6:54 am LyondellBasell beats by $0.29, beats on revs (LYB) : Reports Q2 (Jun) earnings from cont ops of $2.22 per share, $0.29 better than the Capital IQ Consensus Estimate of $1.93; revenues rose 9.1% year/year to $12.12 bln vs the $11.5 bln consensus.
- "During the first weeks of the third quarter, industry conditions have been similar to the second quarter environment. U.S. oil, natural gas, and natural gas liquids production remain strong. Together these support margins in our Olefins and Polyolefins -- Americas, Intermediates and Derivatives, and Refining segments. However, our results in the next quarter will be negatively impacted by the delayed start-up of our La Porte ethylene plant."
6:53 am S&P futures vs fair value: -5.00. Nasdaq futures vs fair value: -18.50. :
6:53 am European Markets : FTSE...6813.11...-8.40...-0.10%. DAX...9745.55...-48.50...-0.50%.
6:53 am Asian Markets : Nikkei...15457.87...+173.50...+1.10%. Hang Seng...24216.01...+74.50...+0.30%.
6:52 am Xerox beats by $0.01, reports revs in-line; guides Q3 EPS in-line; raises low end of FY14 EPS guidance (XRX) : Reports Q2 (Jun) earnings of $0.27 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.26; revenues fell 1.8% year/year to $5.29 bln vs the $5.31 bln consensus.
- Revenue from the company's Services business, which represented 57 percent of total revenue, was $3.0 billion, up 2 percent year-over-year or 1 percent in constant currency. Revenue from the company's Document Technology business, which represented 40 percent of total revenue, was $2.1 billion, down 6 percent or 7 percent in constant currency.
- "The second quarter demonstrates progress in executing on our strategy. In our Services business, revenue growth and margin are trending well in commercial services, document outsourcing and internationally. Services segment margin improvement was muted by continued pressure in our government healthcare business including unplanned impairment charges. Our Document Technology business continues to deliver strong profitability through a disciplined and effective approach to operations."
- Second-quarter operating margin of 9.7 percent improved 0.3 points year-over-year and resulted in operating profit of $514 million, up 1 percent. Gross margin was 30.8 percent, and selling, administrative and general expenses were 18.4 percent of revenue.
Co issues in-line guidance for FY14, raises EPS to $1.09-1.13 from $1.07-1.13, excluding non-recurring items, vs. $1.10 Capital IQ Consensus Estimate.
6:44 am African Barrick Gold reports Q2 gold production of 178,206 ounces, 8% higher than Q2 2013, with gold sales of 171,563 ounces (ABGLY) : Reports:
- H1 revenue of US$446 million, 9% below H1 2013, as the impact of a lower average realised gold price more than offset increased sales volumes
- H1 EBITDA1,3 of US$132 million, 1% higher than H1 2013, due to lower cash costs
- H1 net earnings of US$41 million (US10.0 cents per share) impacted by a higher non cash tax charge during Q2 2014
- "During H1 2014 we produced 346,581 ounces of gold, an improvement of 13% on the same period in 2013, at an AISC of US$1,118 per ounce, a reduction of 25% on the previous year. During the second quarter, we delivered the first ounces from the Bulyanhulu CIL Expansion project with development work on the Bulyanhulu Upper East zone and the Gokona underground exploration portal progressing to plan. As a result of the strong H1 2014 performance and the incorporation of the expected production from Bulyanhulu Upper East, we now expect full year gold production to be in excess of 700,000 ounces whilst continuing to target an AISC at the bottom of our guidance range of US$1,100-1,175 per ounce."
6:41 am WABCO Holdings misses by $0.04, misses on revs; narrows FY14 EPS in-line, lowers top end of FY14 revs below consensus (WBC) : Reports Q2 (Jun) earnings of $1.42 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus Estimate of $1.46; revenues rose 8.4% year/year to $735 mln vs the $750.32 mln consensus.
- Co issues guidance for FY14, narrows EPS to $5.45-5.75 from $5.30-5.80, excluding non-recurring items, vs. $5.69 Capital IQ Consensus Estimate; lowers top end of FY14 revs to +6-9% in local currency from +6-11% to ~$2.888-2.965 bln vs. $2.99 bln Capital IQ Consensus Estimate.
- Co reiterates that WABCO expects in 2014 to convert between 80 and 90 percent of its net income attributable to the company into free cash flow, excluding payments associated with streamlining, separation and acquisition items.
- "Looking ahead, our three-pillar strategy of technology leadership, globalization and excellence in execution will continue to drive WABCO's differentiation that positions us as preferred supplier in the global commercial vehicle industry," said Esculier. "Indeed, our solid results in Q2 2014 proved once again that, despite uncertainty and volatility in demand across different regions, WABCO continues to strongly outperform the market while we also maintain our ability to reliably deliver a robust incremental operating margin,"
6:38 am Barnes Group reports EPS in-line, beats on revs; guides FY14 EPS in-line (B) : Reports Q2 (Jun) earnings of $0.59 per share, in-line with the Capital IQ Consensus Estimate of $0.59; revenues rose 20.5% year/year to $322.1 mln vs the $316.83 mln consensus.
- Co issues in-line guidance for FY14, sees EPS of $2.23-2.33 vs. $2.26 Capital IQ Consensus Estimate.
- Barnes Group now expects 2014 total revenue to grow 15% to 17% (consensus calls for +16%), 5% to 7% on an organic basis, and forecasts adjusted operating margins in the range of 15.0% to 15.5%.
6:35 am Arctic Cat beats by $0.03, beats on revs; reaffirms FY15 EPS guidance, revs guidance (ACAT) : Reports Q1 (Jun) adj. earnings of $0.35 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.32; revenues rose 18.9% year/year to $143.6 mln vs the $132.78 mln consensus, chiefly due to higher snowmobile sales to its OEM partner, in addition to increased sales from its parts, garments and accessories (PG&A) business.
- Gross profit margin in the 2015 first quarter was 21.4 percent compared to 24.1 percent in the prior-year quarter. The gross profit margin decline of 270 basis points stemmed primarily from the unfavorable Canadian currency exchange, as ~30 percent of Arctic Cat's annual sales are to Canada. Also impacting gross margin in the quarter were lower-margin OEM sales.
"We expect this to be a challenging year, particularly in the first half of fiscal 2015... We had record sales for a first quarter, with strong contributions from snowmobile sales. We shipped a large percentage of our lower-margin OEM partner models in the quarter. Sales of ATVs and side-by-sides were lower in the first quarter, as planned, to reduce dealer inventories ahead of our ATV dealer show in September. Higher sales were not enough to overcome the unfavorable Canadian currency and the planned increase in OEM sales in the 2015 first quarter, resulting in lower profitability compared to record earnings in the year-ago period. Going forward, we remain focused on increasing sales this fiscal year by introducing innovative new products, as well as continuing to leverage the company's operating efficiency."
6:35 am Aon beats by $0.05, misses on revs (AON) : Reports Q2 (Jun) earnings of $1.25 per share, $0.05 better than the Capital IQ Consensus Estimate of $1.20; revenues rose 0.8% year/year to $2.92 bln vs the $2.97 bln consensus.
- "Our second quarter results reflect strong earnings per share growth of 13 percent, including organic growth in each segment, underlying operational improvement and effective capital management, despite challenges from both foreign currency translation and market impact," said Greg Case, president and chief executive officer. "Looking forward, we are well on track to deliver continued organic growth across each segment and operational improvement through returns on investments in GRIP and healthcare exchanges. We continue to effectively manage capital for shareholders, as highlighted by the return of $1.4 billion of capital through the first six months of 2014."
6:29 am Anglo American beats on top and bottom lines (AAUKY) : Reports H1 EPS of $1.00 vs $0.89 CIQ est; revs were flat YoY to $16.1 bln vs $15.7 bln CIQ est.
Commentary on H1
"Our Driving Value programme is delivering improved operational performance, reflecting a greater focus on mining processes and costs. Across the portfolio, production volumes were up, with the notable exception of Platinum. At Sishen, where the recovery plan is being implemented, we have seen improved mining and production volumes of 5% and expect a further increase in waste volumes in the second half. In our Copper business, the 12% increase in production also demonstrates the benefits of greater mine efficiency and throughput gains..."
"As we look at the global economic outlook, uncertainty is likely to persist for the balance of 2014, though there are some encouraging signs that activity is strengthening in our key markets. Our diversified portfolio positions us well for the potential significant further urbanisation and industrialisation required to support growth in China and other emerging economies, while an expanding middle class is expected to support a rising intensity of consumption for our late cycle products. Over the long term, we expect new supply to be constrained and to see tightening market fundamentals and a recovery in price performance."
6:25 am On The Wires (:WIRES) :
- Corporate Office Properties Trust (OFC) has executed a 10-year lease with a major defense contractor for 131,600 square feet at its Redstone Gateway project in Huntsville, AL.
- Orbitz.com (OWW) released a customized app for Amazon's new Fire phone.
6:20 am Tyco reports EPS in-line, revs in-line (TYC) : Reports Q3 (Jun) earnings of $0.54 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.54; revenues rose 3.4% year/year to $2.62 bln vs the $2.64 bln consensus.
- Organic revenue grew 4% in the quarter, with growth across all segments, led by products with a 12% increase from the prior year quarter. Acquisitions contributed 2 percentage points of growth, which was partially offset by the impact of divestitures.
- "The pickup in revenue growth we started to see last quarter continued, resulting in strong organic growth of 4%. In addition, we moved quickly to deploy the proceeds from our recent divestitures to maximize shareholder value, repurchasing 20 million shares over the past three months."
6:16 am Prosperity Bancshares beats by $0.06 (PB) : Reports Q2 (Jun) earnings of $1.08 per share, $0.06 better than the Capital IQ Consensus Estimate of $1.02.
- Net interest income before provision for credit losses for the quarter ended June 30, 2014 increased 46.6% to $174.055 million, compared with $118.742 million during the same period in 2013. The increase was primarily due to a 30.7% increase in average interest-earning assets for the same period.
- The net interest margin on a tax equivalent basis for the three months ended June 30, 2014 increased to 3.83%, compared with 3.43% for the same period in 2013 and increased from 3.62% for the three months ended March 31, 2014.
- Loans at June 30, 2014 were $9.308 billion, an increase of $3.136 billion or 50.8%, compared with $6.172 billion at June 30, 2013, primarily due to the acquisitions of FVNB and F&M.
6:14 am Viad Corp beats by $0.07, beats on revs; guides Q3 EPS below consensus, revs in-line (VVI) : Reports Q2 (Jun) earnings of $0.44 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus Estimate of $0.37; revenues rose 4.1% year/year to $256.4 mln vs the $243.92 mln consensus.
- Co issues guidance for Q3, sees EPS of $0.91-1.01 vs. $1.08 Capital IQ Consensus Estimate; sees Q3 revs of $285-300 mln vs. $288.00 mln Capital IQ Consensus Estimate.
- "With two solid quarters under our belts, 2014 is indeed shaping up to be a year of significant growth for us. In addition to organic growth, we will also benefit from the July 1 acquisition of the West Glacier Motel & Cabins, the Apgar Village Lodge and related amenities in the Glacier National Park market. We remain sharply focused on driving revenue growth and operational excellence in our existing business, as well as pursuing acquisitions that enhance shareholder value."
- FY14 Guidance: Marketing & Events Group: Revenue is expected to increase at a high single to low double-digit rate from $844.9 million in 2013. Base same-show revenue is expected to increase at a low to mid single-digit rate in the U.S. Base same shows are defined as shows that take place in the same city during the same quarter each year. Show rotation is expected to have a net positive impact on full year revenue of approximately $60 million. Show rotation refers to shows that occur less frequently than annually, as well as annual shows that shift quarters from one year to the next. Travel & Recreation Group: Revenue is expected to increase at a mid to high single-digit rate from $108.4 million in 2013. Exchange rate variances are expected to negatively impact revenue by approximately $5 million versus 2013. Corporate & Other: Corporate activities expense is expected to approximate $9.0 million to $9.5 million.
6:14 am AngloGold Ashanti -- Rand Refinery and corporate update; loan facility extended to it by certain of its shareholders; ongoing restructuring at its Obuasi mine in Ghana, will also impact earnings for the second quarter (AU) : Co referred to announcement by Rand Refinery regarding a loan facility extended to it by certain of its shareholders, as a precautionary measure. This follows challenges encountered in the implementation of a new Enterprise Resource Planning system at the refinery. AngloGold Ashanti confirms its participation in the loan facility.
- AngloGold Ashanti owns a 42.41% stake in the Rand Refinery and accounts for it using the equity accounting method as an associate. AngloGold Ashanti expects to make a provision in its accounts for $51m, which will impact second quarter earnings scheduled for release on August 11.
- In addition, AngloGold Ashanti notes that costs incurred in the previously announced closure of the Yatela mine in Mali, and ongoing restructuring at its Obuasi mine in Ghana, will also impact earnings for the second quarter.
6:08 am Stanley Black & Decker beats by $0.06, misses on revs; raises FY14 EPS above consensus (SWK) : Reports Q2 (Jun) earnings of $1.43 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $1.37; revenues rose 1.0% year/year to $2.89 bln vs the $2.94 bln consensus.
- Co issues raised guidance for FY14, sees EPS of $5.50-5.60 from $5.35-5.50, excluding non-recurring items, vs. $5.43 Capital IQ Consensus Estimate.
- The gross margin rate for the quarter was 36.5%. Excluding charges the gross margin rate was also 36.5%, up 100 basis points from the prior year rate of 35.5%, as price, productivity and cost actions more than offset significant unfavorable currency.
- Guidance Commentary: "We anticipate a stronger full year financial performance within certain of our businesses, most notably the Industrial segment, and further Company-wide cost savings to more than offset slightly lower full year organic sales growth due to the weather impact on the CDIY outdoor product season and slower underlying emerging markets growth. This revised guidance is consistent with our EPS profile in recent years whereby approximately 45% of annual EPS typically falls within the first half of the year. We have strong conviction that our 2014 free cash flow will be at least $675 million inclusive of approximately $250 million of one-time payments primarily relating to 2013 restructuring actions."
6:05 am Covidien beats by $0.04, reports revs in-line (COV) : Reports Q3 (Jun) earnings of $1.04 per share, $0.04 better than the Capital IQ Consensus Estimate of $1.00; revenues rose 4.3% year/year to $2.69 bln vs the $2.69 bln consensus. Third-quarter 2014 gross margin of 58.9% declined 0.6 percentage points from 59.5% in the prior-year period. On an adjusted basis, excluding the specified items shown on the attached tables containing non-GAAP reconciliations, third-quarter 2014 gross margin of 59.4% was about level with a year ago.
6:04 am Silicon Labs beats by $0.12, beats on revs; guides Q3 EPS below consensus, revs in-line (SLAB) : Reports Q2 (Jun) earnings of $0.58 per share, excluding non-recurring items, $0.12 better than the Capital IQ Consensus Estimate of $0.46; revenues rose 9.5% year/year to $154.9 mln vs the $149.01 mln consensus.
- Co reports Q2 Non-GAAP Gross margin was 64.1 percent.
- Co issues guidance for Q3, sees EPS of 0.45-0.51, excluding non-recurring items, vs. $0.54 Capital IQ Consensus Estimate; sees Q3 revs of $153-157 mln vs. $156.80 mln Capital IQ Consensus Estimate.
6:04 am Corp Office Props reports FFO in-line, beats on revs; guides Q3 /Q4 FFO in-line; raises FY14 FFO (still in-line) (OFC) : Reports Q2 (Jun) funds from operations of $0.44 per share, in-line with the Capital IQ Consensus Estimate of $0.44; revenues rose 2.4% year/year to $139.82 mln vs the $133.91 mln consensus.
- Co issues in-line guidance for Q3, sees FFO of $0.46--0.48 vs. $0.48 Capital IQ Consensus Estimate. Co issues in-line guidance for Q4 (Dec), sees FFO of $0.48-0.50 vs. $0.48 Capital IQ Consensus Estimate.
- Co raises guidance for FY14, sees FFO of $1.86--$1.90, prior $1.85--$1.92 vs. $1.88 Capital IQ Consensus Estimate.
4:03 am On The Wires (:WIRES) :
- Gulf Island Fabrication (GIFI), announced that, they have signed a cooperative agreement with Bechtel Oil, Gas, and Chemicals to work together to pursue opportunities for offshore projects for the U.S. Gulf of Mexico and abroad. Gulf Island's fabrication experience, infrastructure, and skilled labor along with Bechtel's unmatched engineering, project management, and direct-hire construction capabilities, provides customers a strong EPC provider.
- Power management company Eaton (ETN) and Shaanxi Fast Gear Co announced they have signed a joint venture agreement to support the growing commercial vehicle clutch market in China. The formation of the joint venture is subject to regulatory approvals and customary closing conditions. Terms were not disclosed.
3:05 am 21st Century Fox agrees to combine European Satellite Television Holdings; New Sky will be Europe's leading pay-television business (FOXA) : 21st Century Fox (FOXA, FOX) announced that it will transfer Sky Italia and its 57.4% interest in Sky Deutschland (SKDTY) to BSkyB to create a pan-European digital television leader through the combination of these assets.
In exchange for the transfer, 21st Century Fox will receive ~$9.3 billion in value from BSkyB comprised of ~$8.6 billion in cash and BSkyB's (BSYBY) 21% interest in National Geographic Channels International, raising 21st Century Fox's ownership stake to 73%. In addition, 21st Century Fox will participate in BSkyB's announced equity offering by purchasing ~$900 million of additional shares in BSkyB to maintain the Company's 39.1% ownership interest. The net, after-tax cash proceeds to be received by 21st Century Fox upon completion of all the elements of this transaction will approximate $7.2 billion. The agreement is subject to regulatory approvals, the approval of BSkyB stockholders and customary closing conditions.
2:32 am Bayer AG and Onyx Pharmaceuticals report Phase 3 trial results of NEXAVAR in patients with advanced breast cancer did not meet its primary endpoint (BAYRY) : Bayer HealthCare and Onyx Pharmaceuticals, an Amgen subsidiary (AMGN), announced that an investigational Phase 3 trial of NEXAVAR tablets in patients with advanced breast cancer did not meet its primary endpoint of improving progression-free survival.
The study, called RESILIENCE, evaluated the efficacy and safety of sorafenib in combination with capecitabine, an oral chemotherapeutic agent, compared to placebo plus capecitabine, in patients with HER2-negative breast cancer who are resistant to or have failed prior taxane therapy, and resistant to or failed anthracycline or for whom further anthracycline therapy is not indicated. Based on initial review of the data, the types of adverse events observed were generally comparable with those known for either sorafenib or capecitabine. Data from this study are expected to be presented at an upcoming scientific congress.
2:20 am Ocular Therapeutix (Nasdaq: OCUL) prices 5 mln share IPO at $13 per share, below the expected range of $14-16 (:IPOXX) :
2:17 am TripAdvisor enters into agreement to acquire Viator (TRIP) : Co announces it has entered into an agreement to acquire Viator, a leading resource for researching and booking destination activities around the world. Viator features more than 20,000 bookable tours and attractions and more than 600,000 reviews, photos, and videos submitted by travelers.
- The purchase price for the transaction is ~$200 million, subject to adjustment, and will be payable substantially in the form of cash.
2:00 am Advanced Drainage Systems (NYSE: WMS) prices 14.5 mln share IPO (9.2 mln by selling stockholders) at $16.00 per share, below the expected range of $17-19 (:IPOXX) :
1:49 am AcelRx confirms July 27, 2014 PDUFA date for Zalviso (ACRX) :
1:44 am MB Financial receives OCC approval for pending merger (MBFI) : Co announces that the Office of the Comptroller of the Currency has approved the merger of Cole Taylor Bank, the bank subsidiary of Taylor Capital Group, Inc., with MB Financial, Inc.'s bank subsidiary, MB Financial Bank, N.A. As previously announced, the Board of Governors of the Federal Reserve System on June 30, 2014, approved the merger of Taylor Capital with MB Financial
1:39 am Parnell Pharmaceuticals acquires license for intellectual property and rights to develop compounds for bone and dermal regeneration (PARN) : Co announces the successful licensing of two compounds that will be added to Parnell's already extensive pipeline through a license agreement with Australian-based CIMTECH Pty, a biotechnology company. The compounds now known as PAR 121 and PAR 122 have shown promise in bone regeneration and dermal regeneration, respectively. Parnell has received a license to develop the compounds for the veterinary market with the potential to also seek human drug approvals.
- Pre-clinical studies into PAR122 showed similarly impressive outcomes with a rapid and significant thickening of the epidermis in treated subjects and an improvement in acute wound healing. A drug developed with the PAR122 compound could be used to rapidly repair skin and therefore may be useful in treating conditions such as atopic dermatitis, a very common condition in dogs, typically caused by flea allergy.
1:35 am Mid-Con Energy Partners acquires mature Northeastern Oklahoma Properties, announces quarterly cash distribution (MCEP) : Co announces that it has entered into a definitive agreement to acquire net proved reserves estimated at 2.6 million barrels of oil equivalent ("Mmboe") for an aggregate purchase price of ~$56.5 million, subject to customary post-closing adjustments. The acquisition, expected to close and become effective on August 5, 2014, will be funded with ~2.2 million units of MCEP stock and $4.5 million in cash.
Highlights of the acquisition include:
- Mid-Con Energy acquires roughly 97% working interest and will assume operatorship upon closing
- Reserves of 88% PDP, 3% PDNP and 9% PUD comprised of 90% oil and 10% natural gas
- Estimated net proved reserves of 2.622 Mmboe as of July 1, 2014 acquired at ~$21.55 per barrel
- Average net production of 410 Boe/d in 2Q14 acquired at ~$138k per flowing barrel
- Reserve-to-production ratio of roughly 17.5 years
- Mid-Con Energy Partners, LP announces today that the Board of Directors of its general partner approved a quarterly cash distribution of $0.515 per unit, or $2.06 per unit on an annualized basis, for the quarter ended June 30, 2014. The distribution will be payable August 11, 2014 to unitholders of record at the close of business on August 4, 2014.
1:30 am Basic Energy Services beats by $0.04, reports revs in-line (BAS) : Reports Q2 (Jun) earnings of $0.13 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.09; revenues rose 10.4% year/year to $359.7 mln vs the $357.44 mln consensus.
Business Segment Results
- Completion and Remedial Services - Completion and remedial services revenue rose 20% to $164.4 million in the second quarter of 2014 from $137.5 million in the prior quarter. The sequential increase in revenue was mainly due to an increased activity in our pumping and coil tubing services based on increased activity by our customers and a larger equipment base due to capital expenditures during the quarter. In the second quarter of 2013, this segment generated $132.2 million in revenue.
- Well Servicing - At June 30, 2014, the well servicing rig count was 421, the same as the end of the prior quarter. The weighted average number of well servicing rigs during the second quarter of 2014 was also 421. During the second quarter of 2013, the weighted average well servicing rig count was 421. Rig hours improved to 214,200 in the second quarter of 2014, up by two percent from 209,600 in the previous quarter and down three percent from 216,600 in the comparable quarter of last year. Rig utilization was 71% in the second quarter of 2014, equal to the prior quarter and 72% in the second quarter of 2013. Lost hours due to inclement weather in our Texas and Oklahoma footprint offset regular seasonal improvements during the second quarter.
- Fluid Services - Fluid services revenue in the second quarter of 2014 decreased three percent to $90.3 million compared to $92.8 million in the prior quarter. The sequential decrease in revenue was due primarily to seasonal-based declines in frac heating and hot oiling, as well as inclement weather during the quarter impacting operations. During the second quarter of 2013, this segment generated $85.6 million in revenue.
- The weighted average number of fluid services trucks rose less than one percent to 1,015 during the second quarter of 2014, increasing by nine trucks from the weighted average truck count of 1,006 during the first quarter of 2014. The weighted average number of fluid services trucks was 972 during the second quarter of 2013. Truck hours of 630,900 during the second quarter of 2014 rose four percent from the 607,200 generated in the first quarter of 2014, and were up 11% compared to 568,500 in the same period in 2013.
1:27 am Cempressco Partners prices 15,280,000 common units at $23.50 per unit (GSJK) :
- Company Earnings