4:54 pm LCA Vision announces ISS and Glass, Lewis recommend stockholders vote in favor of $5.37 per share cash acquisition by PhotoMedex (PHMD) (LCAV) : Co announced that two leading proxy advisory firms, ISS Proxy Advisory Services and Glass, Lewis & Co., has each issued a recommendation that LCA-Vision Inc. stockholders vote in favor of all proposals related to its acquisition by PhotoMedex, Inc. for $5.37 per share in cash at its Special Meeting of Stockholders scheduled to be held on May 7, 2014.
4:53 pm Quest Diagnostics extends partnership with Steward Health Care System (DGX) : Co and Steward Health Care System LLC (Steward), New England's largest community-based accountable care organization and one of the nation's largest Pioneer ACOs, today announced that Quest has acquired the remainder of Steward's outreach laboratory service operations. Under the arrangement, Quest will provide outreach laboratory testing services to physicians, nursing homes and other providers previously serviced by Steward.
4:52 pm SunCoke Energy Partners has commenced an offering of 2,800,000 of its common units (SXCP) : SXCP intends to use a portion of the proceeds received from this offering to fund the cash consideration to be paid in connection with its acquisition interest in each of its Haverhill and Middletown cokemaking facilities and to repay certain debt assumed from its sponsor, SunCoke Energy, Inc. (SXC), as part of this acquisition.
Barclays Capital Inc., BofA Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., Wells Fargo Securities, LLC, Goldman, Sachs & Co. and J.P. Morgan Securities LLC are serving as joint book-running managers for the proposed offering.
4:52 pm Yingli Green Energy announces proposed follow-on public offering of 25 mln ADSs (YGE) :
- Co announced that it intends to offer, subject to market and other conditions, 25 million American Depositary Shares, each representing one ordinary share of the Company, in an underwritten registered public offering. Yingli Green Energy intends to grant the underwriters an option to purchase up to 3.75 million additional ADSs to cover over-allotment.
- Yingli Green Energy intends to use approximately 50% to 60% of the net proceeds from this offering for downstream expansion and use the remaining portion of the net proceeds for other general corporate purpose. The Company's management will have significant discretion in the allocation of the net proceeds that the Company may receive from the offering.
- Deutsche Bank Securities Inc. and Goldman Sachs (Asia) L.L.C. are acting as the joint bookrunners for the offering. HSBC Securities (USA) Inc. is acting as a co-manager for the offering.
4:50 pm CVB Financial beats by $0.05 (CVBF) : Reports Q1 (Mar) earnings of $0.27 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.22.
4:49 pm Acceleron Pharma and Celgene (CELG) announce interim clinical data for sotatercept demonstrating dose dependent increases in hemoglobin in patients with end stage renal disease on hemodialysis (XLRN) :
- The phase 2a clinical trial of sotatercept is designed as a randomized, placebo-controlled, dose escalation study to evaluate sotatercept for the correction of anemia in patients with end stage renal disease on hemodialysis. There are four sotatercept dose groups (0.3 mg/kg, 0.5 mg/kg, 0.7 mg/kg, or 0.7 mg/kg loading dose followed by 0.4 mg/kg).
- Highlights of the data from the two lowest dose level cohorts (0.3 mg/kg and 0.5 mg/kg) are summarized below:
- Hemoglobin increase =1.0 g/dL was achieved by 20%, 37% and 40% of patients in the placebo, sotatercept 0.3 mg/kg and sotatercept 0.5 mg/kg cohorts, respectively, in the first 28-day cycle following a single dose.
- The mean peak hemoglobin increase in the first 28-day dose cycle was 0.1 g/dL, 0.5 g/dL and 0.8 g/dL in patients in the placebo, sotatercept 0.3 mg/kg and sotatercept 0.5 mg/kg cohorts, respectively.
- Rescue therapy with erythropoietin, if hemoglobin levels fell to less than 9 g/dL, was required in 40% of placebo patients, 13% of patients at sotatercept 0.3 mg/kg, and 0% of patients at sotatercept 0.5 mg/kg.
4:42 pm Blackhawk Network reports EPS in-line, misses on revs (HAWK) : Reports Q1 (Mar) earnings of $0.05 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate consensus of $0.05; revenues rose 25.9% year/year to $233.1 mln vs the $237.99 mln consensus.
- "We started 2014 with solid growth in revenues and earnings. Each of our key adjusted financial metrics grew at least 25% driven by strong sales of open loop gift cards in the U.S., robust increases in international load value, and the addition of InteliSpend, the incentives and rewards business we acquired in late 2013. Worldwide load value grew 36%, or 23% excluding acquisitions, and international accounted for 24% of worldwide load value during the first quarter."
4:42 pm Kaiser Alum beats by $0.03, beats on revs; reaffirms 2014 outlook (KALU) : Reports Q1 (Mar) earnings of $0.85 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.82; revenues fell 0.6% year/year to $335 mln vs the $323.91 mln consensus.
- "Overall, our outlook for 2014 remains unchanged. We continue to anticipate the supply chain inventory overhang for aerospace plate will persist throughout 2014. While we expect modest improvement in our plate shipments this year compared to 2013, we will also continue to be impacted by pricing pressure on these products. As demonstrated in our first quarter results, we expect further increases in automotive extrusion shipments and value added revenue as new programs launch throughout the year. In addition, we anticipate improving cost efficiencies as we progress through the year as we benefit from our Phase 5 heat treat plate expansion and the new casting complex."
- 'Looking beyond 2014 we remain very positive and anticipate continued long-term growth in our overall value added revenue and adjusted EBITDA margin driven by strong demand for aerospace and automotive applications and an improving underlying cost structure."
4:42 pm Apple beats by $1.45, beats on revs on upside iPhone shipments; guides Q3 revs, gross margin in-line; raises dividend 8% (plans to do so annually), raises buyback 50% to $90 bln, announced 7:1 stock split (AAPL) : Reports Q2 (Mar) earnings of $11.62 per share, $1.45 better than the Capital IQ Consensus Estimate of $10.17; revenues rose 4.7% year/year to $45.65 bln vs the $43.59 bln consensus; gross margins of 39.3% vs. Street expectations near 37.5% (guidance 37-38%)... Buybacks added $0.81/share to EPS -- analyst models include buybacks).
- Co issues in-line guidance for Q3, sees Q3 revs of $36-38 bln vs. $37.79 bln Capital IQ Consensus; sees Q3 gross margins of 37-38% versus Street expectations of just under 37.5%.
- iPhone shipments 43.7 mln vs. ~38 mln estimates
- iPad 16.4 mln vs. 19 mln est
- Mac 4.13 mln vs. 4 mln est
- Co announced that its Board of Directors has authorized another significant increase to the Company's program to return capital to shareholders. The co expects to utilize a total of over $130 billion of cash under the expanded program by the end of calendar 2015.
- As part of the program, the Board has increased its share repurchase authorization to $90 bln from the $60 bln level announced last year. The Company expects to continue to utilize about $1 billion annually to net-share-settle vesting restricted stock units.
- Co raises quarterly dividend 8% to $3.29 per common share, payable on May 15, 2014 to shareholders of record as of the close of business on May 12, 2014.
- The co also plans to increase its dividend on an annual basis. With annual payments of $11 billion, Apple is among the largest dividend payers in the world.
- Co also announced a 7:1 stock split.
4:38 pm Allegiant Travel beats by $0.08, reports revs in-line (ALGT) : Reports Q1 (Mar) earnings of $1.86 per share, $0.08 better than the Capital IQ Consensus Estimate of $1.78; revenues rose 10.8% year/year to $302.5 mln vs the $301.54 mln consensus.
- Estimated PRASM year-over-year change 9-10% for April
- Estimated TRASM year-over-year change 6-7% for April
- Estimated PRASM year-over-year change 2-4% for Q2
- Estimated TRASM year-over-year change 0.5-2.5% for Q2
- System: ASM YoY growth 7-9%
- Scheduled: ASM YoY growth 7-9%
4:38 pm F.N.B. Corp reports EPS in-line (FNB) : Reports Q1 (Mar) earnings of $0.20 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.20.
4:38 pm Susquehanna Bank misses by $0.01 (SUSQ) : Reports Q1 (Mar) earnings of $0.20 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.21. Net interest margin increased 1 basis point to 3.61% for the first quarter of 2014 compared to 3.60% for the fourth quarter of 2013.
4:37 pm Texas Instruments clarification: Q2 GAAP EPS guidance of $0.55-0.63 was above the $0.52 GAAP Capital IQ Consensus Estimate (TXN) : We earlier incorrectly compared the guidance to a non-GAAP estimate. The prior comment has been edited.
4:36 pm Churchill Downs misses by $0.05, reports revs in-line (CHDN) : Reports Q1 (Mar) loss of $0.04 per share, $0.05 worse than the Capital IQ Consensus Estimate of $0.01; revenues rose 13.1% year/year to $167.3 mln vs the $167.31 mln consensus.
- Oxford, MVG operations help drive 24 percent increase in Gaming Adjusted EBITDA
- TwinSpires wagering grows 8.8%, outpacing U.S. industry by 10.9%
4:35 pm Apple also announces 7-for-1 stock split (AAPL) : The Board of Directors has also announced a seven-for-one stock split. Each Apple shareholder of record at the close of business on June 2, 2014 will receive six additional shares for every share held on the record date, and trading will begin on a split-adjusted basis on June 9, 2014.
4:35 pm Core Labs misses by $0.11, misses on revs (CLB) : Reports Q1 (Mar) earnings of $1.35 per share, $0.11 worse than the Capital IQ Consensus Estimate of $1.46; revenues rose 0.8% year/year to $262.9 mln vs the $283.02 mln consensus.
4:33 pm CoStar Group beats by $0.05, beats on revs; guides Q2 EPS in-line, revs above consensus; guides FY14 EPS above consensus, revs above consensus (CSGP) : Reports Q1 (Mar) earnings of $0.69 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.64; revenues rose 14.5% year/year to $119.1 mln vs the $117.41 mln consensus.
- Co issues guidance for Q2, sees EPS of $0.69-0.73 vs. $0.71 Capital IQ Consensus Estimate; sees Q2 revs of $143-145 mln vs. $121.63 mln Capital IQ Consensus Estimate.
- Co issues upside guidance for FY14, sees EPS of $3.05-3.15 vs. $3.01 Capital IQ Consensus Estimate; sees FY14 revs of $560-570 mln vs. $496.73 mln Capital IQ Consensus Estimate.
- The Company is raising its 2014 revenue and earnings guidance based on first quarter results and the acquisition of Apartments.com
4:32 pm MKS Instruments beats by $0.10, beats on revs; guides Q2 EPS below consensus, revs below consensus (MKSI) : Reports Q1 (Mar) earnings of $0.51 per share, $0.10 better than the Capital IQ Consensus Estimate of $0.41; revenues rose 45.1% year/year to $206 mln vs the $197.91 mln consensus.
Guidance: Co issues downside guidance for Q2, sees EPS of $0.21-$0.35 vs. $0.39 Capital IQ Consensus Estimate; sees Q2 revs of $160-$180 mln vs. $192.11 mln Capital IQ Consensus Estimate.
4:32 pm LPL Financial misses by $0.03, misses on revs; Record-setting quarter with $4.4 bln in net new advisory assets (LPLA) : Reports Q1 (Mar) earnings of $0.69 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus Estimate of $0.72; revenues rose 11.6% year/year to $1.09 bln vs the $1.11 bln consensus.
4:32 pm Texas Instruments beats by $0.03, reports revs in-line; guides Q2 EPS above consensus, revs in-line (TXN) : Reports Q1 (Mar) earnings of $0.44 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.41; revenues rose 3.4% year/year to $2.98 bln vs the $2.96 bln consensus.
Co issues mixed guidance for Q2, sees EPS of $0.55-0.63 vs. $0.52 Capital IQ Consensus Estimate; sees Q2 revs of $3.14-3.40 bln vs. $3.15 bln Capital IQ Consensus Estimate.
4:31 pm Tennant increases quarterly dividend by 11% to $0.20 per share from $0.18 per share (TNC) :
4:31 pm Apple Expands Capital Return Program to Over $130 Billion; increases dividend and buyback (AAPL) :
- Co announced that its Board of Directors has authorized another significant increase to the Company's program to return capital to shareholders. The Company expects to utilize a total of over $130 billion of cash under the expanded program by the end of calendar 2015.
- As part of the program, the Board has increased its share repurchase authorization to $90 billion from the $60 billion level announced last year.
- The Company expects to continue to utilize about $1 billion annually to net-share-settle vesting restricted stock units.
- Additionally, the Board has approved an increase to the Company's quarterly dividend of approximately 8 percent and has declared a dividend of $3.29 per common share, payable on May 15, 2014 to shareholders of record as of the close of business on May 12, 2014.
- The Company also plans to increase its dividend on an annual basis. With annual payments of $11 billion, Apple is among the largest dividend payers in the world.
4:31 pm Service Corp beats by $0.02, misses on revs (SCI) : Reports Q1 (Mar) earnings of $0.28 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.26; revenues rose 14.5% year/year to $747.12 mln vs the $772.62 mln consensus.
"Looking ahead to the remainder of 2014, our outlook remains positive and we are comfortable with the upper end of our financial guidance ranges for earnings and cash flow that we have previously communicated." Co previously guided for FY14 EPS of $1.00-1.10, current Capital IQ Consensus Estimate is $1.04.
4:29 pm Parametric Sound announces ~ $45 mln common stock offering (HEAR) :
- Co announced that it intends to offer and sell approximately $45 million of its common stock in an underwritten public offering. Co intends to use the net proceeds from this offering to repay certain indebtedness and for working capital and other general corporate purposes.
- Needham & Company, LLC is acting as the sole book-running manager, Cowen and Company, LLC and Wedbush Securities Inc. are acting as co-lead managers, and Lake Street Capital Markets is acting as co-manager for the offering.
4:28 pm Selective Insurance misses by $0.10, beats on revs (SIGI) : Reports Q1 (Mar) earnings of $0.23 per share, excluding non-recurring items, $0.10 worse than the Capital IQ Consensus Estimate of $0.33; revenues rose 10.7% year/year to $509.1 mln vs the $493.53 mln consensus.
In 2014, Selective expects to generate a full-year statutory combined ratio of 92%, excluding catastrophes losses and no expectation of any additional prior year casualty reserve development. Selective estimates four points of catastrophe losses. After-tax investment income will be ~$100 million and weighted average shares at year end are anticipated to be ~57 million.
4:27 pm SL Green Rlty beats by $0.17, beats on revs; guides FY14 FFO above consensus (SLG) : Reports Q1 (Mar) funds from operations of $1.54 per share, excluding non-recurring items, $0.17 better than the Capital IQ Consensus Estimate of $1.37; revenues rose 5.9% year/year to $381.1 mln vs the $326.77 mln consensus. Co issues upside guidance for FY14, sees FFO of $5.90-5.96, excluding non-recurring items, vs. $5.71 Capital IQ Consensus Estimate.
4:26 pm E*TRADE beats by $0.10, beats on revs (ETFC) : Reports Q1 (Mar) earnings of $0.33 per share, $0.10 better than the Capital IQ Consensus Estimate of $0.23; revenues rose 13.1% year/year to $475 mln vs the $459.02 mln consensus.
- Company's income tax expense included approx $7 mln of benefit related to a recent change to the New York state tax code and its impact on state deferred taxes.
- Positive investor sentiment elevated brokerage activity to its highest level in nearly five years, which aided record net new brokerage assets and brokerage account retention
- Reported DARTs of 198,000 during the quarter, an increase of 24 percent from the prior quarter and an increase of 33 percent vs the same quarter year ago
- Company ended quarter with 3.1 million brokerage accounts, an increase of 72,000 from the prior quarter. This compared with 22,000 net new brokerage accounts in the fourth quarter of 2013 and 30,000 in the first quarter of 2013.
- Brokerage account attrition for the quarter was a record low for Company at 7.1 percent annualized
4:25 pm Ferro beats by $0.04, misses on revs; raises FY14 EPS in-line; reaffirms FY15 EPS guidance (FOE) : Reports Q1 (Mar) earnings of $0.19 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.15; revenues fell 6.2% year/year to $391.7 mln vs the $407.52 mln consensus.
- Co issues in-line guidance for FY14, raises EPS to $0.68-0.73 from prior guidance of $0.65-0.70, excluding non-recurring items, vs. $0.71 Capital IQ Consensus Estimate.
- Co reaffirms guidance for FY15, sees EPS of $1.00, excluding non-recurring items, vs. $1.01 Capital IQ Consensus Estimate.
- Gross profit was $89 million for the quarter, compared with $79 million for the first quarter of 2013. Excluding special charges, adjusted gross profit was $89 million (23.6% of value-added sales) compared with $80 million (20.8% of value-added sales) in the prior-year period.
- Outlook: Value-added sales for 2014 are expected to increase by 3.6% over 2013 levels, as adjusted for dispositions in 2013 ($27 million impact) and continued deselection of phthalates in the Polymer Additives segment (approximately $30 million impact). The 2014 adjusted gross profit margin, expressed as a percent of value-added sales, is expected to be approximately 22%, and SG&A expenses, excluding pension adjustments and special items, are expected to be approximately 14% of value-added sales. The Company expects to use approximately $25 million in cash in 2014. Uses of cash will include ongoing funding of restructuring efforts and capital spending of approximately $65 million, with the largest commitment of capital associated with the previously announced investment in manufacturing capacity in Belgium for dibenzoates, a phthalate replacement.
4:25 pm Aspen Insurance beats by $0.50; reaffirms ROE guidance (AHL) : Reports Q1 (Mar) earnings of $1.55 per share, excluding non-recurring items, $0.50 better than the Capital IQ Consensus Estimate of $1.05.
- Diluted book value per share of $42.72 at March 31, 2014, up 4.4% from December 31, 2013 and up 5.0% from March 31, 2013
- Aspen continues to expect to achieve an operating return on equity of 10% in 2014, assuming a pre-tax catastrophe load of $185 million, normal loss experience and the current interest rate curve and insurance pricing environment.
- "We expect operating return on equity to increase in each of 2015 and 2016. The building blocks for the expected acceleration of ROE are growth in our U.S. Insurance business, portfolio optimization initiatives, rising interest rates and capital management. We expect to achieve premium scale in our U.S. Insurance business in 2015 and for that business to be a strong contributor to overall results as Aspen gains greater premium leverage over time. Our U.S. Insurance business net earned premiums grew 25% in the first quarter over a year ago and we are experiencing continued growth momentum with attractive loss ratios. Further, we expect our portfolio optimization initiatives, including the restructuring of our reinsurance and retrocession program, combined with a rising interest rate environment, to be a more positive contributor to operating income."
4:25 pm Assurant beats by $0.14, beats on revs (AIZ) : Reports Q1 (Mar) earnings of $1.68 per share, $0.14 better than the Capital IQ Consensus Estimate of $1.54; revenues rose 13.9% year/year to $2.45 bln vs the $2.35 bln consensus.
- Metrics: Book value per diluted share, excluding AOCI, increased 2.6% to $61.05 at March 31, 2014 from $59.48 at Dec. 31, 2013. Annualized operating return on average equity (:ROE), excluding AOCI, was 11.2% for the quarter compared to full-year operating ROE, excluding AOCI, of 10.6% in 2013.
- Outlook: For 2014, co sees Assurant Solutions' net earned premiums and fees to increase compared to 2013, primarily driven by growth in mobile. Net operating income to increase due to higher contributions from mobile, improved international results and savings from previous expense management actions. Sees Assurant Specialty Property's net earned premiums and fees to remain level with 2013. Sees Assurant Health's net earned premiums and fees to increase compared to 2013 due to sales of new individual major medical policies under the ACA.
4:25 pm Allied World Assurance beats by $1.67, beats on revs (AWH) : Reports Q1 (Mar) earnings of $3.84 per share, $1.67 better than the Capital IQ Consensus Estimate of $2.17; net premiums written rose 11.0% year/year to $771.61 mln vs the $753.5 mln consensus.
- The company repurchased 670,732 common shares totaling $68.7 million during the first quarter of 2014
- The combined ratio was 79.9% compared to 85.1% in the first quarter of 2013
- The loss and loss expense ratio was 51.9% in the first quarter of 2014 compared to 55.1% in the prior year quarter
- The company did not experience any reportable catastrophe losses for the first quarter of 2014 or the comparable quarter last year
- The company's expense ratio was 28.0% for the first quarter of 2014 compared to 30.0% for the first quarter of 2013
4:24 pm Clearwater Paper misses by $0.20, beats on revs (CLW) : Reports Q1 (Mar) earnings of $0.66 per share, excluding non-recurring items, $0.20 worse than the Capital IQ Consensus Estimate of $0.86; revenues rose 5.2% year/year to $484.9 mln vs the $473.19 mln consensus.
- "The Pulp and Paperboard division delivered another solid quarter for Clearwater Paper," said president and chief executive officer Linda Massman. "With the Consumer Products division, we saw a highly-competitive tissue market and cold-weather related costs negatively impact the business. Moving forward, we are focused on continuing to build strong customer relationships and take important steps to bring efficiencies to every part of our operation."
4:24 pm Equifax beats by $0.02, reports revs in-line; guides Q2 EPS in-line, revs in-line (EFX) : Reports Q1 (Mar) earnings of $0.89 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.87; revenues rose 3.2% year/year to $584.5 mln vs the $584.12 mln consensus.
- Co issues in-line guidance for Q2, sees EPS of $0.92-0.95 vs. $0.95 Capital IQ Consensus Estimate; sees Q2 revs of $606-619 mln vs. $614.44 mln Capital IQ Consensus Estimate.
- "Our performance this quarter was solid and very much in line with our expectations. We continue to make good progress on integrating the recent acquisitions and leveraging our strategic growth initiatives to drive core non-mortgage market organic growth," said Richard F. Smith, Chairman and Chief Executive Officer of Equifax. "So far, the mortgage market has performed just about how we expected and we are becoming even more confident about the growth environment for the second half of 2014 and 2015."
4:24 pm Xilinx misses by $0.02, reports revs in-line; guides Q1 revs in-line (XLNX) : Reports Q4 (Mar) earnings of $0.53 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.55; revenues rose 16.1% year/year to $617.8 mln vs the $612.12 mln consensus.
Co issues in-line guidance for Q1, sees Q1 revs "up 0% to 4% sequentially" (roughly $618-642 mln) vs. $638.83 mln Capital IQ Consensus Estimate.
4:22 pm Lam Research beats by $0.10, reports revs in-line; guides Q4 above consensus (LRCX) : Reports Q3 (Mar) non-GAAP earnings of $1.26 per share, $0.10 better than the Capital IQ Consensus Estimate of $1.16; revenues rose 38.7% year/year to $1.23 bln vs the $1.22 bln consensus.
Co issues upside guidance for Q4, sees EPS of $1.14-1.28 bln, excluding non-recurring items, vs. $1.09 Capital IQ Consensus Estimate; sees Q4 revs of $1.235-1.245 bln vs. $1.16 bln Capital IQ Consensus Estimate.
"We began 2014 by delivering another solid quarter with record shipments, record revenue, sequential operating margin expansion and very strong free cash flow," stated Martin Anstice, Lam Research's president and chief executive officer. "The consistency of our results reinforces the potential to deliver sustained outperformance through solid execution of our growth strategy. We believe that our product portfolio combined with the scale of our new technology offerings create a unique opportunity for Lam through the multi-patterning, 3D device and advanced packaging industry transitions. Together this combination of capability and opportunity underscores our commitment to deliver growth and value for our customers and our shareholders alike."
4:22 pm Quidel misses by $0.35, misses on revs (QDEL) : Reports Q1 (Mar) earnings of $0.08 per share, $0.35 worse than the Capital IQ Consensus Estimate of $0.43; revenues fell 24.7% year/year to $46.7 mln vs the $63.26 mln consensus.
4:21 pm Infinera beats by $0.04, beats on revs (INFN) : Reports Q1 (Mar) earnings of $0.03 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of ($0.01); revenues rose 14.6% year/year to $142.82 mln vs the $140.46 mln consensus.
"Our first quarter performance was exceptionally strong in what is typically a soft quarter for our industry. We are benefitting from the continued investment cycle in 100G and network convergence. The favorable economics of our PIC-based architectures and the operational benefits of super-channels positions us as the industry recognized leader in the optical market," said Tom Fallon, Chief Executive Officer. "I remain optimistic about our short-, intermediate- and long-term opportunity. Our focus this year remains on winning footprint, gaining market share, and servicing customers. We believe the continued growth of our business in long-haul, combined with product investments in adjacent markets, is the best way for us to provide long-term shareholder value."
4:21 pm Glimcher Realty misses by $0.01, misses on revs; guides FY14 FFO in-line (GRT) : Reports Q1 (Mar) funds from operations of $0.16 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.17; revenues rose 8.2% year/year to $93.2 mln vs the $96.37 mln consensus. Co issues in-line guidance for FY14, sees FFO of $0.74-0.78 vs. $0.77 Capital IQ Consensus Estimate.
4:20 pm Polycom beats by $0.03, reports revs in-line (PLCM) : Reports Q1 (Mar) earnings of $0.18 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.15; revenues fell 3.0% year/year to $328.5 mln vs the $328.48 mln consensus.
4:20 pm Citrix Systems beats by $0.05, beats on revs; guides Q2 EPS below consensus, revs below consensus; raises bottom end of FY14 EPS & revs in line with estimates (CTXS) : Reports Q1 (Mar) earnings of $0.64 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.59; revenues rose 11.6% year/year to $750.8 mln vs the $732.25 mln consensus.
- Co issues downside guidance for Q2, sees EPS of $0.57-0.59, excluding non-recurring items, vs. $0.67 Capital IQ Consensus Estimate; sees Q2 revs of $765-775 mln vs. $784.52 mln Capital IQ Consensus Estimate.
- Co issues in-line guidance for FY14, raises bottom end of EPS to $2.90-2.95 from prior guidance of $2.85-2.95, excluding non-recurring items, vs. $2.91 Capital IQ Consensus Estimate; raises bottom end of FY14 revs to +8.5-10.0% from prior guidance of +8-10% calc to ~$3.166-3.210 bln vs. $3.18 bln Capital IQ Consensus Estimate.
- In addition to quarterly financial results, Citrix also announced that its Board of Directors has authorized it to repurchase up to an additional $1.5 billion of its common stock. As of March 31, 2014, approximately $429 million remained for repurchases from previous authorizations. GAAP gross margin was 82 percent, and non-GAAP gross margin was 85 percent, excluding the effects of amortization of acquired product related intangible assets and stock-based compensation expense. "I'm pleased with our performance in Q1, and the strong start to the year...We saw growth in all our geographic markets, while delivering record cash flow from operations. Our results were driven by balanced growth across all three of our primary businesses: mobile and desktop, cloud networking, and SaaS."
- Q2 Guidance Details: GAAP gross margin is targeted to be in the range of 81 percent to 82 percent. Non-GAAP gross margin is targeted to be in the range of 84 percent to 85 percent, excluding 3 percent related to the effects of amortization of acquired product related intangible assets and stock-based compensation expense.
- FY14 Guidance Details: GAAP gross margin is targeted to be in the range of 81 percent to 82 percent. Non-GAAP gross margin is targeted to be in the range of 84 percent to 85 percent, excluding 3 percent related to the effects of amortization of acquired product related intangible assets and stock-based compensation expense.
4:20 pm Tsakos Energy announces public offering of 11 mln common shares (TNP) :
- The co plans to use the net proceeds of the offering to finance the expansion and modernization of its fleet through its vessel acquisition program, including instalment payments on its existing crude oil carrier newbuilding program pursuant to its strategic partnership with a well-known oil major, and for general corporate purposes.
- Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities, LLC are acting as joint book-running managers of the offering, which will be made under an effective shelf registration statement.
4:18 pm Varian Medical beats by $0.01, reports revs in-line; guides Q3 EPS below consensus; guides FY14 EPS in-line, revs in-line (VAR) : Reports Q2 (Mar) earnings of $1.04 per share, excluding $0.16/share charge related to settlement of patent litigation, $0.01 better than the Capital IQ Consensus Estimate of $1.03; revenues rose 1.4% year/year to $779 mln vs the $774.67 mln consensus.
Guidance: Co issues downside guidance for Q3, sees EPS of $1.06-$1.10 vs. $1.12 Capital IQ Consensus Estimate.
Co issues in-line guidance for FY14, sees EPS of $4.22-$4.34, excluding a $0.16/share charge due to the effect of patent litigation settlement, vs. $4.29 Capital IQ Consensus Estimate; sees FY14 revs growing 6-8%, equating to approximately $3.10-$3.18 bln vs. $3.13 bln Capital IQ Consensus Estimate.
4:18 pm Cheesecake Factory misses by $0.06, reports revs in-line (CAKE) : Reports Q1 (Mar) earnings of $0.43 per share, $0.06 worse than the Capital IQ Consensus Estimate of $0.49; revenues rose 4.0% year/year to $481.43 mln vs the $478.59 mln consensus.
-During the qtr, co repurchased 2.1 million shares at a cost of $99.0 million. Co continues to expect that it will return substantially all of its free cash flow to shareholders in fiscal 2014 in the form of dividends and share repurchases.
4:18 pm Graco reports EPS in-line, beats on revs (GGG) : Reports Q1 (Mar) earnings of $0.81 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.81; revenues rose 7.8% year/year to $290 mln vs the $282.4 mln consensus.
- "Our outlook for 2014 has not changed, and we remain confident about achieving full year growth in all segments and regions," stated Mr. McHale. "While U.S. housing starts began 2014 slower than anticipated, we continue to expect strong full year growth in the residential construction market to drive low double-digit growth in our Contractor segment in the Americas. Although certain emerging economies of EMEA are facing geopolitical and currency headwinds, and capital equipment demand in China remains choppy, we expect to benefit from the improving macro environment in developed economies around the world."
4:18 pm Interface misses by $0.07, misses on revs (TILE) : Reports Q1 (Mar) earnings of $0.06 per share, $0.07 worse than the Capital IQ Consensus Estimate of $0.13; revenues rose 4.1% year/year to $219 mln vs the $222.36 mln consensus.
4:18 pm Fortinet beats by $0.02, beats on revs (FTNT) : Reports Q1 (Mar) earnings of $0.11 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.09; revenues rose 24.4% year/year to $168.9 mln vs the $157.51 mln consensus.
- Within total revenue, product revenue was $76.8 million, an increase of 32% compared to the same quarter of 2013. Services and other revenue was $92.2 million, an increase of 18% compared to the same quarter of 2013.
- Total billings were $187.6 million for the first quarter of 2014, an increase of 26% YoY.
- Deferred revenue was $451.3 million as of March 31, 2014, an increase of 20% compared to deferred revenue of $376.4 million as of March 31, 2013, and an increase of $18.7 million from $432.6 million as of December 31, 2013.
4:17 pm Robert Half beats by $0.01, reports revs in-line (RHI) : Reports Q1 (Mar) earnings of $0.45 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.44; revenues rose 5.9% year/year to $1.08 bln vs the $1.08 bln consensus.
"We saw strong demand in all areas of the business, especially in the latter part of the quarter. Growth was strongest in our Protiviti, technology staffing and permanent placement divisions. Non-U.S. operations also improved, particularly permanent placement services, which reported solid sequential and year-over-year revenue gains during the quarter."
4:17 pm SunCoke Energy misses by $0.11, misses on revs (SXC) : Reports Q1 (Mar) loss of $0.11 per share, $0.11 worse than the Capital IQ Consensus Estimate of ($0.00); revenues fell 20.8% year/year to $359.6 mln vs the $364.97 mln consensus.
SXC also announced that it has entered into an contribution agreement with SunCoke Energy Partners (SXCP) to contribute a 33% interest in its Haverhill and Middletown cokemaking facilities for total consideration of $365 million. SXC will continue to retain a 2% interest in both facilities.
4:16 pm Symetra Financial beats by $0.15, beats on revs; raises FY14 EPS above consensus to reflect better-than-expected results in Q1 (SYA) : Reports Q1 (Mar) earnings of $0.56 per share, excluding non-recurring items, $0.15 better than the Capital IQ Consensus Estimate of $0.41; revenues fell 2.1% year/year to $545.5 mln vs the $533.3 mln consensus.
- Co raises guidance for FY14 to reflect better-than-expected results in Q1, sees EPS of $1.80-2.00 vs. $1.70 Capital IQ Consensus Estimate, up from $1.65-1.85.
4:15 pm Famous Dave's misses by $0.09, misses on revs (DAVE) : Reports Q1 (Mar) earnings of $0.07 per share, $0.09 worse than the Capital IQ Consensus Estimate of $0.16; revenues fell 2.5% year/year to $35.7 mln vs the $36.66 mln consensus.
- Comparable restaurant sales for Company-owned restaurants open 24 months or more decreased 4.9% compared to a decrease of 1.8% for the first quarter of 2013; Comparable restaurant sales for franchise-operated restaurants decreased 3.3% compared to a decrease of 6.1% for the first quarter of 2013; Franchise royalty revenue increased to $4.2 million for the first quarter of 2014 compared to $4.1 million for the first quarter of 2013.
- The co repurchased ~45,000 shares of common stock during the first quarter of fiscal 2014 at an average price of $19.29 per share, excluding commissions, for a total of ~$869,000. The co did not buy back any shares during the first quarter of 2013.
4:15 pm AvalonBay beats by $0.01; guides Q2 FFO below consensus (AVB) : Reports Q1 (Mar) funds from operations of $1.64 per share, $0.01 better than the Capital IQ Consensus Estimate of $1.63.
- Co issues downside guidance for Q2, sees FFO of $1.62-1.66, excluding non-recurring items, vs. $1.69 Capital IQ Consensus Estimate.
- At March 31, 2014, the Company did not have any borrowings outstanding under its $1,300,000,000 unsecured credit facility, and had $476,853,000 in unrestricted cash and cash in escrow.
- The Company's annualized Net Debt-to-EBITDA for the first quarter of 2014 was 5.7 times.
4:14 pm LaSalle Hotel beats by $0.02, beats on revs; guides Q2 FFO in-line; guides FY14 FFO in-line (LHO) : Reports Q1 (Mar) funds from operations of $0.32 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.30; revenues rose 14.2% year/year to $218.86 mln vs the $213.77 mln consensus.
- Co issues in-line guidance for Q2, sees FFO of $0.77-0.81 vs. $0.81 Capital IQ Consensus Estimate.
- Co issues in-line guidance for FY14, sees FFO of $2.33-2.54 vs. $2.46 Capital IQ Consensus Estimate.
4:14 pm Qualcomm beats by $0.09, misses on revs; guides Q3 EPS in-line, revs in-line; guides FY14 EPS in-line, revs in-line (QCOM) : Reports Q2 (Mar) earnings of $1.31 per share, $0.09 better than the Capital IQ Consensus Estimate of $1.22; revenues rose 4.0% year/year to $6.37 bln vs the $6.49 bln consensus.
- Co issues in-line guidance for Q3, sees EPS of $1.15-1.25 vs. $1.25 Capital IQ Consensus Estimate; sees Q3 revs of $6.2-6.8 bln vs. $6.59 bln Capital IQ Consensus Estimate.
- Co issues in-line guidance for FY14, sees EPS of $5.05-5.25 vs. $5.10 Capital IQ Consensus Estimate (prior forecast $5.00-5.20); sees FY14 revs of $26.0-27.5 bln vs. $26.8 bln Capital IQ Consensus Estimate (prior forecast $26-27.5 bln.)
- 2014 guidance includes benefit of $2 bln of stock repurchases planned over remainder of year.
4:12 pm Angie's List beats by $0.01, reports revs in-line; guides Q2 revs above consensus (ANGI) : Reports Q1 (Mar) loss of $0.06 per share, $0.01 better than the Capital IQ Consensus Estimate of ($0.07); revenues rose 39.3% year/year to $72.7 mln vs the $72.33 mln consensus.
- Membership revenue in the first quarter of 2014 was $18.3 million, an increase of 25 percent compared to the prior year period.
- Service provider revenue remains the largest and fastest growing component of total revenue at $54.4 million for the quarter, representing a 45 percent growth rate year-over-year. Service provider revenue includes revenue from advertising contracts and fees from e-commerce transactions.
- Advertising revenue was $48.1 million in the first quarter of 2014, an increase of 46 percent compared to the prior year period, and e-commerce revenue was $6.3 million, an increase of 34 percent year-over-year.
- Marketing expense increased 19 percent, or $3.8 million, compared to the prior year period.
4:12 pm LaSalle Hotel increases quarterly dividend by 34% to $0.375 per common share of beneficial interest (LHO) :
4:12 pm Closing Market Summary: Stocks Snap Six-Day Win Streak as Technology Lags (:WRAPX) : The stock market finished the Wednesday session on a modestly lower note, but it is worth mentioning today's retreat took place after six consecutive gains. The Dow Jones Industrial Average (-0.1%) and S&P 500 (-0.2%) settled not far below their flat lines, while the Nasdaq Composite (-0.8%) lagged throughout the session.
Equity indices started the day in the red, with the Nasdaq showing early weakness as large cap tech names and biotechnology weighed. The technology sector (-0.9%) slumped amid profit-taking in listings like Apple (AAPL 524.75, -6.95), Google (GOOG 526.94, -7.87), Microsoft (MSFT 39.69, -0.30), and Intel (INTC 26.75, -0.09), while biotech names retreated following quarterly reports from three major industry players.
Amgen (AMGN 113.32, -5.98) and Biogen (BIIB 306.75, +0.55) reported below-consensus results, while Gilead Sciences (GILD 73.86, +1.00) handily beat estimates. For its part, the iShares Nasdaq Biotechnology ETF (IBB 230.99, -3.73), which includes the three components among its top five holdings, lost 1.6% and settled just above its 20-day moving average. The broader health care sector (-0.5%), meanwhile, ended among the laggards.
Similar to health care, other heavily-weighted groups like consumer discretionary (-0.5%) and technology (-0.9%) weighed on the broader market, while financials (+0.2%) outperformed modestly.
The discretionary space suffered from sector-wide losses that included a 5.2% drop in the shares of Netflix (NFLX 353.50, -19.40) that took place after Amazon.com (AMZN 324.58, -4.74) announced it has secured a partnership agreement with HBO. Homebuilders also weighed on the sector after the New Home Sales report for March missed estimates. The iShares Dow Jones US Home Construction ETF (ITB 23.33, -0.37) lost 1.6%.
On the upside, energy (+0.5%) and industrials (+0.4%) spent the entire session in the green. Energy rallied even as crude oil slipped 0.2% to $101.47/bbl, while the industrial sector was underpinned by above-consensus results reported by Boeing (BA 130.63, +3.08). Transports also outperformed, but the Dow Jones Transportation Average (+0.1%) retreated from its best level of the session into the close. Delta Air Lines (DAL 37.09, +2.14) was a notable standout, soaring 6.1% after beating bottom-line estimates.
With stocks ending in the red, the CBOE Volatility Index (VIX 13.32, +0.13) inched higher, but remained near the lowest levels of the year.
Treasuries posted modest gains as the 10-yr note added six ticks, sending its yield lower by three basis points to 2.69%.
Trading volume was on the light side once again with less than 650 million shares changing hands at the NYSE.
Today's economic data focused on housing:
- The weekly MBA Mortgage Index fell 3.3% to follow last week's increase of 4.3%.
- New home sales declined 14.5% in March from an upwardly revised 449,000 (from 440,000) in February to 384,000. The Briefing.com consensus expected home sales to increase to 455,000. March sales were the lowest since 373,000 new homes were sold in July 2013. Winter weather conditions, which were unduly blamed for softness across the economy, again showed little effect in the new home sector. The return to more normal temperatures, which should have boosted sales from pent up demand, resulted in the weakest demand since the middle of last year.
- S&P 500 +1.5% YTD
- Dow Jones Industrial Average -0.5% YTD
- Nasdaq Composite -1.2% YTD
- Russell 2000 -1.3% YTD
4:11 pm United Stationers misses by $0.04, beats on revs (USTR) : Reports Q1 (Mar) earnings of $0.55 per share, $0.04 worse than the Capital IQ Consensus Estimate of $0.59; revenues rose 0.3% year/year to $1.25 bln vs the $1.23 bln consensus.
"We recently completed the bid process at Office Depot. As a result of this process, we were named the second call office products supplier, which will result in the loss of some business. However, we were also named the primary supplier for janitorial and breakroom products, which will result in some new business and is consistent with our diversification strategy into growth categories. Many factors can influence the financial impact of this specific customer situation, but absent any mitigating actions we will take, we estimate a reduction in earnings per share in a range of $0.05 to $0.08 in the second half of 2014. Office Depot continues to be a valued customer, and we look forward to supporting both categories of business. We also remain well positioned with a robust sales pipeline and active discussions regarding new business with a range of strategic customers."
4:11 pm Fusion-io reports EPS in-line, beats on revs (FIO) : Reports Q3 (Mar) loss of $0.10 per share, in-line with the Capital IQ Consensus Estimate consensus of ($0.10); revenues rose 14.6% year/year to $100.5 mln vs the $96.7 mln consensus.
- Metrics: Non-GAAP gross margin was 52.4%. Cash used in operations was $18.8 million in fiscal third quarter 2014 and $22.9 million fiscal year-to-date. Inventory was $72.7 million at the end of fiscal third quarter 2014, a decrease of $7.7 million from the prior quarter-end
- Guidance: Co sees Q4 revs to be in-line to slightly up sequentially. CapIQ consensus is for revs of $107.5 mln. Sees Non-GAAP gross margin of 52-54% and operating margin of negative 13-17%.
4:10 pm Facebook beats by $0.10, beats on revs (FB) : Reports Q1 (Mar) earnings of $0.34 per share, $0.10 better than the Capital IQ Consensus Estimate of $0.24; revenues rose 71.6% year/year to $2.5 bln vs the $2.35 bln consensus.
- Daily active users (DAUs) were 802 million on average for March 2014, an increase of 21% year-over-year. Mobile DAUs were 609 million on average for March 2014, an increase of 43% year-over-year.
- Monthly active users (MAUs) were 1.28 billion as of March 31, 2014, an increase of 15% year-over-year. Mobile MAUs were 1.01 billion as of March 31, 2014, an increase of 34% year-over-year.
- Revenue for the first quarter of 2014 totaled $2.50 billion, an increase of 72%, compared with $1.46 billion in the first quarter of 2013. Revenue from advertising was $2.27 billion, an 82% increase from the same quarter last year. Mobile advertising revenue represented approximately 59% of advertising revenue for the first quarter of 2014, up from approximately 30% of advertising revenue in the first quarter of 2013.
- For the first quarter of 2014, GAAP income from operations was $1.08 billion, up 188% compared to $373 million in the first quarter of 2013. Excluding share-based compensation and related payroll tax expenses, non-GAAP income from operations for the first quarter of 2014 was $1.37 billion, up 144% compared to $563 million for the first quarter of 2013.
- GAAP operating margin was 43% for the first quarter of 2014, compared to 26% in the first quarter of 2013. Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 55% for the first quarter of 2014, compared to 39% for the first quarter of 2013.
- Facebook today also announced that David Ebersman has informed the company of his intention to step down as chief financial officer after serving in the position for almost five years. On June 1, 2014, he will be succeeded as CFO by David Wehner, currently Facebook's Vice President, Corporate Finance and Business Planning. Ebersman will remain with the company through September to ensure a seamless transition of his responsibilities. Wehner joined Facebook in November 2012 from Zynga, where he served as CFO.
4:10 pm Medivation enters into license agreement with OncoFusion for compounds targeting bromodomain proteins (MDVN) :
- Co will gain exclusive worldwide rights for the development and commercialization of these compounds.
- Under the terms of the agreement, co shall have access to OncoFusion's growing library of small molecule BET bromodomain inhibitor compounds from which co may select compounds to move forward into drug development efforts.
- OncoFusion is eligible to receive undisclosed upfront payments and potential future milestone payments subject to achievement of defined clinical and commercial milestone events.
- In addition, OncoFusion shall be eligible to receive royalties on the commercial sale of approved products as defined in the agreement.
- Further financial details were not disclosed.
4:10 pm ResMed misses by $0.01, reports revs in-line; Co announces record financial results for the quarter ended and nine months ended March 31, 2014 (RMD) : Reports Q3 (Mar) earnings of $0.63 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.64; revenues rose 3.7% year/year to $397.8 mln vs the $397.5 mln consensus.
- "We are pleased with our Q3 results in the face of challenging market conditions, particularly in the U.S.," said ResMed chief executive officer Michael "Mick" Farrell. "Our Americas business showed encouraging trends and we continue to benefit from our globally diversified business, with constant currency revenue growth of 6% in combined Europe and Asia-Pacific businesses for the quarter. In particular, our European results were strong across the board, with most countries showing solid growth."
4:10 pm Tyler Tech beats by $0.03, beats on revs; guides FY14 EPS slightly above consensus, revs in-line (TYL) : Reports Q1 (Mar) earnings of $0.43 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.40; revenues rose 17.5% year/year to $112.6 mln vs the $110.46 mln consensus.
- Co issues guidance for FY14, sees EPS of $1.83-1.90 vs. $1.82 Capital IQ Consensus Estimate; sees FY14 revs of $470-478 mln vs. $472.51 mln Capital IQ Consensus Estimate.
- Capital expenditures are expected to be between $12.0 million and $13.0 million, and total depreciation and amortization expense is expected to be between $15.0 million and $15.5 million, including approximately $6.5 million of amortization of acquisition intangibles.
4:10 pm Unwired Plant announces its subsidiary, Unwired Planet International, has extended FRAND license offers to each defendant in its previously announced litigation in Germany and the UK (UPIP) :
4:08 pm F5 Networks beats by $0.02, beats on revs; guides Q3 above consensus (FFIV) : Reports Q2 (Mar) non-GAAP earnings of $1.27 per share, $0.02 better than the Capital IQ Consensus Estimate of $1.25; revenues rose 19.9% year/year to $420 mln vs the $414.26 mln consensus.
Co issues upside guidance for Q3, sees EPS of $1.33-1.36, excluding non-recurring items, vs. $1.33 Capital IQ Consensus Estimate; sees Q3 revs of $428-438 mln vs. $428.70 mln Capital IQ Consensus Estimate.
"There were very few surprises in the second quarter of fiscal 2014. During the quarter, strong demand for our software-defined application services resulted in 22 percent year-over-year product revenue growth. Increasing revenue from the sale of software modules, particularly our Security modules, was driven in part by a growing percentage of customers purchasing our 'Better' and 'Best' offerings. Revenue by geographic region met or exceeded our expectations, with solid year-over-year growth in the Americas, EMEA and Japan. Sales of our TMOS-based products into vertical markets were also in line with historical trends and our internal expectations for the quarter, and our Traffix Diameter Signaling and Routing products continued to gain traction with key wins at several large service providers."
4:08 pm Ingram Micro misses by $0.05, reports revs in-line, reaffirms FY rev guidance (IM) : Reports Q1 (Mar) earnings of $0.43 per share, excluding non-recurring items, $0.05 worse than the Capital IQ Consensus Estimate of $0.48; revenues rose 1.2% year/year to $10.38 bln vs the $10.42 bln consensus. For Q2, co expects revenue to increase YoY in the low- to mid-single digits.
- "We had a good start to 2014, as we continued our trajectory of strong year-over-year gross margin expansion, while delivering top line growth consistent with sequential historical seasonality and in-line with our expectations. We remain confident in our expectations for full year 2014 worldwide revenue growth in the low- to mid- single-digits, in-line with overall global IT spending, and continued improvement in operating profitability."
4:07 pm Zynga reports EPS in-line, beats on revs; guides Q2 EPS in-line, revs below consensus; guides FY14 EPS in-line (ZNGA) : Reports Q1 (Mar) loss of $0.01 per share, in-line with the Capital IQ Consensus Estimate consensus of ($0.01); revenues fell 36.3% year/year to $168 mln vs the $163.32 mln consensus. Co issues mixed guidance for Q2, sees EPS of $0.00-0.01 vs. $0.00 Capital IQ Consensus Estimate; sees Q2 revs of $140-160 mln vs. $200.90 mln Capital IQ Consensus Estimate. Co issues in-line guidance for FY14, sees EPS of $0.01-0.03 vs. $0.02 Capital IQ Consensus Estimate.
4:07 pm Vermillion appoints Chairman of Board James LaFrance as President and Chief Executive Officer (VRML) : Co has appointed James LaFrance as president and chief executive officer, succeeding Thomas McLain. LaFrance will continue to serve as the company's chairman of the board.
4:07 pm Greenhill misses by $0.25, misses on revs (GHL) : Reports Q1 (Mar) earnings of $0.01 per share, $0.25 worse than the Capital IQ Consensus Estimate of $0.26; revenues fell 45.2% year/year to $43.6 mln vs the $59.51 mln consensus.
- Advisory revenues of $48.5 million were down 40% compared to prior year's first quarter due to fewer large transaction closings.
- Investment revenues for the first quarter of 2014 were negative $4.9 million compared to negative $1.9 million in the first quarter of 2013.
- The Board of Directors has declared a dividend of $0.45 per share to be paid on June 18, 2014 to common stockholders of record on June 4, 2014.
4:06 pm Antero Resources prices upsized private placement to eligible purchasers of $600 mkn in aggregate principal amount of 5.125% senior unsecured notes due Dec 2022 at par (AR) : Co estimates that it will receive net proceeds of approximately $591.6 million, after deducting the initial purchasers' discounts and estimated expenses, of which it intends to use $277.5 million to finance the redemption of its outstanding 7.25% senior notes due 2019 and intends to use the remaining net proceeds to repay a portion of the outstanding borrowings under its credit facility.
4:06 pm Stryker misses by $0.03, reports revs in-line; reaffirms FY14 EPS guidance (SYK) : Reports Q1 (Mar) earnings of $1.06 per share, $0.03 worse than the Capital IQ Consensus Estimate of $1.09; revenues rose 5.3% year/year to $2.31 bln vs the $2.33 bln consensus.
- Co reaffirms guidance for FY14, sees EPS of $4.75-4.90 vs. $4.84 Capital IQ Consensus Estimate; reaffirms organic sales growth in 2014 to be in the range of 4.5% to 6.0%.
- Net sales in the quarter grew by 6.9% due to increased unit volume and changes in product mix and 1.4% as a result of acquisitions. Net sales in the quarter were unfavorably impacted by 1.8% due to changes in price and 1.1% due to the unfavorable impact of foreign currency exchange rates on net sales. Excluding the impact of acquisitions, net sales increased 5.0% in constant currency.
4:06 pm Spectranetics misses by $0.03, misses on revs; guides FY14 EPS below consensus, revs below consensus (SPNC) : Reports Q1 (Mar) loss of $0.14 per share, $0.03 worse than the Capital IQ Consensus Estimate of ($0.11); revenues rose 5.0% year/year to $39.6 mln vs the $40.09 mln consensus.
- Co issues downside guidance for FY14, sees EPS of (0.23)-(0.18) vs. ($0.16) Capital IQ Consensus Estimate; sees FY14 revs of $171.5-174.0 mln vs. $174.57 mln Capital IQ Consensus Estimate.
4:06 pm Leidos Awarded $17 mln contract by Army Space & Missile defense command (LDOS) : LDOS announced it was awarded a prime contract by the U.S. Army Space and Missile Defense Command/Army Forces Strategic Command (USASMDC/ARSTRAT) to provide intelligence, surveillance, reconnaissance (ISR) and targeting support to the Air Combat Command.
- The single-award firm fixed-price task order has a one-year base period of performance, two one-year options, and a contract value of approximately $17 million if the options are exercised.
- The task order was awarded under the Warfighter Modeling, Simulation, Analysis and Integration Support contract.
- USASMDC/ARSTRAT conducts space and missile defense operations and provides planning, integration, control and coordination of Army forces and capabilities in support of U.S. Strategic Command missions.
- Under the contract, the Leidos team will provide modeling, simulation, analysis, and integration support to better synchronize multi-discipline ISR; targeting; and computing technologies with air, space and cyberspace force operations.
4:05 pm Citrix Systems announces proposed private offering of $1.25 bln Convertible Senior Notes due 2019 (CTXS) :
- Co intends to use a portion of the net proceeds from the offering of the notes to pay the net cost of the convertible note hedge transactions (after such cost is partially offset by the proceeds to Citrix from the warrant transactions).
- Co expects to use the remainder of the net proceeds from the offering of notes and a portion of its existing cash and investments to purchase an aggregate of $1.5 bln of its common stock from certain purchasers of notes in privately negotiated transactions effected through one of the initial purchasers or an affiliate thereof as Citrix's agent concurrently with the closing of the notes offering and through an accelerated share repurchase transaction (the "ASR"), which co intends to enter into with a financial institution, which may be one of the initial purchasers or an affiliate thereof, concurrently with the pricing of the notes offering.
4:04 pm ServiceNow reports EPS in-line, beats on revs; guides Q2 revs above consensus; guides FY14 revs above consensus (NOW) : Reports Q1 (Mar) loss of $0.08 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate consensus of ($0.08); revenues rose 61.8% year/year to $139.1 mln vs the $134.6 mln consensus. Co issues upside guidance for Q2, sees Q2 revs of $160-162 mln vs. $156.6 mln Capital IQ Consensus Estimate. Co issues upside guidance for FY14, sees FY14 revs of $652-657 mln vs. $644.2 mln Capital IQ Consensus Estimate.
4:03 pm Ingram Micro Selected to provide mobility distribution and supply chain solutions to key Verizon Wireless (VZ) dealers (IM) : IM announced it has entered into a strategic sourcing and integrated supply chain services agreement with the 360 Group, a consortium of four of Verizon Wireless' largest national dealers including A Wireless, Diamond Wireless, Go Wireless and Moorehead Communications (dba as TCC).
- Under the terms of the multi-year agreement, Ingram Micro Mobility has been named the preferred handset distributor and services provider for these key Verizon Wireless retailers.
- As part of the agreement, Ingram Micro Mobility will integrate directly into more than 1,750 points of sale and will provide the 360 Group with a suite of industry-leading supply chain services, including supply chain management, strategic sourcing, device lifecycle management, logistics services, and reverse logistics and demand planning services.
- Services under the agreement are expected to begin in the second quarter of 2014.
- Ingram Micro Mobility will be integrated directly into the point of sale system of each of the 360 Group members. This integration is expected to enable the company to be highly efficient and productive in its services and delivery processes, which will help drive optimal device availability and inventory management, while reducing inventory obsolescence.
4:03 pm TriQuint Semi beats by $0.05, reports revs in-line; guides Q2 EPS above consensus, revs above consensus (TQNT) : Reports Q1 (Mar) loss of $0.06 per share, $0.05 better than the Capital IQ Consensus Estimate of ($0.11); revenues fell 3.6% year/year to $177.6 mln vs the $176.2 mln consensus. Co issues upside guidance for Q2, sees EPS of $0.06-0.08 vs. $0.04 Capital IQ Consensus Estimate; sees Q2 revs of $215-225 mln vs. $200.77 mln Capital IQ Consensus Estimate.
4:03 pm Tractor Supply misses by $0.02, misses on revs; reiterates FY14 EPS in-line, revs in-line (TSCO) : Reports Q1 (Mar) earnings of $0.35 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.37; revenues rose 9.0% year/year to $1.18 bln vs the $1.21 bln consensus.
- Co reiterates in-line guidance for FY14, sees EPS of $2.54-2.62 vs. $2.61 Capital IQ Consensus Estimate; sees FY14 revs of $5.62-5.70 bln vs. $5.68 bln Capital IQ Consensus Estimate.
4:02 pm Capital Product Partners announces management transition; says Director, Chief Executive Officer and Chief Financial Officer, Mr. Ioannis Lazaridis, will transition to a non-executive role with the Partnership upon the completion of the process to choose his successor (CPLP) :
4:02 pm Body Central announces review of Strategic Alternatives (BODY) : Co announced that it has retained Houlihan Lokey Capital as its financial advisor and/or placement agent to provide financial advisory and investment banking services and to assist the Company in analyzing and considering a wide range of financing, transactional and strategic alternatives. The Company can give no assurance that a transaction of any kind will occur. The Company does not intend to disclose developments regarding the consideration of financing, transactional and strategic alternatives unless and until the Company's board of directors has approved a specific transaction.
4:01 pm Align Tech beats by $0.04, beats on revs; guides Q2 EPS below consensus, revs below consensus; announces $300 mln buyback (ALGN) : Reports Q1 (Mar) earnings of $0.39 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.35; revenues rose 17.6% year/year to $180.6 mln vs the $177.47 mln consensus. Co issues downside guidance for Q2, sees EPS of $0.36-0.39 vs. $0.43 Capital IQ Consensus Estimate; sees Q2 revs of $181.7-186.5 mln vs. $189.52 mln Capital IQ Consensus Estimate.
Co also announced a $300 mln buyback.
4:01 pm Accretive Health President & CEO Steve Schuckenbrock to step down (ACHI) : ACHI announced that its Board of Directors has accepted the resignation of Steve Schuckenbrock as president and CEO, effective October 2, 2014, which is the completion of his contract term.
- The Board of Directors has initiated a search for a new CEO with deep healthcare domain expertise to lead the company through its next phase of operational enhancement, as well as reigniting the company's growth and strategic innovation.
- Schuckenbrock will continue to serve on Accretive Health's Board of Directors, remain as President and CEO through his contract term, enabling a stable transition to a new CEO, and managing the completion of the company's financial restatement as soon as possible.
- To continue the company's momentum, the Board of Directors appointed current chief operating officer, Joe Flanagan, to lead a newly created Transformation Office. Flanagan's expanded responsibilities will enable him to provide the continuity and cross-functional accountability to focus on the continued execution of the company's turnaround plan by leveraging his broad operational and restructuring experience.
4:00 pm TRW Automotive to supply belt drive electric steering for great wall motor company sport utility vehicle (TRW) : TRW will supply its Belt Drive Electric Power Steering (EPS) system to a next generation mid-sized Sport Utility Vehicle (SUV.V) being launched by Chinese automaker Great Wall Motor Company in 2015. Sport Utility Vehicles are the fasting growing vehicle segment in the rapidly expanding Chinese market with a 43% sales increase from 2013 compared to 2012 according to IHS data.
- "TRW's Belt Drive system is an ideal choice for mid to large size SUVs as larger vehicles require greater steering rack forces," said Peter Lake, executive vice president, Sales and Business Development. "As Chinese consumers continue to desire the greater flexibility and utility of SUVs, TRW has the local capacity to satisfy demand for these vehicles."
3:46 pm Columbia Banking declared a special cash dividend of $0.12 per common share (COLB) :
3:40 pm Earnings Calendar (:SUMRX) : Today after the close look for the following companies to report:
- FNB, TXN, XLNX, CCI, CVBF, FFIV, FIO, LOGI, PLCM, PTC, RJF, SUSQ, SYK, TCBI, TER, VAR, COBZ, ETFC, RMD, AAPL, GGG, GHL, IBKC, ALGT, AVB, BRKL, CLB, CTXS, ELY, FB, FTNT, INFN, LRCX, MKSI, NOW, QCOM, SFG, SLG, TSCO, ALGN, NEU, RHI, SIGI, SXC, SXCP, SYA, WSTC, ZNGA, KFN, AIZ, AWH, CLW, EXPO, LHO, ORLY, RE, TQNT, TYL, AHL, NXPI, LPLA, QDEL, SCI, ANGI, CAKE, DAVE, TAL, EFX, GRT, IM, USTR, FLS, KALU, OII, PEI, ASGN, CSGP, HAWK, SWY, TILE, IPCM, FOE, CBI, CHDN, FR, SPNC
- VZ, FCX, VIVO, ABC, AVT, BKU, CCMP, CLFD, CSH, DLX, GMT, LUV, LYTS, NTCT, ORI, SILC, UAL, UCBI, FNFG, SWK, CAT, RCL, AAL, DHI, NUE, TROW, CAJ, JBLU, MDP, MHO, NVS, PJC, ALXN, BC, BMS, BTU, CAM, CELG, CMS, CRR, CRS, DEST, DFT, DGX, DST, HP, HSY, HZO, LLY, LSTR, MMM, MO, OSTK, PHM, POT, RTN, RYL, TKR, TWC, UA, UPS, UTEK, VLY, WCC, ZMH, MJN, BHE, DLPH, SIRI, CCE, GPI, NDAQ, AET, AMAG, AZN, CFX, DNKN, DO, GM, GPK, IVC, KKR, NBL, NYT, ODFL, PENN, PTEN, SIAL, SQNS, USG, UFS, WYN, ETR, ASPS, CAB, CNMD, COR, EQM, EQT, FAF, HOT, NLSN, PAG, RTIX, STC, VDSI, WM, LAD, NWE, COG, CWEI, IMAX, LTM, RS, SCG, SONS, TWI, YNDX, MTRN, GTI, WMAR, CLI, SFE
3:39 pm Delta Air Lines (+6%) lifting into the close at new all time highs following strong Q1 results (DAL) : AAL +2% and UAL +1% report tmrw morning; LUV +1%.
3:31 pm Amedisys finalizes settlement agreeemnt with government: Brings previously announced DOJ civil investigation and Stark Law self-referral disclosure to a close (AMED) : Co announced today that the company has finalized its previously announced settlement to bring to an end the civil investigation brought by the U.S. Department of Justice. Under the terms of the civil settlement, and as disclosed previously, Amedisys will pay a total of $150 million plus interest in two installments. The first installment of $115 million plus interest must be paid by May 2, 2014, and the remaining $35 million plus interest must be paid by October 23, 2014. The company will fund the settlement through cash on hand and draws upon its existing credit facility. Amedisys took the charge associated with the settlement in the third quarter of 2013. In addition to the amount to be paid to the United States, the company will be responsible for payment of attorneys' fees and expenses of various qui tam relators in the amount of approximately $3.9 million, which will be recorded in the first quarter of 2014.
3:29 pm Crescent Point Energy announces strategic Torquay consolidation, acquisition of Canera Energy and upwardly revised 2014 guidance (shares halted) (CPG) :
- Co announced that it has entered into an arrangement agreement to acquire all of the issued and outstanding shares of CanEra Energy, a privately held southeast Saskatchewan oil and gas producer with a large Torquay land position and production of ~ 10,000 boe/d. Total consideration for CanEra is ~ $1.1 bln, including ~ 12.9 mln Crescent Point shares, $192 mln of cash consideration and the assumption of ~ $348 mln of net debt.
- The CanEra Assets include more than 260 net sections of land with Torquay potential, of which more than 200 net sections are exploratory land and 60 net sections are in Crescent Point's core Flat Lake area. In total, Crescent Point now has exposure to more than 880 net sections of land with Torquay potential, of which more than 280 net sections are in the core Flat Lake area.
- Assuming the successful completion of the CanEra Arrangement on or about May 15, 2014, Crescent Point is upwardly revising its 2014 guidance for production and funds flow from operations. The co's 2014 exit production rate is expected to increase by seven percent to 145,000 from 135,000 boe/d and its average daily production in 2014 is expected to increase by five percent to 133,000 boe/d from 126,500 boe/d. The co's funds flow from operations for 2014 are expected to increase by six percent to $2.38 bln from $2.25 bln. Capital expenditures for the year are expected to increase by 1.4 percent, or $25 mln, which is expected to maintain CanEra's current production levels for the year.
3:02 pm Avis Budget renews exclusive partnership with British Airways (CAR) : Co and British Airways have entered into a multi-year exclusive global partnership agreement to provide British Airways customers with access to Avis Car Rental vehicles, along with other travel benefits. The new agreement represents a renewal of the 15-year-old cross-marketing relationship between Avis Budget Group and British Airways.
2:54 pm Phillips 66 Partners increases quarterly distribution by 22% to $0.2743 per limited partnership unit from $0.2248 per limited partnership unit (PSXP) :
2:51 pm NYMEX Energy Closing Prices (:COMDX) :
- June crude oil fell $0.20 to $101.47/barrel
- Crude oil oscillated between positive and negative territory today. It dipped to a session low of $101.28 following inventory data that showed a build of 3.524 mln barrels for the week ending Apr 18 while consensus called for a smaller build of 2.3-3.0 mln barrels. It eventually settled with a 0.2% loss.
- May natural gas fell 1 cent to $4.73/MMBtu
- Natural gas chopped around in positive territory for most of the session, rising as high as $4.78 in morning action. However, it sold off into the red as it headed into the close and settled 0.2% lower.
- June heating oil fell 2 cents to $2.97/gallon
- June RBOB settled unchanged at $3.04/gallon
2:24 pm CBOT Agriculture and Ethanol/ICE Sugar Closing Prices (:COMDX) :
- May corn rose 8 cents to $5.04/bushel
- May wheat rose 4 cents to $6.76/bushel
- May soybeans fell 12 cents to $14.69/bushel
- May ethanol rose 2 cents to $2.27/gallon
- July sugar (#16 (U.S.)) rose 0.23 of a penny to 24.68 cents/lbs
2:20 pm Dollar Holds Little Changed: 10-yr: +04/32..2.690%..USD/JPY: 102.30..EUR/USD: 1.3813 (:SUMRX) :
- The Dollar Index holds little changed as action nears the 79.90 flat line. Click here to see a daily Dollar Index chart.
- Overnight selling dropped action onto the 79.70 level, but steady buying over the course of the session has erased the overnight losses.
- EURUSD is +10 pips @ 1.3815 after giving up the majority of its early gains. The single currency probed the 1.3850 level as buyers emerged following the mostly better than expected PMI figures, but action struggled at the level as has steadily slipped back towards the flat line. Support in the 1.3800 area remains under close watch. Eurozone data out tomorrow is limited to German Ifo Business Climate. ECB head Mario Draghi will speak in Amsterdam.
- GBPUSD is -60 pips @ 1.6765 as trade slides off its best levels since November 2009 and presses to a one-week low. Sterling has been offered for most of the session as some conflicting BOE member opinions over slack in the UK economy and the inflation outlook weigh. The 1.6700/1.6750 area provides the first level of support. Britain's CBI Realized Sales will be released tomorrow.
- USDCHF is -20 pips @ .8830 as trade attempts to recover its early losses. The pair pressed to nearly .8800 amid the early weakness, but is now attempting to retake the 50 dma (.8834). Action remains closely tied to the euro due to the Swiss National Bank's EURCHF1.20 floor.
- USDJPY is -30 pips @ 102.30 as trade dips back below the 50 dma. Traders continue to watch the 102.50 pivot area, which has been of interest since the beginning of February.
- AUDUSD is -85 pips @ .9280 as trade pulls back to its lowest level in two weeks. The hard currency has been under pressure in today's session after Australian CPI posted a cooler than anticipated reading. Trendline support off the January lows lurks in the .9250 region and will be of interest in the days ahead. Traders should take note of the early evening Reserve Bank of New Zealand rate decision as it has the potential to provide some volatility.
- USDCAD is flat @ 1.1030 amid a mostly uneventful session. Today's choppy trade follows the in-line Canadian core retail sales (0.6% MoM) data.
2:09 pm Nasdaq Comp -32 slips slightly under first hour low, S&P -3.6 and Dow -18 still range bound (:TECHX) :
1:50 pm COMEX Metals Closing Prices (:COMDX) :
- June gold rose $3.70 to $1284.80/oz
- Gold rose for the first time in four sessions as economic data showed that new home sales declined 14.5% in March from an upwardly revised 449K (from 440K) in Feb to 384K. The Briefing.com consensus expected home sales to increase to 455K. The yellow metal brushed a session high of $1287.70 in early morning action and settled with a 0.3% gain.
- May silver rose $0.08 to $19.44/oz
- Silver also traded in positive territory today, climbing as high as $19.49. It traded near the $19.42 level in afternoon action and settled with a 0.4% gain.
- May copper rose 1 cent to $3.06/lbs
1:24 pm Array Biopharma confirms that Novartis indicated it will continue to honor its obligations under the Array-Novartis agreement relating to binimetinib (ARRY) : Following the recent announcement by Novartis (NVS) and GlaxoSmithKline (GSK) that they have entered into a definitive agreement to exchange certain assets, Array reports that Novartis has indicated that it will continue to honor its obligations under the Array-Novartis agreement relating to binimetinib (MEK162), including obligations relating to support for ongoing clinical trials as specified in the agreement.
1:18 pm Cardinal Financial missed by $0.02 (CFNL) : Reports Q1 (Mar) earnings of $0.20 per share, excluding $0.07 in costs from UFBC acquisition, $0.02 worse than the Capital IQ Consensus of $0.22.
- During the quarter, loans held for investment organically grew ~$67 million, or over 13% annualized. This is the fourth consecutive quarter of annualized double digit loan growth.
- Asset quality remains excellent. Nonperforming loans were 0.16% of total assets, and the Company had net loan charge offs of 0.12% of average loans outstanding. The Company had $0 real estate owned at March 31, 2014, and $4.9 million of non-accruing loans.
- The co integrated UFBC's systems in March. Quarterly income and expenses include the operations of the former UFBC since the January 15, 2014 combination.
- Despite refinance volume slowing to 18% of originations and difficult winter weather conditions that impacted home buying, late quarter activity resulted in mortgage loan applications increasing to $961 million for the current quarter, up slightly from $886 million for the previous quarter. Mortgage bank segment net loss decreased to $167,000 compared to $1.6 million for the previous quarter and $1.1 million for the first quarter 2013.
- All capital ratios exceed the requirements of banking regulators to be considered well-capitalized. Tangible common equity capital (:TCE) as a percentage of total assets was 9.88% at March 31, 2014.
1:17 pm Aspen Insurance declared quarterly cash dividend on ordinary shares of $0.20/share, prior $0.18/share (AHL) :
12:53 pm Midday Market Summary: Nasdaq Lags (:WRAPX) : At midday, equity indices hover in the red, with the Nasdaq Composite (-0.5%) showing the largest loss amid weakness in biotechnology. For its part, the S&P 500 is lower by 0.1% with four sectors on the defensive.
Equity indices began the trading day just below their flat lines before making a couple unsuccessful attempts at turning positive. The Dow and S&P 500 were able to briefly climb into the green, but the two indices quickly rejoined the Nasdaq, which has been pressured since the start by biotechnology.
Since yesterday's closing bell, participants received a fair share of quarterly earnings that were generally better than expected; however, that was not the case in the biotech space as Amgen (AMGN 112.87, -6.43) and Biogen (BIIB 301.59, -4.61) missed estimates, while Gilead Sciences (GILD 75.34, +2.48) handily beat expectations. Meanwhile, the broader iShares Nasdaq Biotechnology ETF (IBB 231.98, -2.74) trades lower by 1.2% after climbing nearly 8.0% since last Monday.
With biotech in the red, the heavily-weighted health care sector (-0.4%) is among the weakest groups of the day. Like health care, the technology sector (-0.7%) also lags, which explains the underperformance of the Nasdaq Composite.
In general, top-weighted sectors have struggled today as the discretionary sector (-0.3%) trades in the red, alongside health care and technology, while financials (+0.2%) outperform.
Also of note, the industrial sector (+0.5%) has received support from Boeing (BA 130.28, +2.73) and Delta Air Lines (DAL 36.73, +1.78), both of which reported above-consensus results.
Treasuries hover near their highs notched about two hours ago. The 10-yr note is higher by eight ticks with its yield down three basis points at 2.69%.
Today's economic data focused on housing:
- The weekly MBA Mortgage Index fell 3.3% to follow last week's increase of 4.3%.
- New home sales declined 14.5% in March from an upwardly revised 449,000 (from 440,000) in February to 384,000. The Briefing.com consensus expected home sales to increase to 455,000. March sales were the lowest since 373,000 new homes were sold in July 2013. Winter weather conditions, which were unduly blamed for softness across the economy, again showed little effect in the new home sector. The return to more normal temperatures, which should have boosted sales from pent up demand, resulted in the weakest demand since the middle of last year.
12:30 pm Genpact to acquire Pharmalink Consulting, a provider of regulatory services to the life sciences industry (G) : Co announced it has signed a definitive agreement to acquire Pharmalink Consulting, a global provider of regulatory services to the life sciences industry for more than 15 years. As part of the transaction, Pharmalink's employees based in the US, the UK, India, Ireland and Puerto Rico will become part of Genpact's Life Sciences vertical.
12:26 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).
Large Cap Gainers
- FTI (58.3 +5.20%): Beat quarterly EPS by $0.07 ($0.57 vs $0.50 estimate), revs rose 10.8% yoy to $1.82 bln vs $1.81 bln estimate; sees FY14 EPS of $2.55-2.75
- DAL (36.63 +4.81%): Beat quarterly EPS by $0.05 ($0.33 ex items vs $0.29 estimate), revs rose 4.9% yoy to $8.92 bln bs $8.93 bln estimate; traffic increased 3.5% on a 1.7% increase in capacity
- ILMN (154.95 +4.71%): Beat quarterly EPS by $0.02 ($0.46 ex items vs $0.44 estimate), revs rose 27.2% yoy to $421 mln vs $391.66 mln estimate; sees FY14 EPS of $2.10-2.23 ex items vs $2.06 estimate, rev growth of 21-23% (~$1.719-1.747 bln) vs $1.68 bln estimate
- ISRG (380.77 -9.84%): Reported Q1 earnings of $1.13 per share, revs fell 24.0% yoy to $464.7 mln vs $465.07 mln estimate; target lowered to $515 from $555 at ISI Group, to $465 from $595 at Jefferies, to $443 from $490 at Leerink Partners, to $403 from $423 at Canaccord Genuity, to $470 from $525 at WallachBeth
- VMW (95.5 -9.18%): Beat quarterly EPS by $0.01 ($0.80 vs $0.79 estimate), revs rose 14.2% yoy to $1.36 bln vs $1.35 bln estimate; sees Q2 revs of $1.425-1.625 bln vs $1.44 bl estimate; reaffirmed FY14 revs of $5.94-6.10 bln vs $6.03 bln estimate
- ERIC (12.26 -5.69%): Missed quarterly EPS by SEK 0.03 (SEK 0.90 vs SEK 0.93 estimate), revs fell 8.7% yoy to SEK 47.5 bln vs SEK 51.4 bln estimate
- SPWR (32.16 +9.50%): Announced it will team up with Google to finance $250 mln in residential solar lease projects; upgraded to Buy from Underperform at BofA/Merill; upgraded to Buy from Hold at Deutsche Bank
- WWD (45.15 +9.06%): Beat quarterly EPS by $0.15 ($0.66 vs $0.51 estimate), revs fell 0.6% yoy to $482.5 mln vs $491.07 mln estimate; reaffirmed FY14 EPS of $2.10-2.30 vs $2.16 estimate, revs of $1.95-2.05 bln vs $2 bln estimate
- MAN (84.24 +8.17%): Beat quarterly EPS by $0.18 ($0.86 vs $0.68 estimate), revs rose 2.9% yoy to $4.9 bln vs $4.83 bln estimate; sees Q2 EPS of $1.26-1.34 ex items vs $1.21 estimate
- CREE (51.99 -10.44%): Beat quarterly EPS by $0.01 ($0.39 vs $0.38 estimate), revs rose 16.1% yoy to $405.2 mln vs $407.45 mln estimate; gross margin decreased 50 basis points from prior quarter; sees Q4 EPS of $0.38-0.44 ex items vs $0.44 estimate, revs of $430-460 mln vs $434.70 mln estimate; target lowered to $57 from $59 at Northland Capital; target lowered to $62 from $66 at UBS
- IGT (12.65 -10.13%): Beat quarterly EPS by $0.01 ($0.20 vs $0.19 estimate), revs fell 14.5% yoy to $512.8 ml vs $495.41 mln estimate; reaffirmed FY14 EPS of $1.00-1.10 ex items vs $1.03 estimate
- FDML (16.69 -10.12%): Missed quarterly EPS by $0.06 ($0.27 vs $0.33 estimate), revs rose 7.2% yoy to $1.78 bln vs $1.81 bln estimate
11:56 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (145) outpacing new lows (18) (:SCANX) : Stocks that traded to 52 week highs: AAV, ABG, ALK, ANDE, APH, ARCW, ARCX, ASX, ATO, AVA, AWK, BANF, BAS, BHI, BIG, BIOF, BKH, BRK.A, BRK.B, BXE, BXP, CAT, CBPO, CFX, CHDX, CJES, CLCT, CLR, CNI, CNL, CRK, CSL, CSTM, CWEI, CXDC, CXP, DAL, DOV, DPS, DVCR, DVN, DY, DYN, EDE, EDN, EGAS, ENBL, ENG, EOG, EQM, EQT, ERF, ESTE, EXH, FN, FTK, GFN, GGAL, HA, HAL, HAR, HES, HIL, HP, ICGE, IRS, JJSF, KEG, KFS, KND, LAMR, LSI, MAR, MDU, MEMP, MEP, MINI, MPET, MPLX, MRH, MTDR, MTR, MU, NBR, NS, NSH, NVS, OCLR, PAC, PDS, PEBO, PES, PF, PFIE, PPC, PPL, PSX, QTS, R, RDNT, RE, RES, REV, RHI, RHP, RNR, RRC, RUBI, SAIC, SAL, SANM, SBSI, SD, SGY, SKX, SLB, SLCA, SLGN, SNA, SPCB, STAA, STS, SU, SWKS, SWN, TI, TNP, TOT, TPC, TRGP, TTI, UGI, UHAL, UNT, UPL, UTSI, VLP, VVC, WBC, WES, WFT, WRES, XEC, XEL, YUM
Stocks that traded to 52 week lows: AMRK, AQXP, AXGN, CACH, CREE, CTC, DARA, FLXN, IGT, INGN, LQDT, PBPB, QSII, SOQ, TGE, ZA, ZIXI, ZNH
ETFs that traded to 52 week highs: DBA, DIG, DVY, GULF, IEO, IGE, IOO, IXC, IYE, IYT, JO, MES, OIH, XES, XLE, XOP
ETFs that traded to 52 week lows: none
11:56 am European Markets Closing Prices (:SUMRX) : European markets are now closed; stock markets across Europe performed as follows:
- UK's FTSE:-0.1%
- Germany's DAX:-0.6%
- France's CAC:-0.7%
- Spain's IBEX:-0.1%
- Portugal's PSI:-1.2%
- Italy's MIB Index:-1.2%
- Irish Ovrl Index:-0.7%
- Greece ATHEX Composite: -2.4%
11:49 am Cracker Barrel announced preliminary results indicate Cracker Barrel shareholders overwhelmingly reject Biglari's proposals at Special Meeting (CBRL) : Co announced that, based on the estimates of its proxy solicitor, preliminary results from its Special Meeting of Shareholders indicate that shareholders overwhelmingly rejected both non-binding advisory proposals put forward by Biglari Capital Corp. and other affiliates of Biglari Holdings (BH). This defeat marks the fourth consecutive contest that proposals put forward by Biglari Capital have been soundly rejected by a majority of shareholders.
Preliminary results indicate that approximately 70% of the shares voted - including more than 92% of the shares voted by shareholders other than Biglari Capital - were cast against both proposals. Proposal 1 called for the Board to immediately pursue all potential extraordinary transactions, including the sale of the Company; while Proposal 2 called for the Board to take any action necessary to amend the Tennessee Business Corporation Act to permit Biglari Capital to engage in an extraordinary transaction with the Company.
11:49 am Prothena's NEOD001 demonstrates encouraging cardiac biomarker responses in ongoing Phase 1 study in patients with immunoglobulin Light chain (AL) amyloidosis (PRTA) : Co announced that an abstract was published by the XIV International Symposium on Amyloidosis (:ISA) and described interim data from an ongoing Phase 1 study of NEOD001, a monoclonal antibody in clinical development for the treatment of patients with AL amyloidosis and persistent organ dysfunction, as of the abstract submission date. Updated data will be presented for the first time at ISA in Indianapolis, Indiana.
- The interim data demonstrate that NEOD001 was generally safe and well-tolerated at the doses studied. In addition, NEOD001 demonstrated acceptable pharmacokinetic properties and immunogenicity was not observed in any patient. The most frequently reported adverse events were musculoskeletal (N=4), infection (N=4), and fatigue (N=3). All adverse events were mild to moderate and no dose limiting toxicities have been observed. A total of three patients had discontinued the trial at the time of abstract submission: one due to hematological progression, one due to organ progression and one due to withdrawal of consent.
- Of the 15 patients enrolled in the study at the time of abstract submission, 9 patients (56%) had pre-specified baseline levels of the N-terminal prohormone of brain natriuretic peptide (NT-proBNP) that were = 650 pg/mL (required baseline level for evaluation) and at least one post-baseline NT-proBNP determination. Of those 9 patients, one patient met the progression criteria based on an increase of NT-proBNP, and the remaining 8 patients either met the response criteria based on a decrease in NT-proBNP or were considered stable. Specifically, 5 of 9 (56%) patients had NT-proBNP levels that decreased to a level that met pre-defined response criteria, 3 of 9 (33%) patients had stable NT-proBNP levels, and 1 of 9 (11%) patients showed an increase in NT-proBNP levels in a manner that met pre-defined progression criteria.
11:35 am Lamar Advertising also guides FY14 (LAMR) :
- Projected Earnings Per Diluted Share: $2.81 to $2.91
- Projected Adjusted Funds From Operations (:AFFO) Per Diluted Share: $4.03 to $4.13
- 2014 Expected Annual Dividend Per Share (includes non-REIT E&P distribution of $40 million): $2.50
- "We expect to invest approximately $100 million in total capital expenditures in 2014, consisting of approximately $45 million to acquire new assets that we expect will enhance revenues and the remaining $55 million for maintenance of existing assets and the acquisition of operating equipment necessary for the business."
11:31 am Lamar Advertising announces receipt of IRS private letter ruling; letter confirms co's income from renting space on such outdoor advertising displays qualifies as rents from real property for REIT purposes (LAMR) : Co announced that it has received its requested private letter ruling from the IRS regarding certain matters relevant to its intended election to be taxed as a real estate investment trust (:REIT) under the Internal Revenue Code of 1986, as amended. As previously announced, Lamar intends to make an election under 1033(g)(3) of the Code to treat its outdoor advertising displays as real property for tax purposes. The private letter ruling confirms, among other matters, that Lamar's income from renting space on such outdoor advertising displays qualifies as rents from real property for REIT purposes. Lamar's conversion to REIT status is expected to be effective as of January 1, 2014.
11:29 am S&P -4 slides back to lower end of tight range (:TECHX) : The index held near first level support (1875/1874 The Technical Take) in post data trade and stabilized. The bounce stalled near the flat line and 50% retrace of the Tues/Wed pullback with it back hovering in the lower end of this morning's tight trade range. Bank KBE, Reg Bank KRE, Finance XLF, Casino BJK, Restaurant have displayed some relative weakness in recent trade.
11:19 am Life Partners Holdings announces favorable court ruling in fraud and insider trading case (LPHI) : Co announced today that an Austin, Texas Federal court has denied the Securities and Exchange Commission's motion for reconsideration of the Court's prior order, which held that the SEC failed to prove any of its fraud claims against Life Partners and its CEO, Brian Pardo, and General Counsel, Scott Peden. That ruling, along with jury findings in February, cleared Life Partners, Mr. Pardo and Mr. Peden of all securities fraud and insider trading accusations. In a brief order denying the SEC's motion for reconsideration and for permission to amend its pleadings, the Court stated, "Nothing in Plaintiff's (SEC's) filings calls into question the soundness of the Court's previously issued Order. . . . Plaintiff has not and cannot demonstrate why allowing it to amend its complaint at this late stage in the proceedings would be appropriate."
The ruling does not affect the jury's findings against Life Partners relating to books and records compliance issues and certification by the CEO on the company's financial statements, none of which involve fraud or knowingly or recklessly misleading shareholders.
11:17 am NuStar Energy Correction: Beats by $0.01, beats on revs; reaffirms FY14 (NS) : Reports Q1 (Mar) earnings from continuing operations of $0.40 per share, $0.01 better than the Capital IQ Consensus of $0.39; revenues fell 14.9% year/year to $849.2 mln vs the $757.83 mln consensus.
- Q1 distributable cash flow from continuing operations available to limited partners of $77.9 million, or $1.00 per unit, compared to 2013 first quarter distributable cash flow from continuing operations available to limited partners of $57.1 million, or $0.73 per unit. First quarter earnings before interest, taxes, depreciation and amortization (:EBITDA) from continuing operations was $126.7 million compared to first quarter 2013 EBITDA of $94.1 million.
- "NuStar's second quarter EPU and EBITDA results as well as our coverage ratio should also exceed last year's second quarter results. EBITDA results in our pipeline and fuels marketing segments are expected to be higher than last year's second quarter primarily due to increased pipeline throughputs and improved results in our bunkering operations. Second quarter storage segment results are expected to be down slightly compared to the same quarter last year."
- "Reaffirming the 2014 guidance we provided in February, we expect our pipeline segment EBITDA to be $40 to $60 million higher than 2013 and our storage segment adjusted EBITDA to be comparable to 2013. We expect our fuels marketing segment to generate EBITDA in the range of $10 to $30 million. Based on these projections, we expect to start covering our distributions in the second half of 2014 and for the full year 2014," Barron said. Barron went on to say, "We expect to spend $350 to $370 million on internal growth projects during 2014, the majority of which will be spent on projects in our pipeline segment. Our 2014 reliability capital spending remains unchanged, and is expected to be in the range of $35 to $45 million."
- Earlier we compared GAAP EPS of $0.36 to the $0.39 adjusted estimate; that comment has been removed.
11:10 am Currency Commentary: DXY Holds Ground After Weak Economic Data (:SUMRX) :
- The Dollar Index continues to trade in a tight range below the 80 level. Economic news was poor this morning as markets witnessed a big miss on New Home Sales, a drop in mortgage applications, and a miss in a preliminary April manufacturing survey. This has led to some selling in the greenback but it did not break it out of its recent range.
- The euro rallied back over 1.38 following the preliminary looks at PMI. The Eurozone PMI came in at a 35-month high as it outpaced expectations. Germany was a key driver while France underperformed expectations. The news points to continued improvement in the Eurozone economy but market participants are still looking at April 30 and the next release of inflation data as the key driver for the ECB.
- The pound has pulled back from its recent highs following the release of the Bank of England minutes. BoE members were on the same page in that they viewed the economic recovery to be on target. But there was a difference of opinion on the amount of slack in the economy and the outlook for inflation. This difference of opinion was viewed as being slightly more dovish by markets and the pound pulled back from its recent run. Sterling has been able to firmly hold the 1.6770 area on this pullback.
- The yen has been able to climb back into the high end of the 102 level but overall the moves remain uneventful. Some of the push higher was aided by a weaker than expected China PMI figure released overnight. Tonight the country will release its latest inflation data (FOREX, BONDX).
11:01 am Banner receives regulatory approval for branch acquisitions (BANR) : Co announced that Banner Bank has received regulatory approval for the acquisition of six branches in Oregon from Sterling Savings Bank, together with approximately $226 million in deposits and $95 million in loans. Five of the six branches are located in Coos County, Oregon and the sixth branch is located in Douglas County. The acquired branches collectively will capture a 28% share of the Coos County market.
11:00 am Altair Nanotechnologies reports receiving a Nasdaq non-compliance letter (ALTI) : Co reported that it received a non-compliance letter from the Nasdaq Stock Market . On April 16, 2014, Altair received a letter from Nasdaq indicating that Altair was not in compliance with the continuous listing rules due to its failure to file its Annual Report on Form 10-K for the year ended Dec 31, 2013 on a timely basis. Co has 60 days to submit a plan to regain compliance and if the plan is accepted, Altair could be granted up to 180 calendar days from the Annual Report's due date, or until Oc 13, 2014, to regain compliance. Coexpects to file its Annual Report as soon as practical and expects to submit a plan to regain compliance within the timelines prescribed by the letter and Nasdaq rules.
10:48 am Dow -1 and S&P -0.6 climb back near flat line -- Nasdaq Comp -15 (:TECHX) :
10:45 am Gentex Correction: GNTX +3% after beating Q1 estimates, guiding Q2 rev in-line (GNTX) : Reports Q1 (Mar) earnings of $0.47 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.45; revenues rose 24.6% year/year to $335.7 mln vs the $324.67 mln consensus.
- The gross profit margin in the first quarter of 2014 was 39.1%, compared with a gross profit margin of 34.7% in the first quarter of 2013.
- The improvement in the gross profit margin is due to the impact of the HomeLink acquisition, improvements in product mix, purchasing cost reductions, and the Company's ability to leverage fixed overhead costs, which were partially offset by annual customer price reductions.
Earlier we used the wrong base to calculate Q2 rev guidance and said it was below consensus; that comment has been deleted.
10:31 am American Intl subsidiary ILFC and Azul Brazilian Airlines sign agreement to lease five Airbus A350-900 and three A330-200 aircraft (AIG) : International Lease Finance Corporation (:ILFC), a wholly owned subsidiary of American International Group (AIG), announced that it has signed an agreement with Azul Brazilian Airlines (Azul) to lease five Airbus A350-900 and three A330-200 aircraft. The aircraft will be operated on the airline's new international routes from S o Paulo/Campinas airport to the U.S., which are expected to launch in early 2015.
10:31 am June crude oil falls slightly following inventory data; now down 0.1% at $101.65 (:COMDX) :
10:26 am Relative sector strength (:TECHX) : Sectors that are displaying some relative strength in recent trade include: Energy XLE, Oil Service OIH, Industrial XLI, Telecom IYZ (off early lows), Defense PPA, Retail XRT.
10:23 am Stock indices slightly extend push off post data lows -- Dow -9, S&P -1.6, Nasdaq Comp -22 (:TECHX) :
10:16 am Hugoton Royalty announces ruling in arbitration proceeding (HGT) : U.S. Trust, Bank of America Private Wealth Management, a division of Bank of America, N.A., as Trustee of the Hugoton Royalty Trust, announced receipt of the final arbitration ruling in the Trust's arbitration proceeding against XTO Energy.
On April 21, 2014, the three member panel of arbitrators delivered its unanimous ruling as follows: (i) awarding declaratory relief to the Trustee that the Fankhouser settlement, in whole or in part, is not a production cost under the conveyances governing the Trust's net profits interest, and therefore not chargeable to the Trust (ii) awarding permanent injunctive relief to the Trustee barring XTO Energy from treating the Fankhouser settlement, in whole or in part, as a production cost under the conveyances governing the Trust's net profits interest, or otherwise modifying or reducing the Trust's payments, now or in the future, based on the Fankhouser settlement, (iii) awarding the Trustee $6,110,961.71 from XTO Energy, comprised of: (a) $4,386,396 representing amounts withheld from the September and October 2012 Trust distributions; (b)$371,931.72 representing interest to December 18, 2013; (c) $1,167,563 of Trustee attorneys' fees; (d) $185,070.99 of Trustee arbitration expenses; (iv) awarding the Trustee interest on the $4,386,396 from December 18, 2013 until paid at $871.27 per day , and (v) ordering XTO Energy to reimburse the Trustee $117,984.13 for administrative fees and expenses of the American Arbitration Association and compensation and expenses of the arbitrators incurred by the Trustee.
10:09 am S&P -4.5 slightly extends morning pullback (SPY) : The index pulled back to first level support from The Technical Take at 1875/1874 in recent trade (session low 1873.91) and is attempting to stabilize. Watching 1876/1877 initially for a read on the strength of this bounce. The next level of interest below is at yesterday's bull gap at 1872/1871.
10:03 am Gamestop will begin taking customer pre-orders for the Samsung (SSNLF) Galaxy Tab 4 on April 24, at all U.S. GameStop locations and online (GME) : Co announced it will begin taking customer pre-orders for the newly announced Samsung (SSNLF) Galaxy Tab 4 on April 24, at all U.S. GameStop locations and at www.GameStop.com. Featuring Android 4.4 Kit Kat and a 1.2GHz quad core processor, the new Tab 4 will be available in three sizes, 7-inch(8GB), 8-inch(16GB), and 10.1-inch(16GB) priced at $199.99, $269.99, and $349.99 respectively. Customers that pre-order the new tablet will be able to pick it up on May 1 when it goes on sale.
10:02 am Solitario Resources engages SRK Consulting (U.S.) to complete a National Instrument 43-101 compliant Technical Report on Resources on its Bongara Zinc Project in Peru (XPL) : Co announces that it has engaged SRK Consulting (U.S.) Inc. ("SRK") to complete a National Instrument 43-101 compliant Technical Report on Resources on its Bongar Zinc Project in Peru. The Bongar Zinc Project is currently undergoing advanced technical evaluation by our partner Votorantim Metais ("Votorantim"), the fifth largest zinc producer in the world. SRK is an independent, international consulting practice specializing in engineering studies and assessments of mining assets and mineral projects.
The Bongar Zinc Project in northern Peru has been actively explored and studied since Solitario made its initial discovery in 1996. To date, 487 exploration core holes have been completed totaling 117,380 meters. In addition to exploration and delineation drilling, additional work such as metallurgy, geotechnical drilling and hydrogeologic studies, preliminary infrastructure planning, geology and resource modeling and access road construction have been conducted under the management of Votorantim. In 2011, Votorantim initiated tunneling in the San Jorge zone to provide detailed drilling information to upgrade resources. The underground drilling at San Jorge was completed in 2013.
10:01 am Stock indices slip to new session lows after data -- Dow -28, S&P -4.1, Nasdaq Comp -24 (:TECHX) :
9:49 am Relative weakness in Biotech IBB, Health XLV, Pharma PPH in recent action (:TECHX) :
9:42 am Opening Market Summary: Little Change in Early Action (:WRAPX) : The major averages began the session not far below their flat lines as five sectors displayed early gains, while five opened lower.
On the upside, consumer discretionary (+0.2%), energy (+0.5%), and utilities (+0.7%) have taken the early lead, while technology (-0.6%), health care (-0.3%), and telecom services (-3.1%) lag.
With participants receiving a handful of quarterly reports from the biotech space, the iShares Nasdaq Biotechnology ETF (IBB 233.31, -1.41) holds an early loss of 0.5% after Amgen (AMGN 116.01, -3.29) and Biogen (BIIB 307.98, +0.78) missed expectations, while Gilead Sciences (GILD 75.04, +2.18) beat.
Also of note, the weakness in the telecom services sector is due to a 4.1% loss in the shares of AT&T (T 34.81, -1.48) after the company reported above-consensus results.
The New Home Sales report for March (Briefing.com consensus 455K) will be released at 10:00 ET.
9:40 am Early limited downticks for stock indices -- Dow -4, S&P -1.8, Nasdaq Comp -11 (:TECHX) : Sectors on the defensive include: Software IGV, Internet FDN, Networking IGN, Technology XLK (which have led to Nasdaq underperformance) along with Telecom IYZ.
9:27 am Freddie Mac will forego issuing a Reference Notes security on its April 23, 2014 announcement date (FMCC) :
9:26 am On The Wires (:WIRES) :
- San Luis Obispo, Calif. selected Cree (CREE) to help improve the city's sustainability efforts. City officials collaborated with Pacific Gas and Electric (PCG) to replace more than 2,000 outdated HPS street lights with Cree XSP Series LED street lights.
- New Continuum has selected converged packet optical solutions from Ciena (CIEN) to connect its data center in Chicago's western suburbs to key regional exchange points including 350 Cermak in Chicago.
- Starwood Hotels & Resorts Worldwide (HOT) announced the opening of Aloft Calgary University, the first of its Aloft brand hotels in western Canada.
- Synopsys (SNPS) and United Microelectronics (UMC) announced that UMC has certified Synopsys' IC Validator product for physical verification on UMC's 28-nanometer process.
- Terreno Realty (TRNO) acquired an industrial property located in Inglewood, California on April 22, 2014 for a purchase price of ~ $3.5 mln.
- Luxoft (LXFT) has been recognized by prominent independent technology research firms in an array of areas.
- HealthSouth (HLS) and Mountain States Health Alliance signed an agreement to form a JV to own and operate the James H. & Cecile C. Quillen Rehabilitation Hospital in Johnson City, Tenn.
- Lockheed Martin's (LMT) Group 1 family of unmanned aircraft systems is migrating to enhanced automation capabilities using its Kestrel "Fly Light" flight control systems and mobile Ground Control Station software.
- Mentor Graphics (MENT) announced that Alps Electric has selected the Analog Characterization Environment product, which was previously a Berkeley Design Automation product, for characterization of its complex mixed-signal and sensor ICs.
- Clean Diesel Technologies (CDTI) has received an expanded verification from the California Air Resources Board for its Purifilter EGR emission reduction system.
- Banner (BANR) announced that shareholders approved all proposals, including the adoption of the 2014 Omnibus Incentive Plan, and re-elected all director nominees at its 2014 Annual Meeting held April 22, 2014 in Walla Walla, Washington.
- Lexia Learning, a Rosetta Stone (RST) co, announced mid-year results from the Kansas Reading Initiative in which the use of the Lexia Reading Core5 program has driven statistically significant gains in student achievement, with the number of students working on material at/above grade level doubling from 36% at the beginning of the school year to 72% at the mid-year point.
- Bally Technologies (BYI) announced Majestic Star Casino & Hotel in Gary, Ind., has selected Bally's award-winning iGaming platform.
- XL Group's (XL) reinsurance segment announced the establishment of new operations in Dubai, UAE, to serve the MENA market and act as a regional hub for the business.
- Boingo Wireless (WIFI) announced the co's selection as neutral host wireless network partner by John Wayne Airport.
- Tengasco (TGC) announced that the Board of Directors has approved the relocation of the co's principal offices from Knoxville, Tennessee to Denver, Colorado. The relocation is expected to be completed by June 30, 2014.
9:23 am Grupo Aeroportuario Del Sureste reports Q1 results (ASR) :
- EBITDA2 increased by 3.68% to Ps.951.03 million
- Total passenger traffic was up 6.16%
- Total revenues increased by 0.63%, reflecting increases of 3.04% in aeronautical revenues and 11.32% in non-aeronautical revenues, partially offset by a decline of 76.65% in construction services revenues
- Commercial revenues per passenger increased by 5.00% to Ps.77.95
- Operating profit increased by 2.93%
- EBITDA margin rose to 68.76% from 66.74% in 1Q13.
9:21 am Osisko Mining intersects 2.85 g/t au over 110 metres at odyssey north (OSKFF) :
- The center of this significant intersection of 110.2 metres at 2.85 g/t Au cut the Odyssey North zone at a true depth of approximately 1150 metres and indicates a true with of 70 metres. It is located 290 below historical hole EM90-23A (51.8 m averaging 1.83 g/t Au) and 130 m below and 140 m east of historical hole EM90-21 (70.1 m averaging 2.12 g/t Au). Data from these three holes and historic holes indicate a tabular body dipping 70 degrees south with a true average width of 20 to 70 metres. ODY11-2404 also intersected a 0.5 metre-wide, visible gold-bearing sheared gabbro beyond the north porphyry contact that assayed 105 g/t Au (uncut) over one metre. This auriferous shear constitutes a new discovery whose extent is presently unknown.
9:19 am Cullen/Frost misses by $0.02 (CFR) : Reports Q1 (Mar) earnings of $0.96 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.98.
- For the first quarter of 2014, return on average assets and return on average common equity were 1.00 percent and 9.97 percent, respectively, compared to 1.01 percent and 9.49 percent for the same period of 2013. Net interest income on a taxable-equivalent basis for the first quarter totaled $187.8 million, an increase of 8.7 percent over the $172.8 million reported for the first quarter of 2013.The increase was driven primarily by an increase in the average volume of earning assets.
- The net interest margin was 3.42 percent for the first quarter, compared to 3.45 percent for the first quarter of 2013 and 3.39 percent for the fourth quarter of 2013.
- Non-interest income for the first quarter of 2014 was $77.5 million, compared to the $77.8 million reported a year earlier. Trust and investment management fees increased $3.5 million, or 16.1 percent, to $25.4 million, from the $21.9 million reported in the first quarter of 2013. Most of this increase was due to investment fees, which were up $2.7 million from last year's first quarter.
- GG announced that the minimum tender condition of its offer for all of the issued and outstanding shares of Osisko Mining (OSKFF) was not met by the expiry time of 11:59 p.m. EDT on April 22, 2014.
- Accordingly, Goldcorp's offer expired in accordance with its terms and Goldcorp did not take up any of the Osisko shares deposited pursuant to the offer.
- All Osisko shares deposited to the offer will be returned to the Osisko shareholders who deposited them.
9:16 am BSD Medical receives approval to transfer listing to NASDAQ capital market (BSDM) :
- Co announced that the Company received approval from The NASDAQ Stock Market to transfer its stock listing from The NASDAQ Global Market to The NASDAQ Capital Market, effective with the opening of the market on April 25, 2014.
- The Company's common stock will continue to trade under the symbol 'BSDM.'
- The NASDAQ Capital Market is a continuous trading market that operates in substantially the same manner as The NASDAQ Global Market.
9:15 am S&P futures vs fair value: -0.90. Nasdaq futures vs fair value: -1.50. (:WRAPX) : The stock market is on track to begin today's session on a flat note, with the S&P 500 looking to continue its climb after gaining 3.5% over the past six sessions. Although the market is gearing up for a subdued start, quarterly earnings that have been received since yesterday's closing bell were mostly better than expected. Dow components Boeing (BA 130.99, +3.44) and Procter & Gamble (PG 80.50, -0.10) both reported above-consensus results, but only Boeing sports a pre-market gain at this juncture.
Elsewhere, biotechnology is expected to receive significant attention after Amgen (AMGN 116.05, -3.25), Biogen (BIIB 309.80, +3.60), and Gilead Sciences (GILD 75.40, +2.54) reported their results. Amgen and Biogen missed earnings estimates while Gilead reported a strong quarter.
Treasuries display modest gains to start the session, with the 10-yr yield down two basis points at 2.69%.
9:12 am Blueknight Energy increases quarterly distribution by 2.8% to $0.13 per common unit from $0.1265 per common unit (BKEP) :
9:09 am Tesoro Logistics LP increases quarterly distribution by 4% to $0.59 per limited partnership unit from $0.565 per unit (TLLP) :
9:07 am Caesars Entertainment and Flaum Management to pursue New York State Gaming license in Orange County (CZR) : Caesars has reached a preliminary agreement on key terms for a ground lease on land in Woodbury under the control of developer David Flaum. Caesars submitted its application fee to the New York State Gaming Commission. The company will announce additional details about its proposed project in the weeks ahead. Caesars and Flaum are in the process of finalizing definitive agreements between them, and will work together to secure the required permits and approvals associated with the proposed project.
9:06 am PacWest Bancorp beats by $0.07 (PACW) : Reports Q1 (Mar) earnings of $0.55 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.48.
- Our net interest margin (NIM) for the first quarter of 2014 was 5.95%, compared to 5.41% for the fourth quarter of 2013. The 54 basis point increase in NIM was driven by a 53 basis point increase in our earning asset yield. The increase in the earning asset yield was due to the 65 basis point increase in the loan and lease yield.
- "We had a very successful first quarter, posting net earnings of $25.1 million and a net interest margin of 5.95%. Although loan and lease growth was moderated in the first quarter to augment liquidity in anticipation of the CapitalSource merger, we were able to maintain our core loan yield at 6.68% due to the structure and mix of new loan originations. Our credit quality metrics remain at high levels. The slight increase in classified and nonaccrual non-PCI loans and leases results from our conservative evaluations and presents no expected loss content. The Company's allowance for credit loss coverage ratio increased 2 basis points to 1.75% at the end of March."
9:06 am DFC Global: Royal Capital Issues Letter to DFC Global Board of Directors; Announce Intention to Vote 'Against' All Proposals at Upcoming Special Meeting (DLLR) : Yesterday, Royal sent a letter to the Board of Directors of DFC Global Corp. outlining its intention to vote "AGAINST" all proposals at the upcoming Special Meeting of Shareholders. The letter highlights RCM's perception of deficiencies in the sale process undertaken by the Company and the resulting below fair value proposed sale price.
9:06 am Knight Transportation beats by $0.01, reports revs in-line (KNX) : Reports Q1 (Mar) earnings of $0.23 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.22; revenues rose 5.9% year/year to $249.2 mln vs the $247.72 mln consensus.
''Revenue per tractor increased 5.1%, YoY, as a result of a 4.9% improvement in revenue per loaded mile, a 4.2% increase in our length of haul, a 140 basis point improvement in our non-paid empty mile percentage, and a 1.3% decrease in miles per tractor. In Q1 of 2014 our trucking businesses improved their operating ratio to 82.0% from 85.3% in the same quarter last year. Our brokerage business continues to grow rapidly and increased revenue 94.4%, increased gross margin 91.2%, and increased operating income 89.2%, when compared to the same quarter last year. As the trucking environment remains strong, we feel well positioned to continue to execute our model and bring needed capacity to our customers, quality careers to our driving associates, and superior returns to our shareholders.''
"In Q1, oper income in our trucking businesses improved 25.3% while our revenue, excluding trucking fuel surcharge, grew 2.6%. We experienced this growth despite operating 2.2% fewer average tractors, year over year. Our specific efforts to improve yield, strengthen our network, and drive operational efficiencies have yielded positive results. We experienced a 4.2% longer length of haul and reduced our non-paid empty mile percentage to an all-time low 9.6%. The industry continues to be faced with multiple inflationary pressures, including rising driver pay, increased regulation, additional maintenance cost associated with the 2010 EPA emission engines, and rising equipment cost. We continue to intensify our cost control efforts in order to manage these pressures."
"Our brokerage business continues to show meaningful growth as we gain market share, source additional capacity, and strategically align our service offering with the supply chain needs of our customers. Our other businesses within our logistics segment, including our intermodal and sourcing businesses, underperformed during the first quarter, which contributed to the deterioration in our year over year operating ratio for the logistics segment.
9:04 am Entertainment Gaming Asia receives NASDAQ listing deficiency notice (EGT) : Co announced that on April 17, 2014, the Company received a notice from The NASDAQ Stock Market LLC indicating that it is not in compliance with the minimum bid price requirement for continued listing set forth in Listing Rule 5550(a)(2), which requires listed securities to maintain a minimum bid price of $1.00 per share.
9:04 am Stantec signs letter of intent to acquire JBR Environmental Consultants (STN) : Co announces it will bolster its growing environmental service presence and capabilities across the western US by acquiring JBR Environmental Consultants. JBR is a 140-person full-service environmental consulting firm, operating in 12 western US locations. This transaction is anticipated to close in May 2014.
9:04 am Siemens AG: FDA clears siemens SOMATOM force CT system (SI) :
- Co announced that the FDA has cleared the SOMATOM Force computed tomography (:CT) system -- the next generation in dual source CT. With two sets of Siemens' most innovative X-ray tubes and detectors, the SOMATOM Force extends advanced imaging to all patients, including some of the most challenging: young children, patients with renal insufficiency, and patients who are unable to hold their breath.
- The SOMATOM Force overcomes imaging limitations, making low-dose CT available for an even broader array of patients. With the unparalleled power reserves of its revolutionary Vectron tube, the SOMATOM Force delivers routine adult imaging with fast, low-dose protocols.
9:03 am AOL and Miramax announce deal for motion pictures (AOL) : AOL announced an agreement to bring full-length films to U.S. viewers. Content will now be available to stream free-of-charge across all AOL On experiences including mobile, desktop, and connected devices, all viewed within the Miramax channel. AOL viewers will soon have the option of adding critically acclaimed films to their regular rotation of news and entertainment video. Additionally, Miramax's premium content offering will be refreshed monthly.
9:01 am Baxter Announces FDA Approval of ADVATE with BAXJECT III reconstitution system (BAX) : Co announced that the FDA has approved a new reconstitution system for ADVATE. ADVATE and the diluent come pre-packaged in the new BAXJECT III reconstitution system. The new reconstitution system was developed to reduce the number of steps in the reconstitution process for hemophilia A patients and caregivers, compared to the previous process with the BAXJECT II needle-less transfer device. The new system will be commercially available with ADVATE in the coming months. Baxter has also filed for approval of ADVATE with BAXJECT III system in Europe and expects to launch in 2015.
9:01 am Amazon.com and HBO agree to multi-year HBO programming deal (AMZN) :
- Co announced a content licensing agreement with HBO, making Prime Instant Video the exclusive online-only subscription home for select HBO programming.
- The collection includes shows such as The Sopranos, Six Feet Under, The Wire, Big Love, Deadwood, Eastbound & Down, Family Tree, Enlightened, Treme, early seasons of Boardwalk Empire and True Blood, as well as mini-series like Band of Brothers, John Adams and more.
- In addition, HBO GO will become available on Fire TV, targeting a launch by year-end. HBO GO is HBO's authenticated streaming service offering subscribers access to over 1,700 titles online including every episode of new and classic HBO series, as well as HBO original films, miniseries, sports, documentaries, specials and a wide selection of blockbuster movies.
9:00 am Medley Capital priced 6 mln shares of its common stock at a public offering price of $13.25 per share (MCC) :
8:57 am Medley Capital prices public offering of 6 mln shares of its common stock at $13.25 per share (MCC) :
8:57 am S&P futures vs fair value: -0.50. Nasdaq futures vs fair value: flat. (:WRAPX) : The S&P 500 futures trade less than a point below fair value.
Asian markets ended on a mixed note after the release of China's HSBC Manufacturing PMI, which ticked up to 48.3 from 48.0 (expected 48.4). Even though the reading improved, it remained in contraction (below 50) for the fourth month in a row.
In other regional data, Australia's CPI rose 0.6% quarter-over-quarter (expected 0.8%, previous 0.8%), while the year-over-year reading increased 2.9% (consensus 3.2%, prior 2.7%). Also of note, Trimmed Mean CPI rose 0.5% quarter-over-quarter (consensus 0.7%, previous 0.9%). New Zealand's Visitor Arrivals fell 3.0% month-over-month (prior 1.8%), while Credit Card Spending jumped 8.1% year-over-year (last 6.0%). Singapore's CPI rose 1.2% year-over-year (consensus 1.1%, previous 0.4%).
- Japan's Nikkei gained 1.1%, closing on its high with support from exporters. Fujitsu, NEC, and Mazda Motor gained between 3.4% and 4.0%.
- Hong Kong's Hang Seng lost 1.0% after being pressured by consumer and telecom names. Belle International, China Unicom Hong Kong, and China Mobile lost between 2.0% and 4.9%. Casino names finished among the leaders with Galaxy Entertainment and Sands China up 1.5% and 2.5%, respectively.
- China's Shanghai Composite shed 0.3%, trimming its losses into the close. Growth sensitive names outperformed with Fushun Special Steel and China Vanke up 6.2% and 0.8%, respectively.
Participants received several data points. Eurozone Manufacturing PMI rose to 53.3 from 53.0 (expected 53.0), while Services PMI improved to 53.1 from 52.2 (consensus 52.4). Germany's Manufacturing PMI increased to 54.2 from 53.7 (expected 54.0), while Services PMI jumped to 55.0 from 53.0 (consensus 53.4). French Manufacturing PMI fell to 50.9 from 52.1 (expected 51.9), while Services PMI decreased to 50.3 from 51.5 (expected 51.4). Great Britain's CBI Industrial Trends Orders fell to -1 from 6 (consensus 7), while Public Sector Net Borrowing came in at GBP4.86 billion (expected GBP9.10 billion, previous GBP7.00 billion).
- Great Britain's FTSE is lower by 0.1%. ARM Holdings weighs, trading lower by 3.3% after missing bottom-line estimates. On the upside, Associated British Foods is higher by 8.9%.
- Germany's DAX holds a loss of 0.1%. Infineon Technologies is the weakest performer, down 1.2%. Insurer Allianz outperforms with a gain of 0.7%.
- In France, the CAC trades down 0.3% with defense contractor Safran leading the retreat with a 3.4% loss.
8:53 am On The Wires (:WIRES) :
- Markley Group announced today that Iron Mountain (IRM) has joined the co's Boston Internet Exchange.
- Rovi (ROVI) has entered into a new license agreement with NTT DOCOMO (NTDMF) for the use of Rovi's video discovery and interactive program guide patents and technologies.
- SuperCom (SPCB) has been awarded 2 new contracts from an existing customer totaling $3.6 mln. The co expects to recognize the majority of the contracts' rev during the second half of 2014.
- 2U (TWOU) announced in partnership with the University of Southern California Rossier School of Education the launch of its first doctorate degree delivered online, a Doctor of Education in Organizational Change and Leadership.
- Intermolecular (IMI) announced that Epistar and Intermolecular have signed a multi-year extension of their existing collaborative development program and royalty-bearing IP licensing agreement to increase the efficiency and reduce the cost of Epistar's light emitting diode devices.
- Manhattan Associates (MANH) announced that Lacoste has selected Manhattan Associates' Enterprise Order Management solution to orchestrate its omni-channel retail operations and facilitate the co's continued growth.
- Protalix BioTherapeutics (PLX) announced that preclinical data on oral antiTNF (PRX-106) was accepted for presentation at the Digestive Disease Week Annual Meeting being held May 3-6 in Chicago, Illinois.
- Accenture (ACN) has been selected by Azure Power to implement an SAP enterprise resource planning solution to support and drive growth in its solar generation business.
8:51 am Boise Cascade misses by $0.11, misses on revs (BCC) : Reports Q1 (Mar) earnings of $0.14 per share, $0.11 worse than the Capital IQ Consensus Estimate of $0.25; revenues rose 3.0% year/year to $767.2 mln vs the $793.32 mln consensus.
"The first quarter presented unusually severe weather conditions in many parts of the country which reduced the demand for building materials, negatively impacted our operating costs, and, at times, disrupted rail and truck shipments to our customers. Lower commodity wood products prices, particularly structural panels, also made the year-over-year quarterly sales and earnings comparisons challenging. However, our sales activity is picking up as we move into the second quarter and we still believe the housing recovery will continue to progress in 2014."
8:43 am SunPower jumps to $31.80 on Google solar lease partnership (SPWR) :
8:42 am European Markets Update: FTSE -0.1%, DAX -0.2%, CAC -0.4% (:SUMRX) : Major European indices trade modestly lower after registering three consecutive gains. The Bank of England released the minutes from its latest meeting, which indicated unanimous support for continuing asset purchases at GBP375 billion.
Participants received several data points. Eurozone Manufacturing PMI rose to 53.3 from 53.0 (expected 53.0), while Services PMI improved to 53.1 from 52.2 (consensus 52.4). Germany's Manufacturing PMI increased to 54.2 from 53.7 (expected 54.0), while Services PMI jumped to 55.0 from 53.0 (consensus 53.4). French Manufacturing PMI fell to 50.9 from 52.1 (expected 51.9), while Services PMI decreased to 50.3 from 51.5 (expected 51.4). Great Britain's CBI Industrial Trends Orders fell to -1 from 6 (consensus 7), while Public Sector Net Borrowing came in at GBP4.86 billion (expected GBP9.10 billion, previous GBP7.00 billion).
- Great Britain's FTSE is lower by 0.1%. ARM Holdings weighs, trading lower by 3.3% after missing bottom-line estimates. On the upside, Associated British Foods is higher by 8.9%.
- Germany's DAX holds a loss of 0.2%. Infineon Technologies is the weakest performer, down 1.2%. Insurer Allianz outperforms with a gain of 0.7%.
- In France, the CAC trades down 0.4% with defense contractor Safran leading the retreat with a 3.4% loss.
8:37 am Avery Dennison misses by $0.01, misses on revs; guides FY14 EPS in-line (AVY) : Reports Q1 (Mar) earnings of $0.65 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.66; revenues rose 3.4% year/year to $1.55 bln vs the $1.57 bln consensus.
First Quarter 2014 Results by Segment
- Pressure-sensitive Materials (:PSM) - PSM segment sales increased ~6 percent. Within the segment, Label and Packaging Materials sales increased mid-single digits. Combined sales for Graphics, Reflective, and Performance Tapes also increased mid-single digits.
- Retail Branding and Information Solutions (:RBIS) - RBIS segment sales increased ~2 percent driven by increased demand from Europe-based retailers and brands.
The company repurchased 1.2 mln shares in the first quarter of 2014 at an aggregate cost of $59 mln.
Cost Reduction Actions
In the first quarter, the company realized ~$10 mln in savings from restructuring, and incurred restructuring costs of ~$7 mln. The company expects to incur cash restructuring costs of $45 mln in 2014.
Co issues in-line guidance for FY14, sees EPS of $2.90-3.20, excluding an estimated $0.30 per share for restructuring costs and other items, vs. $3.04 Capital IQ Consensus Estimate.
8:35 am SEI Investments beats by $0.02, misses on revs; Co raises stock repurchase program by an additional $200 mln, increase avail. authorization to ~$212 mln (SEIC) : Reports Q1 (Mar) earnings of $0.41 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.39; revenues rose 11.2% year/year to $302.4 mln vs the $305.45 mln consensus.
- In addition, on Tuesday, April 22, 2014, SEI's Board of Directors approved an increase in its stock repurchase program by an additional $200 million, increasing the available authorization under the program to ~$212 million.
- Revenue growth was primarily driven by higher Asset management, administration, and distribution fees from market appreciation and improved cash flows from new and existing clients.
8:34 am 3D Systems announces its Medical Modeling Virtual Surgical Planning technology has enabled surgeons to conduct complex surgical procedures on newborn and infant patients with more confidence in safety and success (DDD) : The technology allows surgeons to capture a digital model of the patient directly from an MRI or CT scan and work with 3DS' Medical Modeling experts to create a detailed surgical plan and then 3D print physical models and custom surgical guides from 3DS' biocompatible stereolithography ) materials
8:34 am RGS Energy announced agreement for 2.6 MW solar system in Massachusetts (RGSE) :
- Co announced agreement to develop a project that includes the design, installation and operation of a 2.6 megawatt (MW) ground-mount solar system near Auburn, Massachusetts.
- The contract win represents the first project financed by RGS Energy Asset Management, the commercial finance joint venture formed by RGS Energy and Altus Power America Management as announced in February.
8:34 am Gannett beats by $0.01, reports revs in-line (GCI) : Reports Q1 (Mar) earnings of $0.47 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.46; revenues rose 13.4% year/year to $1.40 bln vs the $1.41 bln consensus.
- "This was a terrific first quarter for Gannett, in which the fundamental changes we've been making to our business meaningfully impacted our top and bottom lines. An outstanding performance by our new broadcast stations fueled double-digit increases in both revenue and profitability in our Broadcast Segment and contributed to total company pro forma revenue growth and a robust level of free cash flow in the first quarter."
8:32 am Navios Maritime Acquisition announces time charter for two MR2 product tankers (NNA) :
- Co announced that the Nave Equinox and the Nave Pulsar have been chartered out to an investment grade counterparty for one year at a rate of $14,813 net per day plus a $2,000 per day premium when vessels are trading in ice. The vessels are expected to generate ~ $6.0 million of aggregate base EBITDA for the period of this charter assuming operating expense approximating current operating costs.
- Navios Acquisition has contracted 88.8% and 45.1% of its available days on a charter-out basis for 2014 and 2015, respectively.
8:32 am SunPower and Google (GOOG) team up to finance $250 million in residential solar lease projects (SPWR) : Co announced a new program that will provide financing to support ~ $250 mln of residential solar lease projects. Both companies are investing in the program, with Google committing up to $100 mln and SunPower committing ~$150 mln. Thousands of homeowners are expected to finance solar power systems through SunPower solar leases as a result of this program, joining ~20,000 Americans already leasing from SunPower.
8:32 am Protalix BioTherapeutics announces data on oral antitnf to be presented at digestive disease week 2014 meeting; the company expects to initiate clinical trials as part of the oral prx-106 development program during the next few months (PLX) :
- Oral PRX-106 is the Company's proprietary plant cell recombinant antiTNF fusion protein being developed as an orally-administered treatment for immune mediated disorders. In preclinical studies, oral PRX-106 alleviated immune-mediated hepatic symptoms and reduced interferon gamma levels in a concanavalin A inflammatory mouse model. Additionally, oral administration of PRX-106 alleviated immune mediated colitis in a well established mouse model for Inflammatory Bowel Disease, promoting serum levels of anti-inflammatory IL-10 and regulatory T-cells.
- The drug is also being tested for the treatment fatty liver and other immune mediated disorders. The Company expects to initiate clinical trials as part of the oral PRX-106 development program during the next few months.
8:31 am Global Partners increases quarterly distribution by ~ 2% to $0.6250 per unit from $0.6125 per unit (GLP) :
8:27 am S&P futures vs fair value: -1.60. Nasdaq futures vs fair value: -1.80. (:WRAPX) : U.S. equity futures remain under modest pressure even though most quarterly reports received since yesterday's closing bell have been better than expected. On that note, AT&T (T 35.60, -0.69), Boeing (BA 131.10, +3.55), Delta Air Lines (DAL 36.58, +1.63), Gilead Sciences (GILD 75.69, +2.83), and Yum! Brands (YUM 79.99, +2.51) all reported above-consensus earnings, but their reports have not stirred up market-wide buying interest.
Conversely, with index futures on the defensive, Treasuries are showing some modest strength. The benchmark 10-yr yield is currently lower by nearly two basis points at 2.70%.
8:26 am On The Wires (:WIRES) :
- SL Green Realty (SLG) announced an agreement to sell its leasehold interest in 673 First Avenue for $145 mln. Co also entered into a contract to acquire the fee interest at 635 Madison Avenue for $145 mln.
- Harmonic (HLIT) announced that Megacable has deployed an integrated headend solution from Harmonic to power its cable TV services.
- CTC Media (CTCM) and KupiVIP.ru announced the launch of an online shop "Sweet me", new women's clothing brand.
- Guidance Software (GUID) announced that Senior Information Technology Advisor Adam Sedgewick of NIST will be the featured presenter on a webinar hosted by Guidance Software called, "NIST Cybersecurity Framework: Implementing the Respond Function."
- Teradata (TDC) announced that Siemens AG (SI) will be able to enhance its manufacturing processes and product quality by deploying Teradata technology.
- Norsat International has received a reduction in its previously announced order from Harris (HRS) for its compact and efficient ATOM series Solid State Power Amplifiers from $6.3 mln to $3.15 mln. The reduction is due to the deferment of mission capabilities to a later date.
8:24 am On The Wires (:WIRES) :
- Motorola Solutions (MSI) is helping global manufacturer, Isola, build efficiency by implementing a corporate-wide wireless local area network.
- Axcelis Technologies (ACLS) received a follow-on order for the Optima HDx high current implanter from a leading chipmaker located in the Asia Pacific region.
- GE Capital (GE), Corporate Finance is administrative agent on $135 mln in senior secured financing for King's Hawaiian.
- GTT Communications (GTT) announced the opening of a new office in the metro New York area, bringing its total global presence to 10 offices in 6 countries.
- AbbVie (ABBV) announced that data evaluating a number of investigational compounds in the co's oncology pipeline will be presented at the upcoming 50th Annual Meeting of the American Society of Clinical Oncology, May 30 - June 3, in Chicago. Data accepted for presentation include the results from three clinical trials evaluating the safety and efficacy of ABT-199/GDC-0199 in chronic lymphocytic leukemia and non-Hodgkin's lymphoma and results of a Phase I clinical trial of ABT-414 for the treatment of glioblastoma multiforme.
- Johns Manville, a Berkshire Hathaway (BRK.B) co, has added commercial and residential mineral wool to its full spectrum of insulation products.
- Kelly Osbourne is spotting trends for PetSmart (PETM) and its new line of creative grooming services, Pet Expressions.
- Altera (ALTR) announced the demonstration of its FPGA technology based on Intel's (INTC) 14 nm Tri-Gate process. The 14 nm-based FPGA test chips incorporate key intellectual property components - transceivers, mixed-signal IP and digital logic - used in Stratix 10 FPGAs and SoCs.
- In partnership with the Missile Defense Agency, the U.S. Navy deployed the second-generation Standard Missile-3 Block IB made by Raytheon (RTN) for the first time, initiating the second phase of the Phased Adaptive Approach.
- SL Green Realty (SLG) announced two separate agreements to acquire prime retail condominiums located along two of SoHo's most popular shopping corridors. Co entered into contract to acquire the 7,200 square foot retail condominium in Lower Manhattan. Co also entered into an agreement to acquire a 5,218 square foot retail condominium between Mercer and Greene streets.
8:24 am Gapping down (:SCANX) : In reaction to disappointing earnings/guidance: ZHNE -19.5%, CREE -10.5%, ISRG -9.1%, UIS -5.2%, VMW -4.9%, CBST -4.7%, (light volume), ARMH -4.2%, EMC -4.1%, TSS -4.1%, (light volume), ERIC -3.8%, ZIXI -3.4%, (light volume), IRBT -2.9%, HLIT -2.9% (light volume), CNI -2.7%, IGT -2.6%, AMGN -2.3%, T -2.2%, DFS -1.7%, JNPR -1.1%, RAI -1%, PG -1.0%.
Battery names lower following PLUG offering news: PLUG -7.9% (intends to offer and sell common stock in an underwritten public offering; files mixed securities shelf offering ), FCEL -3.5%, BLDP -2.5%, TSLA -1.2%.
Select oil/gas related names showing early modest weakness: E -0.8%, BP -0.7% (agreed to sell interests in four BP-operated oilfields on the North Slope of Alaska to Hilcorp ), RIG -0.5% .
Other news: SRPT -3.8% (announces proposed $100 mln public offering of common stock ), ICLD -3% (files for ~1.71 mln share common stock offering by selling stockholders), MCC -2.9% (announces offering of 6 mln shares of common stock, CHL -2.2% (still checking), HASI -1.9% (commencing a public offering of 5 mln shares of common stock), BBRY -1.4% and NOK -1.2% (following T / ERIC results), DEO -1.2% (still checking).
8:20 am Meritage misses by $0.02, misses on revs (MTH) : Reports Q1 (Mar) earnings of $0.62 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.64; revenues rose 21.4% year/year to $408.3 mln vs the $437.95 mln consensus.
- Home closing revenue increased 23% over the prior year, resulting from a 5% increase in home closings and a 16% increase in the average price of homes closed during the quarter. Closing revenue grew across all three regions and five of the six states where Meritage operated continuously in both years. Meritage's East region grew home closing revenue by 70% year over year, with 59% increases in Florida and the Carolinas. The Central region followed with a 30% increase in Texas.
- Total home closing revenue increased 4% in the West region, with Arizona up 26% and Colorado up 24%, while California was off 12% from the first quarter of 2013, when it led the company with 172% growth in home closing revenue over the first quarter of 2012.
- Home closing gross margin increased 330 basis points (bps) to 22.8% in the first quarter of 2014 compared to 19.5% in the first quarter of 2013, as home prices increased more than did the costs of land and construction.
- Total order value grew 7% to $555.0 million, the second highest quarter for Meritage since the first quarter of 2007, driven primarily by Texas, which generated a $61.1 million year-over-year increase in total order value, 47% higher than 2013. For the company as a whole, an 8% increase in the average selling price of homes ordered more than offset the 1% decline in order volume from the first quarter of 2013. Total orders for 1,525 homes represented the third highest quarterly orders for Meritage in the last six years. Only the first two quarters of 2013 were higher, when average orders per community were at their highest level since the second quarter of 2006.
- After more than two years of exceptionally strong growth through the first half of 2013, first quarter 2014 orders were down 25% in California and 12% in Colorado compared to 2013. California still led the company with 12.2 orders per average active community during the first quarter of 2014, and Colorado reported an average of 9.2 per average active community, well above the company average. Arizona's sales pace and order volume declined 32% and 28%, respectively, from the first quarter of 2013.
- The East region, consisting of Florida, Tennessee and the Carolinas, increased total orders by 22% by expanding average active community count by 43%, partially offset by a 15% decline in average orders per community. Most of the growth came from Meritage's newest markets in the Carolinas and Tennessee. Ending community count at March 31, 2014 was 189 active communities, compared to 168 at March 31, 2013.
- Order cancellation rate remained low at 13% in the first quarter of 2014 compared to 11% in 2013.
- Ending backlog value was 25% higher at March 31, 2014 than it was a year earlier, with units in backlog up 15% and average price was 8% higher than it was at March 31, 2013.
8:16 am Asian Markets Close: Nikkei +1.1%, Hang Seng -1.0%, Shanghai -0.3% (:SUMRX) :
- Asian markets ended on a mixed note after the release of China's HSBC Manufacturing PMI, which ticked up to 48.3 from 48.0 (expected 48.4). Even though the reading improved, it remained in contraction (below 50) for the fourth month in a row.
- In other regional data:
- Australia's CPI rose 0.6% quarter-over-quarter (expected 0.8%, previous 0.8%), while the year-over-year reading increased 2.9% (consensus 3.2%, prior 2.7%). Also of note, Trimmed Mean CPI rose 0.5% quarter-over-quarter (consensus 0.7%, previous 0.9%).
- New Zealand's Visitor Arrivals fell 3.0% month-over-month (prior 1.8%), while Credit Card Spending jumped 8.1% year-over-year (last 6.0%).
- Singapore's CPI rose 1.2% year-over-year (consensus 1.1%, previous 0.4%).
- Japan's Nikkei (+1.1%) closed on its highs with support from exporters. Fujitsu, NEC, and Mazda Motor gained between 3.4% and 4.0%.
- Hong Kong's Hang Seng (-1.0%) was pressured by consumer and telecom names. Belle International, China Unicom Hong Kong, and China Mobile lost between 2.0% and 4.9%. Casino names finished among the leaders with Galaxy Entertainment and Sands China up 1.5% and 2.5%, respectively.
- China's Shanghai Composite (-0.3%) trimmed its losses into the close. Growth sensitive names outperformed with Fushun Special Steel and China Vanke up 6.2% and 0.8%, respectively.
- India's Sensex (+0.5%) received support from bank shares. Axis Bank and HDFC Bank gained 1.3% and 0.8%, respectively. On the downside, Wipro lost 1.1%.
- Australia's ASX (+0.7%) climbed to its best level since mid-2008. Domino's Pizza jumped 4.1% and Macquarie rose 1.8%.
- Regional Decliners: Indonesia (-0.1%), Philippines (-0.2%), Singapore (-0.6%), South Korea (-0.2%), Taiwan (-0.2%), Vietnam (-0.1%)
- Regional Advancers: Malaysia (+0.1%), Thailand (+0.6%),
- FX: USDCNY slipped to 6.2377, USDINR rose to 61.11, USDJPY is down near 102.25, AUDUSD is down to .9282
8:14 am Gapping up (:SCANX) : In reaction to strong earnings/guidance: SMCI +17.2%, SKX +13.9%, SGOC +13.5% (thinly traded), XOOM +12.9%, FDML +9%, (light volume), ILMN +8.8%, NEO +8.7%, (light volume, also extends/amends Strategic Laboratory Services Agreement with Florida Cancer Specialists), SWKS +8.4%, ETH +8%, (light volume), SANM +7.9%, MANH +5.7%, SVU +5.8% (ticking higher), DPS +4.9%, GILD +3.9%, MAN +3.5%, (light volume), HERO +3.4%, (light volume), JAKK +3.1%, BA +2.5%, DAL +2.3%, YUM +2%, NSC +1.6%, PKG +1.5% (light volume), CVA +1.4% (light volume), DOW +1.2%, WRB +1.1% (light volume), HTS +1%.
Select metals/mining stocks trading higher: GOLD +0.7%, GDX +0.5%, NEM +0.4% (ongoing ABX merger speculation), GLD +0.2%.
European pharma/drug names trading higher: AZN +1.7% , NVS +1.6%, GSK +0.7% (upgraded to Buy from Hold at Argus)
Other news: ATRM +21.5% (Aetrium announces value-enhancing transaction for its test handler business), SPPI +11% (Spectrum Pharma's Pivotal Trial of Captisol-Enabled (Propylene Glycol-Free) Melphalan Meets Primary Endpoint; co expects to file an NDA in Q3 and plans to launch this drug with its existing hematology/oncology sales force next year pending approval), BIOD +4.4% (announces collaboration agreement with HEC Pharm for development of Ultra-Rapid-Acting Insulin Aspart Formulation),UNIS +3.4% (UNS Energy responds to Blog article),UQM +2.5% (UQM Technologies and Kinetics Drive Solutions Collaborate on Electric Drive Systems for All-Electric Commercial Vehicles),YELP +2.5% (positive MadMoney mention),ALU +2% (still checking),YNDX +1.9% (still checking),TQNT +0.9% (following SWKS results),CHFN +0.8% ( completed its initial stock buyback program and initiated a new repurchase program under which co may repurchase up to 2,250,000 shares of its common stock),AGN +0.8% (Allergan adopts one-year Stockholder Rights Plan; upgraded to Overweight from Neutral at JPMorgan),HAL +0.5% (positive MadMoney mention),SUNE +0.4% (Closes CAD115 Million In Financing To Build 33 MW Of Utility Solar Projects In Ontario, Canada).
Analyst comments: ATHN +4.3% (upgraded to Overweight from Equal Weight at Morgan Stanley),SPWR +2.8% (upgraded to Buy from Underperform at BofA/Merrill),VSI +1.3% (Vitamin Shoppe upgraded to Buy from Neutral at Sterne Agee),MDSO +0.7% ( upgraded to Buy from Neutral at B. Riley),ETFC +0.5% (upgraded to Outperform from Market Perform at Wells Fargo),SSYS +0.4% (3D printing mentioned positively in Citigroup Q1 preview; continues to view SSYS as top pick)
8:07 am Cognex receives 2 purchase orders totalling ~ $40 mln from a single customer. (CGNX) : Co announces that it has recently received two purchase orders that have a combined value of more than $40 mln from a single customer.
- The Cognex vision systems and barcode readers will be integrated into automation equipment for high-precision manufacturing lines in Asia.
- Revenue from these purchase orders is expected to be recognized by Cognex in the third quarter of 2014.
8:06 am Supervalu beats by $0.03, beats on revs (SVU) : Reports Q4 (Feb) earnings of $0.18 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.15; revenues rose 1.5% year/year to $3.95 bln vs the $3.88 bln consensus.
- Other Metrics: Gross profit for the fourth quarter was $590 million, or 14.9% of net sales. Last year's fourth quarter gross profit was $557 million, or 14.3% of net sales. Full year fiscal 2014 net cash flows from operating activities were $120 million compared to $417 million last year, reflecting higher cash tax payments and working capital investment in the current year. Full year net cash flows used in investing activities were $86 million compared to $189 million last year, reflecting lower levels of capital expenditures.
8:06 am Federal Signal has authorized a share repurchase program of up to $15 million of the Company's common stock (FSS) :
8:05 am Valeant Pharma announces nominations for Board Of Directors (VRX) :
- Co announced its nominees to stand for election to the Board of Directors at its annual meeting of shareholders on May 20, 2014. Given Valeant's increased size as a company and its ability to look at a broader set of business development opportunities, three of our Directors, who have full-time jobs looking at healthcare investment opportunities, feel that continued service on the Valeant Board could limit their professional effectiveness, and will not be included in the slate.
- These directors include Fred Hassan, Partner and Managing Director at Warburg Pincus LLC, G. Mason Morfit, President at ValueAct, LLC, focused on healthcare and technology sectors, and Lloyd M. Segal, Managing Partner at Persistence Capital Partners, LP, which has two active healthcare private equity funds.
- All other current directors will stand for re-election. The Board did not include Messrs. Hassan, Morfit and Segal on the nominee slate after taking into consideration their preferences and other commitments. Newly selected nominees include Colleen Goggins, former Johnson & Johnson Worldwide Chairman Consumer Group, Executive Committee, and Anders Lonner, former Chief Executive Officer of Meda AB.
8:05 am ICU Medical: New peer-reviewed study shows ICU Medical's Tego needlefree connector is associated with a 10-12% reduction of catheter-related bloodstream infections in hemodialysis patients (ICUI) :
- Co announced that a new peer-reviewed study in the April 2014 issue of the International Journal of Nephrology and Renovascular Disease shows that the use of the co's Tego needlefree connector on hemodialysis catheters is associated with a 10-12% reduction of catheter-related bloodstream infections. The study also associated the use of Tego with a reduction in missed dialysis treatments as well as the use and cost of throbolytics, antibiotics and erythropoiesis-stimulating agents, "which could have a substantive financial impact for dialysis providers, particularly in the light of the recent rebasing of Centers for Medicare and Medicaid Services reimbursement rates for dialysis," according to the researchers.
- As the first large-scale study on the impact of Tego connectors on CRBSI, this study improves on results from previous smaller studies in showing a reduced infection rate along with reduced utilization of ESA. In this retrospective analysis, the Tego connector use was found to be independently associated with a 10-12% reduction in risk of CRBSI, as defined by initiation of IV antibiotics or initiation of an IV antibiotic course. Additionally, the Tego population experienced lower levels of ESA utilization and dosage, reducing pharmaceutical costs and challenging the idea that the saline lock possible with Tego could fail to control catheter occlusions as well as a heparin lock.
8:04 am Dr Pepper Snapple beats by $0.15, beats on revs; reaffirms FY14 core EPS guidance, revs guidance (DPS) : Reports Q1 (Mar) core earnings of $0.74 per share, $0.15 better than the Capital IQ Consensus Estimate of $0.59; revenues rose 1.3% year/year to $1.40 bln vs the $1.38 bln consensus. Co reaffirms guidance for FY14, sees core EPS of $3.38-3.46 vs. $3.41 Capital IQ Consensus Estimate; sees FY14 rev growth of flat to up 1% which computes to $6.00-6.06 bln vs. $6.03 bln Capital IQ Consensus Estimate.
8:04 am Amphenol beats by $0.03, beats on revs; guides Q2 and FY14 EPS in-line (APH) : Reports Q1 (Mar) earnings of $0.99 per share, excluding items, $0.03 better than the Capital IQ Consensus Estimate of $0.96; revenues rose 15.4% year/year to $1.25 bln vs the $1.21 bln consensus.
- Co issues in-line guidance for Q2, sees EPS of $1.03 -1.06, excluding items, vs. $1.05 Capital IQ Consensus Estimate; sees Q2 revs of $1.255 -1.285 bln vs. $1.27 bln Capital IQ Consensus Estimate.
- Co issues in-line guidance for FY14, sees EPS of $4.25 -4.34, excluding items, vs. $4.26 Capital IQ Consensus Estimate; sees FY14 revs of $5.110 -5.200 bln vs. $5.11 bln Capital IQ Consensus Estimate.
8:04 am Gulfport Energy names new CEO and COO (GPOR) : Co announces that Michael G. Moore has been promoted to CEO and has joined the Board. Also, J. Ross Kirtley has been promoted to COO. Michael S. Reddin has been appointed to the Board of Directors. Mr. Moore joined Gulfport in July 2000 as its CFO and was appointed President in August 2013.
8:04 am Norfolk Southern beats by $0.02, misses on revs (NSC) : Reports Q1 (Mar) earnings of $1.17 per share, $0.02 better than the Capital IQ Consensus Estimate of $1.15; revenues fell 1.8% year/year to $2.69 bln vs the $2.73 bln consensus.
- For the first quarter, general merchandise revenues were $1.6 billion, 1% higher than the same period last year, despite overall volume declining 1%. Increased crude and liquefied petroleum gas shipments were offset by declines in automotive, metals/construction, and paper/forest shipments.
- Intermodal revenues improved 4%, to $596 million, compared with first-quarter 2013. Growth primarily in domestic business pushed traffic volume up 3% in the quarter compared with the same period of 2013.
- First-quarter coal revenues were $541 million, 15% lower compared with the same quarter of 2013, the result of a 13% volume decrease due primarily to lower utility and export shipments.
- Railway operating expenses for the first quarter were $2 billion, 1% lower than in the same period of 2013.
- Income from railway operations was $667 million, 3% lower compared with first-quarter 2013.
- The quarterly railway operating ratio, or operating expenses as a%age of revenue, was 75.2% versus 74.8% in the same period of 2013.
8:03 am Catalyst Pharma announces initiation of an expanded access program to provide Firdapse at no cost to U.S. patients with Lambert-Eaton Myasthenic Syndrome (CPRX) : Co announced it has begun the process required to establish an expanded access program to make available in the United States its investigational potassium channel inhibitor, Firdapse (amifampridine phosphate or 3,4-DAP phosphate), to patients diagnosed with Lambert-Eaton Myasthenic Syndrome through their neuromuscular disease specialists. The product, currently in Phase 3 development, will be provided at no cost until sometime after approval. Program enrollment will begin in the next few months, pending FDA review and approvals.
8:03 am Avino Silver & Gold announced expansion update; The Avino Mine is now dewatered down to level 10.5 (ASM) : CEO says "having just returned from a week at the mine site, I am extremely pleased with the progress being made at the Avino Mine and the mill complex; with the closing of the two financings in February, we are in great shape to complete our expansion within 2014, as planned."
The Avino Mine is now dewatered down to level 10.5 with one more level to go before the area where mining ceased in 2001 is reached. At the current dewatering rate, it is anticipated that mining can commence in the 3rd Quarter or possibly sooner pending completion of dewatering.
The ramp in general is in very good condition as the host rock is very competent; areas where sloughing has occurred are being stabilized with steel and timber sets and sprayed with shotcrete. The rehabilitation has kept pace with dewatering so once dewatering in the final level is complete the final rehabilitation will be swift.
New Oldenberg single boom jumbo and Caterpillar RG 1600 six yard scoop tram have been purchased using the Caterpillar credit facility; this equipment is in addition to a scoop tram and air compressor that were previously purchased for the rehabilitation work.
8:02 am Galectin Therapeutics completes enrollment of second cohort of Phase 1 Trial of GR-MD-02 for NASH with advanced fibrosis (GALT) : Co announces that all 8 patients have received their first infusion in cohort 2 of its Phase 1 clinical trial of GR-MD-02 in patients with NASH with advanced fibrosis. Patients in cohort 2 were successfully dosed with 4 mg/kg, which is double the dose given in cohort 1. The clinical trial protocol specifies that eight patients are included in cohort 2; however, an additional two patients may be enrolled to ensure the requisite number of eight patients complete the 63-day protocol in the second cohort.
As with all phases of the clinical trial, this cohort was initiated in full compliance with the rules, regulations and specific conditions set forth by the FDA for this Phase 1 clinical trial. The second cohort follows highly successful results from the first cohort showing that 2 mg/kg was safe and very well tolerated, and that GR-MD-02 treatment resulted in significant improvement in multiple biomarkers of fibrosis and liver inflammation in patients with NASH with advanced fibrosis.
8:02 am Energy Fuels announced that it has revised its previous guidance and currently expects to continue mining at its 100% owned Pinenut Mine through 2014 and into the 1st quarter of 2015 (UUUU) :
- Co announced that it has revised its previous guidance and currently expects to continue mining at its 100% owned Pinenut Mine through 2014 and into the 1st quarter of 2015. Previously, the Company had provided guidance that it expected production at the Pinenut Mine to be placed on standby by mid-2014, with all ore produced from the mine through mid-2014 being milled at the Company's White Mesa Mill in 2014.
- However, as a result of favorable mining conditions and lower than expected costs, the Company now expects to continue mining at Pinenut through 2014 and into the 1st quarter of 2015, at which point the economic uranium resource is expected to be depleted, subject to the potential discovery of additional resources through planned underground exploration.
- All production from mid-2014 through the depletion of the economic resource will be stockpiled on the surface at the mine, pending improvements in market conditions at which time it would be transported to the White Mesa Mill for processing into U3O8. Under current economic conditions, the Company has no plans to mill such additional ore in 2014.
- Accordingly, the Company's guidance of finished U3O8 production for 2014 totaling 500,000 pounds remains unchanged. The Company's decision to continue mining the Pinenut mine to depletion was based on favorable mining results at the mine and the ability, through continued mining, to avoid mine standby costs and the costs associated with re-starting production at a future date. At the current time, Energy Fuels expects to mine approximately 250,000 lbs. of additional U3O8 from the Pinenut Mine from mid-2014 to 2015 which will be stockpiled at the mine.
8:02 am SunEdison announces that it has closed on financing for two solar power plants (SUNE) : Co announces that it has closed on financing for two solar power plants to be built in Ontario, Canada. Both plants should be operational by the end of 2014. The solar power plants will be composed of over 100,000 SunEdison Silvantis Photovoltaic Solar Modules, which will be manufactured in the province of Ontario.
8:01 am SL Green Rlty agrees to sell First Avenue leasehold interest (SLG) : Co announces an agreement to sell its leasehold interest in 673 First Avenue for $145 million, reflecting a capitalization rate based on in-place net operating income of 4.7%. The sale of the 422,000 square foot office building is expected to close during the second quarter 2014.
8:01 am Wabtec beats by $0.03, beats on revs; reaffirms FY14 EPS guidance, revs guidance (WAB) :
- Reports Q1 (Mar) earnings of $0.83 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.80; revenues rose 12.9% year/year to $695.2 mln vs the $686.51 mln consensus.
- Co reaffirms guidance for FY14, sees EPS of approx $3.45, excluding non-recurring items, vs. $3.47 Capital IQ Consensus Estimate; sees FY14 revs growth of 15% (approx $2.95 bln) vs. $2.94 bln Capital IQ Consensus Estimate.
8:00 am Ryder System beats by $0.05, reports revs in-line; guides Q2 EPS in-line; raises FY14 EPS guidance (R) : Reports Q1 (Mar) earnings of $0.92 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.87; revenues rose 3.1% year/year to $1.61 bln vs the $1.62 bln consensus.
- Co issues in-line guidance for Q2, sees EPS of $1.35-1.40 vs. $1.40 Capital IQ Consensus Estimate.
- Co issues in-line guidance for FY14, raises EPS to $5.40-5.55 from prior guidance of $5.30-5.45 vs. $5.42 Capital IQ Consensus Estimate.
- "We outperformed our forecast for the quarter, driven by Fleet Management Solutions, and delivered double-digit growth in comparable earnings per share to reach a record $0.92 per share. Our stronger-than-expected results were driven mainly by commercial rental and used vehicle sales. Supply Chain Solutions business segment earnings were impacted by weather-related items. However, for the overall company, the modest impacts of weather were offset by other benefits during the quarter."
- Outlook Commentary: "We expect the positive trends we've seen in the performance of our commercial rental and used vehicle sales products to continue. Lease sales are up from last year and our full-year forecast for fleet growth remains on track. We are also encouraged by the continued strong acceptance of our new products including on-demand maintenance. We anticipate some increased maintenance costs in the second quarter that were deferred from the first quarter due to weather. In Supply Chain Solutions, we expect positive year-over-year comparisons for the second quarter. Finally, we expect to continue implementing the Company's previously announced anti-dilutive share repurchase program, under which we began purchase activity in the first quarter."
7:56 am S&P futures vs fair value: -1.30. Nasdaq futures vs fair value: -2.50. (:WRAPX) : U.S. equity futures hover near their pre-market lows amid cautious action overseas. The S&P 500 futures trade one point below fair value.
Reviewing overnight developments:
- Asian markets ended on a mixed note. Japan's Nikkei +1.1%, China's Shanghai Composite -0.3%, and Hong Kong's Hang Seng -1.0%.
- In economic data:
- China's HSBC Manufacturing PMI ticked up to 48.3 from 48.0 (expected 48.4).
- Australia's CPI rose 0.6% quarter-over-quarter (expected 0.8%, previous 0.8%), while the year-over-year reading increased 2.9% (consensus 3.2%, prior 2.7%). Also of note, Trimmed Mean CPI rose 0.5% quarter-over-quarter (consensus 0.7%, previous 0.9%).
- New Zealand's Visitor Arrivals fell 3.0% month-over-month (prior 1.8%), while Credit Card Spending jumped 8.1% year-over-year (last 6.0%).
- Singapore's CPI rose 1.2% year-over-year (consensus 1.1%, previous 0.4%).
- In news:
- Even though China's HSBC Manufacturing PMI registered its first improvement in four months, this marked the fourth consecutive reading below 50, signifying a contraction in activity.
- In economic data:
- Major European indices trade lower. Great Britain's FTSE -0.1%, Germany's DAX -0.4%, and France's CAC -0.4%.
- Participants received several data points:
- Eurozone Manufacturing PMI rose to 53.3 from 53.0 (expected 53.0), while Services PMI improved to 53.1 from 52.2 (consensus 52.4).
- Germany's Manufacturing PMI increased to 54.2 from 53.7 (expected 54.0), while Services PMI jumped to 55.0 from 53.0 (consensus 53.4).
- French Manufacturing PMI fell to 50.9 from 52.1 (expected 51.9), while Services PMI decreased to 50.3 from 51.5 (expected 51.4).
- Great Britain's CBI Industrial Trends Orders fell to -1 from 6 (consensus 7), while Public Sector Net Borrowing came in at GBP4.86 billion (expected GBP9.10 billion, previous GBP7.00 billion).
- Among news of note:
- The Bank of England released the minutes from its latest meeting, which indicated unanimous support for continuing asset purchases at GBP375 billion.
- Participants received several data points:
- AT&T (T 35.50, -0.79): -2.2% despite beating earnings estimates on revenue that was a bit ahead of expectations.
- Boeing (BA 130.33, +2.78): +2.2% after reporting above-consensus earnings and revenue.
- Cree (CREE 53.93, -4.12): -7.1% despite beating the Capital IQ consensus estimate by one cent.
- Dow Chemical (DOW 49.52, +0.58): +1.2% after reporting an earnings beat on below-consensus revenue.
- Delta Air Lines (DAL 35.75, +0.80): +2.3% after beating on earnings.
- Gilead Sciences (GILD 75.40, +2.54): +3.5% following its above-consensus earnings and revenue.
- Procter & Gamble (PG 80.74, +0.13): +0.2% after beating bottom-line estimates.
- Skyworks Solutions (SWKS 41.10, +3.14): +8.3% after beating on earnings and revenue.
- Yum! Brands (YUM 79.91, +2.43): +3.1% after beating earnings expectations on below-consensus revenue.
The New Home Sales report for March (Briefing.com consensus 455K) will be released at 10:00 ET.
7:49 am Brinker beats by $0.01, misses on revs (EAT) : Reports Q3 (Mar) earnings of $0.84 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.83; revenues rose 2.1% year/year to $758.4 mln vs the $766.58 mln consensus.
- Company sales increased 2.0% to $739.2 million and restaurant operating margin1 improved ~80 basis points to 18.7% compared to 17.9% for the third quarter of fiscal 2013. Brinker International comparable restaurant sales at company-owned restaurants increased 0.7%
Policy Brinker provides annual guidance as it relates to comparable restaurant sales, earnings per diluted share, and other key line items in the comprehensive income statement and will only provide updates if there is a material change versus the original guidance.
Consistent with prior practice, management will not discuss intra-period sales or other key operating results not yet reported as the limited data may not accurately reflect the final results of the period or quarter referenced.
7:48 am On The Wires (:WIRES) :
- Foster Wheeler AG (FWLT) announced that a subsidiary of its Global Engineering and Construction Group has been awarded a contract for basic engineering for the Squaw Gulch ADR2 project, a new adsorption, desorption and recovery facility at AngloGold Ashanti's (Colorado) (AU) Cripple Creek and Victor Gold Mining's site in Teller, Colorado, U.S.
- Derma Sciences (DSCI) announced that its products are the subject of 10 poster presentations and abstracts to be featured at the Spring Symposium on Advanced Wound Care. Co also announced a new corporate branding campaign focused on driving awareness of the com's leadership in tissue regeneration and wound healing.
- W. P. Carey (WPC) announced two acquisitions, encompassing three properties, completed on behalf of CPA:17 - Global, one of its managed REITs. The total cost of the properties, which are located in Arizona, Ohio and Indiana, was ~ $28 mln.
- Lpath (LPTN) and scientists from the Center for Military Psychiatry and Neuroscience, Walter Reed Army Institute of Research have initiated a study that is the focus of a collaborative research agreement. Collaboration involves the use of Lpathomab, an antibody to lysophosphatidic acid, in the treatment of brain injury induced by blast overpressure.
7:40 am Antero Resources intends to offer $500 mln in aggregate principal amount of senior unsecured notes due 2022 in a private placement (AR) :
- Co announced that it intends to offer $500 million in aggregate principal amount of senior unsecured notes due 2022 in a private placement to eligible purchasers.
- Co intends to use a portion of the net proceeds of the offering to finance the redemption of its outstanding 7.25% senior notes due 2019 and intends to use the remaining net proceeds to repay a portion of the outstanding borrowings under its credit facility.
7:39 am Boeing beats by $0.20, beats on revs; raises FY14 EPS guidance, in-line, as a result of a tax settlement; backlog at quarter-end was $440 bln (BA) : Reports Q1 (Mar) earnings of $1.76 per share, excluding non-recurring items, $0.20 better than the Capital IQ Consensus Estimate of $1.56; revenues rose 8.3% year/year to $20.46 bln vs the $20.21 bln consensus.
- Co raises EPS guidance for FY14 to reflect a tax settlement, sees EPS of $7.15-7.35, excluding non-recurring items, vs. $7.29 Capital IQ Consensus Estimate, up from $7.00-7.20
- Total co backlog at quarter-end was a $440 billion, down slightly from the beginning of the year, and included net orders for the quarter of $19 billion
- "Our outlook for the full year remains positive on the strength of demand for our fuel-efficient new commercial airplanes, our solid position in global defense, space and security markets, and our enterprise focus on meeting customer commitments, improving productivity and profitably delivering the growth in our sizable backlog," McNerney said
7:36 am Federal-Mogul misses by $0.06, misses on revs (FDML) : Reports Q1 (Mar) earnings of $0.27 per share, $0.06 worse than the Capital IQ Consensus Estimate of $0.33; revenues rose 7.2% year/year to $1.78 bln vs the $1.81 bln consensus.
- Free cash flow improved to $64 million in first quarter 2014 over Q1 2013. Co improved operational EBITDA to $166 million in 1Q14, up 20% from Q1 2013. Company completed $2.6 billion refinancing in April 2014 with debt maturities extended up to 2021.
7:36 am Delta Air Lines beats by $0.04, reports revs in-line (DAL) : Reports Q1 (Mar) earnings of $0.33 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.29; revenues rose 4.9% year/year to $8.92 bln vs the $8.93 bln consensus.
- Delta's operating revenue improved 5 percent, or $416 million, in the March 2014 quarter compared to the March 2013 quarter, despite $90 million of lost revenue due to weather-related cancellations.
- Traffic increased 3.5 percent on a 1.7 percent increase in capacity.
- Passenger revenue increased 5 percent, or $357 million, compared to the prior year period. Passenger unit revenue (:PRASM) increased 3.2 percent year over year with a 1.3 percent improvement in yield.
- "Our work is not finished, and there is great opportunity ahead as we expect the June quarter to produce 14% - 16% operating margins. We are transforming Delta into a high-quality S&P 500 company that consistently delivers strong earnings growth and shareholder returns."
- Co slso guides for Q2 adj. unit costs +0-2%; capacity +2-3%.
7:35 am Alliqua to Launch Biovance Human Amniotic Membrane Allograft Product Licensed From Celgene (CELG) (ALQA) : Co announces will launch its Biovance human amniotic membrane allograft product at Booth #1208 at the Spring 2014 Symposium on Advanced Wound Care to be held at the Gaylord Palms Hotel and Convention Center in Orlando, Florida on April 23-27.
- Biovance was originally developed by, and is currently being manufactured through a supply agreement with, Celgene Cellular Therapeutics, a subsidiary of Celgene (CELG)
- On April 14, 2014, Celgene invested $5,000,000 in Alliqua as part of the Company's previously announced private placement that resulted in gross proceeds to the Company of $15 million.
7:35 am Natus Medical beats by $0.03, beats on revs; guides Q2 EPS in-line, revs in-line; guides FY14 EPS in-line, reaffirms FY14 revs guidance (BABY) : Reports Q1 (Mar) earnings of $0.26 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.23; revenues fell 0.2% year/year to $85.6 mln vs the $84.69 mln consensus.
- Reports non-GAAP gross profit margin of 59.5%
- Q2 - Co issues in-line guidance for Q2, sees EPS of $0.24-0.27, excluding non-recurring items, vs. $0.26 Capital IQ Consensus Estimate; sees Q2 revs of $83-86 mln vs. $84.80 mln Capital IQ Consensus Estimate.
- FY14 - Co issues mixed guidance for FY14, sees EPS of $1.18-1.21, excluding non-recurring items, vs. $1.19 Capital IQ Consensus Estimate and above prior guidance of $1.14-1.18; sees FY14 revs of $345-350 mln vs. $348.77 mln Capital IQ Consensus Estimate.
7:34 am Manpower beats by $0.18, beats on revs; guides Q2 EPS above consensus (MAN) : Reports Q1 (Mar) earnings of $0.86 per share, $0.18 better than the Capital IQ Consensus Estimate of $0.68; revenues rose 2.9% year/year to $4.9 bln vs the $4.83 bln consensus.
- Co issues upside guidance for Q2, sees EPS of $1.26-1.34, excluding non-recurring items, vs. $1.21 Capital IQ Consensus Estimate.
- "Despite the slow start in January, we are experiencing more positive revenue trends as we enter the second quarter in almost all of the major geographies. Growth in our Europe business improved to over 4 percent in constant currency in the quarter, and exceeded 3 percent on an average daily basis".
7:34 am Rollins reports EPS in-line, revs in-line (ROL) : Reports Q1 (Mar) earnings of $0.18 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.18; revenues rose 4.6% year/year to $313.4 mln vs the $316.3 mln consensus.
7:34 am Zogenix responds to Governor's action singling out Zohydro ER in Massachusetts, encourages officials to consider patient needs and effective class-wide measures (ZGNX) :
- "We are once again disappointed that Governor Patrick would issue another immediate restriction without first accepting our offer to discuss the facts and work together to address the needs of patients while combating abuse and addiction.
- We fully support appropriate guidelines on the safe use, serious risks, proper storage and responsible disposal of extended-release and long-acting opioid analgesics. Zogenix is following a rigorous program required by the U.S. Food and Drug Administration (:FDA) to ensure that Zohydro ER (hydrocodone bitartrate) extended-release capsules, CII is used safely and responsibly. Zogenix strongly disagrees with the Governor's decision once again to single out Zohydro ER, when the facts show that the risks of abuse with Zohydro ER are no different than those of most other long-acting opioid products on the market today. For that reason, FDA has required that Zohydro ER adhere to the same strict labeling requirements and same requirement for post-market studies, training programs for prescribers, and Medication Guides for patients as all other long-acting opioid analgesics. Zogenix urges the Governor to respect the carefully designed approach imposed by the FDA, and to address the problem of opioid abuse on a class-wide basis.
- Zogenix stands ready to work with the State of Massachusetts to help address the serious problem of opioid abuse and to focus, with the Governor and his team, on the root causes of the problem and the solutions most likely to make a difference. Imposing restrictions on one specific treatment, without developing a full understanding of the facts and the causes of the problem, does not serve the public interest."
7:34 am TD Ameritrade beats by $0.01, beats on revs (AMTD) : Reports Q2 (Mar) earnings of $0.35 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.34; revenues rose 19.6% year/year to $812 mln vs the $797.47 mln consensus.
- Record average client trades per day of approximately 492,000, an activity rate of 8.1 percent.
- Record average client trades per day of 492,000.
- Net new client assets of $12.2 bln, 8% annualized growth rate.
- "TD Ameritrade's earnings for the second quarter were up 35 percent year-over-year, driven by record trades per day as retail investor engagement continued to improve. In fact, our quarterly activity rate was the highest we've seen in a decade...Additionally, we continue to see strong asset gathering and demand for our guidance-based offerings. We remain focused on giving our clients access to a wide range of products, tools and education to help them pursue their goals."
7:33 am Raytheon: International customer signs agreement with USG valued at $750 mln for RTN's TOW missiles (RTN) :
- An international customer signed an agreement with the U.S. Government for a foreign military sale of tube-launched, optically tracked, wireless-guided (:TOW) missiles to be supplied by RTN in a deal valued at ~$750 million.
- Raytheon plans to deliver nearly 14,000 TOW missiles to the customer over a three-year period beginning in 2015. A resulting order is expected to be executed by the U.S. government with Raytheon in the coming weeks.
7:33 am Owens Corning misses by $0.05, misses on revs (OC) : Reports Q1 (Mar) earnings of $0.29 per share, excluding non-recurring items, $0.05 worse than the Capital IQ Consensus Estimate of $0.34; revenues fell 5.3% year/year to $1.28 bln vs the $1.34 bln consensus.
- Adjusted EBIT Flat with Prior Year; Insulation and Composites Performance Continued to Strengthen, Offset by Weaker-than-Expected Roofing Volumes
- Insulation delivered profitable quarter; marking the 11th consecutive quarter of EBIT improvement
- Composites improved EBIT by $18 million on better pricing and operating performance
- Roofing volumes weaker than expected; anticipate improvement as year progresses
For the full year 2014, the co continues to expect to deliver $500 mln in adjusted EBIT based on the current outlook for an improving U.S. housing market and moderate global growth.
The Roofing business is expected to deliver another strong year in 2014 on market growth in new construction and flat to potentially improving re-roofing demand. The first-quarter volume weakness adds some additional risk to the company's financial outlook.
Insulation should continue to benefit from growth in U.S. residential new construction, improved pricing and operating leverage.
In Composites, the co expects recovering market conditions to drive price improvement of $20-30 million. Pricing is expected to be the primary driver of EBIT growth in 2014.
7:32 am Bacterin International announces positive results utilizing OsteoSelect Demineralized Bone Matrix Putty bone graft for cranial defect repair has been published in the peer-reviewed Journal of Craniofacial Surgery (BONE) :
- Co announced that positive results utilizing OsteoSelect Demineralized Bone Matrix Putty bone graft for cranial defect repair has been published in the peer-reviewed Journal of Craniofacial Surgery.
- The article compares the bone regeneration potential of OsteoSelect DBM to a competitive synthetic bone graft substitute (Novabone Putty) in a rabbit cranial defect model using semi-quantitative histology and quantitative histomorphometry evaluated at 43 and 91 days post-implantation. Defects filled with OsteoSelect DBM were histologically associated with less inflammation and fibrous tissue in the defect and more new bone than the synthetic counterpart at both time points. Histomorphometric analysis indicated the defects filled with OsteoSelect DBM were associated with significantly more bone formation at day 43 (70.7% vs 40.7%) and at day 91 (70.4% vs 39.9%) relative to the synthetic bone graft substitute.
7:31 am SolarWinds selected by NetSuite (N) for global, end-to-end IT infrastructure management (SWI) : SolarWinds (SWI) announces that NetSuite (N) has selected the suite of SolarWinds solutions as its holistic IT infrastructure management solution for their global IT operations, which serve more than 2,400 employees and support 25 locations worldwide.
7:30 am Peregrine Pharma announces initiation of an investigator-sponsored trial combining its immunotherapy bavituximab and ipilimumab in advanced melanoma (PPHM) :
- Co announced the opening of an investigator-sponsored trial of its investigational immunotherapy bavituximab in combination with Bristol-Myers Squibb's ipilimumab, for the treatment of advanced melanoma. Bavituximab is an upstream immune checkpoint inhibitor that targets phosphatidylserine (:PS), a highly immunosuppressive molecule exposed on cells that line tumor blood vessels and tumor cells.
- Preclinical data in a model of melanoma demonstrate that the combination of a bavituximab equivalent and ipilimumab yield enhanced anti-tumor activity compared to ipilimumab alone.
- The trial is being conducted at the University of Texas Southwestern Medical Center, Dallas, and led by Arthur E. Frankel, M.D., Associate Professor of Internal Medicine at the Simmons Comprehensive Cancer Center. Bavituximab, Peregrine's lead immuno-oncology candidate, is being evaluated in second-line non-small cell lung cancer (:NSCLC), as part of the SUNRISE pivotal Phase III clinical trial.
- The primary endpoint of the trial will be safety and secondary endpoints will include measurements of disease control rate (:DCR) and overall survival (:OS). In addition, tumor biopsies will be collected at screening to measure changes in myeloid-derived suppressor cells (:MDSC), tumor-associated macrophages (TAM), T-regulatory cells (Treg) and peripheral blood cytokines. For more information on this trial please visit ClinicalTrials.gov using the identifier NCT01984255.
7:27 am Aussie Slides on Cool CPI: 10-yr: +02/32..2.704%..USD/JPY: 102.23..EUR/USD: 1.3838 (:SUMRX) :
- The Dollar Index presses session lows near 79.70.
- The Index continues to struggle near the key 80.00 level, and has spent the entire session in negative territory.
- EURUSD is +35 pips @ 1.3840 following the region's mostly better than expected Flash Manufacturing and Services PMI data. Eurozone and German readings both outpaced estimates while French numbers fell short of estimates but remained in expansion. The disappointing French data sparked calls for a weaker single currency by Fin Min Michel Sapin. Action has lifted off 1.3800 support, and is now trading near two-week highs. Also notable was Portugal's return to the debt markets for the first time since 2011.
- GBPUSD is -25 pips @ 1.6800 as trade slips off its best levels since November 2009. The latest Bank of England MPC votes were unanimous, in favor of keeping both the key rate (0.50%) and asset purchase program (GBP375 bln) unchanged. Likely having a bigger impact on today's action were the mixed public sector net borrowing (GBP4.9 bln actual v. GBP8.9 bln expected) and CBI Industrial Order Expectations (-1 actual v. 7 expected, 6 previous). The 1.6700/1.6750 area provides the first level of support.
- USDCHF is -40 pips @ .8810 as trade slides to a one-week low. Today's weakness has dropped action back below the 50 dma, and comes on the back of euro strength.
- USDJPY is -35 pips @ 102.25 as sellers take control for a second session following seven days of gains. Traders will continue to watch the 102.50 pivot, which is guarded by the 50 dma.
- AUDUSD is -80 pips @ .9285 as trade slides to a two-week low. The overnight weakness comes after Australia's CPI (0.6% QoQ actual v. 0.8% QoQ expected) and Trimmed Mean CPI (0.5% QoQ actual v. 0.7% QoQ expected) both saw cooler than expected readings. The .9250 area provides the first level of support. USDCNY ticked up to 6.2377, a 14-month high, after China's HSBC Flash Manufacturing posted a disappointing 48.3 (48.4 expected, 48.0 previous).
Click here to see a daily AUDUSD chart.
- USDCAD is +5 pips @ 1.1030 amid a rather uneventful trade. An early bid tested the 50 dma (1.1053), but trade remains unable to take out resistance in the area. Canada's retail sales will be released later this morning.
7:25 am On The Wires (:WIRES) :
- Armada Hoffler Properties (AHH) announced that Harbor Point developer Beatty Development entered into a contract with Armada Hoffler Construction, a division of AHH, to commence construction of an ~ 900,000 square foot mixed-use tower in Baltimore, Maryland. This contract is the culmination of a two-year pre-development effort, subsequent to the award of the project.
- NovaBay Pharma (NBY) is introducing a new eye care product, i-Lid Cleanser. The product is being introduced at the American Society of Cataract and Refractive Surgery being held in Boston, MA, April 25-29, 2014.
- Howard Hughes (HHC) announced plans for the first multi-family residential development in the emerging 400-acre Downtown Summerlin in Summerlin master planned community.
- QIWI (QIWI) will host a conference call today at 12:00 PM ET to discuss proposed legislation affecting electronic payments systems in Russia.
- Kratos Defense & Security Solutions (KTOS) announced that its Electronic Products division received ~ $6.0 mln in radar and electronic warfare simulation and related product orders.
- Neos Therapeutics entered into a $20 mln loan facility with Hercules Technology Growth Capital (HTGC).
7:22 am NeoGenomics reports EPS in-line, beats on revs; guides Q2 EPS in-line, revs above consensus; co raises 2014 guidance, guides FY14 revs above consensus (NEO) : Reports Q1 (Mar) net of breakeven, in-line with the Capital IQ Consensus Estimate consensus of ($0.00); revenues rose 16.7% year/year to $18.2 mln vs the $17.68 mln consensus.
- Co issues in-line EPS guidance for Q2, sees EPS of $0.00-0.01 vs. $0.00 Capital IQ Consensus Estimate; sees Q2 revs of $18.8-19.3 mln vs. $17.27 mln Capital IQ Consensus Estimate.
- Co issues upside guidance for FY14, sees FY14 revs of $73-77 mln vs. $72.10 mln Capital IQ Consensus Estimate.
The Co also increased its guidance for the full year 2014 today.
Previously the Co stated that it expected revenue of $73-77 million if the NCCI FISH matter was resolved positively with earnings of $0.05 to $0.07 per share. The Co now believes that it can achieve $73-77 million of revenue even if the NCCI matter is not resolved positively and earnings of $0.03 to $0.05 per share for FY 2014.
If the NCCI FISH Edits are rescinded, it would have the effect of increasing revenue by another $3 million and net income by ~$0.04 per share on top of the above guidance.
7:21 am Biogen Idec reports Q1 (Mar) results, beats on revs; raises FY14 guidance above consensus (BIIB) : Reports Q1 (Mar) earnings of $2.47 per share, may not be comparable to the Capital IQ Consensus Estimate of $2.56; revenues rose 50.5% year/year to $2.13 bln vs the $2 bln consensus.
- Diluted GAAP and non-GAAP EPS were reduced by ~35 cents as a result of a $118 million R&D expense related our new Alzheimer's disease collaboration agreement with Eisai.
- The revenue growth year-over-year was driven by strong TECFIDERA performance and from recording 100% of TYSABRI revenues following our acquisition of complete rights for the asset in the second quarter of 2013.
- AVONEX revenues increased 2% compared to the first quarter of 2013 to $761 million. The total was primarily comprised of $476 million in U.S. sales and ~$285 million in sales outside the U.S.
- TYSABRI revenues increased by 41% to $441 million as a result of recording 100% of TYSABRI revenues following our acquisition of complete rights to the asset in the second quarter of 2013. Global in-market sales for TYSABRI for the first quarter of 2014 decreased 3% compared to the first quarter of 2013.
- TECFIDERA revenues were $506 million. The total was comprised of $460 million in U.S. sales and ~$46 million in sales outside the U.S.
- RITUXAN and GAZYVATM net revenues from our unconsolidated joint business arrangement were $297 million.
7:20 am Tupperware beats by $0.14, beats on revs; guides Q2 EPS in-line; guides FY14 EPS above consensus (TUP) : Reports Q1 (Mar) earnings of $1.31 per share, $0.14 better than the Capital IQ Consensus Estimate of $1.17; revenues were unchanged from the year-ago period at $663.2 mln.
- Emerging markets, accounting for 64% of sales, achieved a 14% increase in local currency. Established markets were down 4% in local currency, a 1 percentage point improvement over fourth quarter 2013.
- Total sales force of 2.9 million was up 6% versus prior year at the end of the quarter, with improvement in most markets.
- Co issues guidance for Q2, sees EPS of $1.44-1.49, excluding non-recurring items, vs. $1.48 Capital IQ Consensus Estimate; sees Q2 revs of (1%) to +1% YoY ~$681-696 mln, may not be comparable to $688.18 mln Capital IQ Consensus Estimate.
- Co issues guidance for FY14, sees EPS of $5.66-5.81, excluding non-recurring items, vs. $5.58 Capital IQ Consensus Estimate; sees FY14 revs of +0-3% YoY to ~$2.67-2.75 bln, may not be comparable to $2.7 bln Capital IQ Consensus Estimate. Reports Q1 (Mar) earnings of $1.31 per share, $0.14 better than the Capital IQ Consensus Estimate of $1.17; revenues were unchanged from the year-ago period at $663.2 mln
- For the full year, sales in local currency are expected to be about even in Europe and Tupperware North America, up high-single to low-double digit in Asia Pacific, down high single digit in Beauty North America and up close to 30% percent in the South America segment.
- Venezuela's forecasted sales increase being above the segment's average accounts for a high single digit share of the increase for the segment
7:19 am Noranda Aluminum misses by $0.04, misses on revs (NOR) : Reports Q1 (Mar) loss of $0.24 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus Estimate of ($0.20); revenues fell 7.9% year/year to $311.6 mln vs the $319.5 mln consensus.
7:16 am RPC misses by $0.03, misses on revs (RES) : Reports Q1 (Mar) earnings of $0.18 per share, $0.03 worse than the Capital IQ Consensus Estimate of $0.21; revenues rose 17.8% year/year to $501.7 mln vs the $508.9 mln consensus.
7:15 am Celestica reports EPS in-line, misses on revs; guides Q2 EPS in-line, revs in-line (CLS) : Reports Q1 (Mar) earnings of $0.20 per share, excluding the $0.06 per share net income tax benefit, in-line with the Capital IQ Consensus Estimate consensus of $0.20; revenues fell 4.4% year/year to $1.31 bln vs the $1.36 bln consensus.
- Co issues in-line guidance for Q2, sees EPS of $0.20-0.26 vs. $0.22 Capital IQ Consensus Estimate; sees Q2 revs of $1.375-1.475 bln vs. $1.45 bln Capital IQ Consensus Estimate.
7:13 am General Dynamics beats by $0.07, beats on revs; Total backlog increased by more than 20% from year-end 2013 (GD) : Reports Q1 (Mar) earnings of $1.71 per share, $0.07 better than the Capital IQ Consensus Estimate of $1.64; revenues fell 1.1% year/year to $7.32 bln vs the $7.2 bln consensus.
- Company-wide operating margins for the first quarter of 2014 were 11.9%, a 50 basis points improvement when compared to 11.4% in first-quarter 2013
- Funded backlog at the end of first-quarter 2014 was $48.3 billion, and total backlog was $56 billion, a more than 20% increase from year-end 2013
7:12 am Asbury Automotive Announces the Opening of Two Stand-alone Used Vehicle Stores; estimates launch of initiative may reduce EPS by 8 to 12 cents per share in 2014 (ABG) : Co announced that they are in the process of opening two stand-alone used vehicle stores under the 'Q auto' brand name in 2014.
- Expect first store to open in Tampa, FL this June with a second store opening this fall in Jacksonville, FL;
- Believes it will take a store approximately 18 months to achieve run-rate revenues and profitability;
- Estimate the launch of this initiative may reduce EPS by 8 to 12 cents per share in 2014;
- Estimate incremental 2014 capital commitments related to this initiative may be up to $25 million; this would be in addition to the $60 million of capex Asbury has previously announced.
7:11 am Omnicare beats by $0.01, beats on revs; reaffirms FY14 EPS guidance, revs guidance (OCR) : Reports Q1 (Mar) earnings of $0.91 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.90; revenues rose 7.8% year/year to $1.57 bln vs the $1.55 bln consensus. Co reaffirms guidance for FY14, sees EPS of $3.64-3.72, excluding non-recurring items, vs. $3.69 Capital IQ Consensus Estimate; sees FY14 revs of $6.30-6.40 bln vs. $6.36 bln Capital IQ Consensus Estimate.
7:10 am Northrop Grumman beats by $0.25, reports revs in-line; raises FY14 EPS range, reaffirms FY14 revs guidance (NOC) : Reports Q1 (Mar) earnings of $2.40 per share, excluding non-recurring items, $0.25 better than the Capital IQ Consensus Estimate of $2.15; revenues fell 4.2% year/year to $5.85 bln vs the $5.84 bln consensus. Total backlog as of March 31, 2014, was $36.2 billion compared with $37.0 billion as of December 31, 2013. The decline in backlog was primarily due to the timing of awards in Aerospace Systems.
- Co raises FY14 EPS guidance range to $8.90-9.15 vs. $8.94 Capital IQ Consensus Estimate (vs. prior $8.70-9.00 range); sees FY14 revs of $23.5-23.8 bln vs. $23.68 bln Capital IQ Consensus Estimate.
7:10 am Fate Therapeutics announces FDA clearance of IND amendment for clinical development of PROHEMA in pediatric patients (FATE) : Co announced that the U.S. Patent and Trademark Office (P.TO) has issued Patent No. 8,691,573 entitled "Stem Cell Cultures." The newly issued patent claims a class of small molecule inhibitors of Rho-associated kinase (ROCK) that are crucial to the therapeutic application of human induced pluripotent stem cells (hiPSCs). Modulators belonging to the patented class have been shown to be necessary for the high-throughput derivation of transgene-free hiPSCs, and for the maintenance, survival and genomic stability of hiPSCs in culture. Fate Therapeutics holds an exclusive license from The Scripps Research Institute (TSRI) to the patent in all commercial fields.
7:09 am Lincoln Electric beats by $0.01, misses on revs (LECO) :
- Reports Q1 (Mar) earnings of $0.91 per share, excluding items, $0.01 better than the Capital IQ Consensus Estimate of $0.90; revenues fell 4.7% year/year to $685.1 mln vs the $723.99 mln consensus. This decrease in sales reflects the benefit from acquisitions, which was offset by lower volumes and unfavorable foreign exchange translation.
- Based on recent changes to Venezuelan currency exchange mechanisms, the Company is now utilizing the SICAD I rate as of March 31, 2014 for remeasurement purposes. As a result of this change, the Company incurred an after-tax charge of $17.7 million to SG&A expenses in the first quarter of 2014. The first quarter of 2013 included after-tax charges of $1.6 million and $8.1 million to Costs of goods sold and SG&A expenses, respectively, due to the devaluation of the Venezuelan currency in February 2013. First quarter 2014 Venezuela financial performance included Sales of $24.2 million and Adjusted net income of $11.2 million, or $0.14 per diluted share.
7:09 am Augusta Resource reports progress on value enhancing process, permitting and project financing; strategic review process initiated by co in response to unsolicited offer from HudBay Minerals (HBM) continues to be active with ten signed confidentiality agreements related to the current process (AZC) : Co provided an update on its strategic review process which continues to be robust. The co also provided an update on permitting and project financing, with both processes advancing well and on track for completion in the second and third quarter of 2014, respectively.
- The strategic review process initiated by Augusta in response to the unsolicited offer from HudBay Minerals (HBM) continues to be active with ten signed confidentiality agreements related to the current process. Potential bidders remain actively engaged in due diligence and ongoing management discussions. Five site tours with detailed management meetings have been conducted or are scheduled to be completed by the end of this week.
- Co in the final stages for the two outstanding federal regulatory approvals required to commence construction at its Rosemont Copper Project: the final Record of Decision from the U.S. Forest Service and the Clean Water Act Section 404 Permit from the U.S. Army Corps of Engineers. The important precursors to both of these approvals have been completed and submittals are pending with the agencies for action.
7:09 am Procter & Gamble beats by $0.03, reports revs in-line; reaffirms guidance (PG) : Reports Q3 (Mar) earnings of $1.04 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $1.01; revenues fell 0.2% year/year to $20.56 bln vs the $20.69 bln consensus.
- The Company continues to expect organic sales growth of three percent to four percent. All-in sales growth is expected to be ~one percent, including a negative foreign exchange impact of two to three percent.
- Core earnings per share are expected to grow three percent to five percent for the fiscal year, and reported earnings per share are expected to grow in the range of one percent to four percent. Organic sales grew three percent. Organic sales were at or above year ago levels in each reporting segment. Volume grew three percent. Pricing increased sales by one percent with higher pricing in each reporting segment, and unfavorable geographic and product mix decreased sales by one percent.
- Co lowered FY14 guidance on Feb 11.
7:08 am Ingersoll-Rand beats by $0.03, reports revs in-line; co reaffirms its outlook, guides Q2 EPS in-line; guides FY14 EPS in-line, revs in-line (IR) : Reports Q1 (Mar) earnings of $0.29 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.26; revenues rose 3.2% year/year to $2.72 bln vs the $2.72 bln consensus.
- Based on a forecast of moderate growth in worldwide construction and slow growth in industrial markets for the remainder of the year, the co reaffirms its outlook for 2014.
- Co reaffirms guidance for Q2, sees EPS of $1.09-1.13, excluding non-recurring items, vs. $1.06 Capital IQ Consensus Estimate, reaffirms revs growth of 4-5%
- Co reaffirms guidance for FY14, sees EPS of $3.05-3.20, excluding non-recurring items, vs. $3.14 Capital IQ Consensus Estimate; reaffirms FY14 revs growth of 3-4%, which equates to ~$12.7-12.8 bln vs. $12.86 bln Capital IQ Consensus Estimate.
7:08 am Synthetic Biologics announces positive preclinical research findings for SYN-005, the co's proprietary monoclonal antibody (mAb) combination therapy for treating Pertussis, in two non-human primate studies (n=15) (SYN) :
- Co announced positive preclinical research findings for SYN-005, the Company's proprietary monoclonal antibody (mAb) combination therapy for treating Pertussis (whooping cough), in two non-human primate studies.
- In the second pertussis study in particular, SYN-005 was associated with favorable decreases in white blood cell counts within two days and the achievement of nearly normal levels within one week.
- Based on positive non-human primate and murine model findings, Synthetic Biologics has filed an additional patent application around pertussis antibodies, intends to move into cGMP manufacturing of SYN-005, and intends to file an Investigational New Drug application to support a Phase I clinical trial expected to initiate during the first half of 2015. The Company also intends to request an Orphan Drug designation for SYN-005 for the treatment of Pertussis.
7:08 am Reynolds American misses by $0.02, beats on revs; guides FY14 EPS in-line (RAI) : Reports Q1 (Mar) earnings of $0.72 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.74; revenues rose 2.8% year/year to $1.94 bln vs the $1.91 bln consensus.
- Co reaffirms in-line guidance for FY14, sees EPS of $3.30-3.45 vs. $3.37 Capital IQ Consensus Estimate.
- As RAI previously announced on April 16, Susan M. Cameron will succeed Delen as president and chief executive officer, effective May 1.
7:07 am Teledyne Tech beats by $0.07, misses on revs; guides Q2 EPS in-line; raises FY14 EPS above consensus (TDY) : Reports Q1 (Mar) earnings of $1.20 per share, $0.07 better than the Capital IQ Consensus Estimate of $1.13; revenues rose 0.7% year/year to $573.5 mln vs the $583 mln consensus.
- Co issues in-line guidance for Q2, sees EPS of $1.24-1.28 vs. $1.28 Capital IQ Consensus Estimate.
- Co raises issues upside guidance for FY14, sees EPS of $5.10-5.14 vs. $5.09 Capital IQ Consensus Estimate.
"...Operating margin increased 116 basis points and earnings per share increased 12.1% compared to last year. Furthermore, orders exceeded sales by approximately 7% in the quarter, largely due to robust orders across our marine oil and gas instrumentation businesses. Despite the anticipated year-over-year reduction in sales within our aerospace and defense electronics segment, greater sales of commercial avionics and communication equipment improved margins and helped offset the decline in sales..."
7:06 am Six Flags reports EPS in-line, misses on revs (SIX) :
- Reports Q1 (Mar) GAAP loss of $0.64 per share, in-line with the Capital IQ Consensus Estimate consensus of ($0.64); revenues fell 15.8% year/year to $73.72 mln vs the $79.91 mln consensus.
- The decline was primarily related to an attendance shift due to the 2014 Easter holiday falling in April, which caused many schools to schedule spring-break vacations in the second quarter versus the first quarter 2013. Attendance in the first quarter was 1.4 million guests.
- Total guest spending per capita for the first quarter increased 7 percent over the first quarter 2013 to $43.86 with admissions per capita increasing 10 percent or $2.21 to $25.01 and in-park spending per capita increasing 5 percent or $0.82 to $18.85.
7:06 am Spectrum Pharma's Captisol-enabled Melphalan trial meets primary endpoint; co expects to file an NDA in Q3 and plans to launch this drug with its existing hematology/oncology sales force next year pending approval (SPPI) : Co announced that its pivotal trial of Captisol-enabled (propylene glycol-free) Melphalan met its primary end points.
- The phase 2 pivotal trial evaluating CE Melphalan was a multi-center trial evaluating safety and efficacy. The primary objective of the study was to determine the overall safety and toxicity profile in multiple myeloma patients receiving 200 mg/m2 of CE Melphalan as myeloablative therapy prior to autologous stem cell transplantation (:ASCT). The secondary objectives evaluated the efficacy of CE Melphalan in this patient population as measured by multiple myeloma response rate (according to International Myeloma Working Group [IMWG] criteria), and the rates of myeloablation, and engraftment. The primary endpoint of this Phase 2 trial was met, and additional analyses are currently underway.
- The company plans to file an NDA in the third quarter.
- Spectrum Pharmaceuticals gained global development and commercialization rights to CE Melphalan from Ligand Pharmaceuticals Incorporated (LGND) in March 2013.
7:05 am Hercules Offshore beats by $0.09, misses on revs (HERO) : Reports Q1 (Mar) earnings of $0.22 per share, $0.09 better than the Capital IQ Consensus Estimate of $0.13; revenues rose 37.9% year/year to $256.7 mln vs the $264.64 mln consensus.
- "First quarter results reflect a healthy jackup rig market in the U.S. Gulf of Mexico and fleet growth in our International Offshore segment. Domestic drilling activity remains active, with the possibility of an improvement in demand later this year. Average dayrates in the U.S. Gulf of Mexico continue to rise as various rigs roll into higher paying contracts. Going forward, we expect stable pricing in the U.S. Gulf of Mexico, as all new contracts signed during the latest quarter were executed at current dayrates. Our International Offshore segment benefitted from the contributions of new assets, including the Hercules Triumph and Hercules Resilience."
7:05 am Popular beats by $0.17 (BPOP) : Reports Q1 (Mar) earnings of $0.83 per share, $0.17 better than the Capital IQ Consensus Estimate of $0.66.
- Net interest margin of 4.70% in Q1 2014, vs. 4.74% in Q4 2013.
- Net charge-offs (NCOs) of 0.80% of average loans held-in-portfolio; excluding the $8.9 million in recoveries from the sale in Q4 2013 of previously charged-off loans, NCOs declined by $1.0 million;
- Allowance for loan losses to loans held-in-portfolio remained stable at 2.51% vs. 2.49% in Q4 2013;Non-performing loans held-in-portfolio (NPLs) increased by $37.4 million, quarter over quarter; driven by a single $51.6 million commercial credit relationship; NPLs to loans ratio at 2.9% vs. 2.8% in Q4 2013.
- Co also announced that it had entered into definitive agreements to sell its regional operations in California, Illinois and Central Florida to three different buyers and centralize certain back office operations in Puerto Rico and New York. The transactions will result in net premium of approximately $25 million and an estimated noncash goodwill write-down of approximately $160 million. An estimated restructuring charge of approximately $53 million will be taken by PCB, and annual operating expenses will be prospectively reduced by an estimated $45 million after the reorganization is complete. This decrease in expenses offsets a reduction in revenues that results from the sale of the regional operations.
7:05 am Tessera Tech signs definitive agreement with O-Film; Tessera to receive $50 Million, comprised of Fotonation prepaid royalties, MEMS IP license, equipment sale and sale of selected non-core patents (TSRA) : Co announced that, together with its wholly-owned subsidiary DigitalOptics Corporation, has entered into a definitive agreement with Shenzhen O-Film Tech Co. whereby O-Film will pay DOC $50 million, consisting of a $20.5 million prepaid royalty and support fee for a non-exclusive license to specific FotoNation product features, $7.5 million for a non-exclusive license for core MEMS auto-focus and other related intellectual property, an undisclosed future per unit royalty for MEMS-based camera modules, $22 million for certain manufacturing equipment and supplies, and certain non-core patents and patent applications (including patents and patent applications for Wafer Level Optics, Micro Optics and camera module technology). The closing of the transaction is expected to be completed by October 2014, and is subject to customary closing conditions.
7:04 am Procter & Gamble reaffirms FY14 (PG) :
7:03 am Dow Chemical beats by $0.08, misses on revs (DOW) : Reports Q1 (Mar) earnings of $0.79 per share, $0.08 better than the Capital IQ Consensus Estimate of $0.71; revenues rose 0.5% year/year to $14.46 bln vs the $14.72 bln consensus.
- Adjusted EBITDA margin expanded more than 60 basis points to 16.6 percent on a year-over-year basis, with increases reported in all operating segments except Feedstocks and Energy. Margins expanded despite a more than $300 million increase in purchased feedstocks and energy, due to continued emphasis on productivity and cost-control actions.
- Commenting on outlook: "Looking forward, we expect a global operating environment of continued slow growth and volatility. Against this backdrop, we have intervened and remain resolute in achieving our short- and medium-term stated earnings targets.... As 2014 unfolds, our actions to generate margin improvement will gain further momentum -- evidenced again by our sixth consecutive quarter of year-over-year earnings growth. All of our key investments remain on track -- especially Sadara and our PDH unit in Texas -- and are expected to deliver increased earnings beginning in 2015. "Further, we will continue to execute aggressive portfolio management and to release additional value through the monetization of non-strategic businesses. Our target remains $4.5 billion-$6 billion of proceeds, to be completed by the end of 2015. This, coupled with the completion of our $4.5 billion share buy-back program by year-end, demonstrates our continued focus on increasingly returning value to our shareholders."
7:03 am Engility awarded position on $2.5 bln contract to support overseas initiatives that advance peace and democracy in countries in transition (EGL) :
- Co announced that its wholly-owned subsidiary, IRG, has been awarded a position on a $2.5 bln indefinite-delivery/indefinite quantity contract to provide specialized technical consulting to local partners working to advance peace and democracy in priority countries that are in transition.
- The contract was awarded by the U.S. Agency for International Development and its Office of Transition Initiatives.
7:03 am Popular subsidiary, Popular Community Bank, to divest its regional operations in California, Illinois and Central Florida and centralize certain back office operations in Puerto Rico and New York (BPOP) : Co announced that in order to sharpen its focus on key markets for its U.S. franchise, drive efficiencies and improve profitability, its subsidiary Popular Community Bank (:PCB) will undergo a strategic reorganization in which it will divest its regional operations in California, Illinois and Central Florida and centralize certain back office operations in Puerto Rico and New York.
- Popular entered into definitive agreements to sell its regional operations, including 41 branches, ~ $1.8 billion in related loan portfolios, and ~ $2.1 billion in deposits, to three different buyers. The transactions will result in net premium of ~ $25 mln and an estimated noncash Goodwill write-down of ~ $160 mln.
- The reorganization of PCB's centralized operations will result in an estimated charge of ~ $53 mln, and annual operating expenses are expected to be prospectively reduced by an estimated $45 mln after the completion of the reorganization. This decrease in expenses offsets a reduction in revenues that results from the sale of the regional operations.
- In Central Florida, PCB will sell 9 branches with loans of ~ $115 mln and deposits of ~ $239 mln to Harbor Community Bank, a bank of ~ $629 mln in total assets.
- In Illinois, PCB will sell 12 branches with loans totaling ~ $521 mln and deposits of ~ $761 mln to First Midwest Bank (FMBI), a bank with ~ $8.3 billion in total assets.
- In California, PCB will sell 20 branches with loans totaling ~ $1.2 billion and ~ $1.1 billion in deposits to Banc of California (BANC), a bank with ~ $3.6 billion in total assets. BAC will pay ~ $5.4 mln for the deposits assumed and loans acquired. The transaction is expected to result in increased pre-tax income of ~ $25 mln in the first year. Management expects that the transaction will be more than 20% accretive to earnings per share in the first year, and have a tangible book value payback period of less than one year.
7:02 am The Medicines Co misses by $0.03, reports revs in-line (MDCO) : Reports Q1 (Mar) earnings of $0.33 per share, $0.03 worse than the Capital IQ Consensus Estimate of $0.36; revenues rose 13.7% year/year to $177.2 mln vs the $175.61 mln consensus.
- Worldwide Angiomax (bivalirudin)/Angiox (bivalirudin) revenue was up 9% from $142.9 million in 2013 to $155.7 million in 2014, driven by United States growth (up from $131.3 million in 2013 to $146.2 million in 2014).
- Recothrom Thrombin topical (recombinant) sales were $13.5 million in the US in the first quarter of 2014. Sales during the first quarter of 2013 were $8.6 million, after co licensed Recothrom in the United States in February 2013.
- "The first quarter was a strong start to the year for us with continued revenue growth. We remain focused on the progression of our late stage portfolio through regulatory filings, reimbursement processes, and manufacturing to execute on the six product launches anticipated in the next 18 months."
7:02 am Entegris misses by $0.01, misses on revs; guides Q2 EPS below consensus, revs below consensus (ENTG) : Reports Q1 (Mar) earnings of $0.12 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.13; revenues rose 0.4% year/year to $165.8 mln vs the $171.83 mln consensus. Co issues downside guidance for Q2, sees EPS of $0.10-0.14, excluding non-recurring items, vs. $0.15 Capital IQ Consensus Estimate; sees Q2 revs of $165-175 mln vs. $180.24 mln Capital IQ Consensus Estimate.
7:01 am The Medicines Co to acquire Tenaxis; co will pay $58 mln upfront on closing of the deal and pay milestone payments of up to $112 mln (MDCO) : Co and Tenaxis Medical, Inc. (Tenaxis) announced an agreement for The Medicines Company to acquire Tenaxis. Tenaxis's sole product, which mechanically seals both human tissue and artificial grafts is approved, but not launched in the US -- having received US PMA approval from the FDA in March 2013 as a vascular sealant. The product is also approved with a European CE Mark as a surgical sealant applicable to cardiovascular, general, urological, and thoracic surgery.
The addition of the Tenaxis product adds another solution for surgical bleeding to The Medicines Company's portfolio which also includes the marketed product, RecoThrom (aqueous, recombinant human Thrombin) and the investigational product, Fibrocaps (a dry powder formulation of fibrinogen and thrombin being developed to aid in hemostasis during surgery) which has completed phase III trials and is under FDA and EMA review.
6:58 am EMC reports EPS in-line, revs in-line; lowers FY14 EPS, raises FY14 rev guidance slightly; raises dividend 15% (EMC) : Reports Q1 (Mar) adj. earnings of $0.35 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.35; revenues rose 1.7% year/year to $5.48 bln vs the $5.43 bln consensus.
- Co issues guidance for FY14, lowers adj. EPS to $1.90 from $1.95 vs. $1.94 Capital IQ Consensus Estimate; raises FY14 revs to $24.575 bln from $24.5 bln vs. $24.51 bln Capital IQ Consensus Estimate.
- In addition, EMC's Board of Directors approved a 15% increase in the quarterly cash dividend paid to EMC shareholders. The first increased dividend of $0.115 per share of common stock will be paid on July 23, 2014 to shareholders of record as of the close of business on July 1, 2014.
6:55 am Prosperity Bancshares beats by $0.03 (PB) : Reports Q1 (Mar) earnings of $1.01 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.98.
- Net interest margin on a tax equivalent basis for the three months ended March 31, 2014 increased to 3.62% compared with 3.42% for the same period in 2013 and decreased from 3.82% for the three months ended December 31, 2013.
- Average loans increased 47.3% or $2.492 billion to $7.756 billion for the quarter ended March 31, 2014, compared with $5.264 billion for the same period in 2013. On a linked quarter basis, average loans increased 7.2% or $517.559 million from $7.238 billion for the quarter ended December 31, 2013.
- Average deposits increased 30.8% or $3.622 billion to $15.382 billion for the quarter ended March 31, 2014, compared with $11.760 billion for the same period of 2013. On a linked quarter basis, average deposits increased 8.4% or $1.191 billion from $14.191 billion for the quarter ended December 31, 2013.
- The provision for credit losses was $600 thousand for the three months ended March 31, 2014 compared with $7.865 million for the three months ended December 31, 2013 and $2.800 million for the three months ended March 31, 2013.
- Net charge offs were $786 thousand for the three months ended March 31, 2014 compared with $496 thousand for the three months ended December 31, 2013 and $315 thousand for the three months ended March 31, 2013.
6:51 am Asbury Automotive beats by $0.17, beats on revs (ABG) : Reports Q1 (Mar) earnings from comt ops of $1.03 per share, $0.17 better than the Capital IQ Consensus Estimate of $0.86; revenues rose 10.6% year/year to $1.36 bln vs the $1.31 bln consensus.
- On April 21, 2014, Michael Kearney, Executive Vice President and Chief Operating Officer of Asbury Automotive Group provided notice that he will retire from the positions of Executive Vice President and Chief Operating Officer on March 31, 2015. Mr. Kearney will continue to serve as Executive Vice President and Chief Operating Officer until that time. On April 23, 2014, the Company issued a press release announcing Mr. Kearney's plan to retire from the Company. A copy of the Company's press release is filed as Exhibit 99.2 to this Current Report and incorporated herein by reference.
6:42 am Hess: PTTEP to acquire 100% equity stakes of subsidiaries of HES in Thailand for ~ $1 bln (HES) :
- PTT Exploration and Production Public Company Limited or PTTEP announced that PTTEP Offshore Investment and PTTEP International, subsidiaries of PTTEP, have successfully signed Share Purchase Agreements to acquire 100% equity stakes of the subsidiaries of Hess in Thailand, namely Hess Thailand Holdings II and Hess Exploration Thailand. The details of HTH and HETCL are as follows:
- Own 15% interest in block B12/27 (mainly in Pailin, Morakot and Ubon fields) and block G7/50 of Contract 4 Project
- Own 35% interest in Block EU-1 and Block E5 North of Sinphuhorm Project
- The total consideration of transaction is ~ $1,000 million which will be funded by PTTEP's cash. The transaction of HTH closes on April 22, 2014 while the transaction of HETCL is expected to be closed within May 2014 as prescribed in the SPA.
6:33 am Marketaxess beats by $0.01, misses on revs (MKTX) : Reports Q1 (Mar) earnings from cont ops of $0.46 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.45; revenues rose 18.1% year/year to $63.4 mln vs the $65.09 mln consensus.
- Commission revenue for the first quarter of 2014 totaled $52.0 million on total trading volume of $187.4 billion, compared to $47.2 million in commission revenue on total trading volume of $160.4 billion for the first quarter of 2013.
- U.S. high-grade trading volume as a percentage of FINRA's high-grade TRACE trading volume increased to an estimated 13.4%, compared to an estimated 12.3% for the first quarter of 2013.
- "Trading volumes were very strong this quarter with record quarterly average daily volume in U.S. high-grade and other credit products. Client trading momentum was evident in both the U.S. and Europe in spite of the robust new issue calendar and the reduction of credit spreads and yields during the quarter...New solutions on the trading system continue to gain traction, and our integration of the Xtrakter business is on track in Europe."
6:31 am Alexion Pharma announces European Commission has granted an orphan drug designation to Soliris (eculizumab) for the prevention of graft rejection following solid organ transplantation (ALXN) :
- Co announced that the European Commission has granted an orphan drug designation to Soliris (eculizumab), a first-in-class terminal complement inhibitor, for the prevention of graft rejection following solid organ transplantation. Graft rejection can cause severe injury to the transplanted organ and is a significant barrier to successful transplantation.
- Soliris is currently approved in the U.S., European Union, Japan and other countries for the treatment of patients with paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome, two disorders caused by chronic uncontrolled complement activation.
6:31 am S&P futures vs fair value: -1.00. Nasdaq futures vs fair value: -0.50. :
6:31 am European Markets : FTSE...6672.17...-9.60...-0.10%. DAX...9568.18...-31.90...-0.30%.
6:31 am Asian Markets : Nikkei...14546.27...+157.50...+1.10%. Hang Seng...22509.64...-221.00...-1.00%.
6:30 am Lakes Entertainment announces sale of its ownership in Dania Entertainment (LACO) :
- Co announced that on April 21, 2014, its wholly owned subsidiary Lakes Florida Development, entered into a Redemption Agreement with Dania Entertainment (:DEH). The Redemption Agreement provides that DEH redeemed Lakes's 20% ownership in DEH in consideration for DEH transferring to Lakes 5% ownership in Dania Entertainment Center (the entity that owns the Dania Casino & Jai Alai in Dania Beach, Florida). Concurrently, Lakes entered into a Purchase Agreement with ONDISS pertaining to the sale of Lakes's membership interest of DEC.
- The Purchase Agreement provides that ONDISS will pay Lakes a total purchase price of ~ $2.5 mln for the 5% ownership in DEC that was transferred to Lakes by DEH. ONDISS made an initial payment to Lakes of $1 mln on April 21, 2014 at which time 40% of Lakes's ownership in DEC was transferred to ONDISS. The remaining purchase price will be paid in three equal semi-annual installments of $530,323.76, and 20% of Lakes's original ownership in DEC will be transferred to ONDISS upon each payment.
6:30 am NeoGenomics extends/amends Strategic Laboratory Services Agreement with Florida Cancer Specialists (NEO) : Co disclsoed that on April 22, 2014, NeoGenomics entered into a Second Amended and Restated Strategic Laboratory Services Agreement with Florida Cancer Specialists, P.L. Under the terms of the Agreement, FCS agreed that, subject to certain exceptions, it would first offer to have NeoGenomics perform all cytogenetics and molecular testing services on cancer specimens from FCS's 72 practice locations before either performing such services in its own laboratory or referring such specimens to other laboratories. FCS also agreed, subject to certain exceptions, that it would first offer to have NeoGenomics perform any other cancer genetic testing services not otherwise performed by FCS's internal laboratory before referring such specimens to other laboratories. NeoGenomics agreed to perform all accessioning and customer service functions and provide certain other services relating to cancer genetics testing for all of FCS's practice locations. The Agreement extends the current contract through December 31, 2015, but will automatically renew for additional one year terms thereafter, unless either party gives the other party six months' prior written notice.
6:29 am Novartis AG announces new data at AAN to confirm efficacy of co's Gilenya across four key measures of MS disease activity, including brain volume loss (NVS) :
- New analyses of pooled data from the FREEDOMS and FREEDOMS II trials will be presented at the 66th American Academy of Neurology (AAN) Annual Meeting in Philadelphia, Pennsylvania, and will show the consistent efficacy of Gilenya (fingolimod) on four key measures of multiple sclerosis disease activity - reducing relapses, new MRI lesion counts, brain volume loss and disability progression.
- An additional analysis of FREEDOMS and FREEDOMS II will show that significantly more Gilenya-treated patients (vs. patients on placebo) had brain volume loss rates comparable to people without MS.
- Co is also presenting trial design information on PARADIGMS, the first controlled clinical trial investigating a disease-modifying therapy in pediatric MS patients. In collaboration with regulatory agencies and international leaders in pediatric MS, co has developed the PARADIGMS study to evaluate the efficacy and safety of fingolimod versus an injectable interferon beta 1-a treatment in pediatric patients treated for 24 months.
6:25 am Praxair reports EPS in-line, misses on revs; guides Q2 EPS below consensus; raises FY14 EPS slightly, raises low end of FY14 rev (PX) : Reports Q1 (Mar) earnings of $1.51 per share, in-line with the Capital IQ Consensus Estimate consensus of $1.51; revenues rose 4.8% year/year to $3.03 bln vs the $3.06 bln consensus.
- Organic sales grew 6% driven by higher on-site volumes from new project start-ups primarily in North America and Asia. By end-market, sales growth was strongest for energy, chemicals, and food and beverage customers, as compared to the prior-year quarter. Acquisitions contributed 2% growth in the quarter.
Co issues in-line guidance for FY14, narrows EPS to $6.30-6.50 from $6.25-6.55 vs. $6.46 Capital IQ Consensus Estimate; sees FY14 revs of $12.4-12.8 bln (from $12.3-12.8 bln) vs. $12.62 bln Capital IQ Consensus Estimate.
"Praxair delivered solid results in the first quarter with sales growth of 9% and operating profit growth of 12%, excluding the impact of currency headwinds. Organic growth of 6% reflected contributions from new projects in North America and Asia, as well as modest volume growth in our South America, Europe and Surface Technologies operating segments. Praxair's relentless focus on achieving productivity benefits and higher price to offset cost inflation produced strong operating leverage and an operating margin of 22.3%. We expect base volumes for the remainder of 2014 to continue to reflect modest growth in-line with the current macro-economic environment. Through continued operational excellence, project execution and financial discipline, we expect to continue to deliver increasing cash flow and earnings per share. We expect contribution from new projects and acquisitions to increase return on capital in the second half of the year."
6:24 am Morgans Hotel Group files investor presentation; says Kerrisdale's retention of Sydell Group, a direct competitor and Yucaipa affiliated entity, is not beneficial to stockholders and likely dangerous (MHGC) :
- Co announced that it has filed with the SEC an investor presentation that it will be using with stockholders in advance of its Annual Meeting to be held on May 14, 2014. On April 22, 2014, the Board of Directors also voted to redeem the co's Stockholder Protection Rights Plan.
- The presentation discusses in detail the significant progress Morgans' Board has overseen in only ten months since stockholders overwhelmingly voted for change to the co's leadership. The presentation also outlines why the slate put forth by Kerrisdale Capital Management introduces unnecessary and substantial risk to the co's future by disrupting key value creating initiatives currently underway.
- "As fiduciaries, the current Board is constantly exploring opportunities to do what is right in the short and longer-term for stockholders, but only at the right time and the right price. The improvements the Board is making, including the recent decision to redeem the Rights Plan, will allow Morgans to consider and pursue a broad range of business opportunities and strategic alternatives from a position of strength and flexibility. We urge all stockholders to vote the WHITE proxy card today."
6:22 am Air Products misses by $0.03, beats on revs; guides Q3 EPS below consensus; guides FY14 EPS in-line (APD) : Reports Q2 (Mar) earnings of $1.32 per share, $0.03 worse than the Capital IQ Consensus Estimate of $1.35; revenues rose 3.9% year/year to $2.58 bln vs the $2.54 bln consensus.
- Co issues downside guidance for Q3, sees EPS of $1.42-1.47 vs. $1.50 Capital IQ Consensus Estimate.
- Co issues in-line guidance for FY14, lowers top end of EPS to $5.70-5.85 from prior guidance of $5.70-5.90 vs. $5.78 Capital IQ Consensus Estimate.
- Merchant Gases sales of $1,040 million increased four percent versus prior year, primarily on higher volumes in U.S./Canada, Asia and Latin America, partially offset by lower helium volumes due to continued global supply constraints. Operating income of $143 million was down 15 percent versus prior year and operating margin of 13.8% was down 300 basis points, primarily due to higher costs, including weather-related impacts in U.S./Canada.
- Outlook Details: Capital expenditure forecast for the current fiscal year is unchanged at approximately $2.0 billion...Air Products' momentum will continue to increase as we load assets, win new business and bring projects on-stream. Going forward, we remain focused on continuing to increase productivity and generate benefits from further price and cost actions. We are confident in our ability to deliver strong earnings growth in the second half of this year."
6:22 am Polaris Inds beats by $0.03, reports revs in-line; raises FY14 EPS below consensus, raises revs in-line (PII) : Reports Q1 (Mar) earnings of $1.19 per share, $0.03 better than the Capital IQ Consensus Estimate of $1.16; revenues rose 19.1% year/year to $888.3 mln vs the $891.44 mln consensus.
Q1 perf by segment:
- Off-Road Vehicles +11%
- Snowmobiles +6%
- Motorcycles +52%
- Small Vehicles +248%
- Parts, Garments & Accessories +20%
Co raises guidance for FY14, sees EPS of $6.30-6.45 vs. $6.47 Capital IQ Consensus Estimate and above prior guidance of $6.17-6.37; sees FY14 revs of +14-16% YoY to ~$3.83-4.38 bln vs. $4.35 bln Capital IQ Consensus Estimate and above prior guidance of +11-14% YoY to ~$4.193-4.306 bln.
6:20 am TE Connectivity beats by $0.04, reports revs in-line; guides Q3 EPS below consensus, revs in-line; tweaks FY14 guidance, in-line (TEL) : Reports Q2 (Mar) earnings of $0.95 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.91; revenues rose 5.1% year/year to $3.43 bln vs the $3.45 bln consensus.
Co issues guidance for Q3, sees EPS of $0.96-1.00 vs. $1.02 Capital IQ Consensus Estimate; sees Q3 revs of $3.54-3.64 bln vs. $3.62 bln Capital IQ Consensus Estimate.
Co issues in-line guidance for FY14, narrows EPS to $3.72-3.84 from $3.65-3.85 vs. $3.78 Capital IQ Consensus; sees FY14 revs of $13.8-14.1 bln from $13.8-14.2 bln vs. $14.01 bln Capital IQ Consensus Estimate.
"Orders and sales were up organically in all regions, driven by strong performance in most of our markets including automotive, industrial transportation, aerospace, oil and gas, industrial equipment, appliances and broadband networks," said Tom Lynch, TE Connectivity Chairman and Chief Executive Officer. "I continue to be pleased with our execution as we improved our adjusted operating margins to 15.5 percent, up 190 basis points over the prior year, and had another quarter of solid cash flow. "During the quarter, orders increased 4 percent, keeping us on track for continued double digit adjusted earnings growth in the second half of the year," said Lynch. "We expect continued strength in our transportation and industrial markets in the second half.
6:20 am QRxPharma announced earlier the FDA Anesthetic and Analgesic Drug Products Advisory Committee has voted to recommend against approval of Moxduo (QRXPY) : Co announced that the FDA Anesthetic and Analgesic Drug Products Advisory Committee has voted to recommend against approval of Moxduo, an immediate release Dual Opioid for the treatment of moderate to severe acute pain. The Advisory Committee found the co did not provide sufficient evidence to warrant approval of Moxduo at this time.
6:17 am Navigator Holdings exercises an option for three newbuilds (NVGS) : Co announced that it exercised its option to build an additional three 35,000 cubic meter ethylene/ethane capable semi-refrigerated liquefied gas carriers, in addition to the one vessel of the same size already under construction. The three additional vessels will be built at Jiangnan Shipyard in China for $78.4 million each.
6:15 am On The Wires (:WIRES) :
- K12 (LRN) released a new AP Exam Review Flashcard mobile app on iTunes, Google Play and the Amazon AppStore.
- ContraVir Pharma (CTRV) announced that Timothy M. Block has joined the co's Board of Directors.
- Digital River (DRIV) announced the expansion of its Digital River SMB Payments solution into the United Kingdom.
- Dunkin' Donuts (DNKN) announced the signing of multi-unit store development agreements with two new franchise groups to develop 20 new restaurants in South Orange County and the San Fernando Valley area over the next several years.
- rfXcel announced that SciClone Pharma (SCLN) has selected rfXcel Traceability System to meet its China product compliance needs and further advance its ongoing efforts to minimize counterfeiting of its proprietary products in China.
- AtTask and WebDAM, a Shutterstock (SSTK) co, announced a strategic partnership and launched a joint integration of their marketing-focused technologies.
- OncoSec Medical (ONCS) has named Adil Daud as Chief Clinical Strategist.
- DaVita Kidney Care, a division of DaVita HealthCare Partners (DVA), acquired three hemodialysis centers from Malaysian dialysis provider Sinar Indentiti Sbn Bhd, further expanding its care of kidney patients in the country.
6:15 am CORRECTION: UNS Energy was incorrectly attributed to a blog article in an earlier posting; that has been deleted (UNS) :
6:14 am JAKKS Pacific beats by $0.02, beats on revs; reaffirms FY14 EPS guidance, revs guidance (JAKK) : Reports Q1 (Mar) loss of $0.74 per share, $0.02 better than the Capital IQ Consensus Estimate of ($0.76); revenues rose 5.6% year/year to $82.5 mln vs the $75.57 mln consensus.
- Co reaffirms guidance for FY14, sees EPS of $0.30-0.40 vs. $0.36 Capital IQ Consensus Estimate; sees FY14 revs of $633-640 mln vs. $642.33 mln Capital IQ Consensus Estimate. Co sees FY14 EBITDA in the range of $41 million to $43 million.
- As of March 31, 2014, the Company's working capital was $120.4 million, including cash and equivalents and marketable securities of $113.6 million, compared to working capital of $158.3 million including cash and equivalents and marketable securities of $165.6 million as of March 31, 2013.
6:12 am Unilife Corporation responds to Blog article (UNIS) : Co announces a response on behalf of its shareholders in relation to a series of malicious blogs containing false and misleading information published over recent months by short sellers on a notable website.
- Unilife has requested that the SEC investigate these short sellers and their associates for stock manipulation and illicit gains. Unilife categorically refutes any allegations of wrong-doing by the Company, its directors, officers and management. In particular, Unilife would like to address the following:
Unilife has refuted these allegations, declined a settlement offer by the plaintiff, and expects to prevail should the case proceed to trial. Unilife has co-operated fully with the SEC in its review, provided extensive information, and responded to all questions. Unilife does not believe that there are any grounds for any action to be taken against the Company.
- Unilife has never paid anyone to publish articles about it. No officer has ever sold Unilife stock since the Company listed on NASDAQ in 2010, with the CEO and COO having purchased in excess of $4 million in Unilife stock in recent years.
- The CFO's departure was not due to a resignation but part of a long-term succession plan. Mr. Shortall has never been a director or officer of a Company that has failed, or gone bankrupt.
- Unilife has successfully been through numerous due diligence processes conducted by multiple global pharmaceutical customers, investors, analysts, financial auditors and regulatory bodies.
6:11 am W.R. Grace beats by $0.03, reports revs in-line (GRA) : Reports Q1 (Mar) earnings of $0.77 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.74; revenues rose 4.9% year/year to $744.5 mln vs the $738.98 mln consensus.
- Segment Gross Margin of 36.3 percent declined 90 basis points compared with the prior-year quarter primarily due to higher operating costs resulting from the impact of extreme cold weather on the company's large manufacturing facility at Curtis Bay, MD. The Curtis Bay facility, which produces both refinery catalysts and silica-based engineered materials, was closed intermittently for 13 days in the first quarter due to the weather conditions.
- Adjusted EBIT of $111.3 million decreased 4.7 percent compared with $116.8 million in the prior-year quarter.
- On February 3, 2014, Grace emerged from Chapter 11 pursuant to the terms of its Joint Plan of Reorganization. The Joint Plan sets forth how all pre-petition claims and demands against Grace were resolved. See Grace's most recent periodic reports filed with the SEC for a detailed description of the Joint Plan.
6:07 am Thermo Fisher beats by $0.13, beats on revs; raises FY14 EPS & revenue guidance (TMO) : Reports Q1 (Mar) earnings of $1.53 per share, $0.13 better than the Capital IQ Consensus Estimate of $1.40; revenues rose 22.3% year/year to $3.9 bln vs the $3.78 bln consensus.
- Co issues guidance for FY14, raises EPS to $6.80-6.95 from prior guidance of $6.70-6.90, excluding non-recurring items, vs. $6.85 Capital IQ Consensus Estimate; raises FY14 revs to $16.84-17.0 bln from prior guidance of $16.63-16.83 bln vs. $16.81 bln Capital IQ Consensus Estimate.
- "I'm pleased to report that the integration is on track, and we are confident that we will deliver on our previously outlined synergy targets. Our enhanced technology offering was already apparent when we showcased innovative new Thermo Scientific and Life Technologies products side by side at industry conferences. In Asia-Pacific and emerging markets, our combined scale is a key advantage in providing customers with solutions to achieve their goals."
6:03 am OncoGenex Pharma announces Fast Track designation granted for custirsen in combination with cabazitaxel/prednisone as second-line chemotherapy in Phase 3 AFFINITY trial of men with metastatic castrate-resistant prostate cancer (OGXI) :
- Co announced that the FDA has granted Fast Track designation to the investigation of custirsen when administered in combination with cabazitaxel/prednisone for the treatment of men with metastatic castrate-resistant prostate cancer following prior treatment with a docetaxel-containing regimen.
- Custirsen has also received Fast Track designation from the FDA for treatment of patients with metastatic non-small cell lung cancer as part of the Phase 3 ENSPIRIT trial and for men with metastatic CRPC as part of the Phase 3 SYNERGY trial. Enrollment in the ENSPIRIT trial is ongoing and top-line survival results from SYNERGY are expected by mid-2014.
6:02 am Genworth Financial announces filing of prospectus for Australian IPO (GNW) : Co announces a prospectus has been filed with the Australian Securities and Investments Commission by Genworth Mortgage Insurance Australia, a holding company for Genworth's Australian mortgage insurance business, for an initial public offering of up to 40% of Genworth Australia's ordinary shares by Genworth Australia.
5:35 am On The Wires (:WIRES) :
- Dassault Syst mes (DASTY) announced the extension of the tender offer by its wholly owned indirect subsidiary, 3DS Acquisition, to purchase all outstanding shares of Accelrys (ACCL) have agreed that the expiration date of the tender offer will be extended until midnight, New York City time, at the end of the day on Monday, April 28, 2014, unless otherwise extended or terminated. Except for the extension of the tender offer, all other terms and conditions of the tender offer remain unchanged.
- Sapiens International (SPNS) announced that the Altshuler-Shaham Group, an Israeli firm in the field of asset management, has selected the Sapiens Life & Pension (Sapiens L&P) solution to support the company's Israel based Greenfield life insurance operation
- Federal Express Canada, a subsidiary of FedEx (FDX), has announced its most comprehensive Canadian retail expansion in the company's history. An agreement has been reached with Home Hardware Stores Limited that allows individual Dealer-Owners the ability to house full-service FedEx Authorized ShipCentres within their stores. This agreement represents the largest opportunity for FedEx Express and FedEx Ground retail growth within Canada to date
- Abu Dhabi Securities Exchange and NASDAQ OMX Group (NDAQ) announced that ADX has gone live with X-stream Trading technology.
- Citi, acting through Citibank N.A., has been appointed by Skandinaviska Enskilda Banken AB, a leading Nordic financial services group, as depositary bank for its sponsored Level 1 American Depositary Receipt programme.
- Syntel (SYNT) announced the establishment of a new cross-industry service line called "Syntel Digital One
- Mechel OAO (MTL) announced signing an agreement on creating a pool system for transporting cargo with the Russia's leading intermodal container operator, JSC TransContainer.
4:12 am Mine Safety misses by $0.19, misses on revs (MSA) : Reports Q1 (Mar) earnings of $0.40 per share, $0.19 worse than the Capital IQ Consensus Estimate of $0.59; revenues fell 6.3% year/year to $265.4 mln vs the $285.59 mln consensus.
- First quarter sales in MSA's North American segment increased by $1 million compared to the same period of 2013. A $6 million decline in SCBA revenue associated with the aforementioned product certification delays was offset by improvements of $5 million and $2 million in portable gas detection and head protection product sales, respectively.
- Sales in MSA's European segment increased by $2 million, or 2 percent, compared to the same period last year. Excluding favorable currency effects from a strengthening euro, sales declined by $1 million as strength from ballistic helmet shipments and fixed gas and flame detection sales were offset by a lower level of SCBA and portable gas detection sales.
3:16 am LM Ericsson misses by SEK0.03, misses on revs (ERIC) : Reports Q1 (Mar) earnings of SEK0.90 per share, SEK0.03 worse than the Capital IQ Consensus Estimate of SEK0.93; revenues fell 8.7% year/year to SEK47.5 bln vs the SEK51.4 bln consensus.
- Sales declined YoY, primarily in North America and Japan but partly offset by China, Middle East and Latin America
- Business mix in the quarter was mainly driven by mobile broadband capacity projects. With current visibility, key contracts awarded will gradually impact sales and business mix, mainly in the second half of the year.
- Operating margin improved YoY in all segments to 5.5% (4.0%) mainly driven by mobile broadband capacity sales and lower restructuring charges
3:02 am BE Aerospace beats by $0.05, beats on revs; reaffirms FY14 EPS guidance, guides FY14 revs in-line (BEAV) : Reports Q1 (Mar) earnings of $1.06 per share, $0.05 better than the Capital IQ Consensus Estimate of $1.01; revenues rose 20.1% year/year to $1.01 bln vs the $0.96 bln consensus.
- Bookings during the first quarter of 2014 were strong at ~$1.1 billion, a quarterly record, and reflect a book-to-bill ratio of 1.1 to 1.
- Backlog as of March 31, 2014 was ~$3.9 billion, while awarded but unbooked backlog was approximately $5.0 billion, bringing total backlog, both booked and awarded but unbooked, to a record of ~$8.9 billion.
Co issues mixed guidance for FY14, sees EPS of $4.30, excluding non-recurring items, vs. $4.36 Capital IQ Consensus Estimate; sees FY14 revs of excess of $4.0 bln vs. $4.03 bln Capital IQ Consensus Estimate.
- 2014 free cash flow conversion ratio is expected to be ~65%of net earnings.
2:54 am Dr. Reddy's launches Fenofibrate capsules (RDY) : Co announces that it has launched Fenofibrate Capsules, USP 43 mg and 130 mg a therapeutic equivalent generic version of ANTARA capsules, in the US market on April 22, 2014, approved by the FDA.
- The ANTARA capsules brand and generic had U.S. sales of ~$74 mln MAT for the most recent twelve months ending in February 2014 according to IMS Health.
2:33 am InterXion announces private offering of EUR125 mln of 6.00% Senior Secured Notes due 2020 (INXN) :
2:19 am Allergan adopts one-year Stockholder Rights Plan (AGN) : Co announces its Board has unanimously adopted a one-year stockholder rights plan effective April 22, 2014 and declared a dividend distribution of one preferred share purchase right on each outstanding share of the Company's common stock.
- The Co became aware of the recent rapid and previously undisclosed accumulation of a significant amount of the Company's common stock in connection with an acquisition proposal made today by Valeant Pharmaceuticals, Inc. The Plan is not intended to prevent an acquisition of the Company on terms that the Board considers favorable to, and in the best interests of, all stockholders. Rather, the Plan aims to provide the Board with adequate time to fully assess any proposal.
- Under the Plan, stockholders of record at the close of business on May 8, 2014 will receive one right for each share of Allergan common stock held on that date. The distribution of the rights is not taxable to stockholders, and the Plan is scheduled to expire on April 22, 2015.
1:53 am On The Wires (:WIRES) :
- Oil States International (OIS) announced that its subsidiary, Civeo Corporation has filed amendment number three to its Form 10 (Form 10) with the SEC in connection with Oil States' previously announced plan to effect a spin-off of its accommodations business.
- Bristol-Myers Squibb (BMY) and Samsung BioLogics announced the companies will increase the scope of their existing manufacturing agreement in which Samsung will manufacture commercial drug substances and drug product for several Bristol-Myers Squibb biologic medicines at its Incheon manufacturing site. Financial terms of the agreement are not disclosed.
- Legacy Reserves LP (LGCY) announced that the Board of Directors of its general partner has approved a cash distribution attributable to the first quarter of 2014 of $0.595 per unit, payable on May 15, 2014, to unitholders of record at the close of business on May 2, 2014. This quarterly distribution is a $0.005 increase from the prior quarter
- Wood Creek Capital Management announced that its affiliate, GFL Holdings, has completed the purchase of 100% of the class A common shares in Genesis Funding from AerCap International Bermuda, a wholly owned subsidiary of AerCap Holdings N.V. (AER).
- SanDisk Corporation (SNDK) announced the availability of its 1Z-nanometer technology, the most advanced NAND flash process node in the world.
- Global energy and commodity news and price reporting agency Argus and IHS Inc (IHS), a leading global source of critical information and insight, have licensed the API 8 coal index to Hong Kong Exchanges and Clearing to enable the listing of coal derivative products.
1:33 am Constellium intends to offer ~EUR590 mln of senior unsecured notes consisting of USD denominated senior notes due 2024 and euro denominated notes due 2021 (CSTM) :
1:27 am MarkWest Energy increases quarterly cash distribution by 1.2% over Q4 (MWE) : Co announces that the Board declared a cash distribution of $0.87 per common unit for the first quarter of 2014, for an implied annual rate of $3.48 per common unit.
- The first quarter 2014 distribution represents an increase of $0.04 per common unit, or 4.8%, compared to the first quarter 2013 distribution and an increase of $0.01 per common unit, or 1.2%, compared to the fourth quarter 2013 distribution.
- The first quarter 2014 distribution is payable May 15, 2014, to unitholders of record on May 7, 2014. The ex-dividend date is May 5, 2014.
1:18 am Insperity responds to Stadium Capital's open letter and stockholder proposals (NSP) : Co announces that it has issued a letter in response to Stadium Capital Management's open letter to Insperity stockholders dated today, April 22, 2014. The Board's response noted, among other things, that:
- Stadium Capital's letter and press release are full of inaccuracies and mischaracterizations as detailed in the Board's response, including:
- Insperity's reported adjusted EBITDA actually increased 12% from 2011 to 2013 (not a decrease of 6% as reported by Stadium Capital), which is in line with the public competitors cited in Stadium Capital's letter, and represents a 67% increase since 2009.
- Stadium Capital overstated the total executive compensation for all named executive officers over the past five years by 14%.
- Despite being a stockholder since 2004 (and a major stockholder since 2008) and a long history of open dialogue, Stadium Capital first raised these concerns in the past few weeks.
- The Board also expressed its disappointment that, after spending significant time and effort considering Stadium Capital's requests and speaking nearly daily to its representatives during the past several weeks, Stadium Capital has chosen this route. The Board prides itself on its accessibility and responsiveness to all stockholder concerns, and reaffirmed its commitment to serving the interests of all stockholders and executing on its strategic plan going forward.
12:57 am InterCloud Systems files Registration Statement in order to comply with its obligations under those certain 12% convertible debentures dated December 13, 2013 (ICLD) :
- Company Earnings