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6:44 pm Newmont Mining to develop new Merian gold mine in Suriname (NEM) : Co will invest in developing the Merian gold mine in Suriname with strong local support for the project and expected all-in sustaining costs of between $750 and $850 per ounce in the first five years. The new mine is expected to begin production in late 2016, pending receipt of the Right of Exploitation from the government of Suriname.

  • The total capital investment is approximately $900 million to $1 billion, and the government of Suriname has the option to earn a 25 percent fully-funded equity ownership stake, including all project capital and operating expenses and an initial earn-in contribution. Newmont expects to fund its share of development through available cash balances and projected cash flows. 
  • Merian contains gold reserves of 4.2 million ounces and is expected to produce an average of 300,000 to 400,000 ounces of gold annually at competitive costs over a mine life of 11 years. Higher grade ore and throughput in the early phases will boost annual production to an average of 400,000 to 500,000 ounces of gold per year in the first five years and reduce the payback period.

6:37 pm MSCI announces that First State Super has selected MSCI's multi-asset class risk management platform (MSCI) : Co announced that one of Australia's largest superannuation funds, First State Super, has selected BarraOne, MSCI's multi-asset class risk management and performance attribution platform, to help the continued evolution of their investment process.

6:36 pm Regeneron Pharms announces EYLEA Injection receives FDA approval for the treatment of diabetic macular edema (stock halted) (REGN) : Co announced that the FDA has approved EYLEA (aflibercept) Injection for the treatment of Diabetic Macular Edema (:DME). The recommended dosage of EYLEA in patients with DME is 2 milligrams (mg) every two months (8 weeks) after five initial monthly injections. Although EYLEA may be dosed as frequently as 2 mg every 4 weeks, additional efficacy was not demonstrated when EYLEA was dosed every 4 weeks compared to every 8 weeks.

6:34 pm Aegion misses by $0.01, misses on revs; reaffirms FY14 EPS (AEGN) : Reports Q2 (Jun) earnings of $0.34 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.35; revenues rose 33.4% year/year to $322.87 mln vs the $329.74 mln consensus.

  • Consolidated backlog as of June 30, 2014, compared to a year ago and excluding Brinderson, increased 13.9 percent to $581.1 million primarily due to a 19.6 percent increase for Water and Wastewater and a 11.6 percent increase for Energy and Mining. Brinderson's backlog as of June 30, 2014 was $248.1 million, a 23.4 percent increase since the acquisition on July 1, 2013. Aegion's total backlog was $829 million, an all-time record.
Co issues reaffirms guidance for FY14, sees EPS of $1.50-1.65, excluding non-recurring items, vs. $1.53 Capital IQ Consensus Estimate.
  • "We have the backlog in hand and a solid bid table with our core businesses for a strong second half of 2014. While we have a cautious outlook this year with respect to the project-based businesses, we are making progress in the expected recovery of our Commercial and Structural platform."

6:27 pm Level 3 announces pricing of private offering of $1 bln of 5.375% senior notes due 2022 (LVLT) : Co announced that Level 3 Escrow II, Inc., its indirect, wholly owned subsidiary, has agreed to sell $1 billion aggregate principal amount of its 5.375% Senior Notes due 2022 in a private offering. The new 5.375% Senior Notes due 2022 were priced to investors at 100% of their principal amount and will mature on August 15, 2022.

  • The gross proceeds from the offering of the notes will be deposited into a segregated escrow account until the date on which certain escrow conditions, including, but not limited to, the substantially concurrent consummation of the acquisition by Level 3 of tw telecom inc. and the assumption of the notes by Level 3 Financing, Inc., a wholly owned subsidiary of Level 3 and the direct parent company of Level 3 Escrow, are satisfied. If the escrow conditions are not satisfied on or before June 15, 2015 (or any earlier date on which Level 3 determines that any of such escrow conditions cannot be satisfied), Level 3 Escrow will be required to redeem the notes.
  • Following the release of the escrowed funds in connection with the assumption of the notes by Level 3 Financing, the net proceeds from the offering of the notes will be used to finance the cash portion of the merger consideration payable to tw telecom inc. stockholders and to refinance certain existing indebtedness of tw telecom inc., including fees and premiums, in connection with the closing of Level 3's proposed acquisition of tw telecom inc. The gross proceeds from the offering will reduce the outstanding bridge commitment Level 3 has in place with certain financial institutions in connection with financing the cash portion of the merger consideration and refinancing certain tw telecom inc. indebtedness.

6:14 pm First Bancorp reports EPS in-line (FBP) : Reports Q2 (Jun) earnings of $0.11 per share, in-line with the Capital IQ Consensus Estimate of $0.11.

  • Provision for loan and lease losses decreased by $5.2 million to $26.7 million, mainly reflecting a $4.1 million recovery on a restructured commercial mortgage loan paid in full, and improvement in charge-off trends for commercial and industrial loans.
  • Net interest income, excluding fair value adjustments on derivative instruments of $0.3 million, decreased by $1.4 million to $129.6 million. Net interest margin of 4.20% in the second quarter of 2014 compared to 4.26% in the first quarter of 2014. The decrease in net interest income and margin primarily reflects faster prepayment rates on U.S. agency mortgage-backed securities, a decrease in the average yield of the consumer loans portfolio, and a decline in the average volume of commercial loans.
  • Total capital, Tier 1 capital, and leverage ratios of 18.06%, 16.80%, and 12.04%, respectively, as of June 30, 2014. Common equity Tier 1 capital ratio of 13.92% and tangible common equity ratio of 9.76% as of June 30, 2014.

6:04 pm Boston Properties beats by $0.02, beats on revs; guides Q3 FFO in-line; slightly lowers FY14 FFO guidance in-line (BXP) : Reports Q2 (Jun) funds from operations of $1.35 per share, $0.02 better than the Capital IQ Consensus Estimate of $1.33; revenues rose 15.6% yoy to $589.79 mln vs the $569.77 mln consensus.

Co issues in-line guidance for Q3, sees FFO of $1.36-1.38 vs. $1.37 Capital IQ Consensus Estimate.

Co issues in-line guidance for FY14, sees FFO of $5.24-5.29 (lowered from $5.25-5.33) vs. $5.28 Capital IQ Consensus Estimate.

  • "The updated guidance reflects, among other items, a projected increase in same property GAAP net operating income of 2.00% - 2.50% for the full year 2014, which is greater than our previous projected increase of 1.75% - 2.50%. The updated guidance also reflects, when compared to its prior guidance, an increase in development and management service income of $0.02 per share, a $0.01 per share decrease in net interest expense and a $0.05 per share decrease in FFO due to the completed and expected sales of Mountain View Technology Park and Mountain View Research Park Building Sixteen, Patriots Park and Broad Run Business Park Land."

5:41 pm Regal-Beloit reports EPS in-line, misses on revs (RBC) : Reports Q2 (Jun) earnings of $1.27 per share, in-line with the Capital IQ Consensus Estimate of $1.27; revenues rose 3.5% year/year to $850.4 mln vs the $864.23 mln consensus. Co sees Q3 EPS in the range of $1.12-1.20, ex items, Capital IQ consensus $1.28.

5:41 pm Central Garden retains Lazard as financial advisor and Cravath, Swaine & Moore LLP as legal advisor to assist the Board in its review of two proposals recently received from Harbinger Group (CENT) : Co announced that it has retained Lazard as financial advisor and Cravath, Swaine & Moore LLP as legal advisor to assist the Company's Board of Directors in its review of two proposals recently received from Harbinger Group Inc.

The Company also announced today that it will release results for its third quarter ended June 28, 2014 on Thursday, August 7, 2014, after the close of trading. The Company will not be hosting a conference call.

5:33 pm U.S. Silica beats by $0.08, beats on revs; raises FY14 adjusted EBITDA guidance (SLCA) : Reports Q2 (Jun) earnings of $0.55 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus Estimate of $0.47; revenues rose 58.5% year/year to $205.8 mln vs the $189.71 mln consensus.

  • Overall sales volumes increased to 2.6 million tons, a 27% improvement over the second quarter of 2013 and up 13% sequentially over the first quarter of 2014.
  • Contribution margin for the quarter was $74.7 million compared with $50.8 million in the same period of the prior year and up 36% sequentially over the first quarter of 2014.
  • Adjusted EBITDA was $59.8 million versus $ 41.0 million for the same period last year and representing a 43% increase sequentially over the first quarter of 2014.
Outlook and Guidance
  • The Company is increasing the guidance it provided in its press release dated April 29, 2014. For the full-year 2014, the Company now anticipates Adjusted EBITDA in the range of $215 million to $225 million (from $180-200 mln), which includes a small contribution from our Cadre acquisition. The Company is also revising guidance for capital expenditures and its full-year effective tax rate. The Company now expects capital expenditures in the range of $95 million to $105 million and an effective tax rate of approximately 27 percent.

5:27 pm Rock-Tenn beats by $0.17, reports revs in-line (RKT) : Reports Q3 (Jun) earnings of $1.97 per share, excluding non-recurring items, $0.17 better than the Capital IQ Consensus Estimate of $1.80; revenues rose 3.4% year/year to $2.53 bln vs the $2.51 bln consensus. Segment Results:

  • Mill and Converting Tons Shipped: Corrugated Packaging segment shipments of approximately 1,962,000 tons increased 2.1% or approximately 40,000 tons compared to the prior year.
  • Corrugated Packaging Segment: Corrugated Packaging segment net sales increased $55 million to $1,774 million and segment income decreased $16 million to $180 million in the third quarter of fiscal 2014 compared to the prior year quarter.
  • Consumer Packaging Segment: Consumer Packaging segment net sales increased $15 million to $497 million in the third quarter of fiscal 2014 compared to the prior year quarter due to higher selling prices.
  • Merchandising Displays Segment: Merchandising Displays segment net sales increased $59 million over the prior year third quarter to $225 million primarily due to higher volumes and the impact of a specialty display acquisition completed in December 2013.
  • Recycling Segment: Recycling segment net sales decreased $38 million over the prior year third quarter to $85 million primarily due to lower volumes and recovered fiber prices as a result of soft global markets and seven collection facility closures during the past year.

5:23 pm Willis Group misses by $0.10, beats on revs (WSH) : Reports Q2 (Jun) earnings of $0.49 per share, excluding non-recurring items, $0.10 worse than the Capital IQ Consensus Estimate of $0.59; revenues rose 5.1% year/year to $935 mln vs the $924.06 mln consensus.

  • In the second quarter of 2014, the Company bought back 1,952,000 shares for $83 million. Since the announcement, and through the end of the second quarter of 2014, the Company has bought back 2,856,000 shares for $121 million.

5:22 pm Flushing Fin beats by $0.02; Loan growth for the first half of the year came in at an annualized rate of 6%, which is at the lower end of the co's expected range of growth for the year (FFIC) : Reports Q2 (Jun) earnings of $0.40 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.38.

  • "Loan growth for the first half of the year at an annualized rate of 6% is at the lower end of our expected range of growth for the year. However, loan applications in process were very strong at a record level of $364.3 million at June 30, 2014. New loan officers that came on in the later part of the first quarter and the beginning of the second quarter are beginning to contribute."
  • Loan portfolio grew at an annualized rate of 3.9% in the three months ended June 30, 2014.
  • Improvement in credit quality:
    • Non-accrual loans totaled $42.8 million at June 30, 2014, an improvement of $0.4 million, or 0.9%, from March 31, 2014, and at its lowest level since December 31, 2008.
    • Delinquent loans totaled $82.0 million at June 30, 2014, an increase of $0.4 million, or 0.4%, from March 31, 2014.
    • Classified assets totaled $77.1 million, a decrease of $9.8 million, or 11.3% from March 31, 2014, and at its lowest level since March 31, 2009.
  • The net interest margin was 3.22%, a decrease of three basis points from the trailing quarter.

5:20 pm SM Energy misses by $0.03, beats on revs (SM) : Reports Q2 (Jun) earnings of $1.56 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus Estimate of $1.59; revenues rose 20.7% year/year to $674.98 mln vs the $625.1 mln consensus.

  • Co reported Average daily production (MBOE/d) of 147.0, Total production (:MMBOE) of 13.38
    • Average daily production increased by 6% from production of 138.6 MBOE per day in the first quarter of 2014. In the second quarter of 2014, SM Energy's reported production mix was 29% oil/condensate, 24% NGLs, and 47% natural gas."
  • In the second quarter, the Company reported per unit costs in-line or slightly below its previously announced guidance range.
  • As of the end of the second quarter, the Company had $163.8 million of cash on hand and outstanding borrowings of $1.6 billion, which were comprised entirely of long term notes.
  • Earlier today, the Company entered into an agreement to acquire approximately 61,000 net acres in Divide and Williams Counties, North Dakota directly adjacent to its Gooseneck area for $330 million. (See 17:18 comment under BTE ticker)
  • SM Energy is reviewing its capital budget for 2014 in light of its recent Bakken/Three Forks acquisition and expects to provide updated capital, production, and performance guidance in mid-August 2014.

5:18 pm Baytex Energy announces that it has entered into an agreement to sell its North Dakota assets to SM Energy (SM), effective July 1, 2014, for gross proceeds of ~$357 mln (US$330.5 mln) (BTE) :

  • Co announces that it has entered into an agreement to sell its North Dakota assets to SM Energy Co, effective July 1, 2014, for gross proceeds of ~ $357 mln (US$330.5 mln).
  • The transaction is expected to close toward the end of the third quarter with after tax net proceeds from the sale, estimated at $275 mln, to be applied against outstanding bank indebtedness. Production from the Assets averaged ~3,200 boe/d in Q2 of 2014. As of Dec 31, 2013, the Assets were estimated to have proved plus probable reserves of 53.5 mln boe (81% oil and NGL). 
  • The disposition proceeds represent attractive metrics of $111,600 per flowing boe (based on Q2 2014 production) and $20.09 per boe of proved plus probable reserves (including future development costs of $718 mln).
  • "This divestiture follows a portfolio review of our assets that was initiated late in the second quarter, in anticipation of the Eagle Ford transaction. "
  • "During this review, we identified assets representing 5% to 10% of our production that are not likely to command capital going forward given our plans to direct capital to the highest rate of return projects in our portfolio."
  • "We will continue to assess the market for any future divestitures."

5:16 pm CONSOL Energy announced the pricing of an additional $250 mln of its 5.875% senior notes due 2022 at a price equal to 102.75% of the principal amount of the Additional Notes. The offering was upsized from the previously announced $200 million (CNX) :

  • Co announced the pricing of an additional $250 mln of its 5.875% senior notes due 2022 at a price equal to 102.75% of the principal amount of the Additional Notes.
  • The offering was upsized from the previously announced $200 mln aggregate principal amount.
  • The offering is expected to close on August 12, 2014, subject to the satisfaction of customary closing conditions. CONSOL initially offered and sold $1.6 billion aggregate principal amount of notes of the same series on April 16, 2014.

5:12 pm Community Trust Bancorp increases quarterly dividend 3.5$ to $0.30 from $0.29 per share (CTBI) :  

5:08 pm Sturm Ruger misses by $0.11, misses on revs; declares dividend of $0.45 per share; Board expands share repurchase authorization to $100 mln from $25 mln (RGR) : Reports Q2 (Jun) earnings of $1.12 per share, $0.11 worse than the Capital IQ Consensus Estimate of $1.23; revenues fell 14.4% year/year to $153.66 mln vs the $168.73 mln consensus. New products represented $57.1 million or 18% of firearm sales in the first half of 2014.

  • The company also announced that its Board of Directors declared a dividend of 45 per share for the second quarter, for shareholders of record as of August 15, 2014, payable on August 29, 2014. This dividend varies every quarter because the Company pays a percent of earnings rather than a fixed amount per share. This dividend is approximately 40% of net income.
  • In addition, the Company announced that its Board of Directors expanded its authorization to repurchase shares of its common stock from $25 million to $100 million.

5:08 pm Dejour's Roan Creek recoverable resource estimate pegged at 67.5 BCFe gas (DEJ) :

  • Co announces receipt of an assessment of contingent and prospective recoverable resources effective July 1, 2014 for the Co's 100% WI resource project covering 1960 net acres at Roan Creek in the SW Piceance Basin. Logistically Roan Creek is easily accessed, being central among 28 new Mancos vertical and horizontal producers in the SW Piceance. Dejour has proceeded with an application for drilling as part of its expected 2015-16 development campaign.
  • The Co is encouraged by production profiles of these recently drilled Mancos/Niobrara wells that show expected recoveries as much as 6 BCF per Hz well in the Mancos alone at depths to 8500'.
  • "Receipt of the Gustavson report of estimated recoverable resources at Roan Creek is very timely for Dejour as it provides both a detailed analysis of the production potential associated with our leasehold and validates our belief in the long-term value of the Mancos/ Niobrara.
  • Given favorable commodity pricing, and, when coupled with our current Kokopelli JV activity, the Co is well positioned to exploit the prolific Mancos/ Niobrara to further enhance to its Colorado reserve base," states Robert L. Hodgkinson, CEO.

5:06 pm Cousins Prop beats by $0.03, beats on revs (CUZ) : Reports Q2 (Jun) funds from operations of $0.20 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.17; revenues rose 98.8% year/year to $84.5 mln vs the $78.44 mln consensus.

  • "We took advantage of our recovering Sunbelt office markets by signing a significant number of new leases during the second quarter at improving economics to us," said Larry Gellerstedt, President and Chief Executive Officer of Cousins. "In addition, our pending purchase of Fifth Third Center is an exceptional strategic fit for us. We are purchasing this Class A office tower below replacement cost and with a real value creation opportunity through the lease-up of vacant space."

5:04 pm NewMarket elects Thomas E. Gottwald as Chairman of the Board (NEU) : Co announced that the Board of Directors has elected Thomas E. Gottwald to serve as Chairman of the Board of Directors. Thomas E. Gottwald has served as a Director since 1994 and as President and Chief Executive Officer since March, 2004. He will succeed Bruce C. Gottwald who is retiring from his duties as Chairman of the Board. Mr. Bruce C. Gottwald will continue to serve as a member of the Board. The Company also announced that Charles B. Walker has been elected as Independent Lead Director.

5:02 pm Marlin Business Services Board authorizes $15 mln stock repurchase program (MRLN) : Co announced that its Board of Directors has authorized a stock repurchase program of up to $15 million of its outstanding shares of common stock, replacing the stock repurchase program established in November 2007.

5:00 pm Castlight Health follow up: Beats Q2 estimates; guides Q3/FY14 EPS ~in-line with rev above consensus; COO Womack to step down (CSLT) : Reports Q2 (Jun) adj. loss of $0.21 per share, $0.02 better than the Capital IQ Consensus Estimate of ($0.23); revenues rose 351.9% year/year to $10.53 mln vs the $9.5 mln consensus.  Non-GAAP gross margin for the second quarter of 2014 was 32.6% compared to a gross loss of 63.9% in the second quarter of 2013. 

Co issues guidance for Q3, sees adj. EPS of ($0.21) vs. ($0.21) Capital IQ Consensus Estimate; sees Q3 revs of $11.3-11.6 mln vs. $10.77 mln Capital IQ Consensus Estimate.

Co issues guidance for FY14, sees adj. EPS of ($1.00)-(1.01) vs. ($1.02) Capital IQ Consensus Estimate; sees FY14 revs of $42.6-43.2 mln vs. $40.76 mln Capital IQ Consensus Estimate. 

Castlight Health announced that Randy Womack, chief operating officer, will step down Sept 30, 2014 after nearly four years of service with the company. Mr. Womack's responsibilities will be assumed by other members of Castlight's management team after a seamless transition process is completed. Additionally, Concur CEO Steve Singh has joined Castlight's Board of Directors, effective immediately.

"We ended the second quarter with 130 customers and expanded our Fortune 500 customer list by more than 20 percent. New large customers included Google, Kellogg Company, Texas Instruments and Sprint Corporation, among others. Further, we continue to execute well. We launched 13 additional customers during the second quarter, including CalPERS, and implemented Castlight Pharmacy and Castlight Rewards for 12 existing customers."

5:00 pm JMP Group increases quarterly dividend 20% to $0.06 from $0.05 per share (JMP) :  

5:00 pm Allegion to divest UK Doors & Service Businesses: aims to improve focus in the region (ALLE) :

  • Co announced the signing of a definitive agreement to sell its United Kingdom (:UK) Door businesses to an affiliate of Alcyon Financial Limited, a financial investment firm. The businesses to be sold include the Dor-o-Matic branded automatic door business, the Martin Roberts branded performance steel doorset business and the UK service organization

4:55 pm Green Plains misses by $0.17, misses on revs (GPRE) : Reports Q2 (Jun) earnings of $0.82 per share, $0.17 worse than the Capital IQ Consensus Estimate of $0.99; revenues rose 4.1% year/year to $837.9 mln vs the $887.38 mln consensus. 

"We are pleased to report another strong quarter as ethanol, distillers grains and corn oil set new production records. All of our plants were operating at optimal levels, even as rail transportation continues to impact movement of our products," said Todd Becker, President and Chief Executive Officer. "Market fundamentals are favorable and based on a continuation of these conditions, we expect stronger earnings per share performance in the second half of the year."

During Q2, Green Plains' ethanol production segment produced 241.9 million gallons of ethanol, or ~95.1% of its daily average production capacity. Non-ethanol operating income from the corn oil production, agribusiness, and marketing and distribution segments was $16.5 million in the second quarter of 2014 compared to $17.3 million for the same period in 2013.

4:55 pm Pennsylvania R.E.I.T. and The Macerich Company (MAC) form joint venture to redevelop The Gallery in Philadelphia (PEI) : Co and Macerich Company (MAC) announced a joint venture partnership to redevelop The Gallery in downtown Philadelphia. "Through this partnership, PREIT will capitalize on Macerich's extensive expertise in developing and leasing vertical, multi-use projects in dense, urban environments and Macerich will benefit from PREIT's Philadelphia-area relationships and retail dominance."

  • Under the terms of the agreement, Macerich will acquire a 50% common ownership interest in The Gallery for $106.8 million. Macerich and PREIT will jointly handle the development, leasing and management of The Gallery. Costs related to the future development will be split 50/50 between the companies.

4:54 pm QTS Realty Trust beats by $0.01, reports revs in-line; reaffirms FY14 FFO guidance (QTS) : Reports Q2 (Jun) funds from operations of $0.50 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.49; revenues rose 19.7% year/year to $51.34 mln vs the $50.85 mln consensus.

  • Co reaffirms guidance for FY14, sees FFO of $1.95-2.05 vs. $1.99 Capital IQ Consensus Estimate. 
  • Reported Adjusted EBITDA of $23.3 million in the second quarter of 2014, an increase of 32% compared to the second quarter of 2013. Reported NOI of $33.7 million in the second quarter of 2014, an increase of 25% compared to the second quarter of 2013. 
  • Guidance: QTS is revising its 2014 guidance for Adjusted EBITDA to a range of $97.0 million to $101.0 million. This increase is due to improved core performance and ramping of the New Jersey lease with Atos. QTS is maintaining its 2014 guidance of Operating FFO in the range of $73.0 million to $77.0 million, or Operating FFO per share of $1.95 to $2.05 as the aforementioned increase from improved core performance and the lease with Atos will be offset by incremental interest expense from the transactions QTS has undertaken to fix its interest rates, extend maturities and improve liquidity. QTS is revising its 2014 guidance on development Capital Expenditures to approximate $200 million, largely due to accelerating the build-out of the Dallas-Fort Worth facility.

4:50 pm Pennsylvania R.E.I.T. beats by $0.01, misses on revs; guides FY14 FFO below consensus (PEI) : Reports Q2 (Jun) funds from operations of $0.47 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.46; revenues rose 1.8% year/year to $106.83 mln vs the $112.9 mln consensus.

  • Co issues lowered guidance for FY14, sees FFO of $1.86-1.89 from $2.00-2.04 vs. $1.98 Capital IQ Consensus Estimate. 
  • "Our revised guidance incorporates the following assumptions, among others: 2014 Same Store NOI growth in the range of 2.0% to 2.4%, excluding lease termination revenue; Provisions for employee separation expense, loss on hedge ineffectiveness and acquisition costs as set forth above; Expected dilution of $0.03 per share resulting from the Gallery transaction with Macerich; Our guidance does not contemplate any other material property dispositions or acquisitions Conference Call Information."

4:48 pm ZELTIQ Aesthetics beats by $0.21, beats on revs; guides FY14 revs above consensus (ZLTQ) : Reports Q2 (Jun) earnings of $0.07 per share, $0.21 better than the Capital IQ Consensus Estimate of ($0.14); revenues rose 79.1% year/year to $47.1 mln vs the $34.93 mln consensus.

  • Systems Shipped: 208 systems shipped, compared to 136 systems in Q2 2013, bringing total system installed base to 2,562 systems.

  • Gross Margin: Gross profit was $33.4 million, or 71% of revenue, for the second quarter 2014, compared to gross profit of $18.5 million, or 70% of revenue, for the second quarter 2013.

  • Guidance: Co issues raises guidance for FY14, sees FY14 revs of $160-$165 mln vs. $140.06 mln Capital IQ Consensus Estimate, up from prior guidance of $137-$140 mln.

  • Commentary: "Our second quarter success was driven by increasing CoolSculpting momentum and awareness and can also be attributed to the sales and marketing investments we made in the first quarter, a strong trade show presence and robust customer adoption of our newest applicator, CoolSmooth... As we look to the second half of 2014 and beyond, we believe we have the right strategy in place for robust revenue growth and continued improvements in profitability and cash generation. We remain bullish on our ability to place systems and drive strong utilization for the next several years as we further penetrate the growing non-invasive body contouring market. As well, we are beginning to see the benefits of our various programs through our positive utilization trends from our high margin consumable revenue business..."
Note: Stock is currently halted.

4:46 pm Huron Consulting Correction: Beats Q2 estimates; raises FY14 guidance above consensus (HURN) : Reports Q2 (Jun) earnings of $0.95 per share, excluding non-recurring items, $0.20 better than the Capital IQ Consensus Estimate of $0.75; revenues rose 22.9% year/year to $209.4 mln vs the $193.59 mln consensus.

  • Adjusted EBITDA increased 14.9% to $42.2 million in Q2 2014 compared to $36.7 million in Q2 2013. 
  • Co repurchased 157,850 shares at an average price of $60.40 during Q2, totaling $9.5 million.
Co issues guidance for FY15, raises EPS to $3.25-3.40, excluding non-recurring items, from $3.00-3.20 vs. $3.23 Capital IQ Consensus Estimate; raises FY15 revs to $805-825 mln from $765-795 mln vs. $802 mln Capital IQ Consensus.

4:46 pm Owens-Illinois misses by $0.02, reports revs in-line; guides FY14 EPS in-line (OI) :

  • Reports Q2 (Jun) earnings of $0.80 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.82; revenues rose 0.9% year/year to $1.8 bln vs the $1.79 bln consensus. 
  • Co issues in-line guidance for FY14, sees EPS of $2.85-3.05 vs. $2.96 Capital IQ Consensus Estimate. 
  • "Our performance in the second quarter was in line with our expectations. We are pleased with the positive volume growth we achieved in three of our four regions. Global volumes were up - excluding footprint reductions undertaken in China earlier in the year. Higher profitability in South America, likely a benefit from the World Cup, was modestly overshadowed by supply chain challenges in North America. And in Europe, production downtime associated with engineering activities related to our asset optimization program, as well as furnace rebuilds, mitigated the benefits of higher sales volumes." 
  • Regarding Q3: "We expect demand in Europe and North America to remain stable, yet we anticipate better performance in Europe on higher production volume and asset optimization savings. North America will likely see slightly lower production due to higher planned furnace maintenance. While we lack visibility into post World Cup demand in Brazil, we expect to benefit from volume growth in the Andean countries, as well as the lack of several one-off, unfavorable events in 2013. Our expectations in Asia Pacific remain subdued, with sales declines in China due to our plant closures earlier in the year, and persistently low demand in Australia."

4:45 pm JMP Group evaluating restructuring transaction to become publicly traded partnership (JMP) :

  • Co announced that its board of directors has instructed its management to finalize its due diligence regarding the potential consummation of a transaction whereby co, or "JMP," would enter into a series of related and concurrent internal transactions to convert its corporate form into a limited liability company that would be taxed as a partnership, and not as a corporation, for U.S. federal income tax purposes. 
  • The proposed restructuring transaction would allow co to operate in a more tax-efficient manner compared to its current structure.
  • If the restructuring were to occur, it would be expected that co would be able execute its current business strategy in a manner that would minimize entity-level taxation on its net investment income. 
  • Under such a restructuring plan, co would enter into an agreement and plan of merger with a newly formed, wholly owned limited liability company subsidiary, JMP Group LLC, and a newly formed Delaware corporation and indirect wholly owned subsidiary, JMP Merger Corp. 
  • Subject to final approval of the board of directors and stockholder approval, co would be merged with and into JMP Merger Corp., with JMP Group Inc. continuing as the surviving entity as a direct wholly owned subsidiary of JMP Group LLC (the "Reorganization Transaction").
  • Following the Reorganization Transaction, JMP Group LLC would hold, through its subsidiaries, including JMP, the assets currently held by co.
  • The Reorganization Transaction would have the effect of converting JMP's top-level form of organization from a corporation to a limited liability company, with such conversion treated as a tax-deferred contribution of JMP Group Inc. common stock to JMP Group LLC for federal and state income tax purposes.

4:44 pm Dyax beats by $0.03, beats on revs; raises FY14 revs above consensus (DYAX) : Reports Q2 (Jun) loss of $0.02 per share, $0.03 better than the Capital IQ Consensus Estimate of ($0.05); revenues rose 72.9% year/year to $19.59 mln vs the $13.76 mln consensus. 

  • Co issues raised guidance for FY14, sees FY14 revs of $61-66 mln from $53-59 mln vs. $57.06 mln Capital IQ Consensus Estimate. 
  • Total revenues for the quarter ended June 30, 2014 were $19.6 mln, as compared to $11.3 mln for the comparable quarter in 2013. Included in 2014 revenues were $16.6 mln of KALBITOR net sales, as compared to $8.6 mln for the same period in 2013. For the six months ended June 30, 2014, total revenues were $33.7 mln, compared to $23.4 mln for the same period in 2013. The six-month 2014 revenues included $29.1 mln of KALBITOR net sales, as compared to $17.2 mln in the 2013 period. 
  • Guidance: Revised guidance reflects the expectations that quarterly and annual KALBITOR net sales will fluctuate due to the level of KALBITOR utilization for individual patients. Utilization continues to vary significantly based on fluctuations in the number of HAE attacks and the consistency with which patients treat their HAE attacks with KALBITOR.

4:44 pm Marriott beats by $0.04, reports revs in-line; guides Q3 EPS in-line; guides FY14 EPS in-line (MAR) : Reports Q2 (Jun) earnings of $0.71 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.67; revenues rose 6.8% year/year to $3.48 bln vs the $3.51 bln consensus.

  • Adjusted EBITDA totaled $408 mln, a 10% increase over 2Q13 adjusted EBITDA. 
  • Comparable company-operated house profit margins increased 110 basis points in North America and 80 basis points worldwide in Q2. 
  • Co's adjusted operating income margin increased to 47% compared to 43% in the year-ago quarter. 
Co issues in-line guidance for Q3, sees EPS of $0.59-0.63, excluding non-recurring items, vs. $0.61 Capital IQ Consensus Estimate.

Co issues in-line guidance for FY14, sees EPS of $2.40-2.51 vs prior range of $2.39-2.53, excluding non-recurring items, vs. $2.48 Capital IQ Consensus Estimate. Co expects FY14 adjusted EBITDA will be between $1,465-1,515 mln, an 11-14% increase over the 2013 full year adjusted EBITDA. 

4:42 pm CAI Intl misses by $0.06, misses on revs (CAP) : Reports Q2 (Jun) earnings of $0.63 per share, excluding non-recurring items, $0.06 worse than the Capital IQ Consensus Estimate of $0.69; revenues rose 4.4% year/year to $55.3 mln vs the $56.2 mln consensus.

  • "We have seen a significant increase in demand for containers during the seasonally stronger Q2. During the quarter we leased out 68,000 CEUs of equipment, 31,000 CEUs of which were newly manufactured, most of which occurred during the latter half of the quarter. Pricing during the quarter remained very competitive. We believe this aggressive pricing has hampered the pickup of off-lease depot equipment, with some customers choosing to redeliver older units and lease newly manufactured units at very attractive rates."
  • "While the aggressive pricing environment has created headwinds in our effort to further improve utilization during the second quarter, we have implemented a number of strategies to reduce our long term storage costs and improve overall utilization, including, repositioning assets to higher demand locations, aggressively selling assets where it makes economic sense and re-evaluating how we manage contractual redelivery options."

4:41 pm Highwoods Prop beats by $0.07, beats on revs; guides FY14 FFO in-line (HIW) : Reports Q2 (Jun) funds from operations of $0.80 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.73; revenues rose 15.2% year/year to $152.72 mln vs the $148.22 mln consensus. Co issues in-line guidance for FY14, sees FFO of $2.88-2.94 vs. $2.90 Capital IQ Consensus Estimate.

4:41 pm RadioShack opens 21 interactive remodel stores in San Francisco Bay Area (RSH) : Co is opening 21 new interactive remodel stores in the San Francisco Bay Area. Co began remodeling and opening highly experiential concept stores across the country in July 2013, and has refreshed its more than 4,000 U.S. company-owned stores.

4:40 pm Equity Res beats by $0.01, beats on revs; guides Q3 FFO in-line; guides FY14 FFO in-line (EQR) : Reports Q2 (Jun) normalized funds from operations of $0.78 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.77; revenues rose 5.7% year/year to $652.6 mln vs the $645.58 mln consensus.

Co issues in-line guidance for Q3, sees normalized FFO of $0.77-0.81 vs. $0.80 Capital IQ Consensus Estimate.

Co issues in-line guidance for FY14, sees normalized FFO of $3.08-3.12 vs. $3.09 Capital IQ Consensus Estimate.

4:39 pm AXIS Capital beats by $0.44 (AXS) : Reports Q2 (Jun) operating earnings of $1.63 per share, $0.44 better than the Capital IQ Consensus Estimate of $1.19. Gross premiums written increased 1% to $1.2 bln, with growth of 9% in its reinsurance segment partially offset by a decrease in written premiums of 3% in its insurance segment.

  • Net premiums written increased 1% to $1.0 bln.
  • Co reports growth in diluted book value per common share of 5% to $49.69.
  • Net cash flows from operations of $241 million, compared to $236 mln.
  • Share repurchases during the quarter totaling $139 mln. 

4:39 pm Inphi reports EPS in-line, revs in-line; guides Q3 EPS in-line, revs above consensus (IPHI) : Reports Q2 (Jun) earnings of $0.09 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.09; revenues rose 39.5% year/year to $33.9 mln vs the $33.73 mln consensus.

Co issues guidance for Q3, sees EPS of $0.10-0.12, excluding non-recurring items, vs. $0.10 Capital IQ Consensus; sees Q3 revs of $35.6-37 mln vs. $35.60 mln Capital IQ Consensus Estimate.

4:39 pm USANA misses by $0.14, misses on revs; reaffirms FY14 EPS guidance, revs guidance (USNA) : Reports Q2 (Jun) earnings of $1.36 per share, $0.14 worse than the Capital IQ Consensus Estimate of $1.50; revenues fell 0.4% year/year to $188.3 mln vs the $201.18 mln consensus.

  • Co reaffirms guidance for FY14, sees EPS of $5.50-5.65 vs. $5.66 Capital IQ Consensus Estimate; sees FY14 revs of $770-790 mln vs. $784.99 mln Capital IQ Consensus Estimate. 
  • "During the second quarter, we faced difficult year-over-year comparables, yet generated strong results. We expect our financial performance to accelerate during the second half of 2014, as we execute initiatives to produce world-wide growth and operational efficiency, and we are reiterating our previously issued guidance. We also believe that these initiatives will provide sustainable growth for the Company over the long-term."

4:39 pm Aegerion Pharma beats by $0.03, beats on revs (AEGR) : Reports Q2 (Jun) loss of $0.33 per share, $0.03 better than the Capital IQ Consensus Estimate of ($0.36); revenues rose 453.8% year/year to $36 mln vs the $35.39 mln consensus.

2014 Guidance

  • Aegerion now expects full-year JUXTAPID net product sales to be toward the lower end of the previously stated guidance range of between $180 and $200 million. Aegerion expects total operating expenses, excluding stock-based compensation, of between $145 and $155 million for FY 2014. The Company expects GAAP operating expenses in 2014, including stock-based compensation, to be between $185 and $195 million. The Company expects cash flow positive operations to occur in the second half of 2014.

4:37 pm EQT Midstream Partners announces pricing of $500 mln of senior notes (EQM) : Co announced that it has priced an offering of $500 mln in aggregate principal amount of 4.00% senior notes due August 2024 at a price to the public of 99.422% of their face value. EQT Midstream Partners, LP expects the offering to close on August 1, 2014.

  • The Partnership intends to use the net proceeds from the offering to repay the amounts outstanding under its credit facility and for general Partnership purposes.

4:37 pm Apollo Commercial Real Estate beats by $0.05 (ARI) : Reports Q2 (Jun) earnings of $0.42 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.37.

  • "ARI has had a great start to 2014, with over $733 million of commercial real estate debt investments closed year-to-date," said Stuart Rothstein, Chief Executive Officer of the Company.
  • "Our Manager continues to invest in building out ARI's investment platform and we believe ARI has developed a reputation as a reliable, creative capital provider. The depth of ARI's platform was evidenced during the quarter, as the Co provided full financing solutions to commercial real estate developers and owners."
  • "We continue to see ample investment opportunities for the Co, both within the United States and internationally, and importantly, we believe the credit quality of the Company's investment portfolio remains stable."

4:36 pm Amgen beats by $0.30, beats on revs; guides FY14 EPS above consensus, revs above consensus (AMGN) :

  • Reports Q2 (Jun) earnings of $2.37 per share, $0.30 better than the Capital IQ Consensus Estimate of $2.07; revenues rose 10.7% year/year to $5.18 bln vs the $4.9 bln consensus. 
  • Total product sales increased 8 percent for the second quarter of 2014 versus the second quarter of 2013. The increase was mainly driven by ENBREL, Kyprolis, Prolia and XGEVA. Product sales in the second quarter of 2013 included a positive adjustment of $185 million to previous estimates for managed Medicaid rebates based on claims experience. 
    • ENBREL sales increased 7 percent year-over-year for the second quarter driven mainly by price. ENBREL continues to benefit from strong underlying demand and segment growth. 
    • Kyprolis sales for the second quarter of 2014 were $78 million. The year-over-year comparison is not relevant as Onyx Pharmaceuticals, Inc. (Onyx) was acquired in Q4 of 2013. 
    • Prolia sales increased 40 percent year-over-year for the second quarter driven by higher unit demand from share growth. 
    • XGEVA sales increased 20 percent year-over-year for the second quarter driven by higher unit demand. XGEVA continues to capture share in a growing market despite competition from generic zoledronic acid. 
    • Combined Neulasta (pegfilgrastim) and NEUPOGEN (filgrastim) sales declined year-over-year by 1 percent for the second quarter. 
    • Global Neulasta sales increased 1 percent year-over-year for the second quarter driven by price offset partially by the prior year positive Medicaid rebate estimate adjustment. 
    • Global NEUPOGEN sales decreased 9 percent year-over-year for the second quarter due to the prior year positive Medicaid rebate adjustment. Underlying demand was slightly impacted by short- and long-acting competition in the U.S. and Europe, respectively. 
    • Aranesp (darbepoetin alfa) sales decreased 1 percent year-over-year for the second quarter mainly due to the prior year positive Medicaid rebate estimate adjustment. Underlying demand continues to decrease slightly due to practice patterns in the U.S. and competitive pricing pressures in Europe.
    • EPOGEN (epoetin alfa) sales increased 2 percent year-over-year for the second quarter driven by price, offset partially by the prior year positive Medicaid rebate estimate adjustment. Unit demand continues to be relatively stable. 
    • Sensipar/Mimpara (cinacalcet) sales increased 15 percent year-over-year for the second quarter driven primarily by higher unit demand growth across all regions and price increases in the U.S. 
    • Vectibix (panitumumab) increased 42 percent year-over-year for the second quarter driven by higher unit demand across all regions. 
    • Nplate (romiplostim) increased 12 percent year-over-year for the second quarter driven mainly by higher unit demand and strong market growth across all regions.
Guidance
  • Co issues upside guidance for FY14, sees EPS of $8.20-8.40, excluding non-recurring items, vs. $8.09 Capital IQ Consensus Estimate; sees FY14 revs of $19.5-19.7 bln vs. $19.41 bln Capital IQ Consensus Estimate. CapEx expected to be approx $800 mln.

4:36 pm XPO Logistics beats by $0.07, beats on revs (XPO) : Reports Q2 (Jun) loss of $0.22 per share, $0.07 better than the Capital IQ Consensus Estimate of ($0.29); revenues rose 323.9% year/year to $581.1 mln vs the $527.4 mln consensus. 

  • Adjusted earnings before interest, taxes, depreciation and amortization, a non-GAAP financial measure, was a gain of $14.1 million for the quarter, compared with a loss of $12.4 million for the same period in 2013. 
  • Guidance: The company has raised its full year 2014 financial targets as follows: An annual revenue run rate of more than $3 billion by December 31, up from a prior target of $2.75 billion; and An annual EBITDA run rate of at least $150 million by December 31, up from a prior target of $100 million. 
  • "In the second quarter, we outperformed a favorable brokerage environment and delivered strong results across the board. Our gross revenue, volume, net revenue margin and EBITDA all came in significantly ahead of plan. We reported robust organic growth of 49% company-wide, and in our freight brokerage unit, we generated outsized organic growth of 67%. We accomplished this by capitalizing on our increasing scale and lane density, and by improving the productivity of our sales force."

4:36 pm Cousins Prop announces public offering of 18 mln shares of common stock (CUZ) :

  • Co intends to use the net proceeds of the offering to fund the purchase price of Fifth Third Center, a 698,000 square feet Class-A office building located in the Uptown submarket of Charlotte, North Carolina. 
  • Any remaining proceeds will be used for general corporate purposes, including the acquisition and development of office properties, other opportunistic investments and the repayment of debt.
  • J.P. Morgan will serve as the sole book-running manager for the offering.

4:35 pm Sequenom reports Q2 results, misses on revs (SQNM) : Reports Q2 (Jun) loss of $0.07 per share, which includes a $0.06/share tax benefit. Capital IQ consensus is ($0.11). Revenues rose 62.4% year/year to $39.8 mln vs the $41.4 mln consensus.

  • Gross margin for the second quarter of 2014 was 44% as compared to gross margin of 16% for 2Q13. This improvement is attributable primarily to the increase in collections for tests performed in the current and prior quarters, the change to accrual accounting for certain payors and improved efficiencies in processing patient samples.
     
  • Cash Burn: Cash burn related to continuing operations for 2Q14 was $4.1 mln, compared to $41.5 mln in the same period of 2013 and $18.4 mln in the first quarter of 2014. The cash burn related to continuing operations for the first quarter of 2014, excluding annual royalty payments of $4.8 mln and semi-annual debt service payments of $3.3 mln, was $10.3 mln. 
  • Operational Updates: In the first half of 2014, Sequenom Laboratories accessioned more than 80,000 MaterniT21 PLUS tests, and more than 100,000 total test samples for all its LDTs, compared to 73,000 MaterniT21 PLUS tests and 91,200 tests in total for the first half of 2013.

    The company recently announced a test send-out agreement and a and licensing agreement with Quest Diagnostics for noninvasive prenatal aneuploidy testing, gaining access to its broad physician network in the United States and certain other countries. Sequenom Laboratories anticipates receiving its first samples from Quest Diagnostics sometime in the third quarter.

4:35 pm Wabash Natl misses by $0.02, beats on revs (WNC) : Reports Q2 (Jun) earnings of $0.24 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.26; revenues rose 17.6% year/year to $486 mln vs the $476.25 mln consensus.

"New trailer shipments for the second quarter were approximately 14,950, exceeding our previous guidance of 13,500 to 14,500 trailers, as customer pickups gained significant momentum. We anticipate continued strength in customer demand throughout the remainder of 2014, as total new trailer shipments for the full year are now expected to be in the range of 53,000 to 55,000 units, representing increases of approximately 13 percent to 18 percent from the prior year. Our backlog grew to a cyclical high of $842 million as of June 30, 2014, an increase of $162 million, or 24 percent, from the prior year period. Additionally, current industry forecasts support strong demand levels with projections well above replacement demand and exceeding previous year levels, setting up the potential for 2014 to exceed the record performance achieved last year."

4:34 pm NuVasive beats by $0.03, beats on revs; raises FY14 guidance (NUVA) : Reports Q2 (Jun) adj. earnings of $0.28 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.25; revenues rose 15.1% year/year to $190.7 mln vs the $177.41 mln consensus.

Co issues guidance for FY14, raises EPS to $1.11, excluding non-recurring items, from $1.06 vs. $1.12 Capital IQ Consensus; raises FY14 revs to $745 mln from $725 mln vs. $730.92 mln Capital IQ Consensus Estimate. 

"Strength across our lumbar and biologics products in the U.S. and the continued healthy growth of our international geographies drove results for the quarter as we continued to solidly execute our share-taking strategy. Based on the greater than expected second quarter results and the strong momentum of our minimally invasive lumbar solutions, we are increasing our full year revenue, operating margin and earnings guidance for the year."

4:34 pm Team Health Holdings beats by $0.09, beats on revs; co raises revenue guidance for FY14 (TMH) : Reports Q2 (Jun) earnings of $0.61 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus Estimate of $0.52; revenues rose 16.5% year/year to $675.1 mln vs the $650.29 mln consensus.

  • Co raises FY14 revenue guidance... Projected growth in net revenue for full year 2014 increased to 13.0-14.0%, which includes potential benefits from healthcare reform; which equates to ~$2.69-2.72 bln vs $2.67 bln Capital IQ consensus est, up from growth of +11-12%, which equates to ~$2.65-2.67 bln. No consensus.
  • Same contract revenue increased $43.5 mln, or 8.3%, to $568.3 mln from $524.8 mln in the second quarter of 2013
  • An increase of 8.6% in estimated collections on fee for service visits provided a 6.5% increase in same contract revenue growth between quarters while a 3.2% increase in same contract volumes contributed 2.3% to the growth.
  • Contract and other revenue constrained same contract revenue growth between quarters by 0.5%. Acquisitions contributed $50.6 mln of revenue growth and net new contract revenue increased by $1.2 mln between quarters. 
  • The benefit from Medicaid parity revenue recognized in the second quarter was $8.5 mln, of which $7.0 mln is same contract revenue. Medicaid parity contributed 1.5% to consolidated revenue growth and 1.3% to same contract revenue growth between quarters.

4:34 pm Watts Water Tech. beats by $0.01, beats on revs (WTS) : Reports Q2 (Jun) earnings of $0.69 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.68; revenues rose 8.0% year/year to $396.0 mln vs the $385.9 mln consensus.

4:34 pm Newfield Expl misses by $0.09, reports revs in-line (NFX) : Reports Q2 (Jun) earnings of $0.43 per share, $0.09 worse than the Capital IQ Consensus Estimate of $0.52; revenues rose 39.8% year/year to $608 mln vs the $602.53 mln consensus. 

  • Newfield's net production from continuing operations in the second quarter of 2014 was 12.1 MMBOE, exceeding the mid-point of quarterly guidance by approximately 1.1 MMBOE. Net liftings from discontinued operations totaled approximately 0.04 MMBOE. Domestic liquids production in the second quarter was up 13% compared to the first quarter of 2014 and 40% over the comparable period in 2013. Liquids comprised approximately 55% of total second quarter domestic production.

4:33 pm XPO Logistics to acquire New Breed Logistics and completes acquisition of Atlantic Central Logistics; combined transaction value of ~$652 mln is expected to add more than $660 mln of revenue and $83 mln of EBITDA annually (XPO) : Co announced that it has entered into a definitive agreement to acquire New Breed Holding Company, the preeminent U.S. provider of non-asset based, complex, technology-enabled contract logistics for blue chip customers. The company further announced that it has completed the acquisition of Atlantic Central Logistics, a non- asset based provider of last mile logistics with 14 East Coast locations.

  • Co agreed to acquire New Breed for a purchase price of $615 mln on a cash-free, debt-free basis, and assuming a normalized level of working capital. 
  • At the closing, New Breed's chief executive officer, Louis DeJoy, will use $30 mln of proceeds from the transaction to purchase restricted stock from the company. 
  • New Breed had revenue of ~ $597 mln and adjusted EBITDA of ~ $77 mln for the trailing 12 months ended June 30, 2014. 
  • The value of the transaction represents a consideration of ~ 8.0 times trailing 12 months adjusted EBITDA. 
  • The transaction is expected to close in the third quarter of 2014, subject to Hart- Scott-Rodino clearance and other customary conditions.

4:33 pm Summit Midstream Partners: General Partner of SMLP announces development of new Bakken Shale crude oil pipeline interconnect & storage assets (SMLP) : Summit Midstream Partners, the privately held co that owns and controls the general partner of SMLP and also owns a 56.7% limited partner interest in SMLP, provided a commercial update for its wholly owned operating subsidiaries, Meadowlark Midstream and Epping Transmission. Meadowlark is composed of the Divide Crude Oil & Water Gathering System and the Polar Crude Oil & Water Gathering System, both of which are located in the Bakken Shale Play in North Dakota, and the Niobrara Gathering & Processing System which is located in the Denver-Julesburg Basin in Weld County, CO. Epping Transco is a newly formed subsidiary that will own and operate the Little Muddy Interconnect.

  • Epping Transco announced that it has reached an agreement with North Dakota Pipeline, an affiliate of Enbridge Energy Partners (EEP), on a new crude oil interconnect agreement pursuant to which Epping Transco will interconnect with and deliver certain of the crude oil gathered on Meadowlark's Polar and Divide systems into Enbridge's North Dakota System. The Little Muddy Interconnect will provide customers on the Polar and Divide systems with increased optionality in accessing downstream markets with up to 55,000 BPD of incremental pipeline throughput capacity. 
  • In connection with the Little Muddy Interconnect and the Basin Transload interconnect announced in June 2014, Meadowlark will expand its Epping Crude Oil Storage Facility and Divide Crude Oil Storage Facility to offer additional crude oil storage services to its customers. Epping Storage will receive crude oil from the Polar and Divide systems and will also include a truck unloading rack. Divide Storage will receive crude oil from the Divide System and will also include a multi-bay truck unloading rack. Epping Storage and Divide Storage will each have 75,000 barrels of crude oil storage capacity, initially, and both facilities will have the ability to accommodate additional crude oil storage tanks for future potential expansions.

4:32 pm Sprague Resources declares quarterly cash distribution of $0.4275 per unit, representing a 3.6% increase over the distribution declared for quarter ended March 31, 2014 of $0.4125 per unit (SRLP) :  

4:32 pm Cloud Peak Energy beats by $0.04, misses on revs (CLD) : Reports Q2 (Jun) earnings of $0.01 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of ($0.03); revenues fell 2.8% year/year to $320.9 mln vs the $333.1 mln consensus.

  • During Q2, domestic coal market fundamentals continued to be favorable, but the lingering performance issues with the western railroads have forced several utilities to conserve coal during the quarter in anticipation of normal summer burn requirements. Even with utilities conserving coal, inventories are at the lowest levels in many years. Due to a slow start to the summer cooling season and increased gas production, natural gas storage is recovering from very low levels at the end of the winter. Natural gas prices have remained consistently above $3.50/mmBtu, making PRB coal economic where it is available.

4:31 pm Landec misses by $0.01, beats on revs (LNDC) : Reports Q4 (May) earnings of $0.17 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.18; revenues rose 12.9% year/year to $120.9 mln vs the $112.45 mln consensus. 

  • Looking to fiscal 2015, we expect Landec consolidated revenues to increase 7-8% compared to fiscal 2014 and surpass $0.5 billion in revenues for the first time in Landec's history (consensus calls for $468.3 mln). 
    • We expect net income to be flat as we make significant investments in marketing and sales, labor, produce sourcing and capital for future growth. 
    • For Apio, we expect revenues to grow 9-10% and operating income to grow 25-30%. 
    • For Lifecore, we expect revenues to be down 5-10% and operating income to be down 30-35% as a result of the one-time inventory reduction during fiscal 2015 by one of Lifecore's customers. 
  • Looking forward to fiscal 2016, we anticipate the Lifecore customer who is reducing their inventory levels in fiscal 2015 will resume their historical order patterns in fiscal 2016. We also anticipate Windset will begin expanding its operations again and we believe our new Apio products will continue to expand and grow. 
  • As a result, we believe consolidated revenues could grow by as much as 10% (consensus is for +6.7%) in fiscal 2016 compared to fiscal 2015 with early estimates of net income increasing by up to 40% to approximately $1.00 per share (consensus is currently $0.73).

4:31 pm Express Scripts beats by $0.01, beats on revs; guides Q3 EPS in-line; narrows FY14 EPS in-line (ESRX) : Reports Q2 (Jun) earnings of $1.23 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $1.22; revenues fell 4.8% year/year to $25.11 bln vs the $24.41 bln consensus. Adjusted claims were 324.5 mln. The company repurchased 29.9 million shares of common stock for $2,191.6 million during the quarter, leaving 42.9 million shares available under the current repurchase program.

Co issues in-line guidance for Q3, sees EPS of $1.27-1.31, excluding non-recurring items, vs. $1.28 Capital IQ Consensus Estimate. Sees adjusted claims of 315-335 mln.

Co issues in-line guidance for FY14, sees EPS of $4.84-4.92, excluding non-recurring items, (narrowed from $4.82-4.94) vs. $4.86 Capital IQ Consensus Estimate.

  • "Due to the dynamics of the market, the retention rate for 2015 is expected to be in the range of 92-93%. This retention rate combined with strong organic growth and new sales will result in expected claims volume slightly down to down 1.5% in 2015. We expect that future organic earnings growth will come from several drivers, of which script volume is just one component. Other drivers include generic conversions, specialty pharmacy, formulary management, clinical programs and home delivery. All of these levers will drive EBITDA and earnings growth in the future."

4:31 pm Black Box misses by $0.02, beats on revs; guides Q2 EPS below consensus, revs in-line; reaffirms FY15 EPS guidance; slightly raises FY15 rev guidnace (BBOX) : Reports Q1 (Jun) earnings of $0.41 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.43; revenues fell 0.7% year/year to $245.2 mln vs the $241.78 mln consensus.

  • Co issues guidance for Q2, sees EPS of $0.50-0.55, excluding non-recurring items, vs. $0.59 Capital IQ Consensus Estimate; sees Q2 revs of $250-255 mln vs. $251.67 mln Capital IQ Consensus Estimate. 
  • Co issues guidance for FY15, reaffirms EPS of $2.07-2.27, excluding non-recurring items, vs. $2.17 Capital IQ Consensus Estimate; raises FY15 revs to $990 mln - 1.01 bln from $985 mln-1.005 blnvs. $994.47 mln Capital IQ Consensus Estimate. 
  • Cash flow used for operations was $5.9 million compared to cash flow provided by operations of $20.5 million for the same period last year and cash flow provided by operations of $28.4 million in the sequential period.

4:31 pm RPX beats by $0.03, reports revs in-line; guides Q3 revs below consensus; guides FY14 revs in-line (RPXC) : Reports Q2 (Jun) earnings of $0.24 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.21; revenues rose 16.9% year/year to $64.3 mln vs the $63.67 mln consensus. Co issues downside guidance for Q3, sees Q3 revs of $63.1-63.8 mln vs. $68.14 mln Capital IQ Consensus Estimate. Sees net income in the range of $12.0-12.6 mln. Co issues in-line guidance for FY14, sees FY14 revs of $254-268 mln vs. $263.64 mln Capital IQ Consensus Estimate. Co sees net income in the range of $53-57 mln.

4:31 pm Covisint misses by $0.05, reports revs in-line (COVS) : Reports Q1 (Jun) loss of $0.23 per share, excluding non-recurring items, $0.05 worse than the Capital IQ Consensus Estimate of ($0.18); revenues fell 10.4% year/year to $21.6 mln vs the $21.8 mln consensus. 

  • Subscription and support revenue was $15.5 million, a decline of 3% year-over-year. Services revenue was $6.1 million, a decline of 26% year-over-year. Total revenues were $21.6 million, a decline of 10% year-over-year.

4:31 pm InterActiveCorp acquires The Princeton Review; terms of the deal were not disclosed (IACI) :

  • Services of the combined co are expected to be offered to consumers primarily under The Princeton Review brand with Tutor.com used for certain institutional clients.

4:29 pm Newfield Expl signs agreement to sell its Granite Wash assets for $588 mln (NFX) : Co announced the signing of a $588 million purchase and sale agreement for its Granite Wash assets to Oklahoma City-based Templar Energy. The sale will have an effective date of July 1, 2014, and is expected to close in the third quarter of 2014.

  • Newfield's assets in the Granite Wash include ~42,000 net acres and current net daily production is nearly 65 MMcfe/d, of which approximately 60% is natural gas. Proved net reserves at year-end 2013 were ~38 MMBOE. 
  • Newfield intends to use the proceeds from this sale to call its 71/8% Senior Subordinated Notes due in 2018.

4:28 pm Trinity Industries beats by $0.25, beats on revs; guides FY14 EPS above consensus (TRN) : Reports Q2 (Jun) earnings of $1.01 per share, $0.25 better than the Capital IQ Consensus Estimate of $0.76; revenues rose 39.3% year/year to $1.49 bln vs the $1.35 bln consensus. Co issues upside guidance for FY14, sees EPS of $3.90-4.10 vs. $3.76 Capital IQ Consensus Estimate and vs prior guidance of $3.50-3.75.

  • In Q2, its Rail Group segment reported record revenue of $895.6 million and a record operating profit of $176.0 million...The Rail Group shipped 7,160 railcars and received orders for 9,880 railcars during Q2. The Rail Group backlog increased to a record $5.5 bln at June 30, representing a record 45,350 railcars, compared to a backlog of $5.2 bln as of March 31, representing 42,630 railcars.

4:28 pm Compuware reports EPS in-line, revs in-line; Co is seeing positive metrics across the board for Q2 and the rest of the fiscal year (CPWR) : Reports Q1 (Jun) earnings of $0.05 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of $0.05; revenues fell 3.7% year/year to $164.5 mln vs the $165.59 mln consensus.

  • "We are experiencing solid business momentum and are seeing positive metrics across the board for Q2 and the rest of the fiscal year," said Compuware CEO Bob Paul. "Additionally, our cost rationalization and business transformation efforts continue to progress well, and our previously announced strategic- and shareholder-value initiatives remain on track with the Board remaining committed to reviewing and evaluating credible opportunities to create additional value for shareholders."

4:28 pm Healthcare Trust of America reports FFO in-line; Rental income increased 15.5% to $88.9 mln (HTA) : Reports Q2 (Jun) normalized funds from operations of $0.18 per share, in-line with the Capital IQ Consensus Estimate of $0.18. Rental income increased 15.5% to $88.9 mln for the three months ended June 30, 2014, compared to $77.0 mln for the three months ended June 30, 2013. The increase in rental income was primarily driven by $515.2 mln of acquisitions since June 30, 2013 and same-property growth.

  • Same-Property Cash NOI increased 3.1% to $53.8 mln for the three months ended June 30, 2014, compared to $52.2 mln for the three months ended June 30, 2013.
  • During the quarter, HTA acquired $211.5 mln of medical office buildings (96% leased and approximately 484,000 square feet of GLA). The acquisitions include properties located in the key markets of Boston, Miami and Raleigh. 

4:27 pm Associated Estates misses by $0.01, misses on revs; guides FY14 FFO in-line (AEC) : Reports Q2 (Jun) funds from operations of $0.31 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.32; revenues rose 10.1% year/year to $47.9 mln vs the $48.67 mln consensus. Co issues in-line guidance for FY14, sees FFO of $1.26-1.30 vs. $1.28 Capital IQ Consensus Estimate.

4:27 pm FARO Techs beats by $0.04, beats on revs (FARO) : Reports Q2 (Jun) earnings of $0.36 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.32; revenues rose 20.2% year/year to $82.1 mln vs the $77.55 mln consensus. 

  • New order bookings for the second quarter of 2014 increased $17.2 million, or 25.7%, to $83.9 million from $66.7 million in the second quarter of 2013. 
  • Gross margin of 55.5% increased 150 basis points from the second quarter of 2013 primarily driven by more favorable metrology product margin resulting from manufacturing efficiency gains.

4:26 pm ExamWorks beats by $0.05, beats on revs; guides Q3 revs above consensus; raises FY14 revs above consensus (EXAM) : Reports Q2 (Jun) GAAP earnings of $0.09 per share, $0.05 better than the GAAP Capital IQ Consensus Estimate of $0.04; revenues rose 25.8% year/year to $196.45 mln vs the $184.17 mln consensus.

  • Co issues upside guidance for Q3, sees Q3 revs of $194-200 mln vs. $178.50 mln Capital IQ Consensus Estimate.  Q3 Guidance: Third quarter 2014 reported adjusted EBITDA margin is expected to range between 17.2% and 17.6% of reported revenues. 
  • Co issues raised guidance for FY14, sees FY14 revs of +22.5-24.5% to ~$754.6-766.9 mln from $702.2-714.6 mln vs. $717.38 mln Capital IQ Consensus Estimate. FY14 Guidance: Organic growth, on a constant currency basis, is now expected to range between 9% and 11%, with the balance of our growth coming from acquisitions completed to date. Our full year adjusted EBITDA margin is now expected to range between 16.75% and 17.75% of reported revenues.
  • Adjusted EBITDA for the second quarter of 2014 was $34.6 million (17.6% of revenues), an increase of $9.6 million, or 38.4%, over the year-ago quarter adjusted EBITDA of $25.0 million. Adjusted EBITDA is a non-GAAP measure that is described and reconciled to net income (loss) below and is not a substitute for the GAAP equivalent.

4:26 pm C.H. Robinson beats by $0.04, reports revs in-line (CHRW) : Reports Q2 (Jun) earnings of $0.80 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.76; revenues rose 6.5% year/year to $3.5 bln vs the $3.51 bln consensus.

4:26 pm Exco Resources misses by $0.01, beats on revs (XCO) : Reports Q2 (Jun) earnings of $0.03 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.04; revenues rose 21.8% year/year to $183 mln vs the $179.01 mln consensus.

Operations activity and outlook

  • Drilled 32 gross (9.9 net) and completed 25 gross (7.9 net) operated horizontal shale wells in the second quarter 2014.
  • "We spent $78 million on development activities, drilling 32 gross (9.9 net) operated wells and completing 25 gross (7.9 net) operated wells in Q2 2014. Our development program during 2014 is focused on our properties in the Haynesville and Eagle Ford shales. In June 2014, our board of directors approved an increase to our capital budget of up to $80 million for the remainder of the year. This allows us the flexibility to modify our drilling program in the Haynesville and Eagle Ford shales if opportunities arise to maximize our returns or further evaluate other formations."
  • "We continue to evaluate industry trends, commodity prices, and internal operational and financial analyses to assess potential modifications to our drilling program. We remain focused on efficiently managing our capital expenditures as part of our development program. We will incorporate any additional development into our hedging strategy and may enter into additional derivative contracts to protect our return on investment. The additional development as a result of our ability to increase our capital expenditures will not result in significant production volumes until 2015 based on the timing of wells turned-to-sales."

4:25 pm Cempra beats by $0.06, misses on revs (CEMP) : Reports Q2 (Jun) loss of $0.49 per share, $0.06 better than the Capital IQ Consensus Estimate of ($0.55); revenues fell 58.4% year/year to $1.9 mln vs the $2.23 mln consensus.

Clinical program update: The company is focused on the development of its two lead clinical-stage antibiotic candidates, the fluoroketolide, solithromycin, and Taksta, the oral antibiotic being developed for staphylococcal infections. The company expects the following events to occur:

  • Solithromycin 
    • 4Q 2014: Completion of SOLITAIRE-Oral Phase 3 patient enrollment 
    • 2H14: Initiate SOLITAIRE-U, our uncomplicated gonorrhea Phase 3 study 
    • 2H14: Initiate NAIAD-funded urogenital solithromycin PK study 2H14: Initiate dosing of investigator-sponsored Phase 2 study in COPD 
    • 1Q 2015: Report top-line data from SOLITAIRE-Oral Phase 3 
  • Taksta
    • 2H14: Meet with the FDA to define pivotal study for Taksta

4:24 pm M/A-COM Tech reports EPS in-line, beats on revs; guides Q4 in-line (MTSI) : Reports Q3 (Jun) adj. earnings of $0.32 per share, in-line with the Capital IQ Consensus Estimate of $0.32; revenues rose 34.6% year/year to $112.4 mln vs the $110.49 mln consensus.

Co issues in-line guidance for Q4, sees adj. EPS of $0.31-0.34 vs. $0.33 Capital IQ Consensus Estimate; sees Q4 revs of $112-116 mln vs. $113.09 mln Capital IQ Consensus Estimate.

4:24 pm Rogers Corp beats by $0.02, reports revs in-line; guides Q3 EPS below consensus, revs in-line (ROG) : Reports Q2 (Jun) earnings of $0.58 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.56; revenues rose 15.8% year/year to $153.5 mln vs the $153.5 mln consensus.

Co issues mixed guidance for Q3, sees EPS of $0.65-0.75 vs. $0.86 Capital IQ Consensus Estimate; sees Q3 revs of $153-159 mln vs. $156.20 mln Capital IQ Consensus Estimate.

4:24 pm Corp. Exec. Board beats by $0.04, reports revs in-line; guides FY14 EPS in-line, revs in-line (CEB) : Reports Q2 (Jun) earnings of $0.75 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.71; revenues rose 12.6% year/year to $230.4 mln vs the $229.39 mln consensus. Co issues in-line guidance for FY14, sees EPS of $3.15-3.40, excluding non-recurring items, vs. $3.24 Capital IQ Consensus Estimate; sees FY14 revs of $910-935 mln vs. $917.87 mln Capital IQ Consensus Estimate.

4:24 pm Gas Natural announces extensions of market-based utility rates in Maine and North Carolina; alternative rate plan structure which will be effective for seven years; effect on annual earnings per share is an estimated $0.03 (EGAS) : Co announced that the utility regulators in Maine and North Carolina have agreed not to seek a change in the Company's current market-based rate structures in those states. In addition to the alternative rate plan structure which will be effective for seven years, the Company is working with the Staff on implementing service-related standards.

  • The North Carolina regulatory assets account will be amortized over a sixty-month period beginning July 1, 2014, coincident with the settlement agreement. The effect on annual earnings per share is an estimated $0.03. The remaining $1.35 mln deferred gas cost account balance which arose from winter 2014 gas purchases will continue to be recovered through an existing surcharge and the wholesale gas cost benchmark in rates.

4:23 pm Cray beats by $0.08, beats on revs; guides Q3 revs below consensus; guides FY14 revs in-line (CRAY) : Reports Q2 (Jun) loss of $0.22 per share, $0.08 better than the Capital IQ Consensus Estimate of ($0.30); revenues rose 0.7% year/year to $85.1 mln vs the $74.8 mln consensus.

  • Outlook: Co states, "For 2014, while a wide range of results remains possible, the company anticipates revenue to be in the range of $600 million for the year and, as previously indicated, to be heavily weighted to the fourth quarter as has been typical in recent years. Non-GAAP gross margin for 2014 is anticipated to be in the mid-30% range. Total non-GAAP operating expenses for the year are anticipated to be about $175 mln. Based on this outlook, the company expects to be profitable on both a GAAP and non-GAAP basis for 2014."
  • Guidance: Co issues downside guidance for Q3, sees Q3 revs of $125 mln vs. $156.48 mln Capital IQ Consensus Estimate. Co issues in-line guidance for FY14, sees FY14 revs of $600 mln vs. $599.54 mln Capital IQ Consensus Estimate.

4:22 pm Tyco to seek shareholder approval of proposed change in place of incorporation to Ireland (TYC) : Co announced that it has filed a definitive proxy statement with the SEC in connection with its previously announced proposal to change the co's place of incorporation from Switzerland to Ireland. The co will seek shareholder approval of the proposal, along with related matters, at a special general meeting of shareholders scheduled for Sep 9, 2014, at 3:00 p.m. Central European Time at its global headquarters.

4:22 pm Anadarko Petroleum beats by $0.03, beats on revs; see 16:05 post for guidance (co raises sales volume guidance in that release) (APC) : Reports Q2 (Jun) earnings of $1.32 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $1.29; revenues rose 26.9% year/year to $4.44 bln vs the $4.09 bln consensus. 

  • See our 16:05 post. APC provided production guidance in a separate press release

4:22 pm CBL & Assoc beats by $0.02, reports revs in-line; reaffirms FY14 FFO guidance (CBL) : Reports Q2 (Jun) funds from operations of $0.55 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.53; revenues rose 0.5% year/year to $256.9 mln vs the $257.38 mln consensus. Co reaffirms guidance for FY14, sees FFO of $2.22-2.26 vs. $2.25 Capital IQ Consensus Estimate.

4:21 pm Invesco Mortgage Capital beats by $0.02 (IVR) : Reports Q2 (Jun) core earnings of $0.50 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.48.

  • As of June 30, 2014, the Company's mortgage-backed securities portfolio was $18.2 billion, an increase of $712.6 million from March 31, 2014.

4:21 pm Edwards Lifesciences beats by $0.11, beats on revs; guides Q3 EPS below consensus, revs above consensus; guides FY14 EPS above consensus, revs above consensus (EW) : Reports Q2 (Jun) earnings of $0.88 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus Estimate of $0.77; revenues rose 11.2% year/year to $575.1 mln vs the $544.3 mln consensus. Co issues mixed guidance for Q3, sees EPS of $0.66-0.72, excluding non-recurring items, vs. $0.74 Capital IQ Consensus Estimate; sees Q3 revs of $530-570 mln vs. $525.9 mln Capital IQ Consensus Estimate. Co issues upside guidance for FY14, sees EPS of $3.24-3.34, excluding non-recurring items, vs. $3.17 Capital IQ Consensus Estimate; sees FY14 revs at high end of  prior guidance of $2.05-2.25 bln vs. $2.17 bln Capital IQ Consensus Estimate.

4:21 pm Ameriprise Financial beats by $0.07, beats on revs (AMP) : Reports Q2 (Jun) earnings of $2.08 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus Estimate of $2.01; revenues rose 11.7% year/year to $3.07 bln vs the $2.97 bln consensus.

4:20 pm RingCentral beats by $0.01, beats on revs (RNG) : Reports Q2 (Jun) loss of $0.14 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of ($0.15); revenues rose 40.1% year/year to $52.8 mln vs the $51.05 mln consensus. 

  • "In addition, our plans to expand our presence with larger businesses are paying off. Our biggest customer deployment has now exceeded 1,200 users, further validating the robustness of our platform and go-to-market strategy. We are also proud to announce an agreement with BT to distribute our solutions in the UK. This is yet another strong testament to the unique value provided by RingCentral and our ability to deliver our cloud service internationally."

4:20 pm Closing Market Summary: Stocks Slip Amid Escalating Sanctions Against Russia (:WRAPX) : The stock market ended the Tuesday session on a lower note after generally upbeat earnings took the back seat to geopolitical concerns. The S&P 500 (-0.5%) and Nasdaq Composite (-0.1%) ended on their lows, while the Russell 2000 (+0.3%) displayed relative strength.

Once again, market participants were focused on quarterly reports in the early going, but geopolitical worries overshadowed the impact of mostly better than expected earnings. Specifically, equities retreated after it was reported that European EU officials have prepared the new set of sanctions against Russia. The imposition of new sanctions may pique concerns about a boomerang effect on the global economy, and Europe in particular, but it is worth noting that the Russian ruble and Market Vectors Russia ETF (RSX 23.85, -0.50) strengthened in reaction to the news.

The reports of forthcoming sanctions were followed by afternoon headlines from Washington indicating the Treasury Department has added VTB, the Bank of Moscow, and Russian Agriculture Bank to the sanction list. After the news crossed the wires, the RSX and the ruble dropped to fresh lows, as did the S&P 500.

Nine of ten sectors registered losses with the industrial space (-1.2%) spending the day at the bottom of the leaderboard. The sector was pressured by transport stocks after UPS (UPS 98.86, -3.80) reported disappointing results and guided lower. For its part, the Dow Jones Transportation Average logged its fourth consecutive loss, tumbling 1.4% with 17 of its 20 components ending in the red.

Unlike the industrial sector, other cyclical groups fared a bit better. Financials (-0.6%) and materials (-0.7%) lagged, while consumer discretionary (-0.3%) and technology (-0.2%) displayed relative strength.

In the discretionary sector, Honda Motor (HMC 36.02, +0.84) advanced 2.4% after reporting a slim earnings beat. The carmaker underpinned the sector, which also drew strength from retailers. The SPDR S&P Retail ETF (XRT 84.24, 0.00) ended flat.

Elsewhere, the relative strength of the technology sector kept the broader market from sliding deeper into the red. High-beta chipmakers contributed to the outperformance with the likes of AMD (AMD 3.79, +0.06), Broadcom (BRCM 37.99, +0.27), and Taiwan Semiconductor (TSM 20.55, +0.18) adding between 0.7% and 1.6%.

Similarly, biotech companies also rallied with the iShares Nasdaq Biotechnology ETF (IBB 254.78, +2.87) ending higher by 1.1%. Meanwhile, the health care sector settled flat.

On the upside, only one sector finished in the green. Telecom services (+2.2%) rallied after Windstream (WIN 11.83, +1.30) was cleared by the Internal Revenue Service to spin off its assets into a publically-traded REIT. Peers AT&T (T 36.59, +0.94) and Verizon (VZ 51.97, +0.39) gained 2.6% and 0.8%, respectively on speculation they could also explore conversions into REITs.

On the fixed income side, Treasuries ended the session with modest gains that pressured the 10-yr yield lower by two basis points to 2.46%.

Participation was on the light side with 615 million shares changing hands at the NYSE.

Economic data was limited to the Case-Shiller 20-city Index and the Consumer Confidence report:

  • The Case-Shiller 20-city Home Price Index for May rose 9.3%, while a 10.0% increase had been expected by the Briefing.com consensus 
    • This followed the previous month's increase of 10.8% 
  • The Conference Board's Consumer Confidence Index spiked to 90.9 in July from an upwardly revised 86.4 (from 85.2), while the Briefing.com consensus pegged the Index at 85.6
    • Consumer confidence is now at its highest level since October 2007 
    • The Present Situation Index increased to 88.3 from 86.3 and the Expectations Index rose to 92.7 from 86.4 
Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET, while the ADP Employment Change for July (Briefing.com consensus 215K) will be reported at 8:15 ET. The advance reading of Q2 GDP will be released at 8:30 ET (consensus 3.2%), while the FOMC will reveal its latest policy statement at 14:00 ET.
  • S&P 500 +6.6% YTD 
  • Nasdaq Composite +6.4% YTD 
  • Dow Jones Industrial Average +2.0% YTD 
  • Russell 2000 -1.8% YTD

4:18 pm Nutrisystem beats by $0.03, reports revs in-line; guides Q3 revs below consensus; raises low end of FY14 revenue guidance range, raises GAAP EPS guidance (NTRI) : Reports Q2 (Jun) earnings of $0.30 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.27; revenues rose 13.9% year/year to $111.1 mln vs the $111.38 mln consensus.

  • Guidance: Co issues downside guidance for Q3, sees Q3 revs of $85-$90 mln vs. $94.49 mln Capital IQ Consensus Estimate. Sees adjusted EBITDA to be in the range of $8.75-$10.75 mln. The company also expects third quarter 2014 GAAP EPS to be in the range of $0.12 to $0.17. CapIQ Consensus for EPS is $0.22.

    Co raises low end of FY14 revenue guidance range, sees revs of $397-$407 mln, inline with Capital IQ Consensus of $404.68 mln, and vs prior guidance of $392-$407 mln. The company is increasing its annual adjusted EBITDA from a previous range of $40.0-$44.0 mln to be in the range of $41.0-$44.2 mln. In addition, the company is raising its GAAP EPS guidance from a previous range of $0.57 to $0.67 to now be in the range of $0.60 to $0.68 for the full year of 2014.  CapIQ consensus for FY14 EPS is $0.62.

4:17 pm Cincinnati Fincl misses by $0.05, misses on revs (CINF) : Reports Q2 (Jun) operating earnings of $0.46 per share, $0.05 worse than the Capital IQ Consensus Estimate of $0.51; revenues rose 1.8% year/year to $1.12 bln vs the $1.16 bln consensus. 

  • Second-quarter 2014 net income reflected weather effects on property casualty insurance results, including the after-tax impact of a $5 million underwriting loss due to $74 million of natural catastrophe losses with a 45 cent per-share impact. 
  • In the comparable period of 2013, we reported $22 million of underwriting profit with a catastrophe impact of $49 million or 30 cents per share. $38.77 book value per share at June 30, 2014, up 4 percent from December 31, 2013.

4:17 pm Global Payment beats by $0.02, reports revs in-line; guides FY15 EPS in-line, revs in-line; increases share buyback authorization (GPN) : Reports Q4 (May) cash earnings of $1.09 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $1.07; revenues rose 9.0% year/year to $674.0 mln vs the $671.6 mln consensus. Co issues in-line guidance for FY15, sees cash EPS of $4.52-4.62, excluding non-recurring items, vs. $4.57 Capital IQ Consensus Estimate; sees FY15 revs of $2.69-2.76 bln vs. $2.75 bln Capital IQ Consensus Estimate.

  • Co also expands its share repurchase authorization by an incremental $200 mln, bringing its total current authorization to $320 mln.

4:17 pm Ruby Tuesday misses by $0.06, beats on revs (RT) : Reports Q4 (May) earnings of $0.03 per share, excluding non-recurring items, $0.06 worse than the Capital IQ Consensus Estimate of $0.09; revenues fell 2.8% year/year to $307.3 mln vs the $303.8 mln consensus.

Fiscal Year 2015 Outlook

  • Consistent with our fiscal 2014 policy, we are not providing quarterly or annual earnings guidance for FY15.
  • There are, however, certain items which we would like to highlight for fiscal 2015, including the following:
    • Same-Restaurant Sales -- "We anticipate first quarter same-restaurant sales to be in the range of down 1% to up 1%. For the year, we expect same restaurant sales to be flat to up 2%."
    • Unit Development -- "During the year, we plan to open one, rebuild one, and close eight to twelve Company-owned Ruby Tuesday restaurants. Domestic franchisees expect to open two Lime Fresh restaurants and close three Ruby Tuesday restaurants. International franchisees expect to open five to eight Ruby Tuesday restaurants."
    • Restaurant-level Operating Margin -- Estimated to be 15.0-16.0% of sales which compares to 15.1% in FY14. Improvement in cost of goods sold and other restaurant operating costs is expected to be partially offset by increased restaurant payroll costs due to a return to more normalized incentive compensation levels.

4:17 pm InterNAP misses by $0.03, reports revs in-line (INAP) : Reports Q2 (Jun) loss of $0.15 per share, $0.03 worse than the Capital IQ Consensus Estimate of ($0.12); revenues rose 20.1% year/year to $84.07 mln vs the $83.48 mln consensus.

  • "We delivered solid financial results for the second quarter of 2014 driven by strong growth in our core data center services business. The continued execution of our strategy to provide high-performance hybrid Internet infrastructure services is reflected in the revenue growth, segment margin expansion and record adjusted EBITDA margin for the quarter... With greater clarity on the future New York data center migration and IP services segment margin, we move into the second half of 2014 with a simplified focus to leverage our performance-based differentiation in support of long-term profitable growth and stockholder value creation."

4:16 pm Covance beats by $0.02, beats on revs; guides FY14 EPS in-line (CVD) : Reports Q2 (Jun) earnings of $0.95 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.93; revenues rose 6.7% year/year to $687.1 mln vs the $642.23 mln consensus. Co issues in-line guidance for FY14, sees EPS of $3.78-3.92, excluding non-recurring items, vs. $3.83 Capital IQ Consensus Estimate; Co expects revenue growth in the range of 6-8%.

4:16 pm Walker & Dunlop servicing portfolio surpasses $40 bln milestone (WD) : Co announced that its loan servicing portfolio crossed over the $40 billion mark. The portfolio, comprised of over 4,300 commercial loans from across the United States, has an average loan term of over ten years with 84% of the servicing fees protected from the risk of prepayment through make-whole requirements. The mortgage servicing rights related to this portfolio had a fair value of $432 million at June 30, 2014.

4:16 pm Calix Networks beats by $0.09, beats on revs (CALX) : Reports Q2 (Jun) earnings of $0.10 per share, $0.09 better than the Capital IQ Consensus Estimate of $0.01; revenues rose 3.8% year/year to $98 mln vs the $95.51 mln consensus.

4:16 pm Amdocs beats by $0.02, reports revs in-line; guides Q4 in-line (DOX) : Reports Q3 (Jun) earnings of $0.81 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.79; revenues rose 7.3% year/year to $902.5 mln vs the $900.71 mln consensus.

  • Foreign currency movements positively affected revenue by approximately $3 million relative to the second quarter of fiscal 2014. 
  • Non-GAAP operating margin of 16.7%. 
  • Twelve-month backlog of $2.97 bln at the end of the third fiscal quarter, up $30 mln from the end of the second quarter of fiscal 2014. 
  • Free cash flow of $173 million for the third fiscal quarter
Co issues in-line guidance for Q4, sees EPS of $0.75-0.81, excluding non-recurring items, vs. $0.80 Capital IQ Consensus Estimate; sees Q4 revs of $890-920 mln vs. $906.82 mln Capital IQ Consensus Estimate. 

4:15 pm Hansen Medical announces publication of Uterine Artery Embolization results; publication states UAE procedures are feasible and appear to be safe with Magellan robotic system (HNSN) : A study found the use of the Magellan Robotic System in uterine artery embolization, or "UAE", procedures is feasible and appears to be safe. Researchers reviewed the results of five patients treated with robot-assisted UAE over a 10 month period at St. Mary's Hospital, Imperial College London. Lead Investigator Dr. Mohammad Hamady and his colleagues conducted the study to investigate the safety and feasibility of the Magellan 9Fr Robotic Catheter in this complex arterial bed.

All procedures were successfully completed without local puncture site complications or access vessel injuries. Further, robotic bilateral internal iliac artery cannulation was successfully performed in all cases. At the six-month follow-up mark, all patients reported significant improvement in symptoms and quality-of-life.

4:15 pm Digital Realty Trust beats by $0.01, beats on revs; raises FY14 FFO in-line (DLR) : Reports Q2 (Jun) funds from operations of $1.21 per share, $0.01 better than the Capital IQ Consensus Estimate of $1.20; revenues rose 10.5% year/year to $401.5 mln vs the $396.39 mln consensus.

  • Co issues in-line guidance for FY14, raises FFO to $4.85-4.95 from $4.80-4.90 vs. $4.86 Capital IQ Consensus Estimate. 
  • Adjusted EBITDA was $234 million for the second quarter of 2014, consistent with the previous quarter and a 5% increase over the same quarter last year.
  • As of mid-July 2014, the company has achieved the Incremental Revenue from Speculative Leasing target embedded in prior guidance.  The full-year target for Incremental Revenue from Speculative Leasing has been raised by an additional $5-$10 million for the year.  

4:14 pm Fiserv reports EPS in-line, revs in-line; guides FY14 EPS in-line; reaffirms rev growth guidance (FISV) : Reports Q2 (Jun) earnings of $0.81 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of $0.81; revenues rose 4.6% year/year to $1.25 bln vs the $1.25 bln consensus.

  • Co issues in-line guidance for FY14, sees EPS of $3.31-3.37, excluding non-recurring items, vs. $3.35 Capital IQ Consensus Estimate; reaffirms revenue growth in a range of 4-5% and adjusted internal revenue growth of 4-4.5%

4:14 pm Calamos Asset beats by $0.10, misses on revs (CLMS) : Reports Q2 (Jun) earnings of $0.22 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus Estimate of $0.12; revenues fell 5.5% year/year to $63 mln vs the $64.34 mln consensus.

  • Assets Under Management2 were $25.8 billion at June 30, 2014 compared with $26.1 billion at the end of last quarter and $25.8 billion at June 30, 2013. Net outflows were $1.1 billion for the quarter compared with net outflows of $574 million in the previous quarter and net outflows of $2.2 billion in the second quarter of 2013

4:14 pm Verisk Analytics beats by $0.01, reports revs in-line; reaffirms FY14 mid teens growth for Verisk Health (VRSK) : Reports Q2 (Jun) earnings of $0.57 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.56; revenues rose 8.5% year/year to $423.6 mln vs the $422.78 mln consensus. 

"Our second- quarter revenue growth was good, driven by very strong performance in our insurance units. The outlook for our financial business remains excellent, and we continue to expect mid teens growth for Verisk Health for the full year 2014. I am pleased with the efforts of all our people as they work to create the next generation of innovative solutions for our customers. We remain focused on driving long-term organic growth for Verisk and feel good about our asset mix, even as we continue to explore acquisitions that are a strong strategic fit."

4:14 pm Twitter beats by $0.03, beats on revs; guides Q3 revs above consensus, raises FY14 guidance (TWTR) : Reports Q2 (Jun) earnings of $0.02 per share, $0.03 better than the Capital IQ Consensus Estimate of ($0.01); revenues rose 124.0% year/year to $312 mln vs the $283.3 mln consensus. 

  • Twitter reports Q3 Mobile Active Users were 271 mln +24% y/y vs 256.64 mln Briefing.com consensus (5 estimates); Q1 was 255 mln, +25% y/y. 
  • Mobile MAUs reached 211 million in the second quarter of 2014, an increase of 29% year-over-year, representing 78% of total MAUs.
  • Timeline views reached 173 billion for the second quarter of 2014, an increase of 15% year-over-year.
  • Advertising revenue per thousand timeline views reached $1.60 in the second quarter of 2014, an increase of 100% year-over-year. 
Revenue 
  • Mobile advertising revenue was 81% of total advertising revenue.
  • Data licensing and other revenue totaled $35 million, an increase of 90% year-over-year.
  • International revenue totaled $102 million, an increase of 168% year-over-year.
  • International revenue was 33% of total revenue.
Q3 Guidance
  • Co issues upside guidance for Q3, sees Q3 revs of $330-340 mln vs. $323.72 mln Capital IQ Consensus Estimate.
  • Co sees Adjusted EBITDA in the range of $40-45 mln.
FY14 Guidance Raised
  • Sees revenue in the range of $1.31-1.33 bln, Capiutal IQ consensus $1.27 bln (Prior guidance $1.20-1.25 bln)
  • Sees Adjusted EBITDA in the range of $210-230 mln (Prior guidance $180-205 mln)
  • Reiterates CapEx in the range of $330-360 mln

4:13 pm TherapeuticsMD announces $40 mln offering of common stock (TXMD) : Co announced the launch of an underwritten public offering of $40 mln of shares of its common stock. All of the shares in the offering are to be sold by the co. There can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. In addition, the co has granted the underwriters an option for a period of 30 days to purchase, at the public offering price less the underwriting discount, up to an additional $6 mln of shares of its common stock.

Goldman, Sachs & Co. is acting as sole book-running manager for the offering and Noble Capital Markets is acting as co-manager for the offering.

4:12 pm Applied Micro reports EPS in-line, misses on revs (AMCC) : Reports Q1 (Jun) net of breakeven, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of ($0.00); revenues fell 7.2% year/year and fell 3% sequentially to $50.3 mln vs the $52.1 mln consensus.

  • "We are very pleased to report that we have shipped initial production X-Gene units. Purchase orders continue to grow and backlog is building. The creation of the ARM 64-bit based server category is underway."
  • "We experienced strong demand for our connectivity products while we saw a sharp decline in legacy PowerPC embedded products. The contributions of the base business continue to support our growth initiatives."

4:12 pm Move misses by $0.01, misses on revs; guides Q3 revs below consensus; guides FY14 revs below consensus (MOVE) : Reports Q2 (Jun) loss of $0.03 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of ($0.02); revenues rose 6.6% year/year to $61.3 mln vs the $61.95 mln consensus.

  • Co issues downside guidance for Q3, sees Q3 revs of ~$65 mln vs. $68.03 mln Capital IQ Consensus Estimate.
  • Co issues downside guidance for FY14, sees FY14 revs of $252-254 vs. $254.88 mln Capital IQ Consensus Estimate.

4:12 pm Panera Bread beats by $0.08, misses on revs; guides Q3 EPS below consensus; guides Q4 (Dec) EPS below consensus; guides FY14 EPS below consensus (PNRA) : Reports Q2 (Jun) earnings of $1.82 per share, $0.08 better than the Capital IQ Consensus Estimate of $1.74; revenues rose 7.1% year/year to $631.05 mln vs the $639.54 mln consensus. Co reports Q2 2014 Company-owned comparable net bakery-cafe sales up 0.1%.

  • Co issues downside guidance for Q3, sees EPS of $1.40-1.46 vs. $1.53 Capital IQ Consensus Estimate. 
  • Co issues downside guidance for Q4 (Dec), sees EPS of $1.89-1.98 vs. $2.05 Capital IQ Consensus Estimate. 
  • Co issues downside guidance for FY14, sees EPS of $6.65-6.80 vs. $6.86 Capital IQ Consensus Estimate.

4:11 pm Dynamic Materials beats by $0.02, reports revs in-line; guides Q3 revs in-line; reaffirms FY14 revs guidance (BOOM) : Reports Q2 (Jun) earnings of $0.21 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.19; revenues fell 7.4% year/year to $53.6 mln vs the $53.28 mln consensus.

  • Co issues in-line guidance for Q3, sees Q3 revs of +1-3% to ~$54.8-55.9 mln vs. $55.30 mln Capital IQ Consensus Estimate. 
  • Co reaffirms guidance for FY14, sees FY14 revs of +0-4% to ~$209.6-217.9 mln vs. $213.02 mln Capital IQ Consensus Estimate.  
  • Second quarter adjusted EBITDA was $8.6 million versus $9.7 million in the second quarter last year. Adjusted EBITDA is a non-GAAP financial measure used by management to measure operating performance. 

4:11 pm Dreamworks Animation reports Q2 (Jun) results, misses on revs (DWA) : Reports Q2 (Jun) loss of $0.18 per share, may not be comparable to the Capital IQ Consensus Estimate of ($0.02); revenues fell 42.7% year/year to $122.3 mln vs the $138.66 mln consensus. The Company's second quarter 2014 results were impacted by the reduction of the contingent consideration related to its prior acquisition of AwesomenessTV. The estimated fair value of the contingent consideration was reduced by $7.2 million to $91.8 million and resulted in a gain of $0.09 per share in the quarter.

  • The Company's third quarter 2014 results are expected to be driven primarily by its feature film segment, including How to Train Your Dragon 2's continued performance at the worldwide box office. 
  • How to Train Your Dragon 2, which was released theatrically on June 13, 2014, has reached $166 million at the domestic box office and $262 million at the international box office for a worldwide gross of $428 million to date. The film contributed feature film revenue of $2.6 million to the second quarter and remains in an un-recouped position with the Company's primary distributor.

4:10 pm American Express beats by $0.05, reports revs in-line (AXP) : Reports Q2 (Jun) earnings of $1.43 per share, $0.05 better than the Capital IQ Consensus Estimate of $1.38; revenues rose 5.0% year/year to $8.66 bln vs the $8.65 bln consensus. 

  • The company's return on average equity (:ROE) was 28.8%, up from 23.6% a year ago. 
  • Consolidated expenses totaled $5.9 billion, up 2% from $5.7 billion a year ago.
  • U.S. Card Services reported second-quarter net income of $770 million, up 4% from $743 million a year ago. Total revenues net of interest expense increased 6% to $4.5 billion from $4.2 billion a year ago. 
    • The rise largely reflected a 9% increase in Card Member spending and higher net interest income.

4:10 pm Sequenom enters into license agreement with Mayo Medical Laboratories for noninvasive prenatal testing patents and applications; terms not disclosed (SQNM) :  

4:10 pm Vertex Pharm misses by $0.07, beats on revs; reaffirms FY14 non-GAAP rev guidance (VRTX) : Reports Q2 (Jun) loss of $0.61 per share, excluding non-recurring items, $0.07 worse than the Capital IQ Consensus Estimate of ($0.54); revenues fell 55.5% year/year to $138.42 mln vs the $133.26 mln consensus.

  • Vertex's second quarter 2014 net product revenues from KALYDECO were $113.1 million compared to $99.0 million for the second quarter of 2013. The increased revenues, compared to the second quarter of 2013, resulted primarily from KALYDECO label-expansion in the U.S. In the second half of 2014, further growth and achievement of the company's total 2014 net product revenue guidance for KALYDECO is dependent on completion of reimbursement discussions in Australia for eligible patients with the G551D mutation and on the potential further expansion of the KALYDECO label globally.
  • INCIVEK sales -94% yoy to $9.3 mln
2014 Financial Guidance
  • Co reaffirms FY14 non-GAAP rev guidance of $520-550 mln (may not compare to Capital IQ Consensus Estimate for full year revs of $545.37 mln)
  • Co reaffirms FY14 KALYDECO rev guidance of $470-500 mln
  • Co expects 2014 non-GAAP operating expenses to be in the range of $890-930 mln

4:09 pm Alexco Resources entered into agreement with an underwriter where Underwriter has agreed to purchase 4,350,000 units of the co at a price of CAD1.15 per Unit (AXU) :

  • Co announce that it has entered into an agreement with an underwriter, pursuant to which the Underwriter has agreed to purchase, on a bought deal basis pursuant to a short form prospectus, 4,350,000 units of the co at a price of C$1.15 per Unit (for gross proceeds of C$5,002,500.
  • Each Unit shall consist of one common share of the co and one half of one common share purchase warrant. Each Warrant shall be exercisable into one common share of the co for a period of 24 months from the Closing Date at an exercise price of C$1.40. 
  • The net proceeds from the Offering are expected to be used by the co for exploration and development of the co's projects and for general working capital purposes.

4:09 pm InvenSense reports EPS in-line, beats on revs (INVN) : Reports Q1 (Jun) earnings of $0.08 per share, in-line with the Capital IQ Consensus Estimate of $0.08; revenues rose 19.3% year/year to $66.7 mln vs the $64.5 mln consensus.

  • "This is an exciting and promising time for InvenSense," said Behrooz Abdi, president and CEO. "Our design win portfolio continues to grow, positioning us for strong market share increases in the coming quarters as new designs ramp into volume production. We continue to transition to a platform solution company, underscored by our announcement earlier this quarter of our intention to acquire two leading sensor algorithm and software companies. These highly strategic acquisitions allow us to scale our research and development efforts in this area and deliver higher value solutions to our customers. In total, our expanding presence in key geographic markets, additional content opportunities within the mobile device market and new applications for motion and audio sensors, such as wearables, provide healthy growth drivers through the current fiscal year and beyond."

4:09 pm Buffalo Wild Wings beats by $0.05, beats on revs (BWLD) : Reports Q2 (Jun) earnings of $1.25 per share, $0.05 better than the Capital IQ Consensus Estimate of $1.20; revenues rose 20.0% year/year to $366.0 mln vs the $359.6 mln consensus.

  • Same-store sales increased 7.7% at company-owned restaurants and 6.5% at franchised restaurants.
  • "We're pleased with our strong results in the second quarter...Same-store sales were strong during the Final Four and continued through the NBA and NHL playoffs."
  • Co says sales during the World Cup tournament were robust, contributing 100 bp to the company-owned same-store sales increase.
  • "Our same-store sales for the first four weeks of Q3 were 8.2% at company-owned restaurants and 7.4% at franchised locations. Company-owned same-store sales include a benefit of 330 bp from the World Cup."

4:08 pm Intl Game Tech beats by $0.01, misses on revs; guides FY14 EPS in-line (IGT) : Reports Q3 (Jun) earnings of $0.28 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.27; revenues fell 19.2% year/year to $467.6 mln vs the $521.89 mln consensus.

  • Social gaming revenue increased 17% to $72 million and average bookings per daily active user grew 7% to $0.43.

  • Guidance: Co issues in-line guidance for FY14, sees EPS of $1.00-$1.06 vs. $1.03 Capital IQ Consensus Estimate.

4:08 pm AFLAC beats by $0.07, reports revs in-line; guides Q3 EPS below consensus; guides FY14 EPS in-line (AFL) : Reports Q2 (Jun) operating earnings of $1.66 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus Estimate of $1.59; revenues fell 3.4% year/year to $5.84 bln vs the $5.82 bln consensus.

  • Co issues downside guidance for Q3, sees EPS of $1.38-1.47 vs. $1.52 Capital IQ Consensus Estimate. 
  • Co issues in-line guidance for FY14, sees EPS of $6.16-6.30 vs. $6.26 Capital IQ Consensus Estimate.

4:08 pm Safe Bulkers misses by $0.07, misses on revs (SB) : Reports Q2 (Jun) earnings of $0.02 per share, excluding non-recurring items, $0.07 worse than the Capital IQ Consensus Estimate of $0.09; revenues fell 10.1% year/year to $37.2 mln vs the $41.19 mln consensus.

  • 2Q14 time charter equivalent rate is $11,642/day, well below 2Q13 of $17,116.
  • "Carrying the experience over many shipping cycles, our company maintains lean operations and low cost structure resulting in a low break-even point. We have substantial liquidity and our newbuild program is fully financed. Our profits, currently influenced be the prevailing weak charter market conditions due to our exposure in the spot market, have substantial upside potential during a market turnaround. In this context our Board of Directors has declared a quarterly dividend of six cents per common share."

4:07 pm Power Integrations beats by $0.03, reports revs in-line; guides Q3 revs in-line (POWI) : Reports Q2 (Jun) earnings of $0.61 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.58; revenues rose 1.3% year/year to $89 mln vs the $88.95 mln consensus. Co issues in-line guidance for Q3, sees Q3 revs of $92-97 mln vs. $96.74 mln Capital IQ Consensus Estimate.Non-GAAP gross margin is expected to be between 55 percent and 55.5 percent. (Excludes approximately $0.3 million of stock-based compensation and $0.6 million of amortization of acquisition-related intangibles.) GAAP gross margin is expected to be between 54 percent and 54.5 percent. Operating expenses (GAAP and non-GAAP) are expected to be flat to slightly lower compared with the second quarter.

4:06 pm AmRIET to explore strategic alternatives; Board has rejected the previously announced unsolicited and conditional proposal by Regency Centers Corporation (REG) to acquire co for $22.00/share (AMRE) : Co announced that its Board of Directors has determined to explore strategic alternatives to enhance stockholder value. During this process, the Company will continue to pursue its existing business plan. AmREIT also announced that after a comprehensive review and consultation with its advisors, its Board has rejected the previously announced unsolicited and conditional proposal by Regency Centers Corporation (REG) to acquire AmREIT for $22.00/share.

  • There can be no assurance that the Board's evaluation will result in any transaction and the Board has not made a decision to pursue any specific transaction or strategic alternative.

4:06 pm MeetMe engages MKR Group for investor relations (MEET) : Co announced that is has engaged MKR Group, Inc. as its investor relations advisor.

 MKR Group will assist in providing a proactive investor relations program with the goal of raising MeetMe's exposure within the investment community and enhancing shareholder value by effectively communicating the Company's growth opportunities and objectives.

4:06 pm RingCentral cloud platform selected By BT for a new generation of communications solutions (RNG) :

  • The relationship will extend co's portfolio of business broadband and communication solutions to offer cloud phone systems based on the RingCentral cloud platform.
  • Co will offer the solutions from early 2015 through BT Local Business, its network of independent BT businesses across the UK, and through its dedicated telesales call centers.

4:06 pm FARO Techs announces acquisition of The CAD Zone, Inc. to expand presence in the law enforcement products and services market (FARO) : Co announced it has acquired The CAD Zone, Inc., a leading software provider in the law enforcement accident and crime scene reconstruction market. CAD Zone's point cloud software application will be integrated with FARO's laser scanning technology to provide turnkey solutions for crime scene and other forensic applications.

4:06 pm NCR Corp beats by $0.02, reports revs in-line; reaffirms FY14 EPS guidance, revs guidance; announces restructuring plan (NCR) : Reports Q2 (Jun) earnings of $0.68 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.66; revenues rose 8.0% year/year to $1.66 bln vs the $1.67 bln consensus.

  • Announcing restructuring plan to strategically reallocate resources to position NCR to focus on highest growth opportunities; Expected annualized savings to reach approximately $90 million by 2016
  • Co reaffirms guidance for FY14, sees EPS of $3.00-3.10 vs. $3.01 Capital IQ Consensus Estimate; sees FY14 revs of $6.75-6.85 bln vs. $6.76 bln Capital IQ Consensus Estimate.

4:05 pm EZCORP misses by $0.02, reports revs in-line; reaffirms Q4 EPS guidance (EZPW) : Reports Q3 (Jun) earnings of $0.21 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.23; revenues rose 2.6% year/year to $241.4 mln vs the $241.49 mln consensus.

  • Earning assets, including credit service organization (CSO.V) loans, were $443 million at quarter-end, an increase of 7% from continuing operations, as a result of growth in consumer loans at Grupo Finmart, as well as strong growth of installment loans in the U.S. 
  • Total revenues were $241 million, an increase of 3% compared to $235 million in the same period last year. Excluding an expected decrease in gold scrapping, total revenues were up 6%, driven by 3% increases in consumer loan fees and merchandise sales in the United States and Mexico. In addition, we had two structured financing transactions at Grupo Finmart from which we recognized $10 million of revenues. 
  • Cash and cash equivalents, including restricted cash, were $86 million at quarter-end, with aggregate consolidated debt of $382 million, comprised of the $230 million of our newly issued convertible debt and $152 million of Grupo Finmart third-party debt, which is non-recourse to EZCORP.
Co reaffirms guidance for Q4, sees EPS of $0.37-0.39 vs. $0.39 Capital IQ Consensus Estimate, including the impact of co's recent financing.

4:05 pm Universal Display continues Philips (PHG) relationship with commercial material supply agreement for OLED lighting (OLED) : Co announced that it has broadened its Philips (PHG) relationship to a commercial material supply agreement. With this, co will extend its supply agreement from the evaluation phase, to provide Philips with its proprietary PHOLED phosphorescent OLED materials and technology for use in its commercial OLED lighting products.

4:05 pm Rubicon Project beats by $0.22, beats on revs; guides Q3 EPS in-line, revs above consensus; guides FY14 EPS above consensus, revs above consensus (RUBI) : Reports Q2 (Jun) net of breakeven, $0.22 better than the Capital IQ Consensus Estimate of ($0.22); revenues rose 48.9% year/year to $28.3 mln vs the $25.29 mln consensus.

  • Metrics: Managed revenue was $153.5 million for the second quarter of 2014, an increase of 36% from $112.7 million for the second quarter of 2013. Take rate was 18.4% for the second quarter of 2014, compared to 16.9% for the second quarter of 2013 
  • Guidance: Co issues mixed guidance for Q3, sees EPS of ($0.20)-($0.17) vs. ($0.17) Capital IQ Consensus Estimate; sees Q3 revs of $28.5-$29.5 mln vs. $26.47 mln Capital IQ Consensus Estimate.

    Co issues upside guidance for FY14, sees EPS of ($0.41)-($0.34) vs. ($0.52) Capital IQ Consensus Estimate; sees FY14 revs of $117-$119 mln vs. $112.69 mln Capital IQ Consensus Estimate.

4:05 pm Lime Energy awarded southeast energy efficiency program (LIME) : Co announced that it has been awarded a new contract by a leading electric utility to cost effectively reach and engage small businesses to deliver energy saving solutions.

4:05 pm Anadarko Petroleum second-quarter sales volumes were above the high end of the quarterly guidance at ~77 MMBOE or 845K BOE/d; liquids sales volumes of ~408K BOE/d, about 71% of which were oil; increased its full-year 2014 sales-volume guidance (APC) : Co reported record U.S. onshore sales volumes that averaged ~ 667K BOE/d, an increase of more than 117K BOE/d over the 2nd quarter of 2013. Included in this total is a 50K BOPD increase over the same period last year. These increases were primarily driven by outstanding results from Anadarko's Wattenberg field, Eagleford shale and Delaware Basin assets.

  • The co reported record net Algerian sales volumes of ~ 73K Bbl/d, a 70% increase over the 2nd quarter of 2013. The increase was driven primarily by El Merk, which recently achieved record daily gross volumes of more than 150K Bbl/d.
  • Second-quarter sales volumes were above the high end of the quarterly guidance at ~ 77 MMBOE or 845K BOE/d. The co reported liquids sales volumes of ~ 408K BOE/d, about 71% of which were oil. Anadarko increased its full-year 2014 sales-volume guidance to a range of 299 to 302 MMBOE from the original range of 293 to 298 MMBOE.
  • Anadarko has completed all major construction and installation projects at its Lucius development in deepwater Gulf of Mexico. The 80,000-BOPD spar is expected to achieve first oil on schedule around the beginning of the 4th quarter of 2014.

4:04 pm Ternium S.A. misses by $0.13, misses on revs (TX) : Reports Q2 (Jun) earnings of $0.66 per share, $0.13 worse than the Capital IQ Consensus Estimate of $0.79; revenues rose 2.5% year/year to $2.2 bln vs the $2.23 bln consensus. 

  • EBITDA of $330.1 million in the second quarter 2014, 21% lower than EBITDA in the first quarter 2014 mainly as a result of lower EBITDA per ton due to higher steel operating cost per ton, partially offset by higher steel revenue per ton. 
  • Outlook: During the second quarter 2014, Ternium sustained its strong first quarter shipment activity in Mexico. Shipments in the country increased 386,000 tons, or 16%, in the first half of 2014 over the first half of 2013. The company expects these healthy shipment levels to continue in the third quarter 2014. In addition, North American steel prices remained attractive during the second quarter 2014. An active manufacturing sector in the region continues to generate demand for steel products and steel inventories remain at reasonable levels. As a result, Ternium expects a slight increase in revenue per ton in Mexico in the third quarter 2014 compared to the second quarter 2014. The company's shipments in the Southern Region did not recover as anticipated during the second quarter 2014 after the seasonally lower first quarter of the year. Ternium expects shipments in this region to remain relatively stable in the third quarter 2014, with average prices not changing significantly. Ternium anticipates a slightly higher operating income in the third quarter 2014 compared to the second quarter 2014, with stable shipments and an increase in operating margin as a result of higher revenue per ton partially offset by higher cost per ton.

4:04 pm Qiagen beats by $0.01, reports revs in-line; guides Q3 EPS in-line; guides FY14 EPS below consensus (QGEN) : Reports Q2 (Jun) earnings of $0.26 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.25; revenues rose 4.7% year/year to $331.2 mln vs the $330.76 mln consensus.  

  • QIAGEN reaffirms its expectations to deliver higher adjusted net sales and adjusted earnings for the full year. 
    • For the full year, adjusted net sales are expected to rise approximately 4-5% CER, as sales growth of approximately 8-9% CER from the current business portfolio, as well as contributions from the bioinformatics acquisitions, exceed an adverse impact of up to approximately 4 percentage points from reduced sales of HPV products in the U.S.
    • Co issues downside guidance for FY14, sees EPS of $1.07-1.09 vs. $1.11 Capital IQ Consensus Estimate.
  • For the third quarter of 2014, adjusted net sales are expected to rise approximately 4-5%
    • Co issues in-line guidance for Q3, sees EPS of 0.26-0.27 vs. $0.27 Capital IQ Consensus Estimate.  w 

4:04 pm Acadia Healthcare beats by $0.01, beats on revs; reaffirms FY14 EPS guidance (ACHC) :

  • Reports Q2 (Jun) earnings of $0.32 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.31; revenues rose 20.5% year/year to $213.8 mln vs the $208.56 mln consensus. 
  • Co reaffirms guidance for FY14, sees EPS of $1.44-1.46 vs. $1.45 Capital IQ Consensus Estimate. 
  • "Among the quarter's highlights, we produced growth in revenue and adjusted income from continuing operations in excess of 20%, increased our margins and achieved a double-digit increase in same facility revenue..."

4:04 pm Ultimate Software beats by $0.03, beats on revs; guides Q3 revs in-line; guides FY14 revs in-line (ULTI) : Reports Q2 (Jun) earnings of $0.46 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.43; revenues rose 25.1% year/year to $122 mln vs the $120.1 mln consensus. Co issues in-line guidance for Q3, sees Q3 revs of approx $127 mln vs. $127.14 mln Capital IQ Consensus Estimate. Co issues in-line guidance for FY14, sees FY14 revs growth of 25% y/y (approx $512 mln) vs. $506.22 mln Capital IQ Consensus Estimate.

4:02 pm Merit Medical misses by $0.02, beats on revs; guides FY14 EPS below consensus, revs below consensus (MMSI) : Reports Q2 (Jun) earnings of $0.15 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.17; revenues rose 17.3% year/year to $128.87 mln vs the $122.23 mln consensus. Co issues downside guidance for FY14, sees EPS of $0.61-0.65, excluding non-recurring items, vs. $0.75 Capital IQ Consensus Estimate; sees FY14 revs of $511-515 mln vs. $494.98 mln Capital IQ Consensus Estimate.

4:02 pm Kimco Realty reports FFO in-line, beats on revs; reaffirms FY14 FFO guidance (KIM) : Reports Q2 (Jun) funds from operations of $0.35 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of $0.35; revenues rose 14.6% year/year to $260.24 mln vs the $241.77 mln consensus.

  • Co reaffirms guidance for FY14, sees FFO of $1.36-1.40 vs. $1.39 Capital IQ Consensus Estimate.

4:02 pm MicroFinancial announces stock repurchase program of up to 250,000 shares (MFI) : Co announced that its Board of Directors has authorized the repurchase of up to 250,000 shares of the company's common stock from time to time.The repurchase program will be funded using the company's working capital. MicroFinancial had ~ 14.4 million shares of common stock outstanding as of June 30, 2014.

4:02 pm Plantronics beats by $0.08, beats on revs; guides Q2 EPS above consensus, revs above consensus (PLT) : Reports Q1 (Jun) earnings of $0.78 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus Estimate of $0.70; revenues rose 6.9% year/year to $216.7 mln vs the $210.95 mln consensus.

  • Co issues upside guidance for Q2, sees EPS of $0.72-0.80, excluding non-recurring items, vs. $0.70 Capital IQ Consensus Estimate; sees Q2 revs of $210-220 mln vs. $208.70 mln Capital IQ Consensus Estimate.

4:02 pm Fate Therapeutics announces FDA clearance of IND for clinical development of PROHEMA in inherited metabolic disorders (FATE) :

  • The FDA's clearance of the IND allows the co to begin expanding its clinical investigation of PROHEMA into rare, non-malignant disorders. 
  • The co plans to initiate enrollment of the "PROVIDE" trial (PROHEMA eValuation for the treatment of Inherited metabolic DisordErs) in pediatric patients with IMDs in the fourth quarter of 2014.

4:01 pm Boulder Brands amends and re-prices senior credit facility; increased its Term Loan B from $273 mln to $300 mln, and its 4 year revolving credit facility from $80 mln to $115 mln (BDBD) : Co announced today that the company amended and re-priced its existing senior secured credit facility. The company increased its Term Loan B from $273 mln to $300 mln, and its 4 year revolving credit facility from $80 mln to $115 mln. The Term Loan B cash interest rate was lowered from 5.0% to 4.5%. The EPS savings is nominal in 2014 and is anticipated to be approximately $0.01 in 2015.

4:01 pm ChannelAdvisor integrates with Yahoo (YHOO) Gemini (ECOM) : With Yahoo Gemini, ChannelAdvisor Digital Marketing customers can now create Yahoo Gemini search and native ads, more accurately target campaigns across channels and devices, access Yahoo Gemini keyword bid management and reporting tools, and sync with their Yahoo Ad Manager account.

3:48 pm Relative sector weakness (:TECHX) : Sectors that have underperformed the S&P on the recent push to a new session low include: Oil Service OIH, Materials XLB, Industrial XLI, Transports IYT, Rail, Casino BJK.

3:43 pm President Obama Press Conference- says forces in Russia are firing artillery into Ukraine; Energy, arms and finance the focus of the latest sanctions (SPY) :  

3:35 pm Foresight Energy provides Hillsboro Mine update; appears that the effort to contain and extinguish the fire has been successful (FELP) :

  • Co announced that on July 28, 2014 a team of examiners and Mine Safety and Health Administration authorities reentered the Hillsboro Energy Deer Run Mine and conducted an examination. Based on this exam, and the continued low carbon monoxide levels, it appears that the effort to contain and extinguish the fire has been successful. 
  • In addition, during the examination process, a limited section of the headgate area of the longwall was observed. Based on this limited observation, it appears there was no damage to the longwall and related equipment.
  • The next step in the reentry process is to pump water from the mine, which commenced last night. After sufficient pumping, an observation period will begin. During the observation period, mine personnel will be working with MSHA on a plan for the workforce to reenter the mine.

3:33 pm GlaxoSmithKline's Tanzeum is now available in pharmacies in the U.S. (GSK) : Co announced that once-weekly Tanzeum (albiglutide), a prescription injectable treatment for type 2 diabetes in adults, as an adjunct to diet and exercise, is now available in pharmacies throughout the U.S.

3:32 pm S&P -6.1 joins Dow -44 at new session low -- Nasdaq Comp +4.4 (:TECHX) :  

3:30 pm Earnings Calendar (:SUMRX) : Today after the close look for the following companies to report:

  • LNDC, GPN, AJG, RT, AXP, AMGN, IGT, NEU, PEI, AMCC, CINF, CLMS, EW, FBP, INAP, MMSI, NEM, PCTI, AMP, BLDP, BWLD, CBL, RKT, WNC, ACHC, ACMP, AEC, AEGN, AFL, ANH, ARI, AXS, BGFV, BOOM, BXP, CALX, CAP, CEB, CEMP, CHRW, CLD, CRAY, DWA, ESRX, EZPW, FARO, FFIC, FISV, GAS, GNW, GPRE, HIW, HTA, HURN, IPHI, MAR, MTSI, NATI, NCR, NFX, NUVA, PLT, PNRA, POWI, QTS, RNG, RNR, ROG, RPXC, SLCA, SM, TMH, TRN, TWTR, ULTI, USNA, VRSK, WSH, WTS, X, XCO, CBG, CHMT, DOX, EEFT, EQR, TX, CVD, INVN, NTRI, SQNM, VRTX, XPO, APC, IVR, RBC, RGR, AEGR, DLR, EXAM, MOVE, QGEN, APU, BBOX, CSLT, KIM, UGI, RUBI, COVS, CPWR, SB
Tomorrow before the open look for the following companies to report:
  • CFR, LPLA, DEST, LO, PAG, SONS, VLY, SAIA, BEN, HAE, DORM, GT, HUN, LFUS, PROV, ROK, S, VLO, AB, ACCO, ADT, AUO, BOKF, CVE, D, DHX, ENR, EVER, GIB, GRMN, HES, HSP, IACI, ICLR, INGR, KVHI, LL, MGAM, MINI, MRGE, MWV, NVMI, PBI, PSX, PSXP, SEE, SO, SPW, TASR, TFX, TRI, WEC, WLP, AMT, BDC, PEG, PTRY, RRD, SMP, SGNT, ATRO, AMED, DX, HUM, NICE, SPB, SODA, BAH, MMYT, RYAM, ADPT

3:25 pm Freddie Mac Q2 Refinance Report (FMCC) :

  • Of borrowers who refinanced during the second quarter of 2014, 40 percent shortened their loan term, approximately the same as the previous quarter and the highest since 1992. 
  • In the second quarter, an estimated $7.8 billion in net home equity was cashed out during a refinance of conventional prime-credit home mortgages, up from the revised $5 billion last quarter.
  • Adjusted for inflation, annual cash-out volumes during 2010 through 2013 have been the smallest since 1997.

    In aggregate, U.S. home equity grew by an estimated $4.1 trillion during the two-year period through March 31, 2014. Much of this gain was attributable to home value gains. 

  • The average mortgage interest rate reduction in the second quarter was about 1.4 percentage points -- or a savings of about 24 percent. On a $200,000 loan, that translates into interest savings of about $2,800 during the next 12 months. Homeowners who refinanced through HARP during the second quarter of 2014 benefited from an average mortgage interest rate reduction of 1.6 percentage points and will save an average of $3,200 in interest payments during the first 12 months, or about $260 every month. 
  • About 79 percent of those who refinanced their first-lien home mortgage maintained approximately the same loan amount or lowered their principal balance by paying in additional money at the closing table, down 4 percent from the previous quarter. The peak was 88 percent during the second quarter of 2012.
  • The median age of the original loan outstanding before refinance increased to 7.3 years during the first quarter, the most since the analysis began in 1985 and unchanged from the previous quarter.

3:05 pm Dow -27 slips to minor new session low, S&P -3.8 holding above its morning trough (:TECHX) :  

2:56 pm Wi-LAN: Adapt IP Ventures and WiLAN partner to monetize patent portfolio (WILN) : Adapt IP Ventures LLC announces new patent brokerage partnership with Wi-LAN focused on monetizing a valuable communications and networking patent portfolio. The patent portfolio will offer the acquirer an opportunity to further develop this significant asset to complement a buyer-specific technology roadmap.

Summary of Assets for Sale:

  • 150+ patent assets including international patent filings 
  • 26 patent families 
  • Numerous patent families are currently under development and being prosecuted 
  • Forward citations from companies including: Marvel, Nokia (NOK), Huawei, Microsoft (MSFT), Google (GOOG), Ericsson (ERIC), Rockstar Bidco and Vishay (VSH)

2:55 pm NYMEX Energy Closing Prices (:COMDX) :

  • Sep crude oil fell $0.77 to $100.91/barrel 
    • Crude oil extended yesterday's losses as a stronger dollar index weighed on prices. The energy component spent its entire floor session in the red, trading as low as $100.32. Unable to gain buying support, it settled with a 0.8% loss. 
  • Sep natural gas rose 5 cents to $3.82/MMBtu 
    • Natural gas dipped to a session low of $3.74 in morning action and chopped around slightly below the unchanged level. However, buyers stepped in during the last hour of floor trade and took prices up as high as $3.83, leaving natural gas to settle with a 1.3% gain. 
  • Sep heating oil rose 1 cent to $2.90/gallon 
  • Sep RBOB rose 1 cent to $2.86/gallon

2:52 pm Healthcare Trust of America increases quarterly dividend to $0.145 from $0.1438/share (HTA) :  

2:22 pm Capitol Federal announces leverage strategy; involves borrowing from the Federal Home Loan Bank Topeka up to $2.10 bln on the Bank's line of credit (CFFN) : Co announced a leverage strategy being implemented by Capitol Federal Savings Bank.

  • The leverage strategy involves borrowing from the Federal Home Loan Bank Topeka ("FHLB") up to $2.10 bln on the Bank's line of credit. The borrowing will consist of two leverage tiers. The first $800.0 mln is intended to remain borrowed on the LOC for an extended period of time while the additional $1.30 bln will be borrowed in the first days of each quarter and paid off prior to the end of each quarter. Per FHLB policy, the Bank is required to purchase 4.5% of the amount borrowed in FHLB stock. 
  • The proceeds of the borrowings, net of FHLB stock purchased, will be deposited at the Federal Reserve Bank of Kansas City. 
  • Under current conditions, this leverage strategy will increase pre-tax income ~ $4.5 mln annually, the average balance of borrowings ~ $2.10 bln, the average balance of cash ~ $2.00 bln and FHLB stock ~ $100.0 mln each quarter and reduce the net interest margin by ~ 35 basis points. The $800.0 mln of leverage not paid off at quarter end will reduce the Bank's Tier 1 equity ratio to about 13.0%. 
  • This transaction is expected to have minimal impact on the Bank's ability to manage its interest rate risk and liquidity.

2:21 pm Dollar Sees Sixth Gain in Seven Sessions: 10-yr: +04/32..2.465%..USD/JPY: 102.13..EUR/USD: 1.3407 (:SUMRX) :

  • The Dollar Index trades on session highs near 80.20 as trade looks to put in its best close in almost six months. Click here to see a weekly Dollar Index chart.
  • The rally off the early July lows near 79.80 has many turning their focus towards the key 81.40 level. 
  • EURUSD is -30 pips @ 1.3410 as trade drops to an eight-month low. The single currency hovered little changed into the start of U.S. trade, but has seen a leg lower on headlines indicating European leaders have agreed on further Russian sanctions. A breakdown of the 1.3400 level puts the 1.3300/1.3350 support band in play. German preliminary CPI accompanies Spanish Flash CPI and Spanish Flash GDP. 
  • GBPUSD is -45 pips @ 1.6940 as sellers remain in control for the ninth time in ten sessions. Today's weakness comes following the slight net lending to individuals miss, and has pushed action to its lowest level in one and a half months. Many traders are taking note of today's downside breach of the 50 dma as action fights to hold minor support near 1.6900. 
  • USDCHF is +30 pips @ .9070 as action flirts with its best close in seven months. The recent 'golden cross' has many looking for further upside with .9000 acting as support. Swiss data is limited to the KOF Economic Barometer. 
  • USDJPY is +30 pips @ 102.15 as buyers hold control for an eighth straight session. The current rally has action testing its best levels since the beginning of July as resistance and both the 100 and 200 dma come under pressure. Japan's preliminary industrial production will cross the wires tonight.
  • AUDUSD is -25 pips @ .9380 as trade slips for a third time in four days. Support near .9350 is guarded by the 50 dma. 
  • USDCAD is +55 pips @ 1.0850 as trade climbs to its best levels since the middle of June. Today's bid has allowed the pair to reclaim the 200 dma while testing key resistance in the area. Canada's Raw Materials Price Index is due out tomorrow.

2:21 pm Minor new afternoon high for Nasdaq 100/Comp and small-caps but Dow +12 and S&P +0.1 did not confirm (:TECHX) :  

2:18 pm CBOT Agriculture and Ethanol/ICE Sugar Closing Prices (:COMDX) :

  • Sep corn fell 6 cents to $3.62/bushel 
  • Sep wheat fell 14 cents to $5.21/bushel 
  • Aug soybeans fell 7 cents to $12.29/bushel 
  • Sep ethanol fell 1 cent to $2.08/gallon 
  • Sep sugar (#16 (U.S.)) rose 0.07 of a penny to 24.65 cents/lbs

1:50 pm COMEX Metals Closing Prices (:COMDX) :

  • Aug gold fell $5.00 to $1298.20/oz 
    • Gold fell into negative territory after trading as high as $1310.30 in morning action as the dollar index strengthened. The yellow metal brushed a session low of $1295.50 and eventually settled with a 0.4% loss. 
  • Sep silver rose $0.01 to $20.58/oz 
    • Silver also pulled back from its session high of $20.79 set in early morning pit trade and brushed a session low of $20.50. It inched slightly higher heading in the close and settled 1 cent above the unchanged line. 
  • Sep copper fell 2 cents to $3.22/lbs

1:49 pm Cliffs Natural Resources issues statement following its Annual General Meeting (awaiting voting results) (CLF) : Co made the following statement following the Company's Annual General Meeting:

  • "We look forward to receiving the final results of today's vote, and the Board and management team remain deeply committed to continuing to create long-term value for all of our shareholders. We appreciate the support of the Cliffs shareholders who supported the Company's slate and the hard work every day by Cliffs' more than 6,000 employees."

1:45 pm H.B. Fuller announces polymer emulsion price increase in N. America (FUL) : Co announced that, effective August 15, 2014, or as contracts allow, the North America Polymer group of H.B. Fuller will increase the price for all vinyl acetate-based emulsion polymer products. Vinyl acetate ethylene (:VAE) copolymers, vinyl acrylics and PVAc homopolymers will increase by up to $0.03 USD per wet pound. This price increase includes the PACE, Plyamul, Copro and Elvace product brands.

1:30 pm Sevcon announces terms of rights offering to its stockholders (SEV) : Co announced the terms for its pending rights offering for shares of convertible preferred stock.

  • The rights offering, for which Sevcon has filed a registration statement with the Securities and Exchange Commission, is intended to raise $10 mln before expenses in a cost-effective manner that gives all of Sevcon's existing stockholders the opportunity to participate.
  • The net proceeds will be used for general corporate purposes and growth, including funding Sevcon's ongoing research and development and product commercialization initiatives and acquisitions of other businesses. 
  • The preferred stock carries a 4% cumulative annual dividend and will be convertible at any time at the holder's option into shares of Sevcon's common stock at an initial conversion price of $8.00 per share

1:29 pm Synthetic Biologics states that its policy is not to comment on unusual market activity (SYN) :  

1:26 pm Park Electrochem elects Christopher Mastrogiacomo as President and COO (PKE) : Mastrogiacomo had been Executive Vice President and Chief Operating Officer of Park Electrochemical since June 2011, and he was Senior Vice President of Strategic Marketing of Park from December 2010 to June 2011. Prior to joining Park as Vice President of Strategic Marketing in September 2010, Mastrogiacomo held senior management positions with Sanmina-SCI (SANM) and its predecessor, Hadco Corporation. 

1:02 pm Midday Market Summary: Stocks Hold Modest Midday Gains (:WRAPX) : At midday, the Dow Jones Industrial Average (+0.2%), Nasdaq (+0.3%), and S&P 500 (+0.1%) hold slim gains, while the Russell 2000 (+0.6%) outperforms.

Like yesterday, the overnight session was free of any broad developments, which allowed the focus to turn toward the next batch of earnings in the U.S. In general, most of the reports received since yesterday's closing bell have surpassed expectations, but there were a few noteworthy disappointments too.

Despite showing early strength, the indices have been knocked off their highs by news of forthcoming EU sanctions against Russia. The imposition of new sanctions may pique concerns about a boomerang effect on the global economy, and Europe in particular, but it is worth noting that the Russian ruble and Market Vectors Russia ETF (RSX 24.47, +0.12) strengthened in reaction to the news.

Moving to earnings, a pair of Dow components-Pfizer (PFE 30.06, -0.04) and Merck (MRK 59.15, +1.18)-reported better than expected results, but only Merck remains in the green at this time. The health care sector, meanwhile, is higher by 0.3%.

Elsewhere among countercyclical groups, the telecom services sector (+2.8%) has gotten a major boost from news indicating Windstream (WIN 11.81, +1.28) has been cleared by the Internal Revenue Service to spin off its assets into a publically-traded REIT. Other telecom names like AT&T (T 36.72, +1.07) and Verizon (VZ 52.42, +0.84) have also rallied on speculation they could take the same route.

On the cyclical side, the consumer discretionary sector (+0.4%) has drawn strength from Honda Motor (HMC 35.93, +0.75) and retail stocks. The SPDR S&P Retail ETF (XRT 84.76, +0.52) is higher by 0.6%.

Most of the remaining cyclical sectors trade near their flat lines, but industrials (-0.4%) have been pressured by transport stocks after UPS (UPS 99.39, -3.27) reported disappointing earnings and lowered its guidance. The stock, which trades lower by 3.2%, has slid to its 200-day moving average, while the Dow Jones Transportation Average holds a loss of 0.7%.

Treasuries are little changed with the 10-yr yield at 2.48%.

Economic data was limited to the Case-Shiller 20-city Index and the Consumer Confidence report:

  • The Case-Shiller 20-city Home Price Index for May rose 9.3%, while a 10.0% increase had been expected by the Briefing.com consensus 
    • This followed the previous month's increase of 10.8% 
  • The Conference Board's Consumer Confidence Index spiked to 90.9 in July from an upwardly revised 86.4 (from 85.2), while the Briefing.com consensus pegged the Index at 85.6
    • Consumer confidence is now at its highest level since October 2007 
    • The Present Situation Index increased to 88.3 from 86.3 and the Expectations Index rose to 92.7 from 86.4

12:32 pm Cliffs Natural Resources: Casablanca Capital announces it received 'overwhelming' shareholder support for change at Cliff Natural Resources; all six nominees on Casablanca's majority slate elected to Cliffs Board of Directors (CLF) : Casablanca Capital, the beneficial owner of approximately 5.2% of Cliffs Natural Resources (CLF) shares, announced that all six of Casablanca's nominees have been elected to the Cliffs Board of Directors according to preliminary estimates by its proxy solicitor of the voting results at today's Annual Meeting of Shareholders. Subject to certification of the final results by the independent inspector of elections, the newly elected directors begin their terms immediately and will serve through the Company's 2015 Annual Meeting of shareholders.

12:29 pm Major average trim slide off early high in half -- Dow +23, S&P +1, Nasdaq Comp +12 (:TECHX) : Noted at 11:43 that the S&P had probed support from The Technical Take at 1974/1973 (session low 1973.53) and stabilized. It has been able to build on the bounce with it recently trimming the morning slide in half at 1979.

12:18 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

  • LVLT (47.04 +4.75%): Beat on EPS by $0.06, beat on revs; announced proposed private offering of senior notes by subsidiary, Level 3 Escrow II, that mature in 2022 valued at $600 mln.
  • CTL (39.16 +3.85%): Telecoms trading higher on WIN REIT news (T also higher).
  • WM (45.3 +3.21%): Beat on EPS by $0.01, missed on revs; plans to meet or exceed its FY14 EPS guidance; executed agreements to repurchase $600 mln in shares; signed definitive agreement for $1.94 bln divestiture of Wheelabrator Technologies to Energy Capital Partners.
Large Cap Losers
  • GLW (19.9 -9.75%): Missed on EPS by $0.01, beat on revs; sees continued growth.
  • EMN (82.21 -7.29%): Beat on EPS by $0.08, slightly missed on revs; reaffirmed FY14 EPS guidance.
  • ETN (72.06 -6.11%): Reported EPS in-line, revs in-line; guided Q3 EPS below consensus; lowered high end of FY14 EPS guidance.
Mid Cap Gainers
  • MDSO (46.1 +17.72%): Reported EPS in-line, beat on revs; guided FY14 revs in-line.
  • CGNX (44.37 +17.38%): Beat on EPS by $0.10, beat on revs; guided Q3 revs well above consensus.
  • IDTI (15.19 +12.27%): Beat on EPS by $0.01, beat on revs; announced that an IDT wireless power receiver was incorporated on LG's latest flagship G3 smartphone; tgt raised to $20 at Craig Hallum.
Mid Cap Losers
  • OSK (46.65 -12.3%): Missed on EPS by $0.14, reported revs in-line; guided FY14 EPS below consensus, revs below consensus.
  • HLF (60.35 -10.57%): Missed on EPS by $0.02, missed on revs; guided Q3 EPS in-line; guided FY14 EPS in-line.
  • SSW (22.24 -6.73%): Missed on EPS by $0.02, reported revs in-line.

12:18 pm Bristol-Myers extends to new session high of 51.04 in recent trade to test its 200 sma at 51.05 (BMY) :  

12:11 pm Cinedigm Digital Cinema signs exclusive genre label deal with Robert Halmi Jr.'s Great Point Media (CIDM) : Co and Robert Halmi Jr.'s Great Point Media announced they have entered into a multi-picture distribution and production output deal. In this multi-year deal, Great Point Media will deliver a minimum of eight cast-driven films primarily in the sci-fi and thriller genres. Cinedigm will distribute all US rights to the films, including theatrical, digital and video-on-demand, physical home entertainment and television. Additionally, Cinedigm will have a first look at Great Point Media's extensive development slate. The first two films are expected to be delivered by late 2014, with the balance of the initial slate delivered in 2015.

12:04 pm Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (103) outpacing new lows (71) (:SCANX) : Stocks that traded to 52 week highs: AAPL, ABAX, ACH, AEM, AKS, AMID, APD, ARLP, ARRS, BABY, BBD, BBL, BHP, BNS, CGNX, CHA, CHE, CHTR, CHU, CM, CMCSA, CMG, CNSL, CTL, CTRP, CVC, DMLP, ECF, EDUC, EFX, ENVE, EQR, FLT, FSRV, FTR, GCI, GILD, GLP, GPRE, GRUB, GTIV, HCA, HLS, HNRG, HPP, HPQ, INTU, IPDN, IPG, IPHS, ITUB, KALU, KTWO, LAWS, LEJU, LVLT, LYB, MITSY, MMC, MSTR, NDAQ, NTES, NTRS, NTT, NVEC, OPB, OVBC, PKX, Q, REX, RFMD, RGA, SAVE, SBAC, SCG, SEM, SGC, SHG, SIMO, SKX, SNCR, SRC, SUMR, SUSS, SYA, T, TAHO, TCX, TD, THC, TMH, TOUR, TQNT, TRNS, TWC, TWTC, UDR, UFI, UHS, VZ, WIN, XL, XOM

Stocks that traded to 52 week lows: ACPW, ACXM, AVL, AVP, AWRE, BCOV, BDE, BPI, BRP, CAS, CGA, CLRX, CNHI, COT, CPWR, CVLT, DCTH, DSX, DVR, ECYT, EDMC, ENTR, ESI, FRAN, GLF, GLT, GNC, HLIT, IBP, IKAN, INBK, IPAR, KBIO, KBR, LPX, MDCO, MTZ, NCFT, NKSH, NPK, NPTN, NWBI, OCRX, OFLX, OGXI, PIKE, PT, QLGC, QNST, QRM, RCPI, RNDY, RSH, SAGE, SCL, SCVL, SKYW, SQI, TAXI, TCCO, TELK, TLMR, TNDM, TR, TRGT, TSE, TTS, TUP, UBS, VSAR, ZGNX

ETFs that traded to 52 week highs: EEM, EPP, EWH, EWY, FXI, GXC, IHF, IYZ, SLX, TLT, XLK

ETFs that traded to 52 week lows: RJA, TBT

12:03 pm P&F Industries acquires Universal Air Tool Company for ~$1.95 mln in cash; believes acquisition will be immediately accretive to earnings (PFIN) : Co announced that it acquired all of the outstanding equity interests of Universal Air Tool Company Limited. UAT markets its pneumatic tools primarily to the automotive market in England and Ireland.

  • The purchase price consisted of ~$1,950,000 in cash, subject to a post-closing working capital adjustment. In addition, there is a potential contingent consideration payment due to the former shareholders of UAT of a maximum of ~ $425K. 
  • The newly acquired company will be a wholly-owned subsidiary of P&F's subsidiary, Florida Pneumatic Manufacturing Corporation.
  • The Company believes that this acquisition will be immediately accretive to earnings.

12:02 pm iShares DJ Transports ETF down for fourth day in a row (IYT) : The IYT is lower for the fourth session in a row with today's extension leaving it back at the 50% retracement of the June-July advance at 147.64 (session low 147.70). The next near term support if follow through continues is in the 146.67/146.28 zone (50 sma/ema, 62% retrace). Today's biggest drag is UPS (-3.5%) after reporting earnings. It has pulled back near the 50% retracement of the Feb to July surge and its March high/breakout point in the 99.14/99.00 area (session low 98.90).

11:48 am European Markets Closing Prices (:SUMRX) : European markets are now closed; stock markets across Europe performed as follows:

  • UK's FTSE:+0.3%
  • Germany's DAX:+0.6%
  • France's CAC:+0.4%
  • Spain's IBEX:+0.1%
  • Portugal's PSI:-1.4%
  • Italy's MIB Index:+0.7%
  • Irish Ovrl Index:+0.8%
  • Greece ASE General Index: -1.5%

11:45 am Wynn Resorts (+3%) breaks out to 8 week high despite missing Q2 sales estimates as the Street is relieved with positive commentary regarding July (WYNN) : Wynn Resorts (WYNN +3%) broke out to an 8 week high following earnings. WYNN was down ~4% in the premarket after the company missed sales expectations and beat earnings estimates. However, positive commentary on the call regarding business in July sent the stock 15 points (~7%) off the lows.

  • Sentiment turned decidedly Bearish on the Macau stocks (WYNN +3%, LVS +2%, MPEL +2% and to a lesser extent MGM +1.4%, junket operator IKGH +4.5?rely trades) after June gross gaming rev (:GGR) fell year-over-year (3.7%) for the first time on record (which only go back a few years). 
    • Restrictions on credit, macro concerns and the World Cup had a negative impact. 
    • Street expectations were lowered for the rest of 2014 following the June data. 
  • A July update was more important than June (Q2) results which were already known to be less than desirable. 
    • Peer LVS missed Q2 esteems two weeks ago. 
  • Wynn said July has been strong, the VIP business has stabilized while mass market remains strong in Macau and Vegas was also doing well. 
    • This commentary quelled some concerns about the casinos, mostly about the Macau VIP segemnt.
  • Steve Wynn also provided some interesting metrics, comparing his company to LVS noting that it was much smaller but also more efficient. 
    • EBITDA is the most important metric in the lodging sector (driven by ADR, Occupancy but also gaming rev for a casino). 
    • Wynn said EBITDA per room in Vegas is $34K vs. $9.3K for LVS; in Macau: $304K vs $80K for Sands. 
July gross gaming rev (:GGR) will be the next catalyst for these stocks, likely out on Friday morning, August 1. Macau GGR is +12.6% YTD and now expected to be in the low double digits for the full year. Macau gross gaming rev grew +18.6% in 2013 after growing 13.5% in 2012, 42% in 2011 and 58% in 2010.

11:43 am S&P -4.3 extends to support (SPY) : Support for the S&P at 1974/1973 (The Technical Take) has been probed in recent trade (session low 1973.53) with a minor stabilization noted.

11:37 am Floor Talk (:TALKX) : The stock market bounced early on the back of better than expected earnings results from a number of blue chip companies and the highest reading for consumer confidence since October 2007.  Some reports also suggested the market was moving in front of Wednesday's FOMC decision, which is expected to have a status quo flavor to it.

At their highs of the morning, the Dow, Nasdaq, and S&P 500 were up 74, 26, and 6 points, respectively.  They are all now in negative territory.

Presumably, there was some knee-jerk selling interest to the headlines in the past hour that the EU agreed on new economic sanctions against Russia that will go into effect by Thursday.  The imposition of new sanctions may pique concerns about a boomerang effect on the global economy, and Europe in particular, which counts Russia as a major trading partner and major supplier of natural gas.

European bond yields, many of which have hit multi-century lows today (yes, you read that right), are moving in a way that doesn't exactly connote a whole lot of faith in the economic growth outlook.  The German bund for instance is yielding just 1.12% after starting the year at 1.95%.

Notwithstanding the negative-sounding nature of the aforementioned headline, it would be remiss not to point out that the Market Vectors Russia ETF (RSX 24.31, -0.05) moved UP from its session low after the headline hit that the EU had agreed to new sanctions, implying a belief that the new sanctions might have more bark than bite.

Whatever the case may be, geopolitical developments continue to invite some added volatility into the market for traders waiting on key information from Wednesday's Q2 GDP report and FOMC directive.

11:36 am Sector Summary: DXY Hits Multi Month High Ahead of Jobs, FOMC (:SUMRX) :

  • The Dollar Index continues to churn higher as markets prepare for a busy end to the week that will include the FOMC, Jobs, Q2 GDP, ISM Manufacturing and PCE Prices. The DXY had been straddling the 81 level over the past two weeks but is now using that as a platform to move higher. The DXY has now moved to test the 81.20 area, its best level since February 6. This morning Consumer Confidence data blew away expectations but the S&P Case Shiller Index did see lower than expected increase in housing prices. 
  • The euro has slipped to multi-month lows as the dollar rallies. The single currency is preparing for its first test of 1.34 since November 21. Germany Import Prices rose 0.2% month over month, in line with expectations. Markets are awaiting the highly anticipated regional inflation reports which are due out over the remained of the week. 
  • The pound continued its recent pullback. Selling in sterling has picked up as the currency failed to hold the 1.70 level.  Economic data from the region remained steady as Mortgage Approvals, Consumer Credit and Mortgage Lending all outpaced expectations. 
  • The yen has slipped back to test the 102 level. The yen has been under selling pressure the past couple of sessions. Selling picked up as equity markets saw risk aversion on headlines that Europe had come to an agreement on further sanctions for Russia (BONDX, FOREX).

11:36 am New session lows for major averages, Nasdaq Comp -3.1 joins Dow -26 and S&P -5.3 in the red (:TECHX) :  

11:19 am Valero Energy increases quarterly dividend to $0.275 from $0.25/share (VLO) :  

11:16 am VirnetX Holding announces denial of three Microsoft (MSFT) petitions for inter partes review (VHC) : Co announced that last week, the USPTO denied three petitions for inter partes review filed by Microsoft (MSFT). These petitions sought review of certain claims of VirnetX's U.S. Patent Nos. 6,502,135 and 7,188,180. Like some of the petitions filed by Apple (AAPL) and all of the petitions filed by RPX, the USPTO found that Microsoft's petitions were not filed within the time limit imposed by the statute and declined to institute inter partes review. Microsoft was found to infringe both '135 and '180 patents in a prior lawsuit filed by VirnetX against Microsoft.

11:07 am Men's Wearhouse trading lower on volume following comments at Analyst Day about JOSB synergy potential (MW) :  

11:05 am Stock indices extend slip off highs -- Dow +28 has slipped 46 points, S&P +1.2, Nasdaq Comp +15 (:TECHX) :  

10:53 am New highs Nasdaq Comp +18 and small-caps but Dow +42 and S&P +2.6 have not yet confirmed (:TECHX) :  

10:49 am Adobe Systems runs to new session high of 73.25, testing three week range high at 73.26 (ADBE) :  

10:34 am CNH Industrial brand Iveco Bus wins contract for 300 Eurorider chassis in Egypt (CNHI) : These buses will enter operation at the end of 2014 and will be part of an extension of the Cairo fleet, which currently numbers some 2,000 buses. 

10:21 am Solar Power entering into purchase agreement for $25-million private placement (SOPW) : When received, the company intends to use the net proceeds from the sale of the shares for expansion of its global PV project activities, continued investment in ramping its YES! Solar solution for the residential and small business segments, for working capital purposes and to pay down debt.

10:10 am Follow through gains across the board for stock indices -- Dow +69, S&P +5.5, Nasdaq Comp +23.9 (:TECHX) :  

10:02 am Limited reaction from major averages to better confidence data, Dow +50 set a fractional new high with S&P +3.5 and Nasdaq Comp +17 not yet confirming (:TECHX) :  

10:01 am LM Ericsson acquires MetraTech to accelerate cloud and enterprise billing capabilities; financial terms not disclosed (ERIC) : Co announced it has entered into an agreement to acquire US-based MetraTech, a provider of metadata-based billing, commerce and settlement solutions uniquely adaptable to multiple business models and industries. The acquisition includes all 140 employees and contractors comprising a team of highly-skilled software experts. It will further build upon Ericsson's expertise in billing and expands its geographic presence in the US.

10:00 am General Dynamics awarded $25 million by Lockheed Martin (LMT) for continued work on U.S. Air Force GPS III program (GD) : Co was awarded a $25.4 mln full-production contract from Lockheed Martin (LMT) to support the U.S. Air Force Global Positioning System III Network Communications Element for space vehicles seven and eight. The Air Force's next-generation GPS III satellites will improve position, navigation and timing services and provide advanced anti-jam capabilities yielding superior system security, accuracy and reliability.

10:00 am WPCS Intl announces adjournment of special meeting and rescheduling of special meeting to Aug 15, 2014 (WPCS) : Co announced that its special meeting of stockholders scheduled for, and convened on July 25,2014, was adjourned due to the lack of a requisite quorum.

  • To date, the Company has received approximately 47% of the requisite vote.
  • Almost 94% of the shareholder votes received thus far are in favor of the proposal, but the co still requires 50.1% of the total shares to vote for a quorum.
  • The special meeting will take place on August 15, 2014 at 10:00 a.m.

9:55 am Dow +44 and S&P +3.7 join Nasdaq Comp +20 at new session highs (:TECHX) :  

9:51 am Relative sector strength (:TECHX) : Sectors outperforming the S&P in recent trade include: Semi SMH, Housing XHB, Discretionary XLY, Biotech IBB, Internet FDN, Casino BJK, Networking IGN.

9:50 am New session highs for Nasdaq 100/Comp and small-/mid-caps (:TECHX) :  

9:41 am Calgon Carbon's wholly owned subsidiary, Hyde Marine, announces engineering agreement with Netherlands-based Goltens for Hyde GUARDIAN gold ballast water treatment systems (CCC) : Hyde Marine, a wholly owned subsidiary of Calgon Carbon, announced it has launched an agreement with Goltens Green Technologies division to help shipowners determine how to best fit the chemical free Hyde GUARDIAN Gold Ballast Water Treatment System onto their existing vessels.

  • Hyde Marine's partnership with Goltens will allow shipowners to benefit from precision 3D laser scanning and modeling, which helps eliminate complications during the BWTS installation process on existing vessels. Laser scanning provides an accurate and efficient solution for fitting BWT systems onboard and mitigates risks associated with manual measurement and fabrication onboard.
  • It will work with Goltens' six green stations worldwide for the engineering of the Hyde GUARDIAN Gold ballast water treatment process, which uses efficient filtration and ultraviolet disinfection to treat ships' ballast water to prevent the spread of invasive species from port to port.

9:41 am Opening Market Summary: Telecom Sector Surges Out of the Gate (:WRAPX) : Equity indices registered early gains with the Russell 2000 (+0.2%) in the lead. The S&P 500 trades higher by 0.1% with three sectors in the green.

The telecom services sector (+4.7%) is a runaway leader thanks to news indicating Windstream (WIN 13.03, +2.50) has received clearance from the Internal Revenue Service to spin off its assets into a publically-traded REIT. Other telecom names like AT&T (T 37.26, +1.61) and Verizon (VZ 53.19, +1.61) have also rallied on speculation they could take the same route.

Outside of telecom services, the next best sector-consumer discretionary-is higher by 0.4%. Automaker Honda Motor Company (HMC 35.54, +0.36) is higher by 1.0% after beating earnings estimates.

Treasuries are on their highs with the 10-yr yield down three basis points at 2.46%.

The Consumer Confidence report for July (Briefing.com consensus 85.6) will cross the wires at 10:00 ET.

9:40 am Gaming & Casino names boosted by WYNN earnings/July commentary (BJK) :

  • MGM +2.1%, WYNN +1.9%, LVS +1.4%, MCRI +1.1%, MPEL +0.9%, IKGH +1%, BYD +0.7%, BJK +0.5%, PENN +0.4%, IGT +0.3%, ISLE +0.1%

9:38 am Major averages are firmer but pause after modest breach of Monday highs -- Dow +23, S&P +2, Nasdaq Comp +9.1 (:TECHX) :  

9:36 am Best Buy in the red but hovering just under yesterday's high and its 200 sma at 31.56/31.55 -- session high 31.50 (BBY) :  

9:32 am Trina Solar responds to U.S. Department of Commerce's announcement of preliminary findings in antidumping investigations on certain solar energy products originating in mainland China and Taiwan; opposes the preliminary findings and believes the allegations made by SolarWorld are contrary to the principles of free and fair trade and are unfounded (TSL) : Co notes the preliminary findings on July 25, 2014 by the U.S. Department of Commerce relating to the antidumping duty investigations concerning imports into the United States of certain crystalline silicon photovoltaic products from mainland China and Taiwan.

  • Trina Solar is one of the China-based suppliers of these products to the United States. The U.S. Department of Commerce preliminarily determined that certain crystalline silicon photovoltaic products from mainland China and Taiwan have been sold in the United States at dumping margins ranging from 26.33% to 58.87% and from 27.59% to 44.18%, respectively. 
  • Trina Solar was a compulsory respondent to the China investigation in which it received a preliminary dumping margin of 26.33%, the lowest among the Chinese exporters. Trina Solar opposes the preliminary findings and believes the allegations made by SolarWorld are contrary to the principles of free and fair trade and are unfounded.

9:31 am Telecoms open strong following WIN news (IYZ) :

  • WIN +25.1%, CTL +20.1%, FTR +19.2%, ALSK +8.1%, CBB +7.4%, FRP +7.2%, IYZ +5.8%, LVLT +5.7%, T +4.5%, S +3.4%, VZ +3.2%, TDS +2%, SBAC +0.4%

9:29 am Denison Mining announces initial summer drilling results from the Gryphon zone at Wheeler River; drill hole WR-569A intersected a wide zone of alteration and mineralization with several high grade intervals, including 9.41% eU3O8 over 3.7 metres and 5.27% eU3O8 over 5.9 metres (DNN) : Co reported initial results from the 2014 summer drilling program at the Gryphon zone on the Wheeler River property in the Athabasca Basin of Saskatchewan.

  • Ten of a planned 20 drill holes have been completed to date, including the extension of two historic drill holes. The extension drill holes ZK-04EXT and ZK-06EXT, along with WR-565, have tested geological targets up dip of the main mineralized zones on the original discovery section. The other seven holes are systematic 50 metre step-outs down dip and along strike of the previously reported mineralization in WR-556 and WR-560. 
  • The highlight from the summer program so far is drill hole WR-569A which intersected a wide zone of alteration and mineralization with several high grade intervals, including 9.41% eU3O8 over 3.7 metres and 5.27% eU3O8 over 5.9 metres. WR-569A is located 40 metres along strike southwest and 40 metres up dip of drill hole WR-556 which intersected 15.3% U3O8 over 4.0 metres and was the Gryphon zone discovery drill hole.
  • Gryphon mineralization intersected to date is 150-200 metres beneath the sub-Athabasca unconformity. The overall geometry is interpreted to be conformable with the general geology in the area - striking to the northeast and dipping moderately to the southeast.

9:27 am CVR Refining confirmed that on July 29, 2014, a fire was reported at the Coffeyville refinery's isomerization unit (CVRR) :

  • Co confirmed that at ~12:30 a.m. on July 29, 2014, a fire was reported at the Coffeyville refinery's isomerization unit. The fire was extinguished at approximately 1:18 a.m. A shutdown of the refinery was conducted. 
  • Company officials are assessing the situation and will provide updates as information becomes available.

9:27 am TCP Capital announces pricing of public offering of 5.4 mln shares of its common stock at $17.33/share for total gross proceeds of ~$93.6 mln (TCPC) : Co announced that it has priced the public offering of 5.4 mln shares of its common stock at $17.33/share for total gross proceeds of ~$93.6 mln. The co has granted the underwriters an option for 30 days to purchase up to an additional 810K shares of common stock. The offering is subject to customary closing conditions and is expected to close on or about August 1, 2014. The offering of the shares will be made under the co's shelf registration statement, which was filed with, and declared effective by, the Securities and Exchange Commission.

  • The co intends to use the net proceeds from this offering to repay amounts outstanding under its revolving credit facilities (which will increase the funds under the revolving credit facilities available to the co to make additional investments in portfolio companies) and to make investments in portfolio companies in accordance with its investment objective and for other general corporate purposes, including payment of operating expenses.
  • Deutsche Bank Securities Inc., BofA Merrill Lynch, Raymond James & Associates, Inc., Keefe, Bruyette & Woods, Inc. and RBC Capital Markets, LLC are acting as joint book-running managers for the offering. Oppenheimer & Co. Inc. is acting as lead manager for the offering.

9:26 am On The Wires (:WIRES) :

  • Scientists from AT&T (T), IBM (IBM) and Applied Communication Sciences announced a proof-of-concept technology that reduces set up times for cloud-to-cloud connectivity from days to seconds.
  • Black Knight Financial Services, a Fidelity National Financial (FNF) co, announced that New American Funding has signed a five-year contract to implement MSP, Black Knight's mortgage and consumer loan servicing platform, to support New American Funding's growing servicing business.
  • LogMeIn (LOGM) announced that the remote connectivity used to connect users of Lutron Electronics' new Caseta Wireless solution with their homes via a smartphone or tablet is powered by LogMeIn's Xively Internet of Things Platform.
  • I.D. Systems (IDSY) has executed a contract with Knight Transportation (KNX) to expand Knight's deployment of VeriWise trailer management solutions from I.D. Systems' Asset Intelligence subsidiary.
  • ARC Document Solutions (ARC) announced that HOK has renewed its managed print services contract with ARC for five years.
  • Double Eagle Hotel & Casino in Cripple Creek, Colo. will utilize the iVIEW Display Manager and Elite Bonusing Suite from Bally Technologies (BYI) across more than 300 video gaming machines to provide its guests with player-centric bonusing events like U-Spin Bonusing, DM Tournaments, Virtual Racing, and Flex Rewards. 
  • Starwood Hotels & Resorts Worldwide (HOT) announced that its Element brand is headed to Syracuse, New York. Element Syracuse Inner Harbor will open in early 2018 as part of a waterfront redevelopment project along the former Barge Canal.
  • Tyler Technologies (TYL) announced that the Superior Court of California, County of Santa Barbara, has selected Tyler's Odyssey court case management software solution to increase public access to information and modernize court operations.

9:23 am On The Wires (:WIRES) :

  • BAE Systems (BAESY) is enhancing its data collaboration and dissemination tool, SIBA, through the interoperability of Mach 1 Development's DocuTRACER document watermarking solution. By combining SIBA with DocuTRACER, SIBA will now have the added capability of tracking who accesses each file shared and what changes were made, while also tracing where each document is distributed.
  • Kodak (KODK) has reached the installation of its 20,000th KODAK SQUARESPOT Thermal Imaging Head. 
  • Regency Centers (REG) announced a groundbreaking ceremony for the start of construction on a new 40,000 square foot Whole Foods Market (WFM) in Schererville, Ind. 
  • Amazon (AMZN) Publishing and Alloy Entertainment, a division of Warner Bros. Television, announced a digital-first imprint that will focus on young adult, new adult and commercial fiction. The new imprint, named Alloy Entertainment, will be part of Amazon Publishing's Powered by Amazon program.
  • Marvel Entertainment in conjunction with Disney (DIS) Consumer Products unveiled a product collection to celebrate Marvel's space adventure, Marvel's Guardians of the Galaxy, in theaters August 1, 2014.
  • Two Sysorex Global (SYRX) subsidiaries announced the opening of joint offices in Carlsbad, California. 
  • Benefitfocus (BNFT) announced that Del Taco has selected the Benefitfocus HR INTOUCH MARKETPLACE to support benefits administration and address relative requirements set forth by the Affordable Care Act. 
  • CSG International (CSGS) announced that Grande Communications has extended its strategic partnership with CSG to drive further differentiation and innovation in Grande's Texas markets. 
  • Vormetric announced that Rackspace Hosting (RAX) has joined the Cloud Partner program, and will be offering encryption and key management services to customers via Vormetric's Transparent Encryption solution.
  • NetSuite (N) announced a number of new customer wins, continuing adoption momentum among the fast-growing pet products industry. Cos announced today include GameWear, Pet Head and That Pet Place.

9:22 am Alderon Iron Ore announces off-take transaction with Glencore (GLNCY) (AXX) :

  • Co announced that The Kami Mine Limited Partnership, an affiliate of Alderon, has entered into an off-take agreement with a subsidiary of Glencore with respect to an off-take transaction pursuant to which Glencore will acquire all of actual annual production from the Kami Project that has not been allocated to Hebei Iron & Steel Group. 
  • Under the terms of the Off-Take Agreement, Glencore will be obligated to purchase, upon the commencement of commercial production, 40% of the actual annual production from the Kami Project up to a maximum of 3.2 million tonnes of the first 8.0 million tonnes of iron ore concentrate produced annually at the Kami Project. The term of the Off-Take Agreement will continue until Kami LP has delivered 48.0 million tonnes of iron ore concentrate to Glencore, which is expected to be 15 years after the commencement of commercial production.

9:19 am Steiner Leisure announces renewal of agreement with Windstar Cruises (STNR) : Co announced that it has entered into an amendment to its agreement with Windstar Cruises, extending the term of its original agreement through April 2017, with automatic successive one-year renewal terms thereafter, cancelable by either party with 90 days advance written notice.

  • Under this agreement, Steiner will continue in its longstanding role as the exclusive provider of spas, salons and fitness centers and related beauty, wellness and aesthetic medicine treatments and services, including acupuncture and dermal fillers, as well as Elemis skincare and body products, on the four Windstar vessels currently sailing, the two vessels coming into service during 2015, and all new vessels that subsequently come into service for Windstar during the agreement term.

9:16 am S&P futures vs fair value: +2.90. Nasdaq futures vs fair value: +6.50. (:WRAPX) : The stock market is on track for a modestly higher start as futures on the S&P 500 trade three points above fair value. Index futures hovered in the red through the majority of the overnight session, but climbed off their lows after European markets opened for action. At this time, indices in Germany, France, and the UK hold gains between 0.6% and 0.9%, while Italy's MIB (+1.1%) outperforms amid strength in bank shares.

Domestically, participants have received another batch of quarterly earnings with Dow components Merck (MRK 58.57, +0.60) and Pfizer (PFE 30.40, +0.30) beating their respective estimates. Corning (GLW 21.50, -0.55), however, is on track for a lower start after missing expectations.

In other corporate news, Windstream (WIN 13.65, +3.11) sports a pre-market gain of 30.1% after announcing plans to spin off its assets into a publically-traded REIT.

Also of note, the Federal Open Market Committee will begin its two-day meeting with a policy statement scheduled to be released tomorrow at 14:00 ET. In all likelihood, the statement will call for another $10 billion taper, reducing the size of monthly asset purchases to $25 billion.

Treasuries are on their highs with the 10-yr yield down three basis points at 2.45%.

9:15 am Adamis Pharma: FDA accepts for review Adamis' NDA for its Epinephrine pre-filled syringe (ADMP) : Co announced that the FDA has accepted for review its NDA for the product, EPINEPHRINE INJECTION, USP, 1:1000 (0.3 mg Pre-filled single dose syringe), for the emergency treatment of allergic reactions (Type I) including anaphylaxis.

Designed as a low cost alternative to market leading auto-injectors, Adamis' PFS provides two single dose syringes of epinephrine, which is considered the drug of choice for immediate administration in acute anaphylactic reactions to insect stings or bites, foods (such as nuts), drugs and other allergens, as well as idiopathic or exercised-induced anaphylaxis.

9:14 am YPF Soc. Anonima's Yacimientos del Sur and Americas Petrogas continue negotiating with the Neuquen province for a contract extension on the Huacalera block (YPF) : Americas Petrogas also confirmed it is in discussion with the government to extend the exploration period of Lomas Ranqueles due to rig availability.

9:06 am Odyssey Marine: proposed program to extract the phosphate sands in the 'Don Diego' preject extensive report demonstrates that there will be minimal environmental impact (OMEX) : Co provided an update on the Environmental Impact Assessment for the proposed "Don Diego" project, which is currently undergoing final reviews prior to government filing.

  • The EIA has now expanded to over 4,600 pages with the inclusion of annexes that feature extensive analyses, tests, reports and models from outside experts and environmental scientists on the proposed program to extract the phosphate sands. The extensive report demonstrates that there will be minimal environmental impact, closely paralleling the extensively studied aggregate dredging programs currently in operation off the coast of the United Kingdom.
  • While the entire Oceanica concession area stretches to the shoreline, the proposed dredging is in a significantly smaller area located in waters 70-90 meters deep and centered ~40 kilometers offshore and does not overlap any fishing concessions. The high phosphate band is in the Mexican Exclusive Economic Zone, but outside territorial waters, and the proposed dredging plan covers less than of 1% of the concession area per year (1.7 square kilometers). The proposed project area is a distinct deposit which features very high phosphate content and does not overlap areas previously explored by other groups in shallower waters nearer shore featuring much lower phosphate content.

9:02 am I.D. Systems: Knight Transportation (KNX) expands deployment of trailer fleet management solutions From I.D. Systems (IDSY) : Co announced it executed a contract with Knight Transportation (KNX) to expand the cos deployment of VeriWise trailer management solutions from I.D. Systems'Asset Intelligence subsidiary. KNX will add more than 400 tracking systems to its trailer fleet under the contract.

9:02 am S&P futures vs fair value: +3.00. Nasdaq futures vs fair value: +6.50. (:WRAPX) : The S&P 500 futures trade three points above fair value.

The Case-Shiller 20-city Home Price Index for May rose 9.3%, while a 10.0% increase had been expected by the Briefing.com consensus. This follows the previous month's increase of 10.8%.

9:02 am MeetMe achieves new mobile traffic record of one million daily active users (MEET) :

  • Co announced it set new records on Monday of this week for the number of daily active users on mobile. For the first time in MeetMe's history, more than one million unique mobile users logged in on a single day. 
  • "It took us seven years to reach 800,000 mobile daily active users. It took us another 19 months to reach 900,000 users, and then just six more weeks to reach one million users."

9:01 am BlackBerry reinforces mobile security leadership with acquisition of secusmart; financial terms not disclosed (BBRY) : Co announced an agreement to acquire Secusmart GmbH, a leader in high-security voice and data encryption and anti-eavesdropping solutions for government organizations, enterprises and telecommunications service providers in Germany and internationally. The co did not mention financial terms of the deal

9:01 am Caterpillar announces $2.5 bln accelerated stock repurchase; expected to be completed in September of 2014 (CAT) :

  • In January of 2014, the company announced a similar $1.7 billion transaction, which was completed in March. 
  • Pursuant to the terms of the accelerated stock repurchase agreements, Caterpillar has agreed to repurchase a total of $2.5 billion of its common stock from Soci t G n rale, with an immediate delivery of approximately 22 million shares based on current market prices. The final number of shares to be repurchased and the aggregate cost per share to Caterpillar will be based on Caterpillar's volume-weighted average stock price during the term of the transactions, which are expected to be completed in September of 2014. In January of 2014, the Board of Directors authorized the repurchase of $10 billion of Caterpillar stock, which will expire on December 31, 2018.

9:00 am GrafTech Intl misses by $0.06, beats on revs (GTI) : Reports Q2 (Jun) loss of $0.05 per share, excluding non-recurring items, $0.06 worse than the Capital IQ Consensus Estimate of $0.01; revenues fell 5.7% year/year to $284.2 mln vs the $280.33 mln consensus. 

  • EBITDA was $28 million as compared to $40 million in the same period of the prior year. 
  • "In a challenging environment, our team remains focused on executing our plan to increase global competitiveness, reduce cost and improve profitability while simultaneously delivering the world class products our customers expect. The previously announced Industrial Materials rationalization actions have been substantially completed and we are now moving forward with additional actions to improve the quality of earnings in our Engineered Solutions segment to drive further value for our shareholders." 
  • Outlook: 
    • According to the World Steel Association, 2014 global steel production increased two percent, excluding China, through the end of June 2014. For the same period, the European Union and the Middle East continued to recover with year-over-year steel production growth rates of four and nine percent, respectively. North America steel production and operating rates continue to show improvement as well. GrafTech's global steel customers remain cautiously optimistic as trends indicate stable to improving conditions for the remainder of this year. 
    • GrafTech targets 2014 EBITDA to be in the range of $135 million to $150 million, a reduction in the company's prior estimate that reflects unanticipated delays in Engineered Solutions customer orders, weaker graphite electrode pricing expectations and costs associated with an unplanned outage at Seadrift in July 2014. The Company targets third quarter EBITDA to be in the range of $30 million to $40 million. The implied improvement in fourth quarter EBITDA is expected to be largely driven by the recovery of Engineered Solutions sales, normalized operations at Seadrift and the benefits of the company-wide rationalization initiatives.

8:55 am GrafTech Intl recognizes impairment charge; announces additional initiatives to increase global competitiveness, reduce cost and improve profitability (GTI) : Co announced an estimated $126 mln non-cash impairment charge and additional initiatives to increase its global competitiveness, reduce cost and improve profitability. These initiatives build on the progress the co has made over the last nine months and are expected to generate $18 mln in annual savings. Together with the $75 mln in annual savings generated by the largely completed Industrial Materials production rationalization, GrafTech expects to generate over $90 mln in ongoing annual cost savings.

8:53 am On The Wires (:WIRES) :

  • ORBCOMM (ORBC) announced that Mahd Telecom, ORBCOMM's Muscat, Oman-based national service provider partner for Oman and other Gulf Cooperation Council countries, has been granted regulatory approval to provide ORBCOMM services in Oman.
  • Intrexon (XON) has further enhanced its collaboration with a global animal health co to enable remote access to Intrexon's suite of technologies via its BeyondBio platform. 
  • Vonage (VG) announced the grant of four additional patents by the USPTO. The co now owns 47 U.S. patents. 
  • Multiple ATK (ATK) technologies supported the third successful launch in 2014 of a United Launch Alliance Delta IV rocket from Cape Canaveral, Florida. Yesterday's launch, the AFSPC-4 mission included two satellites and one secondary payload.
  • WellCare Health Plans (WCG) and the National Committee for Quality Assurance have partnered to provide a discount to health care practices in Georgia that seek recognition as an NCQA Patient-Centered Medical Home.
  • SalesPredict has released an integration into Marketo (MKTO) on the Marketo LaunchPoint Ecosystem.
  • Harris & Harris (TINY) announced that it is one of the founding investors in the expansion of Accelerator, an investment vehicle for emerging biotechnology companies, into New York City.

8:51 am Medbox assigned entire intellectual property portfolio from founder (MDBX) : Co announced that the co's founder has assigned any and all patents and patent applications, trademarks, and related intellectual property to Medbox, Inc. Previously, Medbox had been the exclusive licensee of these patents and IP.

The portfolio contains the recently approved "seed-to-sale" patent, the herbal dispensing patent that was approved in 2010 by the United States Patent & Trade Office, as well as 6 other pending patent applications relating to Medbox products.

8:50 am Concur Tech: Airbnb and Uber partner with Concur to enable next generation of business travel (CNQR) : Concur announced Airbnb and Uber as the latest partners to join its growing platform to improve business travel and streamline expenses. With this partnership, the benefits of collaborative consumption are now available to the business world: Business travelers are given easier ways to book their trips, and complete their expenses, while finance and travel managers maintain greater accuracy, visibility and manageability.

  • Airbnb will release an integration through Concur TripLink, enabling employers to gain full visibility into each booking to ensure Duty of Care requirements are met.
  • Uber's integration with the Concur platform will provide a connected and effortless experience for all Concur business travelers that use Uber. These travelers will be able to request, ride, pay, and automatically expense - all from their mobile phone.
  • In addition, American Express (AXP) is partnering with Concur and Uber to enable American Express Corporate Card Clients in the US to automatically enroll their employees to capture Uber receipts within Concur and have immediate visibility into the spend.

8:48 am Top Ships announces withdrawal of F-1 registration statement (TOPS) : Co announced that it has determined to voluntarily withdraw its Registration Statement on Form F-1 that was filed with the SEC on July 14th, 2014.

Evangelos Pistiolis, CEO of TOP Ships, stated:

  • "The last month, and especially after the filing of our registration statement, our stock price has receded by about 20%. Despite the fact that we have identified some excellent investment opportunities, we decided not to proceed with an offering at this point in time. We are trading at a large discount to our Net Asset Value, perhaps the largest discount in the sector, and we intend to communicate this to investors. We are optimistic that the current disconnect between our Net Asset Value and stock price will narrow. Our overall strategy continues to be focused on growth."

8:45 am Rosetta Genomics announces next-generation sequencing research collaboration with Weizmann Institute of Science's Nancy and Stephen Grand Israel National Center for Personalized Medicine (ROSG) : Co announced that it has entered into a collaborative research and license agreement with Yeda Research and Development Co. Ltd., the commercial arm of the Weizmann Institute of Science.

  • The agreement involves collaboration with the Nancy and Stephen Grand Israel National Center for Personalized Medicine to develop novel methods for the preparation of next-generation sequencing libraries for small RNAs. 
  • The initial goals of this collaboration are to make this type of sequencing more cost effective as well as to minimize sequence-specific biases. 
  • The collaboration also aims at developing computational methods required for data analysis. 
  • The potential developed methods could allow more accurate quantification of microRNAs in various biological samples and pathological conditions.

8:38 am NQ Mobile selected as partner security provider for Brightstar 20:20 (NQ) : Co announced it has been selected as the partner security services provider for Brightstar 20:20 Mobile.

Under the license agreement, NQ Mobile Security will be available at discounted rates for business-to-business customers to use alongside selected manufacturers to enhance device security within the Enterprise space.

8:36 am A.M. Castle reports Q2 adjusted loss per share of ($0.98) misses on revs (CAS) : Reports Q2 (Jun) adjusted loss of $0.98 per share, excluding a $56.2 mln non-cash goodwill impairment charge. The CapIQ Consensus is ($0.38). Revenues fell 8.7% year/year to $249.5 mln vs the $255.23 mln consensus.

  • Second quarter 2014 adjusted EBITDA, which excludes the goodwill impairment charge, was a loss of $5.6 million compared to adjusted EBITDA of $11.6 million in the second quarter of 2013.

  • Gross material margins were 23.2% in the second quarter of 2014, compared to 26.3% in the second quarter of 2013 and 25.6% in the first quarter of 2014.

  • Commentary: "Sales results for the second quarter did not materialize as we had expected.  The positive sales trends we saw at the end of the first quarter and beginning of the second quarter leveled off into May and June. In addition to uneven demand recoveries across our key markets, we had several execution issues.  The primary issues that impacted our results for this quarter were the branch consolidation in our plate business, a system conversion in our oil and gas business and strategic local inventory deployments.  Additionally, we incurred inventory write-offs during the second quarter that impacted gross margin performance..."

8:35 am AK Steel reports Q2 results (AKS) : Reports Q2 (Jun) EPS of $0.02 excluding mark-to-market loss on commodity derivatives, vs. Capital IQ Consensus Estimate of ($0.05) and co guidance for ($0.02)-($0.06); revenues rose 8.9% year/year to $1.53 bln vs the $1.51 bln consensus. Co reported a net after-tax loss of  $0.13 per diluted share.

  • "We experienced meaningful improvements in virtually every aspect of our business in the second quarter as compared to the first quarter of 2014... "Despite facing some significant challenges in the second quarter, on an adjusted basis, we earned net income and we are well-positioned for a much better third quarter and second-half of 2014." 
  • The increase in shipments in the second quarter of 2014 compared to the first quarter of 2014 was primarily a result of the recovery from the planned and unplanned outages at the Ashland Works blast furnace in the first quarter, partially offset by the effects of the extreme winter weather conditions which reduced the availability of iron ore pellets. 
  • Average selling price for Q2 was $1,095 per ton, essentially flat with the first quarter of 2014. 
  • Improved selling prices in the second quarter for many of the company's products were offset by a change in mix, as more shipments of lower value-added products were made to the carbon spot market. 
  • Consistent with its current practice, the company expects to provide detailed guidance for its third quarter results in September.

8:34 am New York Times misses by $0.02, reports revs in-line (NYT) : Reports Q2 (Jun) earnings of $0.07 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.09; revenues fell 0.6% year/year to $388.7 mln vs the $390.52 mln consensus. 

  • Outlook: In the third quarter of 2014, total circulation revenues are expected to be flat compared with the third quarter of 2013. Total advertising revenues in the third quarter of 2014 are expected to decrease in the mid-single digits compared with the third quarter of 2013. Operating costs and adjusted operating costs are each expected to increase in the low- to mid-single digits in the third quarter of 2014 compared with the third quarter of 2013. In addition, the Company expects the following on a pre-tax basis in 2014: Results from joint ventures: loss of $1 to $3 million, Depreciation and amortization: $75 to $80 million, Interest expense, net: $53 to $57 million, and Capital expenditures: $40 to $50 million.

8:32 am LiqTech International announces the appointment of Sune Mathiesen as CEO and Director (LIQT) :

  • Co announced that effective today, Mr. Finn Helmer will be stepping down as CEO.  
  • The board also announced that Mr. Sune Mathiesen has been appointed CEO and a director  
    • Mr. Mathiesen will assume these positions on July 30, 2014.

8:32 am Innodata Announces Acquisition of MediaMiser; base purchase price of C$5.78 mln ($5.38 mln), consisting of an upfront cash payment of C$4.40 mln ($4.10 mln) and deferred payments of C$0.63 mln ($0.58 mln) in July 2015 and C$0.75 mln ($0.70 mln) in July 2016 (INOD) : Co announced it has acquired MediaMiser, an Ottawa, Canada-based provider of automated, real- time traditional and social media monitoring services.

  • Innodata completed the acquisition for a base purchase price of C$5.78 mln ($5.38 mln), consisting of an upfront cash payment of C$4.40 mln ($4.10 mln) and deferred payments of C$0.63 mln ($0.58 mln) in July 2015 and C$0.75 mln ($0.70 mln) in July 2016. 
  • In addition, MediaMiser has the opportunity to receive an earn-out of up to C$5.0 mln ($4.60 mln) in May 2017 based on the extent to which it achieves certain growth-related performance milestones. 
  • Innodata has the option to pay up to 100% of the deferred amount and up to 70% of the earn-out in Innodata common shares. The co was acquired on a debt-free basis. Innodata funded the acquisition from its overseas cash balances.

8:31 am AVX Corp beats by $0.07, misses on revs (AVX) : Reports Q1 (Jun) earnings of $0.24 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus Estimate of $0.17; revenues fell 5.1% year/year to $350.6 mln vs the $356.33 mln consensus.

8:30 am Apple updates MacBook Pro with Retina Display (AAPL) : Co announced that it updated MacBook Pro with Retina display with faster processors, double the memory in both entry-level configurations, and a new, lower starting price for the top-of-the-line 15-inch notebook. Co also lowered the starting price of the non-Retina 13-inch MacBook Pro, a system with MSFT Windows switchers, by $100 to $1,099.

8:30 am Tenet Healthcare and UnitedHealthcare (UNH) sign multi-year agreement (THC) : The co and UnitedHealthcare (UNH) have completed a new, three-year agreement providing UNH's commercial and medicare advantage members with in-network access to the co's 79 hospitals, 193 outpatient centers and more than 1,800 employed physicians throughout the country. 

  • The new agreement is effective August 1, 2014.

8:30 am S&P futures vs fair value: +3.60. Nasdaq futures vs fair value: +8.70. (:WRAPX) : The S&P 500 futures trade four points above fair value.

Markets in Asia ended on a mostly higher note.

  • In economic data: 
    • Japan's Retail Sales fell 0.6% year-over-year (expected -0.5%, previous -0.4%), while Household Spending dropped 3.0% year-over-year (expected -3.8%, prior -8.0%). Separately, the Unemployment Rate ticked up to 3.7% from 3.5% (consensus 3.5%) 
    • South Korea's Current Account surplus narrowed to $6.32 billion from $7.47 billion 
    • Australia's HIA New Home Sales rose 1.2% month-over-month (previous -4.3%) 
------
  • Japan's Nikkei rallied 0.6% to a six-month high. Nissan Motor gained 1.9% following its earnings beat. 
  • Hong Kong's Hang Seng gained 0.9%, advancing for a sixth straight session, and finishing at levels last seen in November 2010. Property stocks saw robust gains with Sun Hung Kai Properties and Cheung Kong Holdings up 4.4% and 2.9%, respectively. 
  • China's Shanghai Composite added 0.2%, climbing to a seven-month high with shares rallying for the sixth session in a row. Technology shares led with China National Software adding 5.3%. 
Major European indices trade higher across the board with Italy's MIB (+1.3%) in the lead.
  • Economic data was limited: 
    • Germany's Import Price Index ticked up 0.2% month-over-month, as expected (previous 0.0%) 
    • Great Britain's Mortgage Approvals came in at 67,000 (expected 63,000, previous 62,000), while Mortgage Lending rose GBP2.10 billion (consensus GBP1.90 billion, previous GBP2.30 billion). Separately, Net Lending to Individuals increased GBP2.50 billion (expected GBP2.60 billion, previous GBP3.00 billion) and BoE Consumer Credit increased GBP420 million (expected GBP800 million, previous GBP720 million) 
    • Spain's Retail Sales ticked up 0.2% year-over-year (expected 1.1%, previous 0.5%) 
------
  • Great Britain's FTSE is higher by 0.6% with support from GKN. The auto parts supplier has jumped 6.4% after beating earnings estimates. On the flip side, BP is lower by 1.5% after missing revenue estimates. Peer Petrofac holds a loss of 1.0%. 
  • Germany's DAX sports an advance of 0.8%. Financials outperform with Deutsche Boerse and Muenchener Re up 1.9% and 0.7%, respectively. 
  • France's CAC trades up 0.9%. Tire maker Michelin is higher by 3.3% after reporting a 13% increase in its first-half profit. Carmaker Renault holds a loss of 3.1% after disappointing with its sales figures. 
  • Italy's MIB outperforms with a gain of 1.3%. Banca di Milano Scarl, Banco Popolare, BMPS, and Unicredit display gains between 1.5% and 3.2%.

8:27 am On The Wires (:WIRES) :

  • LiveDeal (LIVE) announced the launch of its improved Apple (AAPL) IOS app in the iTunes App Store, which includes faster response times, better search function and improved user interface and experience. 
  • Omnicell (OMCL) announced that Atlantic Health System has selected Omnicell to be its new provider of automated medication management solutions and data analytics tools in three acute care medical centers -Morristown Medical Center, Overlook Medical Center and Newton Medical Center.
  • EnerSys (ENS) has helped its customers change out 5,000 lift trucks to battery power as part of its Convert to Electric program. 
  • Dot Hill Systems (HILL) announced that Graphics Systems has selected Dot Hill AssuredSAN storage arrays to support its day-to-day computing, secure its creative assets, support offsite replication, and ensure critical network uptime. 
  • TriQuint Semiconductor (TQNT) announced that it is the first gallium nitride RF chip manufacturer to achieve Manufacturing Readiness Level 9.
  • SPCG Public and Kyocera (KYO) announced the full operational launch of one of Southeast Asia's largest solar power projects. Since 2010, 35 "solar farms" totaling ~ 257 MW have been constructed under the project, and connected to the utility grid in Northeastern Thailand.
  • Silicom (SILC) has achieved its first design win for the Silicom Coleto Creek encryption and compression card. The design win is from one of co's existing customers, a provider of smart network solutions, who will use Silicom's Coleto Creek and Silicom Quad-Port 10G Networking cards in one of its next-generation network appliances. Sales related to these design wins are expected to triple the revs from this customer to ~ $1.5 mln per year.

8:26 am On The Wires (:WIRES) :

  • Leidos (LDOS) was awarded a prime contract by the U.S. Navy Space and Naval Warfare Systems Center Atlantic to provide systems engineering, technical and management support services to the Defense Logistics Agency - Energy. The single-award, IDIQ contract has a one year base period of performance, four one-year options and a total contract value of ~ $25 mln, if all options are exercised.
  • Huron Consulting (HURN) announced the opening of Huron Legal's newest discovery center in San Francisco to support law department and law firm clients on the West Coast and Asia.
  • Splunk (SPLK) announced that MindTouch selected Splunk Cloud to monitor and troubleshoot their cloud-based service in real time and to help provide business analytics to MindTouch customers.
  • Meru Networks (MERU) announced that Graybar has been named a Meru Authorized Distributor. 
  • Aruba Networks (ARUN) announced that the University of Miami and its health system, UHealth-University of Miami Health System, have selected Aruba for an organization-wide wireless network upgrade covering 200 buildings and 11 million square feet of the University's three main campuses, as well as UHealth's three hospitals and two dozen outpatient facilities.
  • SunPower (SPWR) has started construction on the 135-megawatt Quinto Solar Project in Merced County, Calif. In accordance with the company's recently announced holdco strategy, co expects to own and operate the solar power plant during construction. 
  • ServiceNow (NOW) announced that Secure-24, a provider of IT operations, application outsourcing and cloud computing, is using ServiceNow software-as-a-service to create a single system of record for managing and automating IT and business service delivery. 
  • Exelon (EXC) will provide equity financing for 21 MW of Bloom Energy fuel cell projects at 75 commercial facilities in California, Connecticut, New Jersey and New York. The power buyers include new and repeat blue-chip customers, such as AT&T (T), which will use the fuel cells to power operations at nine sites. 
  • InterCloud Systems (ICLD) has been elevated to VMware (VMW) Partner-Enterprise status.

8:24 am Martin Marietta beats by $0.01, beats on revs (MLM) : Reports Q2 (Jun) earnings of $1.34 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $1.33; revenues rose 19.2% year/year to $669.2 mln vs the $628.13 mln consensus. 

  • Heritage aggregates end-use markets compared to 2013 levels: infrastructure shipments to increase slightly; nonresidential shipments to increase in the high single digits; residential shipments to experience double-digit growth; and ChemRock/Rail shipments to increase in the mid-to-high single digits. 
  • Heritage aggregates product line shipments to increase by 6% to 8% compared with 2013 levels. 
  • Heritage aggregates product line pricing to increase by 3% to 5% for the year compared with 2013.
  • Heritage aggregates product line direct production cost per ton to decrease slightly compared with 2013.
  • Heritage vertically integrated businesses to generate between $385 million and $405 million of net sales and $40 million to $45 million of gross profit. 
  • Heritage SG&A expenses as a percentage of net sales to decline compared with 2013, driven in part by $7.9 million of nonrecurring costs related primarily to the 2013 completion of the Company's information systems upgrade, as well as, lower pension costs.
  • Net sales for the Specialty Products segment to be between $225 million and $235 million, generating $85 million to $90 million of gross profit. Interest expense to remain relatively flat compared with 2013. 
  • Capital expenditures to approximate $155 million.

8:24 am FX Energy begins drilling Karmin well in Poland (FXEN) :

  • Co announced that drilling is underway at the Karmin-1 well in the Company's Fences license in western Poland.
  • The well is a planned test of a Rotliegend sandstone target at an estimated depth of 2,460 meters. The prospect is located on trend with the Zaniemysl-3 and Roszkow wells, two of the Co's highest producing discoveries.
  • The Karmin-1 well is the first of three wells in the Fences area that are planned to begin drilling operations prior to the end of 2014. All of these wells are 51% owned and operated by PGNiG.
  • In addition to the Fences wells, FX Energy also plans to begin drilling two wells in the Company's 100% owned Edge license in western Poland. The Edge license covers ~730,000 acres.

8:23 am Gapping up/down (:SCANX) : Gapping down
In reaction to disappointing earnings/guidance
: MERU -16.3%, AFOP -14.4%, HLF -11.8%, TTS -8.6%, GNC -7.9%, NCLH -3.8%, UPS -3.1%, PCL -2.9%, WYNN -2.8%, ETN -2.7%, RYN -1.9%, BP -1.6%, AET -1.5%, LXRX -1.4%, EMN -0.8%, WM -0.8%, TLM -0.6%.

Select solar names showing weakness: YGE -2.9%, JASO -1.9%, JKS -1.1%, CSIQ -0.9%.

Other news: TRGT -24% (to discontinue TC-5214 overactive bladder program; TC-5214 demonstrated mixed results on the co-primary endpoints), KBIO -11.9% (provided update on KB001-A partnership and clinical status; regains global rights to KB001-A from Sanofi Pasteur; announces completion of enrollment in KB001-A Phase 2 cystic fibrosis study), LOCO -8.7% (continued crazi-ness trade in pre-mkt activity), TCPC -3.4% (announced public offering of 5.4 mln common shares), SPEX -3.4% (announces summary of the co's legal proceedings), BDN -3.2% (commenced public offering of 18 mln common shares), ITC -2.7% (still checking), PT -1.3% (still checking), CRWS -1.2% (announced licensing agreement with Carter's (CRI) for infant bedding), ASML -1.2% (STM peer, potentially related to STM downgrade).

Analyst comments: HZNP -3.8% (downgraded to Neutral from Overweight at Piper Jaffray), PCL -2.9% (downgraded to Mkt Perform from Outperform at Raymond James), STM -1.3% (downgraded to Underperform from Mkt Perform at Bernstein), AWI -1.3% (removed from Conviction Buy list at Goldman), DLTR -1.2% (downgraded to Mkt Perform from Outperform at BMO Capital Mkts), THOR -1.1% (downgraded to Market Perform from Outperform at Wells Fargo).

8:22 am Diana Shipping misses by $0.01, beats on revs (DSX) : Reports Q2 (Jun) loss of $0.09 per share, $0.01 worse than the Capital IQ Consensus Estimate of ($0.08); revenues rose 8.0% year/year to $43.2 mln vs the $42.4 mln consensus.

  • Time charter revenues were $43.2 million for the second quarter of 2014, compared to $40.0 million for the same quarter of 2013.
  • This increase was mainly due to the increase in ownership days resulting from the enlargement of its fleet and was partly offset by decreased time charter rates.
  • Average time charter equivalent for Q2 was $12,107/day, down from $12,939 a year ago.
  • Daily vessel operating expenses were $6,419/day and $6,679 a year ago.

8:21 am Gapping up (:SCANX) : Gapping up
In reaction to strong earnings/guidance
: CAMT +17.8%, CGNX +14.3%, SIMO +11.4%, GIG +10.3%, PGTI +9.5%, HLS +8.3%, MAS +7.9%, IDTI +7.2%, XYL +6.4%, CVLT +5.6%, MSTR +4.8%, KLIC +4.4%, DIN +4.1%, SIRI +3.8%, UTHR +3.5%, SAVE +3.4%, LVLT +3%, YNDX +2.8%, AMKR +2.7%, AIXG +2.7%, HW +2.2%, MHFI +2.1%, CYNO +1.7%, ALLY +1.6%, RRC +1.5%, XL +1.5%, ACI +1.4%, SAN +1.3%, MRK +1.1%, AGNC +1%, RAI +1%, MVNR +0.9%, MMC +0.9%, PFE +0.7%, .

Select EU periphery banks/financial related names showing strength: IRE +2.8%, SAN +1.3%, BBVA +1%.

Select renewable energy stocks trading higherfollowing PLUG news: FCEL +5%, BLDP +2.1%, CPST +1.4%.

Other news: GEVO +24.2% (higher follo(announced side-by-side operation of Luverne Plant on track; co producing both isobutanol and ethanol),wing CEO appearance on CNBC; CEO was very positive on co's drug for the treatment of hepatitis B),ARWR +9.3% (higher following CEO appearance on CNBC; CEO was very positive on co's drug for the treatment of hepatitis B),PLUG +8.3% (Walmart (WMT) expands commitment to Plug Power Hydrogen Fuel Cells with GenKey order for seventh N. American distribution center),WIN +7.4% (to spin off assets into publicly traded REIT),IDTI +7.2% (announced that an IDT wireless power receiver was incorporated on LG's latest flagship G3 smartphone; co also reported earnings),KBH +4.4% (still checking),DRI +4% (announced Clarence Otis will step down as Chairman and CEO; Board separated Chairman and CEO roles and appointed Charles Ledsinger, Jr. Independent Non-Executive Chairman of the Board),APTS +1.9% (announced agreement to acquire 1,397 multifamily units),PSDV +1.4% (announced ILUVIEN receives marketing authorization in Norway and approval for reimbursement in Portugal).

Analyst comments: MSTR +4.8% (upgraded to Mkt Outperform from Mkt Perform at JMP Securities),SBH +2.5% (upgraded to Buy from Neutral at Citigroup),PCYC +2.3% (upgraded to Outperform from Mkt Perform at Leerink Partners),COST +2% (upgraded to Buy from Neutral at Goldman; added to Conviction Buy list ),BCS +1.5% (upgraded to Buy from Add at Numis),XL +1.5% (added to Best Ideas list at Morgan Stanley),ZION +1% (upgraded to Mkt Perform from Underperform at Bernstein),FGP +0.8% (upgraded to Neutral from Sell at Citigroup)

8:16 am European Markets Update: FTSE +0.5%, DAX +0.8%, CAC +1.0%, MIB +1.3% (:SUMRX) : Major European indices trade higher across the board with Italy's MIB (+1.3%) in the lead.

  • Economic data was limited: 
    • Germany's Import Price Index ticked up 0.2% month-over-month, as expected (previous 0.0%) 
    • Great Britain's Mortgage Approvals came in at 67,000 (expected 63,000, previous 62,000), while Mortgage Lending rose GBP2.10 billion (consensus GBP1.90 billion, previous GBP2.30 billion). Separately, Net Lending to Individuals increased GBP2.50 billion (expected GBP2.60 billion, previous GBP3.00 billion) and BoE Consumer Credit increased GBP420 million (expected GBP800 million, previous GBP720 million) 
    • Spain's Retail Sales ticked up 0.2% year-over-year (expected 1.1%, previous 0.5%) 
------
  • Great Britain's FTSE is higher by 0.5% with support from GKN. The auto parts supplier has jumped 6.4% after beating earnings estimates. On the flip side, BP is lower by 1.5% after missing revenue estimates. Peer Petrofac holds a loss of 1.0%. 
  • Germany's DAX sports an advance of 0.8%. Financials outperform with Deutsche Boerse and Muenchener Re up 1.9% and 0.7%, respectively. 
  • France's CAC trades up 1.0%. Tire maker Michelin is higher by 3.3% after reporting a 13% increase in its first-half profit. Carmaker Renault holds a loss of 3.1% after disappointing with its sales figures. 
  • Italy's MIB outperforms with a gain of 1.3%. Banca di Milano Scarl, Banco Popolare, BMPS, and Unicredit display gains between 1.5% and 3.2%.

8:16 am Fresh Del Monte beats by $0.20, beats on revs (FDP) : Reports Q2 (Jun) earnings of $1.19 per share, excluding non-recurring items, $0.20 better than the Capital IQ Consensus Estimate of $0.99; revenues rose 10.5% year/year to $1.13 bln vs the $1.06 bln consensus.

  • Gross profit for the second quarter of 2014 was $121.5 million, compared with $105.9 million in the second quarter of 2013.
  • The increase in gross profit was primarily due to higher gross profit in the Co's banana and prepared food business segments, principally the result of increased selling prices of bananas in Europe and the Middle East, driven by favorable exchange rates in Europe, along with increased demand and lower industry supply.
  • The Co also benefited from lower distribution and ocean freight costs

8:15 am Oplink Comms sees Q4 and Q1 revs above consensus; reaffirms Q4 EPS guidance (OPLK) :

  • Co issues upside guidance for Q4 (Jun), sees Q4 (Jun) revs of $51.5 mln (prior $48-52 mln) vs. $50.27 mln Capital IQ Consensus Estimate. 
  • Co issues upside guidance for Q1 (Sep), sees Q1 (Sep) revs of ~$53-57 mln vs. $52.65 mln Capital IQ Consensus Estimate. 
  • Co reaffirmed guidance for Q4 with EPS of $0.05-0.11 versus Capital IQ consensus of $0.08
  • Guidance Details: Oplink expects to report revenue for the fourth quarter of $51.5 million, up from $48.1 million in the prior quarter, and expects to report non-GAAP net income and earnings per share within the range provided in last quarter's guidance. On a GAAP basis, the Company expects to report a net loss for the fourth quarter due to a non-cash charge relating to the Oplink Connected business and the decision to seek strategic alternatives for that business. The Company is finalizing its results and will report full financial results for the quarter and the 2014 fiscal year on August 7, 2014.

8:15 am Illinois Tool beats by $0.01, reports revs in-line; guides Q3 EPS in-line, revs in-line; raises mid-point of FY14 EPS guidance, guides revs in-line (ITW) : Reports Q2 (Jun) earnings of $1.21 per share, $0.01 better than the Capital IQ Consensus Estimate of $1.20; revenues rose 3.5% year/year to $3.72 bln vs the $3.75 bln consensus.

  • Reports record operating margins of 20.5% up 300 basis points versus year-ago period; Enterprise initiatives contribute 120 basis points 
  • Guidance: Co issues inline EPS guidance of $1.19-$1.27 vs. the $1.23 Capital IQ Consensus Estimate; sees Q3 revs growth of 3-4%, which equates to approximately revs of $3.67-$3.71 bln vs. $3.73 bln Capital IQ Consensus Estimate.

    Co raises the midpoint and narrows its EPS guidance range for FY14, sees EPS of $4.50-$4.62, inline with the $4.57 Capital IQ Consensus Estimate; sees FY14 revs growth of 3-4%, which equates to approximately 14.56-$14.70 vs. $14.7 bln Capital IQ Consensus Estimate.

  • Commentary: "The ITW team continued to execute well on our enterprise initiatives and produced strong financial results that give us increased confidence in our ability to achieve our 2014 and five-year enterprise performance goals. As a result, we are narrowing and raising the EPS guidance range for 2014 and now expect EPS to increase 26 percent at the midpoint. In the second quarter, we also successfully completed the sale of the Industrial Packaging segment and the associated share repurchase program. We believe that our business portfolio is well positioned for long-term growth with best-in-class margins and return on invested capital." 

8:11 am GNC Holdings misses by $0.02, misses on revs; lowers FY14 guidance (GNC) : Reports Q2 (Jun) earnings of $0.77 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.79; revenues fell 0.2% year/year to $675.2 mln vs the $705.02 mln consensus.

  • Revenue increased in the Company's retail segment by 0.6%. Revenue decreased in the Company's franchise and manufacturing segments, by 0.4% and 5.8%, respectively. Same store sales as measured on a product only basis decreased 4.0% in domestic co-owned stores (including GNC.com sales) in the second quarter of 2014, as compared to a 6.8% increase in the second quarter of 2013. Adjusting for the impact of the Easter shift, same store sales as measured on a product only basis decreased ~3.3% in domestic company-owned stores.
Co issues downside guidance for FY14, lowers EPS to ~$2.85 from $3.05-3.10 vs. $3.03 Capital IQ Consensus; lowers FY14 revs to ~flat YoY at ~$2.63 bln (from mid single digit growth) vs. $2.74 bln Capital IQ Consensus Estimate; lowers comps to mid single digit decreases from from flat to +LSD.

8:11 am Ecolab beats by $0.01, reports revs in-line; guides Q3 EPS in-line; raises bottom end of FY14 EPS guidance, in-line (ECL) : Reports Q2 (Jun) earnings of $1.03 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $1.02; revenues rose 6.9% year/year to $3.57 bln vs the $3.55 bln consensus.

  • Co issues in-line guidance for Q3, sees EPS of $1.18-1.22, excluding non-recurring items, vs. $1.20 Capital IQ Consensus Estimate.
  • Co raises bottom end of FY14 EPS guidance, in-line,  to $4.14-4.20, excluding non-recurring items, vs. $4.18 Capital IQ Consensus Estimate, from $4.10-4.20.          

8:10 am Rayonier reports Q2 (Jun) results, misses on revs (RYN) : Reports Q2 (Jun) earnings of $0.08 per share, may not be comparable to the Capital IQ Consensus Estimate of $0.47; revenues rose 13.9% year/year to $163.1 mln vs the $428.74 mln consensus. 

Outlook

  • "With the successful completion of the spin-off, we have positioned Rayonier as an international pure-play timberland REIT," commented Nunes. "We look to our portfolio of highly-productive timberlands to generate increasing cash flow as U.S. housing starts gradually improve. We anticipate 2014 results from our timberlands in the U.S. South will be well above the prior year as demand continues to improve. In the Pacific Northwest and New Zealand, we expect higher log inventories in China to result in lower prices in the second half of 2014. Accordingly, we anticipate Forest Resources' full year results will be modestly below our earlier guidance, but well above 2013. In Real Estate, we expect 2014 results will be comparable to 2013. "We are committed to creating shareholder value from an attractive, growing dividend funded by recurring, operational cash flow from our Forest Resources and Real Estate segments. Operational cash flows are expected to benefit from gradually improving U.S. housing starts, continued investments in advanced silviculture, and incremental harvest volumes from timberland acquisitions. Through the first half of 2014, we acquired 35,000 acres of highly productive timberlands for $75 million".

8:10 am UDR beats by $0.01, beats on revs; guides Q3 FFO in-line (UDR) : Reports Q2 (Jun) funds from operations of $0.39 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.38; revenues rose 7.5% year/year to $203.7 mln vs the $198.32 mln consensus.

  • Co issues in-line guidance for Q3, sees FFO of $0.36-0.38 vs. $0.38 Capital IQ Consensus Estimate. 
  • For FY14, co raises FFO per share guidance by $0.04 and FFO as Adjusted and AFFO per share guidance increased by $0.01 at the midpoint.

8:09 am Chesapeake Energy announces transactions increasing exposure to Powder River Basin oil growth and reducing balance sheet complexity; agreed in principle to repurchase Utica subsidiary preferred shares eliminating Chesapeake's highest cost leverage instrument and ~$75 mln in annual cash dividend payments (CHK) : Co announced that it has entered into an agreement with RKI Exploration & Production, to exchange nonoperated interests in ~440K gross acres in the Powder River Basin in southeastern Wyoming. Under the agreement Chesapeake will convey to RKI ~137K net acres and its interest in 67 gross wells, with an average working interest of 22% in the northern portion of the PRB, where RKI is currently designated operator. In exchange RKI will convey to Chesapeake ~203K net acres and its interest in 186 gross wells, with an average working interest of 48% in the southern portion of the PRB, where CHK is currently designated operator. In addition to the exchange of acreage, Chesapeake will pay RKI $450 mln in cash. The transaction, which is subject to certain closing conditions including the receipt of third-party consents, is expected to close in August 2014.

  • Pending exchange with RKI increases Chesapeake's net acreage position and working interest in the Powder River Basin to 388K and 79%, respectively
  • Company estimates potentially recoverable gross resources of more than 2 bln boe on its Powder River Basin acreage
  • Agreed in principle to repurchase Utica subsidiary preferred shares eliminating Chesapeake's highest cost leverage instrument and ~$75 mln in annual cash dividend payments

8:08 am Federal Signal beats by $0.04, misses on revs; guides FY14 EPS in-line (FSS) : Reports Q2 (Jun) earnings of $0.27 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.23; revenues rose 5.4% year/year to $234.6 mln vs the $242 mln consensus.

  • Co issues in-line guidance for FY14, raises EPS to $0.83-0.87 from ~$0.79, excluding non-recurring items, vs. $0.83 Capital IQ Consensus Estimate. 
  • Consolidated second-quarter operating income was $23.9 million, up 31% compared to the second quarter of 2013, and consolidated operating margin improved to 10.2%, compared to 8.2% last year. The increases were primarily attributable to improved operating leverage and increased volumes within the Environmental Solutions Group, which drove improved gross margin, partially offset by operating losses within the Fire Rescue Group. 
  • Orders were $253 million for the quarter, up 21%, and consolidated backlog was $356 million, up 21% compared to a year ago. Corporate expenses were $6.4 million for the quarter, compared to $4.6 million a year ago.

8:08 am Impax Labs: FDA performs inspection of impax's Taiwan facility; FDA issued a Form 483 with ten inspectional observations (IPXL) :

  • Co announced that the FDA performed a general GMP inspection and a Pre-Approval Inspection for RYTARYTM at the Company's Taiwan manufacturing facility from July 21 to July 26, 2014. At the conclusion of the inspection, the FDA issued a Form 483 with ten inspectional observations.
    The Taiwan facility was approved for product manufacturing by the FDA in September 2009 and by Taiwan FDA in July 2010. The facility currently manufactures 12 products for distribution in the United States. 
  • The FDA did not provide any status or classification to these observations and, as is normal practice, will wait until they have received and reviewed the Company's response to provide this information. The Company has also not been informed by the FDA of the impact this Form 483 may have on RYTARY's October 9, 2014 review date under the Prescription Drug User Fee Act.

8:07 am Gentiva Health Svcs: Kindred Healthcare (KND) reiterates commitment to all-cash acquisition of Gentiva for $17.25/share (GTIV) :

  • Co reiterated its commitment to its proposed combination with Gentiva Health Services (GTIV).
  • As previously announced on July 21, 2014, Kindred is willing to enter into a negotiated agreement to acquire all of the outstanding shares of Gentiva for $17.25 per share in cash, subject to due diligence.
  • Kindred is also prepared to enter into appropriate confidentiality and standstill agreements in order to facilitate discussions.
  • Kindred believes that the value Gentiva shareholders would receive through a combination with Kindred is superior to what Gentiva could create on a standalone basis or through a transaction with any third party.

8:07 am DineEquity announces intention to refinance its existing long-term debt through a securitization (DIN) : Co announced its intention to refinance its 3.75% senior secured credit facility and its 9.5% senior notes.

  • As of June 30, 2014, the balances of the cos senior secured credit facility and senior notes were approximately $465 million and $761 million, respectively. 
  • The co intends to replace the senior secured credit facility and senior notes with a new securitized financing facility, expected to be comprised of $1.3 billion of senior term notes and $100 million of variable funding notes. 
  • The net proceeds of the new facility would be used for repayment of existing indebtedness, a make-whole payment related to the redemption of the senior notes, transaction costs associated with the refinancing, and general corporate purposes. 

8:07 am AGCO Corp beats by $0.08, misses on revs; guides FY14 EPS below consensus, revs below consensus (AGCO) : Reports Q2 (Jun) earnings of $1.77 per share, $0.08 better than the Capital IQ Consensus Estimate of $1.69; revenues fell 9.8% year/year to $2.75 bln vs the $2.81 bln consensus. Co issues downside guidance for FY14, sees EPS of approximately $5.00 vs. $5.46 Capital IQ Consensus Estimate; sees FY14 revs of $10.1-10.3 bln vs. $10.34 bln Capital IQ Consensus Estimate.

  • Co says in Q2, it "faced more challenging market conditions which resulted in a sales decline of about 10%...Falling commodity prices negatively impacted farmer sentiment, and demand for agricultural equipment softened across end markets in North America and Europe while remaining weak in South America. Despite the difficult operating environment, our increased emphasis on new products with advanced technologies has been well received by our customers, and our retail market performance continues to be positive."
  • "The outlook for crop production has improved dramatically during the second quarter...Warm dry weather across the US allowed farmers to complete their planting and be in position for attractive yields."
  • Co says global industry demand is softening compared to 2013 and declines are anticipated across all major global agricultural markets, particularly in the professional producer segment. "The negative impact of lower sales and production volumes on gross margins, increased engineering expenditures to meet Tier 4 final emission requirements and market development expenses are expected to be partially offset by improved productivity and cost reduction initiatives."

8:07 am Iconix Brand beats by $0.08, beats on revs; raises FY14 guidance, in-line with expectations (ICON) : Reports Q2 (Jun) earnings of $0.75 per share, $0.08 better than the Capital IQ Consensus Estimate of $0.67; revenues rose 3.3% year/year to $118.9 mln vs the $116.95 mln consensus.

  • Co raises guidance for FY14, sees EPS of $2.60-2.70 vs. $2.64 Capital IQ Consensus Estimate, up from $2.55-2.65 prior guidance; sees FY14 revs of $455-465 mln vs. $458.61 mln Capital IQ Consensus Estimate, up from prior $450-460 mln.
  • "With record results in the second quarter, we continue to demonstrate the power of our business model with our diversified revenue stream and strong free cash flow. As we look to the future we believe we can continue to deliver significant growth and increased value for our Company and shareholders through our global expansion plans, worldwide Peanuts business and additional acquisitions of global iconic brands."

8:07 am DineEquity beats by $0.11, beats on revs (DIN) : Reports Q2 (Jun) earnings of $1.16 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus Estimate of $1.05; revenues rose 1.5% year/year to $160.5 mln vs the $157.58 mln consensus.

  • Second quarter domestic system-wide same restaurant sales increased 3.2% and 0.6% at IHOP and Applebee's, respectively
  • Co reiterates its guidance for fiscal 2014 issued on February 26, 2014, except for IHOP's domestic system-wide same restaurant sales. The Company revised IHOP's sales performance guidance to range between positive 1.0-2.5%. This reflects an increase from the previous expectations of between positive 0.5-2.0%.

8:05 am Unisys wins contract worth up to $28 million to provide data center support services to U.S. Department of Defense (UIS) : Co announced it was awarded a contract from the U.S. Defense Information Systems Agency to provide a range of data center support services:

  • The contract is worth up to $28 million if all options are exercised

8:05 am Enzo Biochem announces August 18, 2014 as date of Markman Hearing in patent infringement lawsuit against leading life sciences companies (ENZ) : Co announced that U.S. District Judge Leonard Stark has established August 18th as the date for a patent claim construction hearing, also called a Markman hearing, involving Enzo Life Science's U.S. Patents Nos. 6,992,180, 7,064,197, and 8,097,405. The hearing will be held in Delaware District Court. One or more of these patents is asserted against Abbott Labs (ABT), Affymetrix (AFFX), Agilent (A), Becton Dickinson (BDX), Gen-Probe, Hologic (HOLX), Illumina (ILMN), Life Technologies (LIFE), Luminex (LMNX), Roche (RHHBY), and Siemens (SIEGY), and their related entities.

8:05 am Oplink Comms announces initiatives to enhance shareholder value; authorizes $40 mln increase to existing share repurchase program; initiates $0.05 quarterly dividend (OPLK) : Co announced a series of initiatives to further enhance shareholder value. Those initiatives include the co's intent to evaluate strategic alternatives for its Oplink Connected unit, including a possible sale of the business; the authorization of a $40 mln increase to its existing share repurchase program; the initiation of a quarterly dividend to shareholders, which will begin with a $0.05 dividend in the first quarter of fiscal 2015; and Oplink's intent to expand its Board of Directors by up to two members in order to add further industry expertise.

  • As the co continues to focus on driving shareholder value and increasing operational efficiencies, Oplink has commenced a process to seek strategic alternatives for Oplink Connected, including a possible sale of all or part of the business. The co has retained Cowen and Company as financial adviser to assist the Board and senior management team in that process. In addition, as a result, Oplink intends to reclassify the operating results of the Oplink Connected business as discontinued operations, beginning in the quarter ending September 28, 2014. 
  • The co's Board of Directors has authorized an increase of $40 mln to its existing stock repurchase program, bringing its current repurchase authorization to $70 mln. The  co repurchased $18.2 mln of its stock in the quarter ended June 29, 2014 and closed the quarter with cash and marketable securities of $140 mln. 
  • Co will initiate a regular quarterly cash dividend to shareholders, which will begin in the first fiscal quarter of 2015 with a dividend of $0.05 per share of the co's common stock. The initial dividend will be payable to stockholders of record as of August 14, 2014 and will be paid on August 28, 2014.

8:05 am Ally Financial beats by $0.09 (ALLY) : Reports Q2 (Jun) earnings of $0.42 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus Estimate of $0.33. 

  • Core ROTCE was 8.4% compared to 3.1% in prior year period. 
  • Adjusted Efficiency ratio was 49% compared to 67% in prior year. 

8:05 am PACCAR beats by $0.01, misses on revs (PCAR) : Reports Q2 (Jun) earnings of $0.90 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.89; revenues (excluding financial services) rose 6.3% year/year to $4.27 bln vs the $4.4 bln consensus. 

  • "Our customers are benefiting from record levels of freight tonnage, good freight rates and the excellent operating efficiency of the new Kenworth and Peterbilt trucks for the on-highway and vocational segments. Truck demand is being driven primarily by the ongoing replacement of the aging truck population, economic growth and some expansion of fleet capacity...Heavy-duty industry truck sales for South America in 2014 are projected to be in the range of 140,000-150,000 vehicles,"

8:04 am MELA Sciences regains compliance with NASDAQ listing requirements (MELA) : Co announced that it has received a letter from The NASDAQ Stock Market advising that the Company has regained compliance with NASDAQ's minimum bid price listing requirement.

8:03 am Quantum and Starboard reach agreement on board of directors composition; co will renominate Jeffrey Smith, CEO of Starboard, and two other current Starboard-recommended directors for election at co's 2014 Annual Meeting of Stockholders (QTM) : Co announced that it has entered into an agreement with Starboard Value LP and its affiliates regarding the membership and composition of Quantum's board of directors.

  •  Under the agreement, Quantum will renominate Jeffrey Smith, CEO of Starboard, and two other current Starboard-recommended directors -- Louis DiNardo, president and CEO of Exar Corp., and Philip Black, former president and CEO of Nexsan Technologies -- for election at Quantum's 2014 Annual Meeting of Stockholders. Quantum will also nominate an additional Starboard-recommended director -- Dale Fuller, chairman of AVG Technologies N.V. -- for election as a successor to Michael Brown, who, as previously announced, is retiring from the board.
  • Also as part of the agreement, Starboard -- which beneficially owns ~ 17 percent of the outstanding shares of Quantum's common stock, including shares underlying Quantum's convertible senior subordinated notes -- will vote all of its shares in favor of each of the Quantum board's nominees at the 2014 Annual Meeting and in accordance with the board's recommendation with respect to any other proposals being voted on at the Annual Meeting, unless Institutional Shareholder Services Inc. recommends otherwise regarding any such proposal. Starboard will also be subject to certain standstill provisions for a period ending prior to the 2015 Annual Meeting of Stockholders. 

8:03 am Synchronoss Tech beats by $0.01, beats on revs (SNCR) : Reports Q2 (Jun) earnings of $0.41 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.40; revenues rose 23.6% year/year to $103.6 mln vs the $102.08 mln consensus. 

  • Gross profit for the quarter was $63.7 million, representing a gross margin of 62%. 
  • Cloud Services non-GAAP revenue was $46.7 million, representing approximately 45% of total revenue. 
  • Activation Services non-GAAP revenue was $56.9 million, representing approximately 55% of total revenue.
  • "Synchronoss is pleased to report strong second quarter results that met or exceeded our expectations and were highlighted by 74% year-over-year Cloud Services revenue growth... During the second quarter, we saw the number of new personal cloud subscribers accelerate as many of our mobile operator customers saw very positive business results, trends we expect to continue throughout the year. It's exciting to see our platforms becoming a vital component of our customers' core business strategies."

8:03 am Buckeye Partners announces agreement to sell its interests in Lodi Gas Storage, L.L.C. (BPL) : Co announced that it has signed a purchase and sale agreement to sell all of the outstanding limited liability company interests in Lodi Gas Storage to Brookfield Infrastructure and its institutional partners for $105 million.

  • The transaction is expected to close in the fourth quarter of 2014 or the first quarter of 2015

8:03 am Cynosure beats by $0.02, beats on revs (CYNO) : Reports Q2 (Jun) earnings of $0.32 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.30; revenues rose 44.9% year/year to $72.6 mln vs the $70.5 mln consensus.

8:03 am IPG Photonics beats by $0.07, beats on revs; guides Q3 EPS in-line, revs in-line (IPGP) : Reports Q2 (Jun) earnings of $0.92 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.85; revenues rose 14.3% year/year to $192.2 mln vs the $182.6 mln consensus.

  • Guidance: Co issues in-line guidance for Q3, sees EPS of $0.88-$1.03 vs. $0.94 Capital IQ Consensus Estimate; sees Q3 revs of $190-$205 mln vs. $195.55 mln Capital IQ Consensus Estimate. 
  • Commentary: "As we enter the second half of 2014, we remain focused on generating profitable growth through expanding our business with existing and new OEMs, developing new applications and introducing new fiber laser-based products. Order flow in Q2 was strong and, with a book-to-bill ratio of greater than one, we anticipate sequential and year-over-year revenue growth for the third quarter. We will continue to target margins in the range of 50% to 55% while making strategic investments to enhance our product pipeline and expand our worldwide infrastructure."

8:02 am Affiliated Managers beats by $0.05, reports revs in-line; Co reported record assets under management of $625 bln (a 33% increase over the year-ago period) (AMG) : Reports Q2 (Jun) earnings of $2.65 per share, $0.05 better than the Capital IQ Consensus Estimate of $2.60; revenues rose 17.6% year/year to $636.3 mln vs the $637.46 mln consensus.

  • Net client cash flows for the second quarter of 2014 were $6.9 bln. Pro forma for a pending investment in Veritas Asset Management, the aggregate assets under management of AMG's affiliated investment management firms were ~$625 bln at June 30, 2014.

8:02 am United Bankshares beats by $0.01 (UBSI) : Reports Q2 (Jun) earnings of $0.48 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.47. United's asset quality continues to outperform its peers. United's percentage of nonperforming loans to loans, net of unearned income of 0.98% at June 30, 2014 compares favorably to the most recently reported percentage of 1.54% at March 31, 2014 for United's Federal Reserve peer group.

8:01 am Brandywine Realty announces upsizing and pricing of public offering of common shares; increased its previously announced underwritten public offering from 18 mln to 19 mln common shares and has priced it for expected gross proceeds of $296.4 mln (BDN) : Co announced that it has increased its previously announced underwritten public offering from 18 mln to 19 mln common shares and has priced it for expected gross proceeds of $296.4 mln before underwriting discounts and commissions and estimated offering expenses payable by us.

  • The co has also granted the underwriters a 30-day option to purchase up to 2.85 mln additional common shares. The offering is expected to close on or about August 1, 2014, subject to customary closing conditions. BofA Merrill Lynch and Citigroup are acting as the joint book-running managers for the offering and propose to offer the shares at prevailing market prices or otherwise from time to time through the NYSE, the over-the-counter market, negotiated transactions or otherwise.

8:01 am Arrow Elec beats by $0.01, reports revs in-line; guides Q3 EPS in-line, revs in-line (ARW) : Reports Q2 (Jun) earnings of $1.43 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $1.42; revenues rose 7.0% year/year to $5.68 bln vs the $5.65 bln consensus.

  • Co issues in-line guidance for Q3, sees EPS of $1.26-1.38 vs. $1.30 Capital IQ Consensus Estimate; sees Q3 revs of $5.25-5.65 bln vs. $5.39 bln Capital IQ Consensus Estimate.

8:00 am Exceed further adjourns extraordinary general meeting of shareholders (EDS) : The co announced that it has further adjourned its extraordinary general meeting of shareholders that was called to authorize and approve the proposed agreement and plan of merger by the co, Pan Long Company Limited, an exempted company with limited liability incorporated under the laws of the Cayman Islands and wholly owned by Mr. Shuipan Lin, and Pan Long Investment Holdings Limited.

  • On July 28, 2014, the independent committee and the board of directors of the company determined that a further adjournment of the meeting would be in the best interests of its shareholders because Mr. Lin had advised the company that he required additional time to obtain the contemplated financing for the proposed transaction. 
  • On July 29, 2014, the extraordinary general meeting of shareholders was held but was immediately adjourned without conducting any business
  • The company intends to resume the adjourned extraordinary general meeting of shareholders as soon as practicable 

7:59 am Darden Restaurants: Starboard issues statement in response to Darden's announced CEO retirement and reduced slate at 2014 annual meeting; says company's reduced slate is hollow tactic designed to maintain problematic, troubling majority status quo on the board (DRI) : Starboard announced it has issued a statement in response to DRI's announcements that Clarence Otis, it's chariman and CEO will be stepping down and that they will be running a reduced slate of nine nominees for twelve board seats.

  • Starboard also announced that it expects to file preliminary proxy materials with the SEC today seeking the election of at least a majority of the available seats on DRIs board at the 2014 annual meeting.
  • Starboard applauds the retirement of Otis but believes the board's decision to nominate nine of the twelve director candidates is a transparent tactic designed to maintain the status quo.

Starboard maintains an 8.1% stake in DRI

7:59 am S&P futures vs fair value: +2.50. Nasdaq futures vs fair value: +6.20. (:WRAPX) : U.S. equity futures hover near their pre-market highs amid upbeat action overseas. Participants have received another batch of quarterly earnings since yesterday's closing bell with the likes of BP (BP 49.78, -0.86), Pfizer (PFE 30.26, +0.16), Merck (MRK 58.59, +0.62), and UPS (UPS 99.90, -2.76) in focus. The S&P 500 futures trade almost three points above fair value.

Reviewing overnight developments:

  • Asian markets posted gains. China's Shanghai Composite +0.2%, Japan's Nikkei +0.6%, and Hong Kong's Hang Seng +0.9% 
    • In economic data: 
      • Japan's Retail Sales fell 0.6% year-over-year (expected -0.5%, previous -0.4%), while Household Spending dropped 3.0% year-over-year (expected -3.8%, prior -8.0%). Separately, the Unemployment Rate ticked up to 3.7% from 3.5% (consensus 3.5%) 
      • South Korea's Current Account surplus narrowed to $6.32 billion from $7.47 billion 
      • Australia's HIA New Home Sales rose 1.2% month-over-month (previous -4.3%) 
    • In news: 
      • Despite the decline in retail sales, Bank of Japan member Koji Ishida voiced optimism about the country's economy and said the central bank is ready to make adjustments to its policy if needed
  • Major European indices trade higher across the board. Germany's DAX +0.5%, Great Britain's FTSE +0.5%, and France's CAC +0.6%. Elsewhere, Italy's MIB +1.1% and Spain's IBEX +0.6% 
    • Economic data was limited: 
      • Germany's Import Price Index ticked up 0.2% month-over-month, as expected (previous 0.0%) 
      • Great Britain's Mortgage Approvals came in at 67,000 (expected 63,000, previous 62,000), while Mortgage Lending rose GBP2.10 billion (consensus GBP1.90 billion, previous GBP2.30 billion). Separately, Net Lending to Individuals increased GBP2.50 billion (expected GBP2.60 billion, previous GBP3.00 billion) and BoE Consumer Credit increased GBP420 million (expected GBP800 million, previous GBP720 million) 
      • Spain's Retail Sales ticked up 0.2% year-over-year (expected 1.1%, previous 0.5%) 
    • Among news of note: 
      • Italy's MIB outperforms amid strength in bank shares. Banca di Milano Scarl, Banco Popolare, BMPS, and Unicredit display gains between 1.5% and 2.6%
In U.S. corporate news:
  • BP (BP 49.79, -0.85): -1.7% in reaction to below-consensus revenue 
  • Corning (GLW 20.20, -1.85): -8.4% after reporting a one-cent miss on better than expected revenue 
  • Herbalife (HLF 59.94, -7.54): -11.2% after missing the Capital IQ consensus estimate by two cents on below-consensus revenue. Guidance, however, was in line with analyst expectations 
  • Masco (MAS 21.45, +1.18): +5.8% after beating earnings and revenue expectations 
  • Merck (MRK 58.59, +0.62): +1.1% after beating on both metrics 
  • Pfizer (PFE 30.26, +0.16): +0.5% following its one-cent beat on better than expected revenue 
  • UBS (UBS 18.20, -0.12): -0.7% despite reporting better than expected results
  • UPS (UPS 99.90, -2.76): -2.7% after missing bottom-line estimates and lowering its guidance 
The Case-Shiller 20-City Index for May (Briefing.com consensus 10.0%) will be released at 9:00 ET, while July Consumer Confidence (consensus 85.6) will cross the wires at 10:00 ET.

7:58 am Minerals Tech's Minteq unit acquires new cost-per-steel-ton contract for BOF refractory maintenance at Bhushan Steel, India (MTX) : Co announced that its Refractories business unit, Minteq International Inc., has signed an agreement with Bhushan Steel Ltd. of India, to provide cost-per-ton steel refractory maintenance for two of Bhushan's Basic Oxygen Furnaces at its new steel-making facility in Angul in the state of Orissa. This is the first CPT contract Minteq has signed in India.

  • The three-year agreement provides for Total Refractory Maintenance for the BOF facility at Angul, which includes supply of refractory maintenance products and application of refractory material by Minteq's Steel Mill Service systems. The service system includes deployment of application team, supervision and application equipment. The five mln metric ton per year steel mill is configured with two 180 metric ton BOFs, two 180T Conarc Furnaces, two ladle refining furnaces, a vacuum degassing system and slab casters.

7:54 am Arch Coal beats by $0.03, reports revs in-line; Co sees sales volume of 130.3-136.9 mln tons of thermal and met coal for 2014. (ACI) : Reports Q2 (Jun) loss of $0.46 per share, $0.03 better than the Capital IQ Consensus Estimate of ($0.49); revenues fell 6.9% year/year to $713.8 mln vs the $715.27 mln consensus.

  • Arch's Q2 cash margin per ton expands 71% versus Q1
  • Strong Q2 cost control drives full year 2014 cost guidance reduction
  • Arch enhances metallurgical platform to lower costs and improve quality
  • During Q2 of 2014, increased shipments, higher pricing and strong cost control drove margin expansion in each of our operating regions compared with Q1," said John W. Eaves, Arch's president and chief executive officer.
  • As of June 30, 2014, Arch had a total liquidity position of roughly $1.25 bln, with nearly $1.0 bln of that liquidity in the form of cash and short-term investments.
  • The company had no borrowings under its revolving credit facility at June 30, 2014, and has no long-term debt maturities due until mid-2018.
  • "Our mines turned in solid performances in Q2, supported by cost reductions that improved margins across our operating platform versus Q1," said Lang.
  • "Looking ahead, we expect strong cost performances in our Appalachian and Bituminous Thermal segments to continue, and we plan to remain nimble in response to market conditions."
  • Co sees total sales volume of 130.3-136.9 mln tons of thermal and met coal for 2014. 
Operating margin per ton of ($0.21) improved from 1Q14 ($1.61), but is worse than a year ago of $0.18.

Market Trends
  • Arch believes the current coal market downturn is unsustainable over the long term. While global metallurgical coal prices are expected to remain soft throughout 2014, global steel production, a driver of metallurgical coal demand, has increased by 2.5% year-to-date and appears poised for continued expansion.
  • Announced closures of higher-cost metallurgical coal supply have accelerated as 2014 has progressed, and many capital growth projects have been delayed or cancelled as current prevailing prices do not justify incremental investment.
  • Arch expects all of these factors to bring better balance to global metallurgical markets over time. Adding to near-term pressures, prevailing soft seaborne thermal and metallurgical prices are likely to limit U.S. coal exports this year.
  • Arch expects industry-wide coal exports from the United States to decline below 100 mln tons for 2014 compared with 2013 export levels of 117 mln tons. In the domestic coal market, U.S. electric generation grew 2% through the first half of 2014, according to the Edison Electric Institute.
  • Coal stockpiles at U.S. power generators have declined markedly this year, due to higher competing fuel prices and increased power load. With prevailing mild summer temperatures to date, Arch now expects domestic coal consumption to increase by ~20 mln tons in 2014 compared to last year.
  • Even with the mild summer weather, however, coal stockpiles at power generators are likely to shrink -- and could end the year at around 50 days of supply. Customer coal inventories in some regions, such as the Powder River Basin, could decline to below-normal levels.

7:54 am UPS misses by $0.04, beats on revs; loweres FY14 EPS below consensus; US daily package volume +7.4% (UPS) : Reports Q2 (Jun) earnings of $1.21 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus Estimate of $1.25; revenues rose 5.6% year/year to $14.27 bln vs the $14.11 bln consensus.

  • Co issues downside guidance for FY14, lowers EPS to $4.90-5.00 for $5.05-5.30, excluding non-recurring items, vs. $5.08 Capital IQ Consensus Estimate. 
  • US: U.S. Domestic revenue increased 5.2% to $8.7 bln. Daily package volume improved 7.4%, led by gains in UPS Ground and Deferred up 8.1% and 5.4%, respectively. Adjusted operating profit was $1.2 bln, up 3.0% over the prior year second quarter. Second quarter results reflect additional operating costs associated with rail service performance and investments made to enhance operational capabilities and expand network capacity. 
  • International Package: International small package revenue climbed 6.2% or $190 mln to $3.3 bln. Strong growth in Export shipments drove revenue expansion in the segment. Adjusted operating profit improved 4.4% to $471 mln. On a reported basis, operating profit declined $7 mln to $444 mln as a result of the post-retirement liability transfer previously mentioned. Export shipments increased 9.1% over the prior year, with growth from all regions of the world. Europe led the way with daily shipment gains of more than 13% while Asia was up more than 6%. Non-U.S. Domestic products were 4.8% higher, driven by growth throughout Europe. 
  • The company announced plans to increase 2014 operating expense for capacity and peak related projects to a total of $175 mln. Some of these expenditures include: expanded operations on the day after Thanksgiving, accelerated deployment of route optimization software, IT development, additional hub sorts and temporary capacity. While all the projects will improve peak season performance, many will provide benefits throughout the year.

7:53 am Aixtron misses by $0.04, misses on revs; reiterates 2014 guidance (AIXG) : Reports Q2 (Jun) loss of 0.10 per share, 0.04 worse than the Capital IQ Consensus Estimate of ( 0.06); revenues rose 2.0% year/year to 46.2 mln vs the 47.54 mln consensus.

  • AIXTRON's Q2/2014 equipment order intake, at EUR 38.2m, showed a year-on-year increase of 25% from the EUR 30.5m in Q2/2013. Sequentially, the equipment order intake was also up (Q1/2014: EUR 37.7m), representing the fifth consecutive quarter of rising orders. The total equipment order backlog of EUR 66.4m as at June 30, 2014 was 14% higher than the 2014 opening backlog of EUR 58.1m.
  • Management reiterates its original guidance for fiscal year 2014 made at the end of February, for revenues to be in line with those of last year. Concurrently, the Company is not expected to be profitable on an EBIT basis over the course of this year. Nevertheless, Management continues to expect a year-on-year improvement in earnings due to progress made in cost savings and restructuring.

7:52 am Wynn Resorts beats by $0.17, misses on revs (WYNN) : Reports Q2 (Jun) earnings of $2.11 per share, excluding non-recurring items, $0.17 better than the Capital IQ Consensus Estimate of $1.94; revenues rose 6.0% year/year to $1.41 bln vs the $1.43 bln consensus. 

Wynn Palace

  • The Company is currently constructing Wynn Palace, a fully integrated resort containing a 1,700-room hotel, performance lake, meeting space, casino, spa, retail offerings, and food and beverage outlets in the Cotai area of Macau. In July 2013, we signed a $2.6 bln guaranteed maximum price (GMP.TO) contract for the project's construction. The total project budget, including construction costs, capitalized interest, pre-opening expenses, land costs and financing fees, is $4.0 bln. We expect to open our resort on Cotai in the first half of 2016. 
Macau
  • In the second quarter of 2014, net revenues were $960.6 mln, a 3.2% increase from the $930.9 mln generated in the second quarter of 2013. Adjusted property EBITDA in the second quarter of 2014 rose to $307.0 mln, up 5.8% from $290.1 mln in the second quarter of 2013. 
    • Table games turnover in the VIP segment was $26.4 blnfor the second quarter of 2014, an 11.7% decrease from $29.9 bln in the second quarter of 2013. VIP table games win as a percentage of turnover (calculated before commissions) for the quarter was 2.93%, within the expected range of 2.7% to 3.0% and in-line with the 2.94% experienced in the second quarter of 2013. 
    • Table games win in the mass market segment increased by 43.3% to $311.0 mln in the second quarter of 2014. Mass market table games win per unit per day increased by 53.0% to $17,852 from $11,671 in the second quarter of 2013. 
Vegas
  • For the quarter ended June 30, 2014, net revenues were $451.4 mln, a 12.5% increase from $401.4 mln in the second quarter of 2013. Adjusted property EBITDA reached a quarterly record of $160.4 mln, up 18.3% from $135.7 mln generated in the comparable period in 2013, the result of both a 5.9 percentage point increase in table games win percentage and a 7.3% increase in room revenues.

7:51 am Carpenter Tech misses by $0.03, misses on revs, says SepQ will be challenging (CRS) : Reports Q4 (Jun) earnings of $0.71 per share, $0.03 worse than the Capital IQ Consensus Estimate of $0.74; revenues fell 1.2% year/year to $604.6 mln vs the $611.1 mln consensus.

  • Co says "Looking forward, our visibility has improved as our SAO sales backlog is up 32% vs the prior year. Our 1Q15 (Sep) will be challenging as we expect normal seasonality combined with a mix similar to 4Q14 (Jun). We expect to see the impact of our price increases and mix improvement actions beginning in [DecQ]."
  • "Our new Athens facility remains critical to supporting our targeted earnings growth during the remainder of fiscal year 2015 and beyond. We produced 1,000 tons of saleable product in the fourth quarter and are making significant progress obtaining internal and customer qualifications....As we progress through the year, we expect the Athens facility to enable us to ship higher volumes, with a richer mix, at a lower cost per ton."

7:47 am Universal Health announces offering of $300.0 mln aggregate principal amount of senior secured notes due 2019 and $300.0 mln aggregate principal amount of senior secured notes due 2022 (UHS) : Co announced offering of $300.0 million aggregate principal amount of senior secured notes due 2019 and $300.0 million aggregate principal amount of senior secured notes due 2022. The co intends to use the net proceeds of the offering to refinance existing indebtedness.

7:46 am On The Wires (:WIRES) :

  • NanoString Technologies (NSTG) has expanded the capabilities of its nCounter Elements General Purpose Reagents with the addition of a universal junction probe design that offers specific detection and analysis of known fusion genes. The co announced the availability of the new design capability to early access customers at the 2014 American Association for Clinical Chemistry annual meeting in Chicago. 
  • TransAct Technologies (TACT) announced that the new Hard Rock Hotel & Casino Sioux City, Iowa will have the co's Epic 950 printer installed in all of the new property's 850 slot machines when it opens on Aug 1, 2014.
  • Alliance Data Systems (ADS) announced its Retail Services business has signed a new long-term agreement to provide co-brand credit card services for BJ's Wholesale Club. The BJ's credit program will convert to MasterCard (MA).

7:43 am Asian Markets Close: Nikkei +0.6%, Hang Seng +0.9%, Shanghai +0.2% (:SUMRX) :

  • Markets gained across most of Asia. 
  • Japanese data was mixed as household spending (-3.0% YoY actual v. -3.7% YoY expected) beat and retail sales (-0.6% YoY actual v. -0.4% YoY expected) missed. 
  • Australia's HIA New Home Sales climbed 1.2% MoM. 
  • South Korea's current account surplus narrowed to $7.9 bln ($9.1 bln previous). 
  • Japan's Nikkei (+0.6%) rallied to a six-month high. Nissan Motor gained 1.9%, seeing outperformance following its earnings beat. 
  • Hong Kong's Hang Seng (+0.9%) advanced for a sixth straight session, and finished at levels last seen in November 2010. Property stocks saw robust gains with Sun Hung Kai Properties and Cheung Kong Holdings up 4.4% and 2.9%, respectively. 
  • China's Shanghai Composite (+0.2%) climbed to a seven-month high as shares rallied for a sixth session. Technology shares led with China National Software adding 5.3%. 
  • India's Sensex was closed for Ramzan. 
  • Australia's ASX (+0.2%) closed at its best level in more than six years. All of the 'big four' banks gained with NAB up 1.2% to pace the advance. 
  • Regional Decliners: Thailand -1.1%...Taiwan -0.3% 
  • Regional Advancers: Vietnam +0.5%...South Korea +0.6% Closed: Indonesia, Malaysia, Philippines
  • Fx: USDCNY fell to 6.1812, a four-month low...USDINR ticked up to 60.12...USDJPY +15 pips @ 102.00...AUDUSD -10 pips @ .9395

7:42 am Commvault Systems beats by $0.04, beats on revs (CVLT) : Reports Q1 (Jun) earnings of $0.44 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.40; revenues rose 13.5% year/year to $152.6 mln vs the $150.89 mln consensus. 

  • "We began fiscal year 2015 with a solid first quarter, which was highlighted by year-over-year revenue growth of 14% and year-over-year operating cash flow growth of 44%. Our year-over-year revenue growth was driven by a record percentage of enterprise software revenue (software transactions greater than $100,000), a record average enterprise deal size and solid results from our services organization."

7:39 am NextEra Energy reports Q2 results (NEE) : NEP continues to expect the initial portfolio to yield EBITDA of about $250 million and cash available for distribution of about $87 million for the 12 months ending June 2015, and these results are expected to support an initial distribution at an annualized rate of $0.75 per unit, assuming normal weather and operating conditions. The company expects unit distributions to grow about 12 to 15 percent per year for 2 at least three years, which is expected to be achievable only with the acquisition of assets from the Right of First Offer (ROFO) portfolio, assuming current market conditions. 

  • Reports Operating Revenues of $86.7 mln compared to $34.46 mln in prior year. 
  • Reports Operating Income of $50.4 mln compared to $18.8 mln in prior year.
  • Co reports net income of $22.1 mln compared 6to $7.68 mln in prior year.

7:39 am Waste Mgmt beats by $0.01, misses on revs; Co plans to meet or exceed its FY14 EPS guidance; Co executes agreements to repurchase $600 mln in shares, sells Wheelabrator Technologies for $1.94 bln in cash (WM) : Reports Q2 (Jun) earnings of $0.60 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.59; revenues rose 1.0% year/year to $3.56 bln vs the $3.61 bln consensus.

  • Co plans to meet or exceed its FY14 EPS guidance of $2.30-2.35, excluding non-recurring items, vs. $2.36 Capital IQ Consensus Estimate.
  • Co now expects to meet or exceed the high end of its full-year free cash flow target of between $1.4-1.5 bln.
  • "We still anticipate that our full-year yield will be greater than 2.0%, compensating for negative volumes in the second half of 2014. We also expect to see continued improvement from our cost control programs in 2014.
In a separate release, signed a definitive agreement for $1.94 bln divestiture of Wheelabrator Technologies, Inc. to Energy Capital Partners (See our 07:37 post)
  • Co has agreed to sell Wheelabrator Technologies ("WTI") to an affiliate of Energy Capital Partners for $1.94 billion in cash. Wheelabrator owns or operates 17 waste-to-energy facilities and four independent power-producing facilities in the United States that process over 7.5 million tons of waste and have a combined electric generating capacity of 853 megawatts.
"During the first half of the year we suspended share repurchases while negotiations to sell Wheelabrator were ongoing, but with the proposed sale now announced, we have entered into an accelerated share repurchase program to spend the full amount of our previously announced $600 million authorization on share repurchases over a maximum term of approximately six months."

7:37 am Waste Mgmt signs definitive agreement for $1.94 bln divestiture of Wheelabrator Technologies to Energy Capital Partners (WM) : Co agreed to sell Wheelabrator Technologies Inc. to an affiliate of Energy Capital Partners for $1.94 bln in cash. Wheelabrator owns or operates 17 waste-to-energy facilities and four independent power-producing facilities in the United States that process over 7.5 mln tons of waste and have a combined electric generating capacity of 853 megawatts. It also has four ash monofill landfills, three transfer stations and an ongoing development and construction project in the United Kingdom. During 2013, WTI generated ~$845 mln in total revenue.

  • In conjunction with the sale, Waste Management will enter into a long-term agreement to supply waste to certain WTI facilities upon closing.
  • Waste Management intends to use the net proceeds from the transaction to drive incremental shareholder value by acquiring assets related to the core business and repurchasing shares, while maintaining a strong balance sheet.
  • "We would expect that the use of proceeds will include a combination of accretive acquisitions, share repurchases and debt repayment."

7:35 am NextEra Energy Partners reported net income for the second quarter of 2014 of approximately $22 million (NEP) : Outlook:

  • NEP continues to expect the initial portfolio to yield EBITDA of about $250 million and cash available for distribution of about $87 million for the 12 months ending June 2015, and these results are expected to support an initial distribution at an annualized rate of $0.75 per unit, assuming normal weather and operating conditions. 
  • The company expects unit distributions to grow about 12 to 15 percent per year for at least three years, which is expected to be achievable only with the acquisition of assets from the Right of First Offer (ROFO) portfolio, assuming current market conditions.

7:35 am S&T Bancorp beats by $0.05 (STBA) : Reports Q2 (Jun) earnings of $0.49 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.44.

  • Return on average assets and return on average equity both improved to 1.26% and 9.99% compared to 1.23% and 9.83% in the first quarter of 2014.
  • Solid loan growth continues with an increase of $97.2 mln in total portfolio loans compared to March 31, 2014, representing an 11% annualized growth rate.
  • Net interest margin (:FTE) expanded five basis points to 3.56% and net interest income increased $1.3 mln compared to the first quarter of 2014.
  • Total nonperforming loans decreased $6.1 mln, or 29%, to only $14.9 mln at June 30, 2014 compared to $21.0 mln at March 31, 2014.

7:34 am ContraFect (Nasdaq: CFRXU) prices upsized 6 mln unit IPO at $6.00 per unit, at top end of $5-6 expected range (:IPOXX) : Co originally planned to offer 3.64 mln units and raised the offering size to 5.5 mln units.

7:34 am Micros Systems: expiration date of tender offer for Micros Systems, Inc. shares extended to August 15, 2014; extension is in accordance with Oracle (ORCL) merger agreement (MCRS) : Oracle (ORCL) announced that, in accordance with the terms of its merger agreement with Micros Systems, Inc., Rocket Acquisition Corporation, a subsidiary of OC Acquisition, a subsidiary of Oracle Corporation, has extended its all-cash tender offer for $68.00/share for all of the issued and outstanding shares of common stock, par value of $0.025/share, of MICROS Systems, Inc. to 12:00 Midnight, New York City time, at the end of August 15, 2014, unless further extended. The tender offer was previously set to expire at 12:00 Midnight, New York City time, at the end of July 31, 2014.

7:33 am EMCOR Group reports EPS in-line, misses on revs; raises bottom end of FY14 EPS in-line, lowers FY14 revs below consensus (EME) : Reports Q2 (Jun) earnings of $0.61 per share, in-line with the Capital IQ Consensus Estimate of $0.61; revenues rose 0.1% year/year to $1.56 bln vs the $1.67 bln consensus.

  • Co issues guidance for FY14, raises bottom end of EPS to $2.50-2.70 from $2.45-2.70 vs. $2.64 Capital IQ Consensus Estimate; lowers FY14 revs to ~$6.6 bln from ~$6.8 bln vs. $6.75 bln Capital IQ Consensus Estimate.
  • Backlog as of June 30, 2014 was $3.64 billion, an increase of 3.6% from $3.51 billion at the end of the 2013 second quarter and an increase of 8.2% from $3.36 billion as of December 31, 2013. Domestic backlog grew by $138 million, which included backlog growth in the U.S. Electrical and Mechanical Construction segments and in the U.S. Industrial Services segment, offset by expected declines in the U.S. Building Services segment due to our 2013 service contract portfolio reshaping. Backlog growth in the commercial, transportation, healthcare and water/wastewater sectors was offset by declines in the industrial, institutional and hospitality/gaming sectors.

7:33 am Anixter misses by $0.06, misses on revs; sees FY14 revs at low end of prior range (AXE) : Reports Q2 (Jun) earnings of $1.57 per share, excluding non-recurring items, $0.06 worse than the Capital IQ Consensus Estimate of $1.63; revenues rose 0.4% year/year to $1.59 bln vs the $1.64 bln consensus.

  • Co states: "For the year, we expect to be at the low end of our previous estimate of mid-single-digit organic sales growth"

7:32 am Advaxis and the University of Pennsylvania restructure their exclusive license agreement; eliminates a milestone payment due upon the commencement of a Phase 3 clinical trial in humans and modifies milestone payments relating to first regulatory approval which Advaxis would owe to Penn (ADXS) : The co announced that they and the University of Pennsylvania signed an amendment to restructure their 2002 exclusive license.

  • The restructured agreement eliminates a milestone payment due upon the commencement of a Phase 3 clinical trial in humans and modifies milestone payments relating to first regulatory approval which the co would owe to Penn.
  • In exchange, Penn will receive an increased royalty rate on net sales, as well as enhanced milestone payments from the co when cumulative global sales of between $250M and $2B are reached.

7:32 am FirstService beats by $0.12, beats on revs (FSRV) : Reports Q2 (Jun) adj. earnings of $0.74 per share, $0.12 better than the Capital IQ Consensus Estimate of $0.62; revenues rose 14.7% year/year to $660.7 mln vs the $648.22 mln consensus. 

"Colliers International grew revenues by 22% with EBITDA up by more than 40% and margins up 170 basis points to 9.6%. FirstService Residential continued to deliver excellent top-line growth with multiple contract wins across the entire North American platform. FirstService Brands also had an outstanding quarter with EBITDA up 27% and margins up 250 basis points to almost 22%. Finally, cash flows almost tripled from the same quarter one year ago. With strong operating results and cash flow, ample financial capacity and multiple growth opportunities, FirstService is better positioned than ever to continue delivering outstanding results for the balance of 2014 and beyond."

7:31 am Martha Stewart beats by $0.01, misses on revs (MSO) : Reports Q2 (Jun) earnings of $0.03 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.02; revenues fell 10.9% year/year to $37.6 mln vs the $38.5 mln consensus. 

  • "For the past several months, we have been focused on managing our costs and expenses without in any way sacrificing our high quality content and designs. We saw the efforts of many of our talented staff pay off this quarter, which is the first profitable second quarter our Company has achieved since 2008. With the business stabilized, our business unit realignments behind us, and efficiencies and productivity measures being rigorously monitored, we are now keenly focused on the many growth opportunities ahead of us across all verticals and all geographies. As I have said on several recent occasions, the best years for MSLO are indeed ahead of us."

7:31 am Mechel Steel reports obtaining SGS certificate for Elga deposit's coking coal (MTL) : Co reported that SGS confirmed the high quality of the Elga deposit's coking coal.

  • Independent lab testing showed that samples of coking coal from the Elga deposit are up to Russian and international standard.
  • A sample of coking coal was also successfully tested by a major Japanese steelmaking holding and its experts concluded that the Elga deposit's coking coal can be efficiently used in making coke.

7:31 am Vishay beats by $0.02, reports revs in-line; guides Q3 revs in-line (VSH) : Reports Q2 (Jun) earnings of $0.27 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.25; revenues rose 7.4% year/year to $642 mln vs the $644.5 mln consensus. Co issues in-line guidance for Q3, sees Q3 revs of $630-670 mln vs. $650.93 mln Capital IQ Consensus Estimate.

7:25 am On The Wires (:WIRES) :

  • Cepheid (CPHD) announced recent completion of a record shipment of 774 GeneXpert systems to a single country (China) in one quarter. Combined with systems placed previously, the Q2 placements bring the cumulative total of GeneXpert systems in China to more than 970. The purchase of almost 170,000 Xpert MTB-RIF cartridges will support the initial roll out of the systems throughout the rest of 2014. 
  • NASDAQ OMX (NDAQ) and trueEX Group have announced a five-year partnership during which NASDAQ OMX will provide the SMARTS Integrity market surveillance platform to trueEX. The solution is now live and monitors both trueEX's Designated Contract Market and its Swap Execution Facility. 
  • Rexford Industrial Realty (REXR) has acquired Avenue Kearny, a 138,980 square foot industrial park located in Santa Clarita for $11.5 mln, or $83 per square foot. The acquisition was funded with proceeds from the co's revolving credit facility.

7:24 am USDJPY Fights for Eighth Day of Gains: 10-yr: +02/32..2.476%..USD/JPY: 101.96..EUR/USD: 1.3434 (:SUMRX) :

  • The Dollar Index hovers little changed near 81.05.
  • EURUSD is -5 pips @ 1.3435 as trade checks up near eight-month lows. Early action has mirrored yesterday's activity as a lack of tradable news and data has kept the single currency in a tight 15 pip range. 
  • GBPUSD is -25 pips @ 1.6960 as selling resumes after yesterday's bid snapped an eight-day losing streak. Today's selling has trade contending with its lowest close since the middle of June, and comes after net lending to individuals fell just short of estimates (GBP2.5 bln actual v. GBP2.6 bln expected). Support in the 1.6950/1.7000 area remains under close watch.
  • USDCHF is +5 pips @ .9045 as trade stalls near six-month highs. The pair has seen a lackluster trade thanks to its close correlation with the euro. 
  • USDJPY is +10 pips @ 101.95 as buyers remain in control for an eighth day. Early strength developed following the mixed household spending (-3.0% YoY actual v. -3.7% YoY expected) and retail sales (-0.6% YoY actual v. -0.4% YoY expected) figures with trade ticking to a three-week high. Resistance near 102.00 is guarded by both the 100 and 200 dma. Click here to see a daily USDJPY chart.
  • AUDUSD is -5 pips @ .9400 as trade sees little reaction to the jump in HIA New Home Sales (1.2% MoM). The hard currency has been limited to just a 25 pip range. USDCNY eased to a four-month low of 6.1812.
  • USDCAD is +10 pips @ 1.0810 as action presses its best levels in five weeks. Resistance in the 1.0820 area is defended by the 200 dma.

7:18 am Corning misses by $0.01, beats on revs; sees continued growth (GLW) : Reports Q2 (Jun) earnings of $0.37 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.38; revenues rose 27.5% year/year to $2.58 bln vs the $2.53 bln consensus. 

  • Display Technologies segment core sales were $1.1 billion, a 62% increase over core sales of $670 million a year ago. The sales improvement was driven by the consolidation of Corning Precision Materials. Core earnings for the quarter increased by 9% from the year-ago comparable period. LCD glass volume grew in the low teens percentage sequentially and was higher than anticipated. As the company expected, price declines were more moderate versus the first quarter. 
  • Optical Communications segment sales were $686 million, a 14% increase from $601 million in quarter two of last year. The sales increase was stronger than anticipated, driven primarily by continued demand for Corning's fiber-to-the-home solutions in North America and Europe.
Outlook:
  • "We have accomplished a great deal with our first-half business performance. We expect the third quarter will bring Corning's eighth consecutive year-over-year quarterly sales (consensus +27%) and earnings (consensus $0.42 vs. $0.33 LY) improvement, and we are on track for strong earnings growth for the full year," James B. Flaws, vice chairman and chief financial officer, remarked. In the third quarter, the company anticipates its LCD glass volume will be up by a mid-single digit percentage, sequentially. Glass price declines are expected to moderate further, returning to the rates experienced through most of 2013. Optical Communications segment third-quarter sales are expected to increase by a mid-single digit percentage year over year, driven by continued strong sales of fiber-to-the-home solutions in North America and Europe. For the Environmental Technologies segment, third-quarter year-over-year sales are anticipated to grow by 20% to 25%. Corning continues to benefit from strong demand for its heavy-duty diesel emissions control products in North America, China, and Europe. Specialty Materials segment sales are expected to grow ~10% sequentially as demand for Gorilla Glass increases in the second half of the year. Life Sciences segment sales are expected to be up slightly on a year-over-year comparison. "Synergies from the Corning Precision Materials acquisition are rapidly being achieved, and we expect to surpass our original goal. The company is delivering excellent growth in our Environmental Technologies and Optical Communications business segments, which we expect will continue through the second half of this year," Flaws said. "Corning continues to invest in research and development to drive our future growth," he pointed out. "We are working on new glass substrates for high-performance displays to enhance consumer viewing experiences, improved diesel emissions filters and substrates, and advancements in fiber-to-the-home and next-generation, data-center network solutions. Additionally, we have developments underway in wireless communications, and we plan to introduce a new, enhanced generation of our market-leading Gorilla Glass later this year." 

7:17 am Reynolds American beats by $0.02, misses on revs; raises bottom end of FY14 EPS guidance, in-line (RAI) : Reports Q2 (Jun) earnings of $0.89 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.87; revenues fell 0.8% year/year to $2.16 bln vs the $2.19 bln consensus.

  • Co raises bottom end of FY14 EPS guidance range, in-line; co raises FY14 EPS to $3.35-3.45, excluding non-recurring items, vs. $3.35 Capital IQ Consensus Estimate, up from $3.30-3.45.

7:16 am Level 3 announces proposed private offering of senior notes by subsidiary, Level 3 Escrow II, that mature in 2022 valued at $600 mln (LVLT) : Co announced Level 3 Escrow II, Inc., its wholly owned subsidiary, plans to offer $600 mln aggregate principal amount of senior notes that will mature in 2022 and will bear interest at a fixed rate in a proposed private offering to "qualified institutional buyers."

  • The gross proceeds from the offering of the notes will be deposited into a segregated escrow account until the date on which certain escrow conditions, including, but not limited to, the substantially concurrent consummation of the acquisition by Level 3 of tw telecom inc. and the assumption of the notes by Level 3 Financing, Inc., a wholly owned subsidiary of Level 3 and the parent company of Level 3 Escrow, are satisfied. If the escrow conditions are not satisfied on or before June 15, 2015 (or any earlier date on which Level 3 determines that any of such escrow conditions cannot be satisfied), Level 3 Escrow will be required to redeem the notes.

7:14 am McGraw-Hill Financial beats by $0.07, beats on revs; raises FY14 EPS (midpoint above consensus) (MHFI) : Reports Q2 (Jun) earnings of $1.06 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus Estimate of $0.99; revenues rose 7.7% year/year to $1.35 bln vs the $1.3 bln consensus.

  • Co issues  guidance for FY14, raises EPS to $3.80-3.90 from $3.75-3.85, excluding non-recurring items, vs. $3.80 Capital IQ Consensus Estimate. 
  • Standard & Poor's Ratings Services: Quarterly revenue increased 11% to $664 million compared to the same period last year. Revenue growth was driven by increased market demand for the Company's ratings as revenue from both global bond issuance and bank loan ratings experienced double-digit growth. 
  • Transaction revenue increased 14% to $327 million compared to the same period last year. This was primarily driven by strong investor demand for high-yield debt as well as increased debt issuance by financial service firms bolstering their capital reserves to meet regulatory requirements. Bank loan ratings revenue continued to show strength with a 19% increase. 
  • "Revenue growth was led by Standard & Poor's Ratings Services and J.D. Power, each with double-digit growth. Platts, S&P Capital IQ, and S&P Dow Jones Indices all contributed high-single digit growth. The strong performance across all of our business units exemplifies what an outstanding portfolio of assets McGraw Hill Financial possesses."

7:14 am Carbonite beats by $0.01, reports revs in-line; guides Q3 EPS above consensus, revs in-line; guides FY14 EPS above consensus, revs in-line (CARB) : Reports Q2 (Jun) loss of $0.03 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of ($0.04); revenues rose 15.6% year/year to $30.3 mln vs the $30.08 mln consensus.

  • Co issues guidance for Q3, sees EPS of ($0.01)-$0.01 vs. ($0.04) Capital IQ Consensus Estimate; sees Q3 revs of $31.2-31.4 mln vs. $31.27 mln Capital IQ Consensus Estimate.
  • Co issues guidance for FY14, sees EPS of ($0.06)-($0.02) vs. ($0.08) Capital IQ Consensus Estimate; sees FY14 revs of $122.4-123 mln vs. $122.71 mln Capital IQ Consensus Estimate.

7:13 am Plug Power up ~12% premarket on news of new hydrogen fuel cells distribution center with Walmart (WMT) (PLUG) : See 7:03 comment

7:11 am Gaming and Leisure Properties beats by $0.05, beats on revs; issues upside guidance (GLPI) : Reports Q2 (Jun) adjusted funds from operations of $0.66 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.61; revenues rose 44.9% year/year to $160.8 mln vs the $156.96 mln consensus.

  • Co issues upside guidance for Q3, sees AFFO of $0.63 vs. $0.60 Capital IQ Consensus Estimate; sees Q3 revs of $155.7 vs. $151.75 mln Capital IQ Consensus Estimate. 
  • Co issues upside guidance for FY14, sees AFFO of $2.57 vs. $2.43 Capital IQ Consensus Estimate; sees FY14 revs of $629.8 vs. $617.08 mln Capital IQ Consensus Estimate.

7:09 am Natl Oilwell Varco beats by $0.17, misses on revs (NOV) : Reports Q2 (Jun) earnings of $1.61 per share, excluding non-recurring items, $0.17 better than the Capital IQ Consensus Estimate of $1.44; revenues rose 12.3% year/year to $5.25 bln vs the $5.48 bln consensus. 

  • Operating profit for the quarter, excluding non-recurring items, was $945 million, or 18.0 percent of sales. EBITDA for the quarter, excluding non-recurring items, was $1.14 billion, or 21.7 percent of sales, up 12 percent from the prior quarter. 
  • Ending backlog for the second quarter of 2014 was $15.39 billion for the Company's Rig Systems segment and $2.14 billion for the Company's Completion & Production Solutions segment.

7:08 am Entergy beats by $0.01, beats on revs; reaffirms FY14 EPS guidance (ETR) : Reports Q2 (Jun) operational earnings of $1.11 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $1.10; revenues rose 9.4% year/year to $3.00 bln vs the $2.94 bln consensus. Co reaffirms guidance for FY14, sees operational EPS of $5.55-6.75, excluding non-recurring items, vs. $6.18 Capital IQ Consensus Estimate.

  • Co's 3-year guidance is as follows for 2014-2016: Utility operational net income outlook of $1 billion to $1.050 billion by 2016, or 5-7% CAGR off 2013 base, through a combination of rate base growth and return on equity improvement.

7:07 am Heidrick & Struggles beats by $0.02, beats on revs; guides Q3 revs in-line (HSII) : Reports Q2 (Jun) earnings of $0.21 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.19; revenues rose 10.8% year/year to $141 mln vs the $125.24 mln consensus.

  • Co issues in-line guidance for Q3, sees Q3 revs of $123-133 mln vs. $126.49 mln Capital IQ Consensus Estimate.

7:07 am TRW Automotive beats by $0.20, reports revs in-line; guides Q3 revs in-line; guides FY14 revs in-line (TRW) : Reports Q2 (Jun) adj earnings of $2.32 per share, $0.20 better than the Capital IQ Consensus Estimate of $2.12; revenues rose 1.8% year/year to $4.59 bln vs the $4.56 bln consensus.

  • Co issues in-line guidance for Q3, sees Q3 revs of ~$4.2 bln vs. $4.24 bln Capital IQ Consensus Estimate. 
  • Co issues in-line guidance for FY14, raises bottom end of FY14 revs to $17.5-17.7 bln from $17.4-17.7 bln vs. $17.7 bln Capital IQ Consensus Estimate. 
  • FY14 Outlook Details: TRW expects full year industry production volumes to total 17.0 mln units in North America and 19.9 mln units in Europe. Within the forecast for Europe, normal seasonality is expected to place modest downward pressure on vehicle production in the near-term despite continuing signs the industry in the region appears to be headed in the right direction. Outside North America and Europe, the Company continues to expect expansion in vehicle production volumes in China whereas Brazil remains challenged by negative economic conditions. Based on these production levels, the Company's first half performance and expectations for foreign currency exchange rates, full year 2014 sales are expected to range between $17.5 bln and $17.7 bln, with third quarter sales expected to be ~$4.2 bln.

7:06 am Canadian Solar comments on the Department of Commerce preliminary anti-dumping determination; says 'preliminary AD announcement will definitely jeopardize what we have worked so hard for and have achieved in the last few years in the U.S. market' (CSIQ) : Co released this statement on behalf of Thomas Koerner, General Manager of the cos Americas division, in response to the United States Department of Commerce's preliminary decision made last Friday to impose anti-dumping tariffs of up to 44.18% on certain Taiwanese photovoltaic cell imports:

  • Comments that they are deeply disappointed by the DOC's decision, especially in context of the overwhelming damaging impact on the U.S. solar industry
  • States this preliminary AD announcement will jeopardize what they have worked so hard for and have achieved in the last few years in the U.S. market: solar industry job creation and affordable clean energy - from small residential installations to large utility scale power plants. 
  • While they applaud the government's vocal dedication to sustainable development and job creation via fostering the solar market; the pattern of protectionism directly contradicts these commitments. 
  • They declare that this decision in favor of one non-competitive PV manufacturer will cost tens and thousands of jobs across the entire U.S. solar industry, which currently employs more than 140,000 local workers

7:06 am Pfizer beats by $0.01, beats on revs; reaffirms FY14 EPS guidance, lowers FY14 revs, in-line (PFE) : Reports Q2 (Jun) earnings of $0.58 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.57; revenues fell 1.5% year/year to $12.77 bln vs the $12.47 bln consensus, which reflects an operational decline of $113 million, or 1%, and the unfavorable impact of foreign exchange of $87 million, or 1%.

  • The operational decrease was primarily due to the expiration of the co-promotion term of the collaboration agreement for Enbrel in the U.S. and Canada, the ongoing termination of the Spiriva collaboration in certain countries as well as the loss of exclusivity and subsequent multi-source generic competition for Detrol LA in the U.S. and other product losses of exclusivity in certain markets. 
  • Revenues in developed markets were favorably impacted by the operational growth of certain key products including: Lyrica, Nexium 24HR in the U.S. as a result of its recent launch, Prevnar, Eliquis, Xeljanz, Celebrex, Xalkori and Inlyta. Additionally, revenues in emerging markets increased 11% operationally, including strong operational growth from Prevenar as well as from Lipitor, primarily in China. Second-quarter 2014 reported revenues included $71 million from the transitional manufacturing and supply agreements with Zoetis.
  • Expects to complete U.S. Regulatory Submission for Palbociclib in advanced breast cancer in August 2014

Co issues guidance for FY14, reaffirms EPS of $2.20-2.30, excluding non-recurring items, vs. $2.24 Capital IQ Consensus Estimate; lowers FY14 revs to $48.7-50.7 bln from $49.2-51.2 bln vs. $49.31 bln Capital IQ Consensus.
  • The expected negative impact from anticipated multi-source generic competition for Celebrex in the U.S. beginning in December 2014. In addition to the approximate one month of multi-source generic competition, Celebrex revenues also are expected to be negatively impacted in fourth-quarter 2014 by associated wholesaler and retailer destocking.

7:06 am Ciber misses by $0.08, misses on revs (CBR) : Reports Q2 (Jun) loss of $0.02 per share, $0.08 worse than the Capital IQ Consensus Estimate of $0.06; revenues fell 2.6% year/year to $214.6 mln vs the $221.97 mln consensus.

Restructuring

On July 25, 2014, we approved a restructuring plan focused on the implementation of a go-to-market model, realigning the organization and improving our offshore delivery mix ("the 2014 Plan"). The 2014 Plan will commence in the third quarter of 2014 and is expected to be completed in the next twelve months. We estimate the total amount of the restructuring charges for the 2014 Plan will be approximately $24 million, substantially all of which will be cash.

7:06 am Xylem beats by $0.04, beats on revs; increased low end of FY14 EPS (still in-line), reaffirms FY14 revs guidance (XYL) :

  • Reports Q2 (Jun) earnings of $0.48 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.44; revenues rose 4.7% year/year to $1 bln vs the $0.99 bln consensus. Second quarter 2014 adjusted operating margin was up 220 basis points to 12.4 percent; up 420 basis points to 11.5 percent on a GAAP basis. 
  • Co increased the lower end of its EPS guidance, and now expects adjusted FY14 EPS of $1.90-2.00 vs. $1.95 Capital IQ Consensus Estimate; reaffirms FY14 revs of ~$4 bln vs. $3.96 bln Capital IQ Consensus Estimate. Co anticipates that restructuring and realignment costs will range from $40 to $50 million for the year.

7:06 am Oshkosh Truck misses by $0.14, reports revs in-line; guides FY14 EPS below consensus, revs below consensus (OSK) : Reports Q3 (Jun) earnings of $1.23 per share, excluding non-recurring items, $0.14 worse than the Capital IQ Consensus Estimate of $1.37; revenues fell 12.3% year/year to $1.93 bln vs the $1.93 bln consensus.

  • Co issues downside guidance for FY14, sees EPS of $3.40-3.55 vs. $3.61 Capital IQ Consensus Estimate; sees FY14 revs of $6.70-6.75 bln vs. $6.8 bln Capital IQ Consensus Estimate.

7:05 am FLY Leasing continues to grow; purchased a B737-800 on a long-term lease to a leading European carrier (FLY) :

  • Co announced it has signed agreements with a leading Asian airline to purchase and lease back three Airbus A330-300 aircraft.
  • Under the terms of the agreements, FLY will purchase the first of the aircraft in the coming weeks and the two remaining aircraft later this year.
  • Two of the aircraft were manufactured in 2013 and the third in 2014. In a separate transaction, FLY has purchased a B737-800 on a long-term lease to a leading European carrier

7:05 am Intl Paper beats by $0.11, misses on revs (IP) : Reports Q2 (Jun) earnings of $0.95 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus Estimate of $0.84; revenues fell 1.7% year/year to $7.21 bln vs the $7.33 bln consensus.

  • International Paper delivered strong results with increased volume and expanded margins in the face of relatively high input costs," said John Faraci, Chairman and Chief Executive Officer. "As we move into the second half of the year, the co is well positioned to improve earnings and free cash flow generation for the balance of 2014, despite a challenging global environment."

7:05 am F.N.B. Corp receives regulatory approval for OBA Financial (OBAF) merger (FNB) : Co announced the receipt of all required regulatory clearances for the proposed merger of the co and OBA Financial Services. The Office of the Comptroller of the Currency has approved the bank merger act application to merge OBA Bank, Inc., into First National Bank of Pennsylvania. The Federal Reserve Bank of Cleveland has granted the co a waiver of its merger application requirements. 

  • OBAF shareholders will vote on the proposed merger at a special meeting of the shareholders scheduled for August 21, 2014. 
  • The merger is expected to have an effective closing date of September 19, 2014.

7:04 am Sirius XM Radio reports EPS in-line, beats on revs; guides FY14 revs in-line (SIRI) : Reports Q2 (Jun) earnings of $0.02 per share, in-line with the Capital IQ Consensus Estimate of $0.02; revenues rose 10.1% year/year to $1.03 bln vs the $1.02 bln consensus.

  • Subscribers Exceed 26.3 Million. 
    • Net subscriber additions in the second quarter of 2014 were 475,472. 
    • The total paid subscriber base reached a record 26.3 million, up 5% from a year earlier. 
    • Self-pay net subscriber additions were 379,711, and the self-pay subscriber base reached a record high of 21.6 million, up 7% from the second quarter of 2013. Paid and unpaid trials combined to produce a total trial funnel of 7.3 million at the end of the second quarter of 2014, the largest in our history.
  • Co raises 2014 guidance for revenue, adjusted EBITDA, and free cash flow: 
    • Sees FY14 revs of approx $4.1 bln vs. $4.13 bln Capital IQ Consensus Estimate. 
    • Sees Net subscriber additions of approximately 1.25 million, 
    • Adjusted EBITDA of approximately $1.425 billion
    • Free cash flow of approximately $1.1 billion.

7:04 am Windstream to spin off assets into publicly traded REIT; co's board of directors approved the plan following the receipt of a favorable private letter ruling from the IRS (WIN) : Co announced plans to spin off certain telecommunications network assets into an independent, publicly traded real estate investment trust (:REIT). The transaction will enable Windstream to accelerate network investments, provide enhanced services to customers and maximize shareholder value. The co's board of directors approved the plan following the receipt of a favorable private letter ruling from the Internal Revenue Service.

  • The tax-free spinoff will enable Windstream to realize significant financial flexibility by lowering debt by ~ $3.2 bln and increasing free cash flow to accelerate broadband investments, transition faster to an IP network and pursue additional growth opportunities to better serve customers. As a result of the transaction, Windstream will offer faster broadband speeds and more robust performance to consumers. The co said it would expand availability of 10 Mbps Internet service to more than 80% of its customers by 2018. It also said it would more than double the availability of 24 Mbps Internet service by 2018, expanding to more than 30% of its customers.
  • Under the transaction, co will spin off certain assets, including its fiber and copper networks and other real estate, as a REIT, which will lease use of the assets to Windstream through a long-term triple-net exclusive lease with an initial estimated rent payment of $650 mln per year. Windstream will operate and maintain the assets and deliver advanced communications and technology services to consumers and businesses. Customers will see no change in their rates, scope or terms of service as a result of the transaction. Windstream will continue to have sole responsibility for meeting its existing regulatory obligations following the creation of the REIT. The REIT will focus on expanding and diversifying its assets and tenants through future acquisitions. 
  • Windstream plans to maintain its current dividend practice through the close of the transaction. Following the spinoff, the expected annual dividend per share in the aggregate for the two cos will be $0.70 per current Windstream share, with co expected to pay an annual dividend of $0.10, while the REIT will have an annual dividend equivalent to $0.60.

7:04 am CONMED discloses efforts to settle with Voce Capital in order to focus on execution; Voce rejects offer; CONMED intends to file preliminary proxy materials shortly (CNMD) : Co announced that last week it reached out to Voce Capital Management LLC, which, according to its most recent disclosures, owns approximately 0.3% of the outstanding shares of the cos common stock, seeking to reach a mutually agreeable resolution and to avoid a costly and distracting proxy contest.

  • The co offered to nominate Voce's nominee, Josh Levine, to the cos Board. 
    • Voce rejected the company's offer and insisted that J. Daniel Plants, Voce's Managing Partner, also be included as one of the company's director nominees as part of any settlement agreement.
  • The co maintains they are confident they have the right leadership and board to continue driving value for all shareholders.

7:03 am Fidelity Nat'l Info beats by $0.02, beats on revs; reaffirms FY14 EPS guidance, revs guidance (FIS) : Reports Q2 (Jun) earnings of $0.76 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.74; revenues rose 5.7% year/year to $1.6 bln vs the $1.58 bln consensus. Co reaffirms guidance for FY14, sees EPS of $3.05-3.16 vs. $3.10 Capital IQ Consensus Estimate; sees FY14 rev growth of 4.5-6.5% or roughly $6.34-6.46 bln vs. $6.39 bln Capital IQ Consensus Estimate.

7:03 am Plug Power: Walmart (WMT) expands commitment to Plug Power Hydrogen Fuel Cells with GenKey order for seventh N. American distribution center (PLUG) : Co confirms it has received a follow-on GenKey purchase order from Wal-Mart Stores (WMT) to add an additional, seventh, GenKey site to the original six-site contract it announced in February 2014. This additional site in Sterling, IL consists of 286 GenDrive fuel cell units and is planned to deploy in the third quarter of 2014.

GenKey is Plug Power's all-inclusive hydrogen fuel cell power solution, combining:

  • GenDrive fuel cell units 
  • GenFuel infrastructure construction and hydrogen fuel supply 
  • GenCare onsite maintenance service

7:03 am Entegris beats by $0.02, beats on revs; guides Q3 EPS below consensus, revs in-line (ENTG) : Reports Q2 (Jun) earnings of $0.20 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.18; revenues rose 41.7% year/year to $251.6 mln vs the $240.2 mln consensus. Co issues mixed guidance for Q3, sees EPS of $0.15-0.20, excluding non-recurring items, vs. $0.21 Capital IQ Consensus Estimate; sees Q3 revs of $255-275 mln vs. $278.34 mln Capital IQ Consensus Estimate.

7:02 am Westmoreland Coal's Estevan Mine inks long-term coal supply agreement (WLB) :

  • Co, through its Prairie Mines & Royalty ULC subsidiary, has entered into a long-term coal supply agreement with Saskatchewan Power Corporation to supply coal from the Estevan Mine. The agreement results in a commitment of over 60 million tons of coal from Estevan through 2024.

7:02 am Amedisys announces new $70 mln second lien credit facility and amendment to senior secured credit facility (AMED) :

  • Co announced that it entered into a new $70 mln six-year second lien term loan facility. In connection with the new second lien facility, the co's existing senior secured credit facility was amended and downsized to $159 mln, consisting of an existing term loan with a balance of $39 mln and a $120 mln revolving credit facility. The maturity of the senior secured facility will remain unchanged. 
  • Proceeds from the new term loan were used to pay down outstanding revolver balances. The interest rate of the second lien term loan is priced at LIBOR plus 7.5% with a 1.0% LIBOR floor.

7:02 am Marsh McLennan beats by $0.04, beats on revs (MMC) : Reports Q2 (Jun) earnings of $0.79 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.75; revenues rose 6.9% year/year to $3.3 bln vs the $3.23 bln consensus.

  • The Co delivered another quarter of excellent financial results. We produced revenue growth of 7% with underlying revenue growth of 5%. This was our strongest quarterly revenue performance in two years, with all operating companies contributing. Adjusted operating income grew 11%, with margin expansion of 60 basis points to 19.8%. For the six months of 2014, we achieved outstanding results, with 4% underlying revenue growth, an 11% increase in adjusted operating income and margin improvement of 100 basis points to 20.4%

7:02 am Nielsen beats by $0.01, beats on revs (NLSN) : Reports Q2 (Jun) earnings of $0.62 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.61; revenues rose 15.0% year/year to $1.59 bln vs the $1.57 bln consensus.

7:02 am Merck beats by $0.04, beats on revs; raises bottom end of FY14 EPS in line; reaffirms FY14 rev guidance (MRK) : Reports Q2 (Jun) earnings of $0.85 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.81; revenues fell 0.7% year/year to $10.93 bln vs the $10.61 bln consensus.

  • Co issues in-line guidance for FY14, raises bottom end of EPS to $3.43-3.53 from $3.35-3.53 vs. $3.48 Capital IQ Consensus Estimate; reaffirms FY14 revs of $42.4-43.2 bln vs. $42.5 bln Capital IQ Consensus Estimate. 
  • Second-quarter pharmaceutical sales declined 2 percent to $9.1 billion. Expected declines occurred due to the ongoing impact of the loss of market exclusivity for TEMODAR (temozolomide) and NASONEX (mometasone furoate monohydrate). 
  • Second-quarter global sales of Consumer Care products were $583 million, an increase of 19 percent compared to the second quarter of 2013, including a 1 percent negative impact due to foreign exchange. 
  • The gross margin was 55.2 percent for the second quarter of 2014 compared to 61.1 percent for the second quarter of 2013, reflecting 17.4 and 14.6 unfavorable percentage point impacts, respectively, from the acquisition- and divestiture-related costs, and restructuring costs noted above. 
  • Guidance Details: Merck expects full-year 2014 non-GAAP EPS to be between $3.43 and $3.53, which excludes the potential impact of a Venezuelan Bolivar devaluation that was previously included in the range. The full-year 2014 non-GAAP EPS range reflects strong performance in the first half of the year and also includes anticipated dilution of $0.06 to $0.09 from the planned sale of Merck Consumer Care and the research collaboration with Bayer, and the planned acquisition of Idenix. The 2014 non-GAAP EPS range excludes acquisition- and divestiture-related costs and costs related to restructuring programs.

7:02 am Asanko Gold announces positive metallurgical results From Dynamite Hill; positive metallurgical test work results from the newly discovered, near surface Dynamite Hill deposit; Confirms Dynamite Hill deposit will blend well with the other Asanko Gold Mine ores (AKG) : Co announced positive results from the metallurgical test work program conducted on the Dynamite Hill deposit.

  • Results of metallurgical testing show that the gold recovery averages between 93.2 and 96.2% across the various mineral types with an average of 95%.
  • Gravity gold separation test work indicates that approximately 50% of the gold is expected to be recovered in the gravity circuit.
  • Comminution testing indicates that the Bond work index varies between 10 kWh/t for softer oxide ore and 16 kWh/t for the harder fresh material, which is a similar range as the other deposits at the Project.
  • A maiden mineral resource estimate for Dynamite Hill is currently being compiled by the company and is expected to be published in September 2014, along with a definitive mine plan which will be included as part of the overall definitive project plan for phase 1. 
  • Following completion of the MRE and definitive mine plan, a modification to the existing mine operating permit will be sought prior to commencement of mining activity at Dynamite Hill, which is anticipated in Q3 2015. 

7:02 am Bristol-Myers and Pfizer (PFE) announce the European Commission has approved Eliquis for the treatment of DVT and PE, and the prevention of recurrent DVT and PE in adults (BMY) : Co announced that the European Commission has approved Eliquis for the treatment of DVT and PE, and the prevention of recurrent DVT and PE in adults.

  • The European Commission approval applies to all European Union member states as well as Iceland and Norway.

7:01 am Aecom Tech acquires Hunt Construction Group to join its construction services business; financial terms not disclosed (ACM) : Co announced today that it has acquired Hunt Construction Group for an undisclosed amount.

  • On July 13, the co announced a definitive agreement to acquire URS Corporation, a transaction that is expected to close in October 2014. The transaction is subject to customary closing conditions, including regulatory approvals and approval by AECOM and URS stockholders. The combined company, including Hunt, would be a leading, fully integrated infrastructure and federal services provider with more than 95,000 employees in 150 countries. It would have calendar year 2013 pro forma revenues of more than US$20 billion. 

7:01 am Waddell & Reed beats by $0.07, misses on revs (WDR) : Reports Q2 (Jun) earnings of $0.98 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.91; revenues rose 20.8% year/year to $400.6 mln vs the $405.63 mln consensus.

7:00 am Kulicke & Soffa misses by $0.01, beats on revs; guides Q4 revs above consensus (KLIC) : Reports Q3 (Jun) earnings of $0.34 per share, $0.01 worse than the GAAP Capital IQ Consensus Estimate of $0.35; revenues rose 27.8% year/year to $180.5 mln vs the $170 mln consensus; gross margin +50 bps YoY to 47.2%.

Co issues upside guidance for Q4, sees Q4 revs of ~$185-195 mln vs. $180.78 mln Capital IQ Consensus. 

"The 58% revenue increase, over the March Quarter, was driven by increased demand for our market-leading equipment solutions. While these offerings individually serve targeted segments, they collectively cover a wide-range of the industry's interconnect requirements. We expect to drive further enhancements to the diversity and breadth of our equipment portfolio as our ongoing Advanced Packaging investments come to fruition."

7:00 am Teleflex receives FDA clearance for 150 cm length arrow GPSCath Balloon Dilatation Catheters (TFX) : Co announced that it received FDA 510(k) clearance to market the Arrow GPSCath Balloon Dilatation Catheters designed for use with .014" guide wires and in 150 cm length.

6:57 am On The Wires (:WIRES) :

  • Microsoft (MSFT) and Akamai Technologies (AKAM) announced that, together with venture capital firm Jerusalem Venture Partners, they are working on a unique accelerator in the field of cybersecurity. Startups accepted into the program will be announced Aug. 24, 2014, and the class will run through Jan 2015. 
  • China Mobile Games and Entertainment (CMGE) has been authorized non-exclusively by Toei Animation to develop mobile games based on the Japanese animation One Piece and Ikkyuu San. 
  • Luxfer (LXFR) Gas Cylinders has announced the first delivery of its new G-Stor Go polymer-lined, carbon composite Type 4 cylinders for containment of compressed natural gas.  
  • Anadarko Petroleum (APC) announced the election of Joseph W. Gorder to serve as an independent director of the co, effective July 28, 2014. Gorder was also appointed a member of the Board's Compensation and Benefits Committee.

6:56 am Crane earlier increased quarterly dividend by 10% to $0.33 from $0.30/share (CR) :  

6:51 am Capella Education misses by $0.12, reports revs in-line; guides Q3 revs above consensus (CPLA) : Reports Q2 (Jun) earnings of $0.72 per share, $0.12 worse than the Capital IQ Consensus Estimate of $0.84; revenues rose 1.1% year/year to $104.8 mln vs the $104.29 mln consensus.

  • Capella University total active enrollment decreased 0.6% to 35,791, new enrollment increased by 11.1% from second quarter 2013 and early cohort persistence improved by 4%.
Co issues upside guidance for Q3, sees Q3 revs +1-2% to ~$101.7-102.7 mln vs. $101.61 mln Capital IQ Consensus; Q3 new enrollment growth is expected to be similar to year-over-year new enrollment growth in the second quarter 2014. Total enrollment and consolidated revenue is expected to increase about 1.0 to 2.0% compared to third quarter 2013. The consolidated operating margin is anticipated to be ~10.5 to 11.5% of total revenue for the third quarter of 2014.

For the fiscal year ended Dec. 31, 2014, the co is expected to report solid new enrollment, positive total enrollment and consolidated revenue growth (consensus +1%). The consolidated annual operating margin is expected to be in the 14.5% range, including the second quarter 2014 lease amendment charges.

6:49 am Health Care REIT announced closing of expanded $3.23 bln unsecured credit facility (HCN) :

  • Co announced that it has closed an ~ $3.23 bln unsecured credit facility consisting of a $2.5 bln revolver, a $500 mln term loan and a CAD 250 mln ($232.9 mln at exchange rates as of July 18, 2014) term loan. The facility replaces the co's existing credit facilities of ~ $2.98 bln. 
  • The facility matures Oct 31, 2018, and can be extended for an additional year at the co's option. Based on the co's current credit ratings, the revolver bears interest at LIBOR plus 105 basis points and has an annual facility fee of 20 basis points. The term loans bear interest at LIBOR and CDOR for the USD and CAD loans, respectively, plus 115 basis points. HCN has an option to upsize the facility by up to an additional $1.0 bln through an accordion feature, allowing for a total credit facility of up to $4.23 bln. The facility also allows the co to borrow up to $500 mln in alternate currencies.

6:46 am CONSOL Energy announces private offering of $200 mln 5.875% Senior Note and cash tender offer of $200 mln of 8.25% Senior Note (CNX) : Co announced that it intends, subject to market and other conditions, to offer and sell to eligible purchasers an additional $200 million of its 5.875% senior notes due 2022. CONSOL initially offered and sold $1.6 billion aggregate principal amount of notes of the same series on April 16, 2014. The Additional Notes will have identical terms, other than the issue date, issue price and, with regard to Additional Notes sold in reliance on Regulation S under the Securities Act of 1933, as amended. CONSOL intends to use the net proceeds of the sale of the Additional Notes, together with cash on hand, to fund the purchase of up to $200 million principal amount of its 8.25% senior notes due 2020 pursuant to the modified "Dutch Auction" cash tender offer announced earlier today.

Co also announced that it has commenced a modified "Dutch Auction" cash tender offer to purchase up to $200,000,000 principal amount of its 8.25% senior notes due 2020. The Tender Offer will expire at 11:59 p.m., New York City time, on August 25, 2014, unless extended by CONSOL in its sole discretion. Holders of 2020 Notes that validly tender their 2020 Notes prior to 5:00 p.m., New York City time, on August 11, 2014, unless extended by CONSOL in its sole discretion, will be eligible to receive the Total Consideration for their 2020 Notes.

6:44 am Portland Gen Elec beats by $0.08, misses on revs; reaffirms FY14 EPS guidance (POR) : Reports Q2 (Jun) earnings of $0.43 per share, $0.08 better than the Capital IQ Consensus Estimate of $0.35; revenues rose 5.0% year/year to $423 mln vs the $427.36 mln consensus.

Co reaffirms guidance for FY14, sees EPS of $2.05-2.20 vs. $2.12 Capital IQ Consensus Estimate. 

"PGE continues to demonstrate strong operational performance across the company in 2014," said Jim Piro, president and chief executive officer. "Construction of our three new generating resources is proceeding on time and on budget, our 2015 general rate case is progressing on schedule, and our financial performance is in line with our expectations."

6:41 am Carlyle: Acosta Sales & Marketing secures equity investment from CG; financial terms not disclosed (CG) : Acosta Sales & Marketing, a full-service sales and marketing agency in the consumer goods industry, has signed a definitive agreement for an equity investment by The Carlyle Group. Carlyle will purchase the full ownership stake of funds affiliated with Thomas H. Lee Partners. GIC, which is currently an investor in Acosta, will re-invest in the co. Following the investment, Acosta senior management will continue to lead the co, and operations will remain the same. Acosta's broad management team will continue to have significant ownership of the company. Financial terms of the transaction, which is expected to close in Q3 2014, were not released.

6:40 am CONSOL Energy misses by $0.35, beats on revs (CNX) : Reports Q2 (Jun) loss of $0.11 per share, $0.35 worse than the Capital IQ Consensus Estimate of $0.24; revenues rose 13.2% year/year to $937.37 mln vs the $922.77 mln consensus.

  • CONSOL's E&P Division production was a record 51.9 Bcfe, or an increase of 34% from the 38.6 Bcfe produced in the year-earlier quarter. Average realized prices of $4.44 per Mcfe, when combined with declining unit costs of $3.44 per Mcfe, resulted in a margin of $1.00 per Mcfe. This was 45% higher than the $0.69 per Mcfe margin achieved in the year-earlier quarter. Net Income attributable to CONSOL shareholders from the E&P Division was $15.5 million in the 2014 second quarter, compared to a loss of $2.7 million in the year-earlier quarter. 
  • CONSOL Energy recently raised its 2014 E&P production guidance range to 225 - 235 Bcfe from earlier guidance of 215 - 235 Bcfe. To achieve the mid-point of the new range, the company will need to produce approximately 60 Bcfe in the third quarter and 70 Bcfe in the fourth quarter. The company has a record number of Marcellus Shale wells due to be tied into line in the third quarter. 
  • CONSOL's Coal Division produced 8.3 million tons, achieving the mid-point of the guidance range of 8.1 - 8.5 million tons. Weaker markets for metallurgical coal, though, decreased pricing for the company's low-vol and high-vol coals. Thermal coal pricing was also lower in the quarter, when compared to the year-earlier quarter. Higher thermal coal sales volumes, however, enabled the thermal coal business to generate more cash before capital expenditures and depreciation, depletion, and amortization (DD&A) than in the year-earlier quarter. 
  • The thermal coal segment achieved cash production costs of $40.47 per ton in the 2014 second quarter, as detailed in a table later in the release. This cost was lower than the $43.11 per ton cash production cost in the year-earlier quarter despite geologic issues at the Enlow Fork Mine and the change-out of a shearer at the new Harvey (formerly BMX) Mine.

6:39 am CBIZ reports Q2 (Jun) results, revs in-line; issues 2014 growth guidance (CBZ) : Reports Q2 (Jun) earnings of $0.12 per share, and $0.13 when normalized to exclude the impact of the increase in share equivalents related to the Convertible Notes, vs. the Capital IQ Consensus Estimate of $0.13; revenues rose 5.1% year/year to $180.9 mln vs the $182.34 mln consensus. Same-unit organic revenue increased by $3.7 million, or 2.1% for the 2014 second quarter, compared with the same period a year ago. 

  • In 2014, the Company expects continued improvement in same-unit revenue growth rates, total revenue to grow within a range of 5% to 7% (vs. consensus +5.1%), and diluted earnings per share from continuing operations to grow within a range of 15% to 18% over 2013 (consensus is for +5.9% EPS growth), assuming a constant share count compared with 2013. 
  • Cash flow will continue to be positive, and Adjusted EBITDA is projected to increase within a range of 8% to 12% over the $75.6 million reported for 2013.

6:36 am Harris reports EPS in-line, beats on revs; guides FY15 EPS in-line, revs below consensus (HRS) : Reports Q4 (Jun) earnings of $1.28 per share, in-line with the Capital IQ Consensus Estimate of $1.28; revenues fell 2.2% year/year to $1.33 bln vs the $1.3 bln consensus.

  • Co issues guidance for FY15, sees EPS of $4.75-5.00 vs. $4.98 Capital IQ Consensus Estimate; sees FY15 revs of -1-3% to ~$4.862-4.962 bln vs. $4.98 bln Capital IQ Consensus Estimate. 
  • "Fourth quarter revenue and earnings were solid, and the company continues to generate substantial free cash flow while still investing for the future...Higher revenue and operating income in Government Communications Systems as well as efficiencies from operational excellence initiatives across the segments contributed to the solid performance in a tough U.S. Government spending environment."

6:34 am Eaton reports EPS in-line, revs in-line; guides Q3 EPS below consensus; lowers high end of FY14 EPS guidance (ETN) : Reports Q2 (Jun) adj. earnings of $1.11 per share, ex-$0.70 net in unfavorable items, in-line with the Capital IQ Consensus of $1.11; revenues rose 2.9% year/year to $5.77 bln vs the $5.76 bln consensus.

Co issues downside guidance for Q3, sees EPS of $1.20-1.30, excluding non-recurring items, vs. $1.33 Capital IQ Consensus Estimate.

Co issues downside guidance for FY14, lowers EPS to $4.50-4.70 from $4.50-4.90 vs. $4.77 Capital IQ Consensus Estimate, "reflecting the impact of lower margins in our Electrical Systems and Services segment."

"We are pleased with our strong second quarter bookings in both of our Electrical segments and in our Aerospace segment," said Cutler. "For all of 2014, we continue to forecast our end markets will grow 3 percent."

6:33 am Medidata Solutions reports EPS in-line, beats on revs; guides FY14 revs in-line (MDSO) : Reports Q2 (Jun) earnings of $0.17 per share, in-line with the Capital IQ Consensus Estimate of $0.17; revenues rose 22.2% year/year to $83.2 mln vs the $81.9 mln consensus. Subscription revenue was $68.9 million, an increase of 22% compared with the same period last year. 

  • Co issues in-line guidance for FY14, sees FY14 revs of $340-345 mln vs. $341.18 mln Capital IQ Consensus Estimate. 
    • Non-GAAP operating income between $80.0 and $83.0 million.
    • Adjusted non-GAAP net income, which includes the tax affected adjustments primarily from stock-based compensation, non-cash interest expense associated with convertible senior notes and amortization at a 40% effective tax rate, between $41.0 and $44.0 million.  

6:30 am S&P futures vs fair value: flat. Nasdaq futures vs fair value: +2.50. :

6:30 am European Markets : FTSE...6802.43...+14.40...+0.20%.  DAX...9607.35...+9.20...+0.10%.

6:30 am Asian Markets : Nikkei...15618.07...+88.70...+0.60%.  Hang Seng...24640.53...+211.90...+0.90%.

6:30 am Honda Motor beats by JPY0.11, reports revs in-line; guides FY15 EPS below consensus, revs above consensus (HMC) : Reports Q1 (Jun) earnings of YEN81.29 per share, YEN0.11 better than the Capital IQ Consensus Estimate of YEN81.18; revenues rose 5.4% year/year to YEN2988.2 bln vs the YEN2992.74 bln consensus.

  • Co issues guidance for FY15, sees EPS of JPY 332.91 vs. YEN354.32 Capital IQ Consensus Estimate; sees FY15 revs of ~JPY 12.8 trillion vs. YEN 12.66 trillion Capital IQ Consensus Estimate. 
  • Net sales and other operating revenue increased by 5.4% mainly due to a rise in automobile and motorcycle net sales as well as the positive impact of foreign exchange effect.Operating income for the first quarter was 198.0 billion yen, a 7.1% increase compared to the same period last year. 
  • This was mainly due to a rise in automobile sales as a result of the positive effect of new model introductions and full model changes in Japan and Asia in addition to the positive impact of cost reduction efforts.

6:19 am Timmins Gold reports Q2 EPS of $0.02 vs. $0.04 Capital IQ consensus (TGD) :  

6:19 am On The Wires (:WIRES) :

  • Quest Resource (QRHC) announced that its subsidiary, Quest Resource Management, now reaches over 18,000 client locations nationwide, a 20% growth since January.
  • EXL (EXLS) and Carvajal Tecnologia y Servicios, a subsidiary of Carvajal S.A., have signed a non-binding MOU to establish a JV to address the growing demand for Spanish language-based operations management solutions delivered from Latin America. CT&S is expected to contribute its existing Finance & Accounting Outsourcing operations to the JV, in which EXL will acquire a 51% stake. 
  • CNH Industrial (CNHI) inaugurated its new manufacturing complex built in the area of its previous assembly plant in Heilongjiang Province, China. The biggest agricultural equipment manufacturing facility in Northeast China, the complex extends over a total area of 400,000 square meters of which 116,000 are covered. 
  • CYREN (CYRN) announced an expansion of its partnership with Tokyo-based imatrix corp. imatrix will now offer the cloud-based CYREN WebSecurity service to its channel partners, telecom service providers as well as enterprises throughout the Japanese market.

6:14 am Sensata Tech reports EPS in-line, beats on revs; guides Q3 / FY14 in-line (ST) :

  • Reports Q2 (Jun) earnings of $0.62 per share, in-line with the Capital IQ Consensus Estimate of $0.62; revenues rose 13.7% year/year to $575.9 mln vs the $566.38 mln consensus. 
  • Q3 guidance: Co issues in-line guidance for Q3, sees EPS of $0.60-0.63 vs. $0.62 Capital IQ Consensus Estimate; sees Q3 revs of $535-555 mln vs. $544.09 mln Capital IQ Consensus Estimate. Co further anticipates Q3 Adjusted EBITDA of $147 to $154 mln.
  • FY14 guidance: Co issues in-line guidance for FY14, sees EPS of 2.39 -2.45, excluding non-recurring items, vs. $2.43 Capital IQ Consensus Estimate; sees FY14 revs of $2.18 to $2.23 bln vs. $2.21 bln Capital IQ Consensus Estimate. 

6:12 am Spirit Airlines beats by $0.01, reports revs in-line (SAVE) : Reports Q2 (Jun) adj earnings of $0.91 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.90; revenues rose 22.6% year/year to $499.3 mln vs the $499.18 mln consensus. 

  • For the second quarter 2014, Spirit achieved an adjusted pre-tax margin of 21.3 percent compared to 17.8 percent over the same period in 2013. On a GAAP basis, pre-tax margin for the second quarter 2014 was 20.8 percent compared to 16.4 percent in the second quarter 2013. 
  • Total revenue per available seat mile for the second quarter 2014 was 12.46 cents, an increase of 4.6 percent compared to the second quarter 2013. The calendar shift of Easter occurring in April this year compared to March in 2013 contributed to the strong second quarter 2014 results.

6:11 am Eagle Bancorp commences public offering of $55 mln of its Subordinated Notes, due Sep 1, 2024 (EGBN) : Co announced that it had commenced a public offering of $55 mln of its Subordinated Notes, due September 1, 2024.

  • The co plans to use the proceeds of the offering to pay the cash portion of the merger consideration in its previously announced acquisition of Virginia Heritage Bank, and for general corporate purposes, including but not limited to contribution of capital to its subsidiaries, including EagleBank. 
  • Sandler O'Neill + Partners, L.P. is the sole manager for the subordinated notes offering.

6:10 am Stock Building Supply Holdings misses by $0.02, misses on revs (STCK) :

  • Reports Q2 (Jun) earnings of $0.21 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.23; revenues rose 9.5% year/year to $344.59 mln vs the $355.56 mln consensus. 
  • The Q2 gross margin percentage increased ~120 basis points to 23.9% from 22.7% in the second quarter of 2013, primarily as a result of improved gross margins on sales of structural components and lumber and lumber sheet goods, as well as a higher percentage of total net sales being derived from non-commodity product offerings.
  • "While the pace of recovery in U.S. single-family housing starts has been slower than expected, we remain confident that the recovery in the residential construction market is progressing, and anticipate continued growth in our core business segments in the second half of 2014... As demonstrated in the first half of the year, we are realizing benefits from our local and company-wide operating initiatives and remain focused on executing our strategy to further improve our customer service, growth capabilities and operating results."

6:10 am MDC Holdings beats by $0.05, beats on revs (MDC) : Reports Q2 (Jun) earnings of $0.44 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.39; revenues rose 7.3% year/year to $431.3 mln vs the $409.52 mln consensus. 

  • The increase in revenues resulted primarily from a 10% increase in average selling price to $372,000, as compared to $338,400 in the prior year. The increase in average selling price was due to price increases achieved during much of 2013 and a shift to higher-priced homes in certain markets. 
  • Gross margin from home sales decreased to 17.1% from 18.1% for the year-earlier period. The decrease was due primarily to higher interest costs, cost increases from vendors and land sellers, and additional incentives offered in certain markets to spur demand in a slower homebuilding environment. 
    • Gross margin from home sales excluding interest and impairments was nearly flat from the year-earlier period at 21.1% for the second quarter 2014, compared to 21.3% for the 2013 second quarter. 
  • Net new orders +5%; the dollar value of net new orders for the 2014 second quarter increased 12% to $544.8 million from the same period in 2013. The increase in net new orders was driven by a 14% increase in active communities to 159 from 140 in the same period in the prior year, which was partially offset by a slight decrease in our monthly sales absorption pace. 
  • We ended the 2014 second quarter with 1,886 homes in backlog with an estimated sales value of $761.5 million, compared to a backlog of 2,095 homes with an estimated sales value of $784.2 million at June 30, 2013. 
  • "For the homebuilding industry as a whole, the spring selling season was modestly slower than a year ago, highlighting volatile conditions in the short-term as the industry continues down a broader path of long-term growth. We saw hesitation from some potential buyers, especially in the first-time buyer segment, following a significant run-up in home prices in 2013 and tepid economic trends that have persisted for much of the past year. However, our net new home orders improved year-over-year in the 2014 second quarter for the first time in five quarters on the strength of a year-over-year increase in our average active community count."

6:09 am Aetna beats by $0.09, beats on revs; raises FY14 EPS in-line (AET) : Reports Q2 (Jun) earnings of $1.69 per share, $0.09 better than the Capital IQ Consensus Estimate of $1.60; revenues rose 25.3% year/year to $14.49 bln vs the $14 bln consensus.

  • Co issues in-line guidance for FY14, raises EPS to $6.45-6.60 from $6.35-6.55 vs. $6.53 Capital IQ Consensus Estimate. 
  • Medical membership increased in the second quarter of 2014 and totaled 23.1 mln at June 30, 2014, a sequential increase of 385,000 members.  
  • Guidance Commentary: "Based on our progress to date, and our current projections of operating expense savings, we are raising our 2014 Coventry accretion projection by $0.05 to $0.10 per share to a range of $0.55 to $0.60 per share. We continue to project $0.90 per share of accretion in 2015. "We are pleased with our second-quarter operating results, which were supported by strong operating revenue growth and cash flow, as well as solid operating margins. With this solid performance, we are increasing both our year-end medical membership projection to approximately 23.4 mln members from the previous projection of more than 23 mln and our full-year 2014 operating revenue projection to at least $57 bln from our previous range of $56 bln to $57 bln."

6:07 am Eltek announces termination of Mr. Arieh Reichart as CEO; Mr. Roberto Tulman nominated as interim CEO (ELTK) : Co announced that Mr. Arieh Reichart shall step down as CEO of the Company with immediate effect.

  • Mr. Roberto Tulman, who has been serving as the Chief Technology Officer of the Company, shall assume the position of interim CEO. Mr. Tulman shall be supported by the Company's Chairman, Mr. Yitzhak Nissan, who will take a more active role with the Company's day-to-day management during this interim period.

6:07 am ExlService beats by $0.02, misses on revs; upwardly revising FY14 revs (EPS and revs still in-line) (EXLS) :

  • Reports Q2 (Jun) earnings of $0.41 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.39; revenues rose 3.2% year/year to $119.7 mln vs the $121.1 mln consensus. 
  • Q2 Adjusted operating margin was 12.2% compared to 14.9% for the quarter ended June 30, 2013 and 19.0% for the quarter ended March 31, 2014.
  • For 2014, we are upwardly revising our revenue guidance to $490 million to $503 million to include the acquisition of Blue Slate and based on strong revenue performance in the first half of the year (vs. $492.28 mln Capital IQ Consensus Estimate). We are maintaining our adjusted diluted EPS guidance of $1.70 to $1.80 (vs. $1.80 Capital IQ Consensus Estimate). Our revenue and adjusted EPS guidance excludes the impact of the reimbursement of disentanglement costs." 

6:06 am Men's Wearhouse announces comparable sales for fiscal second quarter to date as of July 19, 2014; Men's Wearhouse 3.6%, Jos. A. Bank 2.4%, Moores 8.3% (MW) :  

6:03 am Spherix announces summary of the co's legal proceedings; co aims to develop multiple licensing rev sources, through both litigation and through partnering with those utilizing its intellectual property (SPEX) : Co announced a summary of the co's legal proceedings as they relate to monetization of the co's intellectual property. The legal proceedings demonstrate a strategy to assert multiple different patents in different technology areas. Spherix aims to develop multiple licensing revenue sources, through both litigation and through partnering with those utilizing its intellectual property.
Cordless Phone Technology

  • On August 30, 2013, the co initiated litigation against VTech and Uniden in the United States District Court for the Northern District of Texas for infringement. On May 22, 2014, the Court entered a Scheduling Order for the case. The Markman hearing is currently set for October 2, 2014. 
Cell Phone Location 
  • On August 1, 2013, the co initiated litigation against T-Mobile Inc. (TMUS) in the United States District Court for the Middle District of Florida for infringement. On April 24, 2014, the Court transferred the case to the United States District Court for the Western District of Washington, which has not yet entered a Scheduling Order. 
  • On December 6, 2013, the co initiated litigation against AT&T (T) in the United States District Court for the Northern District of Texas for infringement. On March 7, 2014, the Court entered a Scheduling Order for the case. 
Routing & Switching Equipment
  • On March 24, 2014, the co initiated litigation against Cisco Systems (CSCO) in the United States District Court for the District of Delaware for infringement. On July 8, 2014, Spherix filed an Amended Complaint to reflect that certain of the patents asserted were assigned to Spherix's wholly-owned subsidiary NNPT, based in Longview, Texas. By the Amended Complaint, NNPT, LLC was added as a co-plaintiff with Spherix. Cisco's deadline to respond to the Amended Complaint, currently is August 5, 2014. 
  • On May 2, 2014, the co initiated litigation against Juniper Networks (JNPR) in the United States District Court for the District of Delaware for infringement. On July 8, 2014, Spherix filed an Amended Complaint to reflect that certain of the patents asserted were assigned to Spherix's wholly-owned subsidiary NNPT, based in Longview, Texas. By the Amended Complaint, NNPT, was added as a co-plaintiff with Spherix. Juniper's deadline to respond to the Amended Complaint, currently is August 8, 2014. On June 9, 2014, Spherix initiated litigation against Huawei in the United States District Court for the Eastern District of Texas, for infringement. Huawei has not yet answered the Complaint. Huawei's deadline to respond to the Complaint, subject to approval by the Court, currently is September 8, 2014. 
Internet Service Providers
  • On June 11, 2014, the co initiated litigation against Verizon (VZ) in the United States District Court for the Eastern District of Virginia for infringement. On July 2, 2014, Spherix filed an Amended Complaint in the case in which it added allegations of infringement of an additional U.S. patent. Verizon's deadline to respond to the Amended Complaint, subject to change by agreement of the parties or by Order of the Court, currently is August 15, 2014.

6:03 am Headwaters reports EPS in-line, revs in-line; reaffirms FY14 adjusted EBITDA guidance (HW) :

  • Reports Q3 (Jun) earnings of $0.22 per share, in-line with the Capital IQ Consensus Estimate of $0.22; revenues rose 13.4% year/year to $223.4 mln vs the $223.82 mln consensus. 
  • "All of our core product groups, with the exception of siding accessories, delivered excellent top line growth and margin expansion in the quarter. Given our $128 million of trailing twelve months Adjusted EBITDA, we are reaffirming our target range of $130 to $145 million in Adjusted EBITDA for the fiscal year....Our recent bolt-on acquisitions have performed well and contributed to revenue and Adjusted EBITDA growth," added Newman. "We financed most of these acquisitions with debt, yet we remain focused on reducing our net debt to Adjusted EBITDA ratio to the 2.5 to 3.0 range. Based on current trends and our capital structure, we currently expect to achieve this objective in late 2015, although additional acquisitions could extend the timing... Based on the overall momentum we are seeing in our business, we have increased confidence in our outlook for fiscal year 2015. More than 20% of our revenue is generated in Texas, where economic conditions are particularly strong and should continue for several years. In addition to strong end-markets in Texas, we will benefit from a full year of performance from our recent acquisitions, new product introductions and continued strength in fly ash demand and pricing. We look forward to a strong finish to 2014 and positive momentum going into 2015."

5:59 am On The Wires (:WIRES) :

  • Radware (RDWR) announced it has achieved ISO 27001:2013 certification.
  • Rail technology leader Bombardier (BDRBF) Transportation announced that SNCF has exercised an option for 22 additional Francilien commuter EMUs. The order, co-financed by STIF, the Ile-de-France transportation authority, and SNCF, is valued at ~162 million euro ($218 million US). 
  • SKECHERS (SKX) announces plans to expand its European Distribution Centre in Belgium by an additional 25,000 m2 to make the facility the largest company-operated DC in the Walloon Region at a total size of 70,000 m2. 
  • Guidance Software (GUID) announced a partnership with Thales to deliver a full range of best-in-class endpoint security and incident response products and services to the UK market. EnCase products extend the Thales portfolio to identify threats that would otherwise go unnoticed, and to quickly perform incident response and recovery. 

5:30 am Level 3 beats by $0.06, beats on revs (LVLT) : Reports Q2 (Jun) earnings of $0.37 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $0.31; revenues rose 3.8% year/year to $1.63 bln vs the $1.6 bln consensus. 

  • Net income excluded a $0.14 loss for the devaluation of the Venezuelan Bolivar, and $0.02 of tw telecom transaction-related fees 
Segments:
  • Core Network Services - CNS revenue was $1.479 billion in the second quarter 2014, increasing 6.9 percent year-over-year on a constant currency basis.
  • Deferred Revenue - The deferred revenue balance was $1.143 billion at the end of the second quarter 2014, compared to $1.132 billion at the end of the second quarter 2013. 
Co reaffirms FY14 outlook:
Co expects Adjusted EBITDA to grow 14-18% for the full year 2014 and to generate Free Cash Flow in the range of $250-300 mln

5:02 am CNOOC announces Lishui 36-1 Gas Field starts production (CEO) : Co announces that the Lishui 36-1 gas field has commenced production.

Lishui 36-1 gas field is located 150 kilometres away from Wenzhou city Zhejiang province, with an average water depth of approximately 84 meters. The gas field has 4 producing wells, and its primary production facilities include a comprehensive platform and a processing terminal. 

CNOOC Limited has 51% working interest in Lishui 36-1 gas field and acts as the operator, while its partners, Primeline Energy China Limited and Primeline Petroleum Corporation, hold the remaining 36.75% and 12.25% working interest, respectively.

3:40 am On The Wires (:WIRES) :

  • Aussie surf brand, Rip Curl and digital marketing agency, VML Australia, have launched Rip Curl Search GPS, powered by ObjectRocket from Rackspace (RAX). This world-first wearable surfing technology enables Rip Curl to capture and analyse surf data, as well as refine its offering to customers through greater services and products. 
  • Logitech International (LOGI) announced that the SIX Swiss Exchange has granted the Company an extension -- until August 29, 2014 -- for publishing and submitting its Annual Report for Fiscal Year 2014. Logitech's Annual Report was previously scheduled to be published by July 31, 2014. 
  • Canon (CAJ) announced two new compact, super-zoom cameras: the PowerShot SX520 HS and the PowerShot SX400 IS digital cameras.

2:45 am PGT Inc beats by $0.05; beats on revs (PGTI) : Reports Q2 EPS of $0.16 vs $0.11 CIQ est; revs increased 30% YoY to $81.6 mln vs $76.7 mln CIQ est.

  • Gross margin of $26.1 million, an increase of $5.1 million, or 24.3% 
Comeentary:
"...Sales increased 29.9% over the second quarter of 2013, primarily driven by our new construction sales, as well as marketing programs focused on driving our WinGuard products into the repair and remodel market. During the quarter, impact sales grew 33% over prior year and represented 77% of total sales, compared to 76% a year ago. In addition, sales of non-impact products grew 21%..." 

2:19 am Masimo announces CE Mark and limited market release of Radius-7 (MASI) : Co announces CE Mark and limited market release of Radius-7 for the Root patient monitoring and connectivity platform, the first and only wearable, wireless monitor with Masimo's breakthrough rainbow SET technology, enabling early identification of clinical deterioration while offering patients continuous monitoring with freedom of movement. 

2:17 am Boeing delivers ANA's first 787-9 Dreamliner (BA) : Co and All Nippon Airways (:ANA) today celebrated the delivery of the airline's first 787-9 Dreamliner. 

  • ANA will become the world's first airline to operate both the 787-8 and 787-9 variants of the Dreamliner family when the airline launches 787-9 services on domestic Japanese routes in August. 
  • ANA has 29 more 787-9s on order with commitments for 14 more. Sixty customers from around the world have ordered more than 1,000 787s, with more than 160 currently in operation. 

2:16 am Novartis vaccine Bexsero sees high uptake in first large-scale public vaccination program to help protect against devastating meningitis B (NVS) : Co announces the initial results of a large- scale vaccination campaign with Bexsero to help protect against meningitis B within the Saguenay- Lac-Saint-Jean region of Qu bec, Canada. This public program adds to the growing real-world experience of Bexsero, which is approved in 34 countries, including the European Union, Australia and Canada. This regional program is the first of its kind globally and has reached 81% of the campaign's target population within the first three months. This encompasses more than 45,000 infants, young children and adolescents from 2 months to 20 years of age. The high rate of uptake in this public vaccination program with Bexsero demonstrates the value placed on preventing meningitis B within communities that are afforded access. 

2:12 am Jacobs misses by $0.03, misses on revs; reaffirms FY14 EPS guidance (JEC) : Reports Q3 (Jun) earnings of $0.84 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus Estimate of $0.87; revenues rose 4.9% year/year to $3.23 bln vs the $3.39 bln consensus.

  • Excluded in the company's results for the quarter ended June 27, 2014 is an aggregate after tax negative impact of $47.0 million or $0.35 per diluted share related to restructuring efforts. 
Backlog:
  • Co also announced total backlog of $18.5 billion at June 27, 2014, including a technical professional services component of $12.3 billion. 
  • This is up approximately 7.5% from total backlog and up approximately 11.2% from technical professional services backlog of $17.2 billion and $11.1 billion, respectively, at June 28, 2013. 
Commenting on the results for the third quarter, co stated: "Third quarter results reflect good underlying performance by the business. In spite of delays in investment decisions in a number of markets, we were able to continue to build backlog. Our control of SG&A costs was also good. Our customers' capital expenditure forecasts remain robust and our prospect list is good. Our outlook for the fourth quarter and for FY15 continues to be positive." 

Guidance:
Co reaffirms guidance for FY14, sees EPS of slightly

2:00 am Samson Oil & Gas provides weekly operations update (SSN) : Co announces the infill development plan for North Stockyard is to drill 8 middle Bakken wells and 8 Three Forks wells. 
COMMENTARY 

  • Frontier Rig 24 finished drilling the curve at 11,635 feet MD in the Three Forks on the Bootleg 6-14-15TFH. Currently the 7 inch intermediate casing is being run. Following this operation the lateral will be drilled. Once the Bootleg 6-14-15TFH is drilled, the rig will then be moved to the north pad and begin drilling the two Ironbank wells. 
  • A rig is on site repairing the liner on the Matilda Bay 1. Following this work over the fracture stimulation program will be completed. 

1:36 am Famous Dave's elects David Mastrocola as Chairman of the Board of Directors (DAVE) : Co announces that its Board of Directors has elected David Mastrocola as the Company's Chairman of the Board, effective July 28, 2014.

  • David Mastrocola currently serves as Co-Founder and Advisory Chairman of Pleasant Lake Partners. He previously served as a partner and Managing Director of Goldman Sachs, a global investment banking, securities and investment management firm, where he worked from 1987 until his retirement in 2009. 

1:31 am Crane misses by $0.01, reports revs in-line; reaffirms FY14 EPS guidance, revs guidance (CR) : Reports Q2 (Jun) earnings of $1.15 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $1.16; revenues rose 15.6% year/year to $750.1 mln vs the $746.03 mln consensus.

  • Fluid Handling order backlog increased 7% compared to the prior year and increased 13% year-to-date, adjusted for a recent divestiture 
Segments:
  • Fluid Handling - Second quarter 2014 sales decreased $9.3 million, or -2.8%, which included a core sales decline of $10.8 million, or -3.2%, and a divestiture impact of $2.4 million, or -0.7%, partially offset by favorable foreign exchange of $4.0 million, or 1.2%. The core sales decline was driven primarily by unfavorable comparisons for nuclear project based services, although comparisons ease in the second half of this year. 
  • Payment & Merchandising - Sales of $184.6 million increased $99.8 million, or 117.6%, driven primarily by $96.2 million of sales related to the MEI transaction, core sales growth of $0.9 million, or 1.1%, and favorable foreign exchange of $2.7 million, or 3.1%. Operating profit increased to $21.4 million in the quarter, primarily reflecting the impact of the MEI acquisition. 
  • Aerospace & Electronics - Second quarter 2014 sales increased $5.2 million, or 3.0%, reflecting a sales increase of $6.1 million, or 5.7%, in the Aerospace Group, and a sales decline of $0.9 million, or -1.3%, in the Electronics Group. The Aerospace Group sales increase primarily reflected stronger OEM sales activity. The decrease in Electronics Group sales was driven primarily by lower product shipments for defense applications. 
  • Engineered Materials - Sales of $63.4 million were 9.8% higher than the second quarter of 2013, driven by higher sales to recreational vehicle equipment manufacturers. 
Guidacne:
Co reaffirms guidance for FY14, sees EPS of $4.55-4.75, excluding non-recurring items, vs. $4.68 Capital IQ Consensus Estimate; sees FY14 revs of ~$3 bln vs. $3.04 bln Capital IQ Consensus Estimate.

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