on revs; guides Q4 EPS in-line (VAR) : Reports Q3 (Jun) earnings of $1.08 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $1.09; revenues rose 3.0% year/year to $747.7 mln vs the $767.5 mln consensus.
- Co issues in-line guidance for Q4, sees EPS of $1.14-1.29 vs. $1.26 Capital IQ Consensus Estimate
- Co expects revenue to increase in the range of 7-15%.
- Co said, "Our fourth quarter revenue and EPS guidance range is tied to the timing of our proton therapy projects."
4:12 pm Gilead Sciences beats by $0.56, beats on revs (GILD) : Reports Q2 (Jun) earnings of $2.36 per share, excluding non-recurring items, $0.56 better than the Capital IQ Consensus Estimate of $1.80; revenues rose 136.1% year/year to $6.53 bln vs the $5.86 bln consensus.
- Sovaldi sales $3.48 bln versus street estimate of ~$3 bln and $2.27 bln in prior quarter
- "During the second quarter, Gilead continued to make significant progress led by strong Sovaldi sales. Since December's launch, Sovaldi has been prescribed for more than 80,000 patients in the U.S. and Europe, underscoring the medical community's recognition of the benefits of this product. We look forward to making Sovaldi available in additional countries."
- Atripla sales -7.2% yoy to $870.7 mln
- Truvada sales -0.1% yoy to $806.6 mln
- Sees FY14 net product sales of $21-23 bln (raised from $11.3-11.5 bln ex Sovaldi)
- Sees FY14 non-GAAP product gross margin of 85-88% (raised from 75-77%)
- Reaffirms guidance for "Diluted EPS Impact of Acquisition-Related, Restructuring and Stock-Based Compensation Expenses" of $0.63-0.66
4:11 pm Citrix Systems beats by $0.17, beats on revs; guides Q3 EPS below consensus, revs below consensus; guides FY14 EPS above consensus (CTXS) : Reports Q2 (Jun) earnings of $0.78 per share, excluding non-recurring items, $0.17 better than the Capital IQ Consensus Estimate of $0.61; revenues rose 7.1% year/year to $782 mln vs the $772.82 mln consensus.
- Co issues downside guidance for Q3, sees EPS of $0.70-0.73 vs. $0.76 Capital IQ Consensus Estimate; sees Q3 revs of $765-775 mln vs. $785.88 mln Capital IQ Consensus Estimate. Non-GAAP gross margin is targeted to be in the range of 84 percent to 85 percent, excluding 3 percent related to the effects of amortization of acquired product related intangible assets and stock-based compensation expense.
- Co issues upside guidance for FY14, sees EPS of $3.20-3.25 vs. $3.10 Capital IQ Consensus Estimate. Net revenue is targeted to be in the range of 8.5 percent to 10 percent; consensus +9%.
4:11 pm Allegiant Travel beats by $0.04, reports revs in-line (ALGT) : Reports Q2 (Jun) earnings of $1.86 per share, $0.04 better than the Capital IQ Consensus Estimate of $1.82; revenues rose 13.6% year/year to $290.5 mln vs the $289.32 mln consensus. Same store routes, operated in both the second quarter 2014 and 2013, generated a 5.8% increase in TRASM.
For 3Q14, co expects both PRASM and TRASMP y/y change between 0-2%
4:10 pm Texas Capital beats by $0.03 (TCBI) : Reports Q2 (Jun) earnings of $0.71 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.68.
4:10 pm 8x8 reports EPS in-line, beats on revs (EGHT) : Reports Q1 (Jun) earnings of $0.03 per share, in-line with the Capital IQ Consensus Estimate of $0.03; revenues rose 29.6% year/year to $37.9 mln vs the $37.35 mln consensus.
- Co said, "Given our strong first quarter performance, we now expect revenue to grow by at least 25% for the current fiscal year, with non-GAAP net income as a percentage of revenue in the high-single digit range."
4:10 pm Tyler Tech beats by $0.07, beats on revs; guides FY14 EPS above consensus, revs above consensus (TYL) : Reports Q2 (Jun) earnings of $0.52 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus Estimate of $0.45; revenues rose 20.6% year/year to $124.4 mln vs the $117.8 mln consensus. Co issues upside guidance for FY14, sees EPS of $1.95-2.02, excluding non-recurring items, vs. $1.89 Capital IQ Consensus Estimate; sees FY14 revs of $482-489 mln vs. $476 mln Capital IQ Consensus Estimate.
4:09 pm F5 Networks beats by $0.04, beats on revs; guides Q4 EPS above consensus, revs in-line (FFIV) : Reports Q3 (Jun) earnings of $1.39 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $1.35; revenues rose 18.9% year/year to $440.3 mln vs the $435.05 mln consensus.
- Co issues guidance for Q4, sees EPS of $1.46-1.49, excluding non-recurring items, vs. $1.45 Capital IQ Consensus Estimate; sees Q4 revs of $453-463 mln vs. $456.08 mln Capital IQ Consensus Estimate.
- "F5's solid gains in Q3 were driven by strong growth in product revenue, up 5 percent sequentially and 20 percent year-over-year...Growing demand for our expanding array of systems and application services was fueled by increasing awareness and uptake of our security offerings and the appeal of our Good, Better, Best pricing options. During the quarter, sales of Good, Better, Best bundles grew 49 percent from the prior quarter and contributed to a significant increase in sales of software products and of security solutions in particular."
4:08 pm Gladstone Investments: ISS and Glass, Lewis each recommend 'for' vote on all proposals for GAIN's 2014 Annual Meeting of Stockholders (GAIN) : Co announced that independent proxy advisory firms Institutional Shareholder Services and Glass, Lewis & Co. each recently issued a report recommending that the co's stockholders vote "FOR" all proposals in the co's definitive proxy statement for its 2014 Annual Meeting of Stockholders filed with the SEC on Schedule 14A, on June 20, 2014. The Proxy Statement includes a proposal that would allow the co to issue and sell shares of its common stock below its then-current net asset value ("NAV") per share, subject to certain limitations delineated in the Proxy Statement.
4:08 pm Tractor Supply reports EPS in-line, misses on revs; co lowers FY14 EPS and revenue guidance to low end of prior range (TSCO) : Reports Q2 (Jun) earnings of $0.95 per share, in-line with the Capital IQ Consensus Estimate of $0.95; revenues rose 8.2% year/year to $1.58 bln vs the $1.6 bln consensus.
- Co lowered FY14 guidance to be at the low end of the previously provided ranges; co sees EPS at low end of prior range of $2.54-2.62 vs. $2.54 Capital IQ Consensus Estimate; sees FY14 revs at low end of prior range of $5.62-5.70 bln vs. $5.64 bln Capital IQ Consensus Estimate.
4:07 pm Government Properties Income Trust announced proposed public offering of 12 mln common shares (GOV) : Co announced that it has commenced a public offering of 12 mln common shares. GOV expects to use the proceeds of this offering to partially repay amounts outstanding under its new $500 mln term loan. It is contemplated that the underwriters will also be granted a 30-day option to purchase up to an additional 1.8 mln common shares. The joint book-running managers for this offering are Citigroup, BofA Merrill Lynch and Morgan Stanley.
4:07 pm IPC The Hospitalist beats by $0.02, reports revs in-line; reaffirms FY14 EPS guidance, revs guidance (IPCM) : Reports Q2 (Jun) earnings of $0.58 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.56; revenues rose 18.2% year/year to $172.3 mln vs the $171.7 mln consensus. Co reaffirms guidance for FY14, sees EPS of $2.41-2.51, excluding non-recurring items, vs. $2.40 Capital IQ Consensus Estimate; sees FY14 revs of $720-732 mln vs. $714.8 mln Capital IQ Consensus Estimate.
4:07 pm LaSalle Hotel beats by $0.01, beats on revs; guides Q3 FFO below consensus (LHO) : Reports Q2 (Jun) funds from operations of $0.82 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.81; revenues rose 18.8% year/year to $313.1 mln vs the $306.83 mln consensus. Co issues downside guidance for Q3, sees FFO of $0.73-0.79 vs. $0.80 Capital IQ Consensus Estimate.
- RevPAR: Room revenue per available room ("RevPAR") for the quarter ended June 30, 2014 increased 10.3 percent to $207.94, as a result of a 6.6 percent increase in average daily rate ("ADR") to $241.08 and a 3.4 percent improvement in occupancy to 86.3 percent.
- Hotel EBITDA Margin: The Company's hotel EBITDA margin for the second quarter increased 62 basis points from the comparable prior year period to 37.3 percent, its highest-ever quarterly hotel EBITDA margin.
4:07 pm SunCoke Energy provides update on Coal Mining divestiture; co's Coal Mining segment is now considered 'held for sale' and will be reflected as discontinued operations in financial statements beginning Q3 2014; estimates a total pre-tax exit and disposal costs of $10 mln to $13 mln, with the majority of these costs occurring in 2H 2014 (SXC) :
- The foregoing are estimates only.
- Actual costs relating to these actions will not be known until we finalize the sale/disposition plan.
- In addition, we will no longer record depreciation expense in our Coal Mining segment.
4:06 pm Bar Harbor authorized the continuation of the co's existing stock repurchase plan through Aug 21, 2016 (BHB) : Co announced that its Board of Directors has authorized the continuation of the Company's existing stock repurchase plan through August 21, 2016. No other changes were made to the plan.
4:06 pm ONEOK increases quarterly dividend 3% to $0.575 from $0.56/share (OKE) :
4:06 pm AdCare Health Systems announces strategic plan to transition to a facilities holding company; Board plans to initiate a quarterly dividend payment on the common stock, expected to be $0.05 per common share (ADK) : Co announced that the Board of Directors has approved, and management has begun to implement, a strategic plan to transition the Company to a healthcare property holding and leasing company.
- Through a series of leasing transactions, the operations of the Company's currently owned and operated healthcare facilities, which are principally skilled nursing facilities, will be transitioned to third parties, and the properties AdCare leases will be sub-leased.
- The Board of Directors believes this new business model will help the Company unlock shareholder value by reducing risk, enhancing cash flow and enabling the Company to return cash to shareholders through a quarterly dividend.
- Under the strategic plan, the Company will execute a series of leasing transactions by which it will lease the operations of its currently owned and operated healthcare properties, and sub-lease properties the Company currently leases, to third parties, effectively exiting the operations of these facilities, and will transition its business to the ownership, acquisition and leasing of healthcare-related properties.
4:05 pm SunCoke Energy Board of Directors authorizes $150 mln share repurchase program (SXC) : Co's Board of Directors authorized a new $150 mln share repurchase program. Under this program, purchases may be made from time to time in the open market or in privately negotiated transactions. As part of the new $150 mln program, we plan to enter into an accelerated share repurchase agreement for the buyback of $75 mln of shares of common stock through November 2014. The final number of shares repurchased will be based on the volume-weighted average share price of our common stock during the term of the agreement.
- $75 mln expected to be acquired via accelerated share repurchase agreement
4:05 pm Skechers USA beats by $0.28, beats on revs (SKX) : Reports Q2 (Jun) earnings of $0.68 per share, $0.28 better than the Capital IQ Consensus Estimate of $0.40; revenues rose 37.1% year/year to $587.1 mln vs the $508.6 mln consensus.
4:05 pm Bob Evans details strong qualifications of its Director nominees in letter to stockholders; says 'nominees have valuable skills and extensive experience in key areas, including the restaurant, packaged foods, hospitality and entertainment and digital marketing sectors' (BOBE) :
- The letter stated that the Board's "nominees are committed to:
- 1) Executing a growth strategy built on a recently completed two-year transformational investment program.
- 2) Building on the Company's track record of returning capital to stockholders.
- 3) Considering other strategic opportunities to benefit stockholders." The letter urged stockholders to vote the WHITE proxy card to support all the Board's nominees.
4:04 pm Chemed beats by $0.04, reports revs in-line; guides FY14 EPS above consensus (CHE) : Reports Q2 (Jun) earnings of $1.50 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $1.46; revenues rose 0.8% year/year to $360.2 mln vs the $363.7 mln consensus. Co issues upside guidance for FY14, sees EPS of $5.90-6.10, excluding non-recurring items, vs. $5.88 Capital IQ Consensus Estimate.
4:04 pm Hanesbrands beats by $0.20, reports revs in-line; guides FY14 EPS above consensus, revs in-line (HBI) : Reports Q2 (Jun) earnings of $1.71 per share, $0.20 better than the Capital IQ Consensus Estimate of $1.51; revenues rose 11.9% year/year to $1.34 bln vs the $1.35 bln consensus. Co guides EPS higher for FY14, sees EPS of $5.20-5.40 vs. $4.99 Capital IQ Consensus Estimate, up $0.040 from prior guidance; sees FY14 revs of $5.075 bln vs. $5.17 bln Capital IQ Consensus Estimate.
4:04 pm Seadrill Ltd announces holders of ~ $547 mln of Seadrill's convertible bonds due 2017 have submitted their acceptances of the voluntary conversion offer made by co 18th July 2014 (SDRL) : Co announced that holders of ~ $547 mln of Seadrill's convertible bonds due 2017 have submitted their acceptances of the voluntary conversion offer made by Seadrill on 18th July 2014. This represents approx. 84.1% of the total outstanding amount. Bondholders in Seadrill's convertible bonds due 2017 are hereby reminded about the "90% clean-up call" as described in the Bond agreement clause 10.2.2 which gives Seadrill the right to call the remaining part of the bonds at par value plus accrued interest provided that 90% or more of the original issued amount of $650 mln have been redeemed or converted into shares.
4:03 pm Neustar beats by $0.05, beats on revs; guides FY14 EPS above consensus, revs in-line (NSR) : Reports Q2 (Jun) earnings of $0.95 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.90; revenues rose 7.8% year/year to $237.5 mln vs the $233.05 mln consensus.
- Co issues upside guidance for FY14, sees EPS of $3.88-4.05, excluding non-recurring items, vs. $3.74 Capital IQ Consensus Estimate; sees FY14 revs of $945-970 mln vs. $956.48 mln Capital IQ Consensus Estimate.
4:03 pm Cirrus Logic beats by $0.07, beats on revs; guides Q2 revs in-line (CRUS) : Reports Q1 (Jun) earnings of $0.37 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus Estimate of $0.30; revenues fell 1.6% year/year to $152.6 mln vs the $147.71 mln consensus.
- Co issues in-line guidance for Q2, sees Q2 revs of $175-195 mln vs. $188.54 mln Capital IQ Consensus Estimate; sees Q2 Gross margin of 47%-49%.
- Co reports Q1 Gross margin of 49%.
4:02 pm Healthways beats by $0.01, reports revs in-line; guides FY14 EPS in-line, reaffirms FY14 revs guidance (HWAY) : Reports Q2 (Jun) earnings of $0.01 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of ($0.00); revenues rose 11.3% year/year to $180.6 mln vs the $179.44 mln consensus. Co issues mixed guidance for FY14, sees EPS of $0.11-0.26, excluding non-recurring items, vs. $0.20 Capital IQ Consensus Estimate; sees FY14 revs of $730-760 mln vs. $740.67 mln Capital IQ Consensus Estimate.
4:00 pm Polycom announces new $200 million share repurchase authorization (PLCM) : PLCM announced that its board of directors approved a new share repurchase authorization of up to $200 million in share repurchases.
- In addition, the company stated that it has completed its previously announced $400 million Return of Capital program.
- Co expects to fund the share repurchases through cash on hand and future cash flow from operations.
3:48 pm Coca-Cola: Wintergreen Advisers announces www.FixBigSoda.com and outlines steps to revitalize Coca-Cola; recommends that Coca-Cola cut costs (KO) : Citing persistent weakness in revenue and net income at The Coca-Cola Company, Wintergreen Advisers presented an eleven-point plan to revitalize the company.
- The Wintergreen plan was shared in early July with Coca-Cola's largest shareholders and recommends that Coca-Cola cut costs, improve margins and step up the pace of bottler refranchising to significantly improve operating results.
- Wintergreen's plan also calls for Coca-Cola to strengthen its corporate governance, improve disclosure, separate the roles of chairman and CEO and create a strong and independent Board of Directors.
3:45 pm Banro provides progress update at its Twangiza and Namoya mines; Namoya metallurgy and grade are as expected (BAA) :
- Namoya Update: More recently, the operations team determined that modifications would need to be made to the wet circuit to accommodate the current fines content, which is larger than anticipated and beyond the capacity of some elements of the processing plant. While the adjustments will cause some delay in reaching peak production, the mine can continue to produce gold from the gravity circuit (which also recovers gold from the fines) and the heap leach process, which is designed for the coarser material. The projected gold production is as outlined in the July 9, 2014 press release.
- Twangiza: The tonnage throughput at the Twangiza mine is now in a range consistent with expectations following the plant adjustments made in 2013 and completed earlier this year and the advent of the current drier season.
3:35 pm Earnings Calendar (:SUMRX) : Today after the close look for the following companies to report:
- ANGO, AF, NSR, SLM, ALSN, UMPQ, ETH, GILD, ILMN, SKX, T, TMK, AHL, AIZ, ALGT, ANGI, AVB, AWH, CAKE, CCI, CLB, CLW, CSGP, CTXS, CVBF, EFX, ETFC, FB, FFIV, FLS, FR, FTNT, GGG, INFN, IPCM, KALU, LHO, MKSI, MSA, OII, ORLY, PLCM, PTC, QCOM, RE, RJF, SFG, SLG, SUSQ, TAL, TCBI, TER, TILE, TQNT, TSCO, TYL, USTR, VAR, CRUS, HBI, HMN, HWAY, IBKC, NXPI, WFT, CLGX, OFG, CHE, CMRE, CVTI, MAC, OHI, BDN, MBFI, TEX, MYCC, SGMO, TRIP, NVEC, QTM, CA, EGHT
- MCS, SCHL, NPBC, UNP, WIT, RCI, TNC, TBI, BCC, BPOP, DPS, GNTX, MTH, SVU, SXC, SXCP, TDY, WAB, AAL, ABC, ALXN, ASPS, BC, BHE, BKU, BMS, CAB, CAM, CAT, CCE, CCMP, CELG, CLF, CLFD, CLI, CMS, COG, CSH, CWEI, DFT, DGX, DHI, DLX, DNKN, DO, DST, EQM, EQT, FAF, GM, GPI, GPK, HOT, HSY, HZO, IMAX, IVC, JBLU, KKR, LLY, LTM, LUV, MHO, MMM, MTRN, NBL, NDAQ, NUE, NWE, ORI, OSTK, PENN, PHM, PJC, POT, PTEN, RCL, RS, RTIX, RTN, SFE, SIAL, SQNS, TROW, TWI, UA, UAL, UCBI, UFS, USG, VDSI, VIVO, WCC, WMAR, WYN, ZMH, ALK, DAN, F, FLIR, CRI, PDS, BMY, BSX, CRY, NOK, VAC, ISSI, PNK, RDWR, SUI, ARG, BBW, IQNT, JAH, LAZ, O, PRLB, GRUB, KEM, PCP, ECA, MNRO, QSII, IMS
2:59 pm Phillips 66 Partners increases quarterly dividend 10% to $0.3017 from $0.2743/share (PSXP) :
2:54 pm NYMEX Energy Closing Prices (:COMDX) :
- Sep crude oil rose $0.73 to $103.12/barrel
- Crude oil traded higher today as it gained support on bullish inventory data. The EIA reported that for the week ending July 18, crude oil inventories fell by almost 4 mln barrels when expectations called for a smaller draw of 2.6-2.9 mln. The energy component rose as high as $103.34 and settled with a 0.7% gain.
- Aug natural gas fell 1 cent to $3.76/MMBtu
- Natural gas spent morning action in positive territory, advancing to a session high of $3.81. However, prices pulled back into negative territory in late afternoon floor trade, leaving natural gas to settle 0.3% lower at its session low.
- Aug heating oil rose 3 cents to $2.88/gallon
- Aug RBOB fell 2 cents to $2.86/gallon
2:30 pm VirtualScopics: Eric Converse named President and Chief Executive Officer (VSCP) : Co announced that Eric Converse has been named president and chief executive officer, effective immediately. Mr. Converse joined the company's Board of Directors in August 2013 and has held the positions of interim president and chief executive officer since October 25, 2013.
2:22 pm CBOT Agriculture and Ethanol/ICE Sugar Closing Prices (:COMDX) :
- Sep corn rose 2 cents to $3.62/bushel
- Sep wheat rose 5 cents to $5.30/bushel
- Aug soybeans rose 17 cents to $12.01/bushel
- Sep ethanol rose 2 cents to $2.01/gallon
- Sep sugar (#16 (U.S.)) fell 0.25 of a penny to 24.35 cents/lbs
2:21 pm Dollar Holds at Levels Last Seen in February: 10-yr: unch..2.463%..USD/JPY: 101.50..EUR/USD: 1.3459 (:SUMRX) :
- The Dollar Index drifts little changed near 80.80 as a quiet session draws to a close. Click here to see a daily Dollar Index chart.
- The entire session has seen trade locked in a tight 10 cent range as action fights for the best close in five and a half months.
- EURUSD is -5 pips @ 1.3460 as trade dips to an eight-month low. A session sans any tradable news and data has confined the single currency to a tight 20 pip range. Flash Manufacturing and Services PMI numbers from across the region will be released tomorrow.
- GBPUSD is -30 pips @ 1.7035 as trade looks likely to post a sixth straight loss. Selling over the six-day slide has been orderly as the pair has erased just more than 100 pips with no day seeing more than a 40 pip decline. Today's weakness came after the Bank of England votes showed unanimous decisions to keep policy on hold and preceded comments from Bank of England Governor Mark Carney indicating any rate increases will be gradual and limited. Support in the 1.7000 area remains in focus. British data is limited to retail sales.
- USDCHF is unchanged @ .9025 as action holds at its best level in over five months. Earlier, Swiss National Bank Chairman Thomas Jordan reiterated the EURCHF1.20 floor will remain in place for the 'foreseeable future.'
- USDJPY is +5 pips @ 101.50 as buyers remain in control for a fourth session. Today's session has seen trade limited to a tight 25 pip range as action approaches resistance in the 101.60 region.
- AUDUSD is +55 pips @ .9450 as trade rallies to a three-month high in response to today's CPI report. The reading was in-line at 0.5% MoM, but the 3.0% YoY (2.9% YoY expected) print slightly outpaced estimates, and ignited a bid in the hard currency. Any close above .9495 would be the best since November. China's HSBC Flash Manufacturing PMI will cross the wires tonight.
- USDCAD is -5 pips @ 1.0730 amid a tame trade. Some early selling dropped action onto support near 1.0700 before the mixed core retail sales (0.1% MoM actual v. 0.3% MoM expected) and retail sales (0.7% MoM actual v. 0.6% MoM expected) numbers ran action back to the break even line.
2:01 pm Libbey and German-based Schonwald announce an agreement in which Libbey will become the exclusive foodservice distributor of Schonwald dinnerware products to the U.S. and Canada, effective Jan 1, 2015 (LBY) : Through this exclusive agreement, Libbey will be offering new premium dinnerware choices for U.S. and Canadian foodservice customers.
2:01 pm Fifth Street Finance announces promotion of Richard Petrocelli to CFO (FSC) : Co announced that its Board of Directors promoted a member of FSC's management team, Richard A. Petrocelli, to Chief Financial Officer. Alexander C. Frank is stepping down as CFO but remains Chief Operating Officer of Fifth Street Management LLC, FSC's investment adviser. In his role as COO of Fifth Street Management LLC, Mr. Frank oversees the platform's finance and operations infrastructure including FSC, Fifth Street Senior Floating Rate Corp. (FSFR) and various Fifth Street private funds. Mr. Petrocelli will continue to report to Mr. Frank.
1:48 pm COMEX Metals Closing Prices (:COMDX) :
- Aug gold fell $1.60 to $1304.50/oz
- Gold touched a session high of $1311.80 in early morning pit trade but gave up the gain as it slipped below the unchanged line in afternoon action. It brushed a session low of $1303.50 and settled with a 0.1% loss.
- Sep silver settled unchanged at $21.00/oz
- Silver touched a session low of $20.94 after retreating from a session high of $21.10. It then chopped around near the break-even line where it eventually settled unchanged.
- Sep copper settled unchanged at $3.21/lbs
1:36 pm Neonode and Magneti Marelli to jointly develop automotive HMI Solutions (NEON) : Co announced that it has started a collaboration with Magneti Marelli, a global Tier One automotive systems supplier, in the field of Human Machine Interfaces (HMIs) for the automotive sector.
- As part of the collaboration, Neonode and Magneti Marelli will jointly develop new innovative solutions for next-generation automotive HMIs. These HMIs will define the methods of interacting with next-generation in-car infotainment and telematics systems, with particular focus on intuitive ease-of-use, high performance, and safety.
- A key enabler of next generation HMIs is Neonode's optical touch and proximity sensing solutions, which facilitate unsurpassed performance and reliability, amidst the extreme environments automotive electronics are exposed to.
1:34 pm Wi-LAN enters into license agreement with Philips (PHG); licensed patents relate to networking capabilities of non-standard devices (WILN) : Co announced that the co's subsidiary, Open Network Solutions Inc., has entered into a license agreement with Koninklijke Philips N.V. and Philips Electronics North America Corporation. The licensed patents relate to networking capabilities of non-standard devices. The remaining terms of the license agreement are confidential.
1:10 pm NJ Resources principal subsidiary, New Jersey Natural Gas, receives approval for NJ RISE infrastructure program; $102.5 mln program to enhance system resiliency (NJR) : New Jersey Natural Gas received approval from the New Jersey Board of Public Utilities for its New Jersey Reinvestment in System Enhancements program. Through NJ RISE, NJNG will invest $102.5 mln for six capital projects designed to enhance the resiliency of its natural gas distribution and transmission systems and help mitigate the impact of major weather events in the future. NJNG filed for these upgrades in response to the BPU's March 20, 2013 Board Order seeking proposals to support and protect New Jersey's utility infrastructure so it may better withstand the effects of future storms.
1:04 pm CBD Energy announces $300K in residential solar loan approvals (CBDE) : Co announced it has obtained ~$300K of loan approvals for residential solar systems under its solar installations brand, Westinghouse Solar, within three weeks of operation following a soft launch in the Greater Boston area of Massachusetts.
- CBD Energy Limited markets its residential and commercial solar installations under the name Westinghouse Solar.
- The loan program also allows Westinghouse Solar customers to retain the full benefit of available tax credits and other renewable energy incentives, and to avoid potential issues involved with transfer of leases or power purchase agreements (PPAs) if/when they sell their homes.
12:58 pm Midday Market Summary: Mixed at Midday Despite Upbeat Earnings (:WRAPX) : The major averages are mixed at midday with the Dow Jones Industrial Average (-0.3%) holding a modest loss, while the Nasdaq (+0.3%) and Russell 2000 (+0.2%) trade ahead of the S&P 500 (+0.1%).
Stocks began the Wednesday session on a relatively quiet note with no news or economic data influencing the early sentiment. With that in mind, the attention turned to a full slate of quarterly earnings that have piled up since yesterday's closing bell. Even though the vast majority of reports have surpassed analyst estimates, the overall market has essentially yawned at the latest batch.
The top-weighted sector-technology (+0.2%)-trades just ahead of the broader market after Apple (AAPL 97.47, +2.75) and Microsoft (MSFT 45.14, +0.31) reported their results. Apple beat bottom-line estimates, while Microsoft missed on earnings, but beat revenue expectations. Even though the two names hold respective gains of 2.9% and 0.7%, the overall sector has been held in check by chipmakers.
The PHLX Semiconductor Index is lower by 2.0% with 27 of its 30 components in the red. Xilinx (XLNX 41.20, -6.95) has tumbled 14.4% after its below-consensus revenue and light revenue guidance overshadowed its one-cent beat.
Interestingly, chipmakers have not served as a true reflection of the performance among all high-beta names. Biotech stocks have received a boost from Biogen Idec (BIIB 335.31, +31.64), which trades up 10.5% following its blowout quarter. Also of note, Puma Biotech (PBYI 229.71, +170.68) has nearly tripled in value after announcing positive trial results. The broader iShares Nasdaq Biotechnology ETF (IBB 257.37, +3.69) is higher by 1.5%, while the health care sector (+0.5%) trades ahead of the remaining groups.
Unlike health care, the remaining countercyclical sectors trail the broader market. Consumer staples (-0.1%) and utilities (-0.2%) hover in the red, while the telecom services sector (+0.1%) sits right above its flat line.
Treasuries sport slim gains with the 10-yr yield down one basis point at 2.45%.
Economic data was limited to the weekly MBA Mortgage Index, which rose 2.4% to follow last week's 3.6% decline.
12:40 pm Further backtracking off mid-morning highs, Dow -45 has slipped back roughly 46 points -- S&P +1.3 and Nasdaq Comp +9 holding positive bias (:TECHX) :
12:36 pm Hill International receives task order contract from LACCD (HIL) : Co announced that it has received a contract from the Los Angeles Community College District (:LACCD) to provide project management, construction management and other specialty professional services on a task-order basis in support of LACCD's bond program. Hill's contract is one of ten awarded on a task-order basis the budget for which, in the aggregate for all ten contracts, is $82.9 million over the next five years.
12:33 pm ABM Industries selected by Commonwealth Partners to service multiple properties; deal builds upon Commonwealth Partners' existing contract with ABM Parking Services (ABM) : Co announced that ABM's Facility Services business has been selected to provide a full range of facilities engineering maintenance services for Commonwealth Partners' properties across the Western and Midwestern United States. The deal builds upon Commonwealth Partners' existing contract with ABM Parking Services.
12:27 pm Stock indices slightly extend slip off mid-morning highs -- Dow -30, S&P +3.7, Nasdaq Comp +18 (:TECHX) : Underperforming sectors in recent action include: Semi SMH, Retail XRT, Software IGV, Gold Miners GDX.
12:25 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).
Large Cap Gainers
- ISRG (447.27 +14.05%): Reported Q2 GAAP EPS of $2.77 vs $2.80 estimate, revs fell 11.5% yoy to $512.2 mln vs $505.6 mln estimate; co sees FY14 procedures growth of +5-8% (raised from +2-8%); upgraded to Buy from Hold at Stifel, to Outperform from Market Perform at Raymond James
- BIIB (338.34 +11.42%): Beat quarterly EPS by $0.65 ($3.49 vs $2.84 estimate), revs rose 40.5% yoy to $2.42 bln vs $2.16 bln estimate; sees FY14 EPS of $12.90-13.10 ex items (raised from $11.35-11.45) vs $11.62 estimate, sees FY14 revs +38-41% (from +26-28%) which calcs to ~$9.57-9.77 bln vs $8.9 bln estimate; target raised to $420 from $370 at Piper Jaffray
- TLM (10.89 +10.56%): Co confirmed it has been approached by Repsol (REPYY) with regards to various transactions
- XLNX (41.22 -14.38%): Beat quarterly EPS by $0.01 ($0.62 vs $0.61 estimate), revs rose 5.8% yoy to $612.6 mln vs $631.53 mln estimate; sees Q2 revs flat to -4% sequentially (~$588.1-612.5 mln) vs $643.91 mln estimate; downgraded to Market Perform from Outperform at BMO Capital Markets, target lowered to $42 from $60; downgraded to Market Perform from Outperform at William Blair; downgraded to Neutral from Buy at BofA/Merrill
- JNPR (22.38 -9.83%): Beat quarterly EPS by $0.02 ($0.40 ex items vs $0.38 estimate), revs rose 6.9% yoy to $1.23 bln vs $1.22 bln estimate; sees Q3 EPS of $0.35-0.40 ex items vs $0.44 estimate, revs of $1.15-1.20 bln vs $1.26 bln estimate
- GSK (50.48 -5.16%): Missed quarterly EPS by GBP 0.02 (GBP 0.19 vs GBP 0.21 estimate), revs fell 16.0% yoy to GBP 5.56 bln vs GBP 5.73 bln estimate; sees FY14 EPS of ~GBP 1.10 vs GBP 1.01 estimate
- PBYI (228.11 +169.08%): Announced positive top line results from Phase 3 PB272 (neratinib) trial in adjuvant breast cancer; co also amended its licensing agreement for neratinib with Pfizer
- RHI (51.75 +7.37%): Beat quarterly EPS by $0.03 ($0.55 vs $0.52 estimate), revs rose 9.5% yoy to $1.16 bln vs $1.14 bln estimate; target raised to $55 from $48 at Deutsche Bank
- LAD (93.98 +3.93%): Beat quarterly EPS by $0.10 ($1.34 ex items vs $1.24 estimate), revs rose 21.2% yoy to $1.22 bln vs $1.18 bln estimate; sees Q3 EPS of $1.34-1.38 vs $1.31 estimate, revs of $1.2-1.3 bln vs $1.24 bln estimate; sees Q4 EPS of $1.23-1.26, revs of $1.6-1.7 bln vs $1.35 bln estimate
- TUP (76.38 -9.87%): Missed quarterly EPS by $0.01 ($1.47 ex items vs $1.48 estimate), revs fell 2.0% yoy to $674.3 mln vs $689.15 mln estimate; sees Q3 EPS of $0.89-0.94 vs $1.08 estimate; sees FY14 EPS of $5.40-5.50 vs $6.35 estimate
- KING (19.33 -6.39%): Downgraded to Neutral from Buy at BofA/Merrill
- THRX (26 -6.07%): Weakness following poor results from GlaxoSmithKline (GSK); THRX has partnership agreements with GSK
11:53 am Stanley Black & Decker increases quarterly dividend to $0.52 from $0.50/share (SWK) :
11:50 am Gilead Sciences confirms FDA approval of Zydelig (idelalisib) for relapsed chronic lymphocytic leukemia, follicular lymphoma and small lymphocytic lymphoma; Zydelig has a boxed warning in its product label (GILD) : Co confirmed that the FDA has approved Zydelig (idelalisib) 150 mg tablets for the treatment of three B-cell blood cancers. Zydelig is indicated in combination with rituximab for patients with relapsed chronic lymphocytic leukemia (CLL.TO) for whom rituximab alone would be considered appropriate therapy and as monotherapy for patients with relapsed follicular B-cell non-Hodgkin lymphoma (FL) and small lymphocytic lymphoma (:SLL) who have received at least two prior systemic therapies. Accelerated approval was granted for FL and SLL based on overall response rate. Zydelig is a first-in-class inhibitor of PI3K delta, a protein that is over-expressed in many B-cell malignancies and plays a role in the viability, proliferation and migration of these cancer cells.
- Zydelig has a BOXED WARNING in its product label regarding the risks of fatal and serious toxicities: hepatic, severe diarrhea, colitis, pneumonitis and intestinal perforation; see below for Important Safety Information, including contraindications and warnings and precautions.
- FDA has also approved a risk evaluation and mitigation strategy (:REMS) for Zydelig.
11:47 am European Markets Closing Prices (:SUMRX) : European markets are now closed; stock markets across Europe performed as follows:
- UK's FTSE:+0.0%
- Germany's DAX:+0.2%
- France's CAC:+0.1%
- Spain's IBEX:0.0%
- Portugal's PSI:+1.6%
- Italy's MIB Index:-0.2%
- Irish Ovrl Index:+0.1%
- Greece ASE General Index: +0.2%
11:44 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (152) outpacing new lows (44) (:SCANX) : Stocks that traded to 52 week highs: AA, AAPL, AAT, ABC, ABT, ACH, ADM, AHGP, ALGT, AMT, AON, APD, APH, ARE, ARES, ARLP, ATVI, BABY, BAX, BBEP, BBL, BDN, BEE, BHP, BITA, BK, BMO, BRCM, BX, CALM, CBG, CHRW, CIB, CNI, CODE, CONE, COO, CORR, CSC, DDR, DMLP, DOW, EGAS, EMC, ENB, EPD, ESS, FCS, FET, FLT, FTI, GCI, GIL, GLNG, GPRE, GT, H, HAL, HES, HNP, HPQ, HST, HTLD, IBA, IMS, INN, INVN, IPG, ISS, ITMN, JLL, KEX, KMR, KNX, KOG, LEJU, LGCY, LLY, LMT, LNG, LRE, LSTR, LUV, LYB, MAMS, MAR, MCO, MPB, MRO, MTD, MW, MWE, NFX, NGG, NJ, NNBR, NOC, NSC, NTES, NYLD, PAA, PBYI, PEIX, PEP, PHX, PII, PLBC, PPC, PTEN, PTR, PTSI, PXLW, QCOM, QLTY, R, REG, RES, REX, REXI, RGP, RHI, SAIA, SAVE, SBGL, SE, SGC, SGK, SHW, SIAL, SLCA, SNP, SPG, SRC, SSL, STLD, TEN, THRM, TRN, TRNS, TRP, TSRA, UNP, VAR, VIPS, VNR, WCN, WIN, WLB, WLK, WLL, WRI, XEC
Stocks that traded to 52 week lows: ACI, ALDX, AMBT, ARO, ASNA, ASPN, BTU, CAB, CGG, CHLN, EMAN, ESI, ESNT, FMER, FREE, FULT, GEVO, GFIG, HERO, IMN, INTX, LAYN, LIQT, MRKT, NKSH, OSTK, PIKE, PIP, PNRA, PRXI, RCPI, ROYT, RTGN, SPWH, SQI, TCCO, TCS, TRC, TSE, UIS, VII, XLNX, XNY, ZA
ETFs that traded to 52 week highs: AFK, AMJ, EMB, EPP, EWC, EWH, EZA, GAF, IYR, IYT, NIB, OEF, QQQ, SPY, TLT, URE, VWO, XLK
ETFs that traded to 52 week lows: JJG, RJA, TBT
11:41 am Biogen Idec: PLEGRIDY (Peginterferon beta-1a) approved in the European Union for the treatment of multiple sclerosis; initial country launches expected to begin in the coming weeks (BIIB) : Co announced that the European Commission has granted marketing authorization for PLEGRIDYTM (peginterferon beta-1a) as a treatment for adults with relapsing-remitting multiple sclerosis, the most common form of multiple sclerosis. PLEGRIDY is dosed once every two weeks and is administered subcutaneously with the PLEGRIDY PEN, a new ready-to-use autoinjector, or a prefilled syringe.
- PLEGRIDY, the only pegylated interferon approved for use in RRMS, has been proven to significantly reduce important measures of disease activity, including number of relapses, MRI brain lesions, and disability progression.
- The EC approval of PLEGRIDY is based on results from one of the largest pivotal studies of a beta interferon conducted, ADVANCE1, which involved more than 1,500 patients with relapsing forms of MS.
- PLEGRIDY reduced the risk of sustained disability progression confirmed at twelve weeks by 38 percent (p=0.0383) and at twenty four weeks by 54 percent (p=0.0069, post-hoc analysis). In addition, the number of gadolinium-enhancing [Gd+] lesions was significantly reduced by 86 percent (p
11:37 am The Eastern Company declares one-time extra cash dividend of $0.04/share payable Sept. 15, 2014 (EML) :
11:35 am Expedia sets new session high of 81.06, edging up toward last week's reaction high at 81.14 (EXPE) : Note that its multi-year close/intraday highs from early July are at 82.21/82.36.
11:23 am Currency Commentary: Dollar Continues Push Higher (:SUMRX) :
- The Dollar Index is pressing up and preparing the multi-month high of 81.02 set on June 5. The June highs were set in reaction to the ECB QE announcement. The DXY is up approx 2% against a basket of currencies as markets react to a slow tightening Fed. It has been a quiet morning on the economic data front. Overnight and into tomorrow morning we will get the preliminary PMI data which should help shape the global economy debate.
- The euro is showing some signs of settling after dropping below the key 1.35 support level. The single currency though remains in a firm downward trend. A Consumer Confidence number released at 10am missed expectations. As mentioned above PMI will be a key driver in trade tomorrow morning.
- The pound continues to slide lower but the selling remains moderate. Cable dropped to its lowers level in four weeks after the release of the Bank of England minutes. Sterling bulls were disappointed to see a unanimous vote in favor of keeping rates low. The general belief is that some BoE members are moving towards raising rates. The minutes revealed that this was discussed but that low wage pricing pressure was a cause for concern that would keep the central bank from tightening at the moment.
- The yen is seeing some selling pressure here as U.S. equities run higher but the move remains rather dull on a longer term basis as the currency continues to trade in the 101.30-101.50 area. Japan's Trade Balance (7:50pm) and preliminary PMI survey (9:35pm) are due out this evening (BONDX, FOREX).
11:01 am Talisman Energy (halted) responds to media reports; acknowledges that it has been approached by Repsol (REPYY) with regards to various transactions (TLM) : Co stated: "Talisman is issuing this press release at the request of Market Surveillance at IIROC on behalf of the Toronto Stock Exchange. Talisman acknowledges that it has been approached by Repsol with regards to various transactions. There is no assurance that any transaction will be agreed. Until such time as it is appropriate to make a public announcement on any potential transaction, Talisman does not intend to make any further comment on this matter."
10:50 am Whirlpool rebounds aggressively off opening low (WHR) : Stock broke below its July/June troughs off the open to set a new five month low (135.37) in the wake of its earning miss/guidance but it was able to rebound roughly $10 off the low to set a new high for the month (144.82).
10:45 am Relative sector strength (:TECHX) : Sector that have outperformed the S&P on the move off morning pullback lows include: Technology XLK, Housing XHB, Airline, Materials XLB, Energy XLE.
10:36 am S&P +4.3 joins Nasdaq Comp +19 at new session high -- Dow -12 (:TECHX) :
10:31 am Nasdaq Comp/100 and small-cap Russell 2000 set new session highs (:TECHX) :
10:31 am Magnegas files provisional patent on design improvements and new gas (MNGA) : Co announced that it has filed provisional patents on the production methods and composition of MagneGas 2. This latest provisional patent is part of MagneGas Corporation's effort to strengthen and broaden its intellectual property.
- In this case the application relates to new production methods and designs required to produce gas from high carbon liquid wastes as well as the composition of MagneGas 2.
10:31 am Sep crude oil rises to new session highs on inventory data; now up 0.5% at $102.90 (:COMDX) :
10:22 am Stock indices edge to new rebound highs following first half hour pullback -- Dow -22, S&P +2.2, Nasdaq Comp +14 (:TECHX) :
10:15 am Financial Select Sector SPDR displaying relative strength in recent trade (XLF) : C +1.1%, MS +0.9%, SNV +1.1%, JPM +0.5%, BAC +0.5%
10:15 am Acorn Intl has no comment on trading activity (ATV) : Co announced that the New York Stock Exchange has notified the Company about unusual trading activity in its American depositary shares on July 22, 2014. It is the Company's policy to not comment on unusual trading activity.
10:11 am Nielsen announces it will expand its coverage area to include two new countries - Bolivia and Paraguay; brings total number of Latin American countries covered by co to 19 andtotal number of countries around the world to 106 (NLSN) :
10:10 am Charter Comm announces that Charter Business will begin to buy out the early termination fees associated with business customers wishing to switch to Charter Business services from their previous provider (CHTR) :
10:01 am BAE Systems awarded series of contracts worth ~ $40 mln by The U.S. Army for the third-generation configuration of its Common Missile Warning System (BAESY) : Co announced that The U.S. Army has awarded co a series of contracts, worth ~ $40 million, for the third-generation (Gen3) configuration of its Common Missile Warning System (:CMWS), which provides an enhanced capability for aircrews to locate and protect against infrared guided threats. The Gen3 configuration includes hostile fire indication to detect and evade small arms fire and new data recording capabilities for detailed post-mission analysis.
9:47 am Opening Market Summary: Stocks Slip Out of the Gate (:WRAPX) : The S&P 500 (-0.1%) began the session on a slightly higher note before joining the Dow Jones Industrial Average (-0.3%) in the red. Most notably, the price-weighted Dow has been pressured by Boeing (BA 127.40, -2.34), which trades lower by 1.8% despite beating earnings estimates.
On the upside, the health care sector (+0.8%) trades ahead of the remaining groups thanks to an earnings beat from Biogen Idec (BIIB 339.30, +35.62). The stock sports an advance of 11.7%, while the broader iShares Nasdaq Biotechnology ETF (IBB 258.30, +4.62) trades higher by 1.9%.
Treasuries have held their ground through the opening minutes of the session with the 10-yr note up three ticks (10-yr yield -1 bp at 2.45%).
9:43 am Stock indices slide back off opening highs -- Dow -45, S&P -0.2, Nasdaq Comp +3.7 (:TECHX) :
9:41 am iShares NASD Biotech gaps up to last week's high (IBB) : Noted relative strength in the IBB earlier (09:36 with individual names) with it extending to last week's peak at 259.85 (session high 259.05). Its early month high comes into play at 266.43 (see The Technical Take for chart).
9:36 am Relative sector strength (:TECHX) : Early strength has been noted in Biotech (IBB, BIIB, ICPT, REGN, CELG, BMRN, SGEN, MDVN, GILD, ILMN, ALXN, MYL, MYGN, AMGN), Health XLV, Coal KOL, Transports, Trucking.
9:34 am Minor new all time high S&P +3.3, Nasdaq Comp +14 -- Dow -23 (:TECHX) : Weighing on the Dow in early trade are: BA, CSCO, CAT, KO, INTC, MCD, MRK, PFE, MSFT, T.
9:31 am Ligand Pharma partner GSK (GSK) announces record quarterly Promacta/Revolade revenue of $92 mln (LGND) : Co announced that its partner GlaxoSmithKline (GSK) plc has announced global revenue for Promacta/Revolade for the second quarter ended June 30, 2014 of $92 mln, up 31% from the second quarter of 2013. United States, European Union and the Emerging Markets all reported double-digit growth over the prior quarter, with United States up 17% and Emerging Markets up 50% versus first quarter 2014.
9:26 am On The Wires (:WIRES) :
- Mack-Cali Realty (CLI) announced that United Water Management & Services has signed a new 20-year, 116,360-square-foot lease at Mack-Cali Centre VI in Paramus, New Jersey.
- ControlScan announced that ProPay, a subsidiary of TSYS (TSS), has partnered with the payment security and compliance solution provider to execute a comprehensive PCI program.
- Wix.com (WIX) announced the launch of a code-free Etsy app, empowering users to integrate their Etsy shops into their Wix websites.
- MoneyGram (MGI) and Canada Post have extended their agreement to provide MoneyGram services at Canada Post locations through 2020.
- YuMe (YUME) announced Ngage, a global, first-to-market, multi-screen advertising opportunity for brand marketers. The Ngage series is comprised of an extensive set of multi-screen video ad units for connected TV, tablet, smartphone, and PC.
- Fortinet (FTNT) redefined the standard for firewall performance by being the first network security vendor to deliver a firewall - the new FortiGate 5144C - that exceeds 1 terabit per second throughput performance and offers 10GbE, 40GbE and 100GbE connectivity options.
- Foundation Medicine (FMI) has partnered with the Addario Lung Cancer Medical Institute and Bonnie J. Addario Lung Cancer Foundation to launch a first of its kind, multi-center, international prospective study, the Genomics of Young Lung Cancer.
- Disney (DIS) Interactive announced the latest Play Set for Disney Infinity: Marvel Super Heroes (2.0 Edition) - Guardians of the Galaxy, inspired by the upcoming film Marvel's Guardians of the Galaxy, in theaters August 1.
- BBX Capital Real Estate, a division of BBX Capital (BBX), announced its upcoming plans for Bonterra, its newly proposed master-planned community located in Hialeah, in Miami-Dade County, Florida. It is anticipated that the Bonterra community will be built on an ~ 128 acres of land consisting of a 114 acre parcel owned by BBX Capital having a carrying value of $30.7 mln at March 31, 2014, and ~ 14 acres of adjacent land which is currently under contract to acquire.
- Banc of California (BANC) teamed with a coalition of Southern California banks to lead the recapitalization of Los Angeles-based Pan American Bank.
- NetSuite (N) announced that Quorum Federal Credit Union has selected NetSuite OneWorld to manage its financials, help support its rapid growth and power its business transformation.
- athenahealth (ATHN) and the New Haven Community Medical Group announced that NHCMG has selected athenahealth as one of its preferred health information technology vendors.
- Limelight Networks (LLNW) announced that Plarium Global has deployed the Limelight Orchestrate Content Delivery and Cloud Storage platform to enhance the performance, reliability and experience of its online games.
9:20 am Inovio Pharma now up 41% at $15.52 (see 09:15 and 09:19 post) (INO) :
9:18 am Inovio Pharma initially spikes 31% to $14.50/share following news that the co's HPV Immunotherapy achieves primary efficacy endpoint in randomized Phase II cervical dysplasia trial (see 09:15 post) (INO) :
9:17 am MeetMe prices $10 mln public offering of 5 mln shares of common stock (MEET) : Co announced that is has priced an underwritten public offering of 5 mln shares of its common stock at an offering price of $2.00/share, for gross proceeds of ~$10 mln.
- MeetMe has also granted the underwriters a 30-day option to purchase up to an additional 750K shares of common stock to cover over allotments, if any. The offering is expected to close on July 28, 2014, subject to satisfaction of customary closing conditions. MeetMe intends to use the net proceeds from the proposed offering for general working capital purposes.
- JMP Securities acted as the sole book-running manager.
9:15 am Inovio Pharmaceuticals HPV Immunotherapy achieves primary efficacy endpoint in randomized Phase II cervical dysplasia trial (INO) :
- Co announced successful results from its randomized, double-blind, placebo-controlled phase II trial of VGX-3100 in women with biopsy-proven cervical intraepithelial neoplasia 2/3 (CIN2/3) associated with human papillomavirus (:HPV) types 16 or 18.
- Treatment with VGX-3100, Inovio's HPV16/18-specific immunotherapy, resulted in histopathological regression of CIN2/3 to CIN1 or no disease, meeting the study's primary endpoint.
- In addition, the trial demonstrated clearance of HPV in conjunction with regression of cervical lesions. Robust T-cell activity was detected in subjects who received VGX-3100 compared to those who received placebo. Treatment was randomized 3:1 between the VGX-3100 and placebo groups, and was stratified by age and severity of CIN.
- The primary endpoint, histologic regression, was evaluated 36 weeks after the first treatment. In the per protocol analysis, CIN2/3 resolved to CIN1 or no disease in 53 of 107 (49.5%) women treated with VGX-3100 compared to 11 of 36 (30.6%) who received placebo.
- This difference was statistically significant (p
- The treatment was generally well-tolerated, with only administration site redness occurring significantly more frequently in the VGX-3100 group compared to the placebo group in the 7- and 28-day periods following treatment.
9:14 am La Jolla Pharm prices offering of 4.8 mln shares of its common stock at $10.50 per share; Jefferies is acting as sole book-runner for the offering (LJPC) :
9:14 am S&P futures vs fair value: +1.20. Nasdaq futures vs fair value: +9.70. (:WRAPX) : The stock market is on track to build on yesterday's gain as futures on the S&P 500 trade one point above fair value.
Market participants have received an avalanche of earnings since yesterday's closing bell, but most of the results have surpassed estimates. Two major tech components-Apple (AAPL 95.32, +0.60) and Microsoft (MSFT 45.52, +0.69)-are expected to display opening strength after both reported mixed results. Apple beat bottom-line estimates on light revenue, while Microsoft posted a bottom-line miss on better than expected revenue.
Elsewhere among tech names, Broadcom (BRCM 40.15, +1.40) is indicated higher after beating estimates, while Electronic Arts (EA 37.50, -0.92) and Juniper Networks (JNPR 22.77, -2.05) are on track to show early losses. Juniper Networks guided lower, while EA beat estimates and guided in line with estimates.
Treasuries enter the session on their highs with the 10-yr yield off one basis point at 2.45%.
9:05 am SanDisk completes acquisition of Fusion-io (FIO); co expects the acquisition to be dilutive to non-GAAP earnings in the near term; acquisition is expected to be accretive to non-GAAP earnings in the second half of 2015 (SNDK) : Co nnounced it has completed the previously announced acquisition of Fusion-io (FIO). Co's Q3 financial results will include the results of Fusion-io from July 23, 2014 through September 28, 2014.
- Co's non-GAAP P&L results will be impacted by cash-related charges for transaction, restructuring, and integration costs as well as the reduction of support and maintenance revenue due to the effects of purchase accounting.
- SanDisk expects the acquisition to be dilutive to non-GAAP earnings in the near term primarily due to charges for transaction, restructuring and integration costs, which are expected to be ~ $35 million in the third quarter of 2014 and ~ $15 million in the fourth quarter of 2014, as well as operating losses from Fusion-io partially offset by modest near-term synergies. The acquisition is expected to be accretive to non-GAAP earnings in the second half of 2015.
9:05 am Knight Transportation beats by $0.04, reports revs in-line (KNX) : Reports Q2 (Jun) earnings of $0.31 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.27; revenues rose 7.9% year/year to $264.2 mln vs the $265.94 mln consensus.
- "In the second quarter, the operating ratio of our trucking segment improved to 79.0% from 81.7% in the same quarter last year. In the second quarter, operating income in our trucking segment improved 21.9% while our revenue, excluding trucking fuel surcharge, grew 6.3%. We continue to see positive results from our efforts to improve yield and drive operational efficiencies."
- ''We are pleased with our positive results as we continued to grow our revenue and improve our operating margin. During the second quarter, overall demand remained strong while capacity appeared to tighten. Both our trucking and logistics segments increased revenue and operating income meaningfully, when compared to the same quarter last year. In our trucking business, revenue per tractor increased 6.0%, year over year, with a 5.6% improvement in revenue per loaded mile, a 3.1% increase in our length of haul, a 140 basis point improvement in our non-paid empty mile percentage, and a 1.1% decrease in miles per tractor. In our logistics business, revenue growth was strong and gross margin percentage improved."
9:03 am Gogo announced that its inflight Internet service is now live onboard Japan Airlines (GOGO) :
9:02 am Public Service Ventures into Vermont with acquisition of Solar Facility from juwi (PEG) : Co announces that it will acquire the ERWR Whitcomb Farm Solar project from juwi solar.
- The facility, which will now be known as the PSEG Essex Solar Energy Center, has a 25-year power purchase agreement with Vermont Electric Power Producers, as part of the Vermont Sustainably Priced Energy Enterprise Development program.
- During JSI's ownership of the project, it advanced the development work previously performed by Encore Redevelopment, Walden Renewables and Whitcomb-Smith Solar.
9:01 am TransCanada receives regulatory approval for Northern Courier Pipeline project (TRP) : Co announced that the Alberta Energy Regulator has approved TransCanada's application to construct and operate the Northern Courier Pipeline Project (Northern Courier).
- TransCanada was selected by Fort Hills Energy LP to design, build, own and operate the $800 mln Northern Courier Pipeline Project, which is fully contracted under a long-term agreement. The ~90-kilometre (56-mile) pipeline system will transport bitumen and diluent products between the Fort Hills mine and bitumen extraction facility and Suncor's East Tank Farm, located north of Fort McMurray, Alberta. Northern Courier will consist of a 24-inch diameter insulated steel pipeline to transport bitumen, and a 12-inch diameter steel pipeline to transport diluent.
9:00 am Amazon.com planning to expand Prime music selection (AMZN) : Co announced it has added hundreds of thousands of songs and hundreds of new, expert-programmed Prime Playlists to the Prime Music catalog. The newly-added selection includes songs from artists new to the Prime Music catalog, as well as additional tracks from artists already in the Prime Music catalog.
9:00 am Ultragenyx Pharma appoints Sunil Agarwal, M.D. as Chief Medical Officer and Senior Vice President (RARE) : The co announced it has appointed Sunil Agarwal, M.D. as its Chief Medical Officer and Senior Vice President, effective August 25, 2014.
9:00 am Marathon Patent Group announces uplisting to The NASDAQ Stock Market (MARA) : Co announced that its shares of common stock have been approved for uplisting to The NASDAQ Stock Market LLC effective at the opening of trading on Monday, July 28th.
9:00 am Level 3: Department of Homeland Security awards Level 3 LAN managed services contract for end-to-end communications services (LVLT) : Co announced the U.S. Department of Homeland Security has selected the global telecommunications carrier to deliver a comprehensive suite of local area network managed services for the agency within the National Capital Region under the Washington Interagency Telecommunications System 3 contract.
- The multi-year, multi-million dollar contract represents a significant shift in how public agencies approach information technology infrastructure procurement and management, particularly as Network as a Service models gain greater traction to help the government take better advantage of the network scale, purchasing flexibility and operating efficiencies available within the private sector
8:59 am S&P futures vs fair value: +1.80. Nasdaq futures vs fair value: +11.20. (:WRAPX) : The S&P 500 futures trade two points above fair value.
Markets in Asia ended on a mostly higher note.
- Economic data was limited:
- Australia's CPI rose 0.5% quarter-over-quarter (expected 0.6%, previous 0.6%), while the year-over-year reading increased 3.0% (consensus 3.1%, prior 2.9%)
- Singapore's CPI slowed to 1.8% year-over-year from 2.7% (expected 2.4%)
- Taiwan's industrial production surged 8.6% year-over-year (expected 7.2%)
- Japan's Nikkei slipped 0.1% amid a lackluster trade. Exporters ended mixed with Honda Motor off 0.9% and Sony up 1.0%.
- Hong Kong's Hang Seng rallied 0.8% to its best levels since the beginning of December. Property developers saw strong gains as China Overseas Land & Investment and China Resources Land added 4.4% and 7.5%, respectively, on expectations of looser lending standards later in the year.
- China's Shanghai Composite added 0.1%, settling at a five-week high. Brokerage names were boosted by the next wave of IPOs coming to market with CITIC Securities rallying 1.0% and Haitong Securities climbing 2.3%.
- Participants received a handful of data:
- Great Britain's BBA Mortgage Approvals came in at 43,300 (expected 43,400, previous 41,900), while CBI Distributive Trades Survey jumped to 21 from 4 (expected 16)
- French Business Survey held steady at 97 (expected 98)
- Italy's non-EU trade surplus narrowed to EUR2.15 billion from EUR2.45 billion
- Great Britain's FTSE is higher by 0.2% with consumer names showing strength. Capita trades up 3.7%, while Associated British Foods and Marks & Spencer Group hold respective gains of 1.7% and 1.2%.
- In France, the CAC trades up 0.4%. Airbus is higher by 2.2% after signing a delivery contract with Hawaiian Airlines. Advertiser Publicis Groupe is the weakest performer, down 1.1%.
- Germany's DAX sports an advance of 0.6% with Daimler contributing to the strength. The exporter is higher by 0.6% following its upbeat quarterly report. Peer Volkswagen trades up 1.1%.
8:53 am Mack-Cali Realty announces over 116,000-square-foot lease with United Water Management in Paramus (CLI) : Co announced that United Water Management & Services, Inc., a sustainable water and wastewater management solutions provider, has signed a new 20-year, 116,360-square-foot lease.
- United Water was recently awarded $5.5 million in tax credits from the New Jersey Economic Development Authority (:NJEDA), through its Grow New Jersey Assistance Program, to remain in the state.
8:51 am Coca-Cola FEMSA reports Q2 results (KOF) :
- Reported total revenues reached Ps. 41,434 million in the second quarter of 2014, an increase of 14.3% as compared to the second quarter of 2013. On a currency neutral basis and excluding the non-comparable effect of the integration of Grupo Yoli ("Yoli") in our Mexican territories, Companhia Fluminense de Refrigerantes and Spaipa S.A. Industria Brasileira de Bebidas in our Brazilian operation, total revenues grew 20.5%.
- Reported operating income reached Ps. 5,742 million in the second quarter of 2014, an increase of 11.7% as compared to the same period of the previous year, resulting in an operating margin of 13.9%.
- Reported operative cash flow grew 23.5% to Ps. 8,242 million in the second quarter of 2014, as compared to the same period in 2013. Our reported operative cash flow margin expanded 150 basis points to 19.9%. Excluding the recently integrated territories, operating cash flow margin expanded 250 basis points to 20.9%.
- Reported consolidated net controlling interest income reached Ps. 2,679 million in the second quarter of 2014.
8:50 am Gas Natural: Algonquin Power & Utilities Corp. (AQUNF) sends letter to Gas Natural Inc. Board of Directors; Gas Natural tells Algonquin the company is 'not for sale' (EGAS) : Algonquin Power & Utilities Corp. (AQUNF) announced that it sent a letter to the Gas Natural Inc. board of directors:
- Algonquin has extended multiple proposals to acquire Gas Natural
- Gas Natural tells Algonquin the company is "not for sale" and refuses to discuss a proposed transaction
- Through its self-preserving pursuit of an undefined and uncertain standalone plan, Gas Natural Board is preventing shareholders from receiving an immediate and compelling premium for their shares
- Algonquin urges Gas Natural Shareholders to demand that the Gas Natural Board maximize shareholder value through a sale process
- Algonquin encourages other shareholders to withhold support for incumbent Directors and value destructive resolutions in advance of the July 30, 2014 Annual Shareholders' Meeting
8:49 am On The Wires (:WIRES) :
- Babcock & Wilcox (BWC) announced that Babcock & Wilcox Volund A/S, a subsidiary of Babcock & Wilcox Power Generation Group, has been awarded a contract for more than $80 mln to build a 280 megawatt-thermal biomass boiler system for the Sk rb kv rket power plant near Fredericia, Denmark.
- Marin Software (MRIN) announced that DataSong has become a Marin Connect certified partner.
- NQ Mobile (NQ) and A Wireless, a Verizon Wireless (VZ) Premium Retailer, announced the availability of a comprehensive, bundled security solution that ensures the safety of subscribers' devices and the valuable data they hold. The solution is available at over 200 A Wireless stores across the US.
- Aemetis (AMTX) received a $3 mln matching grant award from the California Energy Commission Alternative and Renewable Fuel and Vehicle Technology Program. This award comes as a result of the co's "Low-Carbon Sorghum Ethanol Project" application to the "Pilot-Scale and Commercial-Scale Advanced Biofuels Production Facilities" grant solicitation released by the CEC earlier this year.
8:44 am ClickSoftware Correction: Misses by $0.02, beats on revs; lowers FY14 EPS, raises FY14 rev guidance (CKSW) : Reports Q2 (Jun) adj. loss of $0.03 per share, $0.02 worse than the Capital IQ Consensus of ($0.01); revenues rose 30.0% year/year to $32.1 mln vs the $31.04 mln consensus.
- Software license revenues for the second quarter of 2014 were $6.0 million, up 4% compared with $5.7 million in the same period last year.
- Cloud subscription revenues increased significantly to $5.4 million from $0.3 million for the same period last year.
- Support revenues were $8.8 million, up 17% compared with support revenues of $7.5 million for the same period last year.
- Consulting revenues were $11.9 million, up 8% compared with consulting revenues of $11.1 million for the same period last year.
- Earlier we compared FY14 EPS guidance to FY15 estimates; that comment has been removed.
8:31 am SEI Investments beats by $0.06, beats on revs (SEIC) : Reports Q2 (Jun) earnings of $0.48 per share, $0.06 better than the Capital IQ Consensus Estimate of $0.42; revenues rose 16.1% year/year to $318.8 mln vs the $313.43 mln consensus.
8:31 am Apollo Commercial Real Estate closes two loan transactions totaling $54.5 mln (ARI) : The co announced they closed two commercial real estate loan transactions totaling $54.5 million.
- Year-to-date, ARI has committed to invest in over $728 million of commercial real estate loan transactions and CMBS.
- ARI's new investments include the following:
- $20.0 million floating-rate mezzanine loan secured by the equity interest in a 280-key hotel in the NoMad neighborhood of New York City.
- $34.5 million floating-rate, first mortgage loan secured by a newly constructed, Class-A, 63-unit multifamily property located in Brooklyn.
8:31 am Global Partners increases cash distribution 2% for Q2 to $0.6375/unit (GLP) : Co announces it has declared a quarterly cash distribution of $0.6375 per unit ($2.55 per unit on an annualized basis) on all of its outstanding common units for the period from April 1 through June 30, 2014. The distribution will be paid August 14, 2014 to unitholders of record as of the close of business August 5, 2014.
- The distribution to be paid in August 2014 represents an increase of approximately 2% over the quarterly distribution of $0.6250 per unit paid in May 2014 and an increase of approximately 8.5% over the quarterly distribution of $0.5875 per unit paid in August 2013.
8:28 am S&P futures vs fair value: +1.40. Nasdaq futures vs fair value: +9.20. (:WRAPX) : After posting a modest gain yesterday, the stock market is on track to build on its week-to-date advance. With no economic data to influence sentiment, participants have been focused on quarterly earnings this morning. Like yesterday, the vast majority of the results have come in ahead of analyst expectations.
In the tech sector, Apple (AAPL 95.08, +0.36) beat bottom-line estimates on revenue that was bit below expectations, while Microsoft (MSFT 45.70, +0.87) missed earnings expectations on above-consensus revenue. Both listings, however, are indicated to open the session in the green.
Elsewhere, the biotech group should receive support from Biogen Idec (BIIB 328.00, +24.33), which trades higher by 8.0% after reporting well ahead of expectations.
8:23 am European Markets Update: FTSE +0.2%, CAC +0.4%, DAX +0.5% (:SUMRX) : Major European indices trade higher across the board with Germany's DAX (+0.5%) setting the pace.
- Participants received a handful of data:
- Great Britain's BBA Mortgage Approvals came in at 43,300 (expected 43,400, previous 41,900), while CBI Distributive Trades Survey jumped to 21 from 4 (expected 16)
- French Business Survey held steady at 97 (expected 98)
- Italy's non-EU trade surplus narrowed to EUR2.15 billion from EUR2.45 billion
- Great Britain's FTSE is higher by 0.2% with consumer names showing strength. Capita trades up 3.7%, while Associated British Foods and Marks & Spencer Group hold respective gains of 1.7% and 1.2%.
- In France, the CAC trades up 0.4%. Airbus is higher by 2.2% after signing a delivery contract with Hawaiian Airlines. Advertiser Publicis Groupe is the weakest performer, down 1.1%.
- Germany's DAX sports an advance of 0.5% with Daimler contributing to the strength. The exporter is higher by 0.6% following its upbeat quarterly report. Peer Volkswagen trades up 1.1%.
8:21 am Doral Fincl trading 14% higher after confirming Puerto Rico Supreme Court ruling; says 'we hope that the government of Puerto Rico will take this opportunity to reconsider its ill-conceived decision' (announced last night) (DRL) :
- Responding to a ruling by the Supreme Court of Puerto Rico ordering the Court of First Instance to expedite an evidentiary hearing in Doral's case against the Hacienda, Counsel for Doral Financial Corporation, Matthew D. McGill of Gibson, Dunn & Crutcher, issued the following statement:
- "The Puerto Rico Supreme Court has recognized once again the important public interest and urgency of this case and has ordered the court to act diligently and immediately. Now the burden is on government to demonstrate the basis for its decision to arbitrarily nullify its longstanding tax agreement with Doral. While we are confident that our case will prevail in court, we hope that the government of Puerto Rico will take this opportunity to reconsider its ill-conceived decision to abandon its contractual obligation to Doral. And we continue to urge the government to negotiate a solution that is fair for all parties and that is in accordance with a series of tax agreements over the last eight years that have continually ratified the government's debt to Doral."
8:21 am On The Wires (:WIRES) :
- The Family Institute at Northwestern University and 2U (TWOU) will partner to deliver a new online Master of Arts in Counseling degree program, Counseling@Northwestern, which will begin accepting applications in fall 2014 for classes beginning in spring 2015.
- CACI International (CACI) has been awarded a prime contract with a total potential value of $22 mln to continue providing personnel and pay business process transition services for the Bureau of Naval Personnel.
- NCR (NCR) announced that Rhodes 101 Stops Convenience Stores have deployed NCR's ConvenienceGo mobile shopping app to make fueling easier.
- Lionsgate (LGF) has formed a strategic partnership with the Finnish games developer Next Games and will make an investment in their extended Series A financing round.
- Raytheon (RTN) completed two critical program reviews for the new Air and Missile Defense Radar, the U.S. Navy's next generation integrated air and ballistic missile defense radar.
- e+CancerCare became the latest multisite network of treatment centers to contract with Varian Medical Systems (VAR) for a system-wide deployment of Varian's FullScale oncology information technology solution.
- Ampio Pharma (AMPE) announced the opening of its new headquarters, manufacturing and research facility in Englewood, CO.
- BioMarin Pharma (BMRN) and Sarah Cannon Research UK announced a collaboration to enroll patients in an ongoing Phase 3 clinical trial of its PARP inhibitor, BMN 673, for the treatment of hereditary breast cancer with a BRCA mutation. This ongoing Phase 3 trial has recently been named EMBRACA. Sarah Cannon Research UK enrolled the first patient outside of the U.S., expanding the trial internationally.
- ARRIS (ARRS) announced that Comporium will sell the ARRIS MS4000 under the name "Moxi Sling" to its Whole Home Solution subscribers. Also, Service Electric Cable TV and Communications selected ARRIS for their new SE NEXT Entertainment Platform.
- BlackBerry (BBRY) announced that BlackBerry Enterprise Service 10 will now be available as a hosted service through third-party partners worldwide.
8:10 am Freeport-McMoRan beats by $0.06, beats on revs (FCX) : Reports Q2 (Jun) earnings of $0.58 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $0.52; revenues rose 28.8% year/year to $5.52 bln vs the $5.31 bln consensus.
- Capital expenditures totaled $2.0 bln for second-quarter 2014
- Consolidated sales for second-quarter 2014 totaled 968 mln pounds of copper, 159 thousand ounces of gold, 25 mln pounds of molybdenum and 16.0 mln barrels of oil equivalents (:MMBOE), compared with second-quarter 2013 sales of 951 mln pounds of copper, 173 thousand ounces of gold, 23 mln pounds of molybdenum and 5.0 MMBOE (reflecting oil and gas results beginning June 1, 2013.
- Average realized prices for second-quarter 2014 were $3.16 per pound for copper (compared with $3.17 per pound for second-quarter 2013), $1,296 per ounce for gold (compared with $1,322 per ounce for second-quarter 2013) and $95.50 per barrel for oil (net of $4.96 per barrel associated with payments on derivative contracts).
- Second-quarter 2014 sales from oil and gas operations of 16.0 MMBOE, including 11.7 mln barrels (MMBbls) of crude oil, 20.3 bln cubic feet (Bcf) of natural gas and 1.0 MMBbls of natural gas liquids (NGLs), were higher than the April 2014 estimate of 15.2 MMBOE primarily reflecting higher production volumes from Eagle Ford and the Deepwater GOM.
- Second-quarter 2014 volumes included 4.0 MMBOE of sales from the Eagle Ford field through June 19, 2014.
- Cash production costs for oil and gas operations of $19.57 per BOE in second-quarter 2014 were higher than cash production costs of $16.58 per BOE in June 2013 primarily because of higher operating costs in California.
- Based on current sales volume and cost estimates for the second half of 2014, cash production costs are expected to approximate $22 per BOE for the second half of 2014 and $20 per BOE for the year 2014.
8:09 am Gapping down (:SCANX) : Gapping down
In reaction to disappointing earnings/guidance: XOOM -13%, XLNX -11.4%, UIS -7.3%, IRBT -6.5%, JNPR -6.3%, WHR -6.1%, EXP -5%, STM -4%, EA -3.7%, GSK -2.6%, LLTC -2.5%, ABB -1.7%, SYT -1.2%, OC -1.2%, TSS -0.7%, HERO -0.5%.
Other news: LJPC -7.1% (announces proposed underwritten offering of common stock), FPI -3.9% (announces commencement of public offering of common stock), ALTR -3.2% (following XLNX results), PT -3.2% (still checking), NYLD -1.5% (launches public offering of 10.5 mln shares of its Class A common stock), HLF -1.3% (ongoing Ackmann related volatility -- was up nearly 14 pts yesterday), EVRY -1.3% (provided update on credit agreement: entered into amendment to extend the co's forbearance agreement through July 29, 2014), HLF -1.3% (negative mention on Mad Money), MCD -0.9% (Five people were detained regarding China food probe, according to reports).
Analyst comments: KING -2.2% (downgraded at B of A/Merrill ), SHO -1.7% (downgraded to Neutral at Robert W. Baird), EAT -1.1% (downgraded to Sector Perform at RBC Capital Mkts), DD -1.1% (downgraded to Neutral from Overweight at JP Morgan and downgraded to Neutral from Outperform at Robert W. Baird), DRH -1.1% (downgraded to Neutral at Robert W. Baird), MCD -0.9% (downgraded to Neutral from Positive at Susquehanna).
8:09 am Amphenol beats by $0.04, beats on revs; guides Q3/FY EPS and revs above consensus; raises quarterly dividend to $0.25 from $0.20 (APH) : Reports Q2 (Jun) earnings of $1.09 per share, $0.04 better than the Capital IQ Consensus Estimate of $1.05; revenues rose 15.7% year/year to $1.31 bln vs the $1.28 bln consensus.
- Co issues upside guidance for Q3, sees EPS of $1.12-1.15 vs. $1.11 Capital IQ Consensus Estimate; sees Q3 revs of $1.320-1.350 bln vs. $1.31 bln Capital IQ Consensus Estimate.
- Co issues upside guidance for FY14, sees EPS of $4.35-4.41 vs. $4.32 Capital IQ Consensus Estimate; sees FY14 revs of $5.210-5.270 bln vs. $5.2 bln Capital IQ Consensus Estimate.
8:06 am Fibrocell Science takes active role to support Dystrophic Epidermolysis Bullosa patient advocacy group (FCSC) : Co announced that it will present at the 2014 Patient Care Conference of the Dystrophic Epidermolysis Bullosa Research Association of America as part of the company's commitment to engage and support advocacy groups for patients with rare diseases.
8:05 am Gapping up (:SCANX) : Gapping up
In reaction to strong earnings/guidance: JAKK +9.1%, VASC +7.1%, BIIB +6.7%, BABY +5.7%, MANH +5.4%, BEAV +4%, RHI +3.9%, ZIXI +3.7%, BRCM +3.5%, GD +2.9%, RES +2.7%, UCFC +2.5%, VMW +2.3%, MSFT +2.3%, TMO +2.3%, PEP +2.3%, DOW +2%, DAL +2%, BA +1.7%, FTI +1.2%, HA +1.1%, (also to add new Airbus (EADSY) A330-800neo to fleet; airline's Order for A350XWB-800s cancelled ), AWRE +1%, EVR +0.9%, AAPL +0.7%, EMC +0.6%, .
M&A news: TLM +11.5% (Repsol is considering making a bid for the company, according to reports).
Select battery related names showing strength again: FCEL +4%,PLUG +3.3% (co to host shareholder day today).
Other news: PBYI +245.7% (announces amendment to Neratinib licensing agreement with Pfizer; announces positive top line results from Phase III PB272 trial in Adjuvant Breast Cancer (ExteNET Trial); Neratinib achieves statistically significant improvement in disease free survival ),DARA +12.1% (following PBYI news),EGRX +7.1% (announces FDA approved Ryanodex for the Treatment of Malignant Hyperthermia; Orphan Drug Designation may Provide Eagle Seven Years Market Exclusivity),BLDP +4.6% (to supply New Flyer Industries with next generation Power Module for U.S. Fuel Cell Bus),UPIP +2.4% (co has sued Microsoft for breach of contract and declaratory judgment),ASX +2.4% (received Apple (AAPL) iWatch supplier orders, according to reports),DB +2.2% (late move lower on WSJ report suggesting the co may suffer from reporting problems, regulators say),DB +2.2% (rebounding after yesterday's intraday selloff),GPRO +2.2% (on going volatility),P +2.1% (Google previously attempted to buy Spotify, according to WSJ report),CO +1.8% (Co and and Cordlife Group announced that the two companies have joined forces in assisting patients across asia),SAP +1.2% (still checking)
Analyst comments: CODE +1.6% (upgraded to Buy from Hold at Jefferies),ACT +1.6% (initiated with a Buy at Deutsche Bank),MNK +0.9% (initiated with a Buy at Deutsche Bank),PRGO +0.5% (initiated with a Buy at Deutsche Bank)
8:05 am Yingli Green Energy to supply 32 mws of pv modules to a large scale project in Japan (YGE) :
- Co announced that its wholly-owned subsidiary, Yingli Green Energy Japan has signed an agreement to supply 32 MWs of multicrystalline PV modules to a large-scale project located in Okayama, Japan.
- According to the agreement, the Company will deliver ~108,000 YGE 72 Cell Series modules for the project from January 2015 to December 2015. The project is financed by GE Energy Financial Services and developed by Pacifico Energy K.K., a utility-scale solar project developer based in Tokyo.
- This project is expected to generate 37,000,000 KwH of solar power annually.
8:05 am First Commonwealth misses by $0.01 (FCF) : Reports Q2 (Jun) earnings of $0.13 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.14; net interest income plus non interest income rose 2.5% year/year to $63.19 mln vs the $60.85 mln consensus.
- loan growth of $82.0 mln, or 7.7% on an annualized basis
- A $9.9 mln decrease in nonperforming loans, representing a 17.6% decline from the first quarter of 2014 and a decrease of $26.8 mln, or 36.7%, over the last 12 months
- The provision for credit losses totaled $3.3 mln and $6.5 mln for the three and six-month periods ending June 30, 2014, as compared to $10.8 mln and $15.3 mln in the prior-year period.
8:05 am CEL-SCI Corp has been cleared to begin patient enrollment (CVM) : Co announced that Turkey's Ministry of Health had cleared the company to begin patient enrollment in CEL-SCI's global pivotal Phase III Head and Neck Cancer clinical trial of its investigational cancer immunotherapy treatment Multikine.
- Similar clearances to conduct the Phase III study in the UK and Austria were announced in previous weeks and though it has becoming increasingly clear that CEL-SCI's expansion of the trial is finally going as planned (with the goal of having 880 patients enrolled through 100 clinical centers in 20 countries by the end of 2015), the valuation and share prices have yet to see a real impact.
- Even with last week's news that CEL-SCI had just been awarded a Small Business Innovation Research (:SBIR) grant in the amount of $225K to fund the further development of CEL-SCI's LEAPS technology as a potential treatment for rheumatoid arthritis (an autoimmune disease of the joints whose drug market will generate revenues of $38.5 bln by 2017), company shares continue to be an example of undervaluation and market irrationality at its best.
8:04 am IMRIS receives CE mark for integrating latest generation MR scanners within VISIUS Surgical Theatre in European market (IMRS) :
- Co announced that they have obtained regulatory CE mark for integrating the next generation MRI core technology into the VISIUS Surgical Theatre allowing for sales and marketing in the European Union.
- The Company received United States Food and Drug Administration approval for these advancements in February 2014.
8:03 am Norfolk Southern beats by $0.05, reports revs in-line (NSC) : Reports Q2 (Jun) earnings of $1.79 per share, $0.05 better than the Capital IQ Consensus Estimate of $1.74; revenues rose 8.6% year/year to $3.04 bln vs the $3.04 bln consensus, driven by an 8% increase in volume.
- General merchandise revenues increased 8% to a record $1.7 billion compared with the second quarter of 2013. Shipments of metals and construction, chemicals, and agricultural products fueled a 7% increase in traffic volume.
- Coal revenues increased 7% to $672 million in the second quarter compared with the same period of 2013, with volume up 3%, the result of increased demand for utility coal from stockpile replenishment in response to a severe winter and higher natural gas prices, which offset lower export volume.
- Intermodal revenues increased 11% to a record $650 million compared with the second-quarter 2013. Volume increased 11%, the result of continued domestic growth coupled with new international business.
- The railway operating ratio, or operating expenses as a%age of revenue, improved 5% to 66.5%.
- By commodity group
- Intermodal up 11%
- Metals and Construction up 17%
- Coal up 7%
- Chemicals up 10%
- Agriculture up 5%
- Automotive up 3%
- Paper up 2%
8:03 am Blackstone to acquire majority stake in Service King Collision Repair Centers; Carlyle Group (CG) together with its co-investors and the mgmt and employees of Service King will retain a significant minority stake in the co (BX) : Service King Collision Repair Centers, announced a partnership with private equity funds controlled by Blackstone to recapitalize one of the largest independent U.S. chains of automobile body repair centers. The Carlyle Group (CG) together with its co-investors and the management and employees of Service King will retain a significant minority stake in the Company. Terms of the transaction, which is expected to close during the third quarter, were not disclosed.
8:03 am LiqTech International announces pricing of public offering of 6,956,522 shares Of common stock at price to the public of $1.50/share (LIQT) : Co announced that it has priced a registered firm commitment underwritten public offering of 6,956,522 shares of its common stock at a price to the public of $1.50.
- The total gross proceeds of the offering are expected to be approximately $10.4 million.
- The Company intends to use the net proceeds of the offering to fund a portion of the purchase price for its previously announced acquisition of the operations of Provital Solutions A/S
8:02 am Freeport-McMoRan prelim $0.58, excluding $0.12 in charges, vs $0.52 Capital IQ Consensus Estimate; revs $5.52 bln vs $5.31 bln Capital IQ Consensus Estimate (FCX) :
8:02 am O2Micro misses by $0.04, misses on revs (OIIM) : Reports Q2 (Jun) loss of $0.12 per share, $0.04 worse than the Capital IQ Consensus Estimate of ($0.08); revenues fell 7.0% year/year to $17.4 mln vs the $17.63 mln consensus.
8:02 am Hudson City Banc beats by $0.01 (HCBK) :
- Reports Q2 (Jun) earnings of $0.08 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.07.
- Non-performing loans decreased $41.0 mln to $1.01 bln at June 30, 2014 as compared to $1.05 bln at December 31, 2013. Early stage loan delinquencies decreased $62.0 mln to $411.4 mln at June 30, 2014 from $473.4 mln at December 31, 2013.
- There was no provision for loan losses for the second quarter of 2014 and the linked first quarter of 2014 as compared to $12.5 mln for the second quarter of 2013 reflecting improving home prices and economic conditions and decreases in total delinquent loans and total loans.
8:02 am Dyax announces publication of scientific data for DX-2930 in peer-reviewed journals; first paper describes the positive results from first-in-human clinical study of DX-2930 which met all of its objectives of assessing safety, tolerability and pharmacokinetics (DYAX) : Co announced the online publication of scientific data for DX-2930, an investigational fully human monoclonal antibody inhibitor of plasma kallikrein, in two peer-reviewed journals.
- Dyax is developing DX-2930 as a subcutaneous injection for prevention of hereditary angioedema attacks.
8:01 am ForceField Energy signs letter of intent to acquire Esco Energy Services Company; expected to be accretive to ForceField's earnings in 2014 (stock halted) (FNRG) :
- Co announced the signing of a letter of intent to acquire ESCO Energy Services Company.
- ESCO has delivered on retrofit projects that have resulted in over 300 million square feet of lighting upgrades since inception.
- For the 12 months ended June 30, 2014, ESCO generated estimated revenue in excess of $10.0 million.
- Consideration for the acquisition of ESCO will include a combination of cash, stock and a seller's note. In addition, the acquisition will include additional performance-based consideration payable only upon ESCO achieving mutually agreed EBITDA milestones over the two to three year period following the closing.
- The closing of the acquisition, which is subject to customary closing conditions as well as ForceField obtaining financing, is anticipated to occur on or before October 15, 2014 and is expected to be accretive to ForceField's earnings in 2014.
8:00 am MiMedx Group files its initial IND application with the FDA (MDXG) : Co announced today it has filed its initial Investigational New Drug application with the Food and Drug Administration.
- The IND submission, which was filed yesterday, July 22, 2014, is the company's initial submission for certain indications of its micronized allografts towards targeted Biologics License Applications.
7:58 am Ryder System beats by $0.05, reports revs in-line; raises FY14 EPS in-line (R) : Reports Q2 (Jun) earnings of $1.44 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $1.39; revenues rose 5.0% year/year to $1.68 bln vs the $1.68 bln consensus.
- Co issues in-line guidance for FY14, raises EPS to $5.50-5.60 from $5.40-5.55 vs. $5.51 Capital IQ Consensus Estimate.
- "Earnings growth was driven by improved used vehicle sales, commercial rental, and full service lease results. We exceeded our forecast mainly due to higher used vehicle pricing and rental performance, partially offset by higher-than-expected startup costs on an international supply chain account. We also delivered record operating revenue that was up 6% for the quarter. Revenue continued to benefit from growth in commercial rental, full service lease and our supply chain solutions business. In Fleet Management Solutions, we delivered strong organic revenue growth of 6%, with segment earnings up 28% despite incurring maintenance costs that were deferred from the first quarter due to weather. Earnings improvement reflects stronger used vehicle sales as well as leverage on revenue growth. Our full service lease fleet grew by 3,500 vehicles from a year ago."
7:57 am UNITIL Corporation beats by $0.09 (UTL) : Reports Q2 (Jun) earnings of $0.08 per share, $0.09 better than the Capital IQ Consensus Estimate of ($0.01). The Company's earnings for 2014 were driven by increases in natural gas and electric sales and margins.
7:56 am S&P futures vs fair value: +0.70. Nasdaq futures vs fair value: +10.50. (:WRAPX) : U.S. equity futures hover near their pre-market highs amid upbeat action overseas. The S&P 500 futures trade less than a point above fair value.
Reviewing overnight developments:
- Asian markets ended mixed. Japan's Nikkei -0.1%, China's Shanghai Composite +0.1%, and Hong Kong's Hang Seng +0.8%
- In economic data:
- Australia's CPI rose 0.5% quarter-over-quarter (expected 0.6%, previous 0.6%), while the year-over-year reading increased 3.0% (consensus 3.1%, prior 2.9%)
- Singapore's CPI slowed to 1.8% year-over-year from 2.7% (expected 2.4%)
- In news:
- Bank of Japan Deputy Governor Hiroshi Nakaso said the central bank's easing is working as intended and that the domestic economy continues to grow above potential
- In economic data:
- Major European indices trade higher across the board. Great Britain's FTSE +0.2%, France's CAC +0.4%, and Germany's DAX +0.5%. Elsewhere, Italy's MIB +0.2% and Spain's IBEX +0.2%
- Economic data was limited:
- French Business Survey held steady at 97 (expected 98)
- Italy's non-EU trade surplus narrowed to EUR2.15 billion from EUR2.45 billion
- In news:
- Germany's DAX leads the region amid strength in the shares of Daimler after the company reported solid quarterly results. Daimler trades higher by 1.4%.
- Economic data was limited:
- Apple (AAPL 95.60, +0.88): +0.9% after beating earnings estimates on below-consensus revenue. The tech company guided Q4 revenue below its Capital IQ consensus estimate.
- Biogen Idec (BIIB 324.06, +20.39): +6.7% after surpassing estimates and guiding higher.
- Broadcom (BRCM 40.10, +1.35): +3.5% following its earnings beat.
- Dow Chemical (DOW 53.36, +1.06): +2.0% after beating the Capital IQ consensus estimate by two cents.
- Electronic Arts (EA 37.01, -1.41): -3.7% despite beating expectations.
- Intuitive Surgical (ISRG 443.90, +51.74): +13.2% after beating revenue estimates.
- Juniper Networks (JNPR 23.34, -1.48): -6.0% beat bottom-line estimates, but guided Q3 earnings and revenue below consensus.
- Microsoft (MSFT 45.72, +0.89): +2.0% despite missing bottom-line expectations on above-consensus revenue.
- PepsiCo (PEP 91.09, +1.92): +2.2% after beating bottom-line estimates.
- VMware (VMW 98.25, +2.22): +2.3% after beating earnings expectations.
7:55 am Landstar System beats by $0.02, beats on revs (LSTR) : Reports Q2 (Jun) earnings of $0.80 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.78; revenues rose 20.8% year/year to $814.4 mln vs the $783.61 mln consensus.
- "At this point, I believe the current operating environment will remain very much intact throughout the balance of 2014. The increase in underlying demand as well as industry-wide truck productivity issues should continue to contribute to the very healthy pricing environment for spot market transactions."
- "Although the 2014 third quarter is only several weeks old, the strong trends have continued. Based on the continuation of these positive trends through the 2014 third quarter and given that the revenue generated in the Co's third quarter has historically been very similar to revenue generated in the Co's second quarter, I would expect 2014 third quarter revenue, gross profit, operating income and diluted earnings per share to be similar with those experienced in the 2014 second quarter (EPS of $0.80 vs $0.76 consensus, $814 mln in revenue vs $752.5 mln consensus).
7:47 am Asian Markets Close: Nikkei -0.1%M, Hang Seng +0.8%, Shanghai +0.1% (:SUMRX) :
- Markets gained across most of Asia.
- Australia's CPI printed an in-line 0.5% MoM, which equates to a 3.0% YoY advance.
- Taiwan's industrial production surged 8.6% YoY (7.2% YoY expected).
- Japan's Nikkei (-0.1%) slipped amid a lackluster trade. Exporters ended mixed with Honda Motor off 0.9% and Sony up 1.0%.
- Hong Kong's Hang Seng (+0.8%) rallied to its best levels since the beginning of December. Property developers saw strong gains as China Overseas Land & Investment and China Resources Land added 4.4% and 7.5%, respectively, on expectations of looser lending standards later in the year.
- China's Shanghai Composite (+0.1%) settled at a five-week high. Brokerage names were boosted by the next wave of IPOs coming to market with CITIC Securities rallying 1.0% and Haitong Securities climbing 2.3%.
- India's Sensex (+0.5%) posted a record-high close. IT names continued to provide support with Infosys and Tata Consultancy Services up 3.5% and 2.2%, respectively. Rival Wipro added 1.9% ahead of tomorrow's earnings.
- Australia's ASX (+0.6%) finished at its best level in over six years. Mining giant BHP Billiton gained 1.2% after issuing upbeat guidance.
- Indonesia's Jakarta Composite (+0.2%) eked out a gain as Joko Widodo was officially declared the winner of the presidential election.
- Regional Decliners: Vietnam -0.1%...South Korea UNCH
- Regional Advancers: Malaysia UNCH...Philippines +0.3%...Taiwan +0.6%...Singapore +0.7%...Thailand +1.4%
- Fx: USDCNY eased to 6.1985, posting its lowest close in three and a half months...USDINR fell to 60.03...USDJPY -5 pips @ 101.40...AUDUSD +55 pips @ .9450
7:39 am Delta Air Lines beats by $0.01, reports revs in-line (DAL) : Reports Q2 (Jun) earnings of $1.04 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $1.03; revenues rose 9.4% year/year to $10.62 bln vs the $10.65 bln consensus.
- Passenger revenue increased 9 percent, or $772 mln, compared to the prior year period. Passenger unit revenue (:PRASM) increased 5.7 percent year-over-year with a 3.8 percent improvement in yield. Seat-related products and other merchandising initiatives increased revenues by $45 mln versus the prior year period. Cargo revenue decreased 1 percent, or $2 mln, as lower freight yields were partially offset by higher volumes.
- Other revenue increased 15 percent, or $144 mln, driven by higher joint venture and SkyMiles revenues. Consolidated unit cost excluding fuel expense, profit sharing and special items, was flat in the June 2014 quarter on a year-over-year basis as the benefits of Delta's domestic refleeting and other cost initiatives offset the company's investments in its employees, products and operations. GAAP consolidated CASM decreased 0.4 percent.
- Co sees Q3 operating margin at 15-17%; sees system capacity +2-3%
7:36 am Silgan Holdings beats by $0.06, misses on revs; guides Q3 EPS below consensus; reaffirms FY14 EPS guidance (SLGN) : Reports Q2 (Jun) earnings of $0.73 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $0.67; revenues rose 4.2% year/year to $917.3 mln vs the $934.0 mln consensus. Co issues downside guidance for Q3, sees EPS of $1.25-1.35, excluding non-recurring items, vs. $1.37 Capital IQ Consensus Estimate. Co reaffirms guidance for FY14, sees EPS of $3.10-3.30, excluding non-recurring items, vs. $3.15 Capital IQ Consensus Estimate.
7:35 am Federal-Mogul misses by $0.02, reports revs in-line (FDML) : Reports Q2 (Jun) earnings of $0.33 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.35; revenues rose 7.3% year/year to $1.87 bln vs the $1.87 bln consensus.
- Operational EBITDA of $180 mln or 9.6 percent of sales, up from $162 mln or 9.3 percent of sales in Q2 2013
- Operating income of $100 mln, up $10 mln from Q2 2013
- Adjusted net income from continuing operations of $50 mln
- Free Cash Flow of $67 mln in Q2 2014
7:35 am Omnicare beats by $0.01, beats on revs; reaffirms FY14 EPS guidance, revs guidance (OCR) : Reports Q2 (Jun) earnings of $0.91 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.90; revenues rose 7.2% year/year to $1.61 bln vs the $1.59 bln consensus.
- Co reaffirms guidance for FY14, sees EPS of $3.64-3.72 vs. $3.69 Capital IQ Consensus Estimate; sees FY14 revs of $6.3-6.4 bln vs. $6.37 bln Capital IQ Consensus Estimate.
- Raises Cash flows from operations expectation to $500M to $550 mln from $475M to $550M.
7:34 am Bacterin International announces 1:10 reverse split of common stock effective at the close on July 25 and in effect for trading purposes on July 28 (BONE) :
7:32 am Owens Corning misses by $0.07, beats on revs; reaffirms FY14 EBIT (lowered in June) (OC) : Reports Q2 (Jun) adj. earnings of $0.38 per share, $0.07 worse than the Capital IQ Consensus Estimate of $0.45; revenues rose 0.6% year/year to $1.36 bln vs the $1.31 bln consensus; co warned on June 20.
For the full year 2014, the company's adjusted EBIT is expected to be greater than the 2013 result of $416 mln (reaffirmed after lowering guidance on June 20). The Insulation business should continue to benefit from growth in U.S. residential new construction, improved pricing and operating leverage. The Composites business continues to benefit from stable global economic growth, improved operating performance and pricing. Pricing is expected to be the primary driver of EBIT growth in 2014. Composites pricing is now expected to be at the top end of the previous guidance range of $20 million to $30 million. The roofing market was down through the first two quarters of this year. The company now expects that the roofing market will be flat to slightly down for full-year 2014 compared to prior year. Volumes in the Roofing business are expected to more closely track the market in the second half than they did in the first half of 2014.
"Insulation and Composites delivered improvement in line with expectations through the first half of the year. Continued momentum in these two businesses is expected to more than offset the weaker financial performance in the Roofing business and generate earnings growth for the full year 2014."; revenues rose 0.6% year/year to $1.36 bln vs the $1.31 bln consensus.
7:32 am BofI Holding announced earlier the completion of its first $50 mln at-the-market common stock offering and opening of a second $50 mln offering (BOFI) : Co announced the completion of its $50 million At-the-market common stock offering ("ATM") commenced in March 2013 and the initiation of a second $50 million ATM through the filing of a prospectus supplement with the SEC under BOFI's existing effective shelf registration statement. The equity distribution agreement for the first ATM was concluded and a new equity distribution agreement was executed today for the second ATM.
- "We believe that a second $50 million ATM can provide the same flexibility to secure funding as needed to support our future growth."
- Under the new equity distribution agreement BOFI may, from time to time, at its discretion offer and sell shares of its common stock having an aggregate value of up to $50 million through Keefe, Bruyette & Woods, Inc., Raymond James & Associates, Inc. and Sterne Agee & Leach, Inc.
- Co intends to use the net proceeds from this offering, if any, for general corporate purposes, which may include repayments or repurchase of debt.
7:32 am Natus Medical beats by $0.02, beats on revs; guides Q3 EPS in-line, revs in-line; guides FY14 EPS in-line, revs in-line (BABY) : Reports Q2 (Jun) earnings of $0.28 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.26; revenues rose 4.9% year/year to $86.3 mln vs the $84.74 mln consensus. Co issues in-line guidance for Q3, sees EPS of $0.28-0.32, excluding non-recurring items, vs. $0.31 Capital IQ Consensus Estimate; sees Q3 revs of $86-89 mln vs. $87.10 mln Capital IQ Consensus Estimate. Co issues in-line guidance for FY14, sees EPS of $1.20-1.23, excluding non-recurring items, vs. $1.20 Capital IQ Consensus Estimate; sees FY14 revs of $347.5-352.5 mln vs. $349.61 mln Capital IQ Consensus Estimate.
7:31 am Hyperdynamics announces continued listing plan accepted by NYSE (HDY) : Co announced receipt of notice from the NYSE of the NYSE's acceptance of the Company's plan for continued listing.
- As a result, the Company's stock will continue to be listed on the NYSE, subject to quarterly reviews by the NYSE's Listing and Compliance Committee of the Company's progress toward its plan to restore compliance with continued listing standards.
- On April 25, 2014, the Company announced that it was below continued listing criteria because its average global market capitalization over a consecutive 30 trading-day period and total stockholders' equity were each less than $50 mln.
7:29 am Micron intends to offer $750 mln aggregate principal amount of senior notes due 2025 (MU) : Co announced that it intends to offer, subject to market and other considerations, $750 million aggregate principal amount of senior notes due 2025.
- Micron intends to use a portion of the net proceeds from the offering to extinguish its obligations with respect to its 1.875% convertible senior notes due 2031, which may include payments in settlement of conversions of or to repurchase or redeem such notes.
- The co expects to use the balance of the net proceeds for retirement of other convertible notes and debt and other general corporate purposes.
- Earlier today, Micron gave notice to holders of the 2031B Notes that their notes will be redeemed on August 22, 2014, except to the extent such notes are converted or repurchased by Micron prior to such date, and its current intent is to settle any such conversions entirely in cash with a portion of the proceeds from the offering.
7:28 am Rollins beats by $0.01, reports revs in-line; Company posts 33rd consecutive quarter of improved earnings (ROL) : Reports Q2 (Jun) earnings of $0.28 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.27; revenues rose 5.2% year/year to $369 mln vs the $372.55 mln consensus.
7:25 am Aussie Jumps on In-Line CPI Print: 10-yr: unch..2.462%..USD/JPY: 101.41..EUR/USD: 1.3470 (:SUMRX) :
- The Dollar Index presses session lows as trade fights to hold the 80.70 level.
- The light selling has the Index slipping off its best closing level in five and a half months, and has trade on track for just its third loss in ten sessions.
- EURUSD is +5 pips @ 1.3470 as action looks to rebound off eight and a half-month lows. Early action has been limited to a tight 20 pip range as news and data from the region are absent.
- GBPUSD is -20 pips @ 1.7045 as trade presses lower for a sixth day. The early selling comes despite the in-line BBA Mortgage Approvals (43.3K actual) and better than expected CBI Realized Sales (21 actual v. 18 expected). Meanwhile, today's Bank of England release showed both the asset purchase facility and Official Bank Rate votes were unanimous at keeping policy unchanged. Support in the 1.7000 region will be watched into today's speech by Bank of England Governor Mark Carney.
- USDCHF is -5 pips @ .9020 as action lingers near five and a half-month highs. Notable were comments from Swiss National Bank Chairman Thomas Jordan suggesting the EURCHF1.20 floor will remain in place for the 'foreseeable future.'
- USDJPY is -5 pips @ 101.40 as trade recovers its early losses. The pair came close to key support in the 101.20/101.25 area, but buyers once again stepped up in defense.
- AUDUSD is +55 pips @ .9450 following this morning's in-line CPI (0.5% MoM) figure, which equates to a 3.0% YoY advance. The post-data bid has the hard currency on track to close at a three-week high. USDCNY eased to 6.1985, posting its lowest close in three and a half months. Click here to see a daily AUDUSD chart.
- USDCAD is -10 pips @ 1.0725 as trade presses support in the area ahead of this morning's Canadian retail sales data.
7:23 am RPC beats by $0.02, beats on revs (RES) : Reports Q2 (Jun) earnings of $0.29 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.27; revenues rose 27.4% year/year to $582.8 mln vs the $552.7 mln consensus.
"Although there was no discernible increase in pricing for our services, our activity levels were high throughout the quarter. The average U.S. domestic rig count during the second quarter was 1,852, a 5.2 percent increase compared to the same period in 2013, and a 4.1 percent increase compared to the first quarter of 2014. The average price of natural gas was $4.55 per Mcf, a 14.6 percent increase compared to the prior year, and a 6.4 percent decrease compared to the first quarter of 2014. The average price of oil during the quarter was $103.24 per barrel, a 9.8 percent increase compared to the prior year and a 4.6 percent increase compared to the first quarter of 2014. The unconventional rig count, an important indicator of the demand for RPC's services, increased by 11.6 percent compared to the prior year. During the second quarter of 2014 unconventional drilling represented 78.7 percent of U.S. domestic drilling activity. Our revenues increased by a greater rate than these industry indicators because of our presence in strong domestic oilfield markets such as the Permian Basin and the increasing service intensity of completion work in most of our markets".
7:19 am Elbit Medical Imaging announces closing of settlement agreement with Bank Leumi (EMITF) : Co announced, following its announcement dated July 1, 2014, that following the Court's approval the transactions contemplated by the settlement between the co and Bank Leumi Le Israel B.M. have been consummated.
- Under the settlement, Bank Leumi received ownership of all marketable securities held in the co's accounts at Bank Leumi having a fair value of ~ NIS 8.7 mln.
- The co's net debt to Bank Leumi in the amount of ~ NIS 38 mln was cancelled in exchange for 7,404,119 ordinary shares, NIS 6,507,666 aggregate principal amount of Series G notes and NIS 3,166,678 aggregate principal amount of Series H notes of the co.
- The balance of 1,686,003 ordinary shares, NIS 1,481,870 aggregate principal amount of Series G notes and NIS 721,089 aggregate principal amount of Series H notes of the co retained in trust will be cancelled. As described in the Previous Announcement, the Settlement also includes a mutual waiver of claims by the co and Bank Leumi.
7:19 am On The Wires (:WIRES) :
- Trimble (TRMB) announced that a SITECH Technology Dealer has been established in Utah as well as in several adjacent counties in Wyoming and counties in the Grand Canyon National Park and Lake Mead recreation area of northern Arizona. Co also introduced the Trimble DPS900 Piling System, a dedicated, land-based 3D machine control system for a variety of piling machine makes and models.
- Teleflex (TFX) announced a new agreement with Amerinet for a comprehensive range of surgical instruments. The agreement is effective June 1, 2014 through March 31, 2017.
- Garmin International, a unit of Garmin (GRMN), announced a new 7-inch G3X Touch display option for experimental amateur-built and light sport aircraft.
- Comverse (CNSI) announced the inauguration of its new Comverse Center of Excellence in Gurgaon, India.
- Thomson Reuters (TRI) and BGC Partners (BGCP) announced a strategic agreement to expand customer access to OTC pricing data. BGC's OTC pricing data is now available to customers of Thomson Reuters Eikon, its flagship financial markets desktop, Thomson Reuters Elektron Real Time, Tick History and DataScope Select, as well as BGC's trading system.
- Allot Communications (ALLT) received an order from a Tier-1 mobile operator in EMEA for the Allot Policy Control and Charging solution.
7:13 am New York Community beats by $0.03 (NYCB) : Reports Q2 (Jun) earnings of $0.29 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.26; Revs fell 2.4% year/year to $283.3 mln.
7:12 am PepsiCo beats by $0.09, reports revs in-line; raises FY14 core EPS growth ex-FX to 8% from 7%, reaffirms FY14 revs guidance (PEP) : Reports Q2 (Jun) earnings of $1.32 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus Estimate of $1.23; revenues rose 0.5% year/year to $16.89 bln vs the $16.8 bln consensus.
- Organic revenue grew 3.6% and reported net revenue grew 0.5% versus the prior-year quarter. Foreign exchange translation had a 3-percentage-point unfavorable impact on reported net revenue and structural change related to the 2013 refranchising of the co's bottling operations in Vietnam had a slight negative impact in the quarter.
- Organic revenue grew 5% for global snacks and 2% for global beverages in the quarter. On a reported basis, net revenue grew 2% for global snacks, reflecting unfavorable foreign exchange translation, and declined 1% for global beverages, reflecting unfavorable foreign exchange translation and the Vietnam refranchising.
- Developing and emerging market organic revenue grew 8% in the quarter. On a reported basis, developing and emerging market net revenue declined 1% in the quarter, reflecting the Vietnam refranchising and unfavorable foreign exchange translation.
- Core gross margin expanded 60 basis points in the quarter reflecting implementation of effective revenue management strategies and productivity initiatives. Core operating margin expanded 10 basis points in the quarter. Excluding the gain related to the Vietnam refranchising, net of incremental investments from the prior-year quarter results, core operating margin expanded 65 basis points in the quarter. Reported gross margin increased 95 basis points and reported operating margin increased 10 basis points in the quarter.
7:09 am Bell Aliant: BCE (BCE), which already controls Bell Aliant, is acquiring the interest of public minority shareholders in Bell Aliant for a total consideration of ~ $3.95 bln; public minority shareholders to receive cash and BCE common equity for a combined value of $31 per share (BLIAF) : Co announced that BCE will privatize Bell Aliant by acquiring the interest of its affiliate's public minority shareholders, while supporting Bell Aliant's ongoing growth and competitiveness with significant investments in Atlantic Canada infrastructure and employment.
- BCE expects annual run-rate FCF accretion after common dividends of ~$200 mln a year. With the elimination of Bell Aliant public company expenses and other duplicative costs, BCE expects to generate ~$100 mln in pre-tax annual synergies.
- Unanimously recommended to public minority shareholders by all the independent directors of Bell Aliant, the transaction will be completed by way of a formal tender offer through which common shareholders can elect to receive either (a) $31 in cash, (b) 0.6371 of a BCE common share, or (c) $7.75 in cash and 0.4778 of a BCE common share. Public minority shareholders electing alternative (a) or (b) will be subject to pro-ration such that the aggregate consideration will be paid 25% in cash and 75% in BCE common shares. The share consideration is based on BCE's 10-day volume weighted average price of $48.66.
7:06 am General Dynamics beats by $0.11, reports revs in-line (GD) : Reports Q2 (Jun) earnings of $1.88 per share, $0.11 better than the Capital IQ Consensus Estimate of $1.77; revenues fell 4.6% year/year to $7.47 bln vs the $7.53 bln consensus.
- Company-wide operating margin for Q2 were 12.7%, a 40 basis-point improvement YoY.
- "General Dynamics' strong Q2 performance reflects our continued focus on program execution and operational improvements...We have a solid building block for the future with an increased defense backlog and robust order activity across the portfolio of Gulfstream business jets."
7:06 am Hercules Offshore misses by $0.06, reports revs in-line (HERO) : Reports Q2 (Jun) loss of $0.04 per share, excluding non-recurring items, $0.06 worse than the Capital IQ Consensus Estimate of $0.02; revenues rose 14.8% year/year to $242.9 mln vs the $243.26 mln consensus.
- "Second quarter results reflect a general slowdown in domestic drilling activity, as well as idle time on certain international rigs. The slowdown in the U.S. Gulf of Mexico has largely been driven by significant property transfers and consolidation among our customer base, which has led to disruptions in their respective drilling programs. Our latest discussions with various domestic customers suggest activity levels will rebound late this year. In the meantime, we have taken proactive measures to reduce costs, including our recent decision to postpone the regulatory survey on one of our domestic rigs until visibility improves. Dayrates remain firm in the U.S. Gulf of Mexico, as stable crude oil prices support customer economics. Our International Offshore segment was impacted by downtime, due in part to the contract termination on the Hercules 267 in Angola. Lastly, International Liftboats experienced wide fluctuations in utilization, principally due to poor weather in West Africa. Customer capital spending reductions in Nigeria has also hindered activity."
7:06 am Simon Properties beats by $0.01, misses on revs; raises FY14 FFO guidance, below consensus (SPG) : Reports Q2 (Jun) funds from operations of $2.16 per share, $0.01 better than the Capital IQ Consensus Estimate of $2.15; revenues rose 8.9% year/year to $1.18 bln vs the $1.25 bln consensus.
- Co raises FY14 FFO guidance by 5 cents, which is downside guidance for FY14, sees FFO of $9.01-9.11 vs. $9.23 Capital IQ Consensus Estimate, up from $8.96-9.06.
7:05 am Mylan Labs wins motion for temporary restraining order against Apotex for authorized generic of Paxil CR (MYL) :
- Co announced that the U.S. District Court for the District of New Jersey granted its motion for a temporary restraining order against Apotex Inc. and Apotex Corporation in litigation relating to Paroxetine CR, the authorized generic of GlaxoSmithKline's (GSK) Paxil CR.
- The District Court ordered Apotex to immediately discontinue all sales and supply of Paroxetine CR. Mylan previously obtained an order enjoining GlaxoSmithKline from supplying Paroxetine CR to Apotex. In addition, the District Court ordered Apotex to immediately recall all product from its direct customers that was shipped since the injunction was entered on July 16, 2014.
7:04 am Northrop Grumman beats by $0.15, beats on revs; raises FY14 EPS guidance, reaffirms FY14 revs guidance (NOC) : Reports Q2 (Jun) earnings of $2.37 per share, $0.15 better than the Capital IQ Consensus Estimate of $2.22; revenues fell 4.1% year/year to $6.04 bln vs the $5.97 bln consensus.
- Co updates guidance for FY14, raises EPS guidance to $9.15-9.35 from $8.90-9.15, vs. $9.24 Capital IQ Consensus Estimate; sees FY14 revs of $23.5-23.8 bln vs. $23.67 bln Capital IQ Consensus Estimate.
- Total backlog as of June 30, 2014, was $35.6 billion. Second quarter 2014 new awards totaled $5.3 billion, and new awards for the first six months totaled $10.2 billion. After the close of the 2014 second quarter the U.S. Navy awarded the company a $3.6 billion fixed price, incentive fee multiyear contract to deliver 25 new E-2D Advanced Hawkeye aircraft. The E-2D award is not included in second quarter 2014 new awards or backlog.
7:04 am CONMED reports EPS in-line, misses on revs; guides FY14 EPS in-line, revs below consensus (CNMD) : Reports Q2 (Jun) earnings of $0.47 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of $0.47; revenues fell 2.5% year/year to $188.15 mln vs the $191.13 mln consensus. Co issues mixed guidance for FY14, sees EPS of $1.85-1.95, excluding non-recurring items, vs. $1.93 Capital IQ Consensus Estimate; sees FY14 revs of $735-745 mln vs. $767.12 mln Capital IQ Consensus Estimate.
7:03 am Microsemi acquires Cork, Ireland-based Mingoa; financial terms not disclosed (MSCC) : Co announced it has acquired Cork, Ireland-based Mingoa, a provider of semiconductor IP for hardware accelerated Ethernet OAM and embedded tests. The terms of the transaction were not disclosed.
7:03 am Shire plc enters strategic licensing and collaboration agreement with ArmaGen; obtain worldwide commercialization rights for AGT-182 in exchange for payments of approximately $225 million to ArmaGen (SHPG) : Co announced a worldwide licensing and collaboration agreement for AGT-182, an investigational enzyme replacement therapy (:ERT) for the potential treatment of both the central nervous system (CNS) and somatic manifestations in patients with Hunter syndrome (MPS II). Under the terms of the agreement, Shire will obtain worldwide commercialization rights for AGT-182 in exchange for payments of approximately $225 million to ArmaGen, including an initial upfront payment of $15 million in cash and equity, an additional equity investment, R&D funding, development milestones and sales milestones, in addition to royalty payments. As part of the agreement, ArmaGen will be responsible for conducting and completing the Phase I/II study which it expects to initiate before the end of 2014, after which point Shire will be responsible for further clinical development, including Phase III trials, and commercialization.
7:02 am PowerSecure adds $140 mln in new distributed generation business (POWR) : Co announced it has been awarded ~$140 mln of new distributed generation business. The $140 mln in new DG business includes $120 mln of new utility-scale solar projects, including a major award from one of the largest investor-owned utilities in the U.S. to provide two large-scale solar installations.
- The remaining $20 mln of DG awards include new turnkey sales for a variety of hospital, data center, industrial and retail customers, as well as several additional solar projects.
7:01 am Eagle Pharma announces FDA approved Ryanodex for the Treatment of Malignant Hyperthermia; Orphan Drug Designation may Provide Eagle Seven Years Market Exclusivity (EGRX) : Co announced that the FDA has approved Ryanodex (dantrolene sodium) for injectable suspension indicated for the treatment of malignant hyperthermia, along with the appropriate supportive measures. MH is an inherited and potentially fatal disorder triggered by certain anesthesia agents in genetically susceptible individuals.
- FDA had designated Ryanodex as an Orphan Drug in August 2013. Eagle has been informed by the FDA that it will learn over the next four to six weeks if it has been granted the seven year Orphan Drug market exclusivity.
- Eagle is the exclusive licensee of four U.S. patents for Ryanodex. Approval of Ryanodex represents two major milestones: in addition to adding to the Company's portfolio of approved compounds, Ryanodex represents the first product to be solely marketed by the Company.
7:01 am The Medicines Co misses by $0.14, reports revs in-line (MDCO) : Reports Q2 (Jun) earnings of $0.31 per share, excluding non-recurring items, $0.14 worse than the Capital IQ Consensus Estimate of $0.45; revenues rose 6.4% year/year to $183.8 mln vs the $184.07 mln consensus.
7:01 am Dow Chemical beats by $0.02, reports revs in-line (DOW) : Reports Q2 (Jun) earnings of $0.74 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.72; revenues rose 2.3% year/year to $14.92 bln vs the $14.9 bln consensus.
- EBITDA was $2.2 billion, up 5 percent on an adjusted basis versus the year-ago period. EBITDA rose in most operating segments, led by Performance Materials (up 36 percent), as a result of ongoing productivity actions, as well as improved pricing and demand. Performance Plastics and Electronic and Functional Materials also drove EBITDA gains, up 6 percent and 19 percent respectively.
- Agricultural Sciences achieved record second quarter sales of $1.9 billion, up 3 percent versus the year-ago period. On a year-to-date basis, sales were $4 billion, representing a first-half record for the segment.
- Coatings and Infrastructure Solutions reported sales of nearly $2 billion, up 3 percent versus the year-ago period, representing the fourth consecutive quarter of year-over-year sales growth. Gains were reported in Europe, Middle East and Africa, Asia Pacific and North America.
- Outlook: "Our operating priorities are delivering strong results despite ongoing slow growth and volatility in the global marketplace. We remain focused on these priorities as we continue to execute against our business-by-business plans -- maximizing value through a balanced mix of differentiated technology and integrated, advantaged value chains. "Strategically, our key high-return growth projects -- such as the launch of Enlist, the Sadara joint venture and our investments on the U.S. Gulf Coast -- all remain on schedule and on budget, with 2015 serving as a major start-up year for all three."
7:01 am CONMED announces leadership transition; Joseph Corasanti steps down as CEO; independent board member Curt Hartman appointed interim CEO; terminates strategic alternatives process; stock remains halted (CNMD) :
- Co announced that Joseph Corasanti is stepping down as Chief Executive Officer, President and a member of the board, effective immediately.
- The board has appointed Curt Hartman as Interim Chief Executive Officer.
- In addition, after nearly 44 years of service to CONMED, founder Eugene Corasanti has decided to retire from the Board and as an employee, effective immediately.
- The company also announced that Bill Abraham is retiring as Executive Vice President of Business Development, effective as of the conclusion of a transition period (which is expected to be no later than September 30, 2014).
- The board also announced today that it has appointed Charles Farkas, a Senior Partner at Bain & Company and former North American Head of Bain's Healthcare Practice, as a new independent director, effective immediately; Mr. Farkas' appointment is in connection with the Company's obligation under its agreement with Coppersmith Capital Management, to nominate a new independent director to the Board
- CONMED also announced today that its board has concluded a comprehensive review of strategic alternatives for the Company.
- Following this comprehensive process, the board determined that the various strategic alternatives available at this time do not adequately reflect the intrinsic value of the Company or its future growth prospects. As such, the board has determined to terminate the process and work with management to focus on further developing and executing CONMED's strategic plan to grow revenues and margins.
7:00 am EMC reports EPS in-line, revs in-line; guides FY14 EPS ~in-line, reaffirms FY14 revs guidance; adds $1 bln to buyback (EMC) : Reports Q2 (Jun) earnings of $0.43 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.43; revenues rose 4.7% year/year to $5.88 bln vs the $5.84 bln consensus.
Co issues guidance for FY14, sees EPS of $1.91 (from $1.90), excluding non-recurring items, vs. $1.90 Capital IQ Consensus; reaffirms FY14 revs of $24.575 bln vs. $24.57 bln Capital IQ Consensus.
- EMC generated $1.3 billion in operating cash flow and $930 million in free cash flow2 in the second quarter - up 2% and 10% year over year, respectively. EMC ended the quarter with $14.6 billion in cash and investments. The company repurchased ~$600 million worth of its common stock in the second quarter and returned ~$200 million to shareholders via a quarterly dividend.
- In addition, EMC's Board of Directors has approved an acceleration of EMC's share buyback plan for 2014 from $2 billion to $3 billion. Including the accelerated buyback and EMC's increased dividend (announced in the first quarter of 2014), EMC expects to return more than $7 billion to shareholders over the course of 2013 and 2014.
- EMC's consolidated second-quarter revenue from the United States was up 3% year over year at $3.1 billion, representing 52% of consolidated second-quarter revenue. Revenue from EMC's business operations outside of the United States increased 7% year over year to $2.8 billion representing 48% of consolidated second-quarter revenue. Within this, revenue from EMC's Europe, Middle East and Africa region grew 12% year over year and revenue from EMC's Latin America region grew 14% year over year. Revenue from the BRIC+13 markets grew 5% year over year.
6:56 am Biogen Idec blows out Q2 estimates; raises FY14 guidance well above consensus (BIIB) : Reports Q2 (Jun) earnings of $3.49 per share, $0.65 better than the Capital IQ Consensus of $2.84 (including $0.15 benrfit from the approval of an agreement with the Italian National Medicines Agency (:AIFA) relating to TYSABRI sales in Italy from February 2013 through March 31, 2014); revenues rose 40.5% year/year to $2.42 bln vs the $2.16 bln consensus.
- TECFIDERA revenues were $700 million, consisting of $585 million in U.S. sales and $115 million in sales outside the U.S.
- AVONEX revenues were $774 million in the second quarter of 2014. The total was composed of $498 million in U.S. sales and $276 million in sales outside the U.S.
- TYSABRI revenues were $533 million, consisting of $250 million in U.S. sales and $284 million in sales outside the U.S.
- TYSABRI sales outside the U.S. included $54 million of previously deferred revenue from February 2013 through March 31, 2014, which was recognized during the quarter following an agreement with AIFA. Beginning in the second quarter of 2014, sales of TYSABRI in Italy were recorded at the full reimbursed price. The Company continues to be in discussions with AIFA to resolve its dispute for the periods February 2009 through January 2013.
- Net revenues relating to RITUXAN and GAZYVA from our unconsolidated joint business arrangement were $303 million in the second quarter of 2014, compared to $289 million in the second quarter of 2013.
- ALPROLIXTM revenues were $10 million in the second quarter of 2014.
- Guidance raise -- owing primarily to the growth of TECFIDERA in the U.S. and the E.U., the strength of our other MS therapies, and clarity on the AIFA pricing matter.
6:49 am S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: +4.00. :
6:49 am European Markets : FTSE...6818.43...+23.90...+0.30%. DAX...9798.05...+63.70...+0.70%.
6:49 am Asian Markets : Nikkei...15328.56...-14.70...-0.10%. Hang Seng...23971.87...+189.80...+0.80%.
6:45 am Sucampo Pharma announces publication of NICE recommendation for AMITIZA (Lubiprostone) (SCMP) : Co announced that the United Kingdom's National Institute of Health and Care Excellence (NICE) has published the technology appraisal guidance recommending the use of AMITIZA (lubiprostone) in the treatment of chronic idiopathic constipation (CIC.TO) and associated symptoms in adults who have failed laxatives.
- The NICE guidance recommends AMITIZA as an option for treating CIC for adults in whom treatment with at least 2 laxatives from different classes, at the highest tolerated recommended doses for at least 6 months, has failed to provide adequate relief and for whom invasive treatment for constipation is being considered.
- NICE regulations require that clinical commissioning groups, National Health Service England and local authorities comply with NICE recommendations within three months of the date of publication. Specifically, the NICE guidance for AMITIZA states that "if a patient has chronic idiopathic constipation and the doctor responsible for their care thinks that lubiprostone is the right treatment, it should be available for use, in line with NICE's recommendations."
6:32 am Marketaxess beats by $0.02, reports revs in-line; increases buyback (MKTX) : Reports Q2 (Jun) earnings of $0.48 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.46; revenues rose 2.4% year/year to $65 mln vs the $64.46 mln consensus.
- The Company is updating its full year 2014 expense guidance and now expects total expenses for 2014 will be in the range of $144.0 million to $148.0 million, down from prior guidance of $150.0 million to $157.0 million.
- The Company is also updating its full year 2014 capital spending guidance and now expects capital expenditures will be in the range of $15.0 million to $17.0 million, down from prior guidance of $17.0 million to $20.0 million.
- The Company is reconfirming its full year 2014 tax rate guidance of 37.0% to 40.0%.
- Company announces increase in share repurchase authorization from $35.0 million to $100.0 million
6:32 am Potlatch reports EPS in-line, beats on revs (PCH) : Reports Q2 (Jun) earnings of $0.40 per share, in-line with the Capital IQ Consensus Estimate of $0.40; revenues rose 8.0% year/year to $143.9 mln vs the $138.64 mln consensus.
- "Increased activity in the housing market resulted in stronger takeaway for our lumber business in the quarter and we closed over 40 transactions in our Real Estate business as the effects of the harsh winter faded...We expect strong results in our Wood Products and Resource businesses in the second half of the year, particularly given that the third quarter is our seasonally highest harvest quarter. This quarter, our Real Estate segment also closed the second of two large sales that we planned this year. Our earnings are on track to increase for the third consecutive year."
6:29 am ReneSola sells 40 energy storage systems to Think Green Energy (SOL) : Co announced the delivery of 30 ReneSola Novaplus 2KW energy storage systems to a national distributor in Chelmsford for onward sale to Essex installation company Think Green Energy. An additional 10 units are on order for use by Think Green Energy customers in the southeast of England.
6:26 am Sony increases production capacity for stacked CMOS image sensors; total investment amount is expected to be ~35 bln yen (SNE) : Co announced that it plans to invest in Sony Semiconductor Corporation's Nagasaki Technology Center and Kumamoto Technology Center from the second half of the fiscal year ending March 31, 2015 through the first half of the fiscal year ending March 31, 2016, to increase its production capacity for stacked CMOS image sensors.
- The total investment amount is expected to be ~35 bln yen, comprising ~9 bln yen (Nagasaki TEC: ~3 bln, Kumamoto TEC: ~6 bln) to be carried out in FY14, and ~26 bln yen to be carried out in FY15.
- Of this, the amount to be invested in FY14 (~9 bln yen) was included in the forecast of capital expenditure for semiconductors in the current fiscal year (~65 bln yen) announced on May 14, 2014.
6:24 am On The Wires (:WIRES) :
- National Association for Public Health Statistics and Information Systems has selected Cognizant (CTSH) as a consulting and technology partner to transform its Electronic Verification of Vital Events system in order to make it easier for businesses and government entities to verify birth and death records, and prevent identity theft.
- CYREN (CYRN) announced that CYREN received the TRUSTe Cloud Data Privacy Certification as well as EU and Swiss Safe Harbor Certifications recognized by the U.S. Department of Commerce.
6:15 am W.R. Grace beats by $0.06, misses on revs; narrows EBIT outlook (GRA) : Reports Q2 (Jun) earnings of $1.22 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $1.16; revenues rose 4.4% year/year to $838 mln vs the $861.93 mln consensus.
- The year-over-year increase was due to higher sales volumes (+4.0 percent), favorable currency translation (+0.3 percent), and improved pricing (+0.1 percent). Acquisitions contributed 3.7 percent to sales volume growth. Segment Gross Margin of 38.6 percent increased 80 basis points compared with the prior-year period.
- Adjusted EBIT of $166.1 million increased 8.3 percent from the prior-year quarter primarily due to increased segment operating income and a gain related to the termination of certain retiree benefit plans.
- In Q2, Grace spent $173 million to repurchase approximately 1.8 million shares at an average price of $94.29.
- As of July 23, 2014, Grace expects 2014 Adjusted EBIT to be in the range of $620 million to $640 million, an increase of 12 to 17 percent compared with 2013 Adjusted EBIT of $550.8 million. The co expects Adjusted EBITDA to be in the range of $760 million to $780 million.
6:14 am Praxair misses by $0.01, misses on revs; sees Q3 EPS below consensus; lowers top end of FY14 EPS in-line, revs in-line (PX) : Reports Q2 (Jun) earnings of $1.58 per share, $0.01 worse than the Capital IQ Consensus Estimate of $1.59; revenues rose 3.3% year/year to $3.11 bln vs the $3.16 bln consensus.
- Co issues downside guidance for Q3, sees EPS of $1.58-1.65 vs. $1.66 Capital IQ Consensus Estimate.
- Co issues in-line guidance for FY14, lowers top end of EPS to $6.30-6.45 from $6.30-6.50 vs. $6.44 Capital IQ Consensus Estimate; lowers top end of FY14 revs to $12.4-12.7 bln from $12.4-12.8 bln vs. $12.58 bln Capital IQ Consensus Estimate.
- Operating profit in the second quarter was $697 million, 5% above the prior-year quarter. Excluding negative currency translation impacts, operating profit rose 7% primarily driven by higher pricing and productivity gains. Operating profit as a percentage of sales was a strong 22.4% and EBITDA margin grew to 32.1%.
- Second-quarter cash flow from operations was $847 million and funded capital expenditures of $384 million, primarily for new production plants under long-term contracts with customers. Acquisition expenditures in the quarter were $46 million, primarily related to U.S. packaged gas businesses.
6:13 am Air Products beats by $0.01, misses on revs; guides Q4 EPS in-line; guides FY14 EPS in-line (APD) : Reports Q3 (Jun) earnings of $1.46 per share, $0.01 better than the Capital IQ Consensus Estimate of $1.45; revenues rose 3.4% year/year to $2.63 bln vs the $2.67 bln consensus.
- Rev increase was driven by higher volumes across all business segments. Excluding the prior exit from the Polyurethane Intermediates business, underlying sales improved four percent versus prior year on three percent higher volumes. Sequentially, sales increased two percent on four percent higher volumes in Electronics and Performance Materials, Tonnage Gases, and Merchant Gases.
- Merchant Gases sales of $1,077 million increased four percent versus prior year, primarily on higher volumes in Asia and U.S./Canada. Liquid oxygen and nitrogen volumes increased in all regions, partially offset by lower global helium volumes. Operating income of $174 million increased five percent versus prior year, largely on higher volumes and better pricing. Sequential operating income improved 21 percent, due mainly to recovery of weather-related costs incurred in the second quarter. Operating margin of 16.1 percent was up 10 basis points versus last year and up 230 basis points sequentially.
- Tonnage Gases sales of $835 million decreased one percent versus prior year. Excluding PUI, volumes grew two percent on continued hydrogen demand in the U.S. Gulf Coast and the contributions from new plants. Operating income of $118 million was up three percent versus prior year, excluding the effect of the PUI business exit, as contributions from new plants more than offset higher maintenance costs.
- Electronics and Performance Materials sales of $618 million increased nine percent versus prior year on nine percent higher volumes. Electronics sales were up six percent on strong growth in all segments. Performance Materials sales increased 12 percent on higher volumes in all regions and across all product lines. Operating income was up 23 percent, and operating margin improved 200 basis points versus prior year on higher volumes and better cost performance.
- Equipment and Energy sales of $104 million increased one percent, and operating income of $17 million increased nine percent versus prior year, driven largely by LNG project activity. The sales backlog of $584 million increased 78 percent versus prior year on several new large orders.
Co issues in-line guidance for Q4, sees EPS of $1.60-1.65, excluding non-recurring items, vs. $1.62 Capital IQ Consensus Estimate. Co narrows in-line guidance for FY14, sees EPS of $5.72-5.77, excluding non-recurring items, vs. $5.73 Capital IQ Consensus Estimate. Prior guidance was for $5.70-5.85.
6:12 am Evercore beats by $0.06, beats on revs (EVR) : Reports Q2 (Jun) earnings of $0.66 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $0.60; revenues rose 5.3% year/year to $217.7 mln vs the $201.13 mln consensus.
"We are pleased with our results for the second quarter, as we generated record revenues with a balanced contribution from both our Investment Banking and Investment Management businesses. We continue to realize success in the Advisory marketplace, advising on leading M&A, restructuring, private capital raising and capital markets transactions, as revenues in our Investment Banking business were the second highest in our history. Our Investment Management business continued to grow assets under management, reporting its third highest revenue quarter in our history,"
6:08 am TE Connectivity beats by $0.01, reports revs in-line; guides Q4 EPS below consensus, revs in-line (TEL) : Reports Q3 (Jun) earnings of $1.00 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.99; revenues rose 3.8% year/year to $3.58 bln vs the $3.6 bln consensus.
- Co issues guidance for Q4, sees EPS of $0.98-1.02 vs. $1.04 Capital IQ Consensus Estimate; sees Q4 revs of $3.56-3.66 bln vs. $3.62 bln Capital IQ Consensus Estimate.
- "We expect continued strength in our Transportation and Industrial segments for the remainder of the fiscal year. For the first nine months of the year, we generated $1.1 billion in free cash flow and returned over 70 percent to shareholders. For the full year, we are reiterating our guidance and expect adjusted EPS growth of approximately 17 percent, sales growth of 5 percent, and adjusted operating margins above our target of 15 percent."
6:05 am Whirlpool misses by $0.29, reports revs in-line; lowers FY14 EPS below consensus (WHR) : Reports Q2 (Jun) earnings of $2.62 per share, excluding non-recurring items, $0.29 worse than the Capital IQ Consensus Estimate of $2.91; revenues rose 2.4% year/year to $4.86 bln vs the $4.84 bln consensus.
- Co issues lowered guidance for FY14, sees EPS of $11.50-12.00 from $12.00-12.50, excluding non-recurring items, vs. $12.16 Capital IQ Consensus Estimate.
- Whirlpool North America reported second-quarter net sales of $2.7 billion compared to $2.6 billion in the same prior-year period, an increase of over 3 percent. Excluding the impact of currency, sales increased approximately 4 percent.
- Whirlpool Asia reported second-quarter net sales of $211 million compared to $246 million in the same prior-year period. Excluding the impact of currency, sales decreased approximately 9 percent.
- Guidance Details: Whirlpool Corporation has adjusted its full-year 2014 guidance to reflect trade customer inventory transitions in China related to the pending acquisition of a majority stake in Hefei Rongshida Sanyo Electric Co., Ltd. and investment expenses related to the pending acquisition of a majority stake in Indesit Company S.p.A. The company expects full-year net earnings per diluted share of $10.30 to $10.80 and full-year ongoing business earnings per diluted share of $11.50 to $12.00.
6:03 am Thermo Fisher beats by $0.09, beats on revs; slightly raises FY14 EPS and narrows revs guidance (TMO) :
- Reports Q2 (Jun) earnings of $1.72 per share, $0.09 better than the Capital IQ Consensus Estimate of $1.63; revenues rose 33.4% year/year to $4.32 bln vs the $4.25 bln consensus.
- Thermo Fisher is updating its annual revenue and adjusted EPS guidance for full-year 2014 primarily to reflect solid operating performance in the first half of the year, increased synergies from the Life Technologies integration and the expected divestiture of its Cole-Parmer business. Co sees FY14 EPS of $6.85-6.97, prior $6.80-6.95 vs. $6.91 Capital IQ Consensus Estimate; sees FY14 revs of $16.86 -16.98 bln, prior $16.84 -17.00 bln vs. $16.95 bln Capital IQ Consensus Estimate.
6:02 am Sinovac Biotech receives Beijing CDC tender to supply seasonal flu vaccine Anflu (SVA) : Co announced that it has been selected by the Beijing Centers for Disease Control and Prevention to be a supplier of the seasonal influenza vaccine to the citizens of Beijing for 2014.
- The Beijing CDC plans to order a minimum of 1.2 million doses of the seasonal flu vaccine this year from four domestic vaccine manufacturers for its vaccination campaign. Each manufacturer has agreed to supply no less than 300,000 doses. If required by the government, Sinovac may deliver additional vaccines. The exact quantity of doses to be ordered will depend on demand during the flu season.
- The co expects to begin delivering the vaccines in the third quarter of 2014.
5:59 am On The Wires (:WIRES) :
- Enphase Energy (ENPH) announced that Energy France Installation, a solar installer based in the Rhone-Alps Region that specializes in photovoltaic installations for residential and small commercial projects, has won a project with AST Groupe to install 1,500 PV systems, each equipped with the Enphase System, on newly constructed single-family homes.
- Microsoft (MSFT) Devices Group announced the Lumia 530 (NOK), delivering an uncompromised smartphone experience with the latest Microsoft and Lumia innovations. It is expected to be available for an estimated retail price of 85 euros before taxes and subsidies, beginning in August 2014.
- TowerJazz (TSEM) announced it is offering a series of webinars to familiarize existing and potential customers with the design and technical support available to maximize their product performance while minimizing cost.
- China Cord Blood (CO) and Cordlife Group announced that the two companies have joined forces in assisting patients across the PRC, Singapore, Hong Kong, Indonesia, India, the Philippines and Malaysia to identify suitable cord blood matching units for stem cell therapy.
5:47 am ABB Ltd reports EPS in-line, revs in-line (ABB) : Reports Q2 (Jun) earnings of $0.28 per share, in-line with the Capital IQ Consensus Estimate of $0.28; revenues fell 0.3% year/year to $10.19 bln vs the $10.17 bln consensus.
- Orders4 of $10.6 billion were 14 percent higher (13 percent on a like-for-like basis2) compared with the same quarter in 2013. Base orders accelerated and large orders grew more than 70 percent. The positive growth momentum was supported across all regions.
- Demand for power distribution systems and equipment from utility customers remained steady in the quarter while utility investments in power transmission remained selective. Industrial demand varied by region and end market, with positive trends in sectors such as oil and gas and general industry and continued weakness in mining.
- Infrastructure markets were also mixed. Construction markets were mainly flat to slightly weaker while rail and marine transportation demand was positive.
- Service orders increased 12 percent and represented 17 percent of total orders, unchanged versus the year-earlier quarter
- The order backlog at the end of June amounted to $27.1 billion, a decrease of 5 percent compared to the end of the same quarter in 2013 but 5 percent higher than at the end of 2013
- Orders were mixed across Europe. For example, orders increased in Russia, the Netherlands and Germany and declined in Norway, the UK and France.
- The strong order development in the Americas partly reflects the large power transmission order won in Canada in the quarter, as well as a double-digit order increase in the US and a significant increase in Brazil compared with the low levels of 2013.
- Asian order growth was led by double-digit increases in China-especially in Power Products and Discrete Automation and Motion-Indonesia, and South Korea. Orders decreased in India.
- Orders increased in the Middle East and Africa-including strong double-digit growth in Saudi Arabia-mainly on higher demand in the power divisions.
"In the short term, there are positive early-cycle macroeconomic signs, for example, in the US. However, there remain uncertainties related to the speed and strength of economic development in some emerging markets. Growth in Europe is expected to continue the pattern seen in the second quarter and to vary by country and sector."
5:34 am BHP Billiton reports a 9% increase in Group production with annual records achieved across 12 operations and four commodities (BHP) : Co provides operational review for the year ended June 30, 2014.
- Western Australia Iron Ore achieved a fourteenth consecutive annual production record as volumes increased to 225 Mt (100% basis), significantly exceeding initial full-year guidance. We now expect production of 245 Mt (100% basis) from the Pilbara in the 2015 financial year.
- Metallurgical coal production of 45 Mt exceeded full-year guidance as Queensland Coal achieved record production and sales volumes.
- Copper production increased to 1.7 Mt as an improvement in mill throughput and concentrator utilisation offset grade decline at a number of operations.
- Petroleum production increased by 4% to a record 246 MMboe with an 18% increase in liquids volumes underpinned by significant growth at Onshore US and Atlantis.
- Six major projects were completed and another two projects achieved first production, including the Caval Ridge coal mine which was completed ahead of schedule and under budget in the June 2014 quarter.
5:07 am Check Point Software beats by $0.02, reports revs in-line (CHKP) : Reports Q2 (Jun) earnings of $0.89 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.87; revenues rose 6.6% year/year to $362.6 mln vs the $359.37 mln consensus.
- Deferred Revenues: $660 million, representing a 14 percent increase year over year
- Share Repurchase Program: During the second quarter of 2014, the company repurchased 3.0 million shares at a total cost of $194 million.
"We had a fantastic second quarter. Total revenues from products and software blades subscription delivered 10 percent growth, which was driven by strong demand across industries and business segments. We saw a nice up-tick in customer wins across the board with several very large customer contracts."
2:37 am BE Aerospace beats by $0.06, beats on revs; reaffirms FY14 EPS guidance, raises FY14 revs above consensus (BEAV) : Reports Q2 (Jun) earnings of $1.13 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $1.07; revenues rose 28.1% year/year to $1.09 bln vs the $1.01 bln consensus.
- Bookings during the second quarter of 2014 were ~$1.06 billion, an increase of ~20% as compared with the prior year period.
- Bookings for the first six months of 2014 increased 29% as compared to the prior year period.
- During the first six months of 2014, aircraft cabin interior products awards increased ~175% as compared with the prior year period, and were a record for any six month period.
- Backlog as of June 30, 2014 was ~$3.9 billion, while awarded but unbooked backlog was ~$5.0 billion, bringing total backlog, both booked and awarded but unbooked, to ~$8.9 billion.
Co issues guidance for FY14, sees EPS of $4.35 vs. $4.41 Capital IQ Consensus Estimate; sees FY14 revs of ~$4.3 bln vs. $4.14 bln Capital IQ Consensus Estimate ($4.2 bln prior).
2:19 am First Midwest Banc reports EPS in-line; raises dividend by $0.01 to $0.08 per share (FMBI) : Reports Q2 (Jun) earnings of $0.25 per share, in-line with the Capital IQ Consensus Estimate of $0.25.
- The Company's efficiency ratio improved from 66.66% to 63.60%. Total noninterest expense for the second quarter of 2014 increased 2.1% and 4.1% compared to the first quarter of 2014 and the second quarter of 2013, respectively.
- Total loans, excluding covered loans, of $5.8 billion rose by $150.4 million, or 10.6% on an annualized basis, from March 31, 2014 and $555.9 million from June 30, 2013.
- Both corporate and consumer loan portfolios continue to benefit from well-balanced growth distributed across the majority of the categories, reflecting credits of varying size within our market footprint.
- Strong growth in the commercial and industrial and agricultural loan categories reflects the impact of greater resource investments and expansion into certain sector-based lending areas, such as agri-business, asset-based lending, and healthcare.
- During the second quarter of 2014, consumer loans grew 9.7% on an annualized basis from the first quarter of 2014, excluding $32.2 million of 1-4 family mortgage loans sold.
- The 29.6% year-over-year increase in the home equity portfolio reflects organic growth and the purchase of $100.6 million of high quality, shorter-duration, floating rate loans.
- Non-performing assets, excluding covered loans and covered OREO, remained stable compared to March 31, 2014 and decreased by $34.5 million, or 24.5%, from June 30, 2013.
- Performing potential problem loans were 3.42% of corporate loans at June 30, 2014, compared to 4.16% at June 30, 2013 and 3.25% at March 31, 2014.
- Net loan charge-offs declined 17.7% from the second quarter of 2013. In addition, year-to-date net loan charge-offs to average loans, excluding covered loans, annualized, decreased 7.3%.
- The Company's tier 1 leverage to average assets ratio increased 8 basis points from March 31, 2014 driven by strong earnings and the increase in allowable deferred tax assets, which more than offset the increase in average assets.
The Board of Directors approved an increase in the quarterly cash dividend from $0.07 to $0.08 per common share during the second quarter of 2014
2:01 am On The Wires (:WIRES) :
- MarkWest Energy Partners (MWE) announced an operational update regarding the continued development of midstream infrastructure projects in the liquids-rich areas of the Marcellus and Utica Shales. In the Marcellus Shale, the Partnership has safely resumed operations of Plant III at the Houston processing and fractionation complex
- ARM (ARMH) announced it has licensed processor and security IP to Atmel (ATML) for use in a wide array of devices requiring image, video and display capabilities. Atmel plans to integrate the newly licensed ARM technology into silicon targeted at wearable devices and automated factory tasks reliant on image processing such as the identification of faulty products.
1:21 am Sims Metal Mgmt announces five year strategic plan (SMSMY) : Co announces a five year strategic plan to grow underlying EBIT by 350% over the FY13 underlying result, following a review of the Company's global operating portfolio by new Group CEO
- Five year strategic plan developed to, through internal initiatives, lift EBIT by 350% over the FY13 underlying result
- Optimisation program to drive significantly higher return on capital without the requirement of macroeconomic or cyclical recovery
- $32 million in EBIT benefits expected to be realised through further cost reductions and exiting loss making operations, 50% to be achieved in FY15 and 100% to be achieved in FY16
- No significant additional restructuring activities or charges are anticipated in the Sims Recycling Solutions business after FY14
1:18 am Provident Fincl increases quarterly dividend by 10% to $0.11 per share from $0.10 prior (PROV) : Shareholders of the Company's common stock at the close of business on August 12, 2014 will be entitled to receive the cash dividend. The cash dividend will be payable on September 3, 2014.
- Company Earnings