InPlay from Briefing.com

Briefing.com

12:57 pm Nasdaq Comp -38 sets new low in recent trade -- Dow -86 and S&P -9 did not confirm the move (:TECHX) :  

12:30 pm Porsche Correction: Porsche Cars N. America unit did not report July sales +8.3% y/y - prior comment has been deleted; correct July sales were +12.6% y/y to 4,300 vehicles (POAHY.PK) :  

12:24 pm Subaru of America reports July 2014 U.S. sales increased 27% YoY to 35,994 vehicles :  

12:16 pm Floor Talk (:TALKX) : The stock market was provided a basis to rebound today with the July employment report, which was just right for the policy doves.  It showed payroll growth that was weaker than expected, average hourly earnings that were flat, and an uptick in the U6 unemployment rate (accounts for underemployed and unemployed workers) to 12.2% from 12.1%.

The major indices, though, moved out of the gate in skittish fashion, presumably still shell-shocked by the scope of Thursday's losses.  They eventually ran their way back to positive territory, bolstered by the better than expected (and encouraging) ISM Index report for July. The highs for the session were put in just after 10:00 a.m. ET.

One could surmise that the ISM number stirred concerns again about the possibility of the Fed raising rates sooner rather later, yet that argument gets blown out of the water when pitted against the big price gains in the Treasury market at both the front end and back end of the curve, and in the weakness in the US Dollar Index (DXY 81.27, -0.19).  The 10-yr note is up 18 ticks, pushing its yield down to 2.49%, while the 2-yr note is up three ticks, driving its yield down to 0.47%.  

What we appear to have then is another day of disappointing price action feeding the move to take some money off the table.  Reports that the ISDA ruled Argentina is in a failure-to-pay credit event haven't helped sentiment.

At some point, the stock market might come back around and use the drop in long-term rates, or the sense that it is oversold short term, as a basis to stage a comeback effort.  To this point, though, it has had the look of a market that is intent on lowering risk exposure.  

12:10 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

  • LNKD (197.82 +9.51%): Beat quarterly EPS by $0.12 ($0.51 vs $0.39 estimate), revs rose 46.8% yoy to $534 mln vs $510.46 mln estimate; sees Q3 EPS of $0.44 vs $0.40 estimate, revs of $543-547 mln vs $540.28 mln estimate; sees FY14 EPS of $1.80 vs $1.65 estimate, revs of $2.14-2.15 bln vs $2.13 bln estimate; target raised to $220 from $200 at Susquehanna, to $250 from $220 at Pacific Crest, to $245 from $205 at Telsey Advisory Group, to $300 from $280 at Jefferies
  • EXPE (83.29 +4.87%): Beat quarterly EPS by $0.28 ($1.03 vs $0.75 estimate), revs rose 24.0% yoy to $1.49 bln vs $1.44 bln estimate; gross bookings grew 29%; target raised to $92 from $82 at Cantor Fitzgerald, to $90 from $80 at RBC Capital Markets, to $95 from $85 at FBR Capital
  • SNN (89.6 +4.10%): Reported EPS of GBP 0.10, revs rose 3% yoy to GBP 1.147 bln vs GBP 1.135 bln estimate; co said, "We anticipate that the prevailing market conditions seen in the first half of 2014 will continue throughout the rest of the year"
Large Cap Losers
  • MT (14.38 -5.46%): Missed quarterly EPS by $0.17 ($0.03 vs $0.20 estimate), revs fell 47.0% yoy to $10.7 bln vs $20.42 bln estimate
  • MPEL (31.85 -4.07%): Macau Gaming Inspection and Coordination Bureau reports July gross gaming revs declined 3.6% yoy to $28.42 bln patacas vs +20% in July 2013
  • BBBY (61.79 -2.37%): Downgraded to Perform from Outperform at Oppenheimer
Mid Cap Gainers
  • BYI (77.94 +29.54%): To be acquired by Scientific Games (SGMS) for $83 per share in cash
  • SPR (35.68 +9.55%): Beat quarterly EPS by $0.31 ($1.01 vs $0.70 estimate), revs rose 18.5% yoy to $1.8 bln vs $1.69 bln estimate; backlog ~$41 bln; co sees FY14 EPS of $2.90-3.05 vs $2.94 estimate, revs of $6.7-6.9 bln vs $6.72 bln estimate
  • SYNA (78.59 +8.81%): Beat quarterly EPS by $0.05 ($1.46 vs $1.41 estimate), revs rose 36.8% yoy to $315 mln vs $305.08 mln estimate; target raised to $110 from $100 at Needham, to $96 from $90 at Craig Hallum
Mid Cap Losers
  • GPRO (41.1 -14.32%): Beat quarterly EPS by $0.01 ($0.08 vs $0.07 estimate), revs rose 38.1% yoy to $244.6 mln vs $237.97 mln estimate; downgraded to Neutral from Buy at Dougherty & Co
  • ARRS (29.69 -13.11%): Beat quarterly EPS by $0.02 ($0.70 ex items vs $0.68 estimate), revs rose 42.9% yoy to $1.43 bln vs $1.43 bln estimate; sees Q3 EPS of $0.69-0.74 vs $0.69 estimate, revs of $1.37-1.41 bln vs $1.42 bln estimate
  • SPWR (33.83 -7.90%): Beat quarterly EPS by $0.03 ($0.28 vs $0.25 estimate), revs fell 4.4% yoy to $621.1 mln vs $595.98 mln estimate; sees Q3 EPS of $0.15-0.35 ex items vs $0.29 estimate, revs of $600-650 mln vs $658.20 mln estimate; sees FY14 EPS of $1.10-1.40 ex items vs 1.30 estimate, revs of $2.50-2.65 bln vs $2.6 bln estimate

11:58 am European Markets Closing Prices (:SUMRX) : European markets are now closed; stock markets across Europe performed as follows:

  • UK's FTSE:-0.8%
  • Germany's DAX:-2.1%
  • France's CAC:-1.0%
  • Spain's IBEX:-1.8%
  • Portugal's PSI:-3.0%
  • Italy's MIB Index:-1.0%
  • Irish Ovrl Index:-0.5%
  • Greece ASE General Index: -0.5%

11:55 am Hyundai Motor American unit reports July 2014 North American sales increased 1.5% YoY to 67,011 units (HYMTF) :  

11:50 am Major averages extend in recent trade -- Dow -87, S&P -10, Nasdaq Comp -35 (:TECHX) :  

11:48 am Whirlpool: Italian Court of Ancona approves Whirlpool Corporation's Indesit share purchase (WHR) : Co announced that  the Italian Court of Ancona issued the authorization relating to the sale of certain Indesit Company S.p.A. shares to Whirlpool.

  • On July 10, 2014, Whirlpool, Fineldo S.p.A. and members of the Merloni family entered into binding agreements for Whirlpool's acquisition of Indesit shares subject to court and antitrust approval and other customary conditions. 
  • The acquisition, together with the July 17 acquisition of Ms. Claudia Merloni's shares, will provide Whirlpool with a 66.8%  voting stake in Indesit. 
  • Closing on these agreements remains subject to antitrust approvals and is expected to take place by the end of 2014.

11:44 am Mazda Motor reports July 2014 US sales increased 17.1% YoY to 29,238 vehicles (MZDAY) :

  • July 2014 marked Mazda's best July since 1993 (21 years) with 29,238 vehicles sold and an increase of 17.1 percent year-over-year (:YOY). 
  • The 2014 Mazda3 accounted for 9,381 vehicles sold and an increase of 1.6 percent YOY, making it the best July for Mazda3 since 2010. 
  • Mazda CX-5 saw its best July ever with 9,109 vehicles sold and an increase of 16.4 percent YOY. Mazda6 recorded its best July in eight years (2006) with 5,049 vehicles sold, an increase of 46.5 percent YOY.
  • SKYACTIV TECHNOLOGY proves to be the key between performance and fuel efficiency as customers demand a no compromise solution. More than 80.0 percent of Mazdas sold in July were equipped with SKYACTIV TECHNOLOGY. 
  • Mazda's Certified Pre-Owned (:CPO) sales reported July sales of 3,637 vehicles, up 12.0 percent YOY. Year-to-date sales CPO sales are up 15 percent versus last year, with 24,289 vehicles sold.

11:42 am Major averages slip to fractional new lows -- Dow -71, S&P -7.6, Nasdaq Comp -26 (:TECHX) :  

11:38 am Kia Motors America reports July 2014 US sales increased 6.7% YoY to 52,309 units :  

11:32 am ICON plc: Pfizer (PFE) and Roche (RHHBY) join ADDPLAN DF consortium (ICLR) : Co announced that Pfizer (PFE) and Roche (RHHBY) have joined the ADDPLAN DF Consortium. The consortium was founded in 2013 by Novartis Pharma AG (NVS), Janssen Pharmaceuticals Inc., Eli Lilly (LLY), and Aptiv Solutions, which is an ICON plc company leading the design and implementation of adaptive trials.

  • The goal of the ADDPLAN DF Consortium is to develop methodologies and execution technologies that improve dose-selection, which remains a major barrier to resolving high failure rates in Phase III trials. 
  • Both Pfizer's and Roche's decision to join the Consortium comes as more companies recognise the value of adaptive design in improving decision making in exploratory development.
  • The ADDPLAN DF Consortium statisticians are currently collaborating to expand the utility of the Multiple Comparison Procedure and Modeling approach, specifically by developing robust methodology for incorporating adaptive functionality. 
  • The current MCP-Mod procedure enables Proof of Concept and dose selection to be established in a single trial.

11:31 am Allergan files lawsuit in Federal Court against Valeant (VRX) and Pershing Square for violations of federal securities laws (AGN) : Co filed a lawsuit in the United States District Court for the Central District of California against Valeant Pharmaceuticals International (VRX), Pershing Square Capital Management, and its principal, William A. Ackman, alleging that Valeant, Pershing Square and Mr. Ackman violated federal securities laws prohibiting insider trading, engaged in other fraudulent practices, and failed to disclose legally required information.

  • After careful consideration, Allergan decided to file the lawsuit in order to ensure that all of its stockholders have the opportunity to make decisions regarding their investment in the co based on compliant, full and fair disclosures, and to ensure that any stockholders voting on corporate matters acquired their shares in accordance with the law. The Allergan Board of Directors is strongly committed to protecting the stockholder franchise and believes it is important that the rights of the Company's stockholders not be infringed by the actions of one hedge fund that significantly profited (to the detriment of other stockholders and the market) by trading in Allergan securities while in possession of material non-public information regarding Allergan. Specifically, as the complaint alleges, between Feb 2014 and Apr 2014, Pershing Square purchased Allergan stock and securities then valued at over $3.2 bln from unknowing co stockholders while fully aware of Valeant's nonpublic takeover intentions, thereby securing for itself and depriving the selling stockholders of value appreciation worth ~ $1.2 bln upon Valeant's announcement of its initial offer on April 22, 2014. 
  • In its complaint, Allergan is seeking, among other remedies, a declaration from the court that Pershing Square and Valeant violated insider trading and disclosure laws, and an order rescinding Pershing Square's purchase of the Allergan shares it acquired illegally. Allergan reserves the right to seek additional remedies against all appropriate parties.

11:30 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (137) outpacing new highs (27) (:SCANX) : Stocks that traded to 52 week highs: AZC, BYI, CBM, CHKE, CORE, CTP, CYH, EXPE, FSI, IBCA, IDIX, IG, INTT, IPDN, KEP, PCRX, PKX, PLNR, RGCO, RWC, SCI, SFBC, SPR, TCX, WSTC, X, XRS

Stocks that traded to 52 week lows: ADGE, ADNC, AEIS, AGCO, AHPI, AIXG, AKAO, ALLY, AQXP, ATU, AVL, AXL, BBRG, BCOV, BDBD, BECN, BGC, BLMN, BOTA, BRP, BTH, CACH, CASS, CCG, CERU, CFFN, CIMT, CLB, CLRX, CLUB, CMCT, CPWR, CRCM, CS, CZR, DB, DLA, DORM, DSKX, DWSN, EGLE, EHTH, ENTR, ESI, EV, FHCO, FMER, FOSL, FOXF, GEOS, GEVO, GK, GKNT, GLF, GLPW, GSK, HERO, HOV, HSOL, HSY, INVT, IOSP, JEC, KBR, KEG, KIOR, KOS, KOSS, L, LNCE, LPX, LTM, LUK, MANT, MCRI, MDC, MDWD, MICT, MIND, MR, MRKT, NDLS, NRX, NTWK, NWBI, NWY, OCN, OCRX, OFLX, OIBR, OMEX, OMG, OXM, PBFX, PGEM, PIR, PSTI, PT, PVH, QNST, QRM, RAVN, RCPI, RPRX, RSH, RUTH, SCL, SCVL, SDT, SEAC, SGA, SGOC, SHOS, SKYW, SLRC, SREV, SSD, STAA, TAXI, TEU, TGA, TITN, TR, UBS, USM, UUU, VCRA, VGGL, VII, VSAR, VVI, WMS, WTI, WWWW, XCO, XNY, ZGNX

ETFs that traded to 52 week highs: none

ETFs that traded to 52 week lows: BAL, RJA, SGG

11:23 am Currency Commentary: DXY Sells Off Post-Jobs (:SUMRX) :

  • The Dollar Index has given up some of its recent gains this morning but is showing signs of bouncing off the 81.20 level. The DXY was trading along the 81.50 level but headed south following the jobs report. The jobs number was viewed as a pollyanna as it came in slightly below high expectations and did not show a pick up in pricing pressures as hourly earnings were flat m/m, In addition to the jobs numbers we saw inline Personal Income & Spending, PCE Prices lower than expected, a slight downward revision to Michigan Sentiment, a miss in Construction Spend and a beat in ISM Manufacturing. A full calendar of data that has left the markets with the idea that the Fed remains on its current course but the chance of an earlier than expected rate hike has cooled. Next week is a very light week on the calendar. Trade Balance (Wed) and Q2 Productivity & Labor Unit numbers (Fri) are the biggest items. But market focus will probably start to shift to Janet Yellen and the Jackson Hole conference at the end of the month.  
  • The euro was able to use the dollar weakness to rally back above the 1.34 level. PMI data from the region was weak but this was expected as Europe, France and Germany had already preannounced. The region remains weak as there is concern about the recovery. So this jump in the single currency is likely short lived. 1.34 will remain a key level for markets to watch moving forward. Next week Industrial Production and Retail Sales numbers will be the market focus. 
  • The pound  continues its decline. A weaker than expected Manufacturing PMI number led to the latest decline as sterling tumbled to a fresh multi-week low of 1.6829. This is helping put talk of a rate hike on hold for the near term. 
  • The yen has held the 103 level and pushed higher this morning. Most of the move came after the jobs report so it would appear the primary driver in yen at this point remains the dollar action. Manufacturing PMI fell short of expectations but have not had a major impact on the yen. The Bank of Japan meets again next week but there is little expected to happen (BONDX, FOREX).

11:18 am Volkswagen AG of America unit reports July 2014 sales increased 5.9% to 30,553 units (VLKAY) :

  • Golf GTI delivered 1,727 units for the month, marking a 39.7 percent increase in sales for the model over the previous July
  • Passat delivered 8,668 units for the month
  • Jetta sedan delivered 11,008 units for the month
  • Tiguan delivered 2,121units for the month
  • High-mileage, TDI Clean Diesel models accounted for 7,062 units, representing 23.1 percent of sales in July
    • Year-to-date TDI sales were 49,202, representing 23.5 percent of sales
    • Passat TDI sales were 2,442, representing 28.2 percent of sales of the vehicle

11:08 am Nasdaq Comp -20 continues to underperform the Dow -60 and S&P -4.7 (:TECHX) : The Nasdaq Comp, after holding above its 50 sma/ema and July lows yesterday is underperforming this morning with these levels recently taken out.

11:01 am Worthington acquires Midstream Equipment Fabrication for purchase price of $40 mln (WOR) : Co announced that it has acquired the business of Midstream Equipment Fabrication, LLC. MEF manufactures patented horizontal heated and high pressure separators used to separate oilfield fluids and gas for customers drilling in the Eagle Ford Shale and is well-situated to serve customers in the Permian Basin. The purchase price was $40 mln.

  • The co is Worthington's fourth acquisition in the upstream oil and gas equipment market.

10:59 am Minor new session lows for Nasdaq 100/Comp -14 -- Dow -39 and S&P -1.5 in range slightly above their opening lows (:TECHX) :  

10:49 am Good Times Restaurants announces July 2014 SSS increased 13.7% (GTIM) : Co announced that its same store sales increased 13.7% in July 2014 over the prior year's increase of 18.4%, representing a two year increase of 32.1%, the tenth consecutive month of two-year same store increases over 20% and an acceleration of the recent 27-28% two year sales increases.

10:47 am Toyota Motor U.S.A. unit reports total July 2014 sales increased 7.3% YoY to 215,802 units (TM) :  

10:20 am Relative sector weakness (:TECHX) : Sector underperforming the S&P during the slip off the highs include: Bank KBE, Reg Bank KRE, Finance XLF, Technology XLK, Semi SMH, Software IGV, Networking XLK, Materials XLB.

10:15 am Nasdaq Comp -7.4 and small-cap set new session lows -- S&P +0.09, Dow -25 (:TECHX) :  

10:11 am Stock indices slip back slightly off highs Nasdaq Comp +1.8, S&P +3.6 (:TECHX) : The Nasdaq Comp held at first level support from The Technical Take in opening trade at 4361/4359 (session low 4362) as did the S&P at 1927/1925 (session low 1925). They stabilized and pushed into positive territory but have thus far paused at first level resistances at 4380/4386 (session high 4385) and 1936/1937 (session high 1937).

10:02 am Limited new rebound highs after second round of data -- Dow +8.2, S&P +5.4, Nasdaq Comp +13 (:TECHX) :  

9:56 am Fractional new bounce high for Nasdaq Comp +11.7 and S&P +2.3 -- Dow -14 (:TECHX) :  

9:40 am Opening Market Summary: Stocks Erase Opening Losses (:WRAPX) : The S&P 500 (+0.1%) has climbed off its opening low, while the Russell 2000 (+0.3%) has shown relative strength in the early going.

All four countercyclical sectors display early gains with the utilities sector (+1.0%) in the lead. The group is an early outperformer after losing 6.9% in July. On the cyclical side, the consumer discretionary sector (+0.2%) sports a modest gain, while most of the remaining sectors hover near their flat lines. The energy sector is an exception, trading lower by 0.6% amid weakness in crude oil. The energy component holds a loss of 0.9% at $97.25/bbl.

Treasuries are near their best levels of the day with the 10-yr yield down two basis points at 2.54%.

9:40 am Major averages rotated into positive territory led by Nasdaq Comp +10 -- S&P +2.5, Dow +1 (:TECHX) :  

9:37 am Relative sector strength as major averages edge up off opening lows (:TECHX) : Gold Miners GDX, Casino, Housing XHB, Gold GLD, Utility XLU, REITs IYR, Social Media SOCL, Semi XSD.

9:34 am Expedia breaks above July range top after reporting to set new multi-year high (EXPE) :  

9:32 am Weaker start for major averages, S&P -3.7 probes first level support at 1927/1925 -- session low 1926 (:TECHX) : Dow -43, Nasdaq Comp -3.7

9:28 am Nissan Motor reports July 2014 U.S. sales increased 11.4% YoY to 121,452 units (NSANY) :

9:27 am On The Wires (:WIRES) :

  • The Hartford Steam Boiler Inspection and Insurance Company and Guidewire Software (GWRE) announced that HSB has successfully deployed Guidewire ClaimCenter as its new platform for claims management.
  • Concurrent (CCUR) has been awarded a U.S. Patent for a method of creating visually appealing consumer user interfaces for TV, PC, web and mobile video services.
  • IBM (IBM) announced that Reflexis has selected SoftLayer, an IBM company, to help customers in the retail industry make the transition to cloud computing.
  • Papa Murphy's Holdings (FRSH) announced it has signed a multi-year agreement with PepsiCo (PEP) to renew their longstanding partnership of over 16 years.

9:20 am Audi of America unit reports July sales increased 11.9% y/y to 14,616 vehicles :  

9:14 am S&P futures vs fair value: -1.70. Nasdaq futures vs fair value: -2.00. (:WRAPX) : The stock market is on track for a modestly lower open as futures on the S&P 500 trade two points below fair value. Index futures displayed larger losses not long ago, but were lifted off their lows by the reaction to the Nonfarm Payrolls report for July. The jobs report missed expectations (209,000 versus Briefing.com consensus 220,000), but futures rallied anyways, which was likely related to the lack of growth in hourly earnings (0.0% versus Briefing.com consensus 0.2%).

Recall that the strong GDP report for Q2 led to chatter suggesting the Fed may be falling behind the curve with regards to timing the first rate hike in the face of strong growth. However, the lack of earnings growth is likely to return the benefit of the doubt to the policymakers at the Fed.

Treasuries rallied off their lows with the 10-yr yield sliding from just under 2.59% to 2.53%.

The final reading of the Michigan Sentiment survey for July (consensus 82.0) will cross the wires at 9:55 ET, while the July ISM Index (consensus 55.9) and June Construction Spending (expected 0.3%) will both be reported at 10:00 ET.

9:10 am CBD Energy secures 64 megawatt, $112 mln solar project in Thailand; estimates it will earn pre-tax profit of $6.08 mln from the project's construction (CBDE) : Co announced an agreement with Environmental Engineering Group Thailand to construct a 64MW solar park with a projected development cost of ~ $112 mln. The project is supported by a 25-year power purchase agreement with the Thai Provincial Electricity Authority.

  • CBDE estimates it will earn pre-tax profit of $6.08 mln from the project's construction, which is expected to be pre sold to a Singapore-based financial institution. 
  • These estimated pre-tax profits are in line with those derived from a previous project completed by CBDE in Thailand.

9:09 am Precious metals pop to new session highs; Dec gold now up 1.0% at $1295.40, Sep silver up 0.5% at $20.52 (:COMDX) :  

9:03 am Ford Motor reported July US sales rose 10% YoY to 212236 vehicles sold (F) :

  • Ford Fusion set an all-time monthly sales record in July with 23,942 cars sold, a gain of 17%. 
  • Ford Explorer sales are up 32% with 16,797 vehicles sold, for the vehicle's best July since 2005. Ford Escape sales are up 19%

9:02 am PharMerica acquires Rx Advantage; financial terms not disclosed (PMC) : Co announced that it has completed the acquisition of Rx Advantage. Rx Advantage provides comprehensive pharmacy services to long-term care facilities and other customers, primarily in Alabama and Florida. Terms of the transaction were not disclosed.

9:01 am Starwood Hotels board increases share repurchase authorization to $1.5 bln; declares special dividend of $0.65 Per Share (HOT) : Co announced that its boardrs has approved a new $1.1 billion share repurchase authorization.

  • Including approximately $400 million remaining under the prior authorization, the cos total share repurchase authorization is now approximately $1.5 billion.
  • The co has repurchased approximately $200 million of shares to date in 2014 and expects to accelerate the pace of its repurchases. 
  • The co declared a regular quarterly dividend of $0.35 per share, payable on September 26, 2014 to stockholders of record on September 5, 2014. 
  • They also declared a special dividend of $0.65 per share, payable on September 26, 2014 to stockholders of record on September 5, 2014. 

9:01 am STAG Industrial announces acquisition and leasing activity for July 2014; acquired one warehouse and distribution building containing a total of 244,050 square feet for ~$10 mln (STAG) : Co announced its acquisition and leasing activity for July 2014.

  • Acquisitions: In July, the co acquired one warehouse and distribution building containing a total of 244,050 square feet for ~ $10 million. The building is located in the greater Minneapolis, Minnesota market. For the year to date, the co has acquired 14 industrial buildings consisting of ~ 3.4 million square feet for ~ $128 million. 
  • Leasing: In July, the co signed one new lease consisting of 10,000 square feet, and three renewal leases consisting of ~ 296,000 square feet. For the year to date, the co has signed 17 renewal leases and seven new or expansion leases for a total of 2.9 million square feet.

9:00 am Bob Evans board describes Sandell proposals as 'short-sighted, unsustainable and not in the best interests of all stockholders' (BOBE) : The co mailed a letter to the company's stockholders discussing the boards determination that proposals made by Sandell Asset Management are "short-sighted, unsustainable and not in the best interests of all stockholders."

  • In the letter, the board urged stockholders to elect the nominees recommended by them. 
  • They noted that after carefully evaluating the ideas presented by Sandell, the board has concluded that:
    • 1) BEF Foods is an important component of the company's long-term growth plan, and disposing of it immediately would not maximize stockholder value; 
    • 2) Based on their analysis, Sandell's rationale for a sale-leaseback of the BER real estate assets is flawed 
    • 3) Sandell's share repurchase demands are based on what we believe are unrealistic assumptions. Bob Evans, meanwhile, has consistently and responsibly returned more than $800 million of capital to its stockholders since FY 2007, including a total of $225 million of stock repurchases in FY 2014.
  • They note that in a further demonstration of their open mindedness, they decided to keep the board size at 12, even with the announced retirement of two incumbent directors before the 2014 Annual Meeting. Since the board has nominated a slate of 10 directors for those 12 positions, they expect that at least two of Sandell's nominees will
    be elected, even if the entire board slate is elected.

9:00 am Northrim Bank increases quarterly dividend 6% to $0.18 from $0.17/share (NRIM) :  

8:59 am S&P futures vs fair value: -2.80. Nasdaq futures vs fair value: -3.50. (:WRAPX) : The S&P 500 futures trade three points below fair value.

It was a sea of red across Asia as all of the major bourses ended in the red following yesterday's carnage on Wall Street.

  • In economic data: 
    • China's Manufacturing PMI rose to 51.7 from 51.0 (expected 51.4), while HSBC Manufacturing PMI ticked down to 51.7 from 52.0 (expected 52.0) 
    • Japan's Manufacturing PMI slipped to 50.5 from 50.8 (expected 50.8) 
    • South Korea's CPI ticked up 0.1% month-over-month (expected 0.2%, previous -0.1%), while the year-over-year reading increased 1.6%, as expected. Separately, HSBC Manufacturing PMI improved to 49.3 from 48.4 and the trade surplus narrowed to $2.52 billion from $5.50 billion (expected surplus of $2.74 billion) 
    • Australia's PPI ticked down 0.1% quarter-over-quarter (expected 0.7%, previous 0.9%), while AIG Manufacturing Index rose to 50.7 from 48.9 
------
  • Japan's Nikkei fell 0.6% from six-month highs despite Bank of Japan Governor Haruhiko Kuroda defending the central bank's upbeat economic outlook amid a slowdown in the data. Electronics maker Sony outperformed, up 4.7%, following its better than expected earnings report. 
  • Hong Kong's Hang Seng lost 0.9%, sliding off three and a half-year highs. Property names were hit as traders booked profits following the recent rally with Cheung Kong off 4.7% to lead to the downside. 
  • China's Shanghai Composite fell 0.7% as brokerage shares weighed. Citic Securities fell 2.5% and Haitong Securities lost 2.3%. 
Major European indices trade lower across the board with Germany's DAX (-1.5%) pacing the slide. Spanish and Italian bonds are on the defensive with Spain's 10-yr yield higher by five basis points at 2.56%, while Italy's benchmark yield is higher by eight basis points at 2.66%
  • Participants received several data points: 
    • Eurozone Manufacturing PMI ticked down to 51.8 from 51.9 (expected 51.9) 
    • Germany's Manufacturing PMI fell to 52.4 from 52.9 (expected 52.9) 
    • Great Britain's Manufacturing PMI slipped to 55.4 from 57.2 (consensus 57.2) 
    • French Manufacturing PMI inched up to 47.8 from 47.6 (expected 47.6) 
    • Italy's Manufacturing PMI fell to 51.9 from 52.6 (consensus 52.6) 
    • Spain's Manufacturing PMI fell to 53.9 from 54.6 (expected 54.7) 
------
  • In France, the CAC holds a loss of 0.7%. Construction company Vinci is the weakest performer, down 8.2%, after warning about its upcoming results. Steelmaker ArcelorMittal trades down 6.8% after missing earnings estimates. 
  • Great Britain's FTSE is lower by 0.9%. United Utilities Group lags with a loss of 3.4% after being downgraded at Credit Suisse. Smith & Nephew outperforms with a gain of 2.2% after reporting in-line results. 
  • Germany's DAX trades down 1.5%. Heavyweights Adidas, Bayer, and Merck underperform with losses between 2.2% and 2.7%.

8:52 am C1 Financial (BNK.TO) launches 2,631,579 share IPO at an expected price range between $18.00 and $20.00 per share (:IPOXX) : C1 Financial announced that it has launched an initial public offering of shares of its common stock pursuant to a registration statement on Form S-1 filed with the SEC.

  • C1 is offering 2,631,579 shares of common stock at an expected price range between $18.00 and $20.00 per share. The common stock is expected to trade on the New York Stock Exchange under the symbol "BNK." 
  • Keefe, Bruyette & Woods, Inc. and Raymond James & Associates, Inc. are acting as joint bookrunners for the offering. Sandler O'Neill & Partners, L.P., Wunderlich Securities, Inc., Hovde Group, LLC and Monroe Financial Partners, Inc. are acting as co-managers for the offering.

8:48 am European Markets Update: CAC -0.6%, FTSE -1.0%, DAX -1.6% (:SUMRX) : Major European indices trade lower across the board with Germany's DAX (-1.6%) pacing the slide. Spanish and Italian bonds are on the defensive with Spain's 10-yr yield higher by five basis points at 2.56%, while Italy's benchmark yield is higher by eight basis points at 2.66% 

  • Participants received several data points: 
    • Eurozone Manufacturing PMI ticked down to 51.8 from 51.9 (expected 51.9) 
    • Germany's Manufacturing PMI fell to 52.4 from 52.9 (expected 52.9) 
    • Great Britain's Manufacturing PMI slipped to 55.4 from 57.2 (consensus 57.2) 
    • French Manufacturing PMI inched up to 47.8 from 47.6 (expected 47.6) 
    • Italy's Manufacturing PMI fell to 51.9 from 52.6 (consensus 52.6) 
    • Spain's Manufacturing PMI fell to 53.9 from 54.6 (expected 54.7) 
------
  • In France, the CAC holds a loss of 0.6%. Construction company Vinci is the weakest performer, down 8.2%, after warning about its upcoming results. Steelmaker ArcelorMittal trades down 6.8% after missing earnings estimates. 
  • Great Britain's FTSE is lower by 1.0%. United Utilities Group lags with a loss of 3.4% after being downgraded at Credit Suisse. Smith & Nephew outperforms with a gain of 2.2% after reporting in-line results. 
  • Germany's DAX trades down 1.6%. Heavyweights Adidas, Bayer, and Merck underperform with losses between 2.2% and 2.7%.

8:47 am On The Wires (:WIRES) :

  • URS (URS) has been awarded an indefinite delivery/indefinite quantity, multiple award contract by the U.S. DoD Information Analysis Centers Enterprise for defense systems technical area tasks.
  • Charles River Associates (CRAI) announced that Nancy Rose has informed the co of her plans to step down immediately from CRA's Board of Directors after 10 years of service, in order to focus on her new role at the DoJ's Antitrust Division, where she has been selected as Deputy Assistant Attorney General for Economic Analysis.
  • Core-Mark Holding (CORE) will be opening a new distribution center in Glenwillow, Ohio; the new facility will bring the co's total capital expenditures to be ~$50 mln for 2014.
  • Builders FirstSource (BLDR) has purchased West Orange Lumber. The transaction closed on July 31, 2014.
  • UBIC (UBIC) announced that its UBIC North America Inc. subsidiary will open a new office in Los Angeles.
  • Applied Optoelectronics (AAOI) shipped its millionth laser mid-year. Surpassing this milestone in July is significant given last year AOI sold just under one mln lasers the entire year.
  • CEL-SCI (CVM) announced that during July the co enrolled 14 patients with advanced primary, not yet treated, head and neck cancer into its global pivotal Phase III head and neck cancer trial for its investigational immunotherapy Multikine.

8:38 am Chevron beats by $0.31 (CVX) : Reports Q2 (Jun) earnings of $2.98 per share, $0.31 better than the Capital IQ Consensus Estimate of $2.67l; revenues rise 0.5% YoY to $57.94 bln (Not comparable to consensus)

  • "Current quarter earnings reflected stronger market conditions for crude oil, although some of these benefits were offset by lower production volumes as a result of planned maintenance activity at Tengizchevroil in Kazakhstan. Gains on asset sales also contributed to our results, as we completed important sales under our three-year divestment program.
  • "We continue to make significant progress on our major capital projects which are expected to underpin a 20% increase in production by 2017 and enable significant growth in our cash flows. In the deepwater Gulf of Mexico, our production is expected to benefit in the near-term from start-up of the Jack/St. Malo Project later this year and the Big Foot Project in 2015. In Australia, our Gorgon and Wheatstone LNG projects continue to reach important interim milestones. Gorgon remains on track for expected start-up in mid-2015. We are also advancing the development of our liquids-rich, unconventional properties in the United States, Canada and Argentina." 

Upstream
  • Worldwide net oil-equivalent production was 2.55 million barrels per day in Q2 2014, down from 2.58 million barrels per day in the 2013 second quarter. Production increases from project ramp-ups in the United States, Nigeria, Brazil and Argentina were more than offset by price and other production entitlement effects in several locations, normal field declines, and maintenance-related downtime at Tengizchevroil in Kazakhstan.
Downstream:
  • U.S. downstream operations earned $517 million in second quarter 2014 compared with earnings of $138 million a year earlier. The increase was mainly due to higher earnings from the 50%-owned Chevron Phillips Chemical Company LLC and stronger margins on refined product sales. Higher gains from asset sales also contributed to the increase.

8:34 am Brunswick acquires Bell Industries' Recreational Products Group; financial terms not disclosed (BC) : Co announced that it has acquired Bell Recreational Products, a subsidiary of Bell Industries. Bell RPG is a distributor of parts and accessories to the marine, recreational vehicle and powersports markets, serving primarily the Upper Midwest through locations in Eagan, Minn., Grand Rapids, Mich. and Milwaukee, Wis. Bell RPG had sales of ~ $40 million in 2013. Terms of the transaction were not disclosed. The acquisition is expected to have a minimal impact upon Brunswick's 2014 earnings.

8:33 am S&P futures vs fair value: -1.10. Nasdaq futures vs fair value: -2.30. (:WRAPX) : The S&P 500 futures trade one point below fair value.

July nonfarm payrolls came in at 209,000, while the Briefing.com consensus expected a reading of 220,000. Nonfarm private payrolls added 198,000 against the 225,000 expected by the consensus. The unemployment rate rose to 6.2% from 6.1%, while the consensus expected no change.

Hourly earnings were unchanged, while the Briefing.com consensus expected an increase of 0.2%. The average workweek was reported at 34.5, which was in line with expectations.

June personal income increased 0.4%, which matched the Briefing.com consensus. Meanwhile, personal spending rose 0.4%, which also matched the consensus.

Separately, core PCE prices rose 0.1%, while the Briefing.com consensus expected an uptick of 0.2%.

8:32 am Federated National announces pricing of $40 million offering of common stock at $19.50 per share (FNHC) : Co announced that it has priced an underwritten public offering of 2,051,283 shares of its common stock at a price to the public of $19.50 per share for gross proceeds of $40.0 million. 

  • The co will use the net proceeds from the sale of the common stock for general working capital purposes, including as statutory capital in support of the co's growth and to sustain its capital levels after its investment in Monarch, once organized.
  • The offering is expected to close on August 6, 2014.

8:31 am Market View: Sep. stock-index futures still lower, but see a notable surge following the 8:30 a.m. ET economic data points (:TECHX) :

  • ESu4 now trades @ 1920.00 -4.75

  • YMu4 now trades @ 16463 -31

  • NQu4 now trades @ 3878.00 -6.75

8:31 am Gold and silver pops higher folllowing data; gold hit new HoD, silver back at HoD. Dec gold is now +0.4% at $1287.50/oz, Sept silver is +0.1% at $20.44/oz (:COMDX) :  

8:31 am Christopher & Banks promotes Peter G. Michielutti to EVP, COO, & CFO (CBK) : Co announced that Peter G. Michielutti has been promoted to Executive Vice President, Chief Operating Officer and Chief Financial Officer.

8:31 am Bacterin International announces pricing of 1,143,000 shares of its common stock at $5.70/share (BONE) : Co announced the pricing of its previously announced underwritten public offering.

  • The company is offering 1,143,000 shares of its common stock at $5.70 per share and warrants to purchase 571,500 shares of its common stock at an exercise price of $7.12 per share to the public.
  • Net proceeds from the offering of approximately $5.8 million are expected to be used for working capital and general corporate purposes including the continued expansion of the company's sales force and increasing inventory levels to support anticipated future growth.
  • The offering is expected to settle and close on August 6, 2014

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

  • TeleCommunication Systems (TSYS) announced that it is teaming with NextNav, LLC to demonstrate the use of Metropolitan Beacon System technology as one solution to complement primary 9-1-1 technology for the purpose of providing indoor location information to public safety answering points in emergency situations.
  • iKang Healthcare Group (KANG) announced that its Board of Directors has named Ms. Qing Liu as an independent director of the Company, effective July 31, 2014.
  • The Cheesecake Factory (CAKE) announced the opening of its newest restaurant at the Meadowood Mall in Reno, Nevada. 

8:19 am Allete misses by $0.04, beats on revs (ALE) : Reports Q2 (Jun) earnings of $0.40 per share, $0.04 worse than the Capital IQ Consensus Estimate of $0.44; revenues rose 10.7% year/year to $260.7 mln vs the $257.1 mln consensus.

8:09 am Gapping down (:SCANX) : In reaction to disappointing earnings/guidance: WWWW -20.7% (also downgraded to Neutral from Buy at Sun Trust Rbsn Humphrey), SREV -12%, MXWL -9.9%, ADNC -9.8%, CTRL -9.6%, GPRO -9.4%, YRCW -9.3% (light volume), BYD -9.1%, ARRS -7.8%, PXLW -7.2%, IMMR -6.6%, MT -6%, ABTL -4.4%, (light volume), MRC -3.8%, (light volume), SPWR -3.3%, AFFX -2.6%, OUTR -2.2%, PCYC -2.2%, OMG -2.1%, (light volume), RBS -1.9%, LYV -1.7%, GFIG -1.5% (light volume), KOG -0.9%, TSLA -0.6%, ASH -0.6%, WY -0.4%, (light volume).

Select financial related names showing weakness: DB -1.6%, UBS -1.3%, HSBC -1%, C -1% (to sell 80% of its $1.5 bln limited partnership interest in Metalmark Capital Partners II to Lexington ), CS -0.9%, BAC -0.7%, ING -0.6%.

Select metals/mining stocks trading lower: MT -5.9%, GOLD -2.5% (downgraded to Neutral from Buy at UBS), RIO -2.4%, BBL -1.4%, BHP -1.1%.

Select solar names lower following SPWR results:  TSL -1.9% JKS -1.1% CSIQ -0.6%.

A few European drug names are trading lower: NVS -3.3%, GSK -1.6%, SHPG -1.1%, AZN -0.7%

Other news: BOTA -21.8% (reports top-line data From its Phase 2 IGLOO trial of Laninamivir Octanoate; neither the 40 mg or 80 mg cohort achieved a statistically significant reduction in the median time to alleviation of influenza symptoms), HIL -10.6% (priced public offering of common stock at $4.25/share after hours; intends to initially keep $10.0 mln of the net proceeds as cash or cash equivalents and to use the balance of the net proceeds from the offering), AIXG -7.3% (pulling back from two day gains), ALU -6.7% (continued weakness following earnings), SSYS -6% (announced that it has expanded European Ops ATHL -3.8% ( prices 12.5 mln share offering by selling shareholders at $46.25 per share ), PT -3.7% (continued weakness), RGSE -3.6% (filed for an offering of ~4.232 mln shares of Class A common stock by selling shareholders), VE -3.4% / SAP -1.9% (still checking), BONE -3.1% (announces public offering of common stock; size not disclosed), YY -2.4% (still checking), MSFT -1.5% (received unfavorable ruling yesterday in Ireland court ruling), RDS.A -1.4% (acknowledged outcome of Woodside Petroleum's shareholders' negative vote on selective buy-back proposal announced June 17 2014; Shell is reviewing its options in relation to its remaining 13.6% holding in Woodside), CDTI -1.3% (promotes David E. Shea to Chief Financial Officer), QIHU -1.3% ( priced private placement of $450 mln principal amount of convertible senior notes due 2020 and $450 mln principal amount of convertible senior notes due 2021), IGT -0.8% (following SGMS / BYI news).

Analyst comments: DDD -3.3% (downgraded to Sector Perform at RBC Capital Mkts; downgraded to Neutral from Overweight at Piper Jaffray, downgraded to Neutral from Buy at Citigroup), EHTH -1.4% (downgraded to Neutral from Buy at BofA/Merrill), BBBY -1.5% (downgraded at Opco).

8:06 am Granite Construction beats by $0.10, misses on revs; guides FY14 revs in-line (GVA) : Reports Q2 (Jun) earnings of $0.34 per share, $0.10 better than the Capital IQ Consensus Estimate of $0.24; revenues rose 6.5% year/year to $585.87 mln vs the $647.94 mln consensus. Co issues in-line guidance for FY14, sees FY14 revs of $2.40-2.80 bln vs. $2.6 bln Capital IQ Consensus Estimate.

  • Gross margin was 14.1% vs 9.0% in the year ago period driven primarily by improved performance in the Large Project Construction and Construction Materials segments.
  • Co says that though Construction segment backlog increased more than 20% YoY to $975 mln, revenue decreased 12.8%. The decrease is attributable to project timing, a change in the mix of power projects from 2013, and weaker-than-anticipated public market activity in the Northwest.

8:05 am Papa John's increases quarterly dividend 12% to $0.14 from $0.125 (PZZA) :  

8:05 am Oplink Commsissues statement regarding announcement of Director nominations by Engaged Capital and Voce Capital Management; says 'Board intends to carefully evaluate Engaged and Voce's nominees' (OPLK) : Co issued the following statement in response to the announcement by Engaged Capital, LLC and Voce Capital Management LLC of their nomination of two candidates to Oplink's Board of Directors to be considered for election at the Company's 2014 Annual Meeting of Shareholders:

  • "Oplink is committed to maintaining a highly experienced and well-qualified board. The Board intends to carefully evaluate Engaged and Voce's nominees as part of the Board's process of nominating candidates for the two director positions up for election at the 2014 Annual Meeting. In addition, we recently announced our intention to expand Oplink's Board of Directors by up to two members in order to add further industry expertise."

8:03 am Circor reports EPS in-line, misses on revs; guides Q3 EPS below consensus, revs below consensus (CIR) : Reports Q2 (Jun) earnings of $0.91 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of $0.91; revenues fell 7.0% year/year to $207.9 mln vs the $228.38 mln consensus.

  • Co issues downside guidance for Q3, sees EPS of $0.87-0.94, excluding non-recurring items, vs. $1.03 Capital IQ Consensus Estimate; sees Q3 revs of $200-215 mln vs. $226.38 mln Capital IQ Consensus Estimate.
  • "Similar to the first quarter, second-quarter quoting activity remained strong in upstream oil and gas, as well as in power generation; however, actual bookings continue to be slow. In our Aerospace & Defense business, bookings were up over the prior year."

8:03 am American Axle misses by $0.04, misses on revs (AXL) : Reports Q2 (Jun) earnings of $0.67 per share, $0.04 worse than the Capital IQ Consensus Estimate of $0.71; revenues rose 18.4% year/year to $946.9 mln vs the $992.32 mln consensus.

  • AAM's gross profit for the first half of 2014 was $270.9 mln as compared to $226.5 million in the first half of 2013.  Gross margin was 15.0% in the first half of 2014 as compared to 14.6% in the first half of 2013.

  • Free cash flow (net cash provided by operating activities less capital expenditures net of proceeds from the sale of property, plant, and equipment) of $82.5 million. Net cash provided by operating activities for the second quarter of 2014 was $137.9 million. Capital spending, net of proceeds from the sale of property, plant and equipment, for the second quarter of 2014 was $55.4 million. 

8:02 am Insperity beats by $0.01, misses on revs (NSP) : Reports Q2 (Jun) earnings of $0.13 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.12; revenues rose 3.2% year/year to $564.6 mln vs the $573.34 mln consensus.

8:02 am WageWorks aquires CONEXIS; co expects CONEXIS to contribute $23.0-$25.0 mln in rev and to be slightly accretive to Adjusted EBITDA and to have a meaningfully positive impact to Adjusted EBITDA in 2015 (WAGE) : The co announced that it has acquired CONEXIS in an all cash transaction.

  • The transaction was financed through both cash on the balance sheet, as well as the drawdown from the company's existing line of credit.
  • For the remainder of 2014, the co currently expects CONEXIS to contribute $23.0 million to $25.0 million in revenue and to be slightly accretive to adjusted EBITDA and to have a meaningfully positive impact to adjusted EBITDA in 2015.
  • In addition, for the remainder of 2014, the co expects the acquisition to be neutral to marginally accretive to GAAP net income per diluted share inclusive of transaction and acquisition amortization costs.

8:02 am API Tech wins new $3.0 million order for secure wireless communication systems (ATNY) : Co announced today the receipt of a $3.0 million order for secure, wireless communication systems from a Fortune 50 company.

  • The electronic systems will be used in support of U.S. Department of Defense C4ISR  initiatives.

8:01 am Ladenburg Thalmann Financial acquires Highland Capital Brokerage for ~ $42 mln (LTS) : Co announced that it has acquired Highland Capital Brokerage, Inc., for approximately $42 million.

  • The purchase price for the common stock of Highland was $12.7 million, consisting of approximately $3.6 million in cash and 2,540,762 shares of Ladenburg common stock. 
  • In addition, Ladenburg repaid Highland's bank facility of $22.3 million and $7 million of Highland's promissory notes remain outstanding. 

8:00 am Telephone & Data misses by $0.10, beats on revs (TDS) : Reports Q2 (Jun) loss of $0.20 per share, $0.10 worse than the Capital IQ Consensus Estimate of ($0.10); revenues rose 0.7% year/year to $1.24 bln vs the $1.2 bln consensus.

7:56 am S&P futures vs fair value: -9.10. Nasdaq futures vs fair value: -19.50. (:WRAPX) : U.S. equity futures trade sharply lower amid cautions action overseas. The S&P 500 futures trade nine points below fair value with some volatility expected around 8:30 ET when the Nonfarm Payrolls report crosses the wires. The Briefing.com consensus expects the report to reveal the addition of 220,000 payrolls in July.

Reviewing overnight developments:

  • Asian markets ended on a lower note. Japan's Nikkei -0.6%, China's Shanghai Composite -0.7%, and Hong Kong's Hang Seng -0.9% 
    • In economic data: 
      • China's Manufacturing PMI rose to 51.7 from 51.0 (expected 51.4), while HSBC Manufacturing PMI ticked down to 51.7 from 52.0 (expected 52.0) 
      • Japan's Manufacturing PMI slipped to 50.5 from 50.8 (expected 50.8) 
      • South Korea's CPI ticked up 0.1% month-over-month (expected 0.2%, previous -0.1%), while the year-over-year reading increased 1.6%, as expected. Separately, HSBC Manufacturing PMI improved to 49.3 from 48.4 and the trade surplus narrowed to $2.52 billion from $5.50 billion (expected surplus of $2.74 billion) 
      • Australia's PPI ticked down 0.1% quarter-over-quarter (expected 0.7%, previous 0.9%), while AIG Manufacturing Index rose to 50.7 from 48.9 
    • In news: 
      • According to press reports, Japan's Prime Minister Shinzo Abe has considered making changes to his cabinet as early as the first week of September
  • Major European indices trade lower across the board. France's CAC -0.9%, Great Britain's FTSE -1.2%, and Germany's DAX -1.7%. Elsewhere, Italy's MIB -0.2% and Spain's IBEX -1.5% 
    • Participants received several data points: 
      • Eurozone Manufacturing PMI ticked down to 51.8 from 51.9 (expected 51.9) 
      • Germany's Manufacturing PMI fell to 52.4 from 52.9 (expected 52.9) 
      • Great Britain's Manufacturing PMI slipped to 55.4 from 57.2 (consensus 57.2) 
      • French Manufacturing PMI inched up to 47.8 from 47.6 (expected 47.6) 
      • Italy's Manufacturing PMI fell to 51.9 from 52.6 (consensus 52.6) 
      • Spain's Manufacturing PMI fell to 53.9 from 54.6 (expected 54.7) 
    • In news: 
      • Spanish and Italian bonds are on the defensive with Spain's 10-yr yield higher by five basis points at 2.56%, while Italy's benchmark yield is higher by eight basis points at 2.66% 
In U.S. corporate news:

  • ArcelorMittal (MT 14.27, -0.94): -6.2% after missing on earnings and revenue 
  • Bally Technologies (BYI 81.00, +20.83): +34.6% after agreeing to be acquired by Scientific Games (SGMS 8.54, 0.00) for $83.80/share, representing a 38.4% premium to yesterday's closing price 
  • Expedia (EXPE 82.00, +2.58): +3.4% after beating earnings and revenue estimates 
  • GoPro (GPRO 43.30, -4.67): -9.7% despite beating estimates and guiding ahead of the Capital IQ consensus 
  • Procter & Gamble (PG 78.75, +1.43): +1.9% following its bottom-line beat on below-consensus revenue 
  • Tesla (TSLA 221.76, -1.54): -0.7% despite beating earnings and revenue expectations 
In addition to the 8:30 ET release of the Nonfarm Payrolls report for July (Briefing.com consensus 220K), Personal Income/Spending (consensus 0.4%) data and Core PCE Prices (expected 0.2%) will also be reported at 8:30 ET, while the final reading of the Michigan Sentiment survey for July (consensus 82.0) will cross the wires at 9:55 ET. Finally, the July ISM Index (consensus 55.9) and June Construction Spending (expected 0.3%) will both be reported at 10:00 ET.

7:55 am Gapping up (:SCANX) : In reaction to strong earnings/guidance: ARNA +26.3%, IMPV +13.7%, AXTI +11.6%, GDOT +8.4%, TNDM +8.1%, SKUL +7%, SWIR +6.6%, LNKD +6.5%, BEAT +5.6%, (light volume), SYNA +5.2%, KCG +5.1%, EXPE +3.8%, IRE +3.7%, MHK +3.2%, AHS +3.1%, DATA +2.3%, WU +1.9%, (light volume), PG +1.8%, MCHP +1.3%, (light volume), CYH +1%, ONNN +0.9%, CTRX +0.9%, AVD +0.7%, (light volume), LNG +0.2%, (light volume), AIV +0.1%, (saw late move higher following early earnings release), .

M&A news: BYI +33.5% (Scientific Games to acquire Bally Technologies in transaction valued at $5.1 billion),IBCA +10.3% (Intervest Bancshares Corp to be acquired by Bank of the Ozarks in an all-stock transaction).

Select oil/gas related names showing strength: STO +0.8%, TOT +0.6%.

Other news: ARRY +8.5% (received orphan drug designation status for binimetinib for the treatment of ovarian cancer),SRPT +2.9% (announces appointment of John Hodgman as interim chairman; also initiated with an Outperform at Oppenheimer),JD +2.5% (trading higher following positive MadMoney mention),FNMA +1.4% (releases June 2014 monthly summary; Book of Business decreased at a compound annualized rate of 1.7% in June),VRTX +0.7% (light volume; receives European approval for KALYDECO (ivacaftor) in eight non-G551D gating mutations; KALYDECO is the first medicine to treat the underlying cause of CF in people with specific non-G551D gating mutations )

Analyst comments: RNA +3.9% (light volume, initiated with an Outperform at Oppenheimer),DV +0.3% (DeVry upgraded to Buy from Hold at Stifel)

7:51 am Independence Realty Trust reports Q2 results in-line (IRT) : Reports Q2 (Jun) earnings of $0.19 per share, in-line with the Capital IQ Consensus Estimate of $0.19; revenues rose 148% year/year to $11.6 mln vs the $11.9 mln consensus.

7:46 am Asian Markets Close: Nikkei -0.6%, Hang Seng -0.9%, Shanghai -0.7% (:SUMRX) :

  • It was a sea of red across Asia as all of the major bourses ended in the red following yesterday's carnage on Wall Street. 
  • Mixed Manufacturing PMI (51.7 actual v. 51.4 expected, 51.0 previous) and HSBC Final Manufacturing PMI (51.7 actual v. 52.0 expected, 52.0 previous) were not enough to keep China's Shanghai Composite (-0.7%) above the breakeven line. Brokerage shares weighed as Citic Securities shed 2.5% and Haitong Securities lost 2.3%. 
  • Neighboring Hong Kong was also pressured as the Hang Seng (-0.9%) slid off three and a half-year highs. Property names were hit as traders booked profits following the recent rally with Cheung Kong off 4.7% to lead to the downside.
  • Across the East China Sea, Japan's Nikkei (-0.6%) fell from six month-highs despite Bank of Japan Governor Haruhiko Kuroda defending the central bank's upbeat economic outlook amid a slowdown in the data. Electronics maker Sony outperformed, up 4.7%, following its better than expected earnings report. 
  • India's Sensex (-1.6%) pressed lower for the fourth time in five days. Utilities were a drag with NTPC and Tata Power lower by 3.0% and 2.8%, respectively. 
  • Australia's ASX (-1.4%) tumbled off its best level in more than six years. All of the 'big four' banks saw losses with Westpac down 1.6%, leading the sector's decline.
  • Regional Decliners: Singapore -0.9%...Taiwan -0.5%...Malaysia -0.4%...Vietnam -0.4%...South Korea -0.2%...Thailand -0.2%
  • Regional Advancers: Philippines +0.4% Closed: Indonesia 
  • Fx: USDCNY ticked up to 6.1795...USDINR surged to 61.17, the highest in over four months...USDJPY +15 pips @ 102.95...AUDUSD -15 pips @ .9280

7:42 am PNM Resources beats by $0.02, misses on revs; guides FY14 EPS in-line (PNM) : Reports Q2 (Jun) earnings of $0.39 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.37; revenues fell 0.4% year/year to $346.1 mln vs the $356 mln consensus. Co issues in-line guidance for FY14, sees EPS of $1.44-1.51 vs. $1.47 Capital IQ Consensus Estimate.

7:41 am Vista Gold reported a Q2 net loss of ($0.04) vs a net loss of ($0.26) in the prior year's quarter; no revenue. (VGZ) :

  • Management is strongly committed to careful cash management and maintaining liquidity.
  • The Co's cash burn rate has been dramatically reduced since 2013 as several cash intensive programs at the Mt Todd gold project such as water treatment and preparation of the preliminary feasibility study have been completed.
  • In addition, several significant cost cutting measures have been introduced including a reduction of management positions, significant reductions in cash compensation for executives, senior management and the Co's Board of Directors, and the delay or elimination of discretionary programs, including exploration activities.
  • Other aggressive cost cutting measures, particularly at the Mt Todd gold project, are being pursued

7:36 am Targa Resources beats by $0.06 (TRGP) : Reports Q2 (Jun) earnings of $0.63 per share, $0.06 better than the Capital IQ Consensus Estimate of $0.57; revenues rose 43% year/year to $2.06 bln vs the $1.88 bln consensus.

7:36 am Heartland Payment Systems misses by $0.03, misses on revs; guides FY14 EPS in-line, revs in-line (HPY) : Reports Q2 (Jun) earnings of $0.58 per share, $0.03 worse than the Capital IQ Consensus Estimate of $0.61; revenues rose 6.5% year/year to $159.4 mln vs the $161.9 mln consensus. Co issues in-line guidance for FY14, sees EPS of $2.33-2.37 vs. $2.36 Capital IQ Consensus Estimate; sees FY14 revs of $645-660 mln vs. $648.35 mln Capital IQ Consensus Estimate.

7:34 am Health Care REIT beats by $0.04, reports revs in-line; raises FY14 FFO in-line (HCN) : Reports Q2 (Jun) funds from operations of $1.06 per share, $0.04 better than the Capital IQ Consensus Estimate of $1.02; revenues rose 21.8% year/year to $826.4 mln vs the $818.9 mln consensus.

  • Co issues in-line guidance for FY14, raises FFO to $4.05-4.15 from $4.03-4.13 vs. $4.07 Capital IQ Consensus Estimate. 
  • "We are adding value to our high-quality portfolio through innovative programs and partnerships to generate consistent and strong same-store NOI growth, which grew 7.7% in our seniors housing operating portfolio and 4.4% in the total portfolio during the second quarter. We also maintain an investment pipeline that delivers consistent quarterly volume from our network of operating partners. The earnings power of our internal and external growth strategy culminated in 14% FFOPS growth and 15% FADPS growth for the quarter. I am proud to lead this special company positioned to continue delivering high-level performance while fulfilling our mission to improve health care delivery in the U.S., Canada and the U.K."

7:34 am Spirit Aerosystems beats by $0.31, beats on revs; raises guidance for FY14 (SPR) : Reports Q2 (Jun) earnings of $1.01 per share, $0.31 better than the Capital IQ Consensus Estimate of $0.70; revenues rose 18.5% year/year to $1.8 bln vs the $1.69 bln consensus. Spirit's backlog at the end of the second quarter of 2014 was approximately $41 billion.  

  • Co raises guidance for FY14, sees EPS of $2.90-3.05 vs. $2.94 Capital IQ Consensus Estimate; sees FY14 revs of $6.7-6.9 bln vs. $6.72 bln Capital IQ Consensus Estimate.

7:32 am Drew Industries misses by $0.07, beats on revs (DW) : Reports Q2 (Jun) earnings of $0.77 per share, $0.07 worse than the Capital IQ Consensus Estimate of $0.84; revenues rose 12.1% year/year to $321.78 mln vs the $318.4 mln consensus.

7:32 am CBOE Holdings reports EPS in-line, revs in-line (CBOE) : Reports Q2 (Jun) earnings of $0.50 per share, in-line with the Capital IQ Consensus Estimate of $0.50; revenues fell 4.6% year/year to $143.9 mln vs the $143.59 mln consensus. 

  • "While second-quarter results reflected lackluster trading volume industry-wide and muted market volatility, CBOE posted solid financial results and continued to deliver long-term value, both to our shareholders and market participants... We were pleased to increase our quarterly dividend as well as our share repurchase authorization and are very encouraged with the response to our extended trading hours for VIX futures, which now trade nearly 24 hours a day, five days a week. Moreover, we continued to advance our strategic growth initiatives so that CBOE is well positioned to benefit in more favorable market conditions." 
  • The company announced that, in light of the subdued trading volumes, it is taking steps to reduce expenses. Based on these actions and year-to-date results, the company is lowering its guidance for core operating expenses for the 2014 fiscal year. The company now expects core expenses to be in the range of $186.0 million to $190.0 million, down from its previous guidance of $191.0 million to $196.0 million. 
  • Capital expenditures are still expected to be in the range of $47.0 million to $50.0 million. 
  • Depreciation and amortization expense is still expected to be in the range of $38.0 million to $40.0 million.  

7:32 am Montage Tech announces shareholder approval for acquisition by Shanghai Pudong Science and Technology Investment (MONT) : Co announced the results of its extraordinary general meeting of shareholders held on July 31, 2014 in Shanghai, China. Shareholders voted to approve the Agreement and Plan of Merger, dated June 11, 2014, under which Shanghai Pudong Science and Technology Investment, a wholly state-owned limited liability company directly under Pudong New Area government of Shanghai, will acquire all of the outstanding ordinary shares of Montage for $22.60 per ordinary share by way of a merger.

7:31 am Soligenix receives additional NIAID funding to advance development of OrbeShield in GI ARS; awarded $2.1 mln in additional funding (SNGX) : Co announced today that the National Institute of Allergy and Infectious Diseases has exercised its option to advance preclinical development of OrbeShield:

  • The 12-month option provides an additional $2.1 million to Soligenix to advance OrbeShield as a medical countermeasure for the treatment of gastrointestinal acute radiation syndrome.
  • Soligenix's GI ARS program is supported by contract awards from both the Biomedical Advanced Research Development Authority and NIAID, totaling up to approximately $32 million

7:31 am FARO Techs announces acquisition of The CAD Zone to expand presence in the law enforcement products and services market; financial terms not disclosed (FARO) : Co announced it has acquired The CAD Zone, Inc., a leading software provider in the law enforcement accident and crime scene reconstruction market. CAD Zone's point cloud software application will be integrated with FARO's laser scanning technology to provide turnkey solutions for crime scene and other forensic applications.

  • "While law enforcement is a relatively small vertical market for FARO today, we believe it represents a significant opportunity for the right 3D documentation solution and our acquisition of CAD Zone takes a major step forward in creating that offering," stated Jay Freeland, FARO's President and CEO.

7:30 am Intelli-Check wins $333K contract to provide ID card readers to Washington State Ferries (IDN) : Co announced it was been awarded a $333K contract to provide 33 IM2610 TWIC Plus portable hand held readers to the Washington State Ferries, operated by the Washington State Department of Transportation.

  • Installation, which began this week, is expected to be completed by late August.

7:30 am On The Wires (:WIRES) :

  • In accordance with Rule 2.10 of the Irish Takeover Panel Act, 1997, Takeover Rules 2013, Chiquita Brands International, Inc. (CQB) confirms that as of July 31, 2014 its issued share capital comprised 46,917,581 common shares, par value $0.01/share.
  • China Ming Yang Wind Power (MY) announced that its MY1.5-89 wind turbine has obtained the GL 2010 Type Certification issued by DNV-GL Group.
  • The Howard Hughes (HHC) announced that Larry H. Miller Megaplex Theatres has signed on as a major entertainment anchor at Cottonwood, a 57-acre mixed-use redevelopment located only eight miles from downtown Salt Lake City. 
  • MedWest Haywood and Duke LifePoint Healthcare have finalized Duke LifePoint's (LPNT) acquisition of the 169-bed medical center and its affiliated assets, and Duke will will invest a minimum of $36 mln in capital improvements.
  • The Texas Health and Human Services Commission has selected Accenture (ACN) to serve as lead Medicaid vendor upon the termination of the current prime contractor on August 1, 2014. The contract has a three-year base period, with two one-year extension options.  

7:28 am Weak PMI Data Weighs on Sterling: 10-yr: -05/32..2.582%..USD/JPY: 102.94..EUR/USD: 1.3392 (:SUMRX) :

  • The Dollar Index has given up its early gains and hovers little changed near 81.45. 
  • Action over the past couple of sessions has struggled to claim the 81.50 level as trade holds at 10-month highs. 
  • EURUSD is +10 pips @ 1.3400 as trade continues its attempt to put in a tradable bottom near the November lows. Today's small bid has developed despite the weak Italian (51.9 actual v. 52.8 expected, 52.6 previous) and Spanish (53.9 actual v. 54.8 expected, 54.6 previous) Manufacturing PMI figures. The bulls have their sights set on reclaiming the key 1.3500 level. 
  • GBPUSD is -50 pips @ 1.6835 as trade presses lower for the twelfth time in thirteen sessions. Manufacturing PMI (55.4 actual v. 57.2 expected, 57.2 previous) was the latest number to miss estimates, causing trade to drop below the 100 dma for the first time in a year. Support near 1.6800 should provide some help at one and a half-month lows. Click here to see a daily GBPUSD chart.
  • USDCHF is -10 pips @ .9075 as action slips off its best levels of 2014. The pair has been limited to a tight 20 pip range as Swiss banks are closed in observation of Independence Day
  • USDJPY is +15 pips @ 102.95 as trade looks for its eleventh gain in twelve sessions. The early bid comes following overnight comments from Bank of Japan Governor Haruhiko Kuroda, which defended the central bank's upbeat assessment of the economy despite the recent slowdown in the data. Any positive close will be the best since the beginning of April. 
  • AUDUSD is -15 pips @ .9280 as sellers remain in control for the sixth time in seven sessions. The early weakness comes following the tame PPI (-0.1% QoQ actual v. 0.7% QoQ expected) print, and has the pair at its lowest levels since the start of June. The .9200 area will be key as support there is guarded by the 200 dma. USDCNY ticked up to 6.1795 following the mixed Manufacturing PMI (51.7 actual v. 51.4 expected, 51.0 previous) and HSBC Final Manufacturing PMI (51.7 actual v. 52.0 expected, 52.0 previous) numbers
  • USDCAD is +35 pips @ 1.0940 as trade climbs for the sixth time in seven days. Buying over the past two weeks has lifted the pair off its lowest levels of 2014 and has action contending with three-month highs.

7:22 am Bally Technologies to be acquired by Scientific Games (SGMS) for $83.30/share in cash; transaction expected to be immediately accretive to Scientific Games' EPS and cash flow (BYI) : Cos announced that the companies have entered into a definitive merger agreement whereby Scientific Games (SGMS) has agreed to acquire all of the outstanding Bally common stock for $83.30 in cash per share, which represents a 38 percent premium to Bally's closing stock price on July 31, 2014. The aggregate transaction value is ~ $5.1 bln, including the refinancing of ~ $1.8 bln of existing Bally net debt. The transaction was unanimously approved by the boards of directors of the two companies.

  • Scientific Games would acquire all of the outstanding shares of Bally for $83.30 per share in cash, for a total transaction value of ~ $5.1 bln, including net debt of ~ $1.8 bln. The acquisition would be financed with debt and cash on hand and Scientific Games has obtained committed debt financing for the transaction, which is not subject to a financing contingency.
  • The acquisition is subject to customary closing conditions, including receipt of Bally shareholder approval and antitrust and gaming regulatory approvals, and is currently expected to be completed in early 2015. Scientific Games and Bally are both licensed in more than 300 gaming jurisdictions worldwide, which is expected to help facilitate obtaining the required gaming regulatory approvals.
  • Scientific Games expects to achieve the anticipated $220 mln of cost synergies and $25 mln of capital expenditure savings by consolidating operations and generating efficiencies in the areas of manufacturing, engineering, field and customer service and administrative operations. Scientific Games anticipates incurring $75 mln of costs to achieve the cost synergies and $40 mln in capital costs to complete the integration of the companies.
Related Stocks: IGT, MGAM, MGM, WYNN, BYD, CZR, CACQ

7:17 am Ruth's Hospitality Group reports EPS in-line, misses on revs (RUTH) : Reports Q2 (Jun) earnings of $0.20 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of $0.20; revenues rose 2.4% year/year to $102.9 mln vs the $104.78 mln consensus. 

  • Company-owned comparable restaurant sales for Ruth's Chris Steak House increased 2.8%. 
  • Company-owned comparable restaurant sales for Mitchell's Fish Market declined 0.7%. 
  • "We remain pleased with the overall strength of our business, and in particular, the ongoing sales momentum of the Ruth's Chris Steak House brand. Led by continued traffic gains, comparable sales at Ruth's grew for the 17th consecutive quarter, which helped to offset considerable beef cost headwinds." O'Donnell continued, "Looking ahead to the second half of the year, we are well-positioned to maintain our sales momentum. Our development pipeline continues to strengthen and will include the opening of three new Company-owned Ruth's Chris Steak Houses this year, one of which has already opened, and three franchisee-owned restaurants. Longer-term, we will continue to maintain a balanced shareholder return plan that includes reinvesting in our existing business, investing in high return new restaurant development and long-term capital decisions that include a mix of dividends, debt reduction, and share repurchases." 
  • FY14 Guidance: Based on current information, Ruth's Hospitality Group, Inc. is reiterating its previously announced full year 2014 outlook: Cost of goods sold of 31.0% to 33.0% of restaurant sales, Restaurant operating expenses of 49.0% to 51.0% of restaurant sales,

7:16 am Shanghai...-0.7% :  

7:16 am S&P futures vs fair value: -11.00. Nasdaq futures vs fair value: -26.50. :

7:16 am European Markets : FTSE...6631.26...-98.90...-1.50%.  DAX...9219.30...-188.20...-2.00%.

7:16 am Asian Markets : Nikkei...15523.11...-97.70...-0.60%.  Hang Seng...24532.43...-224.40...-0.90%.

7:14 am Targa Resources Partners beats by $0.21, misses on revs; announces management changes (NGLS) : Reports Q2 (Jun) earnings of $0.64 per share, $0.21 better than the Capital IQ Consensus Estimate of $0.43; revenues rose 43.0% year/year to $2.06 bln vs the $2.16 bln consensus. 

Management Changes
Co announced today that Rene R. Joyce has elected to retire as Executive Chairman of TRC and of the general partner of the Partnership, effective December 31, 2014. He will continue to serve as a director of both companies. Roy E. Johnson, also a founding executive and a key to the Targa vision and success story, has elected to retire effective December 31, 2014 as well.

TRC and the Partnership also announced today that James W. Whalen will assume the role of Executive Chairman of TRC and of the general partner of the Partnership, effective January 1, 2015. Mr. Whalen, who will remain on the management team, has served as a director of TRC and its predecessor companies since 2004 and as a director of the general partner of the Partnership since 2007. 

7:12 am WisdomTree beats by $0.08, reports revs in-line (WETF) : Reports Q2 (Jun) earnings of $0.15 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus Estimate of $0.07; revenues rose 18.2% year/year to $44.1 mln vs the $44.1 mln consensus. 

  • "Gross margin for our US listed ETFs, which is our total revenues less fund management and administration expenses and third party sharing arrangements, was 82.4% in the second quarter of 2014 as compared to 74.5% in the second quarter of 2013 and 78.6% in the first quarter of 2014."
  • "We recorded top line revenue growth of 18% with a 77% increase in pre-tax income in our US business despite the challenging flows this quarter. We are clearly demonstrating the efficiency, power and potential of our business model. Since the first quarter, we showed a nearly 5% improvement in our gross margin to 82.4% for our US business. Including our new European entity, we reported a record 45.6% pretax margin on a base of $34 billion in average AUM. Our business and our balance sheet have never been stronger. With $141 million in cash and investments, WisdomTree is in a position of strength to invest for future growth."

7:12 am Enbridge beats by $0.01; reaffirms FY14 EPS guidance (ENB) : Reports Q2 (Jun) earnings of CC$0.40 per share, C$0.01 better than the Capital IQ Consensus Estimate of C$0.39.

  • Co reaffirms guidance for FY14, sees EPS of C$1.84-2.04 vs. C$1.96 Capital IQ Consensus Estimate. 
  • The results were in line with management's expectation, matching the prior year's exceptionally strong first half. The Company remains on track to achieve its 2014 full year adjusted earnings per share guidance range.

7:11 am Burger King beats by $0.02, reports revs in-line; increases dividend (BKW) : Reports Q2 (Jun) earnings of $0.25 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.23; revenues fell 6.1% year/year to $261.2 mln vs the $260.53 mln consensus.  On July 31, 2014, the Company's Board of Directors approved an increase in the quarterly dividend to $0.08 per share for the third quarter.

7:10 am Citigroup to sell 80% of its $1.5 bln limited partnership interest in Metalmark Capital Partners II to Lexington (C) : Co and Lexington Partners announced that they have entered into a definitive agreement whereby Citi will sell 80% of its $1.5 billion limited partnership interest in Metalmark Capital Partners II to Lexington. As part of the previously announced revision of the business relationship between Citi and Metalmark in Dec 2013, Citi will offer 20% of its limited partnership interest to existing MCP II limited partners. Terms of the transaction, which is expected to close in the fourth quarter of 2014, are not being disclosed.

7:09 am Procter & Gamble beats by $0.04, misses on revs; guides FY14 EPS in-line (PG) : Reports Q4 (Jun) core earnings of $0.95 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.91; revenues fell 0.7% year/year to $20.16 bln vs the $20.48 bln consensus.

  • Co issues in-line guidance for FY14, sees EPS of mid single digits (cons +3.9%) vs. $4.21 Capital IQ Consensus Estimate. 
  • "We met our objectives in a very difficult operating environment, delivered strong constant currency earnings growth, and built on our strong track record of cash returns to shareholders. Still, we have more work to do to deliver the profitable sales growth and strong cash productivity we are capable of delivering. We will discuss our going-forward strategy and plans to further strengthen our results during our earnings call this morning."
  • Guidance Details: P&G expects organic sales growth in the low-to-mid single digit range in fiscal year 2015. Net sales growth is expected to be in the low single digit range, including a negative one point impact from foreign exchange.

7:09 am Moneygram beats by $0.08, reports revs in-line (MGI) : Reports Q2 (Jun) earnings of $0.40 per share, $0.08 better than the Capital IQ Consensus Estimate of $0.32; revenues rose 2.0% year/year to $368.8 mln vs the $370.41 mln consensus. 

  • The Company continues to estimate full-year constant currency revenue growth to be in the range of 1 to 3 percent and estimates full-year constant currency Adjusted EBITDA growth to be in the range of 0 to 2 percent. 
  • "MoneyGram faced significant headwinds in the quarter particularly in our U.S.-to-U.S. business. While our growth is not at our historically high levels, we did continue to see particularly strong performance in our U.S. outbound business, self-service channels and emerging markets. We also continued to strengthen our core money transfer business through key agent signings. With the renewal of CVS and Canada Post, we have now secured seven of our top ten send agents until the second quarter of 2017, with several through 2020," said Pamela H. Patsley, MoneyGram's chairman and CEO. "We were also pleased to resolve additional legacy matters in the quarter, recognizing a significant cash gain. These settlements, along with our consistent cash flow, will be strategically reinvested in the business, including through a newly-reaffirmed share repurchase authorization. We are committed to building long-term shareholder value."

7:03 am Cambrex beats by $0.35, beats on revs; guides FY14 EPS above consensus (CBM) : Reports Q2 (Jun) earnings of $0.63 per share, excluding non-recurring items, $0.35 better than the Capital IQ Consensus Estimate of $0.28; revenues rose 59.2% year/year to $98 mln vs the $87.57 mln consensus. 

  • Co issues upside guidance for FY14, sees EPS of $1.07-1.15 vs. $1.01 Capital IQ Consensus Estimate.
  • Co raises sales growth expectation to 13-16% from 8-12%. 
  • Co raises EBITDA guidance to $74-78 mln from $70-76 mln. 

7:02 am Celladon secures $25 mln credit facility from Hercules Growth Capital (HTGC) (CLDN) :

  • Co announced that it has entered into a credit facility with Hercules Technology Growth Capital (HTGC) and its affiliate lenders. The credit facility provides for up to $25 million of loans. 
  • Co drew a first tranche of $10 million at the closing of the new credit facility. A second tranche of up to $15 million can be drawn, at Celladon's option, prior to May 31, 2015. This option may be exercised if data from the ongoing Phase 2b trial of MYDICAR supports the continued development of MYDICAR for its Breakthrough Therapy indication to either a Phase III study or registration for approval, as reasonably determined by Celladon's senior management and board of directors. Co expects to report results from the Phase 2b trial in April 2015. 
  • Co plans to use the proceeds from the credit facility to provide additional funding for the development of MYDICAR, for other development programs in its pipeline, and for general corporate purposes.

7:02 am Hutchinson Tech. beats by $0.02, reports revs in-line (HTCH) : Reports Q3 (Jun) loss of $0.32 per share, $0.02 better than the Capital IQ Consensus Estimate of ($0.34); revenues fell 2.4% year/year to $59.8 mln vs the $60.32 mln consensus. 

  • Gross profit in the fiscal 2014 third quarter was $3.6 million, or 6% of net sales, compared with $5.9 million, or 10% of net sales, in the preceding quarter. 
  • The company expects its suspension assembly shipments in the fiscal 2014 fourth quarter to be 110 million to 115 million as customers' production plans for hard disk drives increase and the company's participation on customers' programs improves. Fourth quarter average selling price is expected to be relatively flat sequentially with DSA suspension assemblies accounting for 25% to 30% of fourth quarter shipments. 
  • The company expects fourth quarter gross profit to increase on a sequential basis as higher shipments and the benefits of cost reductions are partially offset by a reduction in finished goods inventories.

7:02 am ISIS Pharm initiates Phase 3 study of ISIS-SMN Rx in infants with spinal muscular atrophy; dosage of first infant will trigger $18 mln milestone payment (ISIS) : Co announced the initiation of a pivotal Phase 3 study evaluating ISIS-SMNRx in infants with spinal muscular atrophy, the most common genetic cause of infant mortality.

  • Isis plans to dose the first infant in this study within the next few weeks, at which time Isis will earn an $18 million milestone payment from its development partner, Biogen Idec. (BIIB)
  • The Phase 3 study, ENDEAR, is the first of several planned studies in a broad and comprehensive late-stage clinical development program for ISIS-SMNRx. 
  • Isis plans to initiate a second pivotal study in children with SMA later this year.

7:01 am Biota Pharma reports top-line data From its Phase 2 IGLOO trial of Laninamivir Octanoate; neither the 40 mg or 80 mg cohort achieved a statistically significant reduction in the median time to alleviation of influenza symptoms; Stock is halted (BOTA) : Co announced top-line data from a randomized, double-blind, placebo-controlled, parallel-arm Phase 2 clinical trial comparing the safety and efficacy of a 40 mg and 80 mg dose of laninamivir octanoate to placebo:

  • Of the 639 patients enrolled, 248, or 39%, had PCR confirmed influenza A or B virus and were included in the intent-to-treat efficacy analyses. 
  • Approximately 75% and 19% of the influenza-confirmed patients were infected with influenza A H1N1 2009 and H3N2, respectively, with 6% being infected with influenza B.
  • As compared to placebo, neither the 40 mg or 80 mg cohort achieved a statistically significant reduction in the median time to alleviation of influenza symptoms as measured by the Flu-iiQ patient-recorded outcome questionnaire (p=0.248 and p=0.776, respectively), which was the primary endpoint of the study.
  • Patients in both the 40 mg (p
    • In addition, a statistically significant proportion of patients in both the 40 mg (p=0.002) and 80 mg (p=0.020) cohorts were culture negative on Day 3 of the study as compared to placebo.
  • The co plans to provide a detailed update on the full efficacy and safety results of the Phase 2 IGLOO trial, the status of the LANI program and its corporate strategy during its fourth quarter and fiscal year-end earnings call in early September.

6:53 am Pepco Hldgs beats by $0.02, misses on revs; reaffirms FY14 EPS guidance (POM) : Reports Q2 (Jun) earnings of $0.28 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.26; revenues rose 6.1% year/year to $1.12 bln vs the $1.51 bln consensus.

  • Co reaffirms guidance for FY14, sees EPS of $1.12-1.27 vs. $1.22 Capital IQ Consensus Estimate. 
  • Power Delivery electric sales were 11,175 gigawatt hours in the second quarter of 2014, compared to 11,172 GWh for the same period in 2013. In the electric service territory, cooling degree days decreased by 5 percent for the three months ended June 30, 2014, compared to the same period in 2013. Weather-adjusted electric sales were 11,136 GWh in the second quarter of 2014, compared to 11,041 GWh for the same period in the prior year.

6:48 am Perion Network announced new 3 year agreement with MSFT's Bing (PERI) : Co announced that it has signed a 3 year agreement with Microsoft's (MSFT) Bing, extending its existing partnership, starting January 1, 2015 through December 31, 2017. Upon mutual agreement, the agreement may be renewed for 2018 as well. The agreement includes desktop and tablet distribution with limited exclusivity in the United States as well as mobile distribution.

6:45 am On The Wires (:WIRES) :

  • Citi's (C) Issuer Services business, acting through Citibank N.A., has been appointed by Reed Elsevier PLC (RUK) and Reed Elsevier NV (ENL) as successor depositary bank for their NYSE listed American Depositary Receipt programmes.
  • IEC Electronics (IEC) announced that its Board of Directors has adopted a Tax Benefit Preservation Plan in an effort to preserve the value of its net operating loss carry forwards under Section 382 of the Internal Revenue Code.
  • MakerBot, a subsidiary of Stratasys (SSYS) announced the expansion of its international operations with the launch of MakerBot Europe.

6:43 am Royal Dutch Shell acknowledged outcome of Woodside Petroleum's (WOPEY) shareholders' negative vote on selective buy-back proposal announced June 17 2014; Shell is reviewing its options in relation to its remaining 13.6% holding in Woodside (RDS.A) :  

6:43 am NIDEC announces the status of own share repurchase (NJ) : Co announced the status of the it's own share repurchase under its ongoing repurchase plan resolved at a meeting of the Board of Directors held on March 8, 2014, pursuant to Article 459, Paragraph 1, Item 1 of the Company Law of Japan.

Details of Share Repurchase:

  • Period of own share repurchase: From July 1, 2014 through July 31, 2014
  • Class of shares: Common stock 
  • Number of own shares repurchased: 0 
  • Total repurchase amount: 0 yen

6:40 am CGG: contribution of CGG's North America Land contract business to Geokinetics (GEOKQ) (CGG) : Co announced that it has signed a binding agreement with Geokinetics (GEOKQ), one of the largest independent international land and shallow water seismic companies, for the contribution by CGG of its North American Land Contract assets and activities (excluding its land multi-client and monitoring businesses) against a minority equity stake in Geokinetics.

  • This combination is expected to secure Geokinetics' position as a market leader in the North America Contract business.
  • This transaction is expected to be finalized by end of October 2014.

6:39 am Qihoo 360 Tech. priced private placement of $450 mln principal amount of convertible senior notes due 2020 and $450 mln principal amount of convertible senior notes due 2021 (QIHU) : The notes will be convertible into Qihoo 360's ADSs, every two ADSs representing as of the date above three Class A ordinary shares of Qihoo 360, based on an initial conversion rate of 7.9789 ADSs per $1,000 principal amount of the 2020 notes (equivalent to an initial conversion price of ~ $125.33 per ADS) and an initial conversion rate of 8.2799 ADSs per $1,000 principal amount of the 2021 notes (equivalent to an initial conversion price of ~ $120.77 per ADS). The initial conversion rates for the 2020 notes and 2021 notes represent conversion premiums of ~ 37.5% and 32.5%, respectively, over the NYSE last reported sale price of the ADSs on July 31, 2014, which was $91.15 per ADS.

6:38 am Hill International priced public offering of common stock at $4.25/share after hours; intends to initially keep $10.0 mln of the net proceeds as cash or cash equivalents and to use the balance of the net proceeds from the offering (HIL) : Co announced the pricing of an underwritten public offering of 8.5 mln shares of its common stock, offered at a price to the public of $4.25 per share. The company has granted the underwriters a 30-day option to purchase up to an aggregate of 1.275 mln additional shares of common stock to cover overallotments, if any. All of the shares in the offering are to be sold by the company. The offering is expected to close on or about August 6, 2014, subject to customary closing conditions.

  • KeyBanc Capital Markets Inc. is acting as sole book-running manager in connection with the offering.
  • The company intends to initially keep $10.0 mln of the net proceeds as cash or cash equivalents and to use the balance of the net proceeds from the offering to meet certain of its obligations and repay a portion of its outstanding indebtedness under its existing credit facilities.

6:36 am Exelis beats by $0.01, reports revs in-line; guides FY14 EPS in-line, revs in-line (XLS) : Reports Q2 (Jun) earnings of $0.34 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.33; revenues fell 10.7% year/year to $1.12 bln vs the $1.12 bln consensus.

  • Co issues in-line guidance for FY14, sees EPS of $1.44-1.50 vs. $1.48 Capital IQ Consensus Estimate; sees FY14 revs of $4.5 bln vs. $4.54 bln Capital IQ Consensus Estimate.
  • The company secured $1.2 billion in funded orders during the second quarter of 2014, including significant new business in several of its strategic growth platforms, along with orders from a variety of international customers. 

6:36 am LDK Solar secures funding commitments for its offshore restructuring (LDKSY) : Co and its Joint Provisional Liquidators ("JPLs"), Tammy Fu and Eleanor Fisher, both of Zolfo Cooper (Cayman), today announced that LDK Solar has secured funding commitments to enable the offshore restructuring to continue to be progressed. The JPLs now intend to seek sanction of the Grand Court of the Cayman Islands to the terms of the funding commitments and certain amendments to restructuring support agreements previously approved by the Cayman Court. The JPLs also provided an update on the progress of the restructuring in light of recent positive developments in the course of the Company's offshore restructuring.

  • On June 27, 2014, the JPLs confirmed that they continued to consider and progress discussions with a number of parties in respect of the provision of funding required to meet the agreed commitments pursuant to the restructuring support agreement relating to the 10% Senior Notes due 2014, the restructuring support agreement relating to the convertible preferred shares of an affiliate of the Company and involving claims against the Company, as well as the costs of the offshore restructuring process and the forecast offshore working capital requirements of the Company.
  • On July 15, 2014, the JPLs received a binding commitment from Heng Rui Xin Energy for $10 million in cash and $14 million for working capital financing in connection with the Company's offshore restructuring. In addition, the Company and the JPLs have identified a further $5 million of funding which is to be committed by certain subsidiaries of the Company to the offshore restructuring. Subject to approval by the Cayman Court, the JPLs now consider that these funding commitments will be sufficient to meet the Exit Financing requirements of the offshore restructuring. 
  • Since their announcement on June 27, 2014 and in addition to the Exit Financing, the JPLs have also received an additional $3.2 million of interim financing for the provisional liquidation from the partial repayment of outstanding intercompany receivables.
  • As a result of the challenges in raising the Exit Financing and the resultant delay in the timetable for completing the restructuring, LDK Solar and the JPLs have reached agreements with the Ad-Hoc Committee for the Company's 10% Senior Notes due 2014, over 79% of the holders of the convertible preferred shares of an affiliate of the Company involving claims against the Company and a majority of shareholders of the Company to certain amendments to the Senior Notes RSA and the Preferred Obligations RSA.

6:35 am Genworth Financial provides additional disclosure on long term care insurance (GNW) : Co announced on July 29, 2014 that it is conducting a comprehensive review of its long term care insurance claim reserves. Many of the co's investors have asked for additional information about the last in-depth review of the claims reserve, which was conducted in 2012. The co cannot predict how the results of the current review will compare with the results of its review in 2012.

  • As a result of the 2012 claims review, the co established refinements to its claim reserves to reflect how a claim transitions by diagnosis and care facility, trends in benefit utilization, and refinements to claim terminations. The impact to GAAP claim reserves as a result of the new methodology was an increase to reserves of ~ $166 mln as of September 30, 2012.
  • Separately, the co also made changes to claim reserves to appropriately reflect waiver of premium benefit, shared policies where both lives are on claim, reinsurance on incurred but not reported claims, and the valuation interest rate. 
  • The impact to GAAP claim reserves as a result of these changes was a decrease to reserves of ~ $165 mln as of September 30, 2012. 
  • The net impact to GAAP claim reserves as a result of the 2012 claims review was a net increase to reserves of ~ $1 mln as of September 30, 2012.

6:33 am Immunogen reports FY14 EPS in-line, revs above consensus; guides FY15 revs above consensus (IMGN) : Co reports FY14 loss of $0.83 vs. ($0.83) Capital IQ Consensus Estimate; FY14 revs of $59.90 mln vs. $63.07 mln Capital IQ Consensus Estimate.

  • Co issues upside guidance for FY15, sees FY15 revs of $100-105 mln vs. $70.16 mln Capital IQ Consensus Estimate.
    • Sees operating expenses to be between $160 million and $165 million; its net loss to be between $60 million and $65 million; its cash used in operations to be between $55 million and $60 million; and its capital expenditures to be between $7 million and $9 million.
    • Cash and marketable securities at June 30, 2015 are anticipated to be between $75 million and $85 million.

6:32 am Alexion Pharma: European Commission grants Orphan Drug designation to Soliris (eculizumab) for the treatment of patients with Myasthenia Gravis (MG) (ALXN) : announced that the European Commission has granted orphan drug designation to Soliris (eculizumab) for the treatment of patients with Myasthenia Gravis, a rare, debilitating neurologic disorder caused by uncontrolled complement activation. In patients with MG, uncontrolled complement activation due to antibodies directed at the neuromuscular junction can ultimately lead to profound and debilitating weakness of various muscle groups throughout the body.

6:32 am Illumina provides additional information about UKs fight against cancer and DNA testing (ILMN) : The Prime Minister is unveiling a new partnership between Genomics England and the company Illumina that will deliver infrastructure and expertise to turn the plan into reality. As part of this, Illumina's services for whole genome sequencing have been secured in a deal worth around 78 mln.

  • The Prime Minister has pledged that the UK will map 100,000 human genomes by 2017.
  • In turn, Illumina will invest around 162 mln into the work in England over four years, creating new knowledge and jobs in the field of genome sequencing. The investment will not only help the life science industry to thrive, but potentially create opportunities for talented UK scientists to lead the world. It will also pave the way for all NHS patients to eventually benefit from this exciting new technology.
Briefing.com note: the company disclosed on July 9 that it was entering into the UK Gov't deal to map 100K genomes.

6:31 am William Lyon Homes priced a private offering of $300 mln in aggregate principal amount of 7.00% senior notes due 2022 through its subsidiary, WLH PNW Finance (WLH) :  

6:30 am American DG Energy priced public offering of 2.65 mln shares of common stock at $1.51 and warrants to purchase up to the same number of shares of common stock at a per warrant price of $.0001 (ADGE) :  

6:29 am VTTI Energy Partners (NYSE: VTTI) priced 17.5 mln unit IPO at $21.00 per unit, at high end of the $19-21 expected range (:IPOXX) :  

6:28 am Standard Pacific Correction: SPF beat EPS and revenue consensus -- prior comment has been edited (SPF) : Reports Q2 (Jun) earnings of $0.14 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.13; revenues rose 35.1% year/year to $592.5 mln vs the $555.1 mln consensus. (Our prior comment contained inaccurate consensus estimates.)

6:24 am Oil States reported Q2 EPS of $0.88 vs $0.85 Capital IQ Consensus Estimate; revs $459.6 mln vs $490.10 mln Capital IQ Consensus Estimate (OIS) :  

6:23 am Mobileye N.V. (NYSE: MBLY) priced 35,589,000 share IPO (27,264,000 by selling shareholders) at $25.00 per share, above the $21-23 expected range (:IPOXX) : The co originally planned to offer 27.75 mln shares but revised the IPO to 35.59 mln.

6:21 am Tesco beats by $0.01, reports revs in-line (TESO) : Reports Q2 (Jun) earnings of $0.29 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.28; revenues rose 12.5% year/year to $145.1 mln vs the $143.9 mln consensus.

  • "We continue to see positive trends for top drive sales and bookings in 2014, and we believe expected new top drive shipments in 2014 could approach 2012 levels, primarily from stronger demand from North American and Asian customers. This is supported by a current backlog of 55 units valued at $65 million. Top drive rental utilization and revenue also improved sequentially as activity levels in Mexico increased."

6:20 am Catamaran beats by $0.03, beats on revs; raises bottom end of EPS and revenue guidance for FY14 (CTRX) : Reports Q2 (Jun) earnings of $0.54 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.51; revenues rose 57.6% year/year to $5.39 bln vs the $5.01 bln consensus.

  • Co issues raised guidance for FY14, raises bottom end of EPS to $2.12-2.22 from $2.10-2.22 vs. $2.19 Capital IQ Consensus Estimate; raises bottom end of FY14 revs to $20.5-21.0 bln from $20-21 bln vs. $20.73 bln Capital IQ Consensus Estimate. 
  • Q2 2014 EBITDA increased $30.4 million, or 19%, to $188.5 million, compared to $158.1 million in Q2 2013. YTD 2014 EBITDA increased $57.8 million, or 19%, to $359.4 million, compared to $301.6 million in YTD 2013. 
  • "The second quarter results reflect our continued success in offering a flexible and scalable alternative within the PBM industry. The Catamaran team continues to execute on multiple strategic efforts, including developing the very best service offering to our clients, integrating the Cigna partnership and Restat acquisition as well as pursuing new opportunities for growth. We continue to build upon our foundation for continued record financial results," FY14: Co EBITDA of $770 to $800 million.

6:17 am Church & Dwight beats by $0.03, reports revs in-line; guides Q3 EPS below consensus; reaffirms 2014 sales/EPS guidance (CHD) : Reports Q2 (Jun) earnings of $0.65 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.62; revenues rose 2.6% year/year to $808.3 mln vs the $805.85 mln consensus.

  • Co sees Q3 EPS of $0.80-0.82 vs. $0.88 Capital IQ Consensus Estimate; sees gross margin contracting by 150 bps behind higher trade spending, coupon redemptions on our new products and more competitive pricing in the laundry category, as well as negative business mix.
  • 2014 outlook:  
    • Reaffirms 2014 EPS range of 7 to 9% growth, despite unprecedented price competition in the laundry category. 
    • Continues to expect organic sales growth to be approximately 3%. 
    • Gross margin is expected to be approximately 75 bps lower than last year (the high-end of previous 50 to 75 bps outlook) due to higher trade promotions to address the price competition and to support the launch of our new products. They continue to expect operating margin expansion from rigorous control of SG&A. 
    • They expect the second half of the year to drive the majority of earnings growth, as the first half included a significant increase in slotting, couponing, trade promotions, and incremental marketing support for our new product launches. 

6:14 am Gentherm beats by $0.10, beats on revs; raises FY14 revs above consensus (THRM) : Reports Q2 (Jun) earnings of $0.46 per share, $0.10 better than the Capital IQ Consensus Estimate of $0.36; revenues rose 28.5% year/year to $206.2 mln vs the $190.51 mln consensus.

  • Co issues raised guidance for FY14, sees FY14 revs of at least 20% or ~$786.40 mln from prior of +10-15% vs. $784.93 mln Capital IQ Consensus Estimate. 
  • "The excellent results in this year's second quarter followed a very strong first quarter and capped off an exceptional first six months of 2014. We achieved record levels of revenue and profit in both periods and every one of our operations met or exceeded its goals. Revenues for this year's second quarter were again driven by a significant year-over-year increase in sales of our Climate Control systems. Operational efficiencies continued to increase in the first half of this year, and our gross margins improved significantly year over year and were again at the high end of our expected range."

6:12 am Arena Pharm beats by $0.14, beats on revs (ARNA) : Reports Q2 (Jun) earnings of $0.03 per share, $0.14 better than the Capital IQ Consensus Estimate of ($0.11); revenues fell 81.4% year/year to $12.8 mln vs the $9.17 mln consensus, of which $3.1 million represented 31.5% of Eisai's net product sales and $0.4 million related to redemptions of the 15-day free trial voucher. Eisai recorded net product sales for BELVIQ of $9.9 million in the second quarter of 2014. At June 30, 2014, cash, cash equivalents and short-term investments available-for-sale totaled $219.1 million.

  • IMS Health estimates that approximately 110,000 prescriptions for BELVIQ were filled in the second quarter of 2014, representing growth of approximately 43% in total prescriptions as compared to the previous quarter.

6:10 am Weyerhaeuser beats by $0.05, misses on revs (WY) : Reports Q2 (Jun) earnings of $0.40 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.35; revenues rose 4.8% year/year to $1.96 bln vs the $2.27 bln consensus.

  • TIMBERLANDS 3Q 2014 Outlook - Weyerhaeuser anticipates significantly lower earnings from the Timberlands segment in the third quarter, primarily due to seasonality and lower earnings from disposition of non-strategic timberlands. In the West, the company expects seasonally lower sales volumes and prices for domestic and export logs. In the South, the company anticipates higher silviculture and road costs, largely offset by increased fee harvest volumes.
  • WOOD PRODUCTS 3Q 2014 Outlook - Weyerhaeuser expects comparable earnings from the Wood Products segment in the third quarter. The company anticipates slightly lower average realizations for lumber and oriented strand board, offset by lower Western log costs and improved price realizations for engineered wood products. 
  • CELLULOSE FIBERS 3Q 2014 Outlook - Third quarter results will include a net gain of approximately $1 billion on the divestiture of WRECO.

6:07 am Genesee & Wyoming beats by $0.01, reports revs in-line (GWR) : Reports Q2 (Jun) earnings of $1.12 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $1.11; revenues rose 3.5% year/year to $414.6 mln vs the $410.92 mln consensus. 

  • "Our second quarter financial results were consistent with our expectations as adjusted earnings per share increased 11% to $1.12. Our total revenue increased 3.5% and we maintained an operating ratio of 73.4% despite severe track washouts in Canada and the Southeast United States. In North America, rail network congestion decreased and the economy remained relatively strong over the course of the second quarter, which resulted in a 7.1% growth in same railroad carloads. In Australia, our second quarter carload traffic was down 9%; however, effective management of our costs resulted in an operating ratio of 69.2%"

6:07 am ArcelorMittal misses by $0.17, misses on revs (MT) : Reports Q2 (Jun) earnings of $0.03 per share, $0.17 worse than the Capital IQ Consensus Estimate of $0.20; revenues fell 47.0% year/year to $10.7 bln vs the $20.42 bln consensus.

  • "The second quarter and first half results reflect the anticipated improvement in steel shipments and margins, supporting an underlying EBITDA improvement compared with last year. The expansion of our iron ore business is also on track, although increased iron ore shipments were offset by the lower than anticipated iron ore price, which has led us to revise our EBITDA guidance for the full year."
  • "Looking ahead, indicators in both Europe and the US, which together account for two thirds of our shipments, continue to be positive and we have increased our steel demand forecasts for both markets. ArcelorMittal continues to focus on delivering on its strategy of reducing costs, investing in our franchise businesses and reducing net debt."

6:04 am Hilton Hotels beats by $0.02, beats on revs; guides Q3 EPS in-line; raises FY14 EPS above consensus (HLT) : Reports Q2 (Jun) earnings of $0.21 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.19; revenues rose 12.1% year/year to $2.67 bln vs the $2.57 bln consensus.

  • Co issues in-line guidance for Q3, sees EPS of $0.15-0.17, excluding non-recurring items, vs. $0.17 Capital IQ Consensus Estimate. 
  • Co issues raised guidance for FY14, sees EPS of $0.67-0.70 from $0.64-0.67, excluding non-recurring items, vs. $0.66 Capital IQ Consensus Estimate. 
  • Adjusted EBITDA for the second quarter increased more than 10 percent from the same period in 2013 to $651 million and Adjusted EBITDA margin increased 110 basis points.
  • System-wide comparable RevPAR increased 6.7 percent for the second quarter on a currency neutral basis from the same period in 2013 U.S. comparable RevPAR increased 7.3 percent for the second quarter from the same period in 2013. 
  • FY14 Guidance Details: System-wide RevPAR is expected to increase between 5.5 percent and 7.0 percent on a comparable and currency neutral basis, with ownership segment RevPAR expected to increase between 4.5 percent and 6.5 percent on a comparable and currency neutral basis as compared to 2013. Adjusted EBITDA is projected to be between $2,425 million and $2,475 million. Q3 Guidance: System-wide RevPAR is expected to increase between 5.5 percent and 7.0 percent on a comparable and currency neutral basis compared to the third quarter of 2013. Adjusted EBITDA is expected to be between $610 million and $630 million.

6:02 am Loxo Oncology (Nasdaq: LOXO) prices upsized 5,261,538 share IPO (from 4.38 mln) at $13.00 per share, at mid-point of the $12-14 expected range (:IPOXX) :  

5:58 am Global Power Equipment misses by $0.06, misses on revs; reaffirms FY14 revs guidance (reported last night) (GLPW) : Reports Q2 (Jun) earnings of $0.06 per share, $0.06 worse than the Capital IQ Consensus Estimate of $0.12; revenues fell 1.1% year/year to $114.7 mln vs the $128.35 mln consensus.

  • Co reaffirms guidance for FY14, sees FY14 revs of $525-550 mln vs. $533.32 mln Capital IQ Consensus Estimate. 
  • Orders for Product Solutions were $35.6 million, or $23.6 million lower than sales for the quarter. Backlog for Product Solutions at quarter end was $165.0 million, up 13.5% from the prior-year period, and down from the trailing quarter due to the strong shipments in the quarter. Approximately 75% of Product Solutions' backlog is expected to ship in 2014.Adjusted EBITDA from continuing operations was $5.2 million in the second quarter compared with $4.5 million in the prior-year quarter. 
  • FY14 Guidance Details: Product Solutions - expected to improve on stronger power generation and oil and gas markets, and full year of acquisition revenue. Energy Services - expected to improve primarily due to a full year of acquisition revenue. Nuclear Services - expected to be down modestly, primarily due to fewer outages. Gross margin is expected to improve moderately as a percent of revenue (20 to 30 basis points from 17.6% in 2013). Operating expenses are expected to moderately decline as a percent of revenue (30 to 40 basis points from 15.1% in 2013).

Rates

View Comments (102)