InPlay from Briefing.com

Briefing.com

3:49 pm Baxalta confirms receipt of an offer from Shire (SHPG) to acquire the company; determines that it is not in the best interests of its shareholders (Shares Still Halted) (BXLT) : Co confirmed receipt from Shire plc (SHPG) of a highly conditional, unsolicited proposal to acquire all of the outstanding common shares of Baxalta in an all-stock transaction under which Baxalta shareholders would receive for each Baxalta share 0.1687 Shire ADRs. Co noted that it received this same proposal privately on July 10, 2015.

  • Co carefully reviewed the proposal and unanimously determined that it is not in the best interests of Baxalta or its shareholders. 
  • Co stated: "As a new, publicly-traded entity only since July 1, we are just in the initial stages of implementing our growth strategy as a standalone company and our stock has not yet achieved a price level that appropriately reflects the company's value and prospects. A transaction at the exchange ratio you proposed significantly understates Baxalta's true value. Our Board has evaluated your proposal in this context and concluded that it is not a basis for further discussions."

3:34 pm Earnings Calendar for tomorrow before the open (:SUMRX) : Tomorrow before the open look for the following companies to report:

  • HCA, TWX, AVT, DISH, WCG, HFC, D, CTSH, CHK, PCLN, VOYA, PWR, DISCA, RL, PRGO, KELYA, CSTM, MSI, SE, SPB, LDOS, LPLA, ENBL, CLH, ICE, VC, CEQP, DNOW, EPC, TMHC, SBGI, MWE, RDC, DNR, WEN, CMLP, HSC, STCK, LG, VSI, AVA, KATE, LL, FI, ANSS, BLT, SUP, AVOL, ATRO, MEMP, LGIH, LIOX, GTN, ATHM, CSTE, SPAR, VIRT, SODA, WD, GSIG, INXN, CONE, CRK, LINC, CLDT, THR, USAC, SNAK, SALE, VLP, WIX, CNNX, SPNS, DAVE, GDP, SCMP, ARIA, OSIR, AMSC, MSO, SRDX, CRME, ONCE, KERX, ARQL, EE, GLPG

3:34 pm Earnings Calendar for today after the close (:SUMRX) : Today after the close look for the following companies to report:

  • DIS, PAGP, PAA, LBTYA, DVN, OKE, DVA, OKS, GNW, CZR, TX, CERN, QUAD, TSE, NBR, FSLR, PXD, CVG, ATVI, WR, MHLD, AMSG, G, TROX, TRMB, SMCI, NFX, RXN, MATX, CENT, ACHC, XEC, PZZA, BW, BFAM, MDRX, AHS, KFRC, REGI, ENSG, BKH, OAS, TISI, EPAM, USNA, WTR, FWM, FFG, JCOM, Z, POWL, PKD, CDE, DWA, GDOT, HIW, MASI, RPAI, MBI, NEWP, MPO, THOR, TWO, AWAY, XXIA, AWR, ARC, CBPX, EPR, SKT, INVN, ENPH, BOOT, CSU, RLOC, OFIX, PBPB, LC, MTDR, OCLR, INAP, HCI, ERA, RNET, CHUY, GHDX, ACLS, CWEI, QTS, MRCY, ETSY, ZAGG, REXX, SBRA, KTWO, GLUU, UNTD, JIVE, ZEN, PAYC, EXAR, TSLX, TRUP, SUPN, PRMW, PCTI, LF, TTGT, SYNC, NYMT, MB, ECOM, KRNT, EOX, LGND, NSTG, RMTI, TRIV, HRZN, RIGL, UNXL, PTLA, TTOO, VTAE, AGII, AFG, Y, ECYT, MCUR

3:08 pm Treasuries Knocked Lower by Lockhart's Rate-Hike Comment (BONDX) :

  • A day that began innocently enough on some profit taking took on a more meaningful tone late in the session after Atlanta Fed President Lockhart -- a voting FOMC member -- told The Wall Street Journal that he thought September could be an appropriate time for a rate hike and that the bar is high in his own estimation for not raising rates.

  • The front of the curve bore the brunt of the Lockhart-related selling interest and understandably so given its higher sensitivity to changes in the fed funds rate
    • 2-yr: +7 bps to 0.74%
    • 5-yr: +8 bps to 1.60%
    • 10-yr: +6 bps to 2.21%
    • 30-yr: +4 bps to 2.89%

  • With the spike in yield for the 2-yr note, the 2-10 spread actually came in a basis point from Monday's settlement to 147 basis points

  • Lockhart's remarks had a cascading effect in that they breathed life back into a listless dollar, which took the wind out of a rally effort by WTI crude futures, disintegrated the small gain that had been seen in the euro, and knocked the major stock averages to new session lows.
    • WTI crude futures, up 2.4% at their best level of the day, settled up 1.1% at $45.76/bbl
    • The US Dollar Index, down 0.1% in front of Lockhart's remarks, was up 0.4% as of this post
      • USD/JPY +0.3% to 124.33
      • EUR/USD -0.6% to 1.0893

  • In other developments, the June Factory Orders report didn't cause much of a stir in the Treasury market since the headline numbers were largely in-line with estimates
    • June orders up 1.8% (Briefing.com consensus +1.8%)
    • May orders revised to -1.1% (from -1.0%)
    • An upward revision for shipments of nondefense capital goods, excluding aircraft, to 0.3% from -0.1% will help in computations for second estimate of Q2 GDP

  • Other central bank action:
    • Reserve Bank of Australia left cash rate unchanged at 2.00%, as expected
    • Reserve Bank of India left key repo rate unchanged at 7.25%, as expected

  • Coming up on Wednesday:
    • MBA Mortgage Index (07:00 a.m. ET)
    • ADP Employment Change for July (08:15 a.m. ET)
    • June Trade Balance (08:30 a.m. ET)
    • July ISM Services Index (10:00 a.m. ET)
    • EIA's weekly crude inventory report (10:30 a.m. ET)

2:11 pm Nasdaq Comp -22 joins Dow -90 and S&P -9 at new session lows (:TECHX) :  

2:07 pm Amtrust Financial announces a 20% increase in its quarterly cash dividend to $0.30/share, up from $0.25/share (AFSI) :  

2:05 pm AAC Holdings issues statement, says it believes the 'indictment of the company and the five individuals was legally and factually unfounded, and that the recent published reports are without merit' (shares halted) (AAC) : Highlights of the response include:

  • "We believe the indictment of the company and the five individuals was legally and factually unfounded, and that the recent published reports are without merit...Our company remains focused on our mission, which is to provide quality, comprehensive compassionate and innovative care to individuals struggling with alcohol and drug conditions and mental/behavioral health issues... Consistent with our public statement on July 29, 2015, as we are able to share more information, we will do so."
  • Full Statement

1:51 pm Dow -55 and S&P -4.1 slide to new session lows -- Nasdaq Comp -10.9 (:TECHX) :  

1:21 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

  • CTRP (77.4 +8.33%): Beat Q2 consensus EPS estimates by $0.14, reported revs in-line; guided Q3 revs above consensus; also getting a boost from eLong (LONG), who received a $18/share going private offer from Tencent (TCEHY).
  • NFLX (121.55 +7.99%): Initiated with a Buy at Guggenheim; tgt $160.
  • REGN (584.31 +5.42%): Beat Q2 consensus EPS estimates by $0.11, beat on revs; raised EYLEA US net product sales guidance.
Large Cap Losers
  • ALL (62.23 -10.31%): Missed Q2 consensus EPS estimates by $0.39, reported revs in-line; downgraded at RBC Capital Mkts and Goldman.
  • MNK (110.82 -10.78%): Reported Q3 (Jun) adj. earnings of $2.05 per share, $0.22 better than the Capital IQ Consensus of $1.83; revenues rose 47.8% year/year to $965 mln vs the $983.89 mln consensus.
  • SHPG (250.69 -6.49%): Proposed to acquire Baxalta (BXLT) for ~$45.23/share in stock, or ~$30 bln, says Baxalta has declined to engage in 'substantive discussions'.
Mid Cap Gainers
  • ABMD (89.26 +15.32%): Beat Q1 consensus EPS estimates by $0.13, beat on revs; guided FY16 revs above consensus.
  • IDTI (20.24 +6.14%): Beat Q1 consensus EPS estimates by $0.02, reported revs in-line; price target raised to $32 at Chardan Capital Markets.
  • KBR (18.42 +6.78%): Beat Q2 consensus EPS estimates by $0.18, beat on revs; guided FY15 EPS above consensus.
Mid Cap Losers
  • CGNX (35.32 -21.42%): Reported Q2 EPS in-line, beat on revs; guided Q3 revs below consensus; Downgraded at Canaccord Genuity.
  • WSTC (24.68 -13.74%): Beat Q2 consensus EPS estimates by $0.04, reported revs in-line; guided FY15 EPS in-line, revs in-line.
  • NYLD (16.62 -11.74%): Reported Q2 (Jun) earnings of $0.15 per share, $0.07 worse than the Capital IQ Consensus Estimate of $0.22; revenues rose 25.4% year/year to $217 mln vs the $231.72 mln consensus; cuts 2015 Adj-EBITDA, CAFD guidance.

12:54 pm Midday Market Summary: Technology Sector Weighs (:WRAPX) : The major averages are little changed at midday with the S&P 500 (-0.2%) drifting just below its flat line. The benchmark index has spent the first half bouncing in the neighborhood of its 50-day (2,098) and 100-day moving averages (2,097) while the Nasdaq (-0.3%) underperforms.

Equity indices have spun their wheels so far today, which has masked an ongoing tug-of-war between the top-weighted technology sector (-0.8%) and most of the remaining groups.

The technology sector has retreated due to significant weakness in its top component. Shares of Apple (AAPL 114.31, -4.13) remain lower by 3.5% after being down as much as 4.4% earlier. The stock ended yesterday's session below its 200-day moving average (120.95) and today's decline has widened its loss from mid-July high to 13.7%.

Staying in the tech sector, most other large cap names also trade with losses while chipmakers display notable weakness with the PHLX Semiconductor Index down 1.6%. Only three index components hold gains while Apple supplier-Skyworks (SWKS 86.92, -5.60)-is the weakest performer, down 6.2%.

Like technology, the energy sector (-0.4%) hovers in the red while the remaining cyclical groups hold gains.

Meanwhile on the countercyclical side, telecom services (-0.2%) and utilities (-1.1%) underperform while consumer staples (unch) and health care (+0.1%) trade ahead of the broader market. For its part, the health care sector has received a boost from biotechnology as iShares Nasdaq Biotechnology ETF (IBB 384.06, +1.93) trades higher by 0.5%.

Elsewhere, Treasuries have recently notched new session lows with the 10-yr yield higher by three basis points at 2.18%.

Today's economic data was limited to the Factory Orders report for June, which increased an in-line 1.8%. Durable goods orders increased 3.4% in June, which was unrevised from the advance durable goods report. These orders declined 2.3% in May.

As the advance report already showed, a majority of the increase in orders was the result of a 56.0% increase in defense and nondefense aircraft orders. Excluding transportation, durable goods orders were revised down from a 0.8% gain in the advance report to an increase of 0.6%.

12:49 pm Dow -36 and S&P -3 slip slightly under mid-morning pullback lows -- Nasdaq Comp -11 (:TECHX) :  

12:32 pm Treasuries Taking a Breather (BONDX) :

  • Treasuries have been fighting an uphill battle all day.  Fortunately, it hasn't been a big hill.  Relative to recent gains, losses are modest in scope and have been driven primarily by some profit-taking interest after the big run since early July.

  • Yield check:
    • 2-yr: +2 bps to 0.69%
    • 5-yr: +3 bps to 1.55%
    • 10-yr: +3 bps to 2.18%
    • 30-yr: +3 bps to 2.88%

  • 2-yr - 10-yr spread has widened a basis point to 149 basis points 

  • Selling efforts have been curtailed by the lack of upside movement in the stock market, which has been weighed down by continued losses in Apple (AAPL 114.96, -3.98)

  • There wasn't much reaction to the June Factory Orders report, which was pretty much in-line with expectations, including the revision.  The upshot is that shipments of nondefense capital goods orders, excluding aircraft, were revised up, which will factor favorably in the second estimate for Q2 GDP.
    • June Factory Orders +1.8% (Briefing.com consensus +1.8%)
    • May Factory orders revised to -1.1% (from -1.0%)
    • June shipments revised to +0.3% (from -0.1%)

  • WTI crude futures have been on the rebound today, aided partially by a weaker dollar and more fully by bargain-hunting interest after dropping roughly 27% from their June high
    • WTI crude +2.1% to $46.13/bbl

  • FX check:
    • USD/JPY +0.1% at 124.04
    • EUR/USD +0.3% at 1.0954

12:27 pm W.R. Berkley announces that Founder and current Chairman and CEO, William R. Berkley, will become Executive Chairman on October 31, 2015 (WRB) : At that time, W. Robert Berkley, Jr. will assume the role of chief executive officer, continuing the transition plan implemented by the Board of Directors when he was appointed president and chief operating officer in 2009.

12:22 pm Golar LNG Partners: Golar LNG (GLNG) approves a unit purchase program under which it may purchase up to $25 mln worth of GMLP outstanding units over the next 12 months (GMLP) : Given Golar LNG Partners'current yield of approximately 11%, Golar LNG (GLNG) views this purchase program asan attractive investment opportunity.

12:00 pm Monsanto increases quarterly dividend to $0.54/share from $0.49/share (MON) :  

11:58 am Marvell confirmed the mixed ruling in its case against Carnegie Mellon; award reduced by more than $1.25 bln (MRVL) : The co reported that the Federal Circuit has vacated the judgment in favor of Carnegie Mellon University, reducing the award by more than $1.25 billion and ordering a partial retrial on the location of sales of chips made and shipped abroad.  The company says it is studying the specifics of the opinion carefully to determine its future options.

11:51 am European Markets Closing Prices (:SUMRX) : European markets are now closed; stock markets across Europe performed as follows:

  • UK's FTSE:0.0%
  • Germany's DAX:+0.1%
  • France's CAC:-0.2%
  • Spain's IBEX:-1.1%
  • Portugal's PSI:-0.6%
  • Italy's MIB Index:-1.0%
  • Irish Ovrl Index:0.0%
  • Greece ASE General Index: -1.2%

11:49 am Pfizer confirms EC approval, including certain commitments, of its pending acquisition of Hospira (HSP), expects the transaction to close by the end of the year (PFE) :  

11:44 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (206) outpacing new highs (162) (:SCANX) : Stocks that traded to 52 week highs: AAP, ABCB, ABMD, ACN, ACRE, ADPT, AF, AFSI, AIZ, ALK, AMRB, ANSS, ARL, ARMK, ASR, ATRC, AYI, AYN, BDX, BEAT, BF.A, BF.B, BFAM, BKFS, BLDR, BNCN, BOH, BUFF, BXLT, CARA, CASY, CBM, CBPO, CDW, CFNL, CHD, CHDN, CHE, CLX, CMG, CMRX, CPB, CRVP, CSFL, DCM, DHR, DIS, DORM, DSGX, DVAX, EFSC, EFX, EL, ELLI, ELNK, ELS, EVER, EVHC, EXEL, EXPE, EXPR, EXR, FAF, FBC, FCFP, FCSC, FFBC, FIX, FL, FNF, FNFG, FOLD, FSV, GIS, GLPG, GNC, GWB, HIFR, HIG, HPY, HRG, HRL, HSKA, HTBI, HTBK, HTLF, HW, IBCP, ICLR, INBK, INGR, INTG, IPCM, IRL, IRMD, IT, JHX, JLL, KAR, LION, LMNS, LXRX, MBTF, MD, MDLZ, MHLD, MKC, MMI, MRNS, MSTR, NBTB, NDRM, NEOS, NEOT, NFLX, NUVA, OCR, OGEN, PAC, PFBC, PFS, PLL, PRE, PRMW, PSA, QGEN, QLTY, QTS, RAI, RDY, REGN, RENX, ROL, RRGB, SABR, SEIC, SIGI, SKX, SKYW, SPP, SPR, SSNC, STNR, TAST, TDOC, THG, TMUS, TOWN, TREE, TWC, UHAL, USG, VGR, VLRS, VNTV, VRTX, WETF, WSM, WTM, WWAV, WWE, XL

Stocks that traded to 52 week lows: AAC, AAU, ABGB, ADAT, ADRO, AEZS, AGZD, AMAT, AMBC, AMCO, ANF, APIC, ARCW, AREX, ARII, ASTI, ASX, ATE, ATW, AU, AXON, BBD, BBG, BCEI, BEN, BKD, BONT, BOX, BOXC, BPI, BRKS, BRS, CADC, CAFD, CAP, CCD, CCM, CDE, CFD, CGG, CGNX, CIO, CKH, CKP, CLCD, CLD, CLNT, CMLP, CNAT, CNIT, CNX, COHU, CRAY, CRK, CRT, CTCM, CVX, DDD, DLNG, DNOW, DNR, DSCO, DTEA, DWSN, EARN, ECA, ECR, EEP, EGIF, EGL, ENLC, ENLK, ENPH, ENRJ, ERA, EROC, ETR, EXAR, FCEL, FELP, FOSL, FREE, FSTR, GFN, GLRE, GLT, GPS, GRAM, GRMN, GST, GULTU, H, HART, HCLP, HELI, HERO, HIIQ, HMY, HNRG, HOV, HTGM, ICL, ICON, IDSY, IIIN, INVE, IRR, ISIL, JGH, JONE, KBIO, KIN, KLIC, KNOP, KOOL, KORS, LC, LHO, LRE, LSCC, MAT, MDM, MDU, MDVX, MEIP, MGH, MGT, MMYT, MRIN, MVO, NAO, NAV, NBG, NDRO, NE, NEM, NFG, NGLS, NIHD, NL, NNVC, NRG, NSLP, NVTA, NYLD, NYLD.A, OIBR, OIBR.C, OKE, ONDK, ONVO, ORIG, PG, PKOH, PNX, PQ, PSEC, QRHC, RATE, REN, REX, RNET, RNWK, ROVI, ROYT, RPD, SBGL, SBR, SCM, SEMI, SGI, SHLD, SINO, SMTC, SPRT, SSYS, STXS, SWC, SWN, SYX, TAC, TECU, TGH, TINY, TK, TNET, TNGO, TORM, TRS, TTF, TWIN, UIS, UNIS, UNT, USAP, VECO, VPCO, VSH, WHZ, WPZ, WSTC, WTI, XOM, YDIV, YLCO, Z

ETFs that traded to 52 week highs: none

ETFs that traded to 52 week lows: PPLT, SGG, VXX, VXZ

11:40 am Aqua America anounces an increase in its quarterly dividend to $0.178/share, up 7.9% from $0.165/share (WTR) :  

11:37 am Currency Commentary: Aussie Rallies (:SUMRX) :

  • The Dollar Index is attempting to brush off a steady flow of weak U.S. economic data. The DXY has been able to hold 97 but headwinds continue to grow as data fails to support the case for a September rate hike. However, the jobs report Friday still lingers and a strong report could erase some of this trend. Factory Orders this morning were in line with expectations but a revision lower to the prior month has many viewing this as yet another miss. 
  • The euro is showing some signs of being able to move up and test 1.10 for resistance. The weakness in the dollar has helped and the single currency has also been boosted by positive comments emanating from a meeting between Greece and EU creditors. The euro is trading at 1.0968 and is now approx 36 pips off the session lows.
  • The pound is rallying hard off the 1.5560 level. Sterling has run approx 60 pips over the last 30 minutes as it sees some buying interest. It will be key for the pound to hold this 1.56 level and build a base for a test of the 1.57-1.58 area. Thursday's BoE interest rate decision and inflation report stand as key potential catalysts for sterling. 
  • The yen continues to straddle the 124 level in relatively uneventful trade. Yen has remained in the 123.80-124.10 area over the course of the session. The Bank of Japan has an interest rate meeting on Thursday evening but there is little expected in the way of news. 
  • The Aussie dollar has been one of the more notable movers this morning. The RBA met early this morning and left its rates unchanged at 2.00% which was widely expected. What surprised markets though was the central bank omitting its statement about its currency being over valued. This was the first time in 18 meetings that the central bank did not mention this concern. Many are taking it as the first signs of a tightening phase for the central bank. THis has led the Aussie to rally from 0.7263 to 0.7428 (BONDX, FOREX).

11:31 am Windstream announces it is one of three awardees of a contract, to provide voice, data and Internet services for the Department of Veterans Affairs (WIN) : Co announced that it is one of three awardees of a contract to provide voice, data and Internet services for the federal government's Department of Veterans Affairs (VA) Office of Information and Technology under the National Consolidation of Local Exchange Carrier Services Contract.

  • The award, with a ceiling of over $450M over the next five years, provides Windstream's comprehensive solutions portfolio to 2,100 VA facilities across the country

11:15 am Metro Bancorp to be acquired by F.N.B. Corporation (FNB) for ~$32.72/share, or $474 mln (shares halted) (METR) : The acquisition will provide FNB with approximately $3.0 billion in total assets, including $2.4 billion in total deposits, $2.1 billion in total loans and 32 banking offices located in the Harrisburg, York, Lancaster, Reading and Lebanon MSAs. With the acquisition of Metro, FNB will have $19.6 billion in assets, including $14.7 billion in total deposits, $13.7 billion in total loans and more than 300 full service banking offices.

  • Under the terms of the merger agreement, which has been approved by the board of directors of each company, shareholders of Metro will be entitled to receive 2.373 shares of FNB common stock for each common share of Metro. The exchange ratio is fixed and the transaction is expected to qualify as a tax-free exchange for shareholders of Metro.
  • FNB says the transaction meets all of its prescribed acquisition criteria including strong earnings per share accretion in the first full year of 4% on a GAAP basis and 6% on a cash basis, and an internal rate of return on capital invested of more than 20%. Tangible book value per common share is expected to be diluted by approximately 3% at closing supported by an earnback period of just under five years using the crossover method and less than 5 months on a pro forma earnings basis
  • Upon consummation of the merger, FNB will appoint one current Metro Director to its Board of Directors. FNB and Metro expect to complete the transaction in the first quarter of 2016 after satisfaction of customary closing conditions, including regulatory approvals and the approval of the FNB and Metro shareholders.

11:08 am American Express: Judge rejects settlement between AXP and merchants - CNBC (AXP) : V, MA

11:01 am New session lows for market averages -- Dow -25, S&P -2.7, Nasdaq Comp -15.8 (:TECHX) : Sectors displaying relative weakness relative to the S&P include: Semi SMH, Technology XLK, Networking IGN, Biotech IBB.

10:52 am Apple extends breakdown to gap (AAPL) : As noted Friday AAPL had not penetrated its 200 sma/ema since Sep 2013. Yesterday the index penetrated the averages with the downside extension working back toward its Jan 2015 gap at 112.48 (session low 113.31).

10:48 am S&P -0.3 and Nasdaq Comp -2 stall near first level resistances (:TECHX) : Noted first level resistance in The Technical Take for the S&P at 2103/2104 (session high 2102) and 5123/5130 Nasdaq Comp (session high 5125) with a test followed by a limited pullback in recent action.

10:39 am On Deck Capital (-21%) at new all time low after co guided Q3/FY15 below expectations; note co preannounced upside Q2 results due to gains from loan sales (ONDK) : Deutsche Bank downgraded the stock to Hold this morning... Consumer focused Lending Club (LC) is down 7%.

10:29 am LendingTree (+35%) at new all time highs after beating Q2 estimates and raising FY15 guidance for the third time (TREE) :  

10:29 am Dow +34 and S&P +4.1 join Nasdaq Comp +8.8 at new session high (:TECHX) :  

10:25 am Penn Virginia engages Jefferies to act as its exclusive financial advisor, for asset-level financing transactions related to the its Eagle Ford assets (PVA) : Jefferies will also help the Company evaluate strategic alternatives with respect to its Eagle Ford assets and their development. 

10:21 am Sector relative strength (:TECHX) : Sectors that have displayed relative strength in recent trade as the major averages hover near session highs include: Bank KBE, Reg Bank KRE, Utility XLU, Biotech IBB, Retail XRT, Discretionary XLY, Materials XLB, Health XLV, Software IGV (MSFT +1.1%).

10:12 am New session high for Nasdaq Comp +1.4, thus far Dow +5 and S&P +1 have not confirmed the new high (:TECHX) :  

9:52 am Starwood Property Trust Correction: Q2 EPS in-line; reaffirms FY15 EPS guidance (STWD) : Reports Q2 (Jun) core earnings of $0.53 per share, in-line with the Capital IQ Consensus of $0.53, core earnings ex-one-time acquisition and pursuit costs was $0.55; revenues rose 4.6% year/year to $178.7 mln vs the $198.3 mln consensus.

  • Co reaffirms guidance for FY15, sees core EPS of $2.05-2.25, excluding non-recurring items, vs. $2.15 Capital IQ Consensus Estimate.

9:51 am Microsoft early advance reaches 47.28, its Mid-July peak and last week's multi-week high are at 47.33/47.40 (MSFT) :  

9:47 am Netflix probes last week's recovery high at 115.00 -- session high 114.99 (NFLX) : Its all time close high from July is at 115.81 with the July/all time intraday peak at 117.88.

9:40 am Sector Watch (:TECHX) : Early relative strength in: Steel SLX, Oil Service OIH, Gold Miners GDX, Airline JETS, Crude Oil USO, Mining XME, Energy XLE, Coal KOL. Groups on the defensive include: Semi SMH, Utility XLU, Technology XLK (AAPL -2.1%), Staples XLP, Copper JJC.

9:40 am Opening Market Summary: Technology Sector Displays Early Weakness (:WRAPX) : As expected, the major averages began the trading day near their flat lines. The S&P 500 (-0.1%) holds a slim loss even though six sectors trade in the green.

The energy sector (+0.9%) was the weakest performer yesterday, but the growth-sensitive group has seized the early lead today thanks to a 1.9% spike in crude oil, which has climbed to $46.01/bbl. Similar to energy, three other cyclical sectors hold gains, but top-weighted financials (-0.2%) and technology (-0.5%) underperform.

Notably, the early weakness in the tech sector has been fueled by a 1.9% decline in the shares of Apple (AAPL 116.27, -2.17) with the stock extending its recent weakness after settling below its 200-day moving average (120.96) yesterday.

Elsewhere, Treasuries remain near their lows with the 10-yr yield up two basis points at 2.17%.

The Factory Orders report for June will be released at 10:00 ET (Briefing.com consensus 1.8%).

9:38 am Mixed early performance for market averages -- Dow +1, S&P +0.2, Nasdaq Comp -4 (:TECHX) :  

9:35 am Coca-Cola extends push back above its 200 sma, pauses slightly under its four month high from May at 41.69 -- session high 41.62 (KO) :  

9:31 am Merit Medical receives 510(k) clearance from the FDA, to expand the indication for QuadraSphere Microspheres, to include the embolization of hepatoma (MMSI) :  

9:31 am Roadrunner Transportation prices its offering of 2 mln shares on behalf of selling shareholders are $24.75/share (RRTS) :  

9:30 am Intec Pharma (Nasdaq: NTEC) prices its upsized 5.03 mln share IPO at $6.00, below expectations (:NTEC) : The co's IPO was upsized from prior plans to offer 4.5 mln share. At the time of its prospectus, its listing on the Tel Aviv Exchange had equated to a U.S. expected price of $8.36. The co now anticipates ~$30.15 mln in gross proceeds, vs prior expectations for its offering to raise $34.1 mln in net proceeds.

9:29 am On the Wires (:WIRES) :

  • Dolby Laboratories, Inc (DLB) announced a collaboration with Top Victory Investments to promote the adoption of Dolby AC-4 in its affiliate TP Vision's televisions for next-generation broadcast systems and streaming Internet content
  • Cree, Inc. (CREE) and Epistar Corporation have signed a worldwide patent cross-license agreement for light emitting diode chips. Under the terms of the agreement, each party receives a license to the other's nitride LED chip patents and is granted certain rights to non-nitride LED chip patents. Over the term of the agreement, Cree will receive a licensing fee and royalty payments from Epistar
  • Top Image Systems, Ltd (TISA) announced the addition of Andrew Pery, to serve as TIS' CMO. Pery has joined TIS effective August 1st, 2015 and will report to CEO Michael Schrader
  • Brandywine Realty Trust (BDN) announced it has acquired the remaining interest in the Broadmoor campus located at 11501 Burnet Road. The acquisition provides full ownership of the seven-building, 66-acre, 1.1 million square foot office campus
  • Avid (AVID) announced that Sinclair Broadcast Group, the largest television station operator in the United States, is updating its production facilities and implementing end-to-end workflows with the Avid MediaCentral Platform
  • Hortonworks, Inc. (HDP) announced it has signed a reseller agreement with EMC (EMC), to enable EMC to resell Hortonworks' Data Platform
  • Mad Catz Interactive, Inc. (MCZ) announced the start of pre-orders for the R.A.T. PROX, the company's next generation of high-performance adjustable PC gaming mice, compatible with Windows 10

9:17 am CA Tech acquires ID management solutions provider, Xceedium, Inc; terms not disclosed, with closure expected this quarter (CA) : Privately held Xceedium, Inc. is a provider of privileged identity management solutions that protect on-premise, cloud and hybrid IT environments

9:11 am S&P futures vs fair value: -0.10. Nasdaq futures vs fair value: -1.10. (:WRAPX) : The stock market is on track for a flat open as S&P 500 futures trade within a point of fair value. Index futures tested their pre-market lows during the past 90 minutes, but they have retreated near their overnight highs.

Investors have received another batch of earnings since yesterday's closing bell, but most of the results have come from companies that are not known for moving the market. For instance, CVS Health (CVS 112.85, +0.03) is flat in pre-market despite beating bottom-line estimates while Coach (COH 31.76, +1.33) trades up 4.4% after beatings earnings and revenue expectations.

On the economic front, today's economic data will be limited to the Factory Orders report for June, which will be released at 10:00 ET (Briefing.com consensus 1.8%).

Treasuries hover in the red with the 10-yr yield up three basis points at 2.18%.

9:07 am Anixter announces an offering of $350 mln in senior notes due 2023 (AXE) : Co intends to use the net proceeds of the offering to fund a portion of the consideration for the previously announced acquisition of HD Supply's Power Solutions business

9:07 am ISIS Pharm reports EPS in-line, beats on revs (ISIS) : Reports Q2 (Jun) earnings of $0.29 per share, in-line with the Capital IQ Consensus Estimate of $0.29; revenues rose 110.9% year/year to $120.4 mln vs the $118.92 mln consensus.

  • Already in the third quarter of 2015, Isis has earned $33 million from milestone payments from Roche for the initiation of a Phase 1/2 study for ISIS-HTTRx and from Biogen for continuing to advance ISIS-SMNRx. Isis also expects to earn approximately $5 million over the second half of 2015 from the amortization of the upfront payment from its new AstraZeneca collaboration.
  • "We believe that the second half of the year will be equally productive with a number of pipeline activities that should continue to provide value to Isis and its shareholders. From our lipid franchise, we plan to report data from our Phase 2 study on our novel Lp(a)-lowering drug. The importance of therapies to specifically reduce Lp(a) and the promise of Akcea's drug to do so was highlighted in a recent Lancet article and points to patients' need for a specific Lp(a) lowering medicine. We have numerous clinical trial initiations planned, including the Phase 3 study in cardiomyopathy being conducted by GSK and the Phase 3 study evaluating volanesorsen in patients with familial partial lipodystrophy. This second Phase 3 study for volanesorsen is designed to support bringing this important drug to the market for these patients who have an ultra-rare orphan disease and who are in need of effective new therapies. And of course, we expect to continue to add new drugs to our pipeline this year..."
  • "Because of our strong financial performance in the first half of this year, we expect to substantially improve upon our year-end guidance. We are reducing our projected pro forma NOL by more than 40 percent to a pro forma NOL in the low $30 million range. We are also projecting to end the year with more than $750 million in cash, which is an increase over our original cash guidance of more than $120 million and a modest increase over our 2014 year end cash balance."

9:06 am Textainer Group misses by $0.06, misses on revs (TGH) : Reports Q2 (Jun) earnings of $0.66 per share, excluding non-recurring items, $0.06 worse than the Capital IQ Consensus of $0.72; revenues fell 0.9% year/year to $138.2 mln vs the $140.81 mln consensus. 

  • "We have not seen a traditional peak season and remain cautious about container demand during the second half of the year. We expect a further slight decline in utilization during the second half of the year and we do not expect the competitive environment to wane. Given the outlook for steel prices, ample manufacturing capacity and muted demand, new container prices are not expected to increase in the near term and are likely to fall further. With low new prices and increasing quantities of containers being put to disposal, used container prices will also remain under pressure."

9:06 am Alpha Pro Tech reports Q1 EPS of $0.02 vs $0.05 year ago; revs -1.6% y/y to $12.1 mln (no estimates) (APT) :

  • Co said new distributor programs are expected to drive increased sales in building supply segment in second half of 2015

9:05 am Expeditors Intl beats by $0.08, misses on revs (EXPD) : Reports Q2 (Jun) earnings of $0.62 per share, $0.08 better than the Capital IQ Consensus Estimate of $0.54; revenues rose 5.8% year/year to $1.69 bln vs the $1.72 bln consensus.

Key Comments

  • "Although still in the early implementation of our strategic initiatives, we are on track with our internal targets".
  • "We are, however, fully aware of the stiff comparable that exists in the second half of 2015. There is no doubt that global trade has slowed from its peak period..."
  • "In addition to our strong growth in air and ocean volumes, the second quarter benefited from favorable spot market buying opportunities. This resulted in a significant expansion of our margins. We expect pricing volatility to continue as customers and carriers adjust to current market conditions..."

9:04 am Sempra Energy beats by $0.03, misses on revs; reaffirms FY15 EPS in-line (SRE) : Reports Q2 (Jun) earnings of $1.03 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $1.00; revenues fell 11.6% year/year to $2.37 bln vs the $2.8 bln consensus.

  • Co reaffirms guidance for FY15, sees EPS of $4.60-5.00, excluding non-recurring items, vs. $4.86 Capital IQ Consensus Estimate.

9:03 am Delta Air Lines reports July 2015 operating performance, showing consolidated PRASM decreased 3% Y/Y (DAL) : Co reported that consolidated passenger unit revenue (:PRASM) for the month of July decreased 3.0 percent year over year, with pressure from foreign exchange, lower surcharges in international markets, and continued yield pressure in select domestic markets

9:00 am Fuel-Tech announces the receipt of multiple air pollution control contracts from customers in the US, Europe and China worth ~$4.7 mln; orders to be completed in both 2015 and 2016 (FTEK) :  

8:58 am S&P futures vs fair value: +0.50. Nasdaq futures vs fair value: -1.80. (:WRAPX) : The S&P 500 futures trade within a point of fair value.

China's Shanghai Composite surged 3.7%, yet that belies the fact that most markets in the Asia-Pacific region finished lower on Tuesday, drafting off the relatively weak showing from Wall Street and the continued decline in commodity prices. China's strength was attributed to reports that regulators took further steps to curb short selling. Also of note, the Reserve Bank of Australia left its cash rate unchanged at 2.00% while the Reserve Bank of India also left its key repo rate unchanged at 7.25%. Neither central bank was expected to make a move today.

  • In economic data: 
    • Japan's Monetary Base +32.8% year-over-year (expected 32.2%; prior 34.2%) and Average Cash Earnings -2.4% year-over-year (expected +0.9%; prior +0.7%) 
    • South Korea's July CPI +0.2% month-over-month (expected +0.2%; prior 0.0%); +0.7% year-over-year (expected +0.7%; prior +0.7%) 
    • Australia's June Trade Balance AUD -2.933 bln (expected AUD -3.100 bln; prior AUD -2.677 bln) as Exports +3.0% month-over-month (prior +1.0%) and Imports +4.0% month-over-month (prior -4.0%). Separately, June Retail Sales +0.7% month-over-month (expected +0.5%; prior +0.4%); +0.8% quarter-over-quarter (expected +0.4%; prior +0.6%) 
------
  • Japan's Nikkei closed on an upswing but still declined 0.1% for the session. Weakness in the technology (-1.9%), materials (-1.3%), and industrials (-0.8%) offset strength in the health care (+2.0%), consumer discretionary (+0.8%), and financials (+0.3%) sectors. Maruha Nichiro (-7.4%), Mitsubishi (-6.9%), and IHI Corp (-6.7%) led individual decliners while Nippon Soda (+6.0%), Kajima Corp (+5.9%), and Sumitomo Dainippon Pharma (+5.2%) paced the winners. Out of the 225 index members, 85 ended higher, 135 finished lower, and 5 were unchanged. 
  • Hong Kong's Hang Seng ended just below the unchanged mark in a meandering session that saw it spend most of the time rebounding from an early 0.8% decline. China Mengniu Diary (-4.2%), Tingyi Cayman Islands Holding Corp (-3.0%), and HSBC Holdings (-1.6%) were the worst-performing stocks. China Resources Power Holdings (+4.7%), China Life Insurance (+3.4%), and Sino Land Co (+2.4%) topped the list of winners. Out of the 50 index members, 28 ended higher, 20 finished lower, and 2 were unchanged. 
  • China's Shanghai Composite surged 3.7% and finished at its highs for the day. The market rallied on reports regulators have made it even more difficult to sell stocks short. Several brokerages, including Citic Securities, announced they would be suspending their short-selling services on a temporary basis, according to media reports. 
Major European indices trade lower across the board with Italy's MIB (-1.4%) pacing the slide. Elsewhere, Greek banks have faced continued heavy selling pressure following yesterday's re-opening of the Athens Stock Exchange. Meanwhile, the Athens General Index remains lower by 1.7% after being down as much as 4.9% earlier.
  • Economic data was limited: 
    • Eurozone June PPI -0.1% month-over-month, as expected; -2.2% year-over-year, as expected 
    • UK's July Construction PMI fell to 57.1 from 58.1 (expected 58.4) 
    • Spain's Unemployment Change -74,000 (expected -45,600; prior -94,700) 
------
  • UK's FTSE is lower by 0.2% with financials among the laggards. Barclays, Standard Life, and Lloyds Banking Group are down between 0.9% and 2.8%. On the upside, miners outperform with Anglo American, Antofagasta, BHP Billiton, Fresnillo, and Rio Tinto up between 1.7% and 2.2%. 
  • Germany's DAX trades down 0.2%. Similar to the UK, bank stocks underperform with Commerzbank and Deutsche Bank down 1.9% and 2.6%, respectively. Meanwhile, basic materials outperform with Lanxess, ThyssenKrupp, and HeidelbergCement up between 0.7% and 1.7%. 
  • France's CAC has given up 0.6% amid an 11.0% plunge in Credit Agricole after the bank reported rising costs and increased its legal reserve. Other financials display slimmer losses with BNP Paribas down 1.0% and Societe Generale lower by 2.0%. 
  • Italy's MIB underperforms with a loss of 1.4% amid broad weakness. Banco Popolare, Banca Pop Emilia Romagna, BMPS, Intesa Sanpaolo, UBI Banca, and Unicredit show losses between 1.6% and 3.4%.

8:57 am On the Wires (:WIRES) :

  • Silicom Ltd. (SILC) announced a Design Win for 100G Bypass Blades with an existing customer in the Traffic Management industry. Initial-quantity production has begun and is expected to ramp up to approximately $1 million per year.
  • Harmony Gold Mining (HMY) advised that an employee was fatally injured in a rail bound accident at its Kusasalethu mine near Carletonville on Monday morning. Investigations into the accident are underway and all tramming operations on the level where the accident occurred have been stopped
  • Versartis, Inc. (VSAR) announced that data from its ongoing pediatric Extension Study has been accepted for a late-breaker poster presentation at the upcoming 54th Annual Meeting of the European Society for Paediatric Endocrinology

8:57 am Brookfield Property Partners to renew its prior normal course issuer bid for a one-year period (BPY) : BPY stated that at times its limited partnership units trade in price ranges that do not fully reflect their value. As a result, from time to time, acquiring limited partnership units represents an attractive and desirable use of available funds. The notice provides that BPY may, during the twelve month period commencing August 6, 2015 and ending August 5, 2016, purchase on the Toronto Stock Exchange, the New York Stock Exchange and any alternative Canadian trading platform, up to 13,142,359 limited partnership units, representing approximately 5% of its issued and outstanding limited partnership units.

8:57 am On the Wires (:WIRES) :

  • Orbital ATK (OA) announced that the company recently received domestic and international contracts for tactical and target practice medium-caliber ammunition valued at nearly $30 million
  • The Western Union Company (WU) and Cash Money announced that they will be extending their more than 20-year relationship. Western Union international and domestic money transfer and money orders and bill payment services will continue to be available at more than 170 Cash Money Agent locations
  • Tampa Electric, subsidiary of TECO Energy (TE) announced it will build the largest solar project in the Tampa Bay area. The 25-megawatt facility will feature more than 70,000 solar panels on 125 acres of company-owned land at the Big Bend Power Station in Apollo Beach and is scheduled to be completed in 2016
  • Polycom, Inc. (PLCM) announced that Polycom VVX business media phones are now available on and interoperable with Alcatel-Lucent (ALU) Rapport for Enterprise, a software-based, open communications platform
  • Xactly, (XTLY) announced that G3 Comms, a supplier of Unified Communications solutions and systems integration services, is using Xactly's software to handle its sales incentive programs and manage employee performance
  • Fleetmatics Group PLC (FLTX) announced the appointment of John Molamphy to the newly-created position of Vice President of Engineering
  • CECO Environmental Corp. (CECE) announced the recent appointment of Stephen M. Fritz as Vice President of Aftermarket effective July 20, 2015
  • Marathon Patent Group, Inc. (MARA) announced that it has entered into a settlement and license agreement with Porsche Cars North America, Inc. The consideration to be paid by Porsche to the company and all other terms of the license agreement are confidential

8:46 am MFA Mortgage beats by $0.01 (MFA) : Reports Q2 (Jun) earnings of $0.20 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.19.

  • "MFA remains positioned for a period when Federal Reserve monetary policy may become more variable based on measures of the labor markets, indicators of inflation, international developments and other incoming data. Through asset selection and hedging strategy, the estimated effective duration, a gauge of MFA's interest rate sensitivity, remains below 1.0 and measured 0.61 at quarter-end. Leverage, which reflects the ratio of our financing obligations to equity, was 3.3:1 at quarter-end."
  • "In the second quarter, we continued to identify and acquire credit sensitive residential mortgage assets that generate earnings without increasing MFA's overall interest rate exposure."

8:43 am Lakeland to acquire Pascack Bancorp (PSBR) for $11.35/share, or ~$43.8 mln (LBAI) : Lakeland Bancorp expects to issue an aggregate of approximately 3.3 million shares of its common stock in the merger, and will cash out outstanding Pascack Bancorp options. The transaction is valued at approximately $43.8 million on a fully diluted basis, or $11.35 per share, which represents a 53.4% premium over the closing sale price per share of Pascack Bancorp common stock on July 30, 2015.

  • The transaction is expected to be approximately 4.5% accretive to Lakeland Bancorp's earnings per share in 2016 and approximately 2.7% dilutive to tangible book value with an estimated earn back in approximately 3.5 years. 
  • As of June 30, 2015, Pascack Bancorp had consolidated total assets, total loans, total deposits and total stockholders' equity of $402.7 million, $334.0 million, $304.8 million and $33.3 million, respectively.

8:40 am European Markets Update: FTSE -0.2%, DAX -0.2%, CAC -0.6%, MIB -1.4% (:SUMRX) : Major European indices trade lower across the board with Italy's MIB (-1.4%) pacing the slide. Elsewhere, Greek banks have faced continued heavy selling pressure following yesterday's re-opening of the Athens Stock Exchange. Meanwhile, the Athens General Index remains lower by 1.7% after being down as much as 4.9% earlier.

  • Economic data was limited:
    • Eurozone June PPI -0.1% month-over-month, as expected; -2.2% year-over-year, as expected 
    • UK's July Construction PMI fell to 57.1 from 58.1 (expected 58.4) 
    • Spain's Unemployment Change -74,000 (expected -45,600; prior -94,700) 
------
  • UK's FTSE is lower by 0.2% with financials among the laggards. Barclays, Standard Life, and Lloyds Banking Group are down between 0.9% and 2.8%. On the upside, miners outperform with Anglo American, Antofagasta, BHP Billiton, Fresnillo, and Rio Tinto up between 1.7% and 2.2%. 
  • Germany's DAX trades down 0.2%. Similar to the UK, bank stocks underperform with Commerzbank and Deutsche Bank down 1.9% and 2.6%, respectively. Meanwhile, basic materials outperform with Lanxess, ThyssenKrupp, and HeidelbergCement up between 0.7% and 1.7%. 
  • France's CAC has given up 0.6% amid an 11.0% plunge in Credit Agricole after the bank reported rising costs and increased its legal reserve. Other financials display slimmer losses with BNP Paribas down 1.0% and Societe Generale lower by 2.0%. 
  • Italy's MIB underperforms with a loss of 1.4% amid broad weakness. Banco Popolare, Banca Pop Emilia Romagna, BMPS, Intesa Sanpaolo, UBI Banca, and Unicredit show losses between 1.6% and 3.4%.

8:38 am Medical Properties Trust misses by $0.01, misses on revs (MPW) : Reports Q2 (Jun) funds from operations of $0.30 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.31; revenues rose 30.3% year/year to $99.8 mln vs the $101.72 mln consensus.

  • Per share Normalized FFO is expected to range between approximately $1.28 and $1.32 on an annual run-rate basis.

8:37 am Gapping down (:SCANX) : Gapping down
In reaction to disappointing earnings/guidance
: TNET -32.6%, CGNX -22.1%, (authorized the purchase of up to $100 mln of common stock), ONDK -10.3%, (also announces that an affiliate of Jefferies Group has entered into an amended forward purchase agreement giving Jefferies the ability to purchase up to $500 mln in small business loans through OnDeck Marketplace over the next 12 months), KLIC -7.8%, ALL -7.7%, SGMS -6.2%, HYH -5.1%, DENN -4.8%, PQ -4.8%, BKD -4.6%, REMY -4.4%, TXRH -4.1%, RRD -4.1%, VSH -3.9%, VSH -3.9%, SCOR -3.6%, CHGG -3.5%, CVS -3.4%, MIC -3.2%, CAR -3%, PH -3%, EIGI -2.9%, CHTR -2.3%, ADM -2.1%, BMRN -1.8%, MCHP -1.8%, (also completes its acquisition of Micrel), MDU -1.7%, HEP -1.6%, NOAH -1.2%, ALR -0.8%

M&A news: SHPG -2.9% (Shire (SHPG) proposes to acquire Baxalta (BXLT) for ~$45.23/share in stock; says Baxalta has declined to engage in substantive discussions)

Other news: NBG -13.1% (Greece stocks cont to slide in Europe), RRD -4.1% (announces its intent to transform itself into three independent, publicly traded companies), IMPR -3.9% (announces a 4.35 mln share, proposed public offering of common stock by selling stockholders ), PLUG -3.5% ( files for ~7.89 mln share common stock offering by selling shareholders ), EIGI -3.1% (announces transition of CFO Tivanka Ellawala to working on e-commerce strategy initiatives; appoints Marc Montagner as new CFO, to take effect next month), RRTS -2.6% (announces a public offering of 2 mln common stock shares, exclusively by selling stockholders affiliated with HCI Equity Partners), IART -2.5% (announces a $200 mln public offering of its common stock), BCS -2.4% (in symp with Credit Ag, down 9% after earnings), DB -2.1% (in symp with Credit Ag, down 9% after earnings), CPF -1.4% (announces a secondary offering of ~5.54 mln common shares by ACMO-CPF and Carlyle Financial Services Harbor shareholders) 

Analyst comments: ON -0.9% (downgraded to Neutral from Outperform at Wedbush)

8:36 am Martin Marietta misses by $0.38, misses on revs; authorized 20 mln share common stock offering (MLM) : Reports Q2 (Jun) earnings of $1.22 per share, $0.38 worse than the Capital IQ Consensus Estimate of $1.60; revenues rose 37.7% year/year to $921.4 mln vs the $1012.55 mln consensus. 

  • Nonresidential construction is expected to increase in both the heavy industrial and commercial sectors. The Dodge Momentum Index remains high and signals continued growth. Energy-related economic activity, including follow-on public and private construction activities in the Company's primary markets, is anticipated to remain strong. The significant amount of rainfall during the first half of the year coupled with capacity constraints is expected to delay a portion of weather-delayed shipments into 2016. 
  • The Company is authorized to execute a share repurchase program under which it may acquire up to 20 million shares of its outstanding common stock.

8:35 am Global Ship Lease reports Q2 results; initiates quarterly dividend (GSL) :

  • Co reports Q2 EPS of $0.06 vs $0.05 Capital IQ Consensus Estimate; revs 22.4% y/y to $41 mln vs $40.3 mln Captial IQ Consensus Estimate. 
  • Initiates Quarterly Dividend of $0.10 Per Class A Common Share and intends to raise dividend to $0.125 per Class A common share or $0.50 annualized, following full contribution of OOCL Ningbo in fourth quarter. 

8:34 am Ryman Hospitality beats by $0.03, reports revs in-line; reaffirms FY15 FFO in-line (RHP) : Reports Q2 (Jun) funds from operations of $1.45 per share, $0.03 better than the Capital IQ Consensus Estimate of $1.42; revenues rose 6.2% year/year to $274 mln vs the $274.46 mln consensus.

  • Co  reaffirms guidance for FY15, sees FFO of $4.86-5.25 vs. $4.86 Capital IQ Consensus Estimate.
  • Co lowers hospitality total RevPAR guidance for 2015 to 3.0-4.5%, from 3.0-5.0%

8:34 am Gapping up (:SCANX) : Gapping up
In reaction to strong earnings/guidance
: WRES +26.2%, FIVN +12.6%, (light volume), MDAS +12.5%, KOPN +11.5%, RTEC +9.5%, TREE +9%, (light volume), ALLT +8.9%, IDTI +8.8%, COH +8.1%, TSRA +7.4%, QEP +7.2%, BPI +6.6%, PLOW +6%, MCEP +5.5%, QLYS +5.3%, S +4.8%, REGN +4.6%, CYH +4.3%, (Community Health plans to create a new publicly traded hospital company by spinning off a group of 38 hospitals and Quorum Health Resources), HW +4.1%, CTRP +4.1%, HAR +3.6%, TVPT +3.4%, LLNW +3.3%, CRTO +3.3%, MGM +3.3%, SNI +3.1%, ALDW +2.9%, DPLO +2.7%, ABMD +2.5%, NGLS +2.4%, IVAC +2.1%, ZTS +2.1%, RSPP +1.9%, AET +1.9%, ACRX +1.5%, ODP +1.3%, GEO +1.1%, OZM +0.9%, LPX +0.9%

M&A news: IPCM +35.6% (to be acquired by Team Health (TMH) in all-cash transaction with enterprise value of approx $1.6 bln or $80.25 per share),BXLT +20.5% (Shire (SHPG) proposes to acquire Baxalta for ~$45.23/share in stock; says Baxalta has declined to engage in substantive discussions ),LONG +17.4% (receives non-binding 'Going Private' offer for $18 per ADS, also reported earnings)

Select metals/mining stocks trading higher: CAS +8.4%, RIO +3%, CLF +2.9%, BHP +2.8%, MT +2.3%

Other news: MDAS +12.5% (Starboard confirms 8.7% stake in MedAssets, delivers letter outlining plan to increase shareholder value; believes operational improvements could push stock price to at least $37-$46),ISIS +1.4% ( reports positive data from its Phase 3 study of Kynamro Focus FH , showing the trial met its primary endpoint of reduction in LDL-cholesterol)

Analyst comments: SSYS +2.9% (upgraded to Overweight from Neutral at JP Morgan ),AA +1.7% (upgraded to Buy from Neutral at UBS),NGVC +1.4% (upgraded to Neutral from Underperform at Wedbush)

8:33 am Versartis beats by $0.12, reports no revenue (VSAR) : Reports Q2 (Jun) loss of $0.67 per share, $0.12 better than the Capital IQ Consensus Estimate of ($0.79). Reports no revenue. Cash and cash equivalents were $214.7 million as of June 30, 2015.

  • Commentary: "Looking ahead, we are excited about the potential upcoming milestones for Versartis, including the initiation of the clinical program for somavaratan in adult GHD patients during the second half of the year. There is a significant unmet need for a long-acting therapeutic for the treatment of GHD in pediatric and adult patients. With a solid development strategy in place, supported by a strong capital structure, we are well positioned to complete this development plan for somavaratan and potentially bring such a treatment option to these patients."

8:33 am Central Pacific Financial 'prices' offering of 5.5 mln share on behalf of selling shareholders (CPF) :  

8:32 am Orient Paper reports Q2 EPS of $0.28 vs $0.19 year ago; revs 9.3% to $41.3 mln (no estimates) (ONP) :  

8:31 am Agria's subsidiary PGG Wrightson confirms that the New Zealand Commerce Commission has filed court proceedings in relation to price fixing allegations (GRO) : Co confirmed that the New Zealand Commerce Commission has filed court proceedings in relation to allegations of price fixing by PGW's livestock division. 

8:31 am Progenics Pharm enters into an exclusive worldwide licensing agreement, with Johns Hopkins University for DCFPyL (PGNX) : Co announced that it has entered into an exclusive worldwide licensing agreement with Johns Hopkins University for DCFPyL, a clinical-stage prostate specific membrane antigen (:PSMA)-targeted imaging agent for prostate cancer. PyL, when used in conjunction with high-resolution PET imaging, has shown potential for use in identifying prostate cancer and sites of relapse.

  • Co intends to initiate a Phase 3 program for 1404 for initial diagnosis and early monitoring applications, while initially focusing the development of PyL with high resolution PET imaging to detect and localize recurrent disease in patients who have experienced a biochemical relapse.

8:31 am United Continental names Gerald Laderman as acting CFO (UAL) : Laderman succeeds John Rainey, who has resigned to become chief financial officer at PayPal (PYPL). Laderman most recently has been senior vice president of finance, procurement and treasurer.

8:31 am PayPal names United Continental 's (UAL) John D. Rainey as CFO, effective August 24, 2015 (PYPL) :  

8:30 am Immunomedics receives Orphan Drug Designation from the FDA for Veltuzumab, to treat Immune Thrombocytopenia (IMMU) :  

8:29 am On the Wires (:WIRES) :

  • Overseas Shipholding Group, Inc. (OSGB) announced several changes to the Company's Board of Directors. Joseph Kronsberg, Portfolio Analyst at Cyrus Capital Partners, Chad Valerio, Portfolio Manager at BlueMountain Capital Management and Ty Wallach, Partner at Paulson & Co. Inc., have been appointed to the Company's Board of Directors. The Company also announced that Alexander D. Greene and Nikolaus D. Semaca have agreed to step down from the board effective August 3, 2015
  • Jack Henry & Associates' (JKHY) Jack Henry Banking division announced that Fox Chase Bank selected its SilverLake System to provide enterprise-wide automation services
  • BorgWarner (BWA) announced that it will produce the S-Series turbochargers for Mercedes-Benz Actros heavy-duty trucks, now produced in Brazil
  • Seabridge Gold (SA) announced that it has successfully completed a pilot plant evaluation of a new process for the removal of selenium from waters from its KSM Project located in northwestern BC. In doing so, Seabridge satisfied a key condition of the BC Environmental Assessment Certificate issued on July 30, 2014 which required completion of the pilot plant test within one year of issuance of the certificate
  • WABCO Holdings Inc. (WBC) announced that it has appointed Jon Morrison President for its Americas Business Unit
  • Organovo Holdings, Inc. (ONVO) announced that it has hired Paul Gallant as its General Manager of the in vitro tissue service and product business
  • Tecogen Inc. (TGEN) announced the sale of two InVerde Ultra, INV-100, combined heat and power units for installation in the Findlay Teller apartment complex located in the Crotona East section of the Bronx
  • Intellicheck Mobilisa, Inc. (IDN) announced the Company has been awarded a contract from a major U.S.-based multinational telecommunications corporation to expand Retail ID to an additional 3000 retail locations. The contract has an estimated value of $1.5 million

8:29 am On the Wires (:WIRES) :

  • SanDisk Corporation (SNDK) announced it has reached agreement with SK Hynix, Inc. to modify and extend their intellectual property licensing relationship and enter into a multi-year commercial relationship under which SK Hynix will supply its leading-edge DRAM products to SanDisk. These agreements include a settlement of the trade secret misappropriation suit filed by SanDisk in 2014
  • Presbia PLC (LENS) announced the appointment of Marie Cha as Director of Direct Response Marketing
  • Cooper-Standard Holdings Inc. (CPS) announced the unveiling of two new facilities in China. The co unveiled its second Kunshan facility, a manufacturing and test center, dedicated to fluid transfer and fuel and brake delivery systems, and will host an opening ceremony later this week at its new facility in Shenyang, which will produce sealing systems
  • iPass Inc. (IPAS) announced that it now supports single sign-on with three leading identity management platforms: Okta, OneLogin and Ping Identity
  • TeleCommunication Systems, Inc. (TSYS) announced that it has been awarded a contract extension through January 2021 by the state of Tennessee to provide 9-1-1 management and integration services. As part of its $20 million contract with the state of Tennessee, TCS is renewing all the existing services initially contracted in 2011, as well as providing a cloud-based statewide GIS database management system
  • Global Eagle Entertainment Inc (ENT) announced that it successfully repurchased from certain public warrant holders ~3.0 million warrants in exchange for ~ 1 million shares of its common stock

8:28 am Global Ship Lease to acquire third 8,063 TEU vessel; third sale-and-leaseback agreement provides immediately accretive earnings growth (GSL) :

  • Co announced that it has agreed to acquire the OOCL Ningbo, a 2004-built, 8,063 TEU containership from Orient Overseas Container Line Limited for a purchase price of $53.6 mln.
  • The OOCL Ningbo is expected to deliver in late Sept 2015, subject to the completion of customary additional documentation and closing conditions. Upon delivery, the vessel will be immediately time chartered back to OOCL for a period of 36 to 39 months, at charterer's option, at a gross rate of $34,500 per day, for total contracted revenue of between $37.7 and $40.9 mln.
  • The charter is expected to generate annual EBITDA in excess of $9.4 mln. The purchase price will be settled using cash on hand and a recently-signed $35 mln credit facility with DVB Bank. The facility has a term of up to five years at a rate of Libor plus a margin of 275 bps through November 30, 2018, and Libor plus 325 bps thereafter. With the delivery of the OOCL Ningbo, the Company's fleet will comprise 20 vessels with a total capacity of 90,538 TEU.
  • Ian Webber, Chief Executive Officer of Global Ship Lease, stated, "In completing this third, highly attractive sale-and-leaseback transaction over the last twelve months, we have once again taken a major step forward in expanding our earnings power and diversifying our charter portfolio. Including this transaction, we have now increased our run-rate EBITDA by ~35% through acquisitions alone. In addition, we benefit from increased earnings from our two vessels operating on short-term contracts in a stronger spot market. Furthermore, our new credit facility, with a first class bank in DVB, marks an important step in lowering our cost of capital."

8:28 am S&P futures vs fair value: -2.70. Nasdaq futures vs fair value: -6.80. (:WRAPX) : U.S. equity futures continue holding slim pre-market losses as quarterly earnings continue pouring in.

Although this week will feature another good dose of earnings, the results are unlikely to move the market considering more than 75% of S&P 500 components have already reported their Q2 results.

So far, the health care sector has had the best showing, producing blended earnings growth of 14.9%. On the flip side, the energy sector has registered a 58.2% decline in blended earnings, which was expected due to plunging oil prices.

Similar to equity futures, Treasuries continue holding losses with the 10-yr yield up two basis points at 2.17%.

8:28 am Digital Ally receives an order for 300 FirstVu HD body-worn video cameras from the Southeastern Pennsylvania Transportation Authority, along with FirstVU HD orders from other agencies, during the month of July (DGLY) : The Company says it also received orders from other notable clients in July that add to the more than one thousand agencies that have already deployed the FirstVu HD body-worn camera solution

8:26 am Cedar Fair reports EPS in-line, misses on revs (FUN) : Reports Q2 (Jun) earnings of $1.02 per share, in-line with the Capital IQ Consensus Estimate of $1.02; revenues rose 4.0% year/year to $377.4 mln vs the $382.18 mln consensus.

  • This increase in revenue reflects a 2%, or $0.84, increase in average in-park guest per capita spending, a 1%, or 91,000-visit, increase in attendance, and a 12%, or $4 million, increase in out-of-park revenues, compared with the second quarter of 2014.
  • Cedar Fair remains confident in its long-term business strategy and its ability to generate $500 million, or more, in Adjusted EBITDA by 2018.

8:21 am Team Health Holdings beats by $0.01, beats on revs; guides FY15 revs above consensus (TMH) : Reports Q2 (Jun) earnings of $0.70 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.69; revenues rose 30.0% year/year to $877.9 mln vs the $832.61 mln consensus.

  • Co issues upside guidance for FY15, sees FY15 revs of +24-26% to ~$3.49-3.51 bln from $3.36-3.41 bln vs. $3.41 bln Capital IQ Consensus Estimate. "We continue to target an Adjusted EBITDA margin of between 10.5% and 11.0%."

8:20 am Solera acquires vehicle valuation provider, Autodata B.V; terms not disclosed (SLH) : Autodata B.V. is a provider of vehicle valuation, inventory management and workflow software for automotive dealers and leasing companies in the Netherlands.

8:20 am Mixed Showing from European Sovereigns (BONDX) :

  • Some mixed trading action among European sovereigns despite some generally weak showings from local equity markets

  • Yield Check:
    • Germany, 10-yr Bund: +1 bp at 0.60%
    • U.K., 10-yr Gilt +1 bp to 1.90%
    • France, 10-yr OAT: +1 bp to 0.95%
    • Spain, 10-yr ODE: unch at 1.86%
    • Italy, 10-yr BTP: -1 bp to 1.76%
    • Portugal, 10-yr note: -1 bp at 2.38%
    • Greece, 10-yr note: -12 bps to 11.60%

  • Economic Data
    • U.K.: Nationwide HPI +0.4% month-over-month in July, as expected (prior -0.2%)
    • Spain: Unemployment Change -74,000 (expected -45,600; prior -94,700)
    • Eurozone: June PPI -0.1% month-over-month, as expected (prior 0.0%)

8:16 am IPC Healthcare to be acquired by Team Health (TMH) in all-cash transaction with enterprise value of approx $1.6 bln or $80.25 per share (IPCM) : Team Health (TMH) announced a definitive agreement to acquire IPCM a in an all-cash transaction with an enterprise value of approximately $1.6 billion or $80.25 per share.

  • The boards of directors of both companies have approved the transaction.  
  • TeamHealth expects to realize at least $60 mln of combined cost and identified revenue synergies to be achieved within three years.

8:13 am Trimas misses by $0.01, misses on revs; guides FY15 EPS below consensus (TRS) :

  • Reports Q2 (Jun) earnings of $0.30 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.31; revenues rose 0.1% year/year to $224.9 mln vs the $232.25 mln consensus. 
  • Co issues downside guidance for FY15, sees EPS of $1.15-1.25 vs. $1.43 Capital IQ Consensus Estimate. 
  • "We are pleased to have completed the spin-off of the Cequent businesses - on time and within budget - into Horizon Global during the second quarter. This event represents a major milestone for our company, simplifying and improving the margin profile of our portfolio..."
  • "We are updating our 2015 full year outlook as a result of the recent spin-off and to reflect the intensifying external headwinds we believe will continue in the second half of the year. Accordingly, we now anticipate year-over-year sales growth of up to 2%, as organic and acquisition growth of approximately 10% is expected to be mostly offset by oil price and currency headwinds. We expect full-year 2015 diluted EPS of $1.15 to $1.25 and Free Cash Flow of $30 million to $35 million..."

8:12 am Great Lakes Dredge & Dock misses by $0.02, beats on revs (GLDD) : Reports Q2 (Jun) earnings of $0.05 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.07; revenues rose 29.3% year/year to $238.9 mln vs the $224.83 mln consensus.

Outlook

"Looking forward to the rest of the year, we expect robust revenue and earnings in the dredging segment as fleet utilization will continue to be at an elevated level. We expect the environmental & remediation segment's performance to improve in the second half of the year, likely peaking in the third quarter, and thus we continue to expect to achieve total Company adjusted EBITDA in the range of $97 million to $107 million for the year."

8:10 am Twin Disc misses by $0.06, beats on revs; cautious for FY16 (TWIN) : Reports Q4 (Jun) earnings of $0.04 per share, $0.06 worse than the Capital IQ Consensus of $0.10; revenues fell 8.6% year/year to $67.3 mln vs the $57.11 mln consensus. 

  • The decline in fourth quarter sales was due to lower shipments of land-based transmission systems for the North American oil and gas market, as well as weaker demand in Asia for commercial marine and oilfield transmissions. The decline in Asia is reflective of general economic conditions in the region, along with timing of oilfield related projects in China. Currency translations also had an unfavorable impact on sales totaling $4,043,000 and $8,898,000 for the fiscal 2015 fourth quarter and full year, respectively. Adjusting for constant currency, fiscal 2015 fourth quarter sales declined 3.0 percent, while full year sales increased 4.1 percent compared to the corresponding periods last fiscal year. 
  • "Trends in our markets were strong for most of the year, but during the second half we began facing an increasing number of headwinds such as volatile foreign exchange rates, challenging end markets, and the impact of global oil prices... We quickly responded and made the necessary adjustments to our business as a result of sustained lower oil prices and slower economic growth in several of our regions. As a result, we proactively restructured our North American operations to lower costs and to improve efficiencies. We continue to watch our end markets closely and to look at additional ways to lower expenses and to expand revenues."
  • Management cautious for fiscal 2016 as slowdown in pressure pumping sector continues

8:09 am Holly Energy Partners beats by $0.01, reports revs in-line (HEP) : Reports Q2 (Jun) earnings of $0.34 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.33; revenues rose 11.3% year/year to $83.48 mln vs the $83.50 mln consensus.

8:08 am Ares Capital misses by $0.01, beats on revs (ARCC) : Reports Q2 (Jun) earnings of $0.37 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.38; revenues rose 10.9% year/year to $249.48 mln vs the $244.34 mln consensus.

8:08 am HCP beats by $0.03, beats on revs; guides FY15 FFO above consensus (HCP) : Reports Q2 (Jun) adjusted funds from operations of $0.79 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.76; revenues rose 13.3% year/year to $607.5 mln vs the $571.7 mln consensus.

  • Co issues upside guidance for FY15, sees adjusted FFO of $3.14-$3.20 vs. $3.10 Capital IQ Consensus Estimate.

8:08 am Charter Comm reports Q2 (Jun) results, revs in-line (CHTR) : Reports Q2 (Jun) loss of $1.09 per share, may not be comparable to the Capital IQ Consensus Estimate of $0.30; revenues rose 7.6% year/year to $2.43 bln vs the $2.42 bln consensus. Residential customer relationships increased by 34,000 during the second quarter, versus 27,000 during the second quarter of 2014. For the twelve months ending June 30, 2015, residential customer relationships grew by 4.6%, or 261,000. Charter currently expects 2015 capital expenditures to be approximately $1.7 billion, excluding transition expenditures related to acquisitions. Charter expects its 2015 capital expenditures to be driven by growth in residential and commercial customers along with further spend related to product development.

8:08 am ANI Pharma beats by $0.05, misses on revs; guides FY15 EPS above consensus, revs below consensus (ANIP) : Reports Q2 (Jun) earnings of $0.55 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.50; revenues rose 195.5% year/year to $19.5 mln vs the $20.3 mln consensus.

  • Co narrows guidance for FY15, sees EPS of $2.44-2.50 vs. $2.30 Capital IQ Consensus Estimate, vs. prior guidance of $2.44-2.67; sees FY15 revs of $82-84 mln vs. $89.16 mln Capital IQ Consensus Estimate, vs. prior guidance of $80-88 mln.

8:07 am Harman beats by $0.06, beats on revs (HAR) : Reports Q4 (Jun) earnings of $1.37 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $1.31; revenues rose 16.3% year/year to $1.68 bln vs the $1.56 bln consensus.

  • "With the introduction of industry first innovations in audio, system solutions, and embedded infotainment, particularly in the areas of cybersecurity and driver safety, we continue to deliver superior offerings for our customers. HARMAN is well positioned to capitalize on the increasing demand for the connected car, connected enterprise and connected lifestyle. In 2015, we further diversified our portfolio through strategic acquisitions, thereby strengthening our software capabilities and scaling connected services to fully address the opportunities presented at the intersection of cloud, mobility and analytics."

8:06 am MGM Resorts beats by $0.09, reports revs in-line; announces profit growth plan (MGM) : Reports Q2 (Jun) earnings of $0.19 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus Estimate of $0.10; revenues fell 7.6% year/year to $2.38 bln vs the $2.37 bln consensus. 

  • The Company has announced the Profit Growth Plan today for sustained growth and margin enhancement, focused on the following: 
    • Improve business process -- continue to optimize MGM's scale for greater efficiency and lower cost throughout our business
    • Drive revenue generation -- identify areas of opportunity to organically drive incremental revenue growth. 
    • The Profit Growth Plan includes a significant number of opportunities to enhance our business operations. The plan is expected to result in $300 million of annualized Adjusted EBITDA benefit. The Profit Growth Plan commenced in July 2015 and it is expected to begin to show results as early as the second half of 2015 and be fully realized by the end of 2017. 
  • Casino revenue related to wholly owned domestic resorts increased 5% compared to the prior year quarter due to a 4% increase in table games volume and a 7% increase in slots volume. 
  • Table games hold percentage in the second quarter of 2015 was 21.4% compared to 21.3% in the prior year quarter. 
  • Rooms revenue increased 6% compared to the prior year quarter with Las Vegas Strip REVPAR up 6%

8:05 am Exxon Mobil will expand the U.S. domestic crude processing capacity at its Beaumont Refinery (XOM) : The co announced it will add flexibility to process light crudes at its Beaumont refinery, increasing production capacity by approximately 20,000 barrels per day. This expansion will further strengthen ExxonMobil's integrated downstream portfolio in Southeast Texas.

8:05 am CB Richard Ellis acquires PKF Consulting; terms not disclosed (CBG) : The co announced that it has acquired PKF Consulting Inc. (PKF Canada), an advisory, consulting and research firm in Canada specializing in the Canadian hospitality and tourism industries.

8:05 am Insys Therapeutics confirms it was granted orphan drug designation for its pharmaceutical cannabidiol candidate for the treatment of infantile spasms by the FDA (INSY) : Insys expects that its new, DEA-inspected facility in Round Rock, Texas, will enable it to manufacture ample quantities of CBD for its research and commercial plans. 

8:04 am Lincoln Educational Services completes a new $45 million term loan facility, to replace its existing $20 mln secured revolving credit facility (LINC) :  

8:04 am Alaska Air reports its July 2015 operational results, showing that on a combined basis, Air Group reported a 6.4 % increase in traffic on a 6.9 % increase in capacity (ALK) :  

8:04 am Kellogg reports EPS in-line, revs in-line; reaffirms full-year currency-neutral comparable 2015 guidance (K) : Reports Q2 (Jun) earnings of $0.92 per share, in-line with the Capital IQ Consensus Estimate of $0.92; revenues fell 5.5% year/year to $3.48 bln vs the $3.47 bln consensus. The Asian, Latin American, and European Snack businesses posted currency-neutral comparable net sales growth and the North American business benefited from improving trends.

  • Reaffirmed previous guidance for currency-neutral comparable net sales, operating profit, and earnings per share in 2015; the company also reaffirmed guidance for full-year cash flow. 
    • Currency-neutral comparable net sales are expected to remain approximately unchanged year-over-year. 
    • Kellogg expects full-year 2015 currency-neutral comparable operating profit to decrease at 2-4%. 
    • ull-year 2015 currency-neutral comparable earnings per share are anticipated to be in a range between -2% and approximately unchanged. 
    • The estimates for currency-neutral comparable operating profit and currency-neutral comparable earnings per share include a negative impact of between three and four percentage points from the rebasing of incentive compensation for 2015. 

8:04 am Glatfelter Co reports EPS in-line, misses on revs (GLT) : Reports Q2 (Jun) earnings of $0.04 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of $0.04; revenues fell 7.7% year/year to $410.8 mln vs the $436.77 mln consensus.

Outlook:

  • Composite Fibers' shipping volumes are expected to be slightly higher in Q3 than Q2 of 2015. Selling prices and raw material and energy prices are expected to be in-line with the second quarter.
  • Shipping volumes for Advanced Airlaid Materials in Q3 of 2015 are expected to be 5% higher than Q2. Average selling prices are expected to decline slightly in the third quarter compared to Q2 and raw material prices are expected to be in-line.
  • For Specialty Papers, the Co expects shipping volumes in the third quarter of 2015 to increase ~5% compared with the second quarter reflecting normal seasonal patterns.
  • Overall, the Co expects selling prices to decline slightly in Q3 compared to Q2 due to continued pressure on commodity products. Input costs are expected to be in-line with Q2 of 2015. The Co also expects maintenance spending to decrease by $31 mln reflecting more normal patterns of maintenance expense.

8:04 am Zebra Tech acquires the ITR Group's mobile consulting and software development firm, ITR Mobility and its mobile platform iFactr (ZBRA) : ITR Mobility clients with solutions in the enterprise mobile space, from modernizing rugged deployments to creating native cross-platform apps. iFactr offers the only migration path for legacy Windows Mobile/CE.NET compact framework applications to work on Windows Embedded 8 Handheld, iOS, and Android devices without a complete rewrite of the applications.

8:03 am Furmanite beats by $0.05, misses on revs (FRM) : Reports Q2 (Jun) earnings of $0.14 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.09; revenues fell 11.4% year/year to $129.6 mln vs the $148 mln consensus. 

  • Co also appointed Jeffery Davis as Interim Executive Chairman, effective immediately. In connection with this appointment, Davis has resigned from his roles of Lead Independent Director and member of the Audit Committee. Davis, who joined the Board in May 2015, is the retired Chairman and CEO of the Brock Group

8:03 am Momenta Pharma beats by $0.25, beats on revs (MNTA) : Reports Q2 (Jun) loss of $0.04 per share, $0.25 better than the Capital IQ Consensus Estimate of ($0.29); revenues rose 310.0% year/year to $44.9 mln vs the $22.93 mln consensus. The big increase in revenue was primarily due to product and milestone revenues relating to the approval and launch of Glatopa (glatiramer acetate injection).

  • "Momenta reached a significant milestone in 2Q15 with the launch of Glatopa, our second approved complex generic product and the first and only generic version of daily COPAXONE available on the market. We are pleased with Sandoz's execution of the Glatopa launch and encouraged by the strong initial uptake seen thus far."

8:03 am MedAssets discloses it received verbal notification on July 30, 2015 and written confirmation on August 4, 2015, from Tenet Healthcare (THC) that its supply chain solutions agreement with Tenet will not be renewed following its scheduled expiration on January 31, 2016; expects no change to its 2015 financial outlook given that the transition is expected to occur in early 2016 (shares halted) (MDAS) : The co notes that at the time of the notification, it was in what it believed were exclusive and advanced contract negotiations, and was surprised to learn of Tenet's (THC) decision to not renew the SCS Agreement. The SCS Agreement includes the provision of group purchasing and outsourced procurement services, and related supply chain products. Approximately 215 of the Company's outsourced procurement services employees based at Tenet facilities will transition to Tenet's employment on or by January 1, 2016.

  • Tenet has indicated that the SCS Agreement notification does not impact other contractual agreements the Company has with Tenet, and it intends to continue to utilize MedAssets' Revenue Cycle Technology products covered under separate contractual agreements. 
  • The Company expects no change to its 2015 financial outlook given that the transition is expected to occur in early 2016. The estimated 2015 net revenue from products and services impacted under the SCS Agreement represents approximately $39 to $44 million, or approximately 5-to-6 percent of the Company's recent guidance for 2015 net revenue. 
  • The SCS Agreement is expected to contribute approximately $18 to $22 million to the estimated 2015 operating income, before allocation of segment and corporate indirect expenses, in the Spend and Clinical Resource Management segment. Based on MedAssets' revenue recognition policy, it is expected the Company will continue to recognize a declining amount of revenue in early 2016 following the contract end date. 
  • As previously disclosed, MedAssets is engaged in a 'multi-year transformation and value creation plan', and is assessing, analyzing and evaluating all aspects of its business to improve growth and profitability while maintaining the highest level of customer service and satisfaction, and creating shareholder value. As part of its full review and in consideration of this development, the Company will work to align its operating cost structure to be commensurate with expected future net revenue, while enabling it to continue to deliver a high level of customer service and support. These actions may result in expense reductions, restructuring charges, and/or investments in products or services to help drive long-term growth.

8:03 am Louisiana-Pacific beats by $0.04, misses on revs (LPX) : Reports Q2 (Jun) loss of $0.08 per share, $0.04 better than the Capital IQ Consensus Estimate of ($0.12); revenues fell 5.0% year/year to $493 mln vs the $502.16 mln consensus.

  • Adjusted EBITDA for the second quarter was $16 million compared to $26 million in the second quarter of 2014.

  • Outlook: "With reported housing starts in June at 1.174 million and permits at 1.343 million, we should see an acceleration of building activity in the second half of this year. Persistent labor shortages and the possibility of interest rate increases later in the year could dampen forecasted growth in the short term but increasing household formations and the need for housing should support continued building activity."

8:03 am Vaalco Energy's Board authorizes a 5.8 mln share repurchase program (EGY) :  

8:02 am Azure Midstream Partners announces a growth expansion project for its Holly Gas Gathering System (AZUR) : Co and the 100% owner of the general partner of Azure Midstream Partners, LP, announced the beginning of a growth expansion project within Azure's core Holly Gas Gathering System. Construction has commenced on Azure's Holly Production Optimization Project, which will extend the core Holly footprint and reduce line pressures across Holly, maximizing the utilization of the 2.1 Bcf/d capacity system. Reducing pressure on Holly from over 1,200 pounds per cubic inch to 500 pounds per cubic inch enhances volume deliverability from new and existing production and enhances Azure's competitiveness in attracting additional volumes across its Holly service area. Co expects the total cost of the project to be approximately $24 mln and to be materially accretive to Azure's 2015 earnings and beyond.

8:02 am TICC Capital's Ticc Management will be acquired by Benefit Street Partners; terms not disclosed (TICC) : Completion of the Transaction is expected to occur in the fourth quarter of 2015.

8:01 am CAI Intl appoints Deborah Ascheim, M.D. as its Chief Medical Officer (CAPR) : Co announced the appointment of Deborah D. Ascheim, M.D., to the position of Chief Medical Officer. Dr. Ascheim, a heart failure cardiologist, has significant experience directing national and international clinical trials, funded by both the NIH and industry sponsors. She was most recently Professor of Health Policy and Medicine and was the director of the International Center for Health Outcomes and Innovation Research's Clinical Trial Unit at the Icahn School of Medicine at Mount Sinai in New York.

8:00 am Now Announces Challenger Industries Acquisition; terms not dsiclosed (DNOW) : Co has entered into an agreement to purchase the business of Challenger Industries, Inc. Terms of the all-cash transaction, which remains subject to customary closing conditions, including regulatory approval, were not disclosed.

Challenger Industries, Inc. is a pipe, valves and fittings supplier for the downstream, midstream and upstream energy markets. The company manages a distribution business of approximately 11 sales and operations locations across the United States and employs approximately 160 employees.

7:56 am On the Wires (:WIRES) :

  • PAR Technology Corporation (PAR) announced that Pita Pit USA has selected PAR's Brink POS software and service solutions for their 250 restaurants throughout the country
  • After completing its quadrennial international invitation to tender, the European Parliament awarded a contract worth up to 196 million euros to CGI (GIB). Under the contract, CGI will lead a pan-European consortium that includes Luxembourg-based Intrasoft International S.A. The contract aims to effectively contribute to the development and maintenance of the European Parliament's information production systems
  • Jacobs Engineering Group Inc. (JEC) announced that it received a contract to provide engineering services for a major airside design program at Melbourne Airport in Australia. Company officials did not disclose the contract value. Under the terms of the contract, Jacobs is delivering the earthworks, civil infrastructure, pavement, master grading and drainage design for the schematic and detailed design phases of the Taxiway Zulu and Terminal 2 Aprons Project

7:55 am S&P futures vs fair value: -3.90. Nasdaq futures vs fair value: -8.60. (:WRAPX) : U.S. equity futures trade near their pre-market lows amid cautious action overseas. The S&P 500 futures hover four points below fair value after trading within a nine-point range through the night.

Today's economic data will be limited to the Factory Orders report for June, which will be released at 10:00 ET (Briefing.com consensus 1.8%).

Treasuries hold slim losses with the 10-yr yield up one basis point at 2.16%.

In U.S. corporate news of note:

  • Coach (COH 31.50, +1.07): +3.5% after beating earnings and revenue estimates. 
  • Microchip Technology (MCHP 42.01, -0.78): -1.8% after missing estimates and guiding below analyst expectations. 
  • Regeneron Pharmaceuticals (REGN 585.00, +30.73): +5.5% following above-consensus results. 
  • Sprint (S 3.50, +0.16): +3.6% after beating bottom-line estimates on light revenue.
Reviewing overnight developments:
  • Asian markets ended mixed. China's Shanghai Composite +3.7%, Japan's Nikkei -0.1%, and Hong Kong's Hang Seng settled flat. 
    • In economic data: 
      • Japan's Monetary Base +32.8% year-over-year (expected 32.2%; prior 34.2%) and Average Cash Earnings -2.4% year-over-year (expected +0.9%; prior +0.7%)
      • South Korea's July CPI +0.2% month-over-month (expected +0.2%; prior 0.0%); +0.7% year-over-year (expected +0.7%; prior +0.7%) 
      • Australia's June Trade Balance AUD -2.933 bln (expected AUD -3.100 bln; prior AUD -2.677 bln) as Exports +3.0% month-over-month (prior +1.0%) and Imports +4.0% month-over-month (prior -4.0%). Separately, June Retail Sales +0.7% month-over-month (expected +0.5%; prior +0.4%); +0.8% quarter-over-quarter (expected +0.4%; prior +0.6%) 
    • In news: 
      • The Reserve Bank of Australia left its cash rate unchanged at 2.00%, as expected The Reserve Bank of India also left its key repo rate unchanged at 7.25%, as expected
  • Major European indices trade lower across the board. UK's FTSE -0.2%, Germany's DAX -0.2%, and France's CAC -0.4%. Elsewhere, Italy's MIB -1.3% and Spain's IBEX -1.2%
    • Economic data was limited: 
      • Eurozone June PPI -0.1% month-over-month, as expected; -2.2% year-over-year, as expected 
      • UK's July Construction PMI fell to 57.1 from 58.1 (expected 58.4) 
      • Spain's Unemployment Change -74,000 (expected -45,600; prior -94,700) 
    • Among news of note: 
      • Greek banks have faced continued heavy selling pressure following yesterday's re-opening of the Athens Stock Exchange. Meanwhile, the Athens General Index remains lower by 1.7% after being down as much as 4.9% earlier.

7:55 am Healthsouth announces a $300 mln private offering of 5.75% senior notes due 2024 (HLS) : Co intends to use the net proceeds from this private offering, along with cash on hand and certain borrowings under its senior secured credit facility, to fund the Company's previously announced acquisition of the operations of Reliant Hospital Partners, LLC and affiliated entities and to pay fees and expenses related to the Reliant acquisition, which is expected to close in the fourth quarter of 2015

7:44 am Letting Some Air Out of Treasuries (BONDX) :

  • Treasuries are under some modest selling pressure following a big run that has seen the yield on the 10-yr note come down 30 basis points since mid-July to 2.15%.

  • Potential exists for a turnaround today, however, as global equity markets remain on the weak side of things.  China's Shanghai Composite (+3.7%) is a notable exception having rallied amid media reports that regulators have taken further steps to curb short selling.

  • Yield Check:
    • 2-yr: unch at 0.67%
    • 5-yr: +1 bp at 1.53%
    • 10-yr: +1 bp at 2.16%
    • 30-yr: +1 bp at 2.87%

  • Commodity Check
    • WTI crude futures +1.3% at $45.77/bbl
    • Gold +0.2% at $1091.20/troy oz.
    • Copper +0.7% at $2.36/lb

  • Central Bank Action
    • Reserve Bank of Australia left key cash rate unchanged at 2.00%, as expected
    • Reserve Bank of India left key repo rate unchanged at 7.25%, as expected

  • International Data of Note
    • Japan: Monetary Base +32.8% year-over-year (prior +34.2%)
    • Australia: June Retail Sales up stronger than expected 0.7% month-over-month (prior +0.4%)
    • U.K.: Nationwide HPI +0.4% month-over-month in July, as expected (prior -0.2%)
    • Spain: Unemployment Change -74,000 (expected -45,600; prior -94,700)
    • Eurozone: June PPI -0.1% month-over-month, as expected (prior 0.0%)

  • U.S. Data Today
    • June Factory Orders (10:00 a.m. ET): Briefing.com consensus +1.8% (prior -1.0%)

7:43 am Oil prices begin the day higher; other energy up as well (:COMDX) : In current trade:

  • Sept WTI crude oil is +1.5% at $45.86/barrel
  • Brent crude +1.6% at $50.33/barrel
  • Sept natural gas +1.9% at $2.80/MMBtu
  • RBOB gasoline +1.4% at $1.70/gallon
  • Heating oil +1.7% at $1.56/gallon

7:42 am Parker-Hannifin misses Q4 estimates; guides FY16 EPS below consensus, revs in-line (PH) : Reports Q4 (Jun) earnings of $1.73 per share, ex-$0.30 per share from a higher effective tax rate due to changes in the geographic mix of pre-tax profits and discrete items booked in the quarter, vs. the Capital IQ Consensus of $1.88; revenues fell 10.8% year/year to $3.15 bln vs the $3.18 bln consensus, reflecting the effect of currency rate changes and weak end market demand. Orders fall 9%.

  • Co issues guidance for FY16, sees EPS of $6.65-7.35 vs. $7.74 Capital IQ Consensus Estimate; sees FY16 revs down slightly from $12.71 bln, excluding non-recurring items, vs. $12.6 bln Capital IQ Consensus Estimate.

7:40 am Warren Resources beats by $0.24, reports revs in-line (WRES) : Reports Q2 (Jun) earnings of $0.03 per share, excluding non-recurring items, $0.24 better than the Capital IQ Consensus Estimate of ($0.21); revenues fell 25.1% year/year to $26.2 mln vs the $25.99 mln consensus. 

  • Net gas production was 7.7 Bcf in the second quarter of 2015 compared with 1.6 Bcf (18 Mmcf/d) in the second quarter of 2014, and 5.9 Bcf (66 Mmcf/d) in the first quarter of 2015.

7:38 am Vishay misses by $0.03, misses on revs; guides Q3 revs below consensus (VSH) : Reports Q2 (Jun) earnings of $0.20 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus Estimate of $0.23; revenues fell 8.0% year/year to $590.5 mln vs the $610.4 mln consensus. Co issues downside guidance for Q3, sees Q3 revs of $560-600 mln vs. $607.68 mln Capital IQ Consensus Estimate. Reiterates FY15 Free Cash Flow expectations of 'substantially over $100 mln'.

7:38 am Affimed Therapeutics misses by $0.03, misses on revs (AFMD) : Reports Q2 (Jun) loss of 0.19 per share, 0.03 worse than the Capital IQ Consensus Estimate of (0.16); revenues rose 221.7% year/year to 2.21 mln vs the 2.36 mln consensus.

  • Revenue for the second quarter of 2015 was 2.2 million compared to 0.7 million for the second quarter of 2014. The revenue in the second quarter of 2015 was mainly attributable to revenue recognition upon achievement of milestones pursuant to the Leukemia & Lymphoma Society (:LLS) collaboration and provision of research and development services provided to Amphivena.

7:38 am Health Care REIT and the Canada Pension Plan Investment Board form a 45%/55% joint venture to hold a portfolio of medical office buildings in Southern California (HCN) : The joint venture will initially own a 50.5% interest in the portfolio and the seller, who contributed the portfolio in exchange for a mix of operating partnership units and cash, will retain a 49.5% ownership stake. It is expected that the joint venture's stake will increase to 100% if/when the seller converts their operating partnership units into HCN stock or cash. The entire portfolio is valued at $449 million.

  • The portfolio comprises eight medical office buildings totalling 437,875 square feet, with the majority of assets located within the Golden Triangle district of Beverly Hills, California, a premier medical office market with attractive supply and demand characteristics. The remainder of the portfolio's assets are located in the San Diego and Los Angeles markets.

7:37 am Drew Industries misses by $0.09, misses on revs (DW) : Reports Q2 (Jun) earnings of $0.85 per share, excluding non-recurring items, $0.09 worse than the Capital IQ Consensus Estimate of $0.94; revenues rose 12.5% year/year to $362.08 mln vs the $375.55 mln consensus.

7:37 am Och-Ziff Capital beats by $0.04 (OZM) : Reports Q2 (Jun) earnings of $0.18 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.14.

7:36 am Soligenix announces it has received Orphan Drug Designation from the European Commission for SGX301, to treat Cutaneous T-Cell Lymphoma (SNGX) :  

7:36 am Lexington beats by $0.01, beats on revs; guides FY15 FFO in-line (LXP) : Reports Q2 (Jun) funds from operations of $0.27 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.26; revenues rose 4.6% year/year to $110.3 mln vs the $104.55 mln consensus.

  • Co raised guidance for FY15 by $0.01, sees FFO of $1.02-1.06, ex-items, vs. $1.05 Capital IQ Consensus Estimate, up from $1.01-1.05.

7:35 am Sprint beats by $0.04, misses on revs (S) : Reports Q2 (Jun) loss of $0.01 per share, $0.04 better than the Capital IQ Consensus Estimate of ($0.05); revenues fell 8.7% year/year to $8.03 bln vs the $8.33 bln consensus. 

  • The company recorded a record low Sprint platform postpaid churn rate of 1.56 percent -- a 49 basis point improvement year-over-year. 
  • Additionally, the company saw strong improvement in the more profitable phone customers. Postpaid net additions of 310,000 compared to net losses of 181,000 in the prior year quarter. 
  • Total net additions of 675,000 compared to net losses of 220,000 in the prior year quarter. The 895,000 year-over-year improvement was mostly driven by fewer postpaid phone customer losses.
  • As a result of improved customer trends, a greater reduction in operating expenses, and a higher mix of sales on device financing options, the company is raising its outlook for fiscal year 2015 Adjusted EBITDA from its previous expectation of $6.5 to $6.9 billion to a range of $7.2 and $7.6 billion, excluding any accounting impacts from the potential lease financing.
  • The company expects fiscal year 2015 cash capital expenditures to be approximately $5 billion, excluding the impact of leased devices sold through indirect channels. This compares to the previous expectation of accrued capital expenditures of approximately $5 billion.

7:35 am Unit beats by $0.11, misses on revs (UNT) : Reports Q2 (Jun) loss of $0.12 per share, $0.11 better than the Capital IQ Consensus Estimate of ($0.23); revenues fell 47.1% year/year to $214.4 mln vs the $223.44 mln consensus. 

  • Total equivalent production for the quarter was 5.1 million barrels of oil equivalent (MMBoe), an increase of 9% over the second quarter of 2014 and a 1% decrease from the first quarter of 2015. 
  • Liquids (oil and NGLs) production represented 45% of total equivalent production for the quarter. 
  • Oil production for the quarter was 10,418 barrels per day, essentially unchanged from the second quarter of 2014 and a decrease of 15% from the first quarter of 2015.

7:35 am Marinus Pharmaceuticals reports Q2 EPS of ($0.37) vs ($0.51) estimate; details upcoming milestones (MRNS) :

  • "We are in the final stages of enrolling both our open-label Phase 2 clinical trial in children with PCDH19 female epilepsy and our Phase 3 clinical trial in adults with focal onset seizures. Additionally, we continue to work towards completing requisite preclinical and manufacturing activities to ready our ganaxolone IV dose form for the clinic." 
  • Upcoming Milestones - Complete enrollment in ongoing Phase 3 clinical trial evaluating ganaxolone in adults with drug-resistant focal onset epileptic seizures and announce top-line data in the first quarter of 2016. Announce initial data from Phase 2 proof-of-concept, open-label clinical trial in PCDH19 female pediatric epilepsy. Complete preclinical and manufacturing activities for ganaxolone IV and announce results and first stage clinical plans. Complete Phase 2 proof-of-concept investigator-sponsored clinical trial evaluating ganaxolone as a treatment for behaviors in Fragile X Syndrome later this year, with top-line data released early 2016.

7:34 am Celgene announces the pricing of its offering of $8 bln in senior unsecured notes (CELG) : Co priced $8 bln in senior unsecured notes. Of the notes:

  • $1 billion will mature in 2018 and will bear interest at an annual rate of 2.125 % 
  • $1.5 billion will mature in 2020 and will bear interest at an annual rate of 2.875 %
  • $1 billion will mature in 2022 and will bear interest at an annual rate of 3.550 %
  • $2.5 billion will mature in 2025 and will bear interest at an annual rate of 3.875 % 
  • $2 billion will mature in 2045 and will bear interest at an annual rate of 5 %
Co expects to use the net proceeds from the offering to finance a portion of the acquisition of Receptos, Inc. and the remainder for general corporate purposes, which may include, without limitation, further development of Celgene's clinical and pre-clinical programs, capital expenditures, general corporate development activities, meeting working capital needs, share repurchases of Celgene's common stock and repayment of some or all of Celgene's outstanding commercial paper

7:33 am Lincoln Electric acquires industrial automation products and robotic systems manufacturer, Rimrock Holdings Corporation; terms not disclosed (LECO) : Rimrock Corporation designs and manufactures automated spray systems and turnkey robotic systems for the die casting, foundry and forging markets. Annual sales are ~$40 mln

7:33 am Brookfield Property Partners reports Q2 results (BPY) : Reports Q2 (Jun) funds from operations of $0.28 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.27.

  • Company FFO was $198 million ($0.28 per unit) for the quarter ended June 30, 2015 compared with $193 million ($0.28 per unit) for the same period in 2014.
  • The increase in Company FFO for the quarter was driven by acquisition activity over the previous 12 months, notably the remaining interest in Brookfield Office Properties Inc. ("BPO") and its triple net lease platform, in addition to positive same-store growth in our office and retail portfolios.
  • The increase was partly offset by the impact of foreign exchange rates and interest expense on assets which are not yet fully contributing to income.

7:32 am Applied Industrial acquires C-Class consumables distributor, Atlantic Fasteners; terms not disclosed (AIT) : Founded in 1981, Atlantic Fasteners and its 48 associates serve the New England region with industrial fasteners and related industrial supplies. The company also specializes in vendor managed inventory systems.

7:32 am Ardmore Shipping reports upside Q2 results (ASC) :

  • Co reports Q2 EPS of $0.30 vs $0.26 Capital IQ Consensus Estimate; revs 190.5% y/y to $39.3 mln vs $29.9 mln Captial IQ Consensus Estimate.
  • "The charter market has continued to strengthen year-to-date, with momentum building through July and into August in an otherwise quiet time of the year for the product tanker market. We believe that demand growth will continue to be supported by the new oil market, characterized by heightened oil demand, storage inefficiencies, and long-haul oil trading activity, as well as the ongoing fundamental shift in refinery capacity to oil producing nations, which in itself is significantly boosting ton-mile demand. In the meantime, MR supply growth is moderate relative to demand, and the order book is shrinking rapidly with deliveries far exceeding new orders."

7:32 am Health Care REIT beats by $0.01, beats on revs; reaffirms FY15 FFO guidance (HCN) : Reports Q2 (Jun) funds from operations of $1.09 per share, $0.01 better than the Capital IQ Consensus Estimate of $1.08; revenues rose 15.8% year/year to $957.2 mln vs the $929.98 mln consensus.

  • Co reaffirms guidance for FY15, sees FFO of $4.25-4.35 vs. $4.33 Capital IQ Consensus Estimate.

7:31 am CME Group reports July 2015 average volume of 12.8 million contracts per day, up 5% Y/Y (CME) : Co announced that July 2015 volume averaged 12.8 million contracts per day, up 5 % Y/Y. Total volume was more than 282 million contracts, of which 87 % was traded electronically. Options volume in July averaged 2.9 million contracts per day, up 22 % Y/Y, with electronic options growing 36 % over the same period.

7:31 am Baxalta: Shire (SHPG) proposes to acquire Baxalta for ~$45.23/share in stock; says Baxalta has declined to engage in substantive discussions (Shire halted) (BXLT) : Shire plc (SHPG) confirms that it made a proposal to Baxalta on July 10, 2015, to combine the companies in an all-stock transaction pursuant to which Baxalta shareholders would receive, for each Baxalta share, 0.1687 Shire ADRs. The proposal implies a value of $45.23 per Baxalta share and represents a significant premium of 36% over Baxalta's stock price as of August 3, 2015. Baxalta has declined to engage in substantive discussions regarding the proposal. 

  • Shire says the proposed combination would generate immediate shareholder value and accelerate the growth plans of both Shire and Baxalta. Together, Baxalta and Shire are projected to deliver product sales of $20 billion in 2020, advancing the combined pipeline and bringing innovative new therapies to market for patients with rare, often life-threatening, diseases and conditions.
  • The proposed transaction would be structured as an all-stock transaction to maintain the tax-free nature of Baxalta's July 1, 2015, spinoff from Baxter. Baxalta shareholders would own approximately 37% of the combined Shire group. 
  •  The Chairman of Shire continued to say, "Our Board unanimously supports this combination with Baxalta. Following thorough analysis and discussion, our Board concluded that this proposed transaction will deliver significant value for shareholders. We urge Baxalta to engage with us to create a stronger combined company that will benefit all of our stakeholders."

7:30 am Endocyte appoints Alison Armour as its Chief Medical Officer (ECYT) : Co announced that Alison A. Armour, M.B., Ch.B., B.Sc., M.Sc., M.D., MRCP., FRCR, has been appointed as chief medical officer. Prior to joining the co, Dr. Armour served as vice president of oncology at Novartis and GSK, where she led the global strategic TYKERB development team in breast cancer and was accountable for a large matrix team composed of clinical, medical, regulatory, statistics, medical affairs, science and commercial colleagues based in multiple sites in the US, UK and Japan.

7:29 am Transdigm Group misses by $0.01, misses on revs; guides FY15 EPS above consensus, revs below consensus (TDG) : Reports Q3 (Jun) earnings of $2.26 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $2.27; revenues rose 13.2% year/year to $691.4 mln vs the $720.79 mln consensus. Co issues mixed guidance for FY15, sees EPS of $8.64-8.78, excluding non-recurring items, vs. $8.62 Capital IQ Consensus Estimate; sees FY15 revs of $2.688-2.710 bln vs. $2.72 bln Capital IQ Consensus Estimate.

7:29 am Westlake Chemical Partners reports EPS in-line, misses on revs (WLKP) : Reports Q2 (Jun) earnings of $0.39 per share, in-line with the Capital IQ Consensus Estimate of $0.39; revenues fell 52.0% year/year to $251.7 mln vs the $266.32 mln consensus.

  • Net sales at Westlake Chemical OpCo LP ("OpCo") for the period were $251.7 million.
  • This represents an increase in net income of $1.9 million, or $0.08 per unit when compared to the first quarter of 2015.
  • This increase was primarily driven by the acquisition in April 2015 of an additional 2.7% limited partner interest in OpCo.
  • OpCo's sales agreement with Westlake Chemical Corporation is designed to provide for stable and predictable cash flows.
  • The sales agreement provides that 95% of OpCo's ethylene production is sold to Westlake Chemical Corp for a cash margin of $0.10 per pound, net of operating costs, maintenance capital expenditures and reserves for future turnaround expenditures.

7:29 am Exterran beats by $0.03, reports revs in-line (EXLP) : Reports Q2 (Jun) earnings of $0.33 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.30; revenues rose 15.2% year/year to $167.8 mln vs the $168.31 mln consensus.

7:26 am United Fire & Casualty reports Q2 Operating income per diluted share of $0.57 vs $0.35 year ago; revs 10% to $255.92 mln (no estimates); on track to meet our 2020 Vision objectives (UFCS) : For the quarter, consolidated net premiums earned increased 13.6 percent due to both prior rate increases in our commercial lines of business and new business, and our total revenues increased 10.0 percent.

7:26 am Norwegian Cruise Line beats by $0.02, reports revs in-line; guides Q3 EPS in-line; guides FY15 EPS in-line (NCLH) : Reports Q2 (Jun) earnings of $0.75 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.73; revenues rose 41.7% year/year to $1.09 bln vs the $1.09 bln consensus. Co issues in-line guidance for Q3, sees EPS of $1.30-1.35 vs. $1.35 Capital IQ Consensus Estimate. Co issues in-line guidance for FY15, sees EPS of $2.80-2.90 vs. $2.86 Capital IQ Consensus Estimate. The strong booking environment that began with the 2015 wave season has continued into the second and third quarters with volumes continually outpacing the same time last year. Looking to 2016, resurgence in Caribbean demand, combined with the strong booking environment, has resulted in 30% more booked revenue compared to the same time last year on a capacity increase of approximately 11%.

7:24 am On the Wires (:WIRES) :

  • Antares Pharma (ATRS) announced that the first patients have been enrolled in a double-blind, multiple-dose, 26-week safety and pharmacokinetic study of QuickShot Testosterone administered subcutaneously once each week to adult males with hypogonadism. ~70 patients will be needed to complete collection of 26 weeks of safety data
  • Daqo New Energy Corp. (DQ) announced that the Company's board of directors has approved its Phase 3A expansion project, which is expected to increase the polysilicon production capacity at the Company's Xinjiang manufacturing site from the current level of 12,150 metric tons to 18,000 MT. The Company currently expects capital expenditures for the expansion project to be RMB620 million
  • Heidrick & Struggles (HSII) announced the addition of Gregg McDonald to its Atlanta office. McDonald will be joining as a Partner in the Industrial Practice and will lead the firm's Automotive Practice in the Americas
  • Global Payments Inc. (GPN) announced that it has completed the formation of its joint venture with Bank of the Philippine Islands
  • BlueLinx Corporation (BXC) announced the company will now offer products from Dakeryn Industries in its Denver Sales District
  • Evogene Ltd. (EVGN) announced a key milestone in its insect control program with the successful completion of the first computational discovery round for microbial genes with insecticidal properties
  • comScore, Inc. (SCOR) announced that its comScore validated Campaign Essentials offering is now available to U.S. Google (GOOG) DoubleClick customers across DoubleClick Digital Marketing and DoubleClick for Publishers

7:24 am Bloomin' Brands beats by $0.01, reports revs in-line; reaffirms FY15 EPS guidance, guides FY15 revs in-line; authorizes additional $100 mln buyback (BLMN) : Reports Q2 (Jun) earnings of $0.28 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.27; revenues fell 1.1% year/year to $1.1 bln vs the $1.1 bln consensus. Comparable sales for Company-owned U.S. concepts increased 2.0%.

  • Co issues guidance for FY15, reaffirms EPS of $1.27 vs. $1.28 Capital IQ Consensus Estimate; sees FY15 revs of $4.43 bln vs. $4.48 bln Capital IQ Consensus Estimate. 
    • Blended U.S. comparable restaurant sales growth is expected to be approximately 1.5% versus prior guidance of "at least" 1.5%. This change is primarily due to lower sales expectations at Bonefish.
  • The Company's Board of Directors approved a new $100.0 million share repurchase program.

7:24 am Alere reports EPS in-line, revs in-line; guides FY15 EPS in-line, revs in-line (ALR) : Reports Q2 (Jun) earnings of $0.54 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of $0.54; revenues fell 2.8% year/year to $629.2 mln vs the $625.21 mln consensus.

  • Co issues in-line guidance for FY15, sees EPS of $2.40-2.50 vs. $2.43 Capital IQ Consensus Estimate; sees FY15 revs of $2.5-2.6 bln vs. $2.56 bln Capital IQ Consensus Estimate.

7:23 am Scripps Networks Interactive beats by $0.21, reports revs in-line; guides FY15 revs above consensus (SNI) : Reports Q2 (Jun) earnings of $1.47 per share, excluding non-recurring items, $0.21 better than the Capital IQ Consensus Estimate of $1.26; revenues rose 3.4% year/year to $732.1 mln vs the $729.03 mln consensus.

  • Co issues upside guidance for FY15, sees FY15 revs of +12% to ~$2.984 bln vs. $2.85 bln Capital IQ Consensus Estimate.

7:23 am Travelport Worldwide beats by $0.09, reports revs in-line; reaffirms FY15 guidance at high end of range (TVPT) :

  • Reports Q2 (Jun) earnings of $0.29 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus Estimate of $0.20; revenues rose 0.5% year/year to $554 mln vs the $553.8 mln consensus; 
    • 15% growth in Asia Pacific and RevPas up 4% to $6.00. 
  • The third quarter of 2015 has started well and momentum across the business remains positive.
  • Co reaffirms guidance for FY15, sees EPS of $0.72-0.84, excluding non-recurring items, vs. $0.81 Capital IQ Consensus Estimate; sees FY15 revs of $2.16-2.24 bln vs. $2.21 bln Capital IQ Consensus Estimate. "Our strong second quarter performance means that we now expect full year earnings to be closer to the top end of our guidance ranges for 2015.

7:22 am Targa Resources Partners beats by $0.03, misses on revs (NGLS) : Reports Q2 (Jun) earnings of $0.27 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.24; revenues fell 15.1% year/year to $1.7 bln vs the $2.08 bln consensus.

7:21 am Westlake Chemical beats by $0.20, beats on revs (WLK) : Reports Q2 (Jun) earnings of $1.41 per share, excluding $0.13 in non-recurring gains, $0.20 better than the Capital IQ Consensus Estimate of $1.21; revenues rose 18.7% year/year to $1.19 bln vs the $1.13 bln consensus.

  • The EPS beat represents an increase in net income attributable to Westlake Chemical Corp of $35.7 mln, or $0.28 per diluted share, compared to the quarter ended June 30, 2014 net income of $169.4 mln, or $1.26 per diluted share, on net sales of $998.6 mln.
  • "We continue to benefit from our access to natural-gas based feedstocks, positioning us as a low-cost producer, and from strong demand for our end-products."

7:20 am Halyard Health misses by $0.01, misses on revs; guides FY15 EPS below consensus (HYH) : Reports Q2 (Jun) earnings of $0.52 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.53; revenues fell 5.9% year/year to $389.3 mln vs the $403.35 mln consensus.

  • Co issues downside guidance for FY15, sees EPS of $1.90-2.10 vs. $2.31 Capital IQ Consensus Estimate.
  • Net sales growth, on a constant currency basis, is expected to decline 1-3% in 2015 compared to 2014

7:19 am Sabre beats by $0.03, beats on revs; guides FY15 EPS above consensus, revs above consensus (SABR) : Reports Q2 (Jun) earnings of $0.27 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.24; revenues rose 9.4% year/year to $707.09 mln vs the $681.63 mln consensus. Co issues upside guidance for FY15, sees EPS of $1.05-1.11 vs. $1.05 Capital IQ Consensus Estimate; sees FY15 revs of $2.95-2.98 bln vs. $2.86 bln Capital IQ Consensus Estimate.

7:19 am Bridgepoint Education misses by $0.13, misses on revs (BPI) : Reports Q2 (Jun) loss of $0.01 per share, $0.13 worse than the Capital IQ Consensus of $0.12; revenues fell 14.2% year/year to $147.1 mln vs the $150.6 mln consensus. 

  • Total student enrollment at Bridgepoint Education's academic institutions, Ashford University and University of the Rockies, was 51,049 students at June 30, 2015, compared with 61,117 students at June 30, 2014. 
  • For Q2, the twelve-month retention for all Ashford students who were active on the last day of the second quarter of 2014 was 62.7%. For the second quarter of 2014, the twelve-month retention for all Ashford students who were active on the last day of the second quarter of 2013 was 65.7%.

7:18 am Emerson beats by $0.01, misses on revs; guides FY15 EPS above consensus (EMR) : Reports Q3 (Jun) earnings of $0.84 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.83; revenues fell 12.8% year/year to $5.5 bln vs the $5.63 bln consensus.

  • Co issues upside guidance for FY15, sees EPS of $3.97-4.07 vs. $3.35 Capital IQ Consensus Estimate.

7:17 am Zoetis beats by $0.05, beats on revs; raises low end of FY15 guidance; reaffirms long term guidance (ZTS) :

  • Reports Q2 (Jun) earnings of $0.43 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $0.38; revenues rose 1.5% year/year to $1.18 bln vs the $1.12 bln consensus. 
  • Co issues guidance for FY15, raises EPS to $1.63-1.68, excluding non-recurring items, from $1.61-1.68 vs. $1.66 Capital IQ Consensus; raises FY15 revs to $4.70-4.775 bln from $4.675-1.775 bln vs. $4.74 bln Capital IQ Consensus Estimate. 
  • The company also reaffirmed its long-term outlook for 2016 and 2017

7:16 am Cabot misses by $0.09, misses on revs (CBT) : Reports Q3 (Jun) earnings of $0.64 per share, excluding non-recurring items, $0.09 worse than the Capital IQ Consensus Estimate of $0.73; revenues fell 26.2% year/year to $694 mln vs the $774.89 mln consensus.

  • Margin pressure in Reinforcement Materials and lower project activity in Specialty Fluids led to lower earnings year over year
  • Record results for Performance Chemicals
  • Company remains highly focused on managing costs and cash flow.
  • "Looking ahead, we expect the markets for the Performance Chemicals segment to remain strong in both specialty carbons and metal oxides. The outlook for Reinforcement Materials is mixed," Prevost continued, "with strengthening developed economies and sluggish emerging markets. Although the recent Supreme Court decision on MATS has resulted in greater uncertainty for the mercury removal business, we expect that Purification Solutions will continue to operate at current EBITDA run rates in the near term. The Specialty Fluids business continues to work on a broad portfolio of future project options but the short-term outlook remains challenging."

7:16 am AutoNation reports retail sales of 29,875 new vehicles in July 2015, an increase of 9% Y/Y (AN) : Co reported retail sales of 29,875 new vehicles in July 2015, an increase of 9% as compared to July 2014. Segment operations were as follows:

  •  9,657 for Domestic, up 14% Y/Y
  • 14,434 for Import, up 4% Y/Y
  • 5,784 for Premium Luxury, up 13% Y/Y

7:15 am ServiceMaster beats by $0.03, reports revs in-line; guides FY15 revs in-line (SERV) : Reports Q2 (Jun) earnings of $0.60 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.57; revenues rose 4.8% year/year to $716 mln vs the $717.89 mln consensus. Co issues in-line guidance for FY15, sees FY15 revs of $2.57-2.59 bln vs. $2.58 bln Capital IQ Consensus Estimate. Adjusted FY15 EBITDA is expected to be at least $610 mln.

7:15 am Oxford Immunotec beats by $0.01, beats on revs; guides Q3 revs in-line; guides FY15 revs in-line (OXFD) : Reports Q2 (Jun) loss of $0.33 per share, $0.01 better than the Capital IQ Consensus Estimate of ($0.34); revenues rose 21.2% year/year to $14.3 mln vs the $14.04 mln consensus.

  • Co issues in-line guidance for Q3, sees Q3 revs of $16.8-17.6 vs. $17.45 mln Capital IQ Consensus Estimate.
  • Co issues in-line guidance for FY15, sees FY15 revs of $61-64 mln vs. $62.11 mln Capital IQ Consensus Estimate.

7:14 am USA Truck beats by $0.02, misses on revs; announces 1 mln share buyback (limited coverage) (USAK) : Reports Q2 (Jun) earnings of $0.23 per share, $0.02 better than the Capital IQ two est avg of $0.21; revenues fell 12.9% year/year to $133.6 mln vs the $143.2 mln consensus. 

  • The Company also announced that its Board of Directors has authorized the repurchase of up to one million shares of the Company's common stock.

7:13 am Asian Markets Close: Japan's Nikkei -0.1%; Hing Kong's Hang Seng -0.02%; China's Shanghai Composite +3.7% (:SUMRX) : China's Shanghai Composite surged 3.7%, yet that belies the fact that most markets in the Asia-Pacific region finished lower on Tuesday, drafting off the relatively weak showing from Wall Street and the continued decline in commodity prices. China's strength was attributed to reports that regulators took further steps to curb short selling.

Economic data

  • Japan
    • Monetary Base +32.8% year-over-year (expected 32.2%; prior 34.2%)
    • Average Cash Earnings -2.4% year-over-year (expected +0.9%; prior +0.7%)
  • South Korea
    • July CPI +0.2% month-over-month (expected +0.2%; prior 0.0%); +0.7% year-over-year (expected +0.7%; prior +0.7%)
  • Australia
    • Reserve Bank of Australia leaves cash rate unchanged at 2.00% as expected
    • June Trade Balance AUD -2.933 bln (expected AUD -3.100 bln; prior AUD -2.677 bln)
      • Exports +3.0% month-over-month (prior +1.0%)
      • Imports +4.0% month-over-month (prior -4.0%)
    • June Retail Sales +0.7% month-over-month (expected +0.5%; prior +0.4%); +0.8% quarter-over-quarter (expected +0.4%; prior +0.6%)
  • India
    • Reserve Bank of India leaves key repo rate unchanged at 7.25% as expected
      • Reverse repo rate unchanged at 6.25% (expected 6.25%)
      • Cash reserve ratio unchanged at 4.00% (expected 4.00%
Equity Markets
  • Japan's Nikkei closed on an upswing but still declined 0.1% for the session. Weakness in the technology (-1.9%), materials (-1.3%), and industrials (-0.8%) offset strength in the health care (+2.0%), consumer discretionary (+0.8%), and financials (+0.3%) sectors. Maruha Nichiro (-7.4%), Mitsubishi (-6.9%), and IHI Corp (-6.7%) led individual decliners while Nippon Soda (+6.0%), Kajima Corp (+5.9%), and Sumitomo Dainippon Pharma (+5.2%) paced the winners. Out of the 225 index members, 85 ended higher, 135 finished lower, and 5 were unchanged.
  • Hong Kong's Hang Seng ended just below the unchanged mark in a meandering session that saw it spend most of the time rebounding from an early 0.8% decline. China Mengniu Diary (-4.2%), Tingyi Cayman Islands Holding Corp (-3.0%), and HSBC Holdings (-1.6%) were the worst-performing stocks. China Resources Power Holdings (+4.7%), China Life Insurance (+3.4%), and Sino Land Co (+2.4%) topped the list of winners. Out of the 50 index members, 28 ended higher, 20 finished lower, and 2 were unchanged.
  • China's Shanghai Composite surged 3.7% and finished at its highs for the day. The market rallied on reports regulators have made it even more difficult to sell stocks short. Several brokerages, including Citic Securities, announced they would be suspending their short-selling services on a temporary basis, according to media reports.
  • India's Sensex declined 0.4%, dragged down by weakness in the utilities (-1.9%), technology (-0.8%), energy (-0.6%), and financials (-0.5%) sectors. Hero MotoCorp (-2.7%), Oil & Natural Gas Co (-2.7%), and GAIL India (-2.6%) were the weakest performers. Tata Steel (+3.4%), Hindalco Industries (+3.4%), and Coal India (+2.7%) led all gainers. Out of the 30 index members, 12 ended higher and 18 finished lower.
  • Australia's S&P/ASX 200 increased 0.3% following the RBA's expected decision to leave its cash rate unchanged at 2.00%. The gains were underpinned by strength in the utilities (+1.5%), healthcare (+1.2%), and consumer discretionary (+1.0%) sectors. Out of the 200 index members, 120 ended higher, 68 finished lower, and 12 were unchanged.
  • Regional advancers: South Korea +1.0%, Philippines +0.3%
  • Regional decliners: Taiwan -0.2%, Malaysia -1.2%, Indonesia -0.4%, Singapore -0.1%, Thailand -0.9%, Vietnam -1.4%
FX
  • USD/CNY +0.01% at 6.2101
  • USD/INR -0.4% at 63.7850
  • USD/JPY -0.1% at 123.94

7:11 am KBR beats by $0.18, beats on revs; guides FY15 EPS above consensus (KBR) : Reports Q2 (Jun) earnings of $0.46 per share, excluding non-recurring items, $0.18 better than the Capital IQ Consensus Estimate of $0.28; revenues fell 17.6% year/year to $1.4 bln vs the $1.37 bln consensus. Co issues upside guidance for FY15, sees EPS of $1.22-1.37 vs. $1.17 Capital IQ Consensus Estimate. Guidance includes a pre-tax gain of $28 mln ($0.15 per share) fromt he completed sale of its Building Group subsidiary.  Backlog at June 30, 2015 was $15.3 billion which includes the $5.4 billion addition for the GS contracts in the U.K. noted above, and $456 million from Non-strategic businesses.

7:11 am Ametek reports EPS in-line, revs in-line; guides Q3 in-line; guides FY15 in-line (AME) : Reports Q2 (Jun) earnings of $0.64 per share, in-line with the Capital IQ Consensus Estimate of $0.64; revenues rose 1.3% year/year to $1 bln vs the $1 bln consensus.

  • Co issues in-line guidance for Q3, sees EPS of $0.64-0.65 vs. $0.65 Capital IQ Consensus Estimate. Q3 sales are expected to be approximately flat compared to last year's third quarter (consensus +1%).
  • Co issues in-line guidance for FY15, sees EPS of $2.58-2.63 vs. $2.60 Capital IQ Consensus Estimate. Anticipate 2015 sales to be up low single digits (consensus +1%) with organic sales roughly flat versus 2014./

7:11 am Criteo misses by EUR 0.02, beats on revs; guides Q3 revs above consensus; raises FY15 revs above consensus, reaffirms EBITDA (CRTO) :

  • Reports Q2 (Jun) earnings of 0.15 per share, excluding non-recurring items, 0.02 worse than the Capital IQ Consensus of 0.17; revenues ex-TAC rose 64.2% year/year to 110 mln vs the 106.72 mln consensus. 
    • We set a new record in client wins in the second quarter 2015 adding over 730 net clients.
  • Co issues upside guidance for Q3, sees Q3 revs of EUR 116-118 mln vs. 115.92 mln Capital IQ Consensus; EBITDA EUR 21-23 mln. 
  • Co issues upside guidance for FY15, raises FY15 revs to EUR 470-475 mln from EUR 454-460 mln vs. 461.56 mln Capital IQ Consensus; reaffirms EBITDA EUR 120-127 mln.

7:11 am Scotts Miracle-Gro beats by $0.13, beats on revs; reaffirms FY15 EPS guidance, guides FY15 revs slightly above consensus (SMG) : Reports Q3 (Jun) earnings of $2.68 per share, excluding non-recurring items, $0.13 better than the Capital IQ Consensus Estimate of $2.55; revenues rose 8.8% year/year to $1.21 bln vs the $1.17 bln consensus.

  • Co issues guidance for FY15, reaffirms EPS of $3.40-3.60 vs. $3.44 Capital IQ Consensus Estimate; sees FY15 revs +5-6% or roughly of $2.98-3.0 bln vs. $2.97 bln Capital IQ Consensus Estimate.

7:10 am Abiomed beats by $0.13, beats on revs; guides FY16 revs above consensus (ABMD) : Reports Q1 (Jun) earnings of $0.20 per share, $0.13 better than the Capital IQ Consensus Estimate of $0.07; revenues rose 50.4% year/year to $73.4 mln vs the $66.03 mln consensus.

  • Co issues raised guidance for FY16, sees FY16 revs of $300-310 mln from $285-295 mln vs. $292.42 mln Capital IQ Consensus Estimate.

7:10 am Demandware misses by $0.05, beats on revs (DWRE) : Reports Q2 (Jun) loss of $0.17 per share, excluding non-recurring items, $0.05 worse than the Capital IQ Consensus Estimate of ($0.12); revenues rose 46.9% year/year to $53.9 mln vs the $52.71 mln consensus.

  • Subscription revenue for the second quarter was $44.2 million, a 36% year over year increase from $32.5 million in the second quarter of 2014 
  • 295 live customers at June 30, 2015, an increase of 31% from 226 last year
  • 1,316 live sites at June 30, 2015, an increase of 42% from 924 last year 

7:08 am CVS Health beats by $0.06, reports revs in-line; guides Q3 EPS in-line; narrows FY15 EPS guidance, above consensus (CVS) : Reports Q2 (Jun) earnings of $1.19 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $1.13; revenues rose 7.4% year/year to $37.17 bln vs the $37.17 bln consensus.

  • Co issues in-line guidance for Q3, sees EPS of $1.27-1.30, excluding non-recurring items, vs. $1.29 Capital IQ Consensus Estimate.
  • Co narrows guidance for FY15, sees EPS of $5.11-5.18, excluding non-recurring items, vs. $4.89 Capital IQ Consensus Estimate, from $5.08-5.19.
  • Confirmed full year free cash flow of $5.9 to $6.2 billion; cash flow from operations of $7.6 to $7.9 billion

7:07 am Cobalt International Energy beats by $0.03 (CIE) : Reports Q2 (Jun) loss of $0.16 per share, $0.03 better than the Capital IQ Consensus Estimate of ($0.19). Cobalt continues to appraise and develop several of its discoveries in Angola and the Gulf of Mexico, with a focus on progressing each to potential sanction while simultaneously evaluating financing, partnership or other potential means of enhancing shareholder value.

7:06 am Sagent Pharma misses by $0.06, misses on revs; guides FY15 revs below consensus and prior range (SGNT) : Reports Q2 (Jun) loss of $0.01 per share, $0.06 worse than the Capital IQ Consensus Estimate of $0.05; revenues rose 11.7% year/year to $77.3 mln vs the $83.28 mln consensus.

  • Co issues downside guidance for FY15, sees FY15 revs of $305-330 mln vs. $345.51 mln Capital IQ Consensus Estimate, prior range $325-375 mln
  • Adjusted Gross Profit as a percentage of net revenue in the range of 25% to 28%, prior guidance 27-31%

7:06 am ComScore beats by $0.04, beats on revs; guides Q3 revs in-line; slighly raises FY15 revs in-line (SCOR) : Reports Q2 (Jun) earnings of $0.37 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.33; revenues rose 14.3% year/year to $91.4 mln vs the $89.97 mln consensus. Co reports Q2 Adjusted EBITDA of $22.9 million, up 30%.

  • Co issues in-line guidance for Q3, sees Q3 revs of $90.8-95.4 mln vs. $93.85 mln Capital IQ Consensus Estimate. Co sees Q3 adjusted EBITDA of $19.5 million to $23.6 million.
  • Co issues raised guidance for FY15, sees FY15 revs of $369.5-382.5 mln from $368-381 mln vs. $373.64 mln Capital IQ Consensus Estimate. Co sees FY15 adjusted EBITDA of $86.5-97.5 mln.

7:05 am Coach beats by $0.02, beats on revs (COH) : Reports Q4 (Jun) earnings of $0.31 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.29; revenues fell 12.3% year/year to $1 bln vs the $973.57 mln consensus. Total North American sales decreased 20% on a reported basis for the quarter to $556 mln from $691 mln last year, and 19% on a constant currency basis. International sales decreased 5% for the quarter to $392 mln from $414 mln last year.

  • Outlook: 
    • The Company currently expects Coach stand-alone brand revenues for Fiscal 2016 to increase by low-single digits in constant currency on a 52-week basis consistent with prior guidance. 
    • Based on current exchange rates, foreign currency will have an approximate 200 basis point negative impact on Fiscal 2016 revenue growth. 
    • Gross margin for the Coach brand is projected to be in the area of 70% on a constant currency basis, while negative foreign currency effects may impact gross margin by 80-100 basis points. 
    • SG&A expenses for the brand are anticipated to rise at a mid-single-digit rate in constant currency, driven primarily by a shift in project timing from FY15, while dollar growth is expected to be somewhat lower.
    • Coach brand operating margin for Fiscal 2016 is currently estimated to be in the mid-to-high teens.

7:05 am TriVascular Technologies announces FDA approval of its Ovation iX Abdominal Stent Graft System (TRIV) :  

7:04 am Archer-Daniels misses by $0.07, misses on revs (ADM) : Reports Q4 (Jun) earnings of $0.60 per share, excluding non-recurring items, $0.07 worse than the Capital IQ Consensus Estimate of $0.67; revenues fell 20.0% year/year to $17.19 bln vs the $20.48 bln consensus. 

  • In Corn, domestic and export demand for ethanol was robust, but record industry production limited margins. This was partially offset by strong results from its corn sweeteners and starches business.
  • In Oilseeds, good meal demand supported strong North American soybean crushing results.
    • And South American origination and export volumes were up, leading to good throughput at our expanded origination and port network. These, combined with the flexibility of its global crush plants, helped the Oilseeds team deliver another strong performance.
  • Ag Services earnings were impacted by lower margins and volumes of North American exports, as they were less competitive globally, and by a sharp upward move in commodity prices at the end of the quarter. But, within its Ag Services segment, the milling business had record second-quarter results.

7:04 am Church & Dwight beats by $0.03, beats on revs; guides Q3 EPS below consensus; reaffirms FY15 guidance (CHD) :

  • Reports Q2 (Jun) earnings of $0.73 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.70; revenues rose 4.8% year/year to $847.1 mln vs the $832.37 mln consensus; +5.1% organic, volume +4.5%.
  • Co issues downside guidance for Q3, sees EPS of $0.87-0.88, excluding non-recurring items, vs. $0.91 Capital IQ Consensus Estimate. 
  • Co reaffirms guidance for FY15, sees EPS +7-9% to $3.22-3.28, excluding non-recurring items, vs. $3.26 Capital IQ Consensus Estimate. 
  • "We continue to expect organic sales growth of ~3% in 2015 behind new product introductions on our core business. We expect gross margin to expand by ~25 to 35 basis points. We intend to heavily invest in the OXICLEAN brand as 2015 will mark the second year of our quest to establish it as our next megabrand across multiple categories. Marketing spending is expected to be approximately 12.5% of sales, comparable to the 2014 and 2013 rate of investment. To the extent the Company over-delivers on gross margin expansion, we expect to incrementally invest in marketing spending behind our mega brands. We continue to expect to achieve ~50 to 60 basis points of operating margin expansion, excluding the second quarter pension termination charge."

7:04 am Layne Christensen announces signing new contracts valued at ~$90 Million (LAYN) : Co announced a number of significant new contracts signed during the Q2, worth $90 million. The contracts, which do not represent all bookings during the quarter, were awarded to Layne's Water Resources, Inliner, Heavy Civil and Mineral Services divisions. The majority of the projects are expected to be completed within the next twelve months.

7:04 am SunEdison Semiconductor initiates a plan to consolidate its manufacturing footprint to 'better match demands of the industry' (SEMI) : The consolidation will consist of closing its Ipoh, Malaysia wafering plant by the end of 2016, and relocating the associated capacity to other plant sites. The Company does not expect its total capacity to change. By late 2016, with the closure of the Ipoh plant, the Company's global footprint will be consolidated from eight to seven plants. The Company does not expect its total capacity to change.

  • The Ipoh plant produces 200mm semiconductor wafers. SunEdison Semiconductor will work closely with customers to complete the qualifications required and/or build adequate supply to support their needs.

7:04 am Mosaic beats by $0.15, reports revs in-line (MOS) : Reports Q2 (Jun) earnings of $1.05 per share, excluding non-recurring items, $0.15 better than the Capital IQ Consensus Estimate of $0.90; revenues rose 1.9% year/year to $2.49 bln vs the $2.51 bln consensus. 

For the 2015 full year guidance, Mosaic updates the following estimates:

  • Canadian resource taxes and royalties to be in the range of $310 to $350 million, compared to prior guidance of $325 to $375 million. 
  • Capital expenditures and investments to be in the range of $1.1 to $1.3 billion, compared to $1.1 to $1.4 billion. 
  • Phosphates sales volumes to be in the range of 9.5 to 10.0 million tonnes, compared to 9.0 to 10.0 million tonnes. 
  • Potash sales volumes to be in the range of 8.2 to 8.6 million tonnes, compared to 8.5 to 9.0 million tonnes.
  • International Distribution sales volumes to be in the range of 6.0 to 6.5 million tonnes, compared to 6.0 to 7.0 million tonnes. 
The remaining 2015 full year guidance is unchanged:
  • SG&A expenses to range from $360 to $380 million, inclusive of costs from the recently acquired distribution business in Brazil and Paraguay.
  • Brine management costs to be in the range of $180 to $200 million. 
  • The effective tax rate to be in the high teens.

7:04 am Exterran Holdings beats by $0.08, reports revs in-line (EXH) : Reports Q2 (Jun) earnings of $0.22 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus Estimate of $0.14; revenues fell 7.5% year/year to $683.8 mln vs the $679.6 mln consensus.

7:03 am Universal Stainless/Alloy appoints Ross Cameron Wilkin as VP of Finance and CFO, effective August 3, 2015 (USAP) : Wilkin most recently served as Chief Financial Officer of Dynamics Inc., a Cheswick, PA-based financial technology firm that designs and manufactures intelligent payment devices and advanced payment platforms

7:02 am Incyte beats by $0.14, beats on revs (INCY) : Reports Q2 (Jun) earnings of $0.05 per share, $0.14 better than the Capital IQ Consensus Estimate of ($0.09); revenues rose 63.7% year/year to $162.98 mln vs the $153.23 mln consensus.

FY15 Guidance

  • Jakafi Net Product Revs $525-565 mln vs $560-575 mln prior guidance
  • R&D Expense $450-500 mln vs $475-500 mln prior guidance
  • SG&A $180-200 mln vs $195-210 mln prior guidance

7:02 am Orion Energy Systems misses by $0.02, misses on revs; confident will reach positive EBITDA for the full fiscal year (OESX) :

  • Reports Q2 (Jun) loss of $0.13 per share, $0.02 worse than the Capital IQ Consensus Estimate of ($0.11); revenues rose 24.8% year/year to $16.6 mln vs the $16.83 mln consensus. The fiscal 2016 first quarter gross margin was 22.7% compared to 19.6% in the prior-year period.
  • "We are encouraged by our first quarter results and feel confident that we will reach positive EBITDA for the full fiscal year, driven by a significant year-over-year increase in revenue, significant year-over-year margin expansion, positive cash flow from operations, and positive GAAP EPS in the second half of the fiscal year," Scribante said.

7:02 am Cipher Pharma receives an Acceptance Review Notification for its 510(k) submission for Dermadexin, from the US FDA (CPHR) :  

7:01 am Rentech announces a 1-for-10 reverse stock split; to take effect on August 20, 2015 (RTK) :  

7:01 am China Digital TV reports an update on its asset restructuring; has submitted all relevant documents to the China Security Regulatory Commission and received a review acceptance letter (STV) : The co provided a further update on its asset restructuring with Shanghai Tongda Venture Capital Co., Ltd,. The Company announced that Tongda Venture has submitted all relevant documents to the China Security Regulatory Commission and received an acceptance letter. The acceptance letter acknowledges that the application materials submitted by the Company are in order, and states that it will proceed to consider the application.

7:01 am Vantage Drilling beats by $0.02, beats on revs (VTG) : Reports Q2 (Jun) earnings of $0.05 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.03; revenues fell 3.4% year/year to $212.3 mln vs the $208.31 mln consensus.

7:01 am Rexford Industrial Realty increases quarterly dividend 12.5% to $0.135/share from $0.12/share (REXR) :  

7:00 am Office Depot reports EPS in-line, misses on revs (ODP) : Reports Q2 (Jun) earnings of $0.06 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of $0.06; revenues fell 10.4% year/year to $3.44 bln vs the $3.49 bln consensus. 

  • In 2015, total company capital expenditures are expected to be ~ $200 mln, and total company depreciation and amortization is expected to be ~$300 mln. With respect to the OfficeMax (OMX) merger: Office Depot continues to expect to achieve total annual run-rate merger synergy benefits of more than $750 mln by the end of 2016. 
  • The company began 2015 with over $500 mln in run-rate merger synergy benefits. The company has accelerated its U.S. retail store optimization plan, and now expects to close ~175 stores in 2015 and at least 60 in 2016, for a total of at least 400 closures by the end of 2016.
  • "We are pleased that our shareholders overwhelmingly approved the pending acquisition by Staples (SPLS) on June 19. We remain on track with the regulatory review process, and we continue to anticipate this transaction will close by the end of 2015."

6:59 am NRG Yield misses by $0.07, misses on revs (NYLD) : Reports Q2 (Jun) earnings of $0.15 per share, $0.07 worse than the Capital IQ Consensus Estimate of $0.22; revenues rose 25.4% year/year to $217 mln vs the $231.72 mln consensus. 

Outlook, Dividend Commentary

  • Due to the continued unusually low wind production across the fleet, the Company has revised its expectations for wind production over the balance of 2015. As a result of these reduced expectations, combined with a lower expected pace of deployments of residential solar leases from NRG, NRG Yield is updating full year guidance for Adjusted EBITDA to $660 million and CAFD to $160 million.
  • The Company does not expect the reduction in 2015 Adjusted EBITDA and CAFD guidance to have any impact on either its current dividend or expected long-term dividend growth. 
  • Without any effect to future acquisitions or drop downs, the Company expects the current portfolio to generate $760 million of Adjusted EBITDA and $245 million of CAFD on an annual run rate basis.
  • Co is also targeting a quarterly dividend of $0.25 per share ($1.00 per share annualized) on each of the Company's Class A and Class C common stock by the 4th quarter of 2016. This represents a 19% increase over the current annualized dividend rate and 67% increase since NRG Yield's first dividend in the fourth quarter of 2013. 
  • For third quarter 2015, the Company expects Adjusted EBITDA of $195 million and CAFD of $110 million, although actual results may vary depending on the operating performance of the assets.

6:58 am Kulicke & Soffa reports Q3 (Jun) results, misses on revs; guides Q4 revs below consensus (KLIC) : Reports Q3 (Jun) earnings of $0.33 per share, including favorable tax benefits totaling $13.7 mln or $0.18 per share, may not be comparable to the Capital IQ Consensus Estimate of $0.17; revenues fell 8.8% year/year to $164.6 mln vs the $166.25 mln consensus. 

  • Co issues downside guidance for Q4, sees Q4 revs of $135-145 mln vs. $187.93 mln Capital IQ Consensus Estimate. 
  • "The lower level of guidance largely stems from higher inventory levels throughout the semiconductor value chain and expectations for muted semiconductor unit growth. Ultimately, these broad industry conditions reduce the near-term necessity for capacity additions to the install base. Our exposure to new market opportunities combined with a relentless focus on operational efficiency are anticipated to drive fundamental business improvements and further enhance our ability to perform throughout the cycle. Our recent and aggressive efforts to return capital to investors further extends our ability to create and deliver ongoing, meaningful and sustainable value to shareholders."

6:57 am GNC Holdings adds $500 mln to its share repurchase program (GNC) : The authorization is effective immediately, and is in addition to the Company's previous authorization which currently has $242.0 million remaining.

6:57 am Mallinckrodt plc beats by $0.22, misses on revs (MNK) : Reports Q3 (Jun) adj. earnings of $2.05 per share, $0.22 better than the Capital IQ Consensus of $1.83; revenues rose 47.8% year/year to $965 mln vs the $983.89 mln consensus. 

  • Net sales for the third quarter fiscal 2015 increased $361.3 million to $446.2 million, compared with $84.9 million for the prior-year quarter. The increase in net sales was primarily driven by the inclusion and performance of Acthar and INOMAX, which collectively generated net sales of $350.2 million. In addition, net sales for the three months ended June 26, 2015 increased due to OFIRMEV growth of $8.9 million, or 16.7% from the prior-year period.

6:57 am II-VI beats by $0.04, beats on revs; guides Q1 EPS below consensus, revs below consensus (IIVI) : Reports Q4 (Jun) earnings of $0.27 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.23; revenues rose 4.7% year/year to $196.7 mln vs the $189.93 mln consensus.

  • Co issues downside guidance for Q1, sees EPS of $0.20-0.25 vs. $0.26 Capital IQ Consensus Estimate; sees Q1 revs of $180-190 mln vs. $192.55 mln Capital IQ Consensus Estimate.

6:56 am Church & Dwight announces that effective January 1, 2016, Richard A. Dierker will succeed Matthew Farrell as CFO (CHD) : As previously announced, Mr. Farrell, currently Chief Operating Officer and Chief Financial Officer, will become Chief Executive Officer at that time. Dierker joined Church & Dwight in 2009 and is currently Vice President, Corporate Finance, with day-to-day responsibility for most operations of the global finance function.

6:55 am GNC Holdings to offer $250 mln in aggregate principal amount of Convertible Senior Notes due 2020 in a private offering (GNC) : The Company intends to use $100 million of the net proceeds from this offering to repurchase shares of its common stock from purchasers of Notes in this offering in privately negotiated transactions concurrently with the closing of this offering, either alone or in combination with subsequent open market share repurchases under its existing share repurchase program.

6:55 am Premier to acquire CECity, Inc. for $400 million; expects the transaction to be accretive to adjusted fully distributed earnings per share in FY16 and FY17 (PINC) : Co reached an agreement to acquire CECity, Inc., for $400 million. CECity is a privately-held, SaaS-based healthcare solutions provider, specializing in performance management and improvement, pay-for-value reporting and professional education.

  • Under terms of the agreement, Premier will purchase 100 percent of CECity's outstanding stock for $400 million. This amount will be funded by $250 million of cash on hand and $150 million from borrowings under the company's untapped $750 million revolving credit facility. The transaction is expected to close in Premier's fiscal first quarter ending Sept. 30, 2015 
  • CECity and its 134 employees/contractors will continue to operate out of its headquarters in Pittsburgh for the foreseeable future as part of Premier's performance services segment. 
  • Co expects the transaction to be accretive to adjusted fully distributed earnings per share by approximately 2-4 cents in fiscal 2016, and 8-10 cents in fiscal 2017

6:52 am Entergy misses by $0.31, misses on revs; reaffirms FY15 EPS guidance (ETR) : Reports Q2 (Jun) earnings of $0.83 per share, $0.31 worse than the Capital IQ Consensus Estimate of $1.14; revenues fell 9.5% year/year to $2.71 bln vs the $3.04 bln consensus. Co reaffirms guidance for FY15, sees EPS of $5.10-5.90 vs. $5.51 Capital IQ Consensus Estimate.

6:49 am NRG Energy beats by $0.02, misses on revs; reaffirms 2015 guidance (NRG) : Reports Q2 (Jun) loss of $0.06 per share, $0.02 better than the Capital IQ Consensus Estimate of ($0.08); revenues fell 6.2% year/year to $3.4 bln vs the $3.52 bln consensus. 

  • Reaffirms full year 2015 Guidance:
    • Adjusted EBITDA of $3,200-$3,400 million
    • FCF before growth investments of $1,100-$1,300 million 
    • Executed $107 million of share repurchases in second quarter for a total of $186 million repurchased year-to-date with $51 million in remaining authorized capacity and $200 million in expected capacity 

6:45 am Syneron Medical beats by $0.01, beats on revs (ELOS) : Reports Q2 (Jun) earnings of $0.07 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.06; revenues rose 13.8% year/year to $73.5 mln vs the $70.93 mln consensus. 

  • "We achieved another solid quarter in our North America Body Shaping Division, driven by the expansion of our sales team and marketing initiatives. We remain on track with our UltraShape revenue plan for the year. We are also investing in clinical trials to expand our FDA UltraShape clinical indications for additional body areas."
  • " In 2016 we also plan to launch two additional products for facial aesthetic applications based on Candela's pulsed dye laser and solid state laser technologies combined with Syneron's proprietary ELOS technology. Additional product launches planned for 2016 include significant enhancements to our body shaping portfolio."

6:44 am Chegg Correction: Beats by $0.02, beats on revs; guides Q3 rev below consensus; raises low end of FY15 digital rev guidance, raises gross margin guidance (CHGG) :

  • Reported Q2 (Jun) EPS of $0.01, $0.02 better than the Capital IQ Consensus of ($0.01); revenues rose 4.0% year/year to $67.06 mln vs the $63.94 mln consensus. 
  • Co issues downside guidance for Q3, sees Q3 revs of $74-80 mln vs. $81.63 mln Capital IQ Consensus; Adjusted EBITDA loss of between $12 million and $9 million. 
  • Co issues guidance for FY15, sees FY15 revs of $295-310 mln from $310-315 mln vs. $309.57 mln Capital IQ Consensus; raises low end of FY15 digital rev, to $137-145 mln from $135-145 mln. Adjusted EBITDA of breakeven to $5 mln (from break even or better); Free cash flow in the range of $15 million and $20 million; raises gross margin to 36-38% from 34-36%.
  • CHGG has pared much of its after hours losses.

6:38 am Stereotaxis reports Q2 results (STXS) :

  • Co reports Q3 EPS ($0.12), Excluding mark-to-market warrant revaluation, vs ($0.16) year ago; revs 21.3% y/y to $9.7 mln (no estimates). Gross margin was 70% of revenue, on a higher mix of system revenue, versus 75% of revenue, in the second quarter of 2014 and  72% of revenue, in the first quarter of 2015. 
  • At June 30, 2015, Stereotaxis had cash and cash equivalents of $3.6 mln, compared to $4.4 mln at March 31, 2015.

6:37 am Care.com beats by $0.08, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY15 EPS in-line, revs in-line (CRCM) : Reports Q2 (Jun) loss of $0.16 per share, $0.08 better than the Capital IQ Consensus Estimate of ($0.24); revenues rose 38.0% year/year to $35.6 mln vs the $35.4 mln consensus. Adjusted EBITDA was a loss of $3.7 million in the second quarter 2015, compared to an adjusted EBITDA loss of $6.6 million in the second quarter of 2014.

  • Co issues downside guidance for Q3, sees EPS of ($0.24) - ($0.27) vs. ($0.17) Capital IQ Consensus Estimate; sees Q3 revs of $36.5-39.5 mln vs. $39.52 mln Capital IQ Consensus Estimate. 
  • Co issues in-line guidance for FY15, sees EPS of ($0.68) - ($0.60) vs. ($0.67) Capital IQ Consensus Estimate; sees FY15 revs of $146-153 mln (prior guidance $146-155 mln) vs. $151.74 mln Capital IQ Consensus Estimate.

6:36 am RR Donnelley & Sons beats by $0.04, reports revs in-line; guides FY15 revs below consensus (RRD) : Reports Q2 (Jun) earnings of $0.41 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.37; revenues rose 22.8% year/year to $2.75 bln vs the $2.74 bln consensus.

  • Co issues downside guidance for FY15, sees FY15 revs of $11.4-11.6 bln vs. $11.66 bln Capital IQ Consensus Estimate, down from prior guidance for $11.7-11.9 bln.
  • "As we look to the back half of 2015, we will continue to aggressively manage costs, which is reflected in our improved non-GAAP adjusted EBITDA margin guidance for full-year 2015."

6:35 am eGain Comm. reports downside prelim sales guidance (EGAN) :

  • Co sees Q4 (Jun) revs of $16.5 -17.0 mln vs. $21.66 mln Capital IQ Consensus Estimate and gross bookings $21.0 -21.5 mln. Fourth quarter new cloud bookings is expected to be 57% of total new bookings up from 25% last quarter.
  • "Although our fourth quarter revenue came in lower than prior guidance, we are pleased with our greater than 25% year-over-year growth in bookings. I am particularly encouraged with our cloud bookings that came in stronger than expected, including four on-premise customers migrating to the eGain Cloud. New cloud bookings in the quarter accounted for 57% of total new bookings, up from 25% of new bookings in the prior quarter. Several license deals we expected to close slipped out of the quarter; some have since closed."

6:35 am Regeneron Pharms beats by $0.11, beats on revs; raises EYLEA US net product sales guidance (REGN) : Reports Q2 (Jun) earnings of $2.89 per share, $0.11 better than the Capital IQ Consensus of $2.78; revenues rose 50.0% year/year to $999 mln vs the $887.59 mln consensus. 

  • Collaboration revenues in the second quarter of 2015 increased primarily due to higher reimbursement of the Company's research and development expenses under its antibody collaboration with Sanofi and an increase in the Company's net profit from commercialization of EYLEA outside the United States. 
  • Net sales of EYLEA in the United States increased 58% to $655 million from $415 million in the second quarter of 2014. 
    • Overall distributor inventory levels remained within the Company's one- to two-week targeted range.
  • Co raises EYLEA US net product sales to +45-50% from +30-35%, lowers R&D and SG&A guidance

6:33 am Beazer Homes misses by $0.03, misses on revs (BZH) : Reports Q3 (Jun) earnings of $0.38 per share, $0.03 worse than the Capital IQ Consensus Estimate of $0.41; revenues rose 21.1% year/year to $429.4 mln vs the $480.99 mln consensus. 

  • New home orders grew 18.1% for the quarter, with an average active community count that was 17.1% higher than a year ago. 
  • Absorption rates were especially strong at 3.1 sales per community per month for the quarter, while the average selling price ("ASP") increased to $318.0 thousand, the highest ASP for any quarter in the Company's history. 
  • The Company ended June 2015 with 2,764 units in backlog, a 25.0% increase from the prior year period, with an ASP of $325.3 thousand (8.5% greater than the ASP of backlog as of the end of the prior year quarter).

6:32 am MedAssets: Starboard confirms 8.7% stake in MedAssets, delivers letter outlining plan to increase shareholder value; believes operational improvements could push stock price to at least $37-$46 (MDAS) : Highlights of the letter include:

  • "We believe that integrating prior acquisitions, pursuing cost saving initiatives and adopting a more disciplined capital allocation policy would result in a substantial improvement in shareholder value.  Based on our estimates, MedAssets' EBITDA could be improved to over $320 million by the end of 2016, and the Company's free cash flow per share could be improved to more than $3.30.  Assuming MedAssets can achieve the targets described above, this would imply that MedAssets is currently trading at a 6.9x EV/EBITDA multiple and a 14.1% free cash flow yield, which represents a steep discount to Premier's current valuation (10.7x EV/EBITDA, 4.2% free cash flow yield). 
  • MedAssets' historical compensation practices seem to have failed in aligning management incentives with shareholders' interests. Executive compensation reached a peak last year during a period that MedAssets' share price actually declined.  Shareholders clearly voiced their opinion on this matter at this year's annual meeting, as approximately 70% of the shares voting on the Company's Say-on-Pay proposal were voted against approving executive compensation. Finally, we are also concerned by the fact that MedAssets has maintained governance provisions that are unfriendly to shareholders, including a classified board structure and inability of shareholders to call special meetings or act by written consent. 
  • Based on our estimates, MedAssets would be worth approximately $37.29 per share if it were valued in line with its historical average 9.1x EV / EBITDA multiple.  Valuing the Company based on Premier's current 10.7x valuation would imply a $46.18 share price for MedAssets.  While there are some differences in business mix, we believe that the valuation disparity between MedAssets and Premier is primarily driven by MedAssets inconsistent execution, lower profitability, and inefficient capital allocation.  Addressing these issues should reduce the discount at which MedAssets' currently trades relative to Premier. Based on our assumptions around the potential cost saving opportunity, your Net Debt / EBITDA ratio should decline to the low-end of your stated leverage target range of 2.5x -- 3.5x Net Debt / EBITDA by the end of next year.  This could allow you to increase your current share repurchase authorization, which in turn, would result in additional upside. 
Briefing.com note: Shares were already up over 10% following the 13D filing last night, which disclosed Starboard's stake and a brief summary of their intentions (See 17:37 post)

6:32 am Corvel reports June qtr results (CRVL) : Co reports June Qtr EPS of $0.34 vs $0.39 year ago; revs 2.4% to $127 mln (no estimates).

6:31 am RR Donnelley & Sons announces its intent to transform itself into three independent, publicly traded companies (RRD) : Co announced that it intends to create three independent, publicly traded companies: one business focused on financial communications and data services; one business focused on publishing and retail-centric print services; and one business focused on customized multichannel communications management.

  • Financial Communications Services Company (FinancialCo): will be a financial communications services company serving both the investment and capital markets worldwide The unit will be a combination of RR Donnelley's financial print business, Bowne Financial and EDGAR Online. As a standalone company, it will have trailing 12-month net sales for the period ended June 30, 2015 of ~$1 billion. 
  • Publishing and Retail-Centric Print Services Company (PRSCo) As a standalone company, will have trailing 12-month net sales for the period ended June 30, 2015 of approximately $3.5 billion. Co believes PRSCo will be well positioned for further value creation through continued cost restructuring and accretive acquisition opportunities
  • Customized Multichannel Communications Management Company (CMCo) CMCo will be a customized multichannel communications management provider that assists organizations around the world in creating, managing and executing their multichannel communications strategies. As a standalone company with trailing 12-month net sales for the period ended June 30, 2015 of ~$7 billion. 
  • The transaction is expected to take the form of a tax-free distribution to RR Donnelley shareholders of FinancialCo and PRSCo in two new, independent, publicly traded stocks. The company expects to complete the spinoffs prior to the end of 2016. Immediately following the completion of the transactions, existing RR Donnelley shareholders will own shares in all three companies.
  • The leadership, governance, corporate branding and other matters for each company are still being developed and the company will provide interim updates as appropriate

6:30 am USA Tech appoints J. Duncan Smith as CFO, effective August 31, 2015 (USAT) : Smith succeeds David M. DeMedio, 44, who transitions to the newly created position of chief services officer. Smith joins USAT from Bryn Mawr Bank Corporation, where he served as CFO and Treasurer since 2005

6:28 am Metaldyne Performance beats by $0.07, reports revs in-line; reaffirms FY15 revs guidance (MPG) : Reports Q2 (Jun) earnings of $0.64 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.57; revenues rose 24.8% year/year to $800.2 mln vs the $798.98 mln consensus. Adjusted EBITDA increased from prior year 25% to $153.6 million or 19.2% of net sales.

Co reaffirms guidance for FY15, sees FY15 revs of $3.0-3.15 bln vs. $3.11 bln Capital IQ Consensus Estimate.

6:28 am Surgical Care Affiliates beats by $0.05, beats on revs; reaffirms FY15 guidance (SCAI) : Reports Q2 (Jun) earnings of $0.49 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $0.44; revenues rose 21.6% year/year to $253.7 mln vs the $243.31 mln consensus. This increase was driven by revenues earned from acquisitions, higher acuity case mix and higher volumes in some of the Company's larger facilities. Systemwide net operating revenues, which include revenues from all facilities in which SCA has an ownership interest (without adjustment based on SCA's percentage of ownership) and management fee revenues from managed-only facilities, increased 18.2%. Same site net patient revenue grew 7.1% for the three months ended June 30, 2015 compared to the prior year second quarter.

  • Reaffirms 2015 adjusted EBITDA less NCI growth to be in the range of 8% to 11%. 

6:24 am Western Refining beats by $0.10, beats on revs (WNR) : Reports Q2 (Jun) adj. earnings of $1.44 per share, $0.10 better than the Capital IQ Consensus Estimate of $1.34; revenues fell 35.0% year/year to $2.83 bln vs the $2.49 bln consensus. 

  • "This was another outstanding quarter for all of our business segments. Our refineries ran at historically high throughput rates in a strong margin environment and expenses were in line with expectations. In our Retail business, we saw an increase in same store fuel volumes, fuel margins, and merchandise sales. NTI and WNRL also performed well in the quarter which contributed to our solid financial results."

6:22 am Northern Tier Energy misses by $0.01, beats on revs (NTI) : Reports Q2 (Jun) earnings of $0.98 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.99; revenues fell 40.1% year/year to $959.8 mln vs the $906.22 mln consensus. 

  • "In the second quarter of 2015 our St. Paul Park refinery achieved record-setting quarterly throughput of approximately 99,000 barrels per day. Product margins were strong, led by robust gasoline crack spreads. In retail, we saw an increase in fuel volumes, fuel margins and merchandise sales. With these solid results, I am pleased to announce a second quarter distribution of $1.19 per unit."

6:20 am NW Natural Gas beats by $0.02, lowers FY15 EPS guidance (NWN) : Reports Q2 (Jun) earnings of $0.08 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.06; revenues rose 3.8% year/year to $138.3 mln may not compare to the $76.66 mln consensus.

  • Co issues lowered guidance for FY15, sees EPS of $1.77-1.97 from $2.10-2.30 vs. $2.19 Capital IQ Consensus Estimate. 
  • Customer growth rate was 1.5% at June 30, 2015, with over 10,000 customers added over the last twelve months.

6:19 am MDC Holdings beats by $0.03, misses on revs (MDC) : Reports Q2 (Jun) earnings of $0.41 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.38; revenues rose 7.0% year/year to $461.7 mln vs the $513.22 mln consensus. 

  • The increase in revenue was driven by a 10% increase in average selling price, mostly due to a mix shift to higher-priced submarkets, but was partially offset by a 3% decrease in the number of homes closed. 
  • Gross margin from home sales for the 2015 second quarter was 16.6%, down from 17.1% for the year earlier period, but up sequentially by 120 basis points from 15.4% for the 2015 first quarter. The 50 basis point year-over-year decline was driven by higher land and construction costs, partially offset by a 70 basis point improvement in our interest in cost of sales as a percent of home sale revenues. 
  • The dollar value of net new orders for the 2015 second quarter increased 16% to $629.7 million from $544.8 million for the same period in 2014. The improvement was primarily driven by an 11% increase in average selling price, and to a lesser extent, a 4% increase in the number of net new orders. 
  • "During the 2015 second quarter, we began to realize the benefit of our effort to reduce speculative inventory levels as our gross margin percentage was up 120 basis points sequentially, resulting primarily from the improved mix and margins on the speculative homes we closed.
  • "With our backlog dollar value over $1.1 billion and overall liquidity of $840 million, we believe we are well prepared for to close out 2015 strongly and position the Company for continued growth in 2016."

6:17 am Steris beats by $0.01, reports revs in-line; reaffirms FY16 EPS guidance, raises FY16 revs above consensus; boosts dividend (STE) : Reports Q1 (Jun) earnings of $0.62 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.61; revenues rose 6.6% year/year to $439.9 mln vs the $438.82 mln consensus.

  • Co issues guidance for FY16, reaffirms EPS of $3.15-3.30 vs. $3.24 Capital IQ Consensus Estimate; raises FY16 revs to~$1961-1979 (6-7% growth) vs. $1.95 bln Capital IQ Consensus Estimate. (This compares to prior guidance of 5-6% growth)
  • The Company does anticipate approximately $0.06 accretion this fiscal year from the General Econopak and Black Diamond acquisitions, both of which have now closed. However, most of that benefit will be offset by additional interest expense from the recently completed private placement financing.
  • The Company also announced today that its Board of Directors has authorized a two cent increase in its quarterly dividend to $0.25 per common share
  • Outlook inclusive of the proposed Synergy Health acquisition will be provided after the close of the transaction.

6:14 am Aetna beats by $0.23, misses on revs; raises FY15 EPS above consensus (AET) :

  • Reports Q2 (Jun) earnings of $2.05 per share, excluding non-recurring items, $0.23 better than the Capital IQ Consensus of $1.82; revenues rose 4.4% year/year to $15.13 bln vs the $15.47 bln consensus, primarily the result of higher Health Care premium yields as well as membership growth in Aetna's Government business partially offset by membership losses in Aetna's middle-market Commercial Insured products.
  • Co issues upside guidance for FY15, raises EPS to at least $7.40 from $7.20-7.40, excluding non-recurring items, vs. $7.39 Capital IQ Consensus.  
  • "Our second-quarter total medical benefit ratio improved year over year to 81.1 percent, a very strong result that benefited from continued moderate medical cost trends.
  • "Aetna's government businesses had another excellent quarter, with outperformance in our Medicare and Medicaid lines more than offsetting the impact on our commercial business of the recent federal calculations on health care reform risk adjustments."
  • co is acquiring Humana (HUM).

6:13 am Time beats by $0.12, beats on revs; reaffirms FY15 revs guidance (TIME) : Reports Q2 (Jun) earnings of $0.27 per share, excluding non-recurring items, $0.12 better than the Capital IQ Consensus Estimate of $0.15; revenues fell 5.7% year/year to $773 mln vs the $758.03 mln consensus.

  • Co reaffirms guidance for FY15, sees FY15 revs of (3%) - (6%) to ~$3.08-3.18 bln vs. $3.1 bln Capital IQ Consensus Estimate.  Co sees FY15 OIBDA of $440-490 mln.
  • Adjusted OIBDA of $117 mln for the quarter ended June 30, 2015 represented an increase of $4 million from the comparable quarter of 2014.

6:09 am Headwaters beats by $0.06, misses on revs; reaffirms FY15 EBITDA (HW) : Reports Q3 (Jun) earnings of $0.40 per share, $0.06 better than the Capital IQ Consensus of $0.34; revenues rose 8.9% year/year to $243.3 mln vs the $246.95 mln consensusm including ~6% organic growth despite significant weather impact in many parts of the U.S.

  • "We are seeing increased opportunities for bolt-on acquisitions that support our key strategic initiative of adding products to our existing core customers. We believe we can continue to execute transactions with leadership economics, driving revenue growth beyond organic levels... 
  • "on track to complete our fiscal year well within our Adjusted EBITDA guidance range of $155 to $170 million."

6:03 am Sunshine Heart beats by $0.05 (SSH) : Reports Q2 (Jun) loss of $0.35 per share, $0.05 better than the Capital IQ Consensus Estimate of ($0.40).

  • As previously reported, the COUNTER HF study was temporarily paused this past March after Sunshine Heart communicated to the FDA four deaths in the treatment arm of the study. The deaths were independently adjudicated as not being device or therapy related and, on May 26th, the Company announced that the FDA had approved resumption of patient enrollment into the study. Upon receiving the FDA's approval, the Company immediately provided participating sites all of the required documentation for IRB submission. To date, 15 of 27 sites have received IRB approval and are activated. Sunshine Heart currently expects the remaining 12 sites to receive approval by the end of August. Also, the Company is pleased to report that the first 3 patients have been enrolled in COUNTER HF shortly after sites were activated for a total of 51 enrollments in the study to date. 
  • During the quarter, Sunshine Heart also continued to make progress regarding development of its fully implantable system. Chronic animal studies are expected to occur in the latter half of 2015 and the Company is preparing to commence a first-in-human study using the novel transcutaneous energy transmission system and a new smaller implantable pump in Q3 2016.
Cash and cash equivalents on hand at June 30, 2015 was $33.4 million vs. $31.3 million at year-end 2014

5:49 am S&P futures vs fair value: +0.50. Nasdaq futures vs fair value: +1.60. :

5:49 am European Markets : FTSE...6707.33...+18.70...+0.30%.  DAX...11471.98...+28.30...+0.30%.

5:49 am Asian Markets : Nikkei...20520.36...-27.80...-0.10%.  Hang Seng...24406.12...-5.30...0.00%.

4:19 am Allot Comms reports EPS in-line, revs in-line; reaffirms FY15 revs guidance; approves $15 mln repurchase plan (ALLT) : Reports Q2 (Jun) loss of $0.09 per share, in-line with the Capital IQ Consensus Estimate of ($0.09); revenues fell 23.4% year/year to $21.6 mln vs the $21.48 mln consensus.

Guidance
Co reaffirms guidance for FY15, sees FY15 revs of $100-105 mln vs. $102.63 mln Capital IQ Consensus Estimate.

Share repurchase promgram
Additionally, co's Board approved a program for the Company to repurchase up to $15 million of its outstanding ordinary shares.

4:08 am Vulcan Materials misses by $0.26, beats on revs (VMC) : Reports Q2 (Jun) earnings of $0.35 per share, $0.26 worse than the Capital IQ Consensus Estimate of $0.61; revenues rose 13.1% year/year to $895 mln vs the $881.91 mln consensus.

Outlook
Co reaffirming our expectation for Adjusted EBITDA of $775 to $825 million, driven by strong growth in aggregates gross profit per ton, earnings improvement in our non-aggregates businesses and continuing leverage of our SAG expenses.

  • Through the first half of 2015, same-store aggregates volumes are up 7% and total aggregates pricing is up 5%. 
  • Co expects a higher rate of pricing growth in the second half. With respect to second half shipments, a key factor will be the ability of our customers to recover weather-delayed volume from the first half, which can be a challenge in a growing market where scheduled work is compressed into a shorter time period.

3:23 am Ctrip.com beats by $0.14, reports revs in-line; guides Q3 revs above consensus (CTRP) : Reports Q2 (Jun) earnings of $0.30 per share, $0.14 better than the Capital IQ Consensus Estimate of $0.16; revenues rose 47.1% year/year to $407.6 mln vs the $407.32 mln consensus. Co issues upside guidance for Q3, sees Q3 revs of +45-50% YoY to $505-520 mln vs. $495.76 mln Capital IQ Consensus Estimate.

2:33 am Delek Logistics Partners misses by $0.16, misses on revs (DKL) : Reports Q2 (Jun) earnings of $0.70 per share, $0.16 worse than the Capital IQ Consensus Estimate of $0.86; revenues fell 27.2% year/year to $172.1 mln vs the $280.56 mln consensus.

2:32 am Delek US Holdings beats by $0.24, beats on revs (DK) : Reports Q2 (Jun) earnings of $1.33 per share, $0.24 better than the Capital IQ Consensus Estimate of $1.09; revenues fell 28.7% year/year to $1.69 bln vs the $1.59 bln consensus.

2:28 am Otter Tail Power beats by $0.13, misses on revs; reaffirms FY15 EPS guidance (OTTR) : Reports Q2 (Jun) earnings of $0.36 per share, $0.13 better than the Capital IQ Consensus Estimate of $0.23; revenues fell 3.2% year/year to $188.2 mln vs the $200.15 mln consensus. Co reaffirms guidance for FY15, sees EPS of $1.50-1.65 vs. $1.56 Capital IQ Consensus Estimate.

12:58 am eLong receives non-binding 'Going Private' offer for $18 per ADS (LONG) : Co announced that its Board of Directors has received a preliminary non-binding proposal letter, dated August 3rd, 2015, from Tencent Holdings (TCEHY), proposing a "going-private" transaction to acquire all outstanding ordinary shares of eLong, not already beneficially owned by TCH Sapphire Limited which is a wholly owned subsidiary of Tencent, the major shareholders in the Company accounting for at least 70% in voting power of the Company and certain members of Company management, for $18 in cash per American depositary share.

  • The proposed purchase price represents a premium of approximately 24.1% to the closing trading price of the Company's ADS on July 31, 2015, the last trading day prior to the date hereof and a premium of 20.3% to the volume-weighted average closing price during the last 30 trading days.
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