InPlay from Briefing.com

July 26, 2016

11:55 am Ingenico misses 1H16 estimates; reaffirms FY16 outlook (INGIY) :

  • Revenue of 1.133 bln , just below ests: up 12% on a comparable basis, up 7% on a reported basis
  • Strong growth across most regions: Excluding Brazil, organic growth of 15% in the first half
  • ePayments accelerating; double-digit growth expected in the second half
  • EBITDA of 244 million, equal to 21.5% of revenue
  • Net Profit attributable to Ingenico Group shareholders of 122 million
  • Objective for 2016 maintained: Organic growth above or equal to 10%; EBITDA margin of c. 21%

11:52 am LVMH reports 1H results with organic rev up 4% (LVMUY) :

  • 1H16 revenue +3% to EUR 17.2 bln vs. EUR 16.97 bln ests; net profit +8% to EUR 1.7 bln vs. EUR 1.73 bln ests.
  • Organic revenue growth was 4% compared to the same period in 2015.
  • The American market is dynamic, while Europe remains on track, with the exception of France, which has been affected by a decrease in tourism. Asia improved steadily during the period.
    • Strong momentum in the United States, and continued growth in the European market
    • Excellent performance from Wines and Spirits in all regions
    • Success of iconic lines and new products at Louis Vuitton, where profitability remains at an exceptional level
    • Impressive growth of Fendi, which celebrates its 90(th) year
    • Continued investment in the fashion brands
    • Strong momentum at Parfums Christian Dior, led by successful innovations
    • Market share gains at Bvlgari and the successful refocusing of TAG Heuer on its core range
    • Exceptional progress at Sephora which is strengthening its position in all operating regions and in the digital universe.
  • Strong momentum in the United States, and continued growth in the European market
  • Excellent performance from Wines and Spirits in all regions
  • Success of iconic lines and new products at Louis Vuitton, where profitability remains at an exceptional level
  • Impressive growth of Fendi, which celebrates its 90(th) year
  • Continued investment in the fashion brands
  • Strong momentum at Parfums Christian Dior, led by successful innovations
  • Market share gains at Bvlgari and the successful refocusing of TAG Heuer on its core range
  • Exceptional progress at Sephora which is strengthening its position in all operating regions and in the digital universe.
  • Despite the context of geopolitical and currency uncertainties, LVMH will continue to gain market share thanks to the numerous product launches planned before the end of the year and its geographic expansion in promising markets, while continuing to manage costs.

11:52 am European Markets Closing Prices (:SUMRX) : European markets are now closed; stock markets across Europe performed as follows:

  • UK's FTSE: + 0.2%
  • Germany's DAX: + 0.5%
  • France's CAC: + 0.2%
  • Spain's IBEX: -0.1%
  • Portugal's PSI: + 0.4%
  • Italy's MIB Index: + 0.0%
  • Irish Ovrl Index: -0.9%
  • Greece ASE General Index: + 0.2%

11:48 am Comerica increases quarterly dividend to $0.23/share from $0.22/share; Board also authorized an increase to its share repurchase plan by up to 10 mln additional shares (CMA) :

These actions were taken in conjunction with its announcement on June 29, 2016, that the Federal Reserve did not object to its annual capital plan and contemplated capital distributions under the 2016 Comprehensive Capital Analysis and Review.

  • The plan includes up to $440 million in equity repurchases for the four-quarter period commencing in the third quarter 2016 and ending in the second quarter 2017.

11:46 am Sangamo BioSci announces the presentation of preclinical data that 'supports' the clinical development of its gene therapy for the treatment of hemophilia A at the World Federation of Hemophilia 2016 World Congress (SGMO) :

This new therapeutic comprises an adeno-associated virus cDNA human Factor 8 construct driven by Sangamo's synthetic liver specific promoter, which in preclinical studies is at least three times more potent than existing AAV-based cDNA constructs currently under evaluation for the treatment of hemophilia A.

  • The data, presented by Sangamo scientists at the World Federation of Hemophilia 2016 World Congress demonstrated production of supraphysiologic levels of human Factor VIII in a mouse model of the disease and in non-human primates.
  • Mean levels of hFVIII several fold in excess of normal, obtained using research grade AAV in NHPs, were confirmed by dosing with AAV manufactured using Sangamo's clinical process. In these animals, mean hFVIII levels ranged from 5 - 230% of normal and were obtained using AAV doses in the 6 x 1011 -- 6 x 1012 vgs/kg range - the most potent dose response in NHPs thus far disclosed for an hF8 cDNA.
  • Based on other studies in the field, vector dose and corresponding hFVIII expression levels observed in NHPs are highly predictive of those observed in patients. The high potency of this novel therapeutic may enable clinically relevant levels of hFVIII to be obtained using lower vector doses, which potentially provides a better therapeutic risk/benefit profile for patients. Sangamo is conducting additional studies to determine the minimal effective dose necessary to provide therapeutic benefit.
  • The co will focus on accelerating clinical development of its AAV cDNA approach for the treatment of hemophilia A, with the goal of filing an investigational new drug application with the FDA in 2016.
  • The co expects to provide updated guidance for its in vivo genome editing approach for hemophilia A and other programs during its second quarter 2016 conference call.

11:46 am Currency Commentary: Yen Surge Suggest Doubt BoJ Can Impress (:SUMRX) :

  • The Dollar Index is straddling the 97 level as we await tomorrow's Fed statement. Economic data was strong ahead of the meeting with Case Shiller, Consumer Confidence and New Home Sales all boasting solid results. The market expectations appear to be set ahead of the Fed and that is for the committee to leave rates unchanged but strike a somewhat hawkish tone in its directive. If the Fed does provide markets with this base line scenario it could very well turn into a non-event as it will not change the current narrative. But participants will remain on high alert ahead of the statement.
  • The euro is trying to move back above the 1.10 level but continues to see difficulty in finding a bid. The single currency has found some temporary support at the 1.0950 area. There are some economic data points of note at the end of the week and the ECB bank stress tests will be key for the region, but at the moment the single currency is being led by the dollar and Fed expectations.
  • The pound continues to hold the 1.3080 area. Overnight, Bank of England's Martin Weale stated that there was enough evidence for him to consider further easing. This will continue to lead the market to expect a 25-50 bps rate cut and perhaps an increase to the banks current GBP 375 bln asset purchase program. But it is notable that the expectations of further easing did little to dent the pound.
  • The yen saw a strong overnight rally as it broke out from the 106 level to make a run to 104. The move comes ahead of Thursday night's Bank of Japan meeting in which it is expected to provide further easing. The move was the biggest single day for yen since the Brexit. Concern over the Japanese economy is certainly a driver here following the poor trade numbers out Sunday night. But it also suggests that there is doubt that the BoJ can reach the high expectations in the market, especially following the January debacle on the NIRP policy (BONDX, FOREX). 

11:40 am Virgin America announces the merger with Alaska Air Group (ALK) has been approved by shareholders (VA) : The merger with Alaska Air Group (ALK) is expected to close in 4Q16.

11:34 am New Supply (BONDX) :

Treasury Auction Preview

  • $34 billion, 5-yr Treasury auction (results at 13:00 ET)
  • Today's 5-yr auction will follow yesterday's woeful 2-yr offering that was met with the weakest bid-cover ratio since 2008, which created a 1.2-basis point tail.
  • Prior auction results:
    • High yield: 1.128%
    • Bid-to-cover: 2.45
    • Indirect bid: 57.2%
    • Direct bid: 3.7%
    • Primary takedown: 39.1%
  • High yield: 1.128%
  • Bid-to-cover: 2.45
  • Indirect bid: 57.2%
  • Direct bid: 3.7%
  • Primary takedown: 39.1%
  • Average results of prior 12 auctions:
    • High yield: 1.495%
    • Bid-to-cover: 2.29
    • Indirect bid: 59.2%
    • Direct bid: 7.7%
  • High yield: 1.495%
  • Bid-to-cover: 2.29
  • Indirect bid: 59.2%
  • Direct bid: 7.7%

10:49 am Fiat Chrysler company FCA US to invest $1.48 bln in its Sterling Heights Assembly Plant to retool it to build the next generation Ram 1500 (FCAU) :

  • FCA US announces that it will invest $1.48 bln in its Sterling Heights Assembly Plant to retool it to build the next generation Ram 1500 and support the future growth of the Ram brand
  • The co also confirmed that production of the Chrysler 200 will end in Dec 2016 in order to begin the transformation of the plant.
  • Future plans for the Warren Truck Assembly Plant which currently builds the Ram 1500, will be announced at a later date.

10:47 am Notable movers of interest: Texas Instruments hits 16 year-high following Q2 beat (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

  • TXN (70.55 +6.54%): Stock hits 16 year-high following Q2 beat on EPS and revenue.
  • WAT (156.74 +5.59%): Reports Q2 EPS beats of $0.13, and a beats on revenue ($537 mln vs. $523.18 mln consensus).
  • NFLX (91.85 +4.78%): Director J. Hoag's discloses purchase of 600K shares worth ~$51.9 mln (was disclosed last night, purchases made 7/21-7/25).

Large Cap Losers

  • MBLY (42.91 -12.96%): Shares slide after announcing co won't work with Tesla beyond its current EyeQ3 chip.
  • GILD (81.63 -7.82%): Shares hit 3-week low following Q2 earnings. Needham downgrades the stock on overal revenue growth concerns.
  • MCD (122.45 -3.89%): Shares drop as Q2 comp sales dissapoint. Co reported 3.1% global comparable sales growth vs. 3.5% consensus.

Mid Cap Gainers

  • WWW (23.83 +6.91%): Q2 EPS beat by $0.02, reports revs in-line, reaffirms FY16 EPS, revs guidance.
  • CR (61.93 +6.87%): Shares rise following Q2 beat on eps, revenue, and the co raised FY16 EPS guidance. Sees EPS of $4.00-4.20, excluding non-recurring items ($4.03 consensus).
  • WYNN (102.04 +4.75%): Shares rise following LVS earnings.

Mid Cap Losers

  • SANM (24.25 -16.78%): Shares sharply lower following Q3 earnings report. Shares have outperformed the broader market S&P 500, +44.3% vs +6.4% in 2016.
  • PLAY (46.58 -3.74%): Stiffel lowers to hold, analysts turn bearish on sector (PNRA, CMG, LOCO...). 

10:29 am Inovio Pharma doses the first subject in its multi-center phase I trial to evaluate its Zika DNA vaccine (INO) : In addition to the previously announced US FDA approval for the conduct of the study, Health Canada's Health Products and Food Branch has also approved this study, which will be conducted at clinical sites in Miami, Philadelphia, and Quebec City.

10:08 am SAExploration Holdings announces a 1:135 reverse split; will begin trading on a split-adjusted basis when the market opens on July 27 (SAEX) :  

10:07 am Criteo drops to lows - SteelHouse countersues Criteo alleging over 50% of company's revenue comes from fraudulent sources (CRTO) : In the suit, SteelHouse alleges that 52% of Criteo's clicks, the primary source of the company's revenue, do not originate from any known website or publisher. SteelHouse uncovered these findings after analyzing third party customer data that showed the source of Criteo's traffic for customers that were active with both SteelHouse and Criteo since January 2016. Additionally, the lawsuit alleges Criteo inflates its performance through fraudulent click practices; as an example, 16% of Criteo clicks are from users clicking the same advertisement within a 30-minute period -- eight times the industry standard.

10:06 am Exxon Mobil to expand ultra-low sulfur fuels production at Beaumont refinery by more than 40,000 barrels per day (XOM) : Construction is scheduled during the second half of 2016 to install a selective cat naphtha hydrofining unit, which uses a proprietary catalyst system to remove sulfur while minimizing octane loss. Startup of the flexible technology, known as SCANfining, is expected in 2018. Gasoline produced using this technology will meet the U.S. Environmental Protection Agency's Tier 3 gasoline sulfur specifications.

10:02 am Microsoft edges higher off the opening to notch a fresh 15-year high above last week's Earnings gap high of $56.84 (MSFT) : All-time highs reside just shy of $60-mark going back to 1999.

10:01 am United Development Funding IV: NASDAQ hearings panel approves continued listing of United Development Funding IV Shares (halted) (UDF) :

  • NASDAQ Hearings Panel has determined to continue the listing of the Trust's common shares on The NASDAQ Stock Market. The Trust's continued listing is subject to the condition that, on or before September 12, 2016, the Trust evidence compliance with Nasdaq Listing Rule 5250(c)(1) by filing all necessary periodic reports with the Securities and Exchange Commission. The Trust must also be able to demonstrate that it satisfies all other quantitative and qualitative requirements for continued listing on NASDAQ.
  • Trust currently expects that it will be in a position to file the 2015 Form 10-K, First Quarter Form 10-Q and Second Quarter Form 10-Q and thereby evidence full compliance with the Filing Requirement on or before the September 12, 2016 date required by the Panel.
  • Trading in UDF IV's securities on NASDAQ has been halted since February 18, 2016, and the Trust expects that the trading halt will continue at least until the Trust has become fully current in its periodic filing obligations with the SEC. No assurance can be given regarding the resumption of regular trading of the Trust's securities on any market.

9:45 am Opening Market Summary:Averages Flat as Oil Rebounds (:WRAPX) :

The stock market began its day on a flat note as the S&P 500 (+0.1%) and the Nasdaq Composite (+0.1%) trade ahead of the Dow Jones Industrial Average (UNCHF).

Six sectors trade in the green with technology (+0.4%) and industrials (+0.4%) leading to the upside. The remaining gainers sport upticks between 0.1% (consumer staples) and 0.3% (materials). On the flipside, health care (-0.3%) and telecom services (-0.5%) sport the largest losses.

The PHLX Semiconductor Index (+1.5%) demonstrates relative strength as the group trades higher in sympathy with Texas Instruments (TXN 70.28, +4.06). The company beat analysts' estimates for the quarter and received several upgrades following the positive quarter.

Biotechnology demonstrates relative weakness as the iShares Nasdaq Biotechnology ETF (IBB 280.63, -1.63) declines 0.6%. The sub-group is trading lower in sympathy with Gilead Sciences (GILD 83.00, -5.55). The company beat bottom-line estimates for the quarter, but lowered its sales guidance for the full year.

On the commodities front, WTI crude trades lower by 0.1% ($43.10/bbl; -$0.03) while gold trades flat at $1,319.20/ozt.

9:44 am Oramed Pharmaceuticals appointed Dr. Roy Eldor MD PhD to the newly created position of Chief Medical Director (ORMP) : He is currently Director of the Diabetes Unit at the Institute of Endocrinology, Metabolism & Hypertension, Tel-Aviv Sourasky Medical Center. Prior to that, Dr. Eldor served as Principal Scientist at Merck Research Laboratories, Clinical Research - Diabetes & Endocrinology, Rahway, New Jersey.

9:40 am Apple - - 50-Day Alert ahead of tonight's earnings (AAPL) : Stock opens slightly lower to challenge its 50-day simple moving average along the $97-area ahead of tonight's earnings release.

9:36 am First Merchants reports Q2 EPS of $0.49 vs $0.46 Capital IQ Consensus Estimate (FRME) : Net-interest income totaled a record $56 million for the quarter and reported net-interest margin, of 3.86 percent, increased by 5 basis points over the second quarter of 2015 total of 3.81 percent.

9:35 am FelCor Lodging missed by $0.02, missed on revs; lowered FY16 FFO below consensus premarket (FCH) :

  • Reports Q2 (Jun) funds from operations of $0.32 per share, $0.02 worse than the Capital IQ Consensus of $0.34; revenues fell 1.3% year/year to $237.9 mln vs the $241.22 mln Capital IQ Consensus. 
    • Same-store RevPAR increased 2.6% over the same period in 2015.
    • Adjusted EBITDA increased $2.7 million to $72.4 million over the same period in 2015.
  • Same-store RevPAR increased 2.6% over the same period in 2015.
  • Adjusted EBITDA increased $2.7 million to $72.4 million over the same period in 2015.
  • Co issues downside guidance for FY16, lowers FFO to $0.87-0.92 from $0.93-0.99 vs. $0.96 Capital IQ Consensus Estimate. 
  • "We are updating our 2016 guidance to reflect second quarter results and ongoing softness in corporate transient demand for the remainder of the year. We continue to expect RevPAR for our portfolio will outperform that of our peers due to our high-quality, well-located portfolio in markets with relatively lower supply growth. Our outlook assumes Hotel EBITDA for the Wyndham hotels equals the amount guaranteed by Wyndham for 2016 (which equates to ~$59 million of Hotel EBITDA).
  • RevPAR for same-store hotels will increase 3.0 - 4.0%; Adjusted EBITDA will be $237.0 million - $243.0 million (excludes $1.5 million of EBITDA from the Renaissance Esmeralda Indian Wells Resort and Holiday Inn Nashville Airport from the time of sale to Dec 31, 2016). 

9:27 am Trustmark reports EPS in-line (TRMK) :

  • Reports Q2 (Jun) earnings of $0.40 per share, in-line with the Capital IQ Consensus of $0.40.
  • Loans held for investment increased $137.2 million, or 7.6% annualized, from the prior quarter and $958.1 million, or 14.9%, year-over-year.

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

  • Zynga (ZNGA) announced the launch of Words With Friends EDU. The free educational game is now available for students, teachers and parents on the App Store for iPad, Google Play for Android tablet and on the Web.
  • Tecogen (TGEN) announced additional project wins from National Mechanical Services. The two new projects bring total relationship value with the expert contractor to in excess of $1.5 million.
  • Halozyme Therapeutics (HALO) and Eisai (ESALY) dosed the first patient in a collaborative phase 1b/2 clinical trial to assess whether Eisai's eribulin mesylate (:HALAVEN) in combination with Halozyme's investigational drug PEGPH20 (PEGylated recombinant human hyaluronidase) can improve overall response rate -- the proportion of women that have a predefined reduction in tumor burden -- as compared with eribulin alone as a therapy in women with advanced or metastatic, High-Hyaluronan HER2-negative breast cancer.
  • Stereotaxis (STXS) announced the market release of its second generation V-CAS Deflect catheter advancement system in Europe.
  • LSB Industries (LXU) announced that, due to an intense lightning storm, its El Dorado, Arkansas facility suffered a complete power outage on July 14, 2016, which caused production to be halted. Subsequent restart activities indicated that normal operating parameters had been affected from the outage and repairs were required. Adjustments to El Dorado's ammonia plant synthesis loop are currently being made and the Company expects to restore ammonia production at nameplate capacity during the first week of August 2016. 
  • Nortek (NTK) disclosed that on July 25, 2016, Melrose confirmed that Melrose's shareholders approved (i) the acquisition of the Company by Melrose for purposes of the United Kingdom stock exchange listing rules, (ii) the creation and authorization of the issuance of ordinary shares of Melrose for purposes of Melrose's rights issue of its ordinary shares to its shareholders and (iii) the authorization of Melrose to cancel the listing of Melrose's shares on the premium listing segment and to re-admit the listing of such shares on the standard listing segment with respect to the trading of Melrose's shares on the London Stock Exchange. Therefore, the requirement that Melrose seek the approval of its shareholders as a condition to the Offer has been satisfied.

9:22 am Tata Steel reported Q1 2017 saleable steel sales of 2.15 mln tons, up 0.1% YoY (:TATLY) :

  • Co registered Hot Metal and Crude Steel production of 3.01 million tonnes (up by 16.5 % y-o-y) and 2.52 million tonnes (up by 7.6 % y-o-y) respectively for Q1 FY17.
  • Saleable Steel production is 2.34 million tonnes (up by 4.8 % y-o-y) and Sales is 2.15 million tonnes (up by 0.1 % y-o-y) for Q1 FY17.

9:20 am S&P futures vs fair value: -0.70. Nasdaq futures vs fair value: +0.90. :

The stock market is on track for a flat open as the S&P 500 futures trade one point below fair value.

Index futures trade on a mixed note as investors examine the latest battery of U.S. earnings releases and developments out of Japan. Earnings reports continue to roll in on a mixed note as cautious guidance from Dow component Caterpillar (CAT 77.81 -0.88) overshadows an otherwise positive quarter. Fellow industrial name 3M (MMM 177.60, -2.03) is also under pressure this morning after lowering its revenue outlook for the year. However, the conglomerate did top analysts' bottom-line estimates and issue largely in-line earnings guidance.

Global bourses trade on a mixed note as a reduced likelihood of stimulus measures from Japan weighs on sentiment. Japan's Finance Minister Taro Aso said the Bank of Japan will be allowed to make its own decision regarding potential stimulus measures. However, overnight reports indicated that the Japanese government is mulling a JPY6 trillion fiscal stimulus package.

On the corporate front, United Technologies (UTX 106.50, +1.85) trades higher by 1.8% after beating top- and bottom-line expectations for the quarter. The industrial name raised its earnings estimates for the year, projecting earnings between $6.45 and $6.60 for the year. Starbucks (SBUX 58.73, +0.78) has gained 1.4% after being added to the Conviction Buy List at Goldman. Separately, DuPont (DD 69.50, +0.62) trades higher by 0.9% after surpassing analysts' estimates for the quarter and raising the low end of its full-year earnings guidance.

Today's economic data will be capped off with Consumer Confidence for July (Briefing.com consensus 96.0) and New Home Sales for June (Briefing.com consensus 560k), which will both be released at 10:00 ET.

9:14 am DepoMed: Starboard delivers letter to shareholders, says moving forward with consent solicitation to garner shareholder support to call a special meeting (DEPO) :

Highlights of the letter:

  • We continue to have significant concerns regarding serious corporate governance deficiencies, questionable capital allocation decisions, and actions taken by the Board to stymie strategic interest in acquiring Depomed. We believe the Board clearly lacks the independence, objectivity, and perspective needed to make decisions that are in the best interests of shareholders.
  • Following our initial evaluation of well over 100 qualified potential board candidates, we have continued to meet with numerous pharmaceutical executives to supplement our slate with additional pharmaceutical experience. Unfortunately, given the extensive requirements and restrictions under the Depomed Bylaws for calling the Special Meeting, the addition of any new, highly qualified nominees to our slate at this time would effectively require us to submit a new record date request notice to Depomed, thereby restarting the clock under the Bylaws for the Special Meeting and further delaying our efforts to remove and replace the Board. Further delay is unpalatable; therefore, we have instead appointed two exceptionally qualified former senior pharmaceutical executives -- Robert G. Savage and James L. Tyree -- as advisors to assist in our solicitation efforts given their significant industry knowledge and experience.
  • Today, we are also announcing that we will proceed with our original solicitation to call the Special Meeting by going through the procedures required for a shareholder to call a special meeting under Depomed's Bylaws by soliciting the support of the holders of at least 10% of Depomed's outstanding shares entitled to vote. The Company has set a record date of August 19, 2016, for determining the shareholders entitled to provide their written request to call the Special Meeting. Following the Record Date, Starboard will have up to 30 days to deliver the written requests to Depomed along with the other information required under the Bylaws, including the date Starboard would like to set for holding the Special Meeting, which cannot be less than 35 nor more than 60 days after Starboard submits the Special Meeting Notice.

9:12 am On The Wires (:WIRES) :

  • Sanofi Pasteur, the vaccines division of Sanofi (SNY), announced that its first doses of Fluzone (Influenza Vaccine) for the 2016-2017 influenza season have been released by the FDA for shipment. This represents the first of more than 65 million total doses of seasonal influenza vaccine manufactured by Sanofi Pasteur that will be delivered to U.S. health care providers and pharmacies beginning in July and continuing throughout the remainder of the year.
  • K+S Aktiengesellschaft (KPLUF) issued a statement saying that the revival of potash production at the Siegfried-Giesen site, which is being reviewed under a planning decision procedure set to still last several months from today's perspective, is not expected to occur soon against the backdrop of a recently released assessment of economic conditions and of market conditions as forecast at present.
  • ClearOne (CLRO) announces that it has been awarded a new patent covering audio streaming technology.

9:12 am Golden Star Resources prices $65 mln of 7.0% convertible senior notes due 2021 and prices $30 mln of its common shares in a public offering at $0.75/share (GSS) :

  • As part of the notes offering, the Company has entered into exchange and purchase agreements with two holders of its 5.0% convertible senior unsecured debentures due June 1, 2017 to exchange ~$40.0 million principal amount of the outstanding convertible debentures for an equal principal amount of newly issued Notes

9:09 am CU Bancorp reports Q2 EPS of $0.36 vs $0.36 Capital IQ Consensus Estimate (CUNB) : The net interest margin in the second quarter of 2016 was 3.81%, compared to 3.87% in the second quarter of 2015.

9:07 am China Ceramics states that is not aware of any material corporate developments that could account for its unusual trading activity (CCCL) :  

9:01 am Sotherly Hotels increases quarterly dividend to $0.095/share from $0.09/share (SOHO) :  

9:01 am S&P futures vs fair value: -1.20. Nasdaq futures vs fair value: +0.10. (:WRAPX) :

The S&P 500 futures trade one point below fair value.

Just released, the Case-Shiller 20-city Home Price Index for May fell to 5.2%, which was below the Briefing.com consensus of 5.4%. This followed the previous month's unrevised reading of 5.4%. 

9:01 am Tetra Tech receives a $125 mln, single-award contract to provide comprehensive architecture-engineering services to the U.S. Agency for International Development (TTEK) : Under the five-year Engineering Support Program, co will provide engineering services, construction oversight, and quality assurance assistance to implement USAID's infrastructure design and construction activities.

8:59 am On The Wires (:WIRES) :

  • Progress (PRGS) today announced the appointment of Mitch Breen to the role of CRO. 
  • Cubic Global Defense, a business unit of Cubic Corporation (CUB), today announced an award of $13.9 million from Oasis Advanced Engineering to produce and deliver Crewstation Subsystems in support of the Bradley Fighting Vehicle Conduct of Fire Trainer.
  • First Cash Financial Services (FCFS) and Cash America International (CSH) today announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, with respect to the proposed business combination of First Cash and Cash America, has expired, concluding antitrust review of the transaction under the HSR Act and satisfying one of the important conditions to the closing of the pending transaction. The co' s also announced today the entry by First Cash into a $400 million unsecured revolving bank credit facility for the combined company, which will become effective upon the completion of the proposed transaction subject to the satisfaction of customary closing conditions.

8:55 am Itron recommended by the National Grid (NGG) as its Advanced Metering Functionality solution provider in Massachusetts (ITRI) :

  • The utility has proposed use of its OpenWay smart grid platform to meet the AMF objectives of its Grid Modernization Plan in Massachusetts.
  • National Grid's proposal is subject to approval from the Massachusetts Department of Public Utilities, which ordered the filing of a 10-year Grid Modernization plan consistent with state policy objectives, and subject to National Grid and Itron agreeing on a contract.

8:55 am S&P futures vs fair value: -1.00. Nasdaq futures vs fair value: +1.30. (:WRAPX) :

The S&P 500 futures trade one point below fair value.

Equity indices across the Asia-Pacific region ended Tuesday on a mixed note with Japan's Nikkei (-1.4%) showing relative weakness. The retreat in Japanese equities was accompanied by yen strength that sent the dollar/yen pair to 104.00. The currency pair has inched up to 104.35, which leaves the yen up 1.4% against the dollar. The yen strength began building after Japan's Finance Minister Taro Aso said the Bank of Japan will be allowed to make its own decision on stimulus.

  • In economic data:
    • Japan's Corporate Services Price Index 0.2% year-over-year (consensus 0.1%; last 0.2%)
    • Hong Kong's trade deficit HKD45.60 billion (last deficit of HKD26.20 billion)
    • South Korea's Q2 GDP +0.7% quarter-over-quarter, as expected (last 0.5%); +3.2% year-over-year (consensus 2.9%; last 2.8%)
    • New Zealand's June trade deficit narrowed to NZD3.31 billion from NZD3.63 billion (expected deficit of NZD3.30 billion)
    • Singapore's June Industrial Production -2.5% month-over-month, as expected (last -0.4%); -0.3% year-over-year (consensus -0.2%; last 0.8%)
  • Japan's Corporate Services Price Index 0.2% year-over-year (consensus 0.1%; last 0.2%)
  • Hong Kong's trade deficit HKD45.60 billion (last deficit of HKD26.20 billion)
  • South Korea's Q2 GDP +0.7% quarter-over-quarter, as expected (last 0.5%); +3.2% year-over-year (consensus 2.9%; last 2.8%)
  • New Zealand's June trade deficit narrowed to NZD3.31 billion from NZD3.63 billion (expected deficit of NZD3.30 billion)
  • Singapore's June Industrial Production -2.5% month-over-month, as expected (last -0.4%); -0.3% year-over-year (consensus -0.2%; last 0.8%)

---Equity Markets---

  • Japan's Nikkei lost 1.4% with nine sectors ending in the red. Materials (-2.4%), financials (-2.2%), and energy (-2.1%) lagged while communications (+0.2%) outperformed. Toshiba sank 9.2% while TDK, Alps Electric, Nitto Denko, Olympus, Kyocera, Yokohama Rubber, and Sony Financial Holdings lost between 3.8% and 5.4%.
  • Hong Kong's Hang Seng added 0.6% with casino names leading the advance. Galaxy Entertainment and Sands China gained 6.5% and 5.8%, respectively, after Sheldon Adelson made upbeat comments about regional industry trends. Financials like China Life Insurance, Bank of East Asia, Ping An Insurance, Hang Seng Bank, and Bank of China added between 0.9% and 1.5%.
  • China's Shanghai Composite advanced 1.1%. China Animal Husbandry Industry, SAIC Motor, Shandong Gold-Mining, and Tangshan Sanyou Chemical added between 6.6% and 7.8%.

Major European indices are mixed with Italy's MIB (-0.3%) struggling to keep pace with other markets. The overall investor sentiment was dampened after comments from Japanese officials downplayed the immediate need for stimulus. Financials have shown relative weakness in Europe while other stocks have had a better showing.

  • Economic data was limited:
    • UK's BBA Mortgage Approvals 40,100 (expected 40,200; last 41,800)
    • Spain's PPI -4.7% year-over-year (last -5.6%)
  • UK's BBA Mortgage Approvals 40,100 (expected 40,200; last 41,800)
  • Spain's PPI -4.7% year-over-year (last -5.6%)

---Equity Markets---

  • Germany's DAX has added 0.4% with Volkswagen, Daimler, and BMW up between 0.9% and 2.2%. Financials have faced some selling pressure with Deutsche Bank falling 3.0% and Commerzbank sliding 5.0%.
  • UK's FTSE is higher by 0.3% with select miners among the leaders. Fresnillo, Randgold Resources, Rio Tinto, and BHP Billiton are up between 1.5% and 4.7%. On the downside, consumer names Tesco and Sainsbury are down 3.9% and 2.2%, respectively, while homebuilders Barratt Developments and Taylor Wimpey hold respective losses of 2.0% and 1.7%.
  • France's CAC has ticked higher by 0.1%. Exporters Valeo, Michelin, Peugeot, and Renault show gains between 1.1% and 2.6% while financials lag. Societe Generale, AXA, and Credit Agricole show losses between 0.5% and 1.2%.
  • Italy's MIB has given up 0.3% with Mediaset falling 9.8%. Financials like Unicredit, Mediobanca, Banca Pop Emilia Romagna, UBI Banca, and Banco Popolare are down between 1.3% and 3.1%.

8:51 am Tennant beats by $0.13, beats on revs; raises FY16 EPS guidance, narrows revs guidance, both in-line (TNC) :

  • Reports Q2 (Jun) earnings of $0.85 per share, $0.13 better than the Capital IQ Consensus of $0.72; revenues rose 0.6% year/year to $216.8 mln vs the $210.61 mln Capital IQ Consensus.
    • Co raises guidance for FY16, sees EPS of $2.35-2.60 vs. $2.36 Capital IQ Consensus Estimate, up from $2.25-2.55; co also narrows FY16 revs guidance to $800-820 mln vs. $807.63 mln Capital IQ Consensus Estimate, from $795-825 mln
  • Co raises guidance for FY16, sees EPS of $2.35-2.60 vs. $2.36 Capital IQ Consensus Estimate, up from $2.25-2.55; co also narrows FY16 revs guidance to $800-820 mln vs. $807.63 mln Capital IQ Consensus Estimate, from $795-825 mln
  • Foreign currency exchange headwinds in 2016 are estimated to negatively impact operating profit in the range of $3 million to $4 million, or a negative impact of approximately $0.10 to $0.15 per diluted share.
  • Co said, "Looking ahead, we will continue to face global economic volatility which can lead to lumpy order patterns, particularly in our industrial sector. We are narrowing our full year revenue guidance, while raising our earnings guidance to reflect a less adverse foreign currency exchange environment than we previously anticipated. We remain committed to balancing our growth strategies with continued discipline in spending."

8:49 am Active Power announces its Board is conducting a review of strategic and financial alternatives 'to potentially accelerate key growth initiatives and enhance total shareholder value' --shares halted-- (ACPW) :

Co has engaged Vinson & Elkins LLP as its legal advisor in connection with its review of strategic and financial alternatives.

  • Co states, "We believe customers may be delaying capital investment spending during this period of economic uncertainty and slow global growth. In addition, while we do not foresee an immediate need for capital, our current share price and the capital markets environment create less than ideal conditions for traditional equity financings that the company had pursued in the past when contemplating its longer term strategic planning. This review process will enable us to evaluate various opportunities intended to enhance the company's profitability, including without limitation a sale of the company, new investors, and a transition into other profitable businesses."
  • In light of these developments, co will not be hosting a conference call to review its 2Q16 results.

8:47 am Banro CFO Kevin Jennings will resign after accepting a position at another firm; co will conduct a search for a new CFO (BAA) :  

8:46 am On The Wires (:WIRES) :

  • Evoke Pharma (EVOK) announced that the FDA has conditionally accepted the proprietary brand name, "Gimoti," for the Company's product candidate, EVK-001 (metoclopramide nasal spray).
  • Xtant Medical Holdings (XTNT) announced the expansion of its tissue processing facility in Belgrade, MT, which now includes an additional seven new processing rooms. This more than doubles the capacity of processing rooms available for production.
  • UQM Technologies (UQM) signed an extension to its long-term supply agreement with Proterra. 

8:40 am TEGNA beats by $0.02, reports revs in-line, separately announced the acquisition of DealerRater, financial terms were not disclosed (TGNA) :

  • Reports Q2 (Jun) adj earnings of $0.50 per share, $0.02 better than the Capital IQ Consensus of $0.48; revenues rose 7.3% year/year to $811.79 mln vs the $814.74 mln Capital IQ Consensus.
    • Martore continued, "Looking ahead to the second half of the year, we continue to be very well positioned in both our Media and Digital Segments to maximize on market demand for our services. We expect political revenue to ramp up steadily in the third and fourth quarters as a longer-than-usual primary process led to delayed ad buys from front running candidates. We also are seeing robust advertising from the Olympics this summer driven by our strong NBC footprint."
  • Martore continued, "Looking ahead to the second half of the year, we continue to be very well positioned in both our Media and Digital Segments to maximize on market demand for our services. We expect political revenue to ramp up steadily in the third and fourth quarters as a longer-than-usual primary process led to delayed ad buys from front running candidates. We also are seeing robust advertising from the Olympics this summer driven by our strong NBC footprint."
  • Acquisition news:
    • TEGNA announces it will acquire DealerRater, an automotive consumer review website, financial terms were not disclosed.
    • The transaction is expected to close by the end of August.
  • TEGNA announces it will acquire DealerRater, an automotive consumer review website, financial terms were not disclosed.
  • The transaction is expected to close by the end of August.

8:40 am Cardiome Pharma prices 10 mln common shares from treasury at a price to the public of $3.00 per common share for aggregate gross proceeds $30 mln (CRME) :  

8:36 am Air Methods sees Q2 EPS and revs below consensus (AIRM) :

  • Co issues downside guidance for Q2 (Jun), sees EPS of $0.69-0.71 vs. $0.91 Capital IQ Consensus Estimate; sees Q2 (Jun) revs of $293 mln vs. $310.96 mln Capital IQ Consensus Estimate. Total patient transports by community bases increased 15.9% to 18,662 from 16,105 in the second quarter of 2015.
  • Preliminary net revenue per transport increased 1.9% to $11,516 as compared with $11,298 in the prior-year quarter with there being minimal impact from TSCF.

8:36 am CNH Industrial reports EPS in-line, beats on revs; Co confirms its 2016 guidance (CNHI) :

  • Reports Q2 (Jun) earnings of 0.10 per share, in-line with the Capital IQ Consensus of 0.10; revenues fell 2.9% year/year to 6.75 bln vs the 5.86 bln Capital IQ Consensus.
  • Industrial Activities operating profit and margin increased year-over-year, led by improvements in Agricultural Equipment, Commercial Vehicles, and Powertrain segments: Agricultural Equipment profitable in all regions, with best-in-class operating margin at 10.7% Commercial Vehicles solidly profitable, with 3.9% operating margin
  • Agricultural Equipment's net sales decreased 7.5% for the second quarter 2016 compared to the same period in 2015 (down 6.3% on a constant currency basis), as a result of lower industry volume, unfavorable product mix in the row crop sector in NAFTA and unfavorable industry volume in the small grain sector in EMEA
  • Construction Equipment's net sales decreased 19.6% for the second quarter 2016 compared to the same period in 2015 (down 18.4% on a constant currency basis), due to negative industry volumes primarily in the heavy product class in all regions.

CNH Industrial is confirming its 2016 guidance as follows:

  • Net sales of Industrial Activities between $23 bln and $24 bln, with an operating margin of Industrial Activities between 5.2% and 5.8%
  • Net industrial debt at the end of 2016 between $1.5 bln and $1.8 bln excluding the European Commission settlement (~$500 mln).

8:36 am Gapping down (SCANX) :

Gapping down
In reaction to disappointing earnings/guidance
: NDLS -15.5%, (Noodles & Co announces management and Board changes, sees Q2 revs below consensus), SANM -9.9%, FCX -6.7%, EFII -4.4%, ORAN -4.2%, GILD -4.1%, MPWR -3.6%, CE -3.6%, GIG -3.3%, CDNS -3%, MCD -3%, BP -2.2%, BLX -1.7%, SPN -1.6%, CMP -1.5%, MMM -1.5%, VNOM -1.3%, (Viper Energy Partners announces a 7 mln common unit underwritten public offering), VZ -0.9%, CAT -0.9%, CVLT -0.8%, KEY -0.7%, JBLU -0.5%, MDXG -0.5%

M&A news: KLDX -3.4% ( to acquire the Hollister mine and the Esmeralda mine and ore milling complex located in Northern Nevada; discloses CAD $100 mln bought deal financing)

Select oil/gas related names showing early weakness: CHK -2.5%, MRO -1.9%, WLL -1.9%, RDS.A -0.6%

Other news:

  • TKAI -67.9% (announces clinical update; co to discontinue Phase 3 ARMOR3-SV trial of Galeterone in AR-V7 Positive mCRPC)
  • CRME -34.9% (announces proposed underwritten public offering of common stock)
  • MSTX -21.3% (Mast Therapeutics provides guidance on the anticipated timing for announcement of top-line data from the EPIC study, provided guidance on the anticipated timing for announcement of top-line data from the EPIC study)
  • SDLP -11.9% (reduces quarterly distribution to $0.10 per unit (from $0.25 per unit prior))
  • TCAP -4.7% (commences 6.25 mln common stock offering)
  • PRKR -3.3% ( files for ~1.44 mln share common stock offering by selling shareholders)
  • CELG -3.2% (announces the Lymphoma Academic Research Organisation reported initial data from a phase III REMARC clinical study; REMARC achieved the primary endpoint of a statistically significant improvement inPFS for patients receiving REVLIMID)

Analyst comments:

  • SC -2.2% (downgraded to Equal Weight from Overweight at Barclays)
  • WFM -2.2% (downgraded to Sell from Neutral at Goldman )
  • CMG -1.9% (downgraded to Sell at Stifel)
  • PNRA -1.4% (downgraded to Sell at Stifel)

8:35 am TrovaGene announces the publication of study results from its urine- and blood based liquid biopsy tests to assess EGFR T790M mutational status in Journal of Thoracic Oncology (TROV) :

The data show that the Trovera test, using proprietary mutation allele enrichment technology, successfully identifies EGFR mutations in both urine and blood of patients with metastatic non-small cell lung cancer (:NSCLC) and has high concordance with tumor tissue.

Highlights: 

  • Using the tissue result as reference, the sensitivity of EGFR mutation detection in urine with specimens that met a recommended volume of 90-100 mL was 93% (13/14) for T790M, 71% (5/7) for L858R, and 83% (10/12) for exon 19 deletions. A comparable sensitivity of EGFR mutation detection was observed in plasma: 93% (38/41) for T790M, 100% (17/17) for L858R, and 87% (34/39) for exon 19 deletions.
  • The specificity of urine EGFR assays in healthy volunteers, or patients without NSCLC, was 96% for T790M, 94% for exon 19 deletions and 100% for L858R mutations
  • The combination of urine and plasma testing identified 12 T790M-positive cases that were undetectable by testing of tumor tissue

8:35 am AK Steel beats by $0.08, misses on revs (AKS) :

  • Reports Q2 (Jun) earnings of $0.08 per share, $0.08 better than the Capital IQ Consensus of ($0.00); revenues fell 11.7% year/year to $1.49 bln vs the $1.54 bln Capital IQ Consensus.
  • Adjusted EBITDA of $99.3 mln, or 6.7% of sales, more than doubled from adjusted EBITDA of $47.6 mln, or 2.8% of sales last year.
  • "Our strategic decision to reduce exposure to commodity spot markets, optimize our footprint and focus on higher value products continued to show positive results as we achieved another quarter of significant improvement"
  • Sales declined primarily as a result of lower automotive contract pricing compared to a year ago as well as a decrease in shipments. In Q2, shipments of 1,555,500 tons represented a decline of 14% YoY as the company's decision to reduce exposure to the commodity carbon steel spot market resulted in a 320,000 ton decline in shipments to the distributors and converters markets, or a 48% YoY reduction. Shipments of higher value coated products, which are sold mostly to the automotive market, increased to 53% of total shipments in Q2, up from 45% a year ago.

8:33 am BioTelemetry receives FDA 510(k) clearance of its Mobile Cardiac Outpatient Telemetry device, the MCOT Patch (BEAT) :  

8:32 am Unicredit S.p.A approves new organisational structure (UNCFF) :

The new structure will involve the reduction of the number of CEO direct reports, with the CEO focusing on the group's strategy, risks and costs structure. As such, he will retain direct oversight of strategy, risk management, compliance, human resources, as well as operating activities.

8:31 am Marrone Bio Innovations announces that Mexico regulatory authorities have approved for sale both of its bioinsecticides, GRANDEVO and VENERATE (MBII) :  

8:31 am Progenics Pharm receives a $50 mln milestone payment from Valeant Pharma (VRX) resulting from the FDA's marketing approval last week of RELISTOR Tablets for the treatment of opioid-induced constipation in adults with chronic non-cancer pain (PGNX) :  

8:31 am TEGNA to acquire DealerRater, terms were not disclosed (TGNA) :

DealerRater is an automotive consumer review website.

  • The transaction is expected to close by the end of August.
  • Terms of the transaction were not disclosed.

8:30 am S&P futures vs fair value: -0.20. Nasdaq futures vs fair value: +2.90. (:WRAPX) :

Equity futures have inched higher in recent action as the S&P 500 futures trade within one point of fair value.

In company specific news, Eli Lilly (LLY 82.87, +0.89) has gained 1.1% after beating analysts' estimates for the quarter and reaffirming its full-year guidance. The company reported that its top-line grew 8.6% year-over-year to $5.4 billion. McDonald's (MCD 123.00, -4.40) trades lower by 3.5% after global comparable sales missed estimates. However, the company did beat bottom-line estimates for the quarter. Finally, Verizon (VZ 55.30, -0.57) has ticked lower by 1.0% after reporting a mixed quarter. The Dow component beat bottom-line estimates, but reported that revenue fell 5.3% year-over-year.

The U.S. Dollar Index (97.08, -0.20) trades modestly lower as the greenback loses ground to the yen. The dollar/yen pair trades lower by 1.4% (104.32) as investors respond to a reduced likelihood of stimulus measures from Japan. Separately, the dollar has gained 0.1% against the commodity-sensitive Canadian dollar (1.3235) amid a sustained downturn in crude oil. WTI crude trades lower by 1.4% ($42.54/bbl, -$0.59).

8:30 am Triangle Capital prices a 6.25 mln share underwritten public offering of common stock at $19.90/share for net proceeds of ~$119.6 mln (TCAP) :  

8:29 am Volkswagen AG reports H1 commercial vehicle worldwide deliveries increase by 7% YoY (VLKAY) :

  • Volkswagen Commercial Vehicles records a significant growth of 7.0 per cent in the first six months of the year with worldwide deliveries of urban delivery vans, transporters and pick-ups totalling 238,800.
  • Particularly successful during this period was the T model range with 100,300 vehicles delivered (+12.9 per cent). In the month of June alone, the brand lay well ahead of last year's figures with 43,700 vehicles delivered (+13.3 per cent).

8:28 am Gapping up (SCANX) :

Gapping up
In reaction to strong earnings/guidance
: ALIM +29.2%, CRY +10.2%, EXAS +9.1%, EVER +6.8%, TXN +6.6%, CETV +5.4%, CR +5.3%, LVS +3.6%, MBLY +3.4%, AUDC +3.2%, CNC +3.2%, ATI +2.6%, CNXC +2.5%, ( elects not to pay a distribution to holders of subordinated units for Q2), CLGX +2.5%, KKR +2.4%, MAS +2.2%, ARLP +2%, AKS +1.8%, AOS +1.5%, LLY +1.5%, SIRI +1.2%, FIS +1%, IPAR +0.9%, (Inter Parfums reports prelim Q2 sales above consensus; on track to achieve 2016 net sales guidance), DD +0.9%, UTX +0.8%, ESRX +0.5%

M&A news:

  • SWHC +2.1% (Smith & Wesson to acquire Crimson Trace for $95.0 mln, subject to certain adjustments, utilizing cash on hand; expects the acquisition to be accretive to its EPS in fiscal 2017)
  • BUD +1.3% (Anheuser-Busch InBev (BUD) revises offer to GBP 45/share in cash (from GBP 44/share prior))
  • P +1.0% (following late surge higher -- reports that the company hired advisor for strategic options)

Select metals/mining stocks trading higher: GFI +4.2%, DRD +3%, RIO +2.2%, HMY +1.7%, KGC +1.7%, BBL +1.7%, AG +1.6%, GOLD +1.5%, BHP +1.4%

Other news:

  • VKTX +11.7% (announces 'positive' top-line results from a proof-of-concept study of VK0214 in a mouse model of X-linked adrenoleukodystrophy)
  • SGY +8.6% (announces estimated production for the quarter ended June 30, 2016 of ~29 MBoe (174 MMcfe) per day, slightly above the upper end of guidance for the quarter)
  • BEAT +6.7% (to join S&P SmallCap 600)
  • ANCB +6% (Anchor Bancorp engages investment banking firm to assist it in identifying and evaluating various strategic options and operating scenarios)
  • MPEL +5% (following LVS earnings)
  • BT +4.6% (makes governance changes to further increase independence for Openreach), GALE +3.9% (files for 3,658,012 share common stock offering by selling shareholders)
  • RAVN +3.9% (to join S&P SmallCap 600)
  • NFLX +3.7% (following Director J. Hoag's disclosure of purchase of 600K shares worth ~$51.9 mln (was disclosed last night, purchases made 7/21-7/25))
  • WYNN +3.1% (following LVS earnings)
  • NXPI +1.9% (following TXN earnings)
  • MGM +1.4% (following LVS earnings)
  • MBFI +1.2% (to join S&P MidCap 400)
  • MXIM +1% (following TXN earnings)
  • ADI +0.9% (following TXN earnings)

Analyst comments:

  • SFM +3.3% (upgraded to Buy from Sell at Goldman)
  • FMSA +2% (upgraded to Outperform at Cowen)
  • JWN +1.8% (upgraded to Overweight from Neutral at Piper Jaffray)
  • LYG +1.7% (upgraded to Hold from Sell at Berenberg)
  • XXIA +1.6% (upgraded to Buy from Hold at Stifel)
  • KR +1.4% (upgraded to Buy from Neutral at Goldman; added to Conviction Buy List)
  • ALKS +1.1% (upgraded to Outperform from Market Perform at Cowen)
  • SBUX +1% (added to Conviction Buy List at Goldman)

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

  • NeuroDerm (NDRM) announced that dosing has started in its EU bioequivalence trial (Trial 101) comparing ND0701 with commercial continuous, subcutaneously delivered apomorphine-HCl. Trial 101 is a crossover, randomized, two-sequence, 12 hour bioequivalence study that compares the pharmacokinetics, safety and tolerability of ND0701 with those of a reference commercial apomorphine product. The study is expected to enroll a total of 18 healthy volunteers and is expected to be completed in the fourth quarter of this year.
  • CB&I (CBI) announces it has been awarded a contract valued in excess of $50 mln to provide operations, maintenance and management services for methane gas production and purification facilities at two landfills in the Northeast.
  • MagneGas (MNGA) has become an authorized distributor for Global Calibration Gasses. 

8:22 am On The Wires (:WIRES) :

  • Inovalon (INOV) entered into a multi-year agreement with athenahealth. Together, the organizations will work to establish interoperability between Inovalon's advanced healthcare data aggregation and analytics platform and athenaNet. 
  • Flex Pharma (FLKS) completed enrollment of its human proof-of-concept efficacy study in nocturnal leg cramps with its chemically synthesized, single molecule, transient receptor potential ion channel activator, formulated as an orally disintegrating tablet. Topline results are expected by year end.
  • Advaxis (ADXS) announced its combination study of axalimogene filolisbac with AstraZeneca's (AZN) anti-PD-L1 durvalumab has completed the second dose-escalation cohort and has commenced enrollment for the Part A expansion and Part B phases of the study. Data from the first dose-escalation cohort will be submitted as an abstract for an upcoming major medical meeting this fall.

8:20 am Peoples Bancorp, Inc. reports Q2 EPS of $0.44 vs $0.41 Capital IQ Consensus Estimate (PEBO) :

  • Net interest margin improved to 3.57% in the second quarter of 2016, compared to 3.53% for the linked quarter and 3.46% in the second quarter of 2015.

8:19 am On The Wires (:WIRES) :

  • Pioneer Power Solutions (PPSI) announced that over the last 60 days, the Co has booked more than $3.6 million in distributed generation business, reflecting several orders from new customers.
  • Gulf Resources (GURE) announced the following updates on its Sichuan natural gas project: signed the agreement to purchase the equipment needed for drilling and converting the natural gas, and constructed the roads and related infrastructure needed to begin operations in the remote and mountainous region of Daying county.
  • X-Chem announces a multi-target drug discovery agreement with AbbVie (ABBV). The collaboration is focused on the discovery and development of novel treatments for diseases in oncology and immunology.  Under the terms of the agreement X-Chem will deploy its DNA-encoded library discovery platform for the identification of novel small-molecule inhibitors of both promising new targets as well as validated targets that have been historically challenging to address. AbbVie has an exclusive option to license active hits and leads generated in the course of the collaboration and is responsible for all further development and commercialization.

8:18 am Tandem Diabetes Care announces FDA clearnace of an expanded pediatric indication for the t:slim Insulin Pump, lowering its use to children age 6 and older from children age 12 and older (TNDM) :  

8:17 am Klondex Mines upsizes CAD 100 mln 'bought deal' private placement; Underwriters have agreed to purchase, on a bought deal private placement basis, 22.9 mln subscription receipts, at a price of CAD 5.00/Subscription Receipt, for aggregate gross proceeds of CAD 114.5 mln (KLDX) :  

8:12 am Freeport-McMoRan misses by $0.01, misses on revs; Announces $1.5 bln common stock offering, Lowers Operating Cash Flow guidance, Lowers CapEx Guidance (FCX) :

  • Reports Q2 (Jun) loss of $0.02 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of ($0.01); revenues fell 15.3% year/year to $3.33 bln vs the $3.68 bln Capital IQ Consensus.
    • Average realized prices were $2.18 per pound of copper, $1,292 per ounce for gold and $41.10 per barrel for oil for second-quarter 2016. Average unit net cash costs were $1.33 per pound of copper for mining operations and $15.00 per barrel of oil equivalents (BOE) for oil and gas operations for second-quarter 2016.
    • Unit net cash costs for the year 2016 are expected to average $1.06 per pound of copper for mining operations (including Tenke) and $15.50 per BOE for oil and gas operations.
  • Average realized prices were $2.18 per pound of copper, $1,292 per ounce for gold and $41.10 per barrel for oil for second-quarter 2016. Average unit net cash costs were $1.33 per pound of copper for mining operations and $15.00 per barrel of oil equivalents (BOE) for oil and gas operations for second-quarter 2016.
  • Unit net cash costs for the year 2016 are expected to average $1.06 per pound of copper for mining operations (including Tenke) and $15.50 per BOE for oil and gas operations.
  • Operating cash flows totaled $874 million for second-quarter 2016. Operating cash flows for the year 2016 are expected to approximate $4.5 billion compared to prior guidance of $4.8 bln (including $0.7 billion in working capital sources and changes in other tax payments).
  • Capital expenditures totaled $833 million for second-quarter 2016, consisting of $441 million for mining operations and $392 million for oil and gas operations. Capital expenditures are expected to approximate $3.1 billion for the year 2016 (Prior guidance $3.3 bln), consisting of $1.7 billion for mining operations (including $1.3 billion for major projects) and $1.4 billion for oil and gas operations.
  • During second-quarter 2016, FCX completed previously announced asset sales for aggregate cash consideration of $1.3 billion, including the $1.0 billion sale of an additional 13 percent undivided interest in Morenci. In May 2016, FCX entered into a definitive agreement to sell its interest in TF Holdings Limited for $2.65 billion in cash and contingent consideration of up to $120 million. In accordance with accounting guidelines, the results of Tenke are reported as discontinued operations for all periods presented.
  • At June 30, 2016, consolidated debt totaled $19.3 billion (Compared to $20.3 bln at the end of Q1) and consolidated cash totaled $352 million (Compared to $331 mln at the end of Q1). At June 30, 2016, FCX had no borrowings (Prior had $500 mln in net borrowings) and $3.5 billion available under its $3.5 billion revolving credit facility.
  • To date, FCX has announced over $4 billion in transactions and has received aggregate cash consideration of $1.4 billion, including $87 million in July 2016.
    • The $2.65 billion Tenke Fungurume (Tenke) transaction is expected to close in fourth-quarter 2016. In addition, FCX continues to aggressively manage production, exploration and administrative costs and capital spending.
  • The $2.65 billion Tenke Fungurume (Tenke) transaction is expected to close in fourth-quarter 2016. In addition, FCX continues to aggressively manage production, exploration and administrative costs and capital spending.
  • With the successful completion of the Cerro Verde expansion and access to higher grade ore from the Grasberg mine in future quarters, FCX expects to generate substantial cash flows over the next 18 months for debt reduction.
  • As part of its plan to reduce outstanding indebtedness, FCX intends to commence a registered at-the-market offering of up to $1.5 billion of common stock and use the proceeds to retire outstanding indebtedness.
  • While additional asset sales may be considered, FCX remains focused on retaining a high-quality portfolio of long-lived copper assets positioned to generate value as market conditions improve.


8:11 am Tower Intl beats by $0.12, reports revs in-line; guides FY16 EPS in-line, gives favorable outlook (TOWR) :

  • Reports Q2 (Jun) earnings of $0.81 per share, excluding non-recurring items, $0.12 better than the Capital IQ Consensus of $0.69; revenues rose 12.4% year/year to $505.1 mln vs the $504.83 mln Capital IQ Consensus.
  • Co reaffirms guidance for FY16, sees EPS of $3.00-3.20 vs. $3.19 Capital IQ Consensus Estimate.
  • The co is re-affirming its outlook for full year earnings and free cash flow both.
    • When co reported last in April, it Anticipated free cash flow (including customer tooling) is being increased by $10 mln (to $20 mln).
  • When co reported last in April, it Anticipated free cash flow (including customer tooling) is being increased by $10 mln (to $20 mln).
  •  The outlook for full year revenue is down slightly for vehicle and Company-specific reasons; to date, there has been no evidence experienced by the co of a meaningful industry production downturn in North America or adverse fall-out in Europe from Brexit.

Tower believes it is entering a period of very favorable earnings comparisons and strong free cash flow.

  • For example:
    • Second half 2016 adjusted EBITDA is projected to be up more than 20% from second half 2015
    • Free cash flow in the second half of 2016 through 2017 is projected at $130 million
    • And Depending on the pace of the Company's previously announced stock buyback program, diluted adjusted EPS could exceed $4.00 in 2017 (Consensus is currently calling for EPS of $3.58 in 2017)
  • Second half 2016 adjusted EBITDA is projected to be up more than 20% from second half 2015
  • Free cash flow in the second half of 2016 through 2017 is projected at $130 million
  • And Depending on the pace of the Company's previously announced stock buyback program, diluted adjusted EPS could exceed $4.00 in 2017 (Consensus is currently calling for EPS of $3.58 in 2017)

8:11 am European Yields (BONDX) :

Core Yields Slip

  • Overnight demand for German and French debt has pressured yields in the two economies while Spanish and Italian bonds have staged a moderate retreat. It is worth pointing out that the mixed sentiment comes after a three-week risk rally that lifted regional equity markets off their July lows. Also of note, Bank of England member Martin Weale said he now supports an August rate cut in response to weak Services PMI data.
  • Economic data:
    • UK's BBA Mortgage Approvals 40,100 (expected 40,200; last 41,800)
    • Spain's PPI -4.7% year-over-year (last -5.6%)
  • UK's BBA Mortgage Approvals 40,100 (expected 40,200; last 41,800)
  • Spain's PPI -4.7% year-over-year (last -5.6%)
  • Yield Check:
    • France, 10-yr OAT: -2 bps to 0.18%
    • Germany, 10-yr Bund: -2 bps to -0.06%
    • Greece, 10-yr note: +1 bp to 8.01%
    • Italy, 10-yr BTP: +1 bp to 1.24%
    • Portugal, 10-yr PGB: +2 bps to 3.03%
    • Spain, 10-yr ODE: +1 bp to 1.12%
    • UK, 10-yr Gilt: -3 bps to 0.78%
  • France, 10-yr OAT: -2 bps to 0.18%
  • Germany, 10-yr Bund: -2 bps to -0.06%
  • Greece, 10-yr note: +1 bp to 8.01%
  • Italy, 10-yr BTP: +1 bp to 1.24%
  • Portugal, 10-yr PGB: +2 bps to 3.03%
  • Spain, 10-yr ODE: +1 bp to 1.12%
  • UK, 10-yr Gilt: -3 bps to 0.78%

8:09 am Banco Latinoamer misses Q2 EPS estiamtes (BLX) :

  • Q2 GAAP EPS $0.57 vs $0.69 Capital IQ Consensus Estimate
  • Bladex's 2Q16 Net Profit totaled $22.3 million (+65% YoY, -5% QoQ) on robust net interest income (+10% YoY, -3% QoQ), increased fees and other income (+43% YoY, +87% QoQ), and improved efficiency through lower operating expenses (-21% YoY, -19% QoQ), offsetting higher provisions for impairment from allowance for credit losses. In the 2Q16, the Bank's results also benefited from the divestment of its remaining participation in the investment funds effective April 1st, 2016, with a residual gain of $0.2 million recorded for the quarter, compared to losses from its participation in the investment funds recorded during the comparison quarters.

8:09 am Organovo to move its stock exchange listing to the NASDAQ Stock Market from the NYSE MKT effective August 8 (ONVO) :  

8:08 am S&P futures vs fair value: -1.70. Nasdaq futures vs fair value: +0.90. (:WRAPX) :

U.S. equity futures hover near their flat lines as the S&P 500 futures trade two points below fair value. Index futures tread water as investors examine a plethora of earnings results and developments in Japan. Six Dow components are scheduled to release quarterly reports this morning as positive bottom-line results from the likes of 3M Company (MMM 177.73, -1.89), Caterpillar (CAT 77.75, -0.94), DuPont (DD 69.75, +0.87), and United Technologies (UTX 105.47, +0.82) prompt mixed reactions.

In Japan, the Nikkei (-1.4%) underperformed as investors weighed potential stimulus measures ahead of the Bank of Japan's policy meeting later in the week. Additionally, reports indicated that the Japanese government would launch a JPY6 billion stimulus plan, but that it could be spread out through an unspecified number of years.

Treasuries trade on a higher note as yields fall throughout the complex. The yield on the 10-yr note has slipped two basis points to 1.56%.

On the economic front, data will include the 9:00 ET release of the Case-Shiller 20-city Index for May (Briefing.com consensus 5.4%). Separately, Consumer Confidence for July (Briefing.com consensus 96.0) and New Home Sales for June (Briefing.com consensus 560k) will both cross the wires at 10:00 ET.

In U.S. corporate news of note:

  • Texas Instruments (TXN 70.85, +4.63): +7.0% after the company beat analysts' estimates for the quarter and issued in-line guidance for Q3
  • Under Armour (UA 43.90, +0.31): +0.7% following the company missing bottom-line estimates on in-line revenue
  • Gilead Sciences (GILD 84.60, -3.95): -4.5% after reporting a bottom-line beat, but lowering FY16 sales guidance
  • 3M Company (MMM 177.73, -1.89): -1.1% following the company lowering its revenue outlook and reporting a mixed quarter

Reviewing overnight developments: 

  • Asia-Pacific markets ended on a mixed note as Japan's Nikkei (-1.4%) underperformed Hong Kong's Hang Seng (+0.6%) and China's Shanghai Composite (+1.1%). 
    • In economic data:
      • Japan's Corporate Services Price Index 0.2% year-over-year (consensus 0.1%; last 0.2%)
      • Hong Kong's trade deficit HKD45.60 billion (last deficit of HKD26.20 billion)
      • South Korea's Q2 GDP +0.7% quarter-over-quarter, as expected (last 0.5%); +3.2% year-over-year (consensus 2.9%; last 2.8%)
      • New Zealand's June trade deficit narrowed to NZD3.31 billion from NZD3.63 billion (expected deficit of NZD3.30 billion)
      • Singapore's June Industrial Production -2.5% month-over-month, as expected (last -0.4%); -0.3% year-over-year (consensus -0.2%; last 0.8%)
    • In news: 
      • The retreat in Japanese equities was accompanied by yen strength. 
      • Yen strength began building after Japan's Finance Minister Taro Aso said the Bank of Japan will be allowed to make its own decision on stimulus.
      • The currency pair has inched up to 104.30, which leaves the yen up 1.4% against the dollar.
  • In economic data:
    • Japan's Corporate Services Price Index 0.2% year-over-year (consensus 0.1%; last 0.2%)
    • Hong Kong's trade deficit HKD45.60 billion (last deficit of HKD26.20 billion)
    • South Korea's Q2 GDP +0.7% quarter-over-quarter, as expected (last 0.5%); +3.2% year-over-year (consensus 2.9%; last 2.8%)
    • New Zealand's June trade deficit narrowed to NZD3.31 billion from NZD3.63 billion (expected deficit of NZD3.30 billion)
    • Singapore's June Industrial Production -2.5% month-over-month, as expected (last -0.4%); -0.3% year-over-year (consensus -0.2%; last 0.8%)
  • Japan's Corporate Services Price Index 0.2% year-over-year (consensus 0.1%; last 0.2%)
  • Hong Kong's trade deficit HKD45.60 billion (last deficit of HKD26.20 billion)
  • South Korea's Q2 GDP +0.7% quarter-over-quarter, as expected (last 0.5%); +3.2% year-over-year (consensus 2.9%; last 2.8%)
  • New Zealand's June trade deficit narrowed to NZD3.31 billion from NZD3.63 billion (expected deficit of NZD3.30 billion)
  • Singapore's June Industrial Production -2.5% month-over-month, as expected (last -0.4%); -0.3% year-over-year (consensus -0.2%; last 0.8%)
  • In news: 
    • The retreat in Japanese equities was accompanied by yen strength. 
    • Yen strength began building after Japan's Finance Minister Taro Aso said the Bank of Japan will be allowed to make its own decision on stimulus.
    • The currency pair has inched up to 104.30, which leaves the yen up 1.4% against the dollar.
  • The retreat in Japanese equities was accompanied by yen strength. 
  • Yen strength began building after Japan's Finance Minister Taro Aso said the Bank of Japan will be allowed to make its own decision on stimulus.
  • The currency pair has inched up to 104.30, which leaves the yen up 1.4% against the dollar.
  • European indices trade mixed as Germany's DAX (+0.3%) leads the U.K.'s FTSE (+0.2%) and France's CAC (-0.1%). Elsewhere,  Italy's MIB (-0.7%) underperforms. 
    • Economic data was limited:
      • UK's BBA Mortgage Approvals 40,100 (expected 40,200; last 41,800)
      • Spain's PPI -4.7% year-over-year (last -5.6%)
    • In news: 
      • Investor sentiment was dampened after comments from Japanese officials downplayed the immediate need for stimulus.
  • Economic data was limited:
    • UK's BBA Mortgage Approvals 40,100 (expected 40,200; last 41,800)
    • Spain's PPI -4.7% year-over-year (last -5.6%)
  • UK's BBA Mortgage Approvals 40,100 (expected 40,200; last 41,800)
  • Spain's PPI -4.7% year-over-year (last -5.6%)
  • In news: 
    • Investor sentiment was dampened after comments from Japanese officials downplayed the immediate need for stimulus.
  • Investor sentiment was dampened after comments from Japanese officials downplayed the immediate need for stimulus.

8:06 am Franklin Electric beats by $0.02, misses on revs; reaffirms FY16 guidance (FELE) :

  • Reports Q2 (Jun) earnings of $0.51 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.49; revenues rose 1.9% year/year to $252.08 mln vs the $255.59 mln Capital IQ Consensus.
  • Co reaffirms guidance for FY16, sees adj EPS of $1.60-1.70 vs. $1.64 Capital IQ Consensus Estimate.
    • Water Systems sales were $194.6 million in the second quarter 2016, an increase of $3.0 million or about 2 percent versus the second quarter 2015 sales of $191.6 million. Foreign currency translation reduced Water Systems sales by $7.2 million or about 4 percent in the quarter. Excluding foreign currency translation, Water Systems sales grew about 6 percent compared to the second quarter 2015.
    • Fueling Systems sales were $57.5 million in the second quarter 2016, an increase of $1.7 million or about 3 percent versus the second quarter 2015 sales of $55.8 million. Fueling Systems sales decreased by $0.3 million or about 1 percent in the quarter due to foreign currency translation. Fueling Systems sales were up about 4 percent, after excluding foreign currency translation.
  • Water Systems sales were $194.6 million in the second quarter 2016, an increase of $3.0 million or about 2 percent versus the second quarter 2015 sales of $191.6 million. Foreign currency translation reduced Water Systems sales by $7.2 million or about 4 percent in the quarter. Excluding foreign currency translation, Water Systems sales grew about 6 percent compared to the second quarter 2015.
  • Fueling Systems sales were $57.5 million in the second quarter 2016, an increase of $1.7 million or about 3 percent versus the second quarter 2015 sales of $55.8 million. Fueling Systems sales decreased by $0.3 million or about 1 percent in the quarter due to foreign currency translation. Fueling Systems sales were up about 4 percent, after excluding foreign currency translation.

8:06 am Accuride beats by $0.04, misses on revs; guides FY16 revs below consensus (ACW) :

  • Reports Q2 (Jun) earnings of $0.05 per share, $0.04 better than the Capital IQ Consensus of $0.01; revenues fell 11.5% year/year to $164.12 mln vs the $171.33 mln Capital IQ Consensus.
  • Co issues downside guidance for FY16, sees FY16 revs of $625-650 mln vs. $663.4 mln Capital IQ Consensus Estimate. Co narrows its FY16 adjusted EBITDA guidance to $65-75 mln from prior guidance of $65-80 mln.
  • "During the second quarter, our top line was impacted by significantly lower demand at Brillion, lower Class 8 production and lower pricing related to raw material pass through mechanisms. Our strong operating performance and cost reduction initiatives enabled us to offset the revenue declines and expand EBITDA margins at Wheels and Gunite from 2015 levels."
  • "Looking at the second half of 2016, we expect to face headwinds from continued weak demand in Brillion's end markets and lower North American Class 8 truck demand, which should be somewhat offset by healthy Class 5-7 and Trailer market segments. In addition, we expect to partially offset the impact of rising steel prices on margins by continuing to deliver strong operational performance across our business units."

8:04 am PACCAR beats by $0.04, reports revs in-line (PCAR) :

  • Reports Q2 (Jun) earnings of $1.06 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $1.02; revenues fell 14.0% year/year to $4.12 bln vs the $4.12 bln Capital IQ Consensus.
  • On July 19, 2016 the EC concluded its investigation by reaching a settlement with DAF. Including the favorable adjustment to the EC charge, which is not taxable, PACCAR reported net income of $481.3 million ($1.37 per diluted share) in the second quarter of 2016. The company earned net income of $447.2 million ($1.26 per diluted share) in the second quarter last year.

Global Truck Markets:

  • Industry sales in the above 16-tonne truck market in Europe are estimated to be in the range of 280,000-300,000 vehicles this year, which is the strongest market since 2008.
  • "The European above 16-tonne truck market continues to strengthen due to positive economic growth and increased freight activity," said Preston Feight, DAF president and PACCAR vice president. "DAF achieved market share of 16.0 percent in the first half of 2016. DAF's above 16-tonne truck registrations increased 28% year-to-date compared to the same period last year." Feight added, "We are very proud that the DAF XF has been honored by Motor Transport magazine as the 2016 U.K. Fleet Truck of the Year."
  • Class 8 truck industry retail sales for the U.S. and Canada in 2016 are expected to be in a range of 220,000-240,000 vehicles. Peterbilt and Kenworth are benefiting from the third best U.S. and Canada Class 8 truck market in the last ten years, and have achieved 27% market share year-to-date this year.
  • "The truck market reflects the good economy and high freight tonnage levels," said Gary Moore, PACCAR executive vice president. "Our customers are benefiting from the excellent operating efficiency of Peterbilt and Kenworth trucks."

8:04 am Cynosure beats by $0.07, beats on revs (CYNO) :

  • Reports Q2 (Jun) earnings of $0.36 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $0.29; revenues rose 31.8% year/year to $110.3 mln vs the $101.31 mln Capital IQ Consensus. 
  • Gross margin for the second quarter of 2016 was $65.1 million, or 59.0 percent of revenue, compared with $47.4 million, or 56.6 percent of revenue, for the same period in 2015.
  • Outlook: "Looking ahead, we expect to successfully execute our growth strategy through targeted marketing, clinical and regulatory initiatives...We begin the second half of 2016 with strong momentum, and we are well positioned to continue to deliver value for all of our stakeholders."

8:04 am McDonald's beats by $0.06, reports revs in-line (MCD) :

  • Reports Q2 (Jun) earnings of $1.45 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $1.39; revenues fell 3.6% year/year to $6.26 bln vs the $6.27 bln Capital IQ Consensus. 
  • Global comparable sales increased 3.1% vs. ests near +3.4%, reflecting positive comparable sales in all segments. In the U.S., second quarter comparable sales increased 1.8%, with continued contributions from All Day Breakfast and McPick 2 despite softening industry growth during the quarter. Operating income for the quarter rose 10%, reflecting higher sales-driven franchised margins and higher gains from restaurant refranchising. McDonald's U.S. begins the second half of the year focused on adding more breakfast sandwich favorites - Biscuits, McMuffins and McGriddles - to the All Day Breakfast menu this fall.
  • Comparable sales for the International Lead segment increased 2.6% for the quarter, led by positive performance in the U.K., Canada and Australia, and slightly positive results in Germany. Operating income for the quarter increased 4% (7% in constant currencies), driven by improved franchised margins.
  • In the High Growth segment, second quarter comparable sales increased 1.6%, led by positive comparable sales performance in China and Russia, along with solid performance across various other markets. The segment's operating income rose 25% (32% in constant currencies) fueled by improved results in China.
  • Comparable sales rose 7.7% in the Foundational markets, reflecting very strong performance in Japan and many other markets. For the segment, operating income for the quarter declined due to the impact of strategic charges associated with the Company's ongoing refranchising and G&A initiatives.

8:03 am A10 Networks acquires Appcito; terms not disclosed (ATEN) : Appcito is a provider of a versatile SaaS-based, multi-cloud ADC solution utilizing microservice and container architectures.

8:03 am USG misses by $0.01, reports revs in-line (USG) :

  • Reports Q2 (Jun) earnings of $0.46 per share, $0.01 worse than the Capital IQ Consensus of $0.47; revenues rose 3.3% year/year to $1 bln vs the $1.01 bln Capital IQ Consensus.
  • Ceilings segment: Improved price and volume with strong cost control drove second quarter margins to a new quarterly record of 23.8% in the US Ceilings business.  
  • Distribution segment: Operating margins improved 140 basis points to 3.9% in the second quarter of 2016, with same store sales and wallboard volumes both increasing 8%.

8:03 am Adaptimmune Therapeutics announces that the EC has designated its NY-ESO SPEAR T-cell therapy as an orphan medicinal product for the treatment of soft tissue sarcoma (ADAP) :  

8:03 am Fate Therapeutics announces issuance of U.S. Patent covering preparations of human induced pluripotent cells (FATE) :

  • Patent covers renewable pluripotent cell source for Development of off-the-shelf NK- and T-Cell immunotherapies
  • The compositions protected by the patent cover induced pluripotent cells that do not contain a polynucleotide encoding c-MYC. The MYC family of transcription factors are proto-oncogenes implicated in tumor growth. The expression of c-MYC was previously considered to be indispensable for the generation of human induced pluripotent cells.

8:01 am Tonix Pharma announces the first patient has been randomized in RE-AFFIRM, the second Phase 3 clinical study of TNX-102 SL, 2.8 mg, in fibromyalgia (TNXP) :

RE-AFFIRM is a randomized, double-blind, placebo-controlled study similar in design to the ongoing AFFIRM Phase 3 clinical trial of TNX-102 SL in fibromyalgia.

  • First pivotal Phase 3 study of TNX-102 SL to report topline this quarter

8:00 am Torchlight Energy Resources regains compliance w/ the Nasdaq (TRCH) : The Co has regained compliance with the $1.00 minimum closing bid price listing requirement. 

7:57 am On The Wires (:WIRES) :

  • Actions Semiconductor (ACTS) announces that its wholly-owned subsidiary Actions Technology (Zhuhai) has released two high performance chipsets based on 28 nm process technology, the S900VR and the V700, targeting the fast growing virtual reality market. 
  • Scientific Games Corporation (SGMS) announces that Chukchansi Gold Resort & Casino in Coursegold, Calif. awarded Scientific Games a contract to provide its Promotional Kiosk solution as well as its mobile business-to-business SG Universe solution to drive player engagement at the casino resort located between Fresno and the southern entrance to Yosemite National Park.  Financial terms of the contract were not disclosed.  
  • Jacobs Engineering Group (JEC) announces the expansion of its Field Services business, including additional presence on the Gulf Coast and a further commitment to workforce training and development.  Under the terms of the contract, Jacobs is providing preventive, predictive and repair maintenance, as well as planning and scheduling of all maintenance activities; packaging, shipping and warehouse operational support; and maintenance and engineering support.  

7:56 am Cynosure receives approval from the Korean Ministry of Food and Drug Safety to market SculpSure for non-invasive lipolysis of the abdomen and flanks (CYNO) : The product will be marketed through the Company's direct sales force in Korea beginning in the third quarter of 2016.

7:52 am Overnight Treasury Summary (BONDX) :

Cautious Sentiment Boosts Treasuries

  • U.S. Treasuries inched higher during overnight action, responding to a modest wave of risk-off posturing in the wake of comments from Japan Finance Minister Taro Aso, who said the Bank of Japan has yet to decide on the size and scope of potential easing. The news sent the dollar/yen pair to 104.00.
  • Overnight economic news featured a few data points from Asia, including, Japan's Corporate Services Price Index (+0.2% year-over-year; consensus 0.1%; last 0.2%), Hong Kong's trade deficit HKD45.60 billion (last deficit of HKD26.20 billion), and South Korea's Q2 GDP (+0.7% quarter-over-quarter, as expected; last 0.5%)
  • The S&P 500 futures trade within a couple points of fair value while the Dollar Index (-0.2%) shows a slim loss. Crude oil has retreated 1.1% to $42.63/bbl while gold futures are little changed at $1326.80/ozt.
  • Yield Check:
    • 2-yr: -2 bps to 0.75%
    • 5-yr: -2 bps to 1.13%
    • 10-yr: -3 bps to 1.55%
    • 30-yr: -3 bps to 2.26%
  • 2-yr: -2 bps to 0.75%
  • 5-yr: -2 bps to 1.13%
  • 10-yr: -3 bps to 1.55%
  • 30-yr: -3 bps to 2.26%
  • Economic Data on Tap:
    • May Case-Shiller 20-city Index (Briefing.com consensus 5.4%) at 9:00 ET
    • July Consumer Confidence (Briefing.com consensus 96.0) at 10:00 ET
    • New Home Sales (Briefing.com consensus 560K) at 10:00 ET
  • May Case-Shiller 20-city Index (Briefing.com consensus 5.4%) at 9:00 ET
  • July Consumer Confidence (Briefing.com consensus 96.0) at 10:00 ET
  • New Home Sales (Briefing.com consensus 560K) at 10:00 ET
  • The U.S. Treasury will auction $34 billion, 5-yr notes at 13:00 ET

7:50 am Asahi Group amended FY16 forecasts; sees net income of JPY 28.5 bln versus JPY 19.8 bln; sees net sales of JPY 863.7 mln versus prior guidance of JPY 860.0 bln (ASBRF) :

  • "With regard to the interim consolidated financial results of the Company, the operating income is expected to exceed the previous forecast, because Alcohol Beverages, Soft Drinks and Food segments enjoyed increases in sales and made progress in cost reduction, and Overseas segment including Oceania region outperformed its forecasts as well."
  • Potential Related Stocks: BUD, SBMRY

7:47 am Commvault Systems beats by $0.04, beats on revs, guides on the call at 8:30 am ET (CVLT) :

  • Reports Q1 (Jun) earnings of $0.21 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $0.17; revenues rose 9.6% year/year to $152.41 mln vs the $149.15 mln Capital IQ Consensus.
    • Software revenue was $63.9 mln, an increase of 13% year-over-year, and up 15% on a year-over-year constant currency basis.
    • Services revenue in the quarter was $88.5 mln, an increase of 7% year-over-year, and 8% on a year-over-year constant currency basis.
  • Software revenue was $63.9 mln, an increase of 13% year-over-year, and up 15% on a year-over-year constant currency basis.
  • Services revenue in the quarter was $88.5 mln, an increase of 7% year-over-year, and 8% on a year-over-year constant currency basis.
  • Operating cash flow totaled $24.0 million for the first quarter of fiscal 2017.
  • Total cash and short-term investments were $410.2 million as of June 30, 2016 compared to $387.2 million as of Mar 31, 2016.
  • The co will release guidance on the earnings call at 8:30 am ET today

7:44 am Liberty Prop beats by $0.04, misses on revs; guides FY16 FFO in-line (LPT) :

  • Reports Q2 (Jun) funds from operations of $0.68 per share, $0.04 better than the Capital IQ Consensus of $0.64; revenues fell 8.3% year/year to $186.7 mln vs the $189.45 mln Capital IQ Consensus.
  • Co issues lowered guidance for FY16, sees FFO of $2.30-2.40 from $2.35-2.55 vs. $2.48 Capital IQ Consensus Estimate.
  • Same Store Performance: Property level operating income for same store properties increased by 2.6% on a cash basis and by 2.2% on a straight line basis for the second quarter of 2016 compared to the same quarter in 2015. For the six months ended June 30, 2016, property level operating income for same store properties increased by 3.0% on a cash basis and by 2.2% on a straight line basis, compared to the same period in 2015.

7:43 am Sonic Automotive reports EPS in-line, misses on revs; guides Q3 EPS below consensus; guides Q4 (Dec) EPS in-line (SAH) :

  • Reports Q2 (Jun) earnings of $0.50 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.50; revenues fell 1.7% year/year to $2.38 bln vs the $2.46 bln Capital IQ Consensus. Q2 same store fixed operations revenues up 3.0% over prior year quarter; same store finance and insurance revenues and gross profit up 2.9% over prior year quarter
  • Co issues downside guidance for Q3, sees EPS of $0.52-0.54 vs. $0.59 Capital IQ Consensus Estimate.
  • Co issues in-line guidance for Q4 (Dec), sees EPS of $0.66-0.69 vs. $0.67 Capital IQ Consensus Estimate.

7:43 am Ally Financial beats by $0.03 (ALLY) :

  • Reports Q2 (Jun) earnings of $0.54 per share, $0.03 better than the Capital IQ Consensus of $0.51.
    • Core ROTCE 9.7% compared to 8.3% in prior year.
    • Efficiency Ratio 43.7% compared to 45.6% in prior year. 
    • NIM 2.68%, up 13 bps y/y
    • NCOs decline to 0.54% from 0.64% in Q1
    • Provision expense $172 mln compared to $220 mln in Q1
    • U.S. Retail Auto Delinquencies rises to 2.60% from 2.20% in Q1
  • Core ROTCE 9.7% compared to 8.3% in prior year.
  • Efficiency Ratio 43.7% compared to 45.6% in prior year. 
  • NIM 2.68%, up 13 bps y/y
  • NCOs decline to 0.54% from 0.64% in Q1
  • Provision expense $172 mln compared to $220 mln in Q1
  • U.S. Retail Auto Delinquencies rises to 2.60% from 2.20% in Q1
  • Capital Return Plan
    • $0.08 dividend in Q3
    • Share repurchase program of $700 mln (3Q16 thru 2Q17)
  • $0.08 dividend in Q3
  • Share repurchase program of $700 mln (3Q16 thru 2Q17)
  • Q2 Earnings Presentation

7:41 am JetBlue Airways beats by $0.04, reports revs in-line; co also will expand its Mint experience by bringing 30 additional A321 aircraft into its fleet; co also announces west coast expansion (JBLU) :

  • Reports Q2 (Jun) earnings of $0.53 per share, $0.04 better than the Capital IQ Consensus of $0.49; revenues rose 1.9% year/year to $1.64 bln vs the $1.64 bln Capital IQ Consensus.
  • Revenue passenger miles for Q2 increased 10.3% to 11.6 bln on a capacity increase of 11.1%, resulting in a load factor of 85.0%, a 0.6 point decrease YoY. Yield per passenger mile was 12.87 cents, down 9.9% YoY.
  • Passenger revenue per available seat mile (:PRASM) for Q2 decreased 10.5% YoY to 10.94 cents and operating revenue per available seat mile (:RASM) decreased 8.2% to 12.09 cents.
  • Operating expense per available seat mile (CASM) for Q2 decreased 9.9% YoY to 9.78 cents. Excluding fuel and profit sharing, CASM decreased 1.0% to 7.48 cents.
  • Mint expansion: JetBlue announces today it intends to further expand its highly successful Mint experience by amending its purchase agreement with Airbus to bring 30 additional A321 aircraft into its fleet over seven years. The additional aircraft will allow JetBlue to capture an opportunity to position itself as the carrier of choice in transcontinental markets with a targeted approach that leverages its east coast strength. Airbus is scheduled to deliver 15 incremental A321ceos starting in 2017.
  • West Coast Expansion: As west coast travelers face reduced options and less competition, JetBlue is quickly moving to organically strengthen its presence on a national scale with a leading transcontinental franchise between the west and east coasts. JetBlue's targeted approach will give the airline increased frequencies in high-value west coast markets, including the Bay Area and Los Angeles, while leveraging the strength of its east coast point of sale. In addition to JetBlue's intention to expand Mint to grow its west coast presence, JetBlue is strengthening its Long Beach (:LGB) focus city with new all-core service.
  • Outlook: For Q3, CASM excluding fuel and profit sharing is expected to grow between 1% and 3%. For 2016, JetBlue continues to expect CASM excluding fuel and profit sharing to grow between zero and 1.5%. In Q3, capacity is expected to increase between 5.5% and 7.5%. For the full year 2016, JetBlue continues to expect capacity to increase between 8.0% and 9.5%.

7:40 am Caterpillar beats by $0.13, beats on revs; co sees FY16 forecast closer to bottom end of prior guidance (CAT) :

  • Reports Q2 (Jun) earnings of $1.09 per share, excluding non-recurring items, $0.13 better than the Capital IQ Consensus of $0.96; revenues fell 16.0% year/year to $10.34 bln vs the $10.13 bln Capital IQ Consensus. 
    • The decrease was primarily due to lower sales volume resulting from continued weak commodity prices globally and economic weakness in developing countries. While sales for both new equipment and aftermarket parts declined in all segments, most of the decrease was for new equipment. Unfavorable price realization also contributed to the decline
    • Sales declined in all regions
    • Sales declined in all regions
    • Mining, oil and gas, and rail industries remain challenged
    • However, co does has strong balance sheet -- Maintained $0.77 per share dividend (announced June 8, 2016)
  • The decrease was primarily due to lower sales volume resulting from continued weak commodity prices globally and economic weakness in developing countries. While sales for both new equipment and aftermarket parts declined in all segments, most of the decrease was for new equipment. Unfavorable price realization also contributed to the decline
  • Sales declined in all regions
  • Sales declined in all regions
  • Mining, oil and gas, and rail industries remain challenged
  • However, co does has strong balance sheet -- Maintained $0.77 per share dividend (announced June 8, 2016)
  • Co sees FY16 forecast closer to bottom end of prior guidance; sees EPS at $3.70, excluding non-recurring items, vs. $3.53 Capital IQ Consensus Estimate; sees FY16 revs of $40-42 bln vs. $40.29 bln Capital IQ Consensus Estimate
  • More specifically, co said, "The outlook for 2016 that we provided with our first-quarter financial results in April expected sales and revenues in a range of $40 to $42 billion. At the midpoint of that range, profit was expected to be $3.00 per share, or $3.70 per share excluding restructuring costs. Over the past quarter, economic risks have persisted and, as a result, our current expectations for 2016 sales and revenues are closer to the bottom end of that outlook range."
  • Co also said, "World economic growth remains subdued and is not sufficient to drive improvement in most of the industries and markets we serve. Commodity prices appear to have stabilized, but at low levels. Global uncertainty continues, and the recent Brexit outcome and the turmoil in Turkey add to risks, especially in Europe."

7:40 am Allegheny Tech beats by $0.16, beats on revs (ATI) :

  • Reports Q2 (Jun) loss of $0.21 per share, excluding after-tax charges related to work stoppage in the flat rolled segment & an above-normal tax rate benefit, $0.16 better than the Capital IQ Consensus of ($0.37); revenues fell 20.7% year/year to $810.5 mln vs the $795.7 mln Capital IQ Consensus.
    • Compared to the first quarter 2016, sales increased 1% in the High Performance Materials & Components segment. Flat Rolled Products segment sales increased 18% compared to the first quarter 2016, due primarily to 54% higher shipments of standard stainless steel sheet products following low first quarter operating levels related to the work stoppage and return to work sequencing.
  • Compared to the first quarter 2016, sales increased 1% in the High Performance Materials & Components segment. Flat Rolled Products segment sales increased 18% compared to the first quarter 2016, due primarily to 54% higher shipments of standard stainless steel sheet products following low first quarter operating levels related to the work stoppage and return to work sequencing.
  • Outlook:
    • "In our FRP segment, our second quarter results demonstrate that we are making progress in our journey toward a consistently profitable business, during a period of continuing low raw material prices, global stainless steel sheet and strip overcapacity, and uncertain end market demand. While FRP operational performance is improving, more work remains as we continue our rightsizing and restructuring activities to streamline and simplify this business. While we expect a further reduction in operating losses in the third quarter, compared to the second quarter, third quarter results for FRP are expected to be impacted by higher maintenance expenses, including planned equipment upgrades in our finishing operations. As we continue to reposition this business to a higher-value and more differentiated product mix, we expect shipments of our specialty coil and plate products to increase in the second half of 2016 and benefit from the HRPF capabilities, particularly for our 48"-wide nickel-based alloy sheet. As a result of these initiatives we continue to believe that the FRP segment will be modestly profitable in the fourth quarter 2016."
  • "In our FRP segment, our second quarter results demonstrate that we are making progress in our journey toward a consistently profitable business, during a period of continuing low raw material prices, global stainless steel sheet and strip overcapacity, and uncertain end market demand. While FRP operational performance is improving, more work remains as we continue our rightsizing and restructuring activities to streamline and simplify this business. While we expect a further reduction in operating losses in the third quarter, compared to the second quarter, third quarter results for FRP are expected to be impacted by higher maintenance expenses, including planned equipment upgrades in our finishing operations. As we continue to reposition this business to a higher-value and more differentiated product mix, we expect shipments of our specialty coil and plate products to increase in the second half of 2016 and benefit from the HRPF capabilities, particularly for our 48"-wide nickel-based alloy sheet. As a result of these initiatives we continue to believe that the FRP segment will be modestly profitable in the fourth quarter 2016."

7:39 am MiMedx Group misses by $0.02, beats on revs; guides Q3 revs in-line; slashes FY16 EPS guidance, narrows FY16 revs outlook (MDXG) :

  • Reports Q2 (Jun) earnings of $0.05 per share, $0.02 worse than the Capital IQ Consensus of $0.07; revenues rose 25.5% year/year to $57.34 mln (in-line with 7/11 pre-announcement) vs the $56.2 mln Capital IQ Consensus.
  • The Company's Adjusted Gross Margin for the second quarter of 2016 was 88.1%, compared to 88.9% in the second quarter of 2015.
  • Co issues in-line guidance for Q3, sees Q3 revs of $62-64 mln vs. $62.88 mln Capital IQ Consensus Estimate.
  • Co adjusts guidance for FY16, sees EPS of $0.21-0.23 (Prior $0.30-0.32) vs. $0.30 Capital IQ Consensus Estimate; sees FY16 revs of $243.50-248 mln (Prior $242.50-250 mln) vs. $243.64 mln Capital IQ Consensus Estimate.
  • "Although we have high expectations for the impact of our new product launches, we have chosen to be very conservative and just narrow the range of our estimates for the year at this time. However, I believe our third quarter revenue growth projections should be a solid indication of how the remainder of the year and the fourth quarter should evolve"

7:37 am Hubbell beats by $0.10, beats on revs; reaffirms FY16 EPS guidance (HUBB) :

  • Reports Q2 (Jun) earnings of $1.53 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus of $1.43; revenues rose 4.0% year/year to $908.8 mln vs the $898.99 mln Capital IQ Consensus. (+1% organic, +4% acquisitions, -1% FX)
  • Co reaffirms guidance for FY16, sees EPS of $5.20-5.40 vs. $5.35 Capital IQ Consensus Estimate.
    • "We continue to expect flat end markets in the aggregate for the second half of 2016, consistent with our annual expectations, and we target to outperform our end markets"
    • "Similar to the first quarter, organic growth offset foreign exchange headwind while acquisitions fueled higher sales," said David G. Nord, Chairman, President and Chief Executive Officer. "End market performance continued to be mixed, with expansion in non-residential and residential markets, declines in oil and core industrial, and flat utility markets. While overall demand was in line with our annual expectations, it was uneven within the months of the quarter."
  • "We continue to expect flat end markets in the aggregate for the second half of 2016, consistent with our annual expectations, and we target to outperform our end markets"
  • "Similar to the first quarter, organic growth offset foreign exchange headwind while acquisitions fueled higher sales," said David G. Nord, Chairman, President and Chief Executive Officer. "End market performance continued to be mixed, with expansion in non-residential and residential markets, declines in oil and core industrial, and flat utility markets. While overall demand was in line with our annual expectations, it was uneven within the months of the quarter."

7:36 am T. Rowe Price beats by $0.40, beats on revs (TROW) :

  • Reports Q2 (Jun) earnings of $1.15 per share, $0.40 better than the Capital IQ Consensus of $0.75; revenues fell 2.6% year/year to $1.04 bln vs the $1.03 bln Capital IQ Consensus. 
  • This nonrecurring charge (excluded from above) reduced net income in the second quarter of 2016 by $100.7 million, or $.39 in diluted earnings per common share.
  • Assets under management increased $12.0 billion in the second quarter of 2016 and $13.5 billion in the first half of 2016 to $776.6 billion at June 30, 2016.

7:34 am FirstMerit Corp beats by $0.03 (FMER) :

  • Reports Q2 (Jun) earnings of $0.36 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.33.
  • Total loan growth of $118.2 million, or 0.73% from the prior quarter
  • Net charge-offs to average originated loans of 0.13%
  • Common equity ratio (GAAP) 11.27% and tangible common equity ratio (non-GAAP) at 8.48%

7:34 am 3M beats by $0.01, reports revs in-line; guides FY16 EPS in-line, lowers revenue outlook (MMM) :

  • Reports Q2 (Jun) earnings of $2.08 per share, $0.01 better than the Capital IQ Consensus of $2.07; revenues fell 0.3% year/year to $7.66 bln vs the $7.71 bln Capital IQ Consensus.
  • Co issues in-line guidance for FY16, sees EPS of $8.15-8.30 (Prior $8.10-8.45), excluding non-recurring items, vs. $8.25 Capital IQ Consensus Estimate. To reflect the current economic environment and outlook, the company also updated its organic local-currency sales growth guidance to be in the range of 0 to 1 percent, versus a previous range of 1 to 3 percent.
    • 3M forecasts foreign currency translation to reduce 2016 sales by 1 to 2 percent, versus a previous expected reduction of 1 to 3 percent.
    • The company also estimates its full-year tax rate will be in the range of 29.0 to 29.5 percent, versus a prior range of 29.5 to 30.5 percent.
  • 3M forecasts foreign currency translation to reduce 2016 sales by 1 to 2 percent, versus a previous expected reduction of 1 to 3 percent.
  • The company also estimates its full-year tax rate will be in the range of 29.0 to 29.5 percent, versus a prior range of 29.5 to 30.5 percent.

7:33 am Alimera Sciences offers upside Q2 prelim revenue results, announces certain modifications to its loan facility (ALIM) :

  • The co said it sees Q2 revs $9.3-9.5 mln vs $7.16 mln two analyst estimate
  • The Company also announced that it has modified the liquidity and revenue covenants in its existing loan agreement with Hercules Capital, Inc. (HTGC). The modification allows for the reduction of Alimera's liquidity threshold and reduces its trailing three-month revenue requirement through the period ending August 31, 2016.
  • The co will release its financial results for the period ending June 30, 2016, after the market closes on August 3, 2016.

7:33 am City Holding Co beats by $0.04 (CHCO) :

  • Reports Q2 (Jun) earnings of $0.83 per share, $0.04 better than the Capital IQ Consensus of $0.79. 
  • Return on assets and return on tangible equity of 1.31% and 14.5%, respectively.
  • Total net loan growth of $26.3 mln from March 31, 2016 to June 30, 2016.
  • Average total deposit balances grew $95.9 mln from the quarter ended March 31, 2016 to the quarter ended June 30, 2016.
  • Asset quality continues to remain strong with nonperforming assets declining to $21.3 mln, or 0.73% of total loans and other real estate owned. Past due loans remained steady at just 0.30% of total loans outstanding. 

7:31 am Reynolds American misses by $0.03, misses on revs; guides FY16 EPS in-line; announces $2 bln buyback; increases dividend payout target to 80% of adjusted net income (RAI) :

  • Reports Q2 (Jun) earnings of $0.58 per share, $0.03 worse than the Capital IQ Consensus of $0.61; revenues rose 33.0% year/year to $3.19 bln vs the $3.26 bln Capital IQ Consensus.
  • Co issues in-line guidance for FY16, sees EPS of $2.26-2.34 vs. $2.34 Capital IQ Consensus Estimate.
  • RAI's board also approved a new $2.0 billion share repurchase program that is intended to be completed by year-end 2018. This is the first share repurchase program authorized by RAI's board since the announcement of the Lorillard acquisition in July 2014.
    RAI announced today that its board has approved an increase in its dividend payout target to 80 percent of adjusted net income, and has authorized a new share repurchase program.

7:31 am Clearside Biomedical reports additional top-line data from its Phase 2 clinical trial (:TANZANITE); expects to have an end-of-Phase 2 meeting with the FDA in the second half of 2016 (CLSD) :

78% or 18 out of 23 patients in the active arm of the TANZANITE trial did not require additional treatments during the three-month trial compared to 30% (7/23) in the control arm (p=0.003).

  • Co expects to have an end-of-Phase 2 meeting with the FDA in the second half of 2016, and, if feedback from the FDA at that meeting is positive, co intends to commence a Phase 3 clinical program for the treatment of macular edema associated with RVO in the first half of 2017.

7:25 am First Bancorp reports Q2 earnings in-line (FBP) :

Reports Q2 (Jun) earnings of $0.10 per share, in-line with Capital IQ Consensus of $0.10.

  • The financial results for the first quarter of 2016 included other-than-temporary impairment losses on debt securities of $6.7 mln and a gain of $4.2 mln on repurchase and cancellation of $10 mln in trust preferred securities
  • On a non-GAAP basis, excluding the effect of OTTI losses and the gain on the repurchase and cancellation of trust preferred securities in the first quarter of 2016, the net income of $22.0 mln for the second quarter of 2016 decreased $3.8 mln compared to adjusted net income of $25.8 mln for the first quarter of 2016

Credit quality variances:

  • Non-performing assets increased in the quarter by $19.0 mln, to $756.2 mln as of June 30, 2016, primarily attributable to the inflow to non-performing status of a $35.0 mln commercial relationship, partially offset by reductions in non-performing residential mortgage loans and other real estate owned balances
  • Early stage loan delinquencies decreased for the second consecutive quarter, down 13% from the first quarter
  • Net charge-off rate of 1.11% remained stable compared to 1.05% for the first quarter of 2016

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

  • LMI Aerospace (LMIA) COO Joe DeMartino has resigned his post effective immediately for personal reasons. LMI Chief Executive Officer Dan Korte will oversee DeMartino's duties while the company evaluates options for a new leader of its Aerostructures business segment.
  • Novocure (NVCR) announced today that the National Comprehensive Cancer Network has recommended Optune as a standard treatment option for newly diagnosed glioblastoma in its Clinical Practice Guidelines in Oncology for Central Nervous System Cancers.

7:22 am Mueller Industries reports Q2 EPS of $0.49 versus $0.59 last year; revs -2% YoY to $544.1 mln (no ests) (MLI) :

  • "In the U.S., construction activity continues at a steady pace in both the residential and non-residential sectors. Orders for our construction related products in North America are solid and we look forward to moving beyond production constraints related to our ongoing piping products plant modernization programs."

7:21 am European Markets Update: FTSE +0.3%, DAX +0.3%, CAC UNCH (:SUMRX) :

Major European indices are mixed with Italy's MIB (-0.5%) struggling to keep pace with other markets. The overall investor sentiment was dampened after comments from Japanese officials downplayed the immediate need for stimulus. Financials have shown relative weakness in Europe while other stocks have had a better showing.

  • Economic data was limited:
    • UK's BBA Mortgage Approvals 40,100 (expected 40,200; last 41,800)
    • Spain's PPI -4.7% year-over-year (last -5.6%)
  • UK's BBA Mortgage Approvals 40,100 (expected 40,200; last 41,800)
  • Spain's PPI -4.7% year-over-year (last -5.6%)

---Equity Markets---

  • UK's FTSE is higher by 0.3% with select miners among the leaders. Fresnillo, Randgold Resources, Rio Tinto, and BHP Billiton are up between 1.5% and 4.7%. On the downside, consumer names Tesco and Sainsbury are down 3.9% and 2.2%, respectively, while homebuilders Barratt Developments and Taylor Wimpey hold respective losses of 2.0% and 1.7%.
  • Germany's DAX has added 0.3% with Volkswagen, Daimler, and BMW up between 0.9% and 2.2%. Financials have faced some selling pressure with Deutsche Bank falling 3.0% and Commerzbank sliding 5.0%.
  • France's CAC trades flat. Exporters Valeo, Michelin, Peugeot, and Renault show gains between 1.1% and 2.6% while financials lag. Societe Generale, AXA, BNP Paribas, and Credit Agricole show losses between 0.5% and 1.2%.
  • Italy's MIB has given up 0.5% with Mediaset falling 9.8%. Financials like Unicredit, Mediobanca, Banca Pop Emilia Romagna, UBI Banca, and Banco Popolare are down between 1.3% and 3.1%.

7:19 am Alliance Resource beats by $0.27, reports revs in-line (ARLP) :

  • Reports Q2 (Jun) earnings of $0.82 per basic and diluted share, $0.27 better than the Capital IQ Consensus of $0.55; revenues fell 27.4% year/year to $439.2 mln vs the $440.83 mln Capital IQ Consensus.
  • FY16 Production Guidance:
    • Based on results to date and expectations for the balance of 2016, ARLP is adjusting its 2016 full-year estimates for coal production to a range of 33.5 to 34.5 mln tons and coal sales volumes to a range of 35.0 to 36.0 mln tons. ARLP currently anticipates its 2016 average coal sales price per ton will be 2.5% to 4.5% lower at the midpoint compared to 2015 realizations, a slight improvement over initial 2016 guidance. Reflecting current sales volume and pricing estimates, ARLP now anticipates 2016 revenues, excluding transportation revenues, in a range of $1.82 to $1.91 bln.
  • Based on results to date and expectations for the balance of 2016, ARLP is adjusting its 2016 full-year estimates for coal production to a range of 33.5 to 34.5 mln tons and coal sales volumes to a range of 35.0 to 36.0 mln tons. ARLP currently anticipates its 2016 average coal sales price per ton will be 2.5% to 4.5% lower at the midpoint compared to 2015 realizations, a slight improvement over initial 2016 guidance. Reflecting current sales volume and pricing estimates, ARLP now anticipates 2016 revenues, excluding transportation revenues, in a range of $1.82 to $1.91 bln.
  • FY16 Capex Guidance:
    • Capital expenditures of $16.9 mln during the 2016 Quarter continued to be below expectations. Co is reducing anticipated 2016 total capex to a range of $100.0 to $110.0 mln. In addition to these capital expenditures, ARLP currently anticipates its current commitment to acquire oil and gas mineral interests will be completed by the end of the year and, as a result, is increasing 2016 estimated investments for this activity to a range of $80.0 to $85.0 mln.
  • Capital expenditures of $16.9 mln during the 2016 Quarter continued to be below expectations. Co is reducing anticipated 2016 total capex to a range of $100.0 to $110.0 mln. In addition to these capital expenditures, ARLP currently anticipates its current commitment to acquire oil and gas mineral interests will be completed by the end of the year and, as a result, is increasing 2016 estimated investments for this activity to a range of $80.0 to $85.0 mln.

7:18 am Dorman Products beats by $0.02, misses on revs; co also announces investment in Powertrain Industries, Inc (DORM) :

Reports Q2 (Jun) earnings of $0.75 per share, $0.02 better than the Capital IQ Consensus of $0.73; revenues rose 5.5% year/year to $209.6 mln vs the $214.1 mln Capital IQ Consensus.

  • "Second quarter net sales were up 5% despite several headwinds, including lower purchases from one of our larger customers due to its first quarter inventory build and the consolidation of another large customer. The team executed well on many fronts which allowed us to deliver solid double digit earnings growth. We remain optimistic about the long term organic growth prospects for our business, and for the year we expect mid-to-high single-digit revenue growth and reported net income growth to be in the high single-digit to low double-digit range," said Matt Barton, President and Chief Executive Officer.

The company also announced that it has acquired a 40% interest in Powertrain Industries ("PTI"), a leading manufacturer of driveshafts and driveline related products, for ~$6 mln in July 2016.

  • PTI is headquartered in Garden Grove, CA with four driveshaft manufacturing facilities located regionally throughout the U.S., and gives Dorman a unique opportunity to service the growing need for complete driveshafts, and quality aftermarket components. A minimal 2016 impact on net income is expected as a result of the investment.
  • Co said, "We've seen rapid technological change in driveline systems, and believe that this partnership provides an immediate opportunity to emerge as a leader in driveline repair parts."

7:18 am Baxter beats by $0.06, beats on revs; guides Q3 EPS above consensus; raises FY16 EPS above consensus (BAX) :

  • Reports Q2 (Jun) earnings of $0.46 per share, $0.06 better than the Capital IQ Consensus of $0.40; revenues rose 4.4% year/year to $2.59 bln vs the $2.52 bln Capital IQ Consensus.
  • Co issues upside guidance for Q3, sees EPS of $0.43-0.45, excluding non-recurring items, vs. $0.42 Capital IQ Consensus Estimate. For the third quarter, the company expects reported sales growth of 2 percent to 3 percent and on a constant currency basis, sales growth of 3 percent to 4 percent.
  • Co issues upside guidance for FY16, sees EPS of $1.69-1.74 (Prior $1.59-1.67), excluding non-recurring items, vs. $1.64 Capital IQ Consensus Estimate. For full-year 2016, Baxter now expects reported sales growth of 1 percent to 2 percent and on a constant currency basis, sales growth of 3 percent to 4 percent.

7:18 am Masco beats by $0.03, reports revs in-line; raises annual dividend to $0.40 from $0.38 (MAS) :

  • Reports Q2 (Jun) earnings of $0.46 per share, $0.03 better than the Capital IQ Consensus of $0.43; revenues rose 3.7% year/year to $2 bln vs the $2 bln Capital IQ Consensus. 
  • Gross margins improved to 35.2% compared to 33.0%.
  • Plumbing Products' net sales increased 9 percent (10 percent excluding the impact of foreign currency translation), driven by growth in the retail and wholesale channels
  • Decorative Architectural Products' net sales matched last year, with growth from paints and other coating products and builders' hardware offset by the timing and amount of promotions
  • Cabinetry Products' net sales decreased 3 percent due to the exit of lower margin business in the builder channel, which was partially offset by growth and improved mix in the retail channel
  • Windows and Other Specialty Products' net sales increased 3 percent (4 percent excluding the impact of foreign currency translation), led by our North American windows business
  • "The fundamental demand drivers of our end markets remain robust," said Allman. "Combined with these underlying fundamentals, our strong performance this quarter is evidence that we continue to successfully execute against our long-term growth strategies by leveraging our brand portfolio, our industry-leading positions and our Masco Operating System. Reflecting confidence in Masco's future outlook, our Board of Directors intends to increase our annual dividend by $0.02 per share to $0.40 per share, beginning with the quarterly dividend to be paid in the fourth quarter of 2016."

7:16 am AstraZeneca files Clinical Trial Application with the Paul Ehrlich Institute and the German Federal Ministry of Health to initiate a Phase 1 clinical trial of AZD8601 (AZN) :

AstraZeneca and Moderna Therapeutics today announced that AstraZeneca has filed a Clinical Trial Application with the Paul Ehrlich Institute and the German Federal Ministry of Health to initiate a Phase 1 clinical trial of AZD8601. The program is part of a collaboration between AstraZeneca and Moderna to discover, develop and commercialize messenger RNA Therapeutics to treat serious cardiovascular, metabolic and renal diseases as well as cancer. It marks the first program resulting from the collaboration to progress towards clinical trials.

  • AZD8601 is an investigational mRNA-based therapy that encodes for vascular endothelial growth factor-A

7:12 am Fidelity Nat'l Info beats by $0.03, beats on revs; raises FY16 guidance (FIS) :

  • Reports Q2 (Jun) earnings of $0.90 per share, $0.03 better than the Capital IQ Consensus of $0.87; revenues rose 49.0% year/year to $2.36 bln vs the $2.33 bln Capital IQ Consensus.
  • Co raises guidance for FY16, sees EPS of $3.75-3.85 (Prior $3.70-3.80) vs. $3.79 Capital IQ Consensus Estimate; sees organic revenue growth of 4-5% (Prior 3-4%)

7:12 am Janus Capital misses by $0.01, misses on revs (JNS) :

  • Reports Q2 (Jun) earnings of $0.21 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.22; revenues fell 7.4% year/year to $251.9 mln vs the $254.73 mln Capital IQ Consensus. 
  • Average assets under management during the second quarter 2016 were $189.3 billion compared with $180.2 billion during the first quarter 2016 and $193.0 billion during the second quarter 2015.

7:11 am Verizon beats by $0.01, misses on revs (VZ) :

  • Reports Q2 (Jun) earnings of $0.94 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.93; revenues fell 5.3% year/year to $30.53 bln vs the $30.97 bln Capital IQ Consensus.
  • New revenue streams from IoT continue to grow, with revenues of approximately $205 million in second-quarter 2016, a year-over-year increase of about 25 percent.
  • Wireless
    • Verizon reported 615,000 retail postpaid net additions in second-quarter 2016.
    • Customer retention remained at industry-leading levels, with retail postpaid churn at a low 0.94 percent in second-quarter 2016, a year-over-year increase of 4 basis points, as strong retention in the phone base was offset by increased churn in tablets.
    • Total revenues were $21.7 billion in second-quarter 2016, a decline of 4.0 percent compared with second-quarter 2015, as more customers continued to choose unsubsidized device payment plans.
    • The percentage of phone activations on device payment plans was 67 percent in second-quarter 2016, compared with 68 percent in first-quarter 2016. The company expects this percentage to remain consistent with recent experience.
  • Verizon reported 615,000 retail postpaid net additions in second-quarter 2016.
  • Customer retention remained at industry-leading levels, with retail postpaid churn at a low 0.94 percent in second-quarter 2016, a year-over-year increase of 4 basis points, as strong retention in the phone base was offset by increased churn in tablets.
  • Total revenues were $21.7 billion in second-quarter 2016, a decline of 4.0 percent compared with second-quarter 2015, as more customers continued to choose unsubsidized device payment plans.
  • The percentage of phone activations on device payment plans was 67 percent in second-quarter 2016, compared with 68 percent in first-quarter 2016. The company expects this percentage to remain consistent with recent experience.
  • Wireline
    • Total revenues for Fios fiber-optic-based services grew 3.7 percent, to $2.8 billion, comparing second-quarter 2016 with second-quarter 2015. The work stoppage impacted Fios connection growth, resulting in net declines of 13,000 Fios internet connections and 41,000 Fios video connections in second-quarter 2016.
  • Total revenues for Fios fiber-optic-based services grew 3.7 percent, to $2.8 billion, comparing second-quarter 2016 with second-quarter 2015. The work stoppage impacted Fios connection growth, resulting in net declines of 13,000 Fios internet connections and 41,000 Fios video connections in second-quarter 2016.
  • Guidance
    • 2016 adjusted earnings to be at a level comparable to 2015, excluding the 7-cent-per-share impact of the 2016 work stoppage (Comments are a reiteration of the outlook provided in Q1, although Q1 also had the caveat of the uncertainty surrounding the strike; 2015 was $4.37, Capital IQ consensus for 2016 stands at $3.89 which may not be comparable);
    • Consolidated adjusted EBITDA margin consistent with full-year 2015;
    • Consolidated capital spending between $17.2 billion and $17.7 billion;
    • A minimum pension funding requirement of approximately $550 million in 2016;
    • An effective tax rate for financial reporting purposes in the range of 35-36%;
    • Growth in consolidated revenue for full-year 2017 consistent with GDP growth for that year;
    • A return, by 2018-2019, to the company's credit-rating profile prior to the acquisition of Vodafone's indirect 45 percent interest in Verizon Wireless in early 2014.
  • 2016 adjusted earnings to be at a level comparable to 2015, excluding the 7-cent-per-share impact of the 2016 work stoppage (Comments are a reiteration of the outlook provided in Q1, although Q1 also had the caveat of the uncertainty surrounding the strike; 2015 was $4.37, Capital IQ consensus for 2016 stands at $3.89 which may not be comparable);
  • Consolidated adjusted EBITDA margin consistent with full-year 2015;
  • Consolidated capital spending between $17.2 billion and $17.7 billion;
  • A minimum pension funding requirement of approximately $550 million in 2016;
  • An effective tax rate for financial reporting purposes in the range of 35-36%;
  • Growth in consolidated revenue for full-year 2017 consistent with GDP growth for that year;
  • A return, by 2018-2019, to the company's credit-rating profile prior to the acquisition of Vodafone's indirect 45 percent interest in Verizon Wireless in early 2014.

7:11 am Sirius XM Radio misses by $0.01, reports revs in-line; guides FY16 revs above consensus; co added 587,000 net new subscribers in Q2 (SIRI) :

  • Reports Q2 (Jun) earnings of $0.03 per share, $0.01 worse than the Capital IQ Consensus of $0.04; revenues rose 10.0% year/year to $1.24 bln vs the $1.22 bln Capital IQ Consensus.
  • Adjusted EBITDA in Q2 came in at $468 mln, up 13% YoY.
  • Co issues upside guidance for FY16, sees FY16 revs of approaching $5.0 bln vs. $4.97 bln Capital IQ Consensus Estimate and vs prior guidance of approx $4.9 bln. Co increases adjusted EBITDA guidance to approx $1.8 bln from prior guidance of a[[rox $1.78 bln.
  • Co added 587,000 net new subscribers to end Q2 with more than 30.6 mln subscribers, an increase of 8% YoY. Self-pay net additions were 507,000 during Q2, resulting in self-pay subscribers of 25.1 mln, up 7% YoY. The revenue increase was driven by an 8% increase in subscribers and a 3% increase in average revenue per user (:ARPU) to $12.78.
  • "SiriusXM's [Q2] results demonstrated continued strong demand for our content bundle and solid execution by our entire team....Our programming team has been hard at work developing new and exclusive content to power our unique service."
  • Co now expects to add 1.6 mln net new self-pay subscribers and 1.7 mln total net new subscribers in 2016, an increase from prior guidance of 1.4 mln and 1.6 mln, respectively.

7:10 am CTG beats by $0.01, misses on revs; guides Q3 EPS in-line, revs below consensus; raises FY16 guidance, Operating margin +1.1% y/y (CTG) :

  • Reports Q2 (Jun) earnings of $0.05 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.04; revenues fell 11.9% year/year to $83.5 mln vs the $85.77 mln Capital IQ Consensus.
    • The year-over-year rev decline primarily reflects a decrease in staffing revenue at significant staffing customers and the continued trail-off of legacy electronic medical records account business. Positive currency translation increased revenue in the second quarter by $0.3 million.
  • The year-over-year rev decline primarily reflects a decrease in staffing revenue at significant staffing customers and the continued trail-off of legacy electronic medical records account business. Positive currency translation increased revenue in the second quarter by $0.3 million.
  • Operating margin was 2.3%, compared with 1.2% in the second quarter of 2015, which included $2.3 million in charges
  • Co issues guidance for Q3, sees EPS of $0.02-0.04, excluding non-recurring items, vs. $0.03 Capital IQ Consensus Estimate; sees Q3 revs of $79.0-81.0 vs. $85.12 mln Capital IQ Consensus Estimate.
  • Co raises EPS guidance for FY16, sees adj EPS of $0.17-0.23 (prior $0.13-0.21), vs. $0.16 Capital IQ Consensus Estimate; sees FY16 revs of $328.0-334.0 mln (prior $338-350 mln) vs. $342.62 mln Capital IQ Consensus Estimate.
    • "As largely anticipated, current macro and industry trends are continuing to be challenges for a number of our clients, resulting in lower revenue expectations for the third quarter and full year. However, we remain fully committed to working closely with all of our clients and providing the consistent unmatched reliability that sets CTG apart. Equally important is our continued execution on business objectives and growth initiatives. We expect to further build on CTG's existing roster of new clients and our broadening business pipeline, with the goal of exiting 2016 on strong footing and growing momentum."
  • "As largely anticipated, current macro and industry trends are continuing to be challenges for a number of our clients, resulting in lower revenue expectations for the third quarter and full year. However, we remain fully committed to working closely with all of our clients and providing the consistent unmatched reliability that sets CTG apart. Equally important is our continued execution on business objectives and growth initiatives. We expect to further build on CTG's existing roster of new clients and our broadening business pipeline, with the goal of exiting 2016 on strong footing and growing momentum."

7:10 am Valero Energy beats by $0.08, beats on revs (VLO) :

  • Reports Q2 (Jun) earnings of $1.07 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.99; revenues fell 22.0% year/year to $19.58 bln vs the $18.67 bln Capital IQ Consensus. 
  • "Despite a challenging earnings environment, our operations generated $2.3 billion of cash during the quarter," said Joe Gorder, Valero Chairman, President and Chief Executive Officer. "Our advantaged refining portfolio in the U.S. Gulf Coast and our team's focus on safe, reliable, low-cost operations allowed us to continue delivering solid performance despite lower margins."
  • Valero exported a second quarter record 396,000 BPD of diesel and gasoline combined in the second quarter of 2016.
  • "Demand for refined products domestically and in the export markets remained strong in the second quarter," said Gorder. "We are also encouraged by ample supplies of medium and heavy sour crude oils in the market, which should help to expand their discounts relative to Brent crude oil, and by a positive demand outlook."
    • The refining segment reported $1.3 billion of operating income ($954 million of adjusted operating income) for the second quarter of 2016, compared to $2.2 billion of operating income for the second quarter of 2015. The decline was primarily attributable to weaker gasoline and distillate margins. Other factors included narrower sweet crude oil discounts relative to the Brent benchmark and higher costs to meet our biofuel blending obligations (primarily for the purchase of RINs).
    • The ethanol segment reported $69 million of operating income ($49 million of adjusted operating income) for the second quarter of 2016 compared to $108 million of operating income for the second quarter of 2015. Ethanol production volumes averaged 3.8 million gallons per day in the second quarter of 2016, which was consistent with the second quarter of 2015. Valero expects ethanol demand to remain strong given high gasoline demand in the U.S. and attractive economics for corn-based ethanol exports.
  • The refining segment reported $1.3 billion of operating income ($954 million of adjusted operating income) for the second quarter of 2016, compared to $2.2 billion of operating income for the second quarter of 2015. The decline was primarily attributable to weaker gasoline and distillate margins. Other factors included narrower sweet crude oil discounts relative to the Brent benchmark and higher costs to meet our biofuel blending obligations (primarily for the purchase of RINs).
  • The ethanol segment reported $69 million of operating income ($49 million of adjusted operating income) for the second quarter of 2016 compared to $108 million of operating income for the second quarter of 2015. Ethanol production volumes averaged 3.8 million gallons per day in the second quarter of 2016, which was consistent with the second quarter of 2015. Valero expects ethanol demand to remain strong given high gasoline demand in the U.S. and attractive economics for corn-based ethanol exports.

7:08 am Colliers beats by $0.08, beats on revs (CIGI) :

  • Reports Q2 (Jun) earnings of $0.63 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.55; revenues rose 17.7% year/year to $482.5 mln vs the $438.73 mln Capital IQ Consensus.
  • During the second quarter, coinciding with Colliers' first anniversary as an independent public company, the Company implemented a plan to consolidate global leadership in Toronto, with Seattle and Vancouver continuing as shared services centres. The plan resulted in the downsizing of the Seattle office and a modest headcount reduction. Restructuring costs incurred during the quarter totalled $2.8 million and are reflected as reconciling items in the computation of Adjusted EBITDA and Adjusted EPS. The plan will be completed, and additional costs of approximately $1.5 million will be incurred, during the third quarter of 2016.

7:07 am Under Armour misses by $0.01, reports revs in-line; reaffirms FY16 revs guidance (UA) :

  • Reports Q2 (Jun) earnings of $0.01 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.02; revenues rose 27.7% year/year to $1 bln vs the $1 bln Capital IQ Consensus. EPS is inclusive of $0.03 impact from the impairment related to the Sports Authority liquidation. This compares with diluted earnings per share of $0.03 for all classes in the prior year's period.
  • Gross margin for the second quarter of 2016 was 47.7% compared with 48.4% in the prior year's period.
  • Co reaffirms guidance for FY16, sees FY16 revs of ~$4.925 bln vs. $4.96 bln Capital IQ Consensus Estimate.
  • North America net revenues for the second quarter grew 22% year-over-year. International net revenues, which represented 15% of total net revenues for the second quarter, grew 68% year-over-year, or 72% on a currency neutral basis.
  • FY16 Guidance: Co sees 2016 operating income in the range of $440 mln to $445 mln, representing growth of 8% to 9% over 2015. Below the operating line, the Company expects interest expense of ~$32 mln, an effective full year tax rate of ~36.5%, and fully diluted weighted average shares outstanding of ~448 mln.

7:07 am NeoGenomics beats by $0.01, beats on revs; reaffirms FY16 EPS, revs guidance (NEO) :

  • Reports Q2 (Jun) earnings of $0.04 per share, $0.01 better than the Capital IQ Consensus of $0.03; revenues rose 159.0% year/year to $63.13 mln vs the $60.94 mln Capital IQ Consensus.
  • Co reaffirms guidance for FY16, sees EPS of $0.08-0.13 vs. $0.12 Capital IQ Consensus Estimate; sees FY16 revs of $242-252 mln vs. $247.82 mln Capital IQ Consensus Estimate.

7:06 am Allegiance Bancshares reports EPS in-line (ABTX) :

  • Reports Q2 (Jun) earnings of $0.36 per share, in-line with the Capital IQ Consensus of $0.36.
  • Core loans increased 15.4% year over year and 2.9% for the second quarter 2016 compared to the first quarter 2016
  • Annualized net charge-offs of 0.11% and a nonperforming assets to total assets ratio of 0.37% for the second quarter 2016

7:05 am PAVmed units to separate into common stock (:PAVM) and warrants (:PAVMW); PAVMU will cease trading upon separation on or about July 27 (PAVMU) :  

7:04 am Select Income REIT misses by $0.02, reports revs in-line (SIR) :

  • Reports Q2 (Jun) funds from operations of $0.72 per share, $0.02 worse than the Capital IQ Consensus of $0.74; revenues rose 7.2% year/year to $114.9 mln vs the $114.8 mln single analyst estimate.

7:04 am Mobileye N.V. beats by $0.02, beats on revs; guides on call (MBLY) :

  • Reports Q2 (Jun) earnings of $0.17 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.15; revenues rose 58.1% year/year to $83.5 mln vs the $76.98 mln Capital IQ Consensus. Within total revenue, original equipment manufacturing (:OEM) revenue was $64.4 million, compared to $43.6 million in the prior-year period.
  • EyeQ chip volume increased 45.4% year-over-year to 1,409 thousand EyeQ units, compared to 969 thousand units in the prior-year period. The EyeQ Average Selling Price (:ASP) per unit for the second quarter of 2016 was $44.5, up from $43.7 during the same period last year. After market (AM) revenue contributed the remaining $19.1 million of total revenue for the second quarter of 2016 compared to $9.2 million in the prior-year period.
  • "In addition to winning new ADAS programs and new Tier-1 partnerships, we have begun an expansion of our value proposition by creating partnerships with automakers and others in order to bring fully autonomous driving to volume production within the next five years. The BMW/Intel/Mobileye partnership is the first significant collaboration of this type and we anticipate others. Overall, we believe we have made important progress in advancing our strategy of securing a significant, long-term presence in all levels of autonomous driving."
  • Will update FY16 guidance on 8:00 call.

7:04 am Asian Markets Close: Nikkei -1.4%, Hang Seng +0.6%, Shanghai +1.1% (:SUMRX) :

Equity indices across the Asia-Pacific region ended Tuesday on a mixed note with Japan's Nikkei (-1.4%) showing relative weakness. The retreat in Japanese equities was accompanied by yen strength that sent the dollar/yen pair to 104.00. The currency pair has inched up to 104.40, which leaves the yen up 1.3% against the dollar. The yen strength began building after Japan's Finance Minister Taro Aso said the Bank of Japan will be allowed to make its own decision on stimulus.

  • In economic data:
    • Japan's Corporate Services Price Index 0.2% year-over-year (consensus 0.1%; last 0.2%)
    • Hong Kong's trade deficit HKD45.60 billion (last deficit of HKD26.20 billion)
    • South Korea's Q2 GDP +0.7% quarter-over-quarter, as expected (last 0.5%); +3.2% year-over-year (consensus 2.9%; last 2.8%)
    • New Zealand's June trade deficit narrowed to NZD3.31 billion from NZD3.63 billion (expected deficit of NZD3.30 billion)
    • Singapore's June Industrial Production -2.5% month-over-month, as expected (last -0.4%); -0.3% year-over-year (consensus -0.2%; last 0.8%)
  • Japan's Corporate Services Price Index 0.2% year-over-year (consensus 0.1%; last 0.2%)
  • Hong Kong's trade deficit HKD45.60 billion (last deficit of HKD26.20 billion)
  • South Korea's Q2 GDP +0.7% quarter-over-quarter, as expected (last 0.5%); +3.2% year-over-year (consensus 2.9%; last 2.8%)
  • New Zealand's June trade deficit narrowed to NZD3.31 billion from NZD3.63 billion (expected deficit of NZD3.30 billion)
  • Singapore's June Industrial Production -2.5% month-over-month, as expected (last -0.4%); -0.3% year-over-year (consensus -0.2%; last 0.8%)

---Equity Markets---

  • Japan's Nikkei lost 1.4% with nine sectors ending in the red. Materials (-2.4%), financials (-2.2%), and energy (-2.1%) lagged while communications (+0.2%) outperformed. Toshiba sank 9.2% while TDK, Alps Electric, Nitto Denko, Olympus, Kyocera, Yokohama Rubber, and Sony Financial Holdings lost between 3.8% and 5.4%.
  • Hong Kong's Hang Seng added 0.6% with casino names leading the advance. Galaxy Entertainment and Sands China gained 6.5% and 5.8%, respectively, after Sheldon Adelson made upbeat comments about regional industry trends. Financials like China Life Insurance, Bank of East Asia, Ping An Insurance, Hang Seng Bank, and Bank of China added between 0.9% and 1.5%.
  • China's Shanghai Composite advanced 1.1%. China Animal Husbandry Industry, SAIC Motor, Shandong Gold-Mining, and Tangshan Sanyou Chemical added between 6.6% and 7.8%.
  • India's Sensex shed 0.4%. Dr. Reddy's Labs was the weakest performer, losing 4.4%, after the release of disappointing earnings. Financials were mixed with ICICI Bank losing 2.6%, HDFC Bank falling 0.5%, and AXIS Bank spiking 2.9%.

---FX---

  • USDJPY -1.3% to 104.38
  • USDCNY UNCH at 6.6735
  • USDINR -0.2% to 67.266

7:03 am Viking Therapeutics announces 'positive' top-line results from a proof-of-concept study of VK0214 in a mouse model of X-linked adrenoleukodystrophy (VKTX) :

The results of this study showed that VK0214 rapidly reduced plasma very long chain fatty acid (:VLCFA) levels by more than 25% in treated animals compared with vehicle controls (p < 0.01).

  • The study successfully achieved its primary objective, which was to demonstrate the ability of VK0214 to lower plasma VLCFA levels after six weeks of treatment.
  • Treatment with VK0214 led to robust effects on multiple VLCFAs and resulted in significantly lower levels of saturated C26, C24, C22, and C20 fatty acids relative to controls.

7:03 am Navigant Consult beats by $0.07, beats on revs; reaffirms FY16 EPS guidance at high end of reange, reaffirms revs guidance (NCI) :

  • Reports Q2 (Jun) earnings of $0.33 per share, $0.07 better than the Capital IQ Consensus of $0.26; revenues rose 13.0% year/year to $238.48 mln vs the $233.74 mln Capital IQ Consensus.
  • Co reaffirms guidance for FY16, sees EPS at the higher end of $1.05-1.15 vs. $1.14 Capital IQ Consensus Estimate; sees FY16 revs of $900 mln to 1.01 bln vs. $933.01 mln Capital IQ Consensus Estimate.

7:03 am Shire plc to present additional data of ADYNOVATE Phase 3 efficacy and safety at the International Congress of the World Federation of Hemophilia (SHPG) :

  • ADYNOVATE met its primary endpoint in the study, as no patients developed inhibitory antibodies to ADYNOVATE. Nearly 40 percent (37.9 percent) of patients experienced no bleeding episodes and more than 70 percent (72.7 percent) of patients had no joint bleeds. Of the bleeding episodes that did occur, none were considered major. The study also assessed the median annualized bleeding rate (ABR), which was 2.0 [mean ABR 3.0 (2.2 - 4.2)].

Following is a synopsis of the data to be presented:

  • Characteristics of Pediatric Previously Treated Patients with Severe Hemophilia A Aged <12 Years Experiencing No Bleeds During a 6-month Prophylactic Treatment Regimen with Pegylated Recombinant Factor VIII. Poster #:T-P-86
  • One analysis evaluated the characteristics of patients in the trial who achieved zero bleeds. The study found that 25 of the 66 pediatric (<12 years) patients (37.9 percent) receiving prophylactic treatment with ADYNOVATE achieved zero bleeds. While most characteristics were similar across all participants, patients without bleeding generally had fewer target joints at screening.
  • Reduction in Dosing Frequency and ABRs in Previously Treated Pediatric (<12 Years) Patients With Severe Hemophilia a During Prophylactic Treatment With Pegylated Recombinant Factor VIII Compared to Pre-Study Prophylactic Regimen With Other FVIII Concentrates. Poster #: T-P-79
  • Another analysis compared dosing frequency and ABRs in previously treated pediatric patients (<12 years). These patients were treated with ADYNOVATE during the study and had been treated prophylactically prior to the study using other FVIII concentrates, such as ADVATE (rFVIII). Twice-weekly prophylactic treatment with ADYNOVATE resulted in reduced dosing frequency in the majority of patients and fewer bleeding episodes. This is based on a reduction in ABRs compared with pre-study prophylactic treatment, while reducing the frequency of infusions in the majority of patients (from three or more times per week).

7:03 am Astec Industries beats by $0.04, beats on revs (ASTE) :

  • Reports Q2 (Jun) earnings of $0.79 per share, $0.04 better than the Capital IQ Consensus of $0.75; revenues rose 11.5% year/year to $294.39 mln vs the $283.44 mln Capital IQ Consensus.
  • The Company's backlog increased 58.8% from $229.5 million at June 30, 2015 to $364.5 million at June 30, 2016
  • "As our sales and backlog reflect, our domestic business remained strong during the quarter....In contrast to the success of our domestic business, we continued to face headwinds in all of our groups with regard to our international business, primarily as a result of the strong U.S. dollar. We also continue to be challenged in our Aggregate and Mining Group as a result of the global mining slow down. Finally, we remain challenged in our Energy Group equipment sales in the oil and natural gas industries as prices for these commodities remain at low levels."

7:01 am Plug Power announces that Newark Farmers Market has placed an order for 96 GenDrive fuel cell units to operate its electric industrial truck fleet in Newark (PLUG) :  

7:00 am CONSOL Energy misses by $0.02; guides FY16 for E&P and coal divisions (CNX) :

  • Reports Q2 (Jun) loss of $0.21 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus of ($0.19); revenues fell 47.6% year/year to $285.8 mln. 
  • Adjusted EBITDA from continuing operations was $136 million for the 2016 second quarter, compared to $138 million in the year-earlier quarter. Organic FCF from ops. $46 mln.
  • E&P Division Guidance: CONSOL Energy increases its annual 2016 E&P Division production to 380-385 Bcfe, compared to previous quarter's guidance of ~378 Bcfe. Total hedged natural gas production in the 2016 third quarter is 75.6 Bcf.
  • Coal division guidance: Pro rata adj. EBITDA $200-250 mln, CONSOL Energy expects annual 2016 Pennsylvania Operations sales to be ~22.5-25.5 million tons. CONSOL Energy expects 2016 total Coal Division capital expenditures to be between $105-$125 million, which includes Pennsylvania Operations capital expenditures of $90-$100 million On a normalized basis, the Coal Division expects maintenance of production capital of $5-$6 per ton.
  • "While we have seen the industry issue equity to improve liquidity and manage leverage ratios, CONSOL has focused on cutting costs, improving capital efficiencies, and monetizing assets."

7:00 am Tokai Pharma announces clinical update; co to discontinue Phase 3 ARMOR3-SV trial of Galeterone in AR-V7 Positive mCRPC (shares halted) (TKAI) :

Co plans to discontinue the ARMOR3-SV clinical trial, its pivotal Phase 3 study comparing galeterone to enzalutamide in treatment-nave metastatic castration-resistant prostate cancer (mCRPC) patients whose prostate tumors express AR-V7, following the recommendation made by the trial's independent Data Monitoring Committee.

  • Based on a review of all safety and efficacy data, the DMC determined that the ARMOR3-SV trial will likely not succeed in meeting its primary endpoint of demonstrating an improvement in radiographic progression-free survival (rPFS) for galeterone versus enzalutamide in AR-V7 positive mCRPC.
  • Co intends to evaluate its ongoing ARMOR2 expansion in mCRPC patients with acquired resistance to enzalutamide, and the planned study in patients who rapidly progress on either enzalutamide or abiraterone acetate.
  • As of June 30, 2016, Tokai had ~$43.9 mln in cash and cash equivalents.
  • Co will host an update conference call today, July 26, at 8:30 AM E.T.

7:00 am Bristol-Myers announces a new clinical research collaboration with Janssen Biotech, subsidiary of Johnson & Johnson (JNJ), to evaluate Opdivo and Janssen's LADD Listerial monocytogenes cancer immunotherapy in patients with non-small cell lung cancer (BMY) : The Phase 2 clinical trial will evaluate the tolerability and clinical activity of the combination of these agents in NSCLC patients.

7:00 am United Tech beats by $0.14, beats on revs; guides FY16 EPS in-line, revs in-line (UTX) :

  • Reports Q2 (Jun) earnings of $1.82 per share, excluding non-recurring items, $0.14 better than the Capital IQ Consensus of $1.68; revenues rose 1.3% year/year to $14.87 bln vs the $14.69 bln Capital IQ Consensus.
  • Co issues in-line guidance for FY16, sees EPS of $6.45-6.60 (Prior $6.30-6.60) vs. $6.54 Capital IQ Consensus Estimate; sees FY16 revs of $57-58 bln (Prior $56-58 bln) vs. $57.06 bln Capital IQ Consensus Estimate.
  • Remains on track to hit its 2020 targets.

6:58 am On The Wires (:WIRES) :

  • Fiesta Restaurant Group's (FRGI) Pollo Tropical has inked a development agreement to open five locations in Guyana, financial terms were not disclosed.
  • CytoDyn (CYDY) announces the enrollment of the first patient under a recently modified protocol in the Company's Phase 3 combination study with PRO 14O (humanized monoclonal antibody to CCR5). The modified protocol has been cleared by the FDA and features a 50% reduction in enrollment to 150 subjects and relaxed enrollment criteria allowing HIV-infected subjects to enter the study before confirmation of the R5 strain.

6:55 am A.O. Smith beats by $0.07, misses on revs; guides FY16 EPS above consensus (AOS) :

  • Reports Q2 (Jun) earnings of $0.98 per share, $0.07 better than the Capital IQ Consensus of $0.91; revenues rose 2.1% year/year to $667 mln vs the $694.03 mln Capital IQ Consensus. 
  • Co issues raised guidance for FY16, sees EPS of $3.58-3.64 from $3.47-3.55 vs. $3.53 Capital IQ Consensus Estimate.
  • Higher prices in the U.S. and Canada and significantly lower material costs contributed to the improved segment financial performance.

6:53 am Avery Dennison beats by $0.08, reports revs in-line; raises FY16 EPS guidance (AVY) :

  • Reports Q2 (Jun) earnings of $1.09 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $1.01; revenues rose 1.7% year/year to $1.54 bln vs the $1.54 bln Capital IQ Consensus.
    • Organic sales growth (non-GAAP) of approx. 4%
    • Pressure-sensitive Materials segment:
      • PSM reported sales increased approximately 3 percent; on an organic basis, sales grew approximately 5 percent. Within the segment, organic sales growth was mid-single digit for Label and Packaging Materials, and low-single digit for combined Graphics and Performance Tapes. Operating margin improved 130 basis points to 13 percent as the benefit of productivity initiatives and increased volume more than offset higher employee-related costs and the net impact of price and raw material input costs. Adjusted operating margin improved 120 basis points.
    • Retail Branding and Information Solutions:
      • RBIS reported sales decreased 2 percent; on an organic basis, sales grew approximately 2 percent. Operating margin increased by nearly five points to 7.5 percent, largely due to the benefit of lower restructuring charges. Adjusted operating margin improved 30 basis points as the net savings associated with the business model transformation and higher volume were partially offset by the impact of strategic pricing actions and higher employee-related costs.
  • Organic sales growth (non-GAAP) of approx. 4%
  • Pressure-sensitive Materials segment:
    • PSM reported sales increased approximately 3 percent; on an organic basis, sales grew approximately 5 percent. Within the segment, organic sales growth was mid-single digit for Label and Packaging Materials, and low-single digit for combined Graphics and Performance Tapes. Operating margin improved 130 basis points to 13 percent as the benefit of productivity initiatives and increased volume more than offset higher employee-related costs and the net impact of price and raw material input costs. Adjusted operating margin improved 120 basis points.
  • PSM reported sales increased approximately 3 percent; on an organic basis, sales grew approximately 5 percent. Within the segment, organic sales growth was mid-single digit for Label and Packaging Materials, and low-single digit for combined Graphics and Performance Tapes. Operating margin improved 130 basis points to 13 percent as the benefit of productivity initiatives and increased volume more than offset higher employee-related costs and the net impact of price and raw material input costs. Adjusted operating margin improved 120 basis points.
  • Retail Branding and Information Solutions:
    • RBIS reported sales decreased 2 percent; on an organic basis, sales grew approximately 2 percent. Operating margin increased by nearly five points to 7.5 percent, largely due to the benefit of lower restructuring charges. Adjusted operating margin improved 30 basis points as the net savings associated with the business model transformation and higher volume were partially offset by the impact of strategic pricing actions and higher employee-related costs.
  • RBIS reported sales decreased 2 percent; on an organic basis, sales grew approximately 2 percent. Operating margin increased by nearly five points to 7.5 percent, largely due to the benefit of lower restructuring charges. Adjusted operating margin improved 30 basis points as the net savings associated with the business model transformation and higher volume were partially offset by the impact of strategic pricing actions and higher employee-related costs.
  • Co raises guidance for FY16, sees adj EPS of $3.80-3.95 (prior $3.75-3.90) vs. $3.83 Capital IQ Consensus Estimate.
  • Previously announced acquisition of Mactac Europe on track for Aug close.

6:53 am MarineMax beats by $0.12, beats on revs; guides FY16 EPS above consensus and prior range (HZO) :

  • Reports Q3 (Jun) earnings of $0.57 per share, $0.12 better than the Capital IQ Consensus of $0.45; revenues rose 49.1% year/year to $345.59 mln vs the $269.43 mln Capital IQ Consensus.
  • Same-store sales grew 44% which is on top of 10% growth in the same period last year.
  • Co issues upside guidance for FY16, sees EPS of $0.86-0.90 vs. $0.83 Capital IQ Consensus Estimate, prior range $0.68-0.75.

6:53 am DTE Energy beats by $0.09, misses on revs; raises FY16 EPS guidance (DTE) :

  • Reports Q2 (Jun) earnings of $0.98 per share, $0.09 better than the Capital IQ Consensus of $0.89; revenues fell 0.3% year/year to $2.26 bln vs the $2.3 bln Capital IQ Consensus.
  • Co raises guidance for FY16, sees EPS of $4.91-5.19 (Prior $4.80-5.05) vs. $4.95 Capital IQ Consensus Estimate.

6:52 am Waters beats by $0.13, beats on revs (WAT) :

  • Reports Q2 (Jun) earnings of $1.58 per share, excluding non-recurring items, $0.13 better than the Capital IQ Consensus of $1.45; revenues rose 8.6% year/year to $537 mln vs the $523.18 mln Capital IQ Consensus.

6:51 am Capella Education beats by $0.09, reports revs in-line; guides Q3 revs above consensus; guides FY16 EPS in-line, revs above consensus (CPLA) :

  • Reports Q2 (Jun) earnings of $0.93 per share, $0.09 better than the Capital IQ Consensus of $0.84; revenues rose 2.0% year/year to $106.7 mln vs the $105.93 mln Capital IQ Consensus. 
    • Capella University total active enrollment increased 2.4 percent to 38,231 learners, new enrollment increased by 2.5 percent compared to second quarter 2015, and early cohort persistence improved by ~4 percent.
  • Capella University total active enrollment increased 2.4 percent to 38,231 learners, new enrollment increased by 2.5 percent compared to second quarter 2015, and early cohort persistence improved by ~4 percent.
  • Co issues upside guidance for Q3, sees Q3 revs +4.5-5.5% to ~$108.4-109.4 mln vs. $101.81 mln Capital IQ Consensus. Consolidated operating margin for continuing operations is anticipated to be ~10.5 to 11.5 percent of total revenue for the third quarter of 2016.
  • Co issues guidance for FY16, sees EPS of $3.30-3.40, excluding non-recurring items, vs. $3.33 Capital IQ Consensus Estimate; sees FY16 revs of $424-428 mln vs. $421.27 mln Capital IQ Consensus Estimate. Capella University new enrollment is expected to be slightly up year-over-year and total enrollment is expected to grow about 2.0 to 3.0 percent year-over-year.
  • "Capella University's performance year-to-date and expectations for the third quarter position us for better annual performance in 2016 than we anticipated at the beginning of the year," said Steve Polacek, senior vice president and chief financial officer. "We are in a strong financial position, diligently managing costs, and we believe we are well-positioned for long-term sustainable growth." 

6:51 am Axalta Coating Systems reports EPS in-line, revs in-line; reaffirms FY16 rev & EBITDA guidance (AXTA) :

  • Reports Q2 (Jun) earnings of $0.34 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.34; revenues fell 2.6% year/year to $1.07 bln vs the $1.07 bln Capital IQ Consensus. Adjusted EBITDA of $252.6 million for the second quarter compared with $255.5 million in Q2 2015.
  • Co issues reaffirms guidance for FY16, sees FY16 revs of flat sales YoY (cons -1% YoY) vs. $4.06 bln Capital IQ Consensus Estimate. Co reaffirms FY16 adjusted EBTIDA guidance of $900-940 mln; reaffirms CapEx of ~$150 mln.

6:50 am Waddell & Reed beats by $0.14, beats on revs (WDR) :

  • Reports Q2 (Jun) earnings of $0.59 per share, excluding non-recurring items, $0.14 better than the Capital IQ Consensus of $0.45; revenues fell 19.0% year/year to $319.2 mln vs the $313.31 mln Capital IQ Consensus.
  • As of June 30, 2016, assets under management declined 9% sequentially to $86 billion due mainly to outflows from our Institutional and unaffiliated distribution channels.
  • Management fees declined 3% sequentially, while average assets under management declined 5%.

6:49 am Potlatch beats by $0.06, beats on revs (PCH) :

  • Reports Q2 (Jun) earnings of $0.13 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $0.07; revenues rose 9.9% year/year to $141.5 mln vs the $135.32 mln Capital IQ Consensus.
  • "We expect seasonally higher harvest volumes and sawlog prices along with increased lumber shipments and prices to drive strong third quarter results".

6:41 am Flagstar Bancorp beats by $0.09 (FBC) :

  • Reports Q2 (Jun) earnings of $0.66 per share, $0.09 better than the Capital IQ Consensus of $0.57. 
  • Positive operating leverage, led by 11 percent rise in revenue versus 2 percent increase in expenses against prior quarter.
  • Net gain on loan sales rose $15 million, or 20 percent, on higher fallout-adjusted locks and wider gain on sale margin.
  • Lower nonperforming loans and consumer delinquencies on continuing strong credit performance.
  • Tier 1 leverage was 11.6 percent and remains strong at 8.6 percent when adjusted for TARP redemption.
  • "As we previously announced, we received regulatory approval to redeem our TARP preferred shares on June 23, 2016. Given the notice requirement prior to redemption, we will be redeeming these shares in full by the end of July. We've replaced this high-cost funding with senior notes and other bank-level sources of funds that cost, on average, only one-third of the TARP preferred on an after-tax basis. After this redemption, our regulatory capital remains strong on an adjusted basis as of June 30, 2016, with Tier 1 leverage at 8.59 percent and Common Equity Tier 1 at 12.17 percent."

6:40 am Anixter misses by $0.03, reports revs in-line, reaffirms FY16 rev guidance (AXE) :

  • Reports Q2 (Jun) earnings of $1.32 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus of $1.35; revenues rose 32.1% year/year to $1.96 bln vs the $1.94 bln Capital IQ Consensus.
    • Excluding the impact of the following items, organic sales decreased 0.6% year-over-year: $526.8 mln favorable impact from the acquisition of Power Solutions, $22.2 mln unfavorable impact from the lower average price of copper, & $16.5 mln unfavorable impact from the fluctuation in foreign currencies.
  • Excluding the impact of the following items, organic sales decreased 0.6% year-over-year: $526.8 mln favorable impact from the acquisition of Power Solutions, $22.2 mln unfavorable impact from the lower average price of copper, & $16.5 mln unfavorable impact from the fluctuation in foreign currencies.
  • The current quarter had 64 billing days, compared to 63 billing days in the year-ago quarter. Further excluding the favorable impact from one additional billing day, organic sales per day decreased 2.2% year-over-year.
  • Gross margin of 20.1% compares to 20.4% sequentially, with the decline primarily caused by segment and product mix.
    • The decrease versus prior year gross margin of 22.2% is due primarily to the Power Solutions acquisition.
  • The decrease versus prior year gross margin of 22.2% is due primarily to the Power Solutions acquisition.
  • Business Outlook:
    • "As we enter the second half of the year, our NSS segment continues to experience positive momentum in all regions except CALA, driven by strength in projects with global customers," commented Bob Eck. "While our EES segment continues to experience weakness related to industrial and manufacturing end market exposure, sales trends are improving in all regions except CALA. Our UPS segment continues to experience soft trends related to its exposure to oil and gas end markets in the US and Canada, combined with the timing impact of major capital projects. Reflecting diverging trends across our business and across the broad economy, as well as the uncertainty created by Brexit, we remain cautious regarding prospects for a recovery in the second half of 2016. Combining our more positive outlook in NSS with an improving outlook in our EES and UPS segments, we now expect full year 2016 sales growth between 20 to 24%. The acquisition will increase sales by 24 %, while currency and copper will each have a negative impact of 1%."
    • The co reaffirmed FY16 organic sales growth rate in the -2% to +2% range, compared to +2% Consensus.
  • "As we enter the second half of the year, our NSS segment continues to experience positive momentum in all regions except CALA, driven by strength in projects with global customers," commented Bob Eck. "While our EES segment continues to experience weakness related to industrial and manufacturing end market exposure, sales trends are improving in all regions except CALA. Our UPS segment continues to experience soft trends related to its exposure to oil and gas end markets in the US and Canada, combined with the timing impact of major capital projects. Reflecting diverging trends across our business and across the broad economy, as well as the uncertainty created by Brexit, we remain cautious regarding prospects for a recovery in the second half of 2016. Combining our more positive outlook in NSS with an improving outlook in our EES and UPS segments, we now expect full year 2016 sales growth between 20 to 24%. The acquisition will increase sales by 24 %, while currency and copper will each have a negative impact of 1%."
  • The co reaffirmed FY16 organic sales growth rate in the -2% to +2% range, compared to +2% Consensus.

6:35 am KeyCorp misses by $0.01, reports revs in-line (KEY) :

  • Reports Q2 (Jun) adj earnings of $0.27 per share, $0.01 worse than the Capital IQ Consensus of $0.28; revenues fell 0.1% year/year to $1.08 bln vs the $1.08 bln Capital IQ Consensus. 
  • Average loans up 5%, driven by 12% growth in commercial, financial and agricultural loans.
  • Net interest income up $14 million, as higher earning asset balances and yields were partially offset by lower reinvestment yields.
  • Co reported Q2 NIM of 2.76% versus 2.88% last year.

6:35 am Wolverine beats by $0.02, reports revs in-line; reaffirms FY16 EPS, revs guidance (WWW) :

Reports Q2 (Jun) earnings of $0.25 per share, $0.02 better than the Capital IQ Consensus of $0.23; revenues fell 7.4% year/year to $583.7 mln vs the $579.25 mln Capital IQ Consensus.

  • Co reaffirms guidance for FY16, sees EPS of $1.30-1.40 vs. $1.36 Capital IQ Consensus Estimate; sees FY16 revs of $2.475-2.575 bln vs. $2.54 bln Capital IQ Consensus Estimate; sees inventory levels being meaningfully lower than 2015 at year-end.
  • Reported gross margin was 38.8%, compared to 39.1% in the prior year. Gross margin on a constant currency basis was 39.8%, an increase of 70 basis points versus the prior year.
  • Inventory balances at the end of the quarter were 2.9% lower than the prior year.

6:34 am Graphic Packaging reports EPS in-line, revs in-line (GPK) :

  • Reports Q2 (Jun) earnings of $0.19 per share, in-line with the Capital IQ Consensus of $0.19; revenues rose 4.4% year/year to $1.1 bln vs the $1.1 bln Capital IQ Consensus.
  • Share repurchases were $37.0 million in Q2 and $82.0 million year-to-date through June 30th

6:32 am Eli Lilly beats by $0.01, beats on revs; reaffirms FY16 guidance (LLY) :

  • Reports Q2 (Jun) earnings of $0.86 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.85; revenues rose 8.6% year/year to $5.4 bln vs the $5.16 bln Capital IQ Consensus, driven by an 8 percent increase in volume, as realized prices and the impact of foreign exchange rates remained relatively flat, compared with the second quarter of 2015.
    • The increase in worldwide volume was driven by new pharmaceutical products, including Trulicity and Cyramza, as well as Humalog. Revenue in the U.S. increased 14 percent to $2.890 billion, primarily driven by increased volume for several pharmaceutical products, including Trulicity and Humalog, and to a lesser extent, higher realized prices, primarily for Cialis and Forteo, partially offset by lower realized prices for Humalog. Revenue outside the U.S. increased 3 percent to $2.515 billion, driven by increased volume for several pharmaceutical products, primarily Cyramza, Trulicity and Humalog, partially offset by the loss of exclusivity for Cymbalta in Europe in 2014.
    • Gross margin as a percent of revenue was 76.0 percent, a decline of 3.2 percentage points compared with the second quarter of 2015. The decline in gross margin percent was primarily due to a lower benefit from foreign exchange rates on international inventories sold.
  • The increase in worldwide volume was driven by new pharmaceutical products, including Trulicity and Cyramza, as well as Humalog. Revenue in the U.S. increased 14 percent to $2.890 billion, primarily driven by increased volume for several pharmaceutical products, including Trulicity and Humalog, and to a lesser extent, higher realized prices, primarily for Cialis and Forteo, partially offset by lower realized prices for Humalog. Revenue outside the U.S. increased 3 percent to $2.515 billion, driven by increased volume for several pharmaceutical products, primarily Cyramza, Trulicity and Humalog, partially offset by the loss of exclusivity for Cymbalta in Europe in 2014.
  • Gross margin as a percent of revenue was 76.0 percent, a decline of 3.2 percentage points compared with the second quarter of 2015. The decline in gross margin percent was primarily due to a lower benefit from foreign exchange rates on international inventories sold.
  • Co reaffirms guidance for FY16, sees EPS of $3.50-3.60, excluding non-recurring items, vs. $3.56 Capital IQ Consensus Estimate; sees FY16 revs of $20.6-21.1 bln vs. $20.92 bln Capital IQ Consensus; gross margin 76%; R&D $4.9-5.1 bln.

6:32 am Nielsen reports EPS in-line, revs in-line (NLSN) :

  • Reports Q2 (Jun) earnings of $0.71 per share, in-line with the Capital IQ Consensus of $0.71; revenues rose 2.4% year/year to $1.6 bln vs the $1.61 bln Capital IQ Consensus.
  • Cash flow from operations decreased to $210 million for the second quarter of 2016 from $253 million in the second quarter of 2015. Free cash flow for the second quarter of 2016 decreased to $98 million from $156 million in the second quarter of 2015, driven by working capital timing and the accelerated investments in our growth initiatives.
  • "The syndication of Digital Content Ratings for participating clients in May was a key milestone, and we remain on track for the syndication of Total Content Ratings for participating clients in the third quarter."

6:28 am Asbury Automotive reports EPS in-line, misses on revs (ABG) :

  • Reports Q2 (Jun) earnings of $1.65 per share, in-line with the Capital IQ Consensus of $1.65; revenues fell 3.7% year/year to $1.63 bln vs the $1.71 bln Capital IQ Consensus, principally attributable to strategic divestitures during the second half of 2015; total revenue on a same store basis was down 1% from the prior year period.
  • New vehicle revenue down 1%; gross profit down 5%. Used vehicle retail revenue down 4%; gross profit up 1%.
  • "Despite a challenging retail environment, our improved used margins, strong parts and service customer pay performance, and capital deployment enabled us to deliver 9% EPS growth."

6:27 am EverBank Financial misses by $0.04, misses on revs; discloses that it is in advanced negotiations to be acquired for $19.50/share (EVER) :

  • Reports Q2 (Jun) earnings of $0.32 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus of $0.36; revenues fell 22.2% year/year to $196.61 mln vs the $236.03 mln Capital IQ Consensus.
  • Total assets were $27.4 billion at June 30, 2016, an increase of $0.7 billion, or 3%, compared to the prior quarter and an increase of $3.2 billion, or 13%, year over year. Compared to the prior quarter, loans held for sale (:HFS) increased $348 million, or 31%, to $1.5 billion and loans HFI increased $463 million, or 2%, to $23.2 billion.
  • The Company also announced that as a result of an ongoing review of its strategic alternatives it is in advanced negotiations with a well-respected financial services company regarding a transaction in which EverBank Financial Corp would be acquired and EverBank Financial Corp's common stockholders would receive $19.50 per share in cash. In addition, the transaction contemplates that each share of EverBank Financial Corp's Series A Preferred Stock would receive cash in an amount equal to the liquidation preference plus accrued and unpaid dividends. EverBank Financial Corp further noted that it had entered into an agreement with the financial services company to negotiate exclusively with it regarding a transaction and such exclusivity agreement expires at 11:59 p.m. on August 8. In light of the foregoing, the Company will not conduct its previously scheduled conference call to discuss second quarter 2016 results.

6:20 am Comstock Mining exercises purchase commitment to acquire 98 acres of land and over 257 acre-feet of senior-priority water rights in Silver Springs, Nevada (LODE) : The property was acquired through a wholly-owned subsidiary called Comstock Industrial LLC. The acquisition and the first six months of interest was funded from a two-year loan of $3,250,000 to acquire the property, secured by a deed of trust on the property. The loan will be repaid through proceeds from sales of the land or water rights. The Company, along with Comstock Mining LLC and Comstock Real Estate Inc., also wholly-owned subsidiaries of the Company, provided guaranties for obligations relating to the property purchased.

6:17 am Helios & Matheson receives favorable decision from the Nasdaq hearings panel (HMNY) : The co announced that it has received written notification that the Nasdaq Hearings Panel has granted HMNY's request for continued listing on The Nasdaq Stock Market, subject to HMNY's fulfillment of certain conditions, with the final condition being that HMNY shall have publicly announced, on or before November 15, 2016, that it has closed its pending merger with Zone Technologies, Inc. and an equity financing, and as a result, has stockholders' equity above $2.5 million.

6:15 am Carlisle Cos beats by $0.12, misses on revs; reaffirms FY16 revs guidance (CSL) :

  • Reports Q2 (Jun) earnings of $1.75 per share, $0.12 better than the Capital IQ Consensus of $1.63; revenues rose 1.2% year/year to $996.9 mln vs the $1011.93 mln Capital IQ Consensus.
  • Segment Results for Second Quarter 2016
    • Carlisle Construction Materials (CCM): Net sales in the second quarter 2016 grew 0.8% to $582.5 million, reflecting higher net sales volume partially offset by lower selling price. Higher demand for commercial roofing membrane and insulation applications in the U.S. was partially offset by lower international net sales.
    • Carlisle Interconnect Technologies (CIT): Net sales in the second quarter 2016 grew 5.6% to $209.4 million, reflecting higher net sales volume and $2.4 million in net sales contribution from the acquisition of Micro-Coax, partially offset by lower selling price in the aerospace and medical markets. Net sales to the aerospace market increased 5%.
  • Carlisle Construction Materials (CCM): Net sales in the second quarter 2016 grew 0.8% to $582.5 million, reflecting higher net sales volume partially offset by lower selling price. Higher demand for commercial roofing membrane and insulation applications in the U.S. was partially offset by lower international net sales.
  • Carlisle Interconnect Technologies (CIT): Net sales in the second quarter 2016 grew 5.6% to $209.4 million, reflecting higher net sales volume and $2.4 million in net sales contribution from the acquisition of Micro-Coax, partially offset by lower selling price in the aerospace and medical markets. Net sales to the aerospace market increased 5%.
  • Co reaffirms guidance for FY16, sees FY16 revs of mid single digits growth vs. +6.5% YoY or $3.76 bln Capital IQ Consensus Estimate.

6:15 am Sensata Tech beats by $0.01, reports revs in-line; guides Q3 in-line; narrows FY16 guidance (ST) :

  • Reports Q2 (Jun) earnings of $0.73 per share, $0.01 better than the Capital IQ Consensus of $0.72; revenues rose 7.4% year/year to $827.5 mln vs the $823.78 mln Capital IQ Consensus. Excluding an 8.5 percent positive effect from acquisitions, net of exited businesses, and a 1.2 percent negative effect from changes in foreign exchange rates, Sensata reported flat organic revenue growth in the second quarter of 2016.
  • Co issues in-line guidance for Q3, sees EPS of $0.70-0.76, excluding non-recurring items, vs. $0.73 Capital IQ Consensus; sees Q3 revs of $770-810 mln vs. $796.58 mln Capital IQ Consensus Estimate.
  • Co issues in-line guidance for FY16, nwrrows EPS to $2.80-2.94 from $2.74-3.00, excluding non-recurring items, vs. $2.86 Capital IQ Consensus; narrows FY16 revs to $3.17-3.25 bln from $3.14-3.28 bln vs. $3.22 bln Capital IQ Consensus Estimate.

6:13 am Radware beats by $0.01, reports revs in-line (RDWR) :

  • Reports Q2 (Jun) earnings of $0.06 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.05; revenues fell 11.4% year/year to $49.6 mln vs the $49.46 mln Capital IQ Consensus. "Despite challenging market conditions this year, we have made solid progress this past quarter with our subscription booking and revenues."

6:10 am ICON plc reports EPS in-line, revs in-line; reaffirms FY16 EPS guidance, revs guidance (ICLR) :

  • Reports Q2 (Jun) earnings of $1.14 per share, in-line with the Capital IQ Consensus of $1.14; revenues rose 5.6% year/year to $410.6 mln vs the $409.98 mln Capital IQ Consensus. 
  • Record net business wins of $502 million, a net book to bill of 1.22.
  • Backlog of business grows 8.6% year on year to surpass $4 billion for the first time.
  • Co reaffirms guidance for FY16, sees EPS of $4.60-4.80, excluding non-recurring items, vs. $4.68 Capital IQ Consensus Estimate; sees FY16 revs of $1.665-1.680 bln vs. $1.67 bln Capital IQ Consensus Estimate.

6:09 am Provident Fincl beats by $0.06 (PROV) :

  • Reports Q4 (Jun) earnings of $0.34 per share, $0.06 better than the two analyst estimate of $0.28.
  • Net interest income decreased $88,000, or one percent, to $8.76 mln in the fourth quarter of fiscal 2016 from $8.85 mln for the same quarter of fiscal 2015, attributable to a lower average earning assets balance, partly offset by a slight increase in the net interest margin.

6:07 am Nord Anglia Education beats by $0.01, beats on revs; narrows FY16 EPS, rev and EBITDA guidance (NORD) :

  • Reports Q3 (May) earnings of $0.28 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.27; revenues rose 49.3% year/year to $253.8 mln vs the $246.27 mln Capital IQ Consensus.
  • Co issues in-line guidance for FY16, lowers top end of EPS to $0.64-0.65 from $0.64-0.67 vs. $0.65 Capital IQ Consensus Estimate; raises bottom end of FY16 revs to $850-855 mln from $845-855 mln vs. $850.36 mln Capital IQ Consensus Estimate.  Co narrowed FY16 EBITDA guidance to $206.5-208.5 mln vs $205-210 mln last year.
  • Adjusted EBITDA increased 39.9%, or $20.0 million, to $69.9 million (27.5% Adjusted EBITDA margin) in Q3 FY2016 from $49.9 million (29.4% Adjusted EBITDA margin) in Q3 FY2015 due to growth in FTEs, tuition fee increases and the impact of the acquisitions in Switzerland, China, the United States and Mexico in fiscal 2015.

6:07 am DuPont beats by $0.14, beats on revs; raises low end of FY16 EPS (DD) :

  • Reports Q2 (Jun) earnings of $1.24 per share, excluding non-recurring items, $0.14 better than the Capital IQ Consensus of $1.10; revenues fell 0.8% year/year to $7.06 bln vs the $6.98 bln Capital IQ Consensus, reflected 2-percent volume growth, due to Agriculture, Performance Materials and Nutrition & Health. Local price, currency and portfolio in aggregate negatively impacted sales by 3 percent, resulting in total sales declining 1 percent.
    • Agriculture sales reflected 3-percent volume growth, driven by higher corn seed and insecticide sales, partially offset by lower soybean volumes in North America. Volume growth was offset by negative impacts from currency and portfolio.
    • Total company gross margins expanded more than 100 basis points. Total segment operating margins increased about 250 basis points, as operating margins expanded in all reportable segments. 
  • Agriculture sales reflected 3-percent volume growth, driven by higher corn seed and insecticide sales, partially offset by lower soybean volumes in North America. Volume growth was offset by negative impacts from currency and portfolio.
  • Total company gross margins expanded more than 100 basis points. Total segment operating margins increased about 250 basis points, as operating margins expanded in all reportable segments. 
  • Co issues in-line guidance for FY16, raises EPS to $3.15-3.20 from $3.05-3.20, excluding non-recurring items, vs. $3.15 Capital IQ Consensus Estimate. 
  • "Solid execution enabled volume growth of 2 percent, and we expanded operating margins across all reportable segments. Cost savings, mix enrichment from new technologies and lower product costs contributed to the margin expansion. Continued progress on our cost savings program keeps us on track to reach $1 billion on a run-rate basis by year-end."
  • Merging with Dow (DOW).

6:04 am Hartford Financial to sell its U.K. property & casualty run-off subsidiaries to Catalina Holdings; transaction is not expected to result in a material gain or loss (HIG) :

The U.K. businesses have been largely in runoff since 1993. They primarily consist of U.S. asbestos and environmental liabilities, most of which was previously underwritten by Excess Insurance Company Limited, as well as U.K. asbestos liabilities.

  • At March 31, 2016, DLM and HFPI had total assets of ~$1 bln, undiscounted gross reserves of $686 mln, undiscounted reserves net of reinsurance of $516 mln and shareholders' equity of ~$321 mln, all stated on a U.S. GAAP basis.

5:57 am Shanghai...+1.14% (FXI) :  

5:57 am S&P futures vs fair value: -3.50. Nasdaq futures vs fair value: -8.10. :

5:57 am European Markets : FTSE...6725.78...+15.70...+0.20%.  DAX...10205.77...+7.50...+0.10%.

5:57 am Asian Markets : Nikkei...16383...-237.30...-1.40%.  Hang Seng...22130...+136.30...+0.60%.

5:07 am EXACT Sciences beats by $0.09, beats on revs; reaffirms and guides FY16 revs above consensus (EXAS) :

  • Reports Q2 (Jun) loss of $0.46 per share, $0.09 better than the Capital IQ Consensus of ($0.55); revenues rose 161.7% year/year to $21.2 mln vs the $18.5 mln Capital IQ Consensus.
    • The company completed approximately 54,000 Cologuard tests during the second quarter, an increase of approximately 160 percent compared to the 21,000 tests completed during the same period of 2015.
  • The company completed approximately 54,000 Cologuard tests during the second quarter, an increase of approximately 160 percent compared to the 21,000 tests completed during the same period of 2015.
  • Co reaffirms upside guidance for FY16, sees FY16 revs of $90-100 mln vs. $86.63 mln Capital IQ Consensus Estimate.
    • Co continues to anticipate completing more than 240,000 Cologuard tests during 2016
  • Co continues to anticipate completing more than 240,000 Cologuard tests during 2016

5:03 am Check Point Software beats by $0.02, reports revs in-line (CHKP) :

  • Reports Q2 (Jun) earnings of $1.09 per share, $0.02 better than the Capital IQ Consensus of $1.07; revenues rose 7.0% year/year to $422.8 mln vs the $421.57 mln Capital IQ Consensus.
    • Deferred Revenues: $892 million, representing a 14 percent increase year over year 
    • Software Blades Subscriptions Revenues: $93 million, representing a 21 percent increase year over year
  • Deferred Revenues: $892 million, representing a 14 percent increase year over year 
  • Software Blades Subscriptions Revenues: $93 million, representing a 21 percent increase year over year

4:58 am On The Wires (:WIRES) :

  • Epson (SEKEY) recommends Google Cast for Education as an easy way to share Chromebook screens wirelessly to BrightLink interactive projectors and PowerLite projectors.
  • PT Astra Honda Motor (HMC), Honda's joint venture company in Indonesia for motorcycle production and sales, announced the world premiere of the "CBR250RR," an all-new 250cc sports model motorcycle. The CBR250RR will be manufactured in its major market, Indonesia, making it the largest displacement Honda motorcycle to be manufactured in the country. Honda plans to begin sales of the all-new sports model in Indonesia by the end of 2016.
  • Vivendi (VIVHY) wishes to clarify that its CEO Arnaud de Puyfontaine, in a letter dated the 21st June, informed Mediaset (MDIUY) Management of significant differences in the analysis of its subsidiary's-Mediaset Premium- results, for which the two companies are currently in negotiations In addition the Group yesterday made a proposal to Mediaset to come to a new agreement, under different terms, so as to pursue discussions. Vivendi confirms its desire to build a major strategic alliance with Mediaset and Mediaset Premium.
  • Accenture (ACN) announced it will provide Her Majesty's Revenue & Customs with application services. In this role, Accenture will support HMRC to increase its use of digital technologies across HMRC's primary personal tax platform, the National Insurance and PAYE Service. Under the terms of the agreement, which runs through to June 2020, Accenture will develop, implement and maintain a secure cloud-hosted tax-management platform for individual taxpayers

4:31 am British Sky Broadcasting issues statement regarding BT/Openreach announcement (SKYAY) : Sky's CEO states: "Today's proposal to create a legally separate Openreach is a step in the right direction, although falls short of the full change that would have guaranteed the world-class broadband network customers expect and the UK will need.

In particular, leaving Openreach's budget in the hands of BT Group raises significant questions as to whether this will really lead to the fibre investment Britain requires"

3:42 am Unilever prices a dual-tranche $1.25 bln consisting of $550 mln 1.375% fixed rate notes due 2021, with a further $700 mln 2.0% fixed rate notes due 2026 (UN) :  

3:32 am Audiocodes reports EPS in-line, beats on revs; appoints new CFO (AUDC) :

  • Reports Q2 (Jun) earnings of $0.06 per share, in-line with the Capital IQ Consensus of $0.06; revenues rose 10.8% year/year to $35.9 mln vs the $35.38 mln Capital IQ Consensus.

Niran Baruch promoted to Chief Financial Officer

  • The Company also announced that it has promoted Niran Baruch from Chief Accounting Officer to Chief Financial Officer, effective July 26, 2016.
    • Baruch joined AudioCodes in 2005 initially as Director of Finance and then as Vice President of Finance.
  • Baruch joined AudioCodes in 2005 initially as Director of Finance and then as Vice President of Finance.

3:21 am Seadrill Partners reduces quarterly distribution to $0.10 per unit (from $0.25 per unit prior) (SDLP) :

  • The decision to reduce the distribution level reflects the increase in the extended standby rate period for the West Capricorn and the termination of the drilling contract for the West Capella.
  • Although available units are being bid on a number of opportunities and extension conversations continue, the Company believes this is a prudent move that will improve its liquidity position.
  • Despite some contract cancellations for which termination payments are being received, the Company still has an average contact term of 2.7 years, total contract backlog of $3.4 billion and 64% of its rigs on contract until 2018.
  • The Company continues to achieve high operational uptime on its operating units and has strong contract terms with creditworthy customers.

3:06 am BT Group makes governance changes to further increase independence for Openreach (BT) :

BT confirmed it has volunteered significant governance changes to further increase the independence and transparency of its local network business Openreach. It believes these unprecedented changes, elements of which have been welcomed by Ofcom, can form the basis for a fair, proportionate and sustainable regulatory settlement. They can also help Ofcom conclude its review and achieve its aims in a quicker timeframe. 

  • The changes will enable BT to focus on its plans to further improve the UK's digital infrastructure.
  • BT believes the re-organisation of Openreach addresses the concerns relating to governance set out by the Culture, Media and Sport select committee which last week requested that BT "allows Openreach much more autonomy over what it invests, when and where". The changes also meet all of the objectives Ofcom outlined for the strengthened independence of Openreach in February
  • An obligation for Openreach to serve all its customers equally will be included in the Articles of Association of BT plc. This will supplement the legal obligations set out in the current regulatory Undertakings and strengthen Openreach's purpose to serve all of its customers equally.
  • BT is calling on Ofcom to support these proposals as the best way forward for the country and as the foundation for the competition and investment in digital networks that the UK needs.

2:57 am On The Wires (:WIRES) :

  • Veolia (VEOEY) secured three contracts for the sustainable treatment of domestic and business recycling and waste from Westminster City Council. Veolia will provide a suite of sustainable solutions to help the Council reach its target of zero waste to landfill. The 3 contracts worth a total of 71 mln.
  • Eurofins (ERFSF) announced the acquisition of Agfirst Bay of Plenty, a fruit maturity testing laboratory in New Zealand. This transaction strengthens its footprint in food testing in New Zealand. Terms were not disclosed.
  • Ladbrokes (LDBKY) announced the CMA approved the merger with the Coral Group and can proceed subject to the sale of 350-400 shops. This is a significant step forward and co will now begin to talk in earnest to potential buyers for these shops. Co remains on track to complete the merger in the autumn.

2:55 am SABMiller plc: Anheuser-Busch InBev (BUD) revises offer to GBP 45/share in cash (from GBP 44/share prior) (SBMRY) :

Anheuser-Busch InBev (BUD) has decided to announce the following revised and final terms of its offer to acquire the entire issued and to be issued share capital of SABMiller (SBMRY).

  • Pursuant to the revised and final terms of the Transaction, each SABMiller Shareholder will now be entitled to receive:
    • For each SABMiller Share: 45.00 in cash
    • The revised Cash Consideration represents an increase of 1.00 per SABMiller Share over the 44.00 Cash Consideration set out in the 11 Nov 11, 2015 Announcement.
  • For each SABMiller Share: 45.00 in cash
  • The revised Cash Consideration represents an increase of 1.00 per SABMiller Share over the 44.00 Cash Consideration set out in the 11 Nov 11, 2015 Announcement.

2:33 am On The Wires (:WIRES) :

  • JA Solar Holdings Co (JASO) announced that as of middle of July this year, the company's shipments of monocrystalline PV products over the last ten years had totaled 7GW.
  • Technip (TKPPY) has been awarded a key contract by Repsol Sinopec Resources UK Limited (REPYY / SNP jv)  for Inspection, Repair and Maintenance works on its North Sea subsea infrastructure. The frame agreement with Repsol Sinopec Resources UK will see Technip provide diving support and IRM services for 2016, with possible extension to include 2017 and 2018.
  • TomTom (TMOAY) Telematics announced a collaboration with Sage cloud accounting software. By combining TomTom WEBFLEET and Sage Live, the collaboration will deliver real-time accounting for companies with fleets of vehicles.
  • SEGRO plc (SEGXF) appointed Soumen Das as its Chief Financial Officer. Mr Das is currently the Managing Director & Chief Financial Officer of Capital & Counties Properties (CRPCY). He is expected to join the Company and the Board in the new year and will succeed Justin Read who will retire at the end of 2016.

2:13 am BE Aerospace beats by $0.02, beats on revs; guides FY16 EPS in-line, revs above consensus; guides FY17 EPS in-line (BEAV) :

  • Reports Q2 (Jun) earnings of $0.84 per share, $0.02 better than the Capital IQ Consensus of $0.82; revenues rose 7.5% year/year to $753.1 mln vs the $713.38 mln Capital IQ Consensus.
  • Co issues guidance for FY16, sees EPS of ~$3.25 vs. $3.26 Capital IQ Consensus Estimate and compared to prior guidance of $3.20-3.25; sees FY16 revs of +5% YoY to ~$2.87 bln vs. $2.83 bln Capital IQ Consensus Estimate and compared to prior guidance of +4% YoY to ~$2.84 bln.
  • Co issues in-line guidance for FY17, sees EPS of sees growth in the low teens vs. $3.69 (implies 13.5% growth assuming FY16 EPS at $3.25) Capital IQ Consensus Estimate.

1:53 am On The Wires (:WIRES) :

  • Polaris Industries (PII) is issuing a stop-ride/stop-sale advisory, pending a formal recall, for MY2016 RZR Turbo off-road vehicles, due to a potential fire hazard. Polaris is currently evaluating a comprehensive repair solution. Once validated, repair instructions will be issued to Polaris dealers and vehicle owners will be notified that they can contact their dealer about scheduling a free repair.
  • AMD (AMD) announced that its engine is becoming open source, giving developers access to the source code. As part of GPUOpen, Radeon ProRender enables creators to bring ideas to life through applications and workflows enhanced by photorealistic rendering. Co also unveiled the new Radeon Pro WX Series of professional graphics cards.

1:51 am FibroGen and Astellas (ALPMY) treat first patient in its Phase 3 trials of roxadustat in Japan (FGEN) :

Astellas Pharma (ALPMY) and FibroGen (FGEN) announced the dosing of the first patient in Phase 3 trials in Japan of roxadustat for treatment of anemia in chronic kidney disease, which triggered a $10 million milestone payment from Astellas to FibroGen.

  • The initiation of Phase 3 studies in Japan follows the positive results from two Phase 2 studies in Japan of roxadustat in CKD patients on dialysis and in CKD patients not on dialysis.
  • In the Phase 2 studies in Japan of CKD patients receiving dialysis and not receiving dialysis, roxadustat was well tolerated and met the primary objective of demonstrating dose-related rates of hemoglobin increase measured over the first six weeks of treatment, as well as anemia correction and Hb maintenance over the 24-week treatment period.

1:49 am Euronet beats by $0.07, beats on revs; guides Q3 EPS above consensus (EEFT) :

  • Reports Q2 (Jun) earnings of $0.97 per share, $0.07 better than the Capital IQ Consensus of $0.90; revenues rose 12.2% year/year to $476.9 mln vs the $470.89 mln Capital IQ Consensus.
    • Transactions of 793 million, an 8% increase from 734 million.
  • Transactions of 793 million, an 8% increase from 734 million.
  • Co issues upside guidance for Q3, sees EPS of ~$1.34 vs. $1.22 Capital IQ Consensus Estimate 
    • Guidance assumes foreign currency exchange rates remain stable through the end of the quarter
  • Guidance assumes foreign currency exchange rates remain stable through the end of the quarter