InPlay from Briefing.com
9:54 am General Motors drops -3.5% to challenge its 200-day/50-day moving average cluster around 34.75 area (GM) :
9:43 am Opening Market Summary: Equities Open Modestly Higher (:WRAPX) :
The major averages opened Tuesday's session in positive territory with the S&P 500 sporting a gain of 0.2%.
Most sectors trade in the green this morning with energy (-0.1%), health care (-0.1%), and materials (-0.1%) being the only laggards. The heavily-weighted financial sector (+0.3%) is demonstrating relative strength for the second day in a row, extending its week-to-date gain to 1.0%. The real estate space is the top performer, up 0.7%.
U.S. Treasuries have ticked up recently in a curve-flattening trade. The 10-yr yield is unchanged at 2.30% while the 2-yr yield is lower by one basis point at 1.34%.
9:36 am General Motors reports July total sales of -15% YoY to 226107 units (GM) :
GM's U.S. commercial vehicles sales were up 40 percent from last July, the best July since 2007, led by strong large van sales (up 89 percent), small utilities (up 61 percent) and large pickup sales (up 21 percent).
Guidance on U.S. Vehicle Inventory Levels "We anticipate we will end 2017 at or below last year's level, with fewer cars and more trucks, crossovers and utilities in the mix. Pickup, crossovers and utility sales, GM's strength, are expected to be stronger in the second half of 2017 vs. the first half of the year. We continue to monitor the marketplace and will make additional production adjustments if needed."
9:30 am Qualys to acquire Nevis Networks (QLYS) : . This asset purchase is expected to provide significant domain expertise in passive scanning technologies and allow Qualys to accelerate its move into the adjacent market of mitigation and response at endpoints. Nevis has built a series of high performance security products that extend similar levels of protection found in the perimeter to all users on enterprise LANs. Qualys expects the transaction to close during the third quarter of 2017.
9:26 am On The Wires (:WIRES) :
PCTEL, Inc. (PCTI) has sold the assets of its Network Engineering Services business based in Melbourne, Florida, to Gabe's Construction Company, Inc.
Buss Global, a group focused on investments in intermodal containers, announced that its affiliate, Marine Container Management has completed the acquisition of approximately 182,000 TEU of standard dry freight and refrigerated containers from Magellan Maritime Services, which commenced insolvency proceedings in Germany in September 2016. MCM has appointed Textainer Group Holdings (TGH), one of the world's largest lessors of intermodal containers, as the manager of the acquired containers. Textainer has managed intermodal containers for entities affiliated with Buss Global for over ten years.
CyberOptics (CYBE) to unveil the new SQ3000-DD 3D Automated Optical Inspection system with two Multi-Reflection Suppression (:MRS) Sensors in Booth 1J45 at NEPCON South China, scheduled to take place August 29-31, 2017 at the Shenzhen Convention & Exhibition Center.
FARO (FARO) releases the latest addition to the FARO Focus Laser Scanner portfolio. The FARO Focus 70 is a high accuracy, short range scanner specifically designed for architecture, engineering, construction, product design and public safety-forensics professionals.
9:23 am Threshold Pharma to conduct a 1:11 reverse split (THLD) :
The reverse stock split will become effective at 5:00 p.m. EDT on August 1, 2017. Subject to the satisfaction of customary closing conditions, the closing of the merger with Molecular Templates is expected to occur shortly following the effectiveness of the reverse stock split.
Additionally, an equity financing in the amount of $40 million is expected to close following the closing of the merger with Molecular Templates, and a separate $20 million equity investment is expected to close following the $40 million financing.
Assuming the closing of the merger occurs as expected, the shares of common stock for the combined company, which will be renamed Molecular Templates, Inc., will commence trading on The NASDAQ Stock Market on a post-reverse stock split basis under the new symbol "MTEM" on August 2, 2017.
9:18 am Ford Motor July 2017 sales results; (F) :
Highlights (U.S. Sales):
Total vehicle sales down 7.5%
Sales of 200,212 vehicles
Retail sales down 1%
Retail share was up during the last three month period, including July
Fleet sales down 26.4%
Due to decline in rental and commercial sales.
Half of the decline attributed to lower transit sales tied to delivery hold
Truck sales down 7.1%
SUV sales up 2.2%
SUV's provided a YTD record
positioned well for launches of Expedition and EcoSport
Escape (+5.5%) and Edge (+6.1%) sales were very strong
Car sales down 19.4%
Days supply down y/y
F-Series saw another strong quarter, sales were up 5.8% with 69,467 units sold
9:17 am S&P futures vs fair value: +8.80. Nasdaq futures vs fair value: +25.60. (:WRAPX) :
Buyers have the edge this morning following Monday's mixed finish and ahead of Apple's (AAPL 149.10, +0.37) latest earnings report, which will be released following the closing bell. The S&P 500 futures currently trade nine points, or 0.4%, above fair value.
U.S. Treasuries are trading lower after June personal income missed expectations (0.0% actual vs +0.3% Briefing.com consensus). However, June personal spending (+0.1%) and the June core PCE Price Index (+0.1%) both met expectations. The benchmark 10-yr yield is two basis points higher at 2.31%.
Investors will receive two additional pieces of economic data today--June Construction Spending (Briefing.com consensus 0.5%) and the July ISM Index (Briefing.com consensus 56.2). Both reports will be released at 10:00 ET. Also of note, July auto and truck sales will be released throughout the day.
In U.S. corporate news, Pfizer (PFE 33.10, -0.06) is down 0.2% in pre-market action after a mixed earnings report; the Dow component beat earnings estimates but fell short of revenue expectations. Meanwhile, Under Armour (UAA 19.03, -1.01) has dropped 5.0% after announcing a restructuring plan and lowering its guidance for the fiscal year.
Elsewhere on the earnings front, Cummins (CMI 158.50, -9.47) has tumbled 5.6% this morning after missing earnings estimates, Simon Properties (SPG 162.05, +3.55) is up 2.2% after beating bottom-line estimates, and Sprint (S 8.34, +0.36) is up 4.1% after beating earnings expectations and raising its profit guidance.
Crude oil's six-session winning streak is in danger as the commodity currently trades lower by 0.4% at a price of $49.93/bbl. Meanwhile, the U.S. Dollar Index (92.83, +0.16) is higher by 0.2%.
9:17 am Navient acquires Duncan Solutions, a transportation revenue management company serving municipalities and toll authorities w/ approx. $55 mln in annual revs, for approx. $80 mln (NAVI) :
9:14 am TEGNA beats by $0.02, reports revs in-line; sees Q3 revs declining in high-single to low-double digits (TGNA) :
Reports Q2 (Jun) earnings of $0.29 per share, $0.02 better than the Capital IQ Consensus of $0.27; revenues rose 2.6% year/year to $489.36 mln vs the $486.29 mln Capital IQ Consensus.
Adjusted EBITDA was $171.5 million in the quarter and the Adjusted EBITDA margin equaled 35 percent. Adjusted EBITDA excluding corporate expenses totaled $185.6 million which resulted in a margin of 38 percent.
Outlook: Total company revenue comparisons will be unfavorably impacted by the absence of record Olympic revenue in 2016 and substantially lower political advertising than a year ago, as well as the conclusion of a transition services agreement for several digital marketing services and the absence of revenue from the sale of Cofactor last year. As a result, total company revenue is expected to decline in the high-single digits to low-double digits in the third quarter of 2017 compared to the year-ago quarter (current estimate is for Q3 revs to decline 41% to $501.5 mln). However, on a comparable basis, excluding the impact of the Olympics, political spending, the conclusion of a transition services agreement for several digital marketing services previously reported in the Digital Segment and Cofactor, total company revenue is expected to increase in the mid-single digits year-over-year.
9:13 am Peapack-Gladstone Financial acquires Gladstone, NJ-based, Murphy Capital Management, a SEC Registered Investment Adviser, effective August 1, 2017 (PGC) : With a combined market value of approximately $4.7 billion of client assets under management and administration, and offices in Bedminster, Gladstone, Morristown, Princeton and Teaneck, as well as a trust office in Greenville, Delaware, the private wealth management division of Peapack-Gladstone Bank is the largest New Jersey-headquartered, bank-owned trust company in the state.
9:09 am I.D. Systems acquires Keytroller, a manufacturer and marketer of electronic products for managing forklifts, construction vehicles, and other industrial equipment; terms not disclosed (IDSY) : In 2016, Keytroller generated $6.6 million in revenue and net income of $1.5 million. Keytroller has achieved average annual revenue growth of more than 25% per year over the past three years.
9:08 am Procter & Gamble files proxy statement w/ SEC; 'expects to drive 2% to 3% organic sales growth in fiscal 2018', reaffirms expectations for core earnings per share growth of 5% to 7% (PG) :
9:07 am Bank of Princeton commences trading on Nasdaq, prices underwritten public offering of 1.5 mln shares of its common stock at a price to the public of $32/share (BPRN) : The Bank of Princeton intends to use the proceeds for general corporate purposes, additional organic growth through its loan portfolio or through strategic acquisitions, financings, investments, and capital expenditures.
9:04 am Fiat Chrysler reports July US sales -10% y/y to 161477 units and retail sales -6% y/y to 145,391 units (FCAU) :
In line with FCA's strategy to reduce sales to the daily rental segment, fleet sales of 16,086 units were down, as expected, 35 percent year over year.
9:03 am Scripps has acquired the Katz broadcast networks, which distribute programming for targeted audiences over the air, in a deal worth $302 million (SSP) :
Scripps intends to finance the transaction with $250 million of new debt and about $50 million of cash on hand. Upon closing, Scripps' leverage is expected to be about 3x on a pro forma 2017/18 blended basis.
At June 30, 2017, Scripps had $150 million of cash on its balance sheet and unfunded revolver commitments of $125 million.
The four national networks, Bounce, Grit, Escape and Laff each reach more than 80 percent of all U.S. households and 'are among the fastest-growing in television today.'
The four networks are forecast to generate about $180 million in revenue and about $30 million in segment profit in 2018. The transaction is expected to be accretive to Scripps' earnings in 2018 and beyond.
9:02 am Cree reaches settlement in its patent infringement lawsuit with E. Mishan and Sons; 'Emson has agreed to an exclusive supply agreement to purchase market leading Cree high power LEDs for its high performance tactical flashlights ' (CREE) :
9:02 am Skyline Medical signs binding letter of intent for a merger transaction with privately held biomedical company CytoBioscience (SKLN) :
CytoBioscience creates and manufactures devices used in human cell research focused on new therapeutic drug development and has a well-known scientific and technical staff, collaborative partnerships with leading pharmaceutical companies and strategic alliances with key groups and academic institutions. CytoBioscience has reported a current backlog of $6 million in orders and anticipated contract research work.
The merger is expected to close by September 30, 2017.
8:50 am S&P futures vs fair value: +7.80. Nasdaq futures vs fair value: +20.90. (:WRAPX) :
The S&P 500 futures trade eight points, or 0.3%, above fair value.
Equity indices in the Asia-Pacific region ended Tuesday on a higher note. Regional economic data included below-consensus Manufacturing PMI readings from India and Japan while China's Caixin Manufacturing PMI beat expectations. The People's Bank of China reportedly uncovered operational violations at 40 Chinese banks. The banks have up to six months to correct the issues. In Japan, Chief Cabinet Secretary Yoshihide Suga confirmed that Prime Minister Shinzo Abe plans to reshuffle his cabinet on August 3. The Reserve Bank of Australia left its cash rate unchanged at 1.50%, as expected. The central bank noted that the relative strength of the Australian dollar results from weakness in the U.S. dollar. The Reserve Bank of India will meet overnight.
In economic data:
Japan's July Manufacturing PMI 52.1 (expected 52.2; last 52.2)
China's July Caixin Manufacturing PMI 51.1 (consensus 50.4; last 50.4)
India's Nikkei July Manufacturing PMI 47.9 (expected 50.8; last 50.9)
South Korea's July Nikkei Manufacturing PMI 49.1 (last 50.1)
Australia's July AIG Manufacturing Index 56.0 (last 55.0)
South Korea's July CPI +0.2% month-over-month (last -0.1%); +1.9% year-over-year (consensus 2.0%; last 1.9%). July trade surplus narrowed to KRW10.65 billion from KRW10.77 billion. July Imports +14.5% year-over-year (last 19.8%) and July Exports +19.5% year-over-year (last 13.6%)
---Equity Markets---
Japan's Nikkei edged up 0.3%. Toshiba spiked 11.0% while Nitto Denko, Yamato Holdings, Teijin, Sumitomo Mitsui Financial, T&D Holdings, Dentsu, Sumitomo Mitsui, Sony Financial Holdings, and Mitsubishi advanced between 1.8% and 3.7%.
Hong Kong's Hang Seng climbed 0.8%, nearing its high from 2015. Financials ended in the lead with Ping An Insurance, China Life Insurance, BoC Hong Kong, Bank of China, Bank of East Asia, China Construction Bank, ICBC, and Hang Seng Bank climbed between 0.8% and 4.1%. On the downside, Geely Automobile lost 1.8%.
China's Shanghai Composite slipped from its high in afternoon action, but charged to a fresh high into the close, adding 0.6%. Shanghai Jin Jiang International Industrial Investment, Shanghai Lujiazui Finance & Trade Zone Development, Anhui Expressway, Bestsun Energy, and Beijing Teamsun Technology gained between 4.5% and 5.1%.
India's Sensex ticked up 0.2% with more than half of its components moving higher. Hero MotoCorp, Maruti Suzuki, and Mahidra&Mahindra gained between 1.8% and 2.1% while tech consultants were mixed. Wipro gained 1.8%, Tata Consultancy shed 0.2%, and Infosys lost 0.6%. Lupin was the weakest performer, falling 1.4%.
Major European indices trade higher across the board while the euro (1.1810) has shed 0.3% against the dollar after hitting a 19-month high against the greenback yesterday afternoon. British Chancellor Philip Hammond said Brexit will not be postponed or delayed, but the balancing of the UK's budget may be delayed.
In economic data:
Eurozone Q2 GDP +0.6% quarter-over-quarter, as expected (last 0.5%); +2.1% year-over-year (consensus 2.4%; last 1.9%). July Manufacturing PMI 56.6 (expected 56.8; last 56.8)
Germany's July Manufacturing PMI 58.1 (expected 58.3; last 58.3). July Unemployment Change -9,000 (consensus -5,000; last 6,000) and Unemployment Rate held at 5.7%, as expected
UK's July Manufacturing PMI 55.1 (expected 54.4; last 54.2). July Nationwide HPI +0.3% month-over-month (expected -0.1%; last 1.1%); +2.9% year-over-year (consensus 2.7%; last 3.1%)
France's July Manufacturing PMI 54.9 (expected 55.4; last 55.4)
Italy's July Manufacturing PMI 55.1 (consensus 55.2; last 55.2)
Spain's July Manufacturing PMI 54.0 (expected 54.5; last 54.7)
---Equity Markets---
Germany's DAX is higher by 0.7% with most components trading in the green. Lufthansa has spiked 2.6% while Prosiebensat 1, Heidelbergcement, and Infineon are up between 1.5% and 1.7%. BMW, Daimler, and Volkswagen show gains between 0.8% and 1.5%. Adidas is the weakest component, falling 0.9%.
France's CAC trades up 0.7% with heavyweights among the leaders. Peugeot, Airbus Group, Renault, Louis Vuitton, and Total have added between 1.3% and 1.8%. A handful of consumer names lag with Danone and Pernod Ricard shedding 0.4% and 0.6%, respectively.
UK's FTSE has climbed 0.8%. Rolls-Royce has surged 9.6% in reaction to upbeat earnings while BP has climbed 3.2% after it too beat estimates. Consumer stocks like Paddy Power, Imperial Brands, Taylor Wimpey, Burberry, and British American Tobacco show gains between 1.4% and 2.0%. On the downside, select miners like Fresnillo, Anglo American, and Randgold Resources show losses between 0.4% and 2.4%.
8:47 am On The Wires (:WIRES) :
Cellectar Biosciences (CLRB) initiates a collaboration with Avicenna Oncology GmbH, a precision medicine company based in Basel, Switzerland. The collaboration will focus on the development of new phospholipid drug conjugates combining Cellectar's patented phospholipid ether delivery platform with Avicenna's novel cytotoxic payloads.
AstroNova (ALOT) has been selected by one of Latin America's Top 10 airlines to provide their ToughWriter 640 narrow format flight deck printer for its future fleet of Boeing 737 MAX aircraft.
Oshkosh (OSK) announced that the U.S. Army has placed another order for the Joint Light Tactical Vehicle (:JLTV) program including 748 vehicles and 2,359 installed and packaged kits. The order valued at more than $195 million, is the fifth order for JLTVs since the contract was awarded in August 2015.
Catasys (CATS) expanded its OnTrak-A program with one of the 'nation's leading health insurance providers' to now include anxiety in three states: Illinois, Kansas and Missouri.
8:46 am Aspen Group approved for listing on the Nasdaq Capital Market effective Wednesday, August 2 (ASPU) :
8:45 am European Summary (BONDX) :
Core Yields Inch Lower
The first half of the European session has been underscored by slim gains in core debt. Today's modest gains come after nearly a week of sideways action. The euro has shed 0.3% to 1.1810 against the U.S. dollar after hitting a 19-month high yesterday. British Chancellor Philip Hammond pushed back against suggestions that Brexit may be delayed or postponed. European economic data showed mostly disappointing revisions to Manufacturing PMI readings, but the figures remained in expansion despite pulling back.
Economic Data:
Eurozone Q2 GDP +0.6% quarter-over-quarter, as expected (last 0.5%); +2.1% year-over-year (consensus 2.4%; last 1.9%). July Manufacturing PMI 56.6 (expected 56.8; last 56.8)
Germany's July Manufacturing PMI 58.1 (expected 58.3; last 58.3). July Unemployment Change -9,000 (consensus -5,000; last 6,000) and Unemployment Rate held at 5.7%, as expected
UK's July Manufacturing PMI 55.1 (expected 54.4; last 54.2). July Nationwide HPI +0.3% month-over-month (expected -0.1%; last 1.1%); +2.9% year-over-year (consensus 2.7%; last 3.1%)
France's July Manufacturing PMI 54.9 (expected 55.4; last 55.4)
Italy's July Manufacturing PMI 55.1 (consensus 55.2; last 55.2)
Spain's July Manufacturing PMI 54.0 (expected 54.5; last 54.7)
New Issuance:
Germany sold EUR3.20 billion of 2-year Schatz bonds at a yield of -0.63% with a bid-to-cover of 2.0
UK's GBP2.25 billion 10-yr gilt reopening drew a yield of 1.267% with a bid-to-cover of 2.56
Yield Check:
France, 10-yr OAT: -1 bp to 0.79%
Germany, 10-yr bund: -1 bp to 0.52%
Greece, 10-yr note: +1 bp to 5.21%
Italy, 10-yr BTP: -1 bp to 2.08%
Portugal, 10-yr PGB: +1 bp to 2.87%
Spain, 10-yr ODE: UNCH at 1.49%
U.K., 10-yr gilt: +1 bp to 1.24%
8:36 am National Retail Properties beats by $0.02, beats on revs; raises FY17 core FFO guidance (NNN) :
Reports Q2 (Jun) core FFO of $0.64 per share, $0.02 better than the Capital IQ Consensus of $0.62; revenues rose 11.2% year/year to $145.55 mln vs the $142.83 mln Capital IQ Consensus. AFFO for Q2 was $0.65 per share.
Co issues in-line guidance for FY17, sees core FFO of $2.46-2.50, excluding non-recurring items, vs. $2.48 Capital IQ Consensus Estimate and vs prior guidance of $2.44-2.48. AFFO for 2017 is expected to be $2.50-2.54.
"National Retail Properties enjoyed another impressive quarter, driven by our healthy portfolio, our selectively underwritten acquisitions, and our flexible, low leverage balance sheet, all of which has positioned us to raise our guidance and, as previously announced, to raise our common dividend for the 28th consecutive year, a record matched by only three other REITs and less than 90 public companies in the United States."
8:34 am S&P futures vs fair value: +6.00. Nasdaq futures vs fair value: +19.80. (:WRAPX) :
The S&P 500 futures currently trade six points, or 0.2%, above fair value.
Just in, personal income was unchanged in June (Briefing.com consensus +0.3%) after a downwardly revised 0.3% increase for May (from 0.4%). Personal spending rose 0.1%, as expected, while the prior month's reading was revised to 0.2% from 0.1%.
The core PCE Price Index, which excludes food and energy, increased 0.1%, as expected.
8:33 am Cerus signs two, new, expanded contracts with tablissement Franais du Sang, the French National Blood Service, for the INTERCEPT Blood System (CERS) : One contract covers the supply of INTERCEPT Platelet kits while the other is for the purchase of additional Illuminators to help support the roll-out to new regions. The initial term of this platelet kit supply agreement is two years with two one-year extension options, supporting INTERCEPT platelet production in all EFS regional centers.
8:33 am Simon Properties beats by $0.03, reports revs in-line; guides FY17 FFO in-line (SPG) :
Reports Q2 (Jun) funds from operations of $2.47 per share, $0.03 better than the Capital IQ Consensus of $2.44; revenues rose 3.5% year/year to $1.36 bln vs the $1.37 bln Capital IQ Consensus
Growth in comparable FFO per diluted share for the three months ended June 30, 2017 was 7.6%
Total portfolio NOI growth for the three months ended June 30, 2017 was 5.0% and was 5.3% for the six months ended June 30, 2017
Co issues in-line guidance for FY17, sees FFO of $11.14-11.22 vs. $11.21 Capital IQ Consensus Estimate.
8:32 am Cidara Therapeutics announces publication of data, in the journal Antimicrobial Agents and Chemotherapy, from an in vivo study investigating the deep tissue distribution of CD101 compared tomicafungin in the setting of intra-abdominal candidiasis (CDTX) :
The study is the first to use MALDI-MS imaging, a powerful tool that enables investigators to acquire molecular information about drug distributions in tissues, as well as drug quantification methods, in a clinically relevant mouse intra-abdominal abscesses model.
Results show that CD101 had a dose-dependent four-to-six-fold superior penetration into infectious lesions days after the single CD101 dose as compared to daily micafungin.
CD101 accumulated at levels that would be expected to prevent mutations leading to antifungal resistance.
"The in vivo data published in AAC confirm the potential of CD101 as a future treatment option for patients with IAC because of the extraordinary tissue penetration at the site of infection." said David Perlin, Ph.D., executive director and professor, PHRI.
8:31 am Sientra enters a settlement agreement regarding mutual IP ownership and contract disputes with its former breast implant contract manufacturer, Silimed-Indstria de Implantes; co to pay $10 mln and up to $5 mln in royalty payments (SIEN) :
The settlement resolves all claims that the parties filed against each other, and clears the path for Sientra to execute on its going-forward plans, unencumbered and undistracted by these disputes.
The Company has also agreed to pay Silimed a lump sum of $9,000,000 within 30-days of execution of the Settlement Agreement, and $1,000,000 on or by July 1, 2018.
In addition, should the Company enter into international markets using certain breast implant specifications, the Company has agreed to make royalty payments of $12.50 on its net sales of such products, up to a maximum royalty of $5,000,000.
The Settlement Agreement was a compromise and settlement of disputed claims between the parties and not an admission of liability which was expressly denied.
8:31 am Medovex reports initial results from the first cases conducted in Germany for the DenerveX System; 'excellent initial success' (MDVX) :
Dr. Martin Deeg stated, "Both of the first two DenerveX System cases met with what I consider excellent initial success. Both patients experienced initial pain reduction of the Facet Joint during the actual running of the device. Additionally, both patients walked out of the procedure room on their own power and were discharged shortly following the procedure."
Case One: Female, 40 years old, L4, two joints treated. Patient had injection local only at the facet joint. At the end of the procedure the patient moved herself from the table and walked under her own power out of the procedure room and was discharged shortly after with no pain prescription provided other than over the counter pain relief medicines.
Case Two: Male, 42 year old, L5, two joints treated. Patient had an injected local only at the facet joint. At the end of the procedure the patient moved from the table and walked out of the procedure room on their own power and was discharged shortly after, again no pain relief prescriptions provided only over the counter medicines recommended.
8:27 am On The Wires (:WIRES) :
Workhorse (WKHS) announced that Brink's (BCO) has purchased two Workhorse Class 5 E-GEN and E-100 chassis, paired with a Brink's custom logistics body. The E-100 all-electric truck and the E-GEN electric extended-range truck will be deployed in California and Chicago to enhance the Brink's U.S. fleet with cleaner, more economic vehicles.
WPP (WPPGY) announces that tenthavenue, its global out of home media and experiential marketing division, is investing in LOOM Media, a US-based start-up company specializing in creating opportunities for brands to sponsor urban innovation.
ParkerVision, Inc. (PRKR) will begin taking orders for Milo, its new distributed Wi-Fi system for consumers, by the middle of August. Milo will initially be available for purchase at Amazon.com, as well as the Milo online store at milowifi.com.
Acceleron (XLRN) announced that the first patient has been treated in a Phase 2 clinical trial of ACE-083, the Company's locally acting muscle agent, for the treatment of patients with Charcot-Marie-Tooth disease (CMT), a commonly inherited neurological disease leading to focal muscle weakness. The phase 2 trial in CMT expands wholly-owned ACE-083 program and muscle franchise into new area of high unmet medical need
8:19 am Ecolab beats by $0.01, beats on revs; guides Q3 EPS in-line; reaffirms FY17 EPS guidance (ECL) :
Reports Q2 (Jun) earnings of $1.13 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $1.12; revenues rose 4.4% year/year to $3.46 bln vs the $3.40 bln Capital IQ Consensus.
Co issues in-line guidance for Q3, sees EPS of $1.36-1.44, excluding non-recurring items, vs. $1.42 Capital IQ Consensus Estimate.
Co reaffirms guidance for FY17, sees EPS of $4.70-4.90, excluding non-recurring items, vs. $4.79 Capital IQ Consensus Estimate.
"Our business is improving and we remain positioned to deliver good results for the year. [Q2] results were as expected, with our Institutional, Industrial and Other segments showing continued sales acceleration and our Energy segment sales moved to growth. Our operating income was virtually flat with last year as all of our good work driving sales, pricing and cost savings were largely offset by higher delivered product costs including a currency hedging headwind."
"We already have solid new business and pricing momentum across all of our segments. In addition, we expect delivered product costs including hedging to be less of a year-on-year headwind in the second half...In total, we forecast a strong second half delivering a good 2017, and expect to exit the year with excellent momentum moving into 2018."
8:16 am ManTech receives a multi-year award IDIQ contract with a total ceiling value of $200 million to provide support for Defense Advanced Research Projects Agency's Scientific, Engineering, and Technical Assistance program (MANT) :
8:14 am Royal Caribbean beats by $0.04, reports revs in-line; guides Q3 EPS above consensus; guides FY17 EPS above consensus (RCL) :
Reports Q2 (Jun) earnings of $1.71 per share, $0.04 better than the Capital IQ Consensus of $1.67 and above prior guidance of $1.60-1.65; revenues rose 4.3% year/year to $2.20 bln vs the $2.19 bln Capital IQ Consensus.
Co issues upside guidance for Q3, sees EPS of approx $3.45, excluding non-recurring items, vs. $3.30 Capital IQ Consensus Estimate.
Co issues upside guidance for FY17, sees EPS of approx $7.35-7.45, excluding non-recurring items, vs. $7.25 Capital IQ Consensus Estimate and vs prior guidance of $7.00-7.20.
"Our brands are executing beautifully, keeping the business in an exceptionally strong position...Strong close-in demand for cruise bolstered the quarter, and we see further uplift for the balance of the year, positioning us well for the Double-Double and beyond."
Gross Yields were up 10.2% on a Constant-Currency basis. Net Yields on a Constant-Currency basis increased 11.5%, exceeding prior guidance due to strong close-in demand driving higher pricing and occupancy.
8:14 am Vertex Pharma announces that the FDA has approved KALYDECO (ivacaftor) for use in more than 600 people with cystic fibrosis; increases guidance for KALYDECO product revenues (VRTX) :
This approval was based on Phase 3 clinical data for KALYDECO in these mutations and follows the FDA's approval of KALYDECO in May 2017 for 23 other residual function mutations, which was based on analyses of in vitro data. Both approvals are supported by more than five years of real-world clinical experience that demonstrate KALYDECO's established safety and efficacy profile.
Based on today's approval, Vertex increased its guidance for 2017 KALYDECO product revenues to a range of $770 million to $800 million (prior: $740 to $770 million).
Vertex's guidance range for total CF product revenues in 2017 is now $1.87 billion to $2.1 billion (prior: $1.84-$2.07 billion), including ORKAMBI guidance of $1.1 billion - $1.3 billion (prior: $1.1-1.3 billion).
"In the five years since KALYDECO became the first approved medicine to treat the underlying cause of cystic fibrosis, we have been relentless in our efforts to bring this important medicine to all who may benefit," said Jeffrey Chodakewitz, M.D., Executive Vice President and Chief Medical Officer at Vertex. "We will continue to pursue this goal until all people with CF have a medicine that treats their form of this serious and life-shortening disease."
8:11 am Overnight Treasury Market Summary (BONDX) :
Little Changed Once Again
U.S. Treasuries have spent the night inside a narrow range, which leaves the market on track for a flat start. However, some movement is expected to follow the 8:30 ET release of June Personal Income (Briefing.com consensus 0.3%), Personal Spending (Briefing.com consensus 0.1%), and core PCE Prices (Briefing.com consensus 0.1%). Treasuries held their ground overnight, showing little reaction to Asian economic data, which showed below-consensus Manufacturing PMI readings from Japan and India while China's Caixin Manufacturing PMI beat expectations after the official reading missed estimates on Monday. The Reserve Bank of Australia held its cash rate at 1.50%, as expected. The central bank's statement noted that strength of the Australian dollar is mostly due to the underperformance of the greenback. The S&P 500 futures trade five points above fair value while crude oil is down 0.6% at $49.89/bbl. The Dollar Index is up 0.1% after ending yesterday's session at its lowest level since May 2016.
Yield Check:
2-yr: UNCH at 1.36%
5-yr: +1 bp to 1.84%
10-yr: UNCH at 2.30%
30-yr: UNCH at 2.90%
International News:
Japan's July Manufacturing PMI 52.1 (expected 52.2; last 52.2)
China's July Caixin Manufacturing PMI 51.1 (consensus 50.4; last 50.4)
India's Nikkei July Manufacturing PMI 47.9 (expected 50.8; last 50.9)
South Korea's July Nikkei Manufacturing PMI 49.1 (last 50.1) Australia's July AIG Manufacturing Index 56.0 (last 55.0) South Korea's July CPI +0.2% month-over-month (last -0.1%); +1.9% year-over-year (consensus 2.0%; last 1.9%). July trade surplus narrowed to KRW10.65 billion from KRW10.77 billion. July Imports +14.5% year-over-year (last 19.8%) and July Exports +19.5% year-over-year (last 13.6%)
Eurozone Q2 GDP +0.6% quarter-over-quarter, as expected (last 0.5%); +2.1% year-over-year (consensus 2.4%; last 1.9%). July Manufacturing PMI 56.6 (expected 56.8; last 56.8)
Germany's July Manufacturing PMI 58.1 (expected 58.3; last 58.3). July Unemployment Change -9,000 (consensus -5,000; last 6,000) and Unemployment Rate held at 5.7%, as expected
Data out Today:
June Personal Income (Briefing.com consensus 0.3%), Personal Spending (Briefing.com consensus 0.1%), core PCE Prices (Briefing.com consensus 0.1%) at 8:30 ET
June Construction Spending (Briefing.com consensus 0.5%) at 10:00 ET
July ISM Index (Briefing.com consensus 56.2) at 10:00 ET July auto and truck sales reported throughout the day
8:11 am Precipio to offer for sale its common stock and warrants in an underwritten public offering; size not disclosed (PRPO) : The Company intends to use the net proceeds from this offering for the repayment of debt, growth of its sales force, progression of its product development and for working capital and general corporate purposes.
8:10 am HCP beats by $0.01, reports revs in-line; reaffirms FY17 FFO guidance in-line (HCP) :
Reports Q2 (Jun) funds from operations of $0.48 per share, $0.01 better than the Capital IQ Consensus of $0.47; revenues fell 14.8% year/year to $458.9 mln vs the $456.29 mln Capital IQ Consensus.
Co reaffirms guidance for FY17, sees FFO of $1.89-1.95 vs. $1.94 Capital IQ Consensus Estimate
In addition, co expects 2017 SPP Cash NOI to increase between 2.5-3.5%
Tandem debt investment update:
During the second quarter, continued challenges in the post-acute/skilled nursing operating environment and tenant-specific headwinds contributed to a decline in the financial performance of the assets underlying our Tandem debt investment
"As a result, the fair value of our collateral, net of the senior mortgage debt, fell below the carrying value of our investment. As part of our quarterly review process, we recorded a $57 million impairment write-down during the second quarter and reduced the carrying value of our Tandem debt investment to $200 million"
"On July 31, subsequent to the aforementioned impairment, we entered into a definitive agreement to sell our Tandem debt investment for $197 million, subject to customary closing conditions. This investment represents our last meaningful exposure to both post-acute/skilled-nursing assets and highly-leveraged mezzanine investments. The transaction is expected to close during 2017"
8:09 am Independence Realty Trust beats by $0.01, reports revs in-line; guides FY17 FFO in-line (IRT) :
Reports Q2 (Jun) funds from operations of $0.19 per share, $0.01 better than the Capital IQ Consensus of $0.18; revenues rose 2.9% year/year to $39.43 mln vs the $39.43 mln Capital IQ Consensus.
Co issues in-line guidance for FY17, sees FFO of $0.73-0.76 vs. $0.74 Capital IQ Consensus Estimate.
8:07 am athenaHealth announces a 'comprehensive review of its operations, cost structure and capital allocation'; has identified approx. $100 mln in cost-savings opportunities and to separate chairman and CEO role (ATHN) :
In conducting its review, athenahealth has identified ~$100 million in cost-savings opportunities 'that will drive efficiency and targeted investment in the Company's hospital and network services businesses.'
athenahealth will provide additional information regarding details of these strategic initiatives, including plans to significantly increase operating margins, in 2018 and thereafter, by its 3Q17 earnings release anticipated in October 2017.
athenahealth also intends to establish the role of president.
The Board has retained a leading search firm to fill the president and CFO roles promptly.
The Board plans to separate the roles of chairman and CEO and is working to recruit an independent chairman.
In addition, the Board has begun a search process to appoint an additional independent director.
8:07 am Meritage beats by $0.22, beats on revs; raises revenue guidance (MTH) :
Reports Q2 (Jun) earnings of $0.98 per share, $0.22 better than the Capital IQ Consensus of $0.76; revenues rose 0.5% year/year to $802 mln vs the $760.39 mln Capital IQ Consensus. Home closing revenue was consistent with the prior year, as a 3% increase in average closing price offset a 2% decrease in home closings compared to the second quarter of 2016. The West and Central regions delivered year-over-year increases of 11% and 9% in home closing revenue, respectively, reflecting strong growth in Arizona and Texas. A 21% decline in East region home closing revenue reflected lower orders over the last three quarters as the region was going through a product library upgrade which delayed the openings of a number of communities.
Total orders for the second quarter increased 4% year-over-year due to strong demand in the West and Central regions. Orders increased 30% over the second quarter of 2016 in Texas, as a result of a 24% increase in average active communities during the quarter and a 5% increase in absorptions (orders per average active community). Orders increased 2% in the West on a 4% increase in absorptions that was mostly offset by a 3% decline in average community count. East region orders were down 13% compared to the prior year's second quarter, primarily due to a 12% decline in absorptions. Home closing gross margin was 17.7% for the second quarter of 2017, compared to 17.3% in the second quarter of 2016. The margin improvement reflects increases in home prices that generally offset increases in land and construction costs, as well as improved leverage of construction overhead expenses.
"Housing market conditions remain healthy and Meritage is well-positioned in many of the best markets. We believe that demand for new homes will continue to be strong, and we are prepared to take advantage of it," Mr. Hilton concluded. "We are on track to deliver approximately 7,600-8,000 homes and generate estimated total closing revenue of $3.2-3.4 billion for the year (up from $3.1-3.2 bln vs. $3.27 bln consensus). We anticipate pricing power in most markets will allow us to maintain gross margins consistent with 2016 while generating ~$230-250 million in pre-tax earnings through a combination of cost management and operating leverage with our anticipated revenue growth."
8:07 am GenMark Diagnostics misses by $0.05, reports revs in-line (GNMK) :
Reports Q2 (Jun) loss of $0.37 per share, $0.05 worse than the Capital IQ Consensus of ($0.32); revenues fell 1.2% year/year to $12.36 mln vs the $12.44 mln Capital IQ Consensus.
"We are delighted to have accomplished several important goals in the second quarter. Our team achieved FDA 510(k) clearance of the ePlex instrument and Respiratory Pathogen Panel as well as CE Mark for all three of our Blood Culture ID Panels," said Hany Massarany, President and Chief Executive Officer of GenMark. "In addition, we significantly strengthened our balance sheet, which will enable us to bring even more focus to the global commercialization of our ePlex System and its menu expansion," added Massarany.
8:05 am Bayer AG and Rothamsted Research sign strategic framework agreement (BAYRY) :
Cos have entered into a strategic framework agreement to improve collaborations in scientific areas that will support the development of more customized agronomic solutions for farmers.
Building on a track record of collaborations, the partners are forming this strategic alliance to support a digital revolution for detecting and managing biotic threats such as pests, pathogens and weeds more sustainably. Co-ordinated activities, in the laboratory and in the field, will generate the data, know-how, tools and technologies that help to support a transition to smarter crop protection.
8:05 am LogMeIn acquires Nanorep all of the outstanding equity interests in Nanorep for a purchase price of approximately $45 million; NanoRep is a digital self-service, chatbot and virtual assistant company (LOGM) : Headquartered in Herzliya, Israel, Nanorep harnesses artificial intelligence and patented natural language processing technologies to create solutions that make self-service more engaging and intuitive. LogMeIn is also expected to pay up to $5 million in contingent cash payments to certain continuing employees of Nanorep upon their achievement of milestone and retention targets over the two-year period following the closing of the transaction.
8:05 am Fiserv acquires the assets of PCLender, a provider of enterprise internet-based mortgage software and mortgage lending technology solutions; terms not disclosed (FISV) :
8:04 am Nant Health: Blue Cross and Blue Shield of Nebraska has signed a three-year contract extension for NaviNet Open (NH) :
8:04 am American Railcar Industries misses by $0.04, misses on revs (ARII) :
Reports Q2 (Jun) earnings of $0.57 per share, $0.04 worse than the Capital IQ Consensus of $0.61; revenues fell 27.6% year/year to $109 mln vs the $113.62 mln Capital IQ Consensus
This decrease was due to decreased revenues in the manufacturing segment, partially offset by slightly increased revenues in the railcar leasing and railcar services segments
Lease fleet reaches 12,414 railcars as of June 30, 2017 vs. 10,641 railcars as of June 30, 2016, with 545 railcars added during the second quarter
ARI's backlog as of June 30, 2017 was 2,878 railcars with an estimated market value of $270.0 million. Of the total backlog, co currently expect 715 railcars, or 25%, having an estimated market value of $66.5 million, will be placed into our lease fleet.
8:03 am Insperity beats by $0.14, beats on revs; guides Q3 EPS below consensus; guides FY17 EPS above consensus (NSP) :
Reports Q2 (Jun) earnings of $0.82 per share, excluding non-recurring items, $0.14 better than the Capital IQ Consensus of $0.68; revenues rose 12.5% year/year to $795.5 mln vs the $778.88 mln Capital IQ Consensus. Adjusted EBITDA increased 30% over the second quarter of 2016 to $33.3 million.
Co issues downside guidance for Q3, sees EPS of $0.94-1.00, excluding non-recurring items, vs. $1.02 Capital IQ Consensus Estimate.
Co issues raised guidance for FY17, sees EPS of $4.47-4.60 from $4.30-4.44, excluding non-recurring items, vs. $4.33 Capital IQ Consensus Estimate.
8:02 am ProAssurance sees prelim Q2 $0.38-0.41 vs $0.54 Capital IQ Consensus Estimate (PRA) : Co states, "We believe gross premiums written in the quarter will be approximately $206.0 million and net earned premium for the quarter will be approximately $180.5 million. We anticipate favorable loss development will be in the range of $28.5 million to $30.0 million and we project our consolidated combined ratio to be in a range between 95% and 97% for the quarter."
8:02 am Sabre reports EPS in-line, revs in-line; reaffirms FY17 EPS and revenue guidance but now expects EPS to be in lower half of guidance; announces reorganization, 9% headcount reduction (SABR) :
Reports Q2 (Jun) earnings of $0.35 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.35; revenues rose 6.6% year/year to $900.7 mln vs the $895.1 mln Capital IQ Consensus.
Co reaffirms guidance for FY17, sees EPS of $1.31-1.45, excluding non-recurring items, vs. $1.39 Capital IQ Consensus Estimate; sees FY17 revs of $3.54-3.62 bln vs. $3.58 bln Capital IQ Consensus Estimate. However, Sabre now expects that 2017 EPS results will likely be in the lower half of this guidance. Strategic prioritization has led Sabre to reduce its expectations for 2017 cap-ex and capitalized implementation costs by $50 million in aggregate.
Co announces an initiative to streamline and focus the business through reorganizing certain functions, reducing layers of management, and lowering costs to enable a more nimble, faster moving and focused organization. The initiative is expected to reduce global headcount by approximately 9%. At full run-rate, the program is anticipated to result in approximately $110 mln of annual savings. Sabre expects the program to be neutral to 2017 Free Cash Flow. Cost savings under the initiative are expected to achieve full run-rate in 2018.
8:02 am IPG Photonics beats by $0.26, beats on revs; guides Q3 EPS above consensus, revs above consensus (IPGP) :
Reports Q2 (Jun) earnings of $1.91 per share, $0.26 better than the Capital IQ Consensus of $1.65; revenues rose 46.1% year/year to $369.37 mln vs the $333.06 mln Capital IQ Consensus.
Co issues upside guidance for Q3, sees EPS of $1.70-1.90 vs. $1.59 Capital IQ Consensus Estimate; sees Q3 revs of $350-375 mln vs. $318.62 mln Capital IQ Consensus Estimate.
Demand for our core products, particularly high-power, kilowatt-scale fiber lasers, has never been stronger. Our leadership position within this fast-growing market drove record order activity in the quarter, resulting in a book-to-bill ratio above one. Based on these trends and the strength of our current backlog, we believe we are in excellent position to deliver another strong quarter in three months
Year-to-date bookings have exceeded our expectations, pointing to strong revenue growth in 2017. Based on first half outperformance and current backlog, we are now targeting approximately 32% to 34% revenue growth for the full year. Our fourth quarter performance will be driven by order activity through the end of the third quarter and during the fourth quarter, for which our visibility is low. Given the magnitude of outperformance during the first half of the year, we believe it is prudent to assume a lower growth rate in the fourth quarter due to more challenging comparisons and an expected slowdown in spending related to typical seasonality in China and the consumer electronics investment cycle. Should this anticipated spending slowdown fail to materialize at a level consistent with historic trends, this could result in upside to our full year guidance range
8:01 am S&P futures vs fair value: +5.30. Nasdaq futures vs fair value: +20.40. (:WRAPX) :
It appears that the stock market will open Tuesday's session in the green following yesterday's mixed finish. The S&P 500 futures currently trade five points, or 0.2%, above fair value.
Apple (AAPL 149.00, +0.27), the S&P 500's largest component by market cap, will release its latest earnings report following today's closing bell. Investors will be looking for further details on the much-anticipated iPhone 8, which is expected to be released later this year. AAPL shares currently hold a year-to-date gain of 28.4%.
The Personal Income and Personal Spending Report for June, which will cross the wires at 8:30 ET, is the highlight on today's economic calendar. The Briefing.com consensus expects that personal income and personal spending will increase by 0.3% and 0.1%, respectively. The report will also include the core PCE Price Index (Briefing.com consensus 0.1%).
In addition, investors will also receive the June Construction Spending Report (Briefing.com consensus 0.5%) and the July ISM Index (Briefing.com consensus 56.2), both of which will be released at 10:00 ET. Auto and truck sales will be released throughout the day.
U.S. Treasuries are trading flat for the second day in a row, leaving the benchmark 10-yr yield unchanged at 2.29%. Meanwhile, the U.S. Dollar Index (92.82, +0.15) is up 0.2% and crude oil is down 0.4% at $49.98/bbl. The commodity enters today's session on a six-session winning streak.
In U.S. corporate news:
Pfizer (PFE 33.38, +0.22): +0.7% after better than expected earnings outweighed lower than expected revenues.
Sprint (S 8.20, +0.22): +2.8% after beating bottom-line estimates and raising its profit guidance.
Under Armour (UAA 19.61, -0.41): -2.1% after downbeat guidance overshadowed better than expected earnings and revenues.
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended Tuesday on a higher note. Japan's Nikkei +0.3%, Hong Kong's Hang Seng +0.8%, China's Shanghai Composite +0.6%, India's Sensex +0.2%.
In economic data:
Japan's July Manufacturing PMI 52.1 (expected 52.2; last 52.2)
China's July Caixin Manufacturing PMI 51.1 (consensus 50.4; last 50.4)
India's Nikkei July Manufacturing PMI 47.9 (expected 50.8; last 50.9)
South Korea's July Nikkei Manufacturing PMI 49.1 (last 50.1)
Australia's July AIG Manufacturing Index 56.0 (last 55.0)
South Korea's July CPI +0.2% month-over-month (last -0.1%); +1.9% year-over-year (consensus 2.0%; last 1.9%). July trade surplus narrowed to KRW10.65 billion from KRW10.77 billion. July Imports +14.5% year-over-year (last 19.8%) and July Exports +19.5% year-over-year (last 13.6%)
In news:
Regional economic data included below-consensus Manufacturing PMI readings from India and Japan while China's Caixin Manufacturing PMI beat expectations.
The People's Bank of China reportedly uncovered operational violations at 40 Chinese banks. The banks have up to six months to correct the issues.
In Japan, Chief Cabinet Secretary Yoshihide Suga confirmed that Prime Minister Shinzo Abe plans to reshuffle his cabinet on August 3.
The Reserve Bank of Australia left its cash rate unchanged at 1.50%, as expected. The central bank noted that the relative strength of the Australian dollar results from weakness in the U.S. dollar.
The Reserve Bank of India will meet overnight.
Major European indices trade higher across the board while the euro (1.1814) has shed 0.2% against the dollar after hitting a 19-month high against the greenback yesterday afternoon. Germany's DAX +0.3%, France's CAC +0.5%, UK's FTSE +0.5%.
In economic data:
Eurozone Q2 GDP +0.6% quarter-over-quarter, as expected (last 0.5%); +2.1% year-over-year (consensus 2.4%; last 1.9%). July Manufacturing PMI 56.6 (expected 56.8; last 56.8)
Germany's July Manufacturing PMI 58.1 (expected 58.3; last 58.3). July Unemployment Change -9,000 (consensus -5,000; last 6,000) and Unemployment Rate held at 5.7%, as expected
UK's July Manufacturing PMI 55.1 (expected 54.4; last 54.2). July Nationwide HPI +0.3% month-over-month (expected -0.1%; last 1.1%); +2.9% year-over-year (consensus 2.7%; last 3.1%)
France's July Manufacturing PMI 54.9 (expected 55.4; last 55.4)
Italy's July Manufacturing PMI 55.1 (consensus 55.2; last 55.2)
Spain's July Manufacturing PMI 54.0 (expected 54.5; last 54.7)
In news:
British Chancellor Philip Hammond said Brexit will not be postponed or delayed, but the balancing of the UK's budget may be delayed.
7:50 am Libbey misses by $0.21, reports revs in-line; reaffirms FY17 Outlook (LBY) :
Reports Q2 (Jun) loss of $0.04 per share, $0.21 worse than the Capital IQ Consensus of $0.17; revenues fell 5.0% year/year to $197.5 mln vs the $198.29 mln two analyst estimate.
Net sales in the U.S. and Canada segment were lower due to softer sales in the retail and business-to-business channels, which were down approximately 10 percent and 2 percent, respectively. U.S. and Canada foodservice net sales were flat versus prior year, despite volume increases in the channel.
In Latin America, net sales declined as a result of lower net sales across all channels, primarily due to lower volume in the retail channel. Decreased volume in the business-to-business channel was offset by favorable price and mix.
Net sales in the EMEA segment decreased primarily as a result of unfavorable currency.
Net sales in Other were down as a result of softer sales in China.
FY17 Outlook
Affirmed its previous full-year 2017 outlook, but indicated that it expects Adjusted EBITDA margin to be near the low end of its previously provided 11 percent to 13 percent range.
Net sales decline in the low-to-mid single digits, compared to the full year 2016, on a reported basis, with continued currency headwinds
Capital expenditures of approximately $50 million.
"Second quarter sales results were in line with our expectations, as an intensely competitive pricing environment continues to linger on a global basis," said Chairman and Chief Executive Officer William Foley. "We remain confident that we are taking the appropriate measures to improve the long-term performance of our business. We're seeing indications that certain pricing initiatives we implemented last quarter are taking hold, and that our new product initiatives are beginning to gain traction in the marketplace. We're also very pleased that our new e-commerce platform launched on time and on budget in mid-July."
7:46 am On The Wires (:WIRES) :
Mateon Therapeutics (MATN) has completed enrollment of more than 80 patients in the phase 2 portion of its FOCUS study evaluating CA4P in combination with bevacizumab (Avastin) and physician's choice chemotherapy for the treatment of platinum-resistant ovarian cancer.
Madrigal Pharmaceuticals (MDGL) has completed patient enrollment of 125 patients, exceeding its targeted enrollment of 117 patients, in its Phase 2 proof-of-concept study evaluating MGL-3196 for the treatment of non-alcoholic steatohepatitis (NASH). MGL-3196 is a first-in-class, oral, once-daily, liver-directed, thyroid hormone receptor (THR) -selective agonist medication. The primary endpoint is the reduction of liver fat, assessed by MRI-PDFF, at 12 weeks. The co expects to report top-line results by year-end.
Mallinckrodt Pharmaceuticals (MNK) confirmed inclusion of the first patient in the company's Phase 4 registry assessing the use of INOMAX (nitric oxide) gas for inhalation for premature (less than 34 weeks gestational age) neonates versus term and near-term neonates (greater than 34 weeks gestational age).
7:46 am Jacobs signed a global Enterprise Framework Agreement renewal with Shell Oil Company to provide concept, front-end engineering, detailed design, procurement, project management, construction management and construction services for Shell projects globally (JEC) :
7:40 am Intellia Therapeutics misses by $0.03, beats on revs (NTLA) :
Reports Q2 (Jun) loss of $0.45 per share, $0.03 worse than the Capital IQ Consensus of ($0.42); revenues rose 40.5% year/year to $5.9 mln vs the $5.83 mln Capital IQ Consensus.
"We are very excited that our initial non-human primate data in vivo continue to validate our mRNA delivery technology. These preclinical data accelerate our momentum as we advance the development of potential therapies to treat patients with high unmet medical needs."
Primary uses of capital will continue to be research and development programs, laboratory and related supplies, compensation and related expenses, legal and other regulatory expenses, patent prosecution, filing and maintenance costs for our licensed intellectual property, and general overhead costs. During 2017, the company expects expenses to continue to increase compared to prior periods relating to our ongoing activities, particularly as research and development and preclinical activities gather further momentum toward human clinical trials, and we spend a full year occupying our new office and laboratory facility, which we began to occupy in the fourth quarter of 2016. Expect that the cash and cash equivalents as of June 30, 2017, as well as technology access and research funding from Novartis and Regeneron, will enable Intellia to fund operating expenses and capital expenditures through mid-2019, excluding any potential milestone payments or extension fees received under our collaboration agreements with Novartis and Regeneron.
7:37 am Erin Energy announces the arrival of the Pacific Bora drilling rig to the Oyo field offshore Nigeria, expected to double its production (ERN) :
Erin Energy plans to use Pacific Bora to drill the Oyo-9 well (Oyo-9) on the Oyo field in deepwater offshore Nigeria.
The Company expects to commence drilling of Oyo-9 in ~10 days and the well to add an additional 6,000 to 7,000 barrels per day.
7:37 am Zynerba Pharma misses by $0.05; Top-line Phase 2 results for STAR 1 trial in epilepsy and STOP trial in osteoarthritis remain on track for reporting in August 2017 (ZYNE) :
Reports Q2 (Jun) loss of $0.64 per share, $0.05 worse than the Capital IQ Consensus of ($0.59).
"We expect to announce top-line results from the STAR 1 trial soon, followed by top-line data from the STOP trial later this month; and we remain on track to report top-line results from the FAB-C Fragile X study in September," said Armando Anido, Chairman and Chief Executive Officer. "We also met a significant milestone during the quarter in initiating the Phase 1 program for ZYN001, a pro-drug of THC delivered via patch, and expect to initiate our Phase 2 program by the end of this year. With two clinical stage assets, Zynerba is well-positioned to address a number of serious unmet medical needs."
The Company believes that the current cash and cash equivalent position of $70.2 million is sufficient to develop five Phase 3-ready programs and, assuming support from the FDA to move forward, initiate at least one Phase 3 program and fund operations and capital requirements into 2019.
7:36 am Affimed Therapeutics beats by $0.02, misses on revs (AFMD) :
Reports Q2 (Jun) loss of 0.18 per share, 0.02 better than the Capital IQ Consensus of (0.20); revenues fell 75.4% year/year to 0.51 mln vs the 1.31 mln Capital IQ Consensus.
"We are encouraged by the progress of our clinical programs, in particular moving into the expansion phase of our AFM13 combination trial with Keytruda," said Dr. Adi Hoess, CEO of Affimed. "In our preclinical programs addressing the medical need in solid tumors and multiple myeloma, we have designed and characterized well-differentiated molecules and determined advantages in safety and potency."
7:35 am Cummins misses by $0.03, beats on revs; guides FY17 revs above consensus (CMI) :
Reports Q2 (Jun) earnings of $2.53 per share, $0.03 worse than the Capital IQ Consensus of $2.56; revenues rose 12.1% year/year to $5.08 bln vs the $4.8 bln Capital IQ Consensus.
Co issues upside guidance for FY17, sees FY17 revs of +9-11% (Approx $19.08-19.43 bln) vs. $18.52 bln Capital IQ Consensus Estimate.
Cummins expects full year 2017 revenues to be up 9 to 11 percent, higher than the prior forecast of up 4 to 7 percent.
EBIT is expected to be in the range of 11.75 to 12.5 percent of sales, unchanged from prior guidance. This forecast excludes the impact of our new Eaton Cummins Automated Transmission Technologies joint venture.
7:33 am Myers Industries beats by $0.04, reports revs in-line; reaffirms FY17 revs outlook (MYE) :
Reports Q2 (Jun) earnings of $0.17 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $0.13; revenues fell 1.2% year/year to $142.3 mln vs the $142.95 mln Capital IQ Consensus.
The Company continues to anticipate that total revenue will be flat on a constant currency basis in fiscal year 2017 as compared to the prior year.
7:33 am TG Therapeutics and FDA reach agreement regarding a Special Protocol Assessment on the design of two Phase 3 clinical trials for TG-1101 for the treatment of relapsing forms of Multiple Sclerosis (TGTX) :
The SPA provides agreement that the two Phase 3 trial designs adequately address objectives that, if met, would support the regulatory submission for approval of TG-1101.
Co states, "The early data from our Phase 2 clinical trial, the highly successful pivotal results for the anti-CD20 monoclonal antibody ocrelizumab in MS, and the substantial safety data generated in our oncology program, gives us a high level of confidence in the potential for a successful outcome. Our team in concert with our CRO has been hard at work on the logistics and the launch of these Phase 3 trials on a global basis, and we look forward to enrolling our first patient before the end of the summer."
7:33 am Sprint beats by $0.10, reports revs in-line; raises profit guidance (S) :
Reports Q1 (Jun) earnings of $0.05 per share, $0.10 better than the Capital IQ Consensus of ($0.05); revenues rose 1.8% year/year to $8.16 bln vs the $8.14 bln Capital IQ Consensus, its fourth consecutive quarter of year-over-year growth, and 88,000 postpaid phone net additions, its eighth consecutive quarter of net additions. Postpaid phone gross additions also grew year-over-year for the sixth consecutive quarter and were the highest first-quarter result in five years. "Sprint reached an important milestone this quarter by returning to profitability for the first time in three years," said Sprint CEO Marcelo Claure. "This represents the progress of a turnaround journey that has delivered improvements in postpaid phone and prepaid customer growth, a return to top-line growth, and a significantly transformed cost structure."
Sprint continued to make progress on its multiyear plan to transform the way it does business and improve its cost structure. The company delivered nearly $370 million of combined year-over-year reductions in cost of services and SG&A expenses in the quarter, bringing the total reduction during the last nine quarters to nearly $4 billion. The ongoing cost-reduction program contributed to a return to profitability this quarter, as the company reported net income for the first time in three years. Excluding the after-tax benefit of non-recurring items in the quarter, Sprint would have reported net income of more than $150 million, demonstrating the improved underlying trends of the business. Sprint expects an additional $1.3 billion to $1.5 billion of year-over-year net reductions in cost of services and SG&A expenses in fiscal year 2017. Although the gross reductions are expected to be higher, the company plans to reinvest some of the savings into future growth initiatives.
The company is increasing the low end of its previous Adjusted EBITDA* expectations and now expects $10.8 billion to $11.2 billion for fiscal year 2017. The previous expectation was $10.7 billion to $11.2 billion. The company is increasing the low end of its previous operating income expectations and now expects operating income of $2.1 billion to $2.5 billion. The previous expectation was $2 billion to $2.5 billion. The company continues to expect cash capital expenditures, excluding devices leased through indirect channels, of $3.5 billion to $4 billion.
7:33 am CDK Global beats by $0.01, beats on revs; guides FY18 EPS above consensus (CDK) :
Reports Q4 (Jun) earnings of $0.55 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.54; revenues rose 4.3% year/year to $565.4 mln vs the $556.68 mln Capital IQ Consensus.
Co issues upside guidance for FY18, sees EPS of $2.90-3.00, excluding non-recurring items, vs. $2.93 Capital IQ Consensus Estimate.
"I am pleased with the results of our fiscal year and benefits delivered by executing our transformation plan. Adjusted EBITDA margin expansion of 550 basis points in fiscal 2017, combined with the 370 basis points of expansion achieved in fiscal 2016, puts us on track to achieve our transformation goals," said Brian MacDonald, chief executive officer. "By improving our products and processes and focusing on our dealer customers, we are making solid progress. Based on successes to date, we expect to exceed the fiscal 2018 adjusted EBITDA target of 35%."
7:32 am Eyegate Pharmaceuticals has enrolled its first patient in the Company's Phase 2b clinical trial of its EGP-437 combination product (EYEG) :
The EyeGate II Delivery System and EGP-437 combination product, is being evaluated for the treatment of pain and inflammation in patients having undergone cataract surgery with implantation of a monofocal posterior chamber IOL.
As announced in the first quarter of 2017, EyeGate and Valeant (VRX) entered into an exclusive, worldwide licensing agreement through which EyeGate has granted a subsidiary of Valeant exclusive, worldwide commercial and manufacturing rights to the EGP-437 combination product candidate for the treatment of post-operative ocular inflammation and pain in ocular surgery patients.
7:31 am Flex Pharma initiates Phase 2 CONMEND trial in the US, will evaluate FLX-787 in patients with motor neuron disease, focused on ALS, who suffer from painful, debilitating cramps; co expects to report topline results from this study in the middle of 2018 (FLKS) :
The co has initiated a Phase 2 randomized, controlled, double-blinded, parallel design trial in the US, referred to as the COMMEND trial.
The COMMEND trial will evaluate FLX-787, the Company's co-activator of TRPA1 and TRPV1, in patients with motor neuron disease, focused on ALS, who suffer from painful, debilitating cramps.
The FDA has granted FLX-787 Fast Track designation for the treatment of severe muscle cramps associated with ALS.
The Company expects to report topline results from this study in the middle of 2018.
The Company also intends to initiate a Phase 2 clinical trial in CMT this quarter.
7:29 am Penske Auto commences $300 mln offering of Senior Subordinated Notes due 2020 (PAG) : The company intends to use the net proceeds of this offering to repay amounts currently outstanding under the company's U.S. credit agreement and for general working capital purposes.
7:25 am Martin Marietta misses by $0.10, misses on revs; guides FY17 revs in-line (MLM) :
Reports Q2 (Jun) earnings of $2.25 per share, $0.10 worse than the Capital IQ Consensus of $2.35; revenues rose 8.8% year/year to $996.3 mln vs the $1014.78 mln Capital IQ Consensus.
Building Materials net sales of $931.7 million compared with $856.6 million, an increase of 8.8%, and Magnesia Specialties net sales of $64.6 million compared with $58.8 million, an increase of 9.7%
Consolidated gross profit of $274.1 million compared with $247.4 million, an increase of 10.8%
Co issues in-line guidance for FY17, sees FY17 revs of $3.75-3.95 bln vs. $3.93 bln Capital IQ Consensus Estimate.
Infrastructure market to increase mid-single digits.
Nonresidential market to increase in the low- to mid-single digits.
Residential market to increase in the mid- to high-single digits.
ChemRock/Rail market to remain stable.
2017 consolidated net sales exclude $390 million related to estimated interproduct sales.
Ward Nye, Chairman, President and CEO of Martin Marietta, stated, "Our record second-quarter results reflect improved sales, gross profit and earnings from operations in each reportable group, underscoring the breadth of our business and our ability to capitalize on the ongoing recovery in construction activity. Positive residential and nonresidential activity drove results, along with pricing improvements across our aggregates product line, led by the Southeast Group's 10.6 percent increase. We overcame challenging operating conditions in several key states, as near-record levels of precipitation in North Carolina, South Carolina, Georgia and Florida negatively impacted aggregates shipments and operating efficiencies in our historically most profitable geographic areas. Looking ahead, we are optimistic about the remainder of 2017 and beyond due to increased momentum across almost our entire geographic footprint and the positive near- and medium-term outlooks expressed by our customers."
7:20 am Intesa Sanpaolo reports H1 results (ISNPY) :
Net income was 1,738 million excluding the aforementioned public contribution and 2,198 million excluding, in addition, levies and other charges concerning the banking industry.
Net interest income in Q2 2017 up 0.6% on Q1 2017, and in H1 2017 up 1.5% on H1 2016 when excluding the impact of the devaluation of the Egyptian currency.
The credit quality trend improved. the past 21 months recorded a 10 billion gross npl stock reduction, which was achieved at no extraordinary cost to shareholders. in q2 2017, gross npl inflow from performing loans was at its lowest since the creation of intesa sanpaolo.
7:18 am Lifepoint Hospitals beats by $0.06, misses on revs; guides FY17 EPS lower, revs below consensus (LPNT) :
Reports Q2 (Jun) earnings of $0.96 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $0.90; revenues rose 0.2% year/year to $1.59 bln vs the $1.64 bln Capital IQ Consensus.
William F. Carpenter III, Chairman and Chief Executive Officer of LifePoint Health, said, "We are pleased to deliver another quarter of solid results with EBITDA growth and expanded margins both year-over-year and sequentially. Our longstanding operating discipline continues to be integral to our success even while the volume environment remains challenging. We are successfully integrating recently acquired hospitals and health systems and remain committed to our strategic priorities of quality and service, growth, operational excellence and talent development at every location to drive long-term value for our shareholders."
Co issues guidance for FY17, sees EPS of $3.92-$4.20 vs. $4.19 Capital IQ Consensus Estimate and prior guidance of $4.05-$4.34; sees FY17 revs of $6.425-$6.500 bln vs. $6.55 bln Capital IQ Consensus Estimate and prior guidance of $6.50-$6.60 bln.
7:18 am European Markets Update: DAX +0.3%, CAC +0.5%, FTSE +0.5% (:SUMRX) :
Major European indices trade higher across the board while the euro (1.1814) has shed 0.2% against the dollar after hitting a 19-month high against the greenback yesterday afternoon. British Chancellor Philip Hammond said Brexit will not be postponed or delayed, but the balancing of the UK's budget may be delayed.
In economic data:
Eurozone Q2 GDP +0.6% quarter-over-quarter, as expected (last 0.5%); +2.1% year-over-year (consensus 2.4%; last 1.9%). July Manufacturing PMI 56.6 (expected 56.8; last 56.8)
Germany's July Manufacturing PMI 58.1 (expected 58.3; last 58.3). July Unemployment Change -9,000 (consensus -5,000; last 6,000) and Unemployment Rate held at 5.7%, as expected
UK's July Manufacturing PMI 55.1 (expected 54.4; last 54.2). July Nationwide HPI +0.3% month-over-month (expected -0.1%; last 1.1%); +2.9% year-over-year (consensus 2.7%; last 3.1%)
France's July Manufacturing PMI 54.9 (expected 55.4; last 55.4)
Italy's July Manufacturing PMI 55.1 (consensus 55.2; last 55.2)
Spain's July Manufacturing PMI 54.0 (expected 54.5; last 54.7)
---Equity Markets---
Germany's DAX is higher by 0.3% with most components trading in the green. Lufthansa has spiked 2.6% while Prosiebensat 1, Heidelbergcement, and Infineon are up between 1.0% and 1.2%. BMW, Daimler, and Volkswagen show gains between 0.6% and 1.0%. Adidas is the weakest component, falling 0.7%.
France's CAC trades up 0.5% with heavyweights among the leaders. Peugeot, Airbus Group, Renault, Louis Vuitton, and Total have added between 1.1% and 1.5%. A handful of consumer names lag with L'Oreal, Danone, and Pernod Ricard shedding between 0.2% and 1.1%.
UK's FTSE has climbed 0.5%. Rolls-Royce has surged 9.4% in reaction to upbeat earnings while BP has climbed 2.7% after it too beat estimates. Consumer stocks like Paddy Power, Imperial Brands, Taylor Wimpey, Burberry, and British American Tobacco show gains between 0.9% and 1.7%. On the downside, select miners like Fresnillo, Anglo American, and Randgold Resources show losses between 0.6% and 2.5%.
7:17 am Broadwind Energy reports EPS in-line, revs in-line; guides Q3 EPS below two analyst estimate, revs below consensus (BWEN) :
Reports Q2 (Jun) loss of $0.05 per share, in-line with the Capital IQ Consensus of ($0.05); revenues were unchanged from the year-ago period at $43.4 mln.
Co issues downside guidance for Q3, sees EPS of ($0.15)-(0.17), excluding non-recurring items, vs. $0.02 two analyst estimate; sees Q3 revs of $30 mln vs. $41.25 mln Capital IQ Consensus Estimate.
Q4 outlook highly uncertain due to change in tower procurement and engineering practices.
7:16 am ACCO Brands beats by $0.05, misses on revs; raises FY17 EPS guidance to be at the high end of prior range, in-line, reaffirms revs in-line (ACCO) :
Reports Q2 (Jun) earnings of $0.31 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $0.26; revenues rose 19.5% year/year to $490 mln vs the $497.17 mln Capital IQ Consensus.
Co raises 2017 EPS guidance....
Co expects FY17 EPS to be at the high end of its prior adjusted EPS range, at $1.07-1.10, excluding non-recurring items, vs. $1.08 Capital IQ Consensus Estimate; reaffirms FY17 revenue growth expectation of 22-26%, which equates to roughly $1.90-1.96 vs. $1.94 bln Capital IQ Consensus Estimate.
7:15 am Endurance International misses by $0.11, reports revs in-line; updates guidance (EIGI) :
Reports Q2 (Jun) GAAP loss of $0.29 per share, $0.11 worse than the Capital IQ GAAP consensus estimate of ($0.18); revenues rose 0.5% year/year to $292.26 mln vs the $289.4 mln Capital IQ Consensus.
Total subscribers on platform at June 30, 2017 were approximately 5.217 million, compared to approximately 5.480 million subscribers at June 30, 2016 and 5.304 million subscribers at March 31, 2017.
Adjusted EBITDA for the second quarter of 2017 was $82.5 million, an increase of 7 percent compared to $76.9 million for the second quarter of 2016.
Updated Guidance:
Co sees GAAP revenue +5-5.5% (Prior 4-5%)
Co sees Adjusted EBITDA +14-16% (Prior +12-14%)
Co sees Free cash flow +25% (Prior +35%)
7:15 am Scotts Miracle-Gro beats by $0.12, beats on revs; reaffirms FY17 guidance; expects to rasie dividend in near future (SMG) :
Reports Q3 (Jun) earnings of $2.63 per share, $0.12 better than the Capital IQ Consensus of $2.51; revenues rose 8.5% year/year to $1.08 bln vs the $1.06 bln Capital IQ Consensus. U.S. Consumer increased 5 percent to $792.2 million from $756.7 million. Europe Consumer sales declined 3 percent, but increased 2 percent when excluding the impact of foreign exchange rates, to $93.2 million. Sales in the "Other" segment increased 36 percent to $192.6 million due to the acquisitions of Botanicare and Gavita as well as year-over- year growth within The Hawthorne Gardening Company.
Co reaffirms guidance for FY17, sees EPS of $4.00-4.20, excluding non-recurring items, vs. $4.13 Capital IQ Consensus Estimate; sees FY17 revs of +3-4% to $2.92-2.95 bln vs. $2.93 bln Capital IQ Consensus Estimate.
The Company now expects to complete the pending sale of its European and Australian businesses in the fourth quarter and anticipates lowering its guidance for Non-GAAP adjusted earnings by ~$0.20 per share at that time. "Once this pending divestiture is behind us, the material changes in reconfiguration of our portfolio will largely be behind us," Hagedorn said. "Where appropriate, we will continue to seek tuck-in acquisitions that complement our remaining portfolio, however, our bias going forward will be to return cash to shareholders. We expect to increase our quarterly dividend in the near future and will continue to be an active acquirer of our shares."
7:15 am Lexicon Pharma beats by $0.11, misses on revs (LXRX) :
Reports Q2 (Jun) loss of $0.33 per share, $0.11 better than the Capital IQ Consensus of ($0.44); revenues fell 40.3% year/year to $12 mln vs the $18.34 mln Capital IQ Consensus.
Anticipated Upcoming Milestones September 11-15, 2017 -- Two oral presentations (inTandem2 and JDRF studies) and two poster presentations (dose ranging and in Tandem studies) at the 53rd Annual Meeting of the European Association for the Study of Diabetes (:EASD) in Lisbon. Q3 2017 - Secondary endpoint data from inTandem. Q3 2017 - Pooled continuous glucose monitoring (:CGM) data from inTandem1 and inTandem.
7:13 am On The Wires (:WIRES) :
Magellan Health (MGLN) has launched a hemophilia management program in collaboration with Health New England, a non-profit health plan serving the commercial, Medicaid and Medicare markets.
Spectrum Pharmaceuticals (SPPI) has completed enrollment with 405 patients randomized in the ROLONTIS Phase 3 ADVANCE pivotal study under a Special Protocol Assessment (SPA) with the FDA. The study is evaluating the safety and efficacy of ROLONTIS in the management of chemotherapy-induced neutropenia in patients with breast cancer. Enrollment has been completed ahead of schedule. The Company plans to announce topline data in Q1 2018 and file a Biologics License Application (:BLA) next year.
Acceleron Pharm (XLRN) announced that the first patient has been treated in a Phase 2 clinical trial of ACE-083, the Company's locally acting muscle agent, for the treatment of patients with Charcot-Marie-Tooth disease (CMT).
7:12 am Government Properties Income Trust beats by $0.01, beats on revs (GOV) :
Reports Q2 (Jun) funds from operations of $0.60 per share, $0.01 better than the Capital IQ Consensus of $0.59; revenues rose 9.1% year/year to $69.89 mln vs the $69.08 mln Capital IQ Consensus.
Completed 288,428 Square Feet of Leasing in the Second Quarter for a 13.5% Increase in Rents.
Occupancy was 95.0% at Quarter End, Up 80 Basis Points Year Over Year.
Announced Agreement to Acquire First Potomac Realty Trust for Approximately $1.4 Billion.
"Government Properties Income Trust achieved solid leasing results during the second quarter of 2017. We entered into new and renewal leases for over 288,000 square feet of space for rents that were 13.5% higher than previous rents for the same space. We also announced our planned strategic acquisition of First Potomac Realty Trust and began to implement our long term financing and business repositioning plans associated with that acquisition by raising $494 million of net proceeds from the sale of common equity and the issuance of $300 million aggregate principal amount of senior unsecured notes due 2022."
7:11 am Oxford Immunotec misses by $0.42, beats on revs; guides Q3 revs in-line; raises FY17 revs guidance in-line (OXFD) :
Reports Q2 (Jun) loss of $0.74 per share, $0.42 worse than the two analyst estimate of ($0.32); revenues rose 35.9% year/year to $26.1 mln vs the $25.05 mln Capital IQ Consensus.
Co issues in-line guidance for Q3, sees Q3 revs of $29.5-$30.5 mln vs. $30.38 mln Capital IQ Consensus Estimate.
Co issues in-line guidance for FY17, sees FY17 revs of $103.0-$106.0 mln vs. $103.99 mln Capital IQ Consensus Estimate and prior guidance of $102.0-$105.0 mln.
7:11 am IDEXX Labs beats by $0.02, beats on revs; raises FY17 guidance (IDXX) :
Reports Q2 (Jun) earnings of $0.87 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.85; revenues rose 9.1% year/year to $508.9 mln vs the $502.44 mln Capital IQ Consensus.
Co issues raised guidance for FY17, sees EPS of $3.12-3.22 from $2.95-3.11 vs. $3.07 Capital IQ Consensus Estimate; raises FY17 revs to $1.945-1.965 bln from $1.925-1.95 bln vs. $1.94 bln Capital IQ Consensus Estimate.
Gross profits increased 12%, and gross margin increased to 57.5% from 55.8% in the prior year period.
7:11 am Phillips 66 Partners misses by $0.07, reports revs in-line (PSXP) :
Reports Q2 (Jun) earnings of $0.61 per share, $0.07 worse than the Capital IQ Consensus of $0.68; revenues were unchanged from the year-ago period at $234 mln.
Adjusted EBITDA was $170 million in the second quarter, compared with $155 million in the prior quarter.
The Sand Hills Pipeline expansion continues to progress. The project will expand capacity from 280,000 barrels per day (:BPD) to 365,000 BPD, with an expected in-service date by the end of 2017. In addition, DCP Midstream, the operator of the pipeline, has announced plans to further expand the line to approximately 450,000 BPD. Phillips 66 Partners owns a one-third interest in this joint venture.
7:11 am Colliers beats by $0.08, beats on revs (CIGI) :
Reports Q2 (Jun) earnings of $0.76 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.68; revenues rose 12.8% year/year to $544.2 mln vs the $515.45 mln Capital IQ Consensus.
7:10 am Incyte misses by $0.02, beats on revs; raises sales guidance (INCY) :
Reports Q2 (Jun) loss of $0.06 per share, $0.02 worse than the Capital IQ Consensus of ($0.04); revenues rose 32.5% year/year to $326.4 mln vs the $318.45 mln Capital IQ Consensus. Net product revenues of Jakafi were $276 million as compared to $208 million for the same period in 2016, representing 33 percent growth.
Raises Jakafi net rev to $1.09-1.12 bln from $1.02-1.07 bln; reaffirms Iclusig $60-65 mln. Proof-of-concept data for the combination of epacadostat plus PD-1 inhibition presented at the American Society of Clinical Oncology Annual Meeting (:ASCO) 2017 across multiple tumor types; expanded Phase 3 program on track for planned initiation in 2017 Multiple product candidates in late-stage clinical development illustrates transformational growth potential of Incyte's portfolio.
"Revenue growth from Jakafi and Iclusig continues to be very robust, driven by strong demand, and we have also made significant progress across our clinical portfolio. As we look forward to the second half of 2017, we anticipate the publication of important data from our development candidates, as well as the initiation of multiple additional pivotal combination studies with epacadostat."
7:10 am Innophos Holdings beats by $0.04, beats on revs; guides Q3 revs below two analyst estimate; reaffirms FY17 EPS guidance, revs guidance (IPHS) :
Reports Q2 (Jun) earnings of $0.57 per share, excluding non-recurring items, $0.04 better than the two analyst estimate of $0.53; revenues fell 1.5% year/year to $179.14 mln vs the $172.65 mln two analyst estimate.
All segments showed positive year-over-year volume comparisons
Delivered final $2 million of $16 million procurement savings pipeline from Phase 1 Operational Excellence initiatives
H2 2017 on track to realize $5 million of the identified $13 million Phase 2 Operational Excellence cost savings in the areas of MRO, packaging and logistics
The acquisition of Novel Ingredients will create a Food, Health and Nutrition (FHN) platform of nearly $0.5 billion in revenue representing 60% of total sales. The combined Company will benefit from leading, innovative technology; a broader and deeper product portfolio; and access to new market segments
Co issues downside guidance for Q3, sees Q3 revs of down ~4% y/y to ~$178.59 mln vs. $186.30 mln two analyst estimate.
Earnings in the third quarter are forecast to be positively affected sequentially by reduced implementation fees and first-time cost savings from Phase 2 operational excellence.
Input costs are otherwise expected to be in line with second quarter 2017.
The Company anticipates that the tax rate will be at the more normalized level of approximately 33% in the thirdquarter.
Co reaffirms guidance for FY17, sees EPS of broadly in line with 2016 which was $2.55 vs. $2.48 two analyst estimate; sees FY17 revs of ~$696 mln vs. $692.45 mln Capital IQ Consensus Estimate.
On a full-year basis, overall market conditions and the competitive landscape for 2017 are expected to be similar to 2016.
The Company anticipates that the Phase 2 Operational Excellence fees incurred in the first half of the year will be more than offset by the Phase 2 savings, of which $5 million is estimated to take effect in the second half of 2017.
As a result of these factors, the Company continues to expect full-year revenues to be down by approximately 4% compared with 2016 (equates to ~$696 mln). The Company further continues to expect full-year earnings to be broadly in line with 2016, reflecting the impact of management's focus on cost actions and productivity initiatives given the challenging market conditions.
"We delivered a very robust second quarter with top and bottom line results above our expectations," said Kim Ann Mink, Ph.D., Chairman, President and Chief Executive Officer. "By remaining focused on cost savings from performance improvement initiatives, we grew margins on a year-over-year basis despite continuing market pressure. As we transition into the second half of the year, we are encouraged by several recent developments, including improvements in sales volume. We are confident in our ability to deliver on a strong second half of the year and are reiterating our guidance, excluding the Novel Ingredients acquisition.
7:09 am Schneider National reports EPS in-line, revs in-line; raises low-end of FY17 EPS guidance (SNDR) :
Reports Q2 (Jun) earnings of $0.23 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.23; revenues rose 8.1% year/year to $1.08 bln vs the $1.07 bln Capital IQ Consensus.
Co raises guidance for FY17, sees EPS of $0.94-1.02 (Prior $0.92-1.02) , excluding non-recurring items, vs. $0.97 Capital IQ Consensus Estimate.
"The market pressures of the first quarter continued into the second quarter," said Lofgren. "However, in June indications of improving market conditions began to appear. July is always a challenging month, so we will have a better read by mid-August, but we are cautiously optimistic that the market will see strengthening in the second half of 2017. The market improvement, our efforts to increase driver capacity, new Dedicated contracts and our ongoing revenue management work positions us well for the second half of 2017. Last quarter, I discussed my commitment to be thoughtful and disciplined as to capital expenditures. In light of anticipated market improvement and new customer wins, we have increased our anticipated full year net capital expenditures range to $350 million to $400 million which includes $100 million for chassis. Further, we anticipate full year 2017 adjusted diluted earnings per share in the range of $0.94 to $1.02, which includes the impact of increased share count from the IPO estimated at $0.10 per share."
7:08 am Phillips 66 beats by $0.08 (PSX) :
Reports Q2 (Jun) earnings of $1.09 per share, $0.08 better than the Capital IQ Consensus of $1.01.
Phillips 66 generated $1.9 billion in cash from operations during the second quarter, including $422 million of cash distributions from equity affiliates. Excluding working capital impacts, operating cash flow was $1.2 billion.
During the quarter, Phillips 66 funded $458 million of capital expenditures and investments, and distributed $360 million in dividends and $381 million in share repurchases. The company ended the quarter with 512 million shares outstanding.
As of June 30, 2017, cash and cash equivalents were $2.2 billion, and consolidated debt was $10.0 billion, including $2.3 billion at Phillips 66 Partners (PSXP). The company's consolidated debt-to-capital ratio and net-debt-to-capital ratio were 30 percent and 25 percent, respectively. Excluding PSXP, the debt-to-capital ratio was 26 percent and net-debt-to-capital ratio was 20 percent.
7:07 am Dorman Products misses by $0.02, beats on revs (DORM) :
Reports Q2 (Jun) earnings of $0.83 per share, $0.02 worse than the Capital IQ Consensus of $0.85; revenues rose 9.4% year/year to $229.26 mln vs the $225.91 mln Capital IQ Consensus.
"In the quarter, we also started to realize meaningful revenue from the launch of our Dorman Premium full line chassis program. We are truly excited to see the results of a lot of hard work by the team as we strive to become a market leader in this category. Overall, we continue to execute well, and although we are very pleased with our first half growth, we remain cautious entering the back half of the year given current market conditions. However, our previously issued full year guidance for top and bottom line growth remains unchanged" said Matt Barton, President and Chief Executive Officer.
Operating Cash Flow was $3.8 million in the quarter compared to $12.6 million in the same quarter last year. Investment in inventories (of approximately $29 million in the quarter), to ensure high customer fill rates, was the driver of the decreased Operating Cash Flows. We expect inventory to plateau in the third quarter and begin to decline slightly in the second half of the year.
7:05 am Innophos Holdings to acquire Novel Ingredients for $125 mln in cash (IPHS) :
Novel Ingredients are a New Jersey-based provider of dietary supplement ingredient solutions primarily owned by GenNx360 Capital Partners, a New York-based private equity firm.
Under the terms of the merger agreement, Innophos will acquire all of the outstanding shares of Novel Ingredients for a total purchase price of $125 million (enterprise value), payable in cash.
Co will fund the acquisition with borrowings under its existing credit facility.
The acquisition is expected to be accretive to Innophos' earnings per share in the first year following the close of the transaction.
Closing of the transaction is expected to be completed in the third quarter of 2017.
Annual revenue of nearly $100 million; 2008-2016 CAGR of 19%.
Annual cost synergies estimated at $4 million; revenue synergies are anticipated from combined product technology and customer relationships
7:05 am Shopify beats by $0.06, beats on revs; guides Q3 revs above consensus; raises FY17 above consensus; CFO will retire (SHOP) :
Reports Q2 (Jun) adj. loss of $0.01 per share, $0.06 better than the Capital IQ Consensus of ($0.07); revenues rose 75.2% year/year to $151.7 mln vs the $143.94 mln Capital IQ Consensus. Within this, Subscription Solutions revenue grew 64% to $71.6 million. The acceleration in Subscription Solutions revenue growth was driven by the continued rapid growth in Monthly Recurring Revenue as another record number of merchants joined the platform in the period. Merchant Solutions revenue grew 86% to $80.1 million, driven primarily by the growth of Gross Merchandise Volume.
MRR as of June 30, 2017 was $23.7 million, up 64% compared with $14.4 million as of June 30, 2016. Shopify Plus contributed $4.3 million, or 18%, of MRR compared with 13% of MRR as of June 30, 2016.
GMV for the second quarter was $5.8 billion, an increase of $2.5 billion, or 74% over the second quarter of 2016. Gross Payments Volume3 ("GPV") grew to $2.2 billion, which accounted for 38% of GMV processed in the quarter, versus $1.3 billion, or 38%, for the second quarter of 2016.
Gross profit dollars grew 83% to $86.8 million as compared with the $47.5 million recorded for the second quarter of 2016.Co issues upside guidance for Q3, sees Q3 revs of $164-166 mln vs. $157.03 mln Capital IQ Consensus Estimate; adj. operating loss $2-4 mln
Co issues upside guidance for FY17, sees FY17 revs of $642-648 mln vs. $627.77 mln Capital IQ Consensus Estimate; adj. operating loss $7-11 mln
Shopify's Chief Financial Officer Russ Jones has informed the Company and its Board of Directors of his decision to retire in 2018. Russ, who joined Shopify in 2011, intends to continue to serve as CFO until his successor is found and has transitioned into the role, a process that is now underway and that Shopify expects will be completed within the next 12 months.
7:05 am Archer-Daniels beats by $0.05, misses on revs (ADM) :
Reports Q2 (Jun) earnings of $0.57 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $0.52; revenues fell 4.4% year/year to $14.94 bln vs the $15.86 bln Capital IQ Consensus.
"Our actions in the first half of the year reflect ADM's continuous efforts to create shareholder value. We are diversifying our capabilities and geographic reach through acquisitions and organic expansions. We are aggressively managing costs and capital, and taking additional portfolio actions; and we are ahead of pace to meet our 2017 target of $225 million in run-rate savings...With these collective actions, we expect to deliver solid year-over-year earnings growth and returns in 2017, and we are poised to be an even stronger company in 2018."
7:03 am CME Group beats by $0.01, reports revs in-line (CME) :
Reports Q2 (Jun) earnings of $1.22 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $1.21; revenues rose 2.1% year/year to $925 mln vs the $931.05 mln Capital IQ Consensus.
Second-quarter 2017 average daily volume was a record 16.5 million contracts, up 9 percent compared with second-quarter 2016.
Clearing and transaction fee revenue was $792 million, up 3 percent compared with second-quarter 2016.
Second-quarter 2017 total average rate per contract was 74.9 cents, up 2 percent from first-quarter 2017, driven primarily by a sequential product mix shift with an increased proportion of the volume from commodity contracts, which capture higher fees.
Market data revenue was $96 million, down 7 percent compared with the second quarter last year, but relatively in line with the first quarter of this year.
7:03 am Steven Madden beats by $0.06, beats on revs; raises FY17 EPS, revs guidance (SHOO) :
Reports Q2 (Jun) earnings of $0.51 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $0.45; revenues rose 15.0% year/year to $374.15 mln vs the $355.22 mln Capital IQ Consensus.
Gross margin was 37.3%. Adjusted gross margin was 37.4% as compared to 37.2% in the same period last year, an increase of 20 basis points.
Same store sales increased 2.2% in the quarter compared to a 5.4% same store sales increase in the second quarter of 2016. Retail gross margin decreased slightly to 62.6% in the second quarter of 2017 as compared to 62.8% in the second quarter of the prior year.
Co raises guidance for FY17, sees EPS of $2.18-2.24 (Prior $2.12-2.18), excluding non-recurring items, vs. $2.19 Capital IQ Consensus Estimate; sees FY17 revs of $1.53-1.55 bln (+9-11%) (Prior +8-10%) vs. $1.53 bln Capital IQ Consensus Estimate.
7:03 am AcelRx reported key results from the Phase 3 IAP312 study of ZALVISO (sufentanil sublingual tablet system), an investigational product candidate being developed for the management of moderate-to-severe acute pain (ACRX) :
Throughout the study in 320 enrolled patients, 2.2% of patients experienced a ZALVISO device error, which was statistically less than the 5% limit specified in the study objectives.
Importantly, none of these device errors resulted in an over-dosing event.
This 2.2% rate was lower than the 7.9% rate of device errors during patient use previously reported for the earlier version of the ZALVISO device in the Phase 3 IAP311 study.
In addition, as requested by FDA, the IAP312 study prospectively evaluated the number of inadvertently misplaced tablets which occurred during patient dosing.
No patient had a repeat incidence of an inadvertently misplaced tablet following
re-training on the device.
7:03 am Pitney Bowes misses by $0.03, reports revs in-line; guides FY17 EPS in-line (PBI) :
Reports Q2 (Jun) earnings of $0.33 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus of $0.36; revenues fell 1.7% year/year to $821.4 mln vs the $822.9 mln Capital IQ Consensus.
Co issues narrows guidance for FY17, sees EPS of $1.70-1.78 from $1.70-1.85 vs. $1.74 Capital IQ Consensus Estimate.
Revenue, on a constant currency basis, to be in the range of flat to 1 percent growth, when compared to 2016. This has been updated from the original range of a 2 percent decline to 1 percent growth. Free cash flow to be in the range of $400 million to $430 million. This has been updated from the original range of $400 million to $460 million.
7:03 am Caterpillar CFO Brad Halverson to retire in early 2018; co will launch an external search to fill the position (CAT) :
7:02 am Under Armour beats by $0.03, beats on revs; lowers FY17 guidance; announces restructuring (UAA) :
Reports Q2 (Jun) loss of $0.03 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of ($0.06); revenues rose 8.7% year/year to $1.09 bln vs the $1.08 bln Capital IQ Consensus, up 8 percent currency neutral. Revenue to wholesale customers rose 3 percent to $655 million and direct-to-consumer revenue was up 20 percent to $386 million. A dynamic and promotional retail environment in North America continued to temper results with revenue in line with last year's same period. Outside North America, the strong momentum continued with international revenue up 57 percent (up 54 percent currency neutral), representing 22 percent of total revenue. Within our international business, revenue in EMEA was up 57 percent (up 53 percent currency neutral), up 89 percent in Asia-Pacific (up 87 percent currency neutral) and up 10 percent in Latin America (up 9 percent currency neutral). Apparel revenue increased 11 percent to $681 million including strength in men's and women's training, and golf. Footwear revenue was down 2 percent to $237 million, against last year's same period which was up 58 percent due to significant strength in basketball sales. Accessories revenue increased 22 percent to $123 million with strength in men's and women's training, and youth performance.
Gross margin declined 190 basis points to 45.8 percent as benefits from channel and product mix were offset by inventory management initiatives, changes in foreign currency rates, and higher air freight in connection with our enterprise resource planning (:ERP) system implementation, which impacted the timing of shipments to certain key customers.
Co issues guidance for FY17, sees EPS of $0.37-0.40, excluding non-recurring items, vs. $0.42 Capital IQ Consensus Estimate; sees FY17 revs of +9-11% to ~$5.26-5.36 bln vs. $5.35 bln Capital IQ Consensus Estimate.
Under Armour's Board of Directors has approved a restructuring plan to more closely align its financial resources to support the company's efforts to better serve the evolving needs of the changing consumer and customer landscape. "As we stand up our category management structure within a consumer-led approach, we intend to meaningfully increase our go-to-market speed and amplify our digital capabilities," continued Plank. "We've identified a number of areas to enhance our operational capabilities, drive process improvement and gain greater efficiencies. We remain steadfast in driving and building our brand while shifting our operational focus to become more return-on-investment and cost of capital centric - institutionalizing discipline to deliver more consistent, long-term shareholder value." In conjunction with this plan, the company expects to incur total estimated pre-tax restructuring and related charges of ~$110-130 million.
7:01 am Cara Therapeutics appoints Mani Mohindru, Ph.D., as CFO effective August 15 (CARA) :
Josef Schoell, who has held the CFO position at Cara for more than a decade, will be retiring.
Most recently, Mohindru served as Chief Strategy Officer at Curis (CRIS)
7:01 am Granite Constr misses by $0.20, beats on revs (GVA) :
Reports Q2 (Jun) earnings of $0.35 per share, excluding non-recurring items, $0.20 worse than the Capital IQ Consensus of $0.55; revenues rose 26.2% year/year to $762.9 mln vs the $684.32 mln Capital IQ Consensus.
The Company's expectations for 2017 are:
Mid- to high-teens consolidated revenue growth
Consolidated EBITDA margin1 of 6.0% to 6.5%
"Our businesses continue to win new work across the portfolio, with broad project wins driving Company backlog above $4 billion for the first time in our Company's 95-year history. For the fifth consecutive quarter, Construction segment backlog finished above the $1-billion mark"
7:00 am Xylem beats by $0.02, reports revs in-line; guides FY17 EPS above consensus, revs above consensus (XYL) :
Reports Q2 (Jun) earnings of $0.59 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.57; revenues rose 24.9% year/year to $1.16 bln vs the $1.17 bln Capital IQ Consensus.
Co issues raised guidance for FY17, sees EPS of $2.30-2.40 from $2.23-2.38, excluding non-recurring items, vs. $2.31 Capital IQ Consensus Estimate; raises FY17 revs of $4.65-4.70 bln from $4.50-4.60 bln vs. $4.6 bln Capital IQ Consensus Estimate.
Orders exceeded $1.2 billion in the second quarter, growing eight percent organically. On a pro forma organic basis, Xylem projects revenue growth of three to four percent. On an organic basis, which excludes the impact of acquisitions and the impact of foreign exchange translation, Xylem's revenue growth is now anticipated to be in the range of two to three percent. "Looking ahead, we have solid plans and are operating in improving end markets, which reinforce our confidence in our ability to deliver solid growth and margin expansion in line with our improved guidance for the full year."
7:00 am Bristol-Myers announces that the FDA has approved Opdivo (nivolumab) injection for the treatment of patients with microsatellite instability-high (MSI-H) or mismatch repair deficient (dMMR) metastatic colorectal cancer (mCRC) that has progressed with a fluoropyrimidine, oxaliplatin, and irinotecan (BMY) :
Approval for this indication has been granted under accelerated approval based on overall response rate (:ORR) and duration of response.
In the CheckMate -142 trial, among patients who received prior treatment with a fluoropyrimidine, oxaliplatin, and irinotecan, 28% responded to treatment with Opdivo.
Among these responders, the median duration of response was not reached
Opdivo is associated with the following Warnings and Precautions including immune-mediated: pneumonitis, colitis, hepatitis, endocrinopathies, nephritis and renal dysfunction, skin adverse reactions, encephalitis, other adverse reactions; infusion reactions; and embryo-fetal toxicity.
7:00 am Asian Markets Close: Nikkei +0.3%, Hang Seng +0.8%, Shanghai +0.6% (:SUMRX) :
Equity indices in the Asia-Pacific region ended Tuesday on a higher note. Regional economic data included below-consensus Manufacturing PMI readings from India and Japan while China's Caixin Manufacturing PMI beat expectations. The People's Bank of China reportedly uncovered operational violations at 40 Chinese banks. The banks have up to six months to correct the issues. In Japan, Chief Cabinet Secretary Yoshihide Suga confirmed that Prime Minister Shinzo Abe plans to reshuffle his cabinet on August 3. The Reserve Bank of Australia left its cash rate unchanged at 1.50%, as expected. The central bank noted that the relative strength of the Australian dollar results from weakness in the U.S. dollar. The Reserve Bank of India will meet overnight.
In economic data:
Japan's July Manufacturing PMI 52.1 (expected 52.2; last 52.2)
China's July Caixin Manufacturing PMI 51.1 (consensus 50.4; last 50.4)
India's Nikkei July Manufacturing PMI 47.9 (expected 50.8; last 50.9)
South Korea's July Nikkei Manufacturing PMI 49.1 (last 50.1)
Australia's July AIG Manufacturing Index 56.0 (last 55.0)
South Korea's July CPI +0.2% month-over-month (last -0.1%); +1.9% year-over-year (consensus 2.0%; last 1.9%). July trade surplus narrowed to KRW10.65 billion from KRW10.77 billion. July Imports +14.5% year-over-year (last 19.8%) and July Exports +19.5% year-over-year (last 13.6%)
---Equity Markets---
Japan's Nikkei edged up 0.3%. Toshiba spiked 11.0% while Nitto Denko, Yamato Holdings, Teijin, Sumitomo Mitsui Financial, T&D Holdings, Dentsu, Sumitomo Mitsui, Sony Financial Holdings, and Mitsubishi advanced between 1.8% and 3.7%.
Hong Kong's Hang Seng climbed 0.8%, nearing its high from 2015. Financials ended in the lead with Ping An Insurance, China Life Insurance, BoC Hong Kong, Bank of China, Bank of East Asia, China Construction Bank, ICBC, and Hang Seng Bank climbed between 0.8% and 4.1%. On the downside, Geely Automobile lost 1.8%.
China's Shanghai Composite slipped from its high in afternoon action, but charged to a fresh high into the close, adding 0.6%. Shanghai Jin Jiang International Industrial Investment, Shanghai Lujiazui Finance & Trade Zone Development, Anhui Expressway, Bestsun Energy, and Beijing Teamsun Technology gained between 4.5% and 5.1%.
India's Sensex ticked up 0.2% with more than half of its components moving higher. Hero MotoCorp, Maruti Suzuki, and Mahidra&Mahindra gained between 1.8% and 2.1% while tech consultants were mixed. Wipro gained 1.8%, Tata Consultancy shed 0.2%, and Infosys lost 0.6%. Lupin was the weakest performer, falling 1.4%.
---FX---
USDJPY +0.2% to 110.45
USDCNY -0.1% to 6.7203
USDINR -0.1% to 64.08
6:57 am Glatfelter Co misses by $0.13, misses on revs (GLT) :
Reports Q2 (Jun) loss of $0.06 per share, excluding non-recurring items, $0.13 worse than the Capital IQ Consensus of $0.07; revenues fell 4.7% year/year to $387.3 mln vs the $394.84 mln Capital IQ Consensus.
In the Composite Fibers and Advanced Airlaid Materials business units, net sales increased by 1.4% and 4.9%, respectively, on a constant currency basis.
Specialty Papers' net sales declined 8.6% in the quarter-over-quarter comparison.
"We had solid growth in shipping volumes and improved performance in our engineered materials businesses during the quarter," said Dante C. Parrini, Chairman and Chief Executive Officer. "However, our overall results for the quarter were lower than expected due to continued weakness in Specialty Papers' markets. Volumes in our Composite Fibers business strengthened, increasing 3% over last year's second quarter and 4% year-to-date, driven by improved demand across most product lines and particularly wall cover products. While we are seeing steady growth in the Composite Fibers business, we remain focused on our cost optimization initiatives that are expected to deliver $10 million in cost savings in 2017. The Advanced Airlaid Materials business performed well delivering top-line growth and improved profitability, as operating income increased 11% over the prior-year quarter and 10% for the year. For the remainder of 2017, we expect continued growth in shipments and strong operating performance from our engineered materials businesses. We also look forward to the incremental growth expected from our new Fort Smith, Arkansas facility coming on-line later this year with commercial shipments beginning early 2018."
6:56 am Louisiana-Pacific reports EPS in-line, revs in-line (LPX) :
Reports Q2 (Jun) earnings of $0.58 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.58; revenues rose 19.2% year/year to $694 mln vs the $700.73 mln Capital IQ Consensus.
"Despite concerns about lot availability and labor shortages constraining new construction, we are encouraged by the year-over-year increase in single-family starts...In the second half of the year, we will remain focused on sustainable improvements and growth in all of our businesses, including continued siding growth and launching of new specialty products."
6:54 am Mosaic beats by $0.06, reports revs in-line (MOS) :
Reports Q2 (Jun) earnings of $0.29 per share, excluding $0.01 in non-recurring items, $0.06 better than the Capital IQ Consensus of $0.23; revenues rose 4.7% year/year to $1.75 bln vs the $1.75 bln Capital IQ Consensus.
Guidance: Total sales volumes for the Phosphates segment are expected to range from 2.2 to 2.5 mln tonnes for the third quarter of 2017, compared to 2.5 mln tonnes last year. Total sales volumes for the Potash segment are expected to range from 1.9 to 2.2 mln tonnes for the third quarter of 2017, compared to 2.2 mln tonnes last year. For calendar 2017, Mosaic now expects: Canadian resource taxes to range from $90 to $110 mln, narrowed from previous guidance of $85 to $135 mln. Brine management costs to range from $150 to $160 mln, down from $160 to $180 mln. Capital expenditures in the range of $800 to $850 mln down from a range of $800 to $900 mln. Potash sales volumes in the range of 8.1 to 8.6 mln tonnes, narrowed from 8.0 to 8.75 mln tonnes. Phosphates sales volumes in the range of 9.5 to 10 mln tonnes, narrowed from 9.5 to 10.25 mln tonnes. International Distribution sales volumes in the range of 6.75 to 7.25 mln tonnes, down from 7.0 to 7.5 mln tonnes.
6:51 am Xerox beats by $0.07, misses on revs; narrows FY17 EPS in-line (XRX) :
Reports Q2 (Jun) earnings of $0.87 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $0.80; revenues fell 8.1% year/year to $2.57 bln vs the $2.6 bln Capital IQ Consensus.
Co issues in-line guidance for FY17, sees EPS of $3.20-3.44 (prior: $3.2-3.52) vs. $3.34 Capital IQ Consensus Estimate.
Xerox continues to expect to generate operating cash flow from continuing operations of $700 to $900 million and free cash flow from continuing operations of $525 to $725 million in 2017.
"We are pleased with the strong operating margins and cash flow we delivered, as well as the continued progress on our Strategic Transformation initiatives," said Jeff Jacobson, Xerox chief executive officer. "This resulted in solid operating results despite revenue declines, which were driven by lower equipment sales as we transition to the recently launched ConnectKey portfolio." Jacobson added, "The new product line-up has been met with enthusiasm by customers, partners and industry experts, fueling our confidence in improving revenue trends later this year and into next."
6:51 am Intl Game Tech. PLC misses by $0.17, beats on revs; reaffirms EBITDA guidance (IGT) :
Reports Q2 (Jun) earnings of $0.15 per share, excluding non-recurring items, $0.17 worse than the Capital IQ Consensus of $0.32; revenues fell 5.1% year/year to $1.22 bln vs the $1.2 bln Capital IQ Consensus. The constant currency decline of 5% is mostly attributable to the new Lotto concession dynamics and the sale of Double Down Interactive LLC, which closed on June 1, 2017. Global lottery same-store revenue, excluding Italy, grew 2.6% in the second quarter, on top of strong North America jackpot activity in the prior year period. Excluding multi-state jackpot games, global lottery same-store revenue grew 4.9%. In Italy, late numbers activity was lower than the elevated levels in the second quarter of 2016. Excluding late numbers, Italy Lotto wagers increased 1%. Gaming service revenue was primarily impacted by the sale of DoubleDown. The global installed base continues to grow, rising 2,701 units from the prior-year period. Global gaming product revenue increased 5% over the second quarter of 2016 driven by 25% growth in terminal sales that was partially offset by lower systems sales. The Company shipped 8,884 gaming machines worldwide during the second quarter, led by strong replacement unit demand.
The Company is maintaining its outlook for adjusted EBITDA of $1,600-$1,680 million, and the expectation for net debt remains $6,950-$7,150 million for the full year 2017 period. The outlook for maintenance and growth capital expenditures has been reduced by $50 million to $575-$625 million.
6:51 am TransUnion prices 22.5 mln (upsized from 20 mln shares) common stock offering by selling stockholders; price not disclosed (TRU) :
6:50 am CONSOL Energy beats by $0.07, beats on revs; updates guidance (CNX) :
Reports Q2 (Jun) earnings of $0.17 per share, $0.07 better than the Capital IQ Consensus of $0.10; revenues rose 202.8% year/year to $865.95 mln vs the $678.79 mln Capital IQ Consensus.
During the second quarter of 2017, CONSOL's E&P Division sold 92.2 Bcfe, or a decrease of 7% from the 99.3 Bcfe sold in the year-earlier quarter, which resulted primarily from both timing delays associated with the TIL schedule and from the company selling approximately 3.0 Bcfe of production related to the net developed acres located in Doddridge and Wetzel counties, West Virginia. As stated last quarter, the company expected to TIL three pads in the second quarter; however, due to operational delays, the company ended up turning-in-line one pad. Therefore, the company expects to TIL five pads in the third quarter, which includes the two delayed pads from the second quarter. Lastly, the decrease of 3.0 Bcfe of production associated with the West Virginia sale was retroactive starting on January 1, 2017 through May 31, 2017.
CONSOL Energy maintains its E&P Division production guidance for 2017 of approximately 420-440 Bcfe, while increasing its total E&P capital expenditures in 2017 to approximately $620-$645 million, compared to previous guidance of approximately $555 million. The increase in 2017 capital is driven primarily by three areas: additional capital associated with operational challenges in the second quarter, service cost inflation related to pressure pumping services, and continuous improvement progress. The continuous improvement progress is driven by improved drilling cycle times resulting in the company expecting to drill nine additional wells in 2017 and by modifying production protocols, both of which are expected to increase 2018 production to 520-550 Bcfe, compared to previous guidance of 490-520 Bcfe. Also, the company has added another layer of hedges for the expected incremental production in 2018 to help lock in returns and cash flows.
6:47 am Extended Stay America reports EPS in-line, misses on revs; lowers FY17 revs guidance (STAY) :
Reports Q2 (Jun) earnings of $0.31 per share, in-line with the Capital IQ Consensus of $0.31; revenues rose 1.7% year/year to $338.36 mln vs the $342.7 mln Capital IQ Consensus.
Comparable Hotel RevPAR for the three months ended June 30, 2017 grew 2.4% over the same period in 2016, driven by an improvement in occupancy of 220 basis points to 78.9% while Average Daily Rate ("ADR") declined slightly by 0.5%. Comparable Hotel RevPAR for the six months ended June 30, 2017 grew 2.3% to $49.44 driven by a 150 basis point increase in occupancy and a 0.2% increase in ADR compared to the same period in 2016.
Co lowers guidance for FY17, sees FY17 revs of $1.278-1.303 bln (Prior $1.285-1.31 bln) vs. $1.3 bln Capital IQ Consensus Estimate; continues to see comparable RevPAR +1.5-3.5%
6:47 am Houston American Energy provides production information on its Johnson State #1H well and provided an update with respect to the status of its drilling and completion operations in Reeves County, Texas (HUSA) :
On July 28, 2017, the operator on the Johnson State well began the process of shutting in the well pending completion of production handling facilities and tying into the gas sales line, which is anticipated within the next two weeks.
Prior to shut in, the latest daily flowback report indicated production rates of 351 barrels of oil per day and 4,269 mcf of natural gas per day, or a combined 1,062 barrels of oil equivalent per day.
The company's second Reeves County well, the O'Brien #3H, reached total depth on July 1, 2017.
The well, with a 4,575 foot horizontal leg in the Upper Wolfcamp A shale, is scheduled to commence hydraulic fracturing operations during the second half of August 2017.
We expect to see meaningful improvements in our production, revenue and profitability by the end of Q3 2017."
6:47 am Pfizer beats by $0.01, misses on revs; raises low end of FY17 EPS, reaffirms FY17 revs guidance (PFE) :
Reports Q2 (Jun) earnings of $0.67 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.66; revenues fell 1.9% year/year to $12.9 bln vs the $13.08 bln Capital IQ Consensus. reflecting a slight operational decline of $48 million and the unfavorable impact of foreign exchange of $202 million, or 2%. Excluding the revenues for HIS in both periods and the unfavorable impact of foreign exchange, second-quarter 2017 revenues increased by $248 million, or 2%. Second-quarter 2017 revenues excluding the net impact of acquisitions and divestitures completed in 2016 and the first six months of 2017 were flat operationally compared to second-quarter 2016.
Co issues guidance for FY17, raises EPS to $2.54-2.60 from $2.50-2.60, excluding non-recurring items, vs. $2.55 Capital IQ Consensus Estimate; reaffirms FY17 revs of $52-54 bln vs. $52.78 bln Capital IQ Consensus Estimate.
6:47 am Waddell & Reed beats by $0.01, reports revs in-line (WDR) :
Reports Q2 (Jun) earnings of $0.39 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.38; revenues fell 10.2% year/year to $286.7 mln vs the $285.25 mln Capital IQ Consensus.
The second quarter of 2017 excluded a tax charge of $8.9 million ($0.11 per diluted share) related to the implementation of new accounting guidance regarding the tax consequences of share-based payments. Assets under management ended the second quarter of 2017 at $80.4 billion, decreasing less than 1% compared to the prior quarter and decreasing 7% compared to the second quarter of 2016.
6:44 am Tata Motors domestic sales grows by 13% in July 2017 (TTM) :
The overall commercial vehicles sales in July 2017, in the domestic market were at 27,842 nos. higher by 15% over July 2016, due to ramp-up of BS4 production, across segments. The Company also passed on the benefits of GST to consumers by reducing the prices of its vehicles across all commercial vehicle segments.
In July 2017, Tata Motors passenger vehicles, in the domestic market, recorded sales at 14,933 nos., with a growth of 10%, over 13,547 units, in July 2016, due to continued strong demand for the Tata Tiago and the Tata Tigor. While the car segment marginally degrew by 1% at 12,125 nos., the UV segment grew by 110% at 2,808 nos., due to strong demand for Tata HEXA.
6:44 am Kamada reports EPS in-line, misses on revs; reaffirms FY17 revs guidance (KMDA) :
Reports Q2 (Jun) earnings of $0.13 per share, in-line with the Capital IQ Consensus of $0.13; revenues rose 70.7% year/year to $32.55 mln vs the $33.3 mln two analyst estimate.
Co reaffirms guidance for FY17, sees FY17 revs of $100 mln vs. $101.31 mln two analyst estimate.
Upcoming Milestones:
PDUFA date of August 29, 2017 for the completion of the review of the BLA for Anti-Rabies IgG therapy.
Expect to receive FDA approval to conduct a pivotal Phase 3 trial for inhaled AAT.
Last patient enrolled in February 2017 in the Company's Type-1 Diabetes Phase 2 trial; top-line results anticipated in the second half of 2017.
Completed patient recruitment in the Company's lung transplantation Phase 2 trial; expect to have an interim report from this trial in the second half of 2017.
Anticipate submitting Clinical Trial Application for IV AAT in GvHD in Europe in the second half of 2017, and initiating the combined U.S. and European trial in 2018.
As of June 30, 2017, the Company had cash, cash equivalents and short term investments of $26.9 million, compared with $28.6 million as of December 31, 2016.
6:41 am Mobile Mini appoints Van Welch to Executive Vice President & CFO, effective August 31, 2017 (MINI) : Most recently, Mr. Welch held the position of Executive Vice President and Chief Financial Officer at Willbros Inc. (WG), and previously served in senior finance roles at KBR Group.
6:41 am WestJet reports Q2 results (WJAFF) :
Co reported Q2 EPS of CAD 0.41 vs CAD 0.30 last year; revs +11.1% YoY to CAD 1.055 bln.
WestJet achieved its 49th consecutive quarter of profitability and flew a record 5.9 million guests. Based on the trailing twelve months, the airline achieved a return on invested capital of 9.8 per cent, compared with the 10.0 per cent reported in the previous quarter.
6:41 am Edge Therapeutics reports Q2 net loss, in-line (EDGE) :
Q2 EPS ($0.44) vs ($0.44) Capital IQ Consensus Estimate
"NEWTON 2, our Phase 3 clinical study designed to support potential registrations throughout the world for EG-1962 as a treatment for aneurysmal subarachnoid hemorrhage (aSAH) delivered via external ventricular drain, is ongoing. We look forward to the study's pre-planned futility analysis in late-2017, top-line efficacy results from the interim analysis in the first quarter of 2018 and, if needed, top-line results from the full study in late-2018. We are also evaluating alternative routes of administration to expand the population of aSAH patients who may benefit from EG-1962. This includes our ongoing controlled study of EG-1962 delivered directly into the basal cisterns of the brain in good-grade patients with ruptured brain aneurysms. In addition, during the quarter, we initiated development activities for lumbar administration of EG-1962. There remains a significant unmet need to improve outcomes in patients with aSAH, and we look forward to receiving EG-1962 data in the coming quarters."
6:40 am Quality Systems beats by $0.02, beats on revs; lowers FY18 EPS in-line, reaffirms FY18 revs guidance (QSII) :
Reports Q1 (Jun) earnings of $0.17 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.15; revenues rose 7.1% year/year to $130.9 mln vs the $126.75 mln Capital IQ Consensus.
Co issues guidance for FY18, sees EPS of $0.62-0.70 (prior: $0.66-0.74), excluding non-recurring items, vs. $0.70 Capital IQ Consensus Estimate; sees FY18 revs of $512-530 mln vs. $521.93 mln Capital IQ Consensus Estimate.
Lowering FY18 EPS guidance to account for incremental investments in the EagleDream Health platform.
"Fiscal 2018 is off to a very solid start, as we saw strong financial results and continued to make progress on our strategic plan. During the quarter, we leveraged our platform as a service strategy to further enhance our solution offerings and enhance the value we bring to our clients. Furthermore, the significant modifications we've made to our business model will simplify the process and increase the ease of partnering with NextGen going forward. I feel very confident in our position within the market and our ability to drive bookings growth in the back half of fiscal 2018," commented Rusty Frantz, President and Chief Executive Officer of Quality Systems, Inc.
6:38 am Horizon Global beats by $0.17, beats on revs; guides Q3 EPS below consensus, revs above consensus; raises FY17 EPS above consensus, reaffirms FY17 revs guidance; acquires Best Bars Ltd. (HZN) :
Reports Q2 (Jun) adj. earnings of $0.84 per share, $0.17 better than the Capital IQ Consensus of $0.67; revenues rose 51.1% year/year to $253.6 mln vs the $241.08 mln Capital IQ Consensus.
Co issues mixed guidance for Q3, sees EPS of $0.35-0.40, excluding non-recurring items, vs. $0.44 Capital IQ Consensus Estimate; sees Q3 revs of $225-235 mln vs. $220.78 mln Capital IQ Consensus Estimate.
Co issues guidance for FY17, raises EPS to $1.04-1.14, excluding non-recurring items, vs. $0.98 Capital IQ Consensus Estimate; reaffirms FY17 rev +30-35%.
Regionally, Horizon Americas delivered strong growth in e-commerce and aftermarket channels as sales recovered from order delays in the first quarter of 2017. Horizon Asia-Pacific experienced double-digit organic growth by expanding into industrial products. As a whole, the Company's operating profit more than doubled as a result of leverage from increased sales and operational improvements." "We reiterate our confidence in achieving 9 million in expected synergies during 2017 due to our Westfalia integration efforts. The momentum in Horizon Europe-Africa continues to build, and we expect to realize ongoing benefits from the business in the back half of 2017 and beyond.
"We are also pleased to announce our recently completed acquisition of Best Bars Limited, an established leader in the towing and trailering industry in New Zealand. Best Bars is now part of Horizon Asia-Pacific, and we expect this acquisition to support the growth of our global OE business."
6:38 am Eaton misses by $0.01, reports revs in-line; guides Q3 EPS in-line; narrows FY17 EPS in-line (ETN) :
Reports Q2 (Jun) earnings of $1.15 per share, $0.01 worse than the Capital IQ Consensus of $1.16; revenues rose 1.0% year/year to $5.13 bln vs the $5.14 bln Capital IQ Consensus.
Co issues in-line guidance for Q3, sees EPS of $1.20-1.30 vs. $1.28 Capital IQ Consensus Estimate.
Co issues narrows guidance for FY17, sees EPS of $4.50-4.70 from $4.45-4.75 vs. $4.65 Capital IQ Consensus Estimate.
"Operating margins in the second quarter were 17.5 percent, and excluding restructuring costs of $11 million, 18.1 percent...Margins increased 0.5 percentage point over the first quarter of 2017, excluding restructuring costs in both quarters."
6:36 am Versum Materials beats by $0.08, beats on revs; raises FY17 guidance (VSM) :
Reports Q3 (Jun) earnings of $0.52 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.44; revenues rose 19.8% year/year to $290.8 mln vs the $265.64 mln Capital IQ Consensus.
Adjusted EBITDA for the fiscal third quarter ended June 30, 2017 was $97.7 million versus $80.3 million in the same quarter a year ago, a 21.7% increase year on year. Strong volumes in both DS&S and Materials coupled with modestly favorable currency were partially offset by expected higher operating and selling and administrative costs associated with becoming an independent company and unfavorable price/mix in the Materials segment, primarily in Process Materials.
Co raises guidance for FY17, sees FY17 revs of $1.09-1.12 bln (Prior $1.02-1.065 bln) vs. $1.07 bln Capital IQ Consensus Estimate; sees Adj-EBITDA of $365-375 mln (Prior $340-355 mln)
6:36 am Denison Mining reports a new high-grade uranium intersection in basement rocks from the first hole completed as part of the summer 2017 drilling program at the Waterbury Lake property (DNN) :
Drill hole WAT-17-443 intersected 1.1% eU3O8 over 0.8 metres (from 296.9 to 297.7 metres) ~1.5 kilometres to the northeast of the property's J Zone uranium deposit.
The high-grade mineralization occurs immediately below a broader 10.3 metre mineralized interval (from 282.8 to 293.1 metres) with an average grade of 0.15% eU3O8.
The mineralization is open in all directions and follow-up drilling is presently underway.
6:36 am Ingredion beats by $0.03, misses on revs; reaffirms FY17 EPS guidance (INGR) :
Reports Q2 (Jun) earnings of $1.89 per share, $0.03 better than the Capital IQ Consensus of $1.86; revenues rose 0.1% year/year to $1.46 bln vs the $1.5 bln Capital IQ Consensus.
Co reaffirms guidance for FY17, sees EPS of $7.50-7.80, excluding non-recurring items, vs. $7.58 Capital IQ Consensus Estimate.
"We continue to deliver shareholder value with another strong quarter, including solid operating income and earnings per share growth. Good operating efficiency, the impact of acquisitions, and higher specialty volumes more than offset headwinds in South America," said Ilene Gordon, chairman, president and chief executive officer. "Operating income in North America reached record levels, but was lower in South America due to macroeconomic headwinds and the temporary interruption of manufacturing activities in Argentina associated with the implementation of a new labor agreement."
6:35 am Harris reports EPS in-line, beats on revs; guides FY18 EPS below consensus, revs in-line (HRS) :
Reports Q4 (Jun) earnings of $1.49 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $1.49; revenues rose 0.6% year/year to $1.54 bln vs the $1.52 bln Capital IQ Consensus.
Co issues guidance for FY18, sees EPS of $5.85-6.05, excluding non-recurring items, vs. $6.08 Capital IQ Consensus Estimate; sees FY18 revs of $6.02-6.14 bln vs. $6.07 bln Capital IQ Consensus Estimate. Harris expects fiscal 2018 free cash flow in a range of $850 - 900 million.
"Our fiscal 2017 performance, including higher revenue and strong orders in the fourth quarter, positions us well for returning to growth in fiscal 2018 and accelerating in the medium term...We enter the year at an inflection point, with positive momentum and a continued focus on generating organic growth, driving flawless execution, maintaining margins through operational excellence, and deploying capital in a balanced manner."
6:34 am Epizyme and US Oncology Research announce a collaboration to screen and identify relapsed or refractory follicular lymphoma and diffuse large B-cell lymphoma patients with EZH2 mutations (EPZM) :
Under the collaboration, US Oncology Research will implement a separate screening protocol in 68 locations in the U.S. to identify relapsed or refractory FL and DLBCL patients with tumors bearing EZH2 mutations who may be candidates for enrollment in Epizyme's ongoing Phase 2 clinical trial.
US Oncology Research will direct identified patients to the tazemetostat Phase 2 clinical trial for protocol screening and potential enrollment into the trial. Sites began screening patients in July 2017.
6:34 am Crestwood Equity Partners reports Q2 (Jun) results, beats on revs; updates outlook (CEQP) :
Reports Q2 (Jun) loss of $0.28 per share, may not be comparable to the Capital IQ Consensus of ($0.07); revenues rose 41.3% year/year to $850.3 mln vs the $706.34 mln Capital IQ Consensus.
Second quarter 2017 Adjusted EBITDA of $97.3 million, compared to $106.5 million in the second quarter 2016; Adjusted EBITDA for the second quarter 2017 reflects the deconsolidation of Stagecoach Gas Services compared to the second quarter 2016 which included 100% contribution in April and May 2016
Updated Outlook:
Adjusted EBITDA of $380 million to $400 million
Distributable cash flow of $210 million to $230 million
Growth project capital spending and joint venture contributions unchanged in the range of $225 million to $250 million
6:33 am Quality Systems to acquire EagleDream Health, a cloud-based analytics company, for $26 mln in cash (QSII) :
With its vendor-agnostic platform for managing value-based care, EagleDream Health empowers organizations with intuitive analytics and actionable intelligence to achieve successful population health management.
The proposed acquisition will enable NextGen Healthcare to enhance the care experience and increase patient engagement for ambulatory clinics and health systems while reducing the per capita cost of healthcare and improving the work-life balance for clinicians and staff.
The transaction is expected to close in the current quarter.
6:33 am Thomson Reuters beats by $0.09, reports revs in-line; raises FY17 EPS above consensus; reaffirms revenue (TRI) :
Reports Q2 (Jun) earnings of $0.60 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus of $0.51; revenues rose 0.5% year/year to $2.78 bln vs the $2.78 bln Capital IQ Consensus, recurring revenues and contributions from acquisitions were mostly offset by the impact of foreign currency. At constant currency, revenues increased 2%. Operating profit was essentially unchanged as slightly higher revenues and lower expenses, which reflected savings from the company's simplification initiatives, were offset by the unfavorable impact of fair value adjustments associated with foreign currency derivatives embedded in certain customer contracts.
Co issues guidance for FY17, raises EPS to $2.40-2.45 from $2.35, excluding non-recurring items, vs. $2.35 Capital IQ Consensus Estimate. Based on the results of the first half of the year, the company raised its full-year outlook for adjusted EBITDA margin and adjusted EPS. The company reaffirmed its full-year outlook for revenue growth and free cash flow. For the full-year 2017, the company currently expects: Low single-digit revenue growth Adjusted EBITDA margin to range between 29.3% - 30.3% - up from previous guidance of 28.8% - 29.8% Free cash flow to range between $0.9 billion and $1.2 billion, which reflects cash payments in 2017 relating to the fourth-quarter 2016 charges, the $500.
6:33 am Willbros Group CFO Van A. Welch to resign after accepting a similar position in a different industry effective August 30 (WG) :
6:32 am Radian Group beats by $0.07, beats on revs (RDN) :
Reports Q2 (Jun) earnings of $0.48 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $0.41; revenues rose 4.9% year/year to $302.91 mln vs the $299.07 mln Capital IQ Consensus.
New MI business written increases 11% and MI in force increases 8% year-over-year.
Book value per share grows 3% and tangible book value per share grows 12% year-over-year.
"I am pleased to report on our strong operating performance in the second quarter, including a 26% increase in adjusted diluted net operating income per share, 8% growth in our mortgage insurance in force and a 12% increase in tangible book value per share," said Radian's Chief Executive Officer Rick Thornberry. "I continue to be excited about the opportunities ahead for Radian. We have a unique opportunity to leverage our market-leading Mortgage Insurance franchise combined with our core capabilities across the Services segment to deliver high-value and relevant products and services. Successfully capturing these opportunities will enable us to further deepen customer relationships, grow sustainable revenues and profitability and increase stockholder value."
6:32 am Glowpoint completes debt recapitalization, resulting in an increase of approx. $8.7 mln to stockholders' equity; therefore, the co expects to meet the continued listing standards of the NYSE (GLOW) :
6:32 am Columbus McKinnon beats by $0.19, beats on revs (CMCO) :
Reports Q1 (Jun) earnings of $0.51 per share, $0.19 better than the Capital IQ Consensus of $0.32; revenues rose 36.7% year/year to $203.7 mln vs the $190.62 mln Capital IQ Consensus.
Backlog increased 12.2% to $173.3 million as of June 30, 2017 compared with March 31, 2017.
"We anticipate that sales in the fiscal second quarter will be comparable with the quarter just completed, although sales mix will provide somewhat lower operating income. In the meantime, we remain focused on our near-term priorities: the integration of STAHL, strengthening our core business for greater profitability, further leveraging our Magnetek technology for greater revenue potential and reducing debt."
6:31 am Holly Energy Partners misses by $0.10, misses on revs (HEP) :
Reports Q2 (Jun) earnings of $0.36 per share, $0.10 worse than the two analyst estimate of $0.46; revenues rose 15.0% year/year to $109.14 mln vs the $113.12 mln Capital IQ Consensus.
Distributable cash flow was $60.9 million for the quarter, up $5.2 million, or 9.3% compared to the second quarter of 2016. HEP announced its 51stconsecutive distribution increase on July 27, 2017, raising the quarterly distribution from $0.62 to $0.6325 per unit, which represents an increase of 8.1% over the distribution for the second quarter of 2016, exceeding HEP's distribution growth target of 8%.
6:27 am WestRock acquires Hannapak a provider of folding cartons to a variety of markets, including beverage, food, confectionary, and healthcare; WestRock will pay AUD$75 mln in cash (WRK) :
6:22 am Corvel reports Q1 results (CRVL) :
Q1 EPS $0.46 vs. $0.38 last year; rev +7% to $138 mln (no estimates).
Revenue growth for the quarter was driven by an increase in the Company's claims management services. Network Solutions, including Pharmacy Benefit Management (PBM) programs, also had improved results driven by CorVel's value-added performance for clients. Payors face increasing pressure to help contain inflating medical costs which has increased interest in the Company's medical review and provider management services. The Company recently announced the release of an advanced claims management workstation for the insurance carrier marketplace.
6:18 am ICHOR Corporation commences public offering of 5.5 mln ordinary shares by selling shareholders (ICHR) :
6:18 am Freeport-McMoRan sells certain interest in the Gulf of Mexico Outer Continental Shelf to Cox Oil Offshore; terms not disclosed (FCX) :
6:13 am On The Wires (:WIRES) :
Visa (V) announced its support of the new global QR Code Payment Specifications from EMVCo, the global technical body that manages the EMV Specifications. The specifications cover consumer-presented and merchant-presented QR code use cases for digital payment acceptance. QR codes are two-dimensional machine-readable barcodes, used to facilitate mobile payments at the point-of-sale.
Cellcom Israel Ltd. (CEL) announced that following the previously reported amendment to the Company's cellular license in relation to the requirement that Israeli citizens and residents from among the Company's founding shareholders hold at least 5% of the Company's outstanding shares and other means of control, as of July 2017, the Israeli Ministry of Communications amended the Company's cellular license so as to postpone the application of such requirement until October 31, 2017.
TransAlta Corporation (TAC) and TransAlta Renewables responded to Fortescue Metals Group Limited's (FSUMF) view that the South Hedland Power Station has not yet achieved commercial operation. All the conditions to establishing that commercial operations have been achieved under the terms of the power purchase agreement with FMG have been satisfied in full. These conditions include receiving a commercial operation certificate, successfully completing and passing certain test requirements, and obtaining all permits and approvals required from the North West Interconnected System and government agencies. The South Hedland Power Station is fully operational and able to meet all of FMG's requirements under the terms of the PPA.
6:11 am MDC Holdings beats by $0.03, beats on revs (MDC) :
Reports Q2 (Jun) earnings of $0.64 per share, $0.03 better than the Capital IQ Consensus of $0.61; revenues rose 13.6% year/year to $648.97 mln vs the $623.95 mln Capital IQ Consensus.
Selling, general and administrative expenses as a percentage of home sale revenues improved 40 basis points from 11.3% to 10.9%.
Dollar value of net new orders of $710.6 million versus $722.5 million.
Monthly sales absorption pace of 3.41 improved 2%.
Ending backlog dollar value up 4% to $1.68 billion from $1.61 billion.
Approved 3,342 lots for purchase in 44 communities.
Last twelve months return on equity improved 340 basis points to 9.3%.
Larry A. Mizel, MDC's Chairman and Chief Executive Officer, stated, "We are pleased to announce our 2017 second quarter results, highlighted by a 26% year-over-year increase in our net income. For the second consecutive quarter, we realized a year-over-year improvement in our backlog conversion rate, which helped to drive a double-digit increase in home sale revenues and improved operating leverage. The improved backlog conversion rate was achieved based on stabilizing build-to-order construction cycle times, which decreased sequentially for the first time in almost two years."
6:10 am Pioneer Energy misses by $0.02, beats on revs; offers Q3 guidance (PES) :
Reports Q2 (Jun) loss of $0.21 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus of ($0.19); revenues rose 72.0% year/year to $107.13 mln vs the $105.23 mln Capital IQ Consensus.
Q3 Outlook:
In the third quarter of 2017, Production Services Segment revenue is estimated to be up approximately 5% to 10% as compared to the second quarter of 2017. Production Services Segment margin is estimated to be 24% to 26% of revenues in the third quarter. Drilling rig utilization in the third quarter is estimated to average 74% to 77%. Drilling Services Segment margin is expected to be approximately $8,100 to $8,500 per day in the third quarter.
6:09 am Archrock beats by $0.12, beats on revs (AROC) :
Reports Q2 (Jun) loss of $0.03 per share, excluding non-recurring items, $0.12 better than the Capital IQ Consensus of ($0.15); revenues rose 4.2% year/year to $198 mln vs the $196 mln two analyst estimate.
"During the quarter, we grew operating horsepower by 40,000 horsepower, improved contract operations gross margin percentage by 200 basis points, and increased EBITDA, as adjusted, $7 million sequentially. We continued to drive new orders at impressive levels, and in spite of the recent commodity price pull-back, demand for our services has remained at elevated levels providing visibility of new starts through 2017 and into 2018." "As we have communicated over the past nine months, 2017 is a transition year with the prior cyclical downturn giving way to the expansion we expected in the second half of 2017," continued Childers.
"We are confident that expansion is underway and we expect to see solid year-over-year growth in year-end 2017 operating horsepower and full year aftermarket services revenue."
6:08 am Baytex Energy Trust reports Q2 (Jun) results, beats on revs; updates guidance (BTE) :
Reports Q2 (Jun) earnings of CC$0.04 per share, may not be comparable to the Capital IQ Consensus of (CC$0.19); revenues rose 40.2% year/year to CC$274.37 mln vs the CC$259.23 mln single analyst estimate.
Production increased 5% to average 72,812 boe/d (79% oil and NGL) in Q2/2017, as compared to 69,298 boe/d (79% oil and NGL) in Q1/2017. Production in the first half of 2017 averaged 71,065 boe/d. During the second quarter, exploration and development capital expenditures totaled $78.0 million, bringing the aggregate spending in the first half of 2017 to $174.6 million. We participated in the drilling of 47 (15.3 net) wells with a 100% success rate during the second quarter.
Updated guidance:
Reflective of our strong operating results in the first half of the year, we are tightening our 2017 production guidance range to 69,000 to 70,000 boe/d (previously 68,000 to 70,000 boe/d). We are now forecasting full-year 2017 exploration and development capital expenditures of $310 to $330 million (previously $325 to $350 million). We are also reducing our guidance for operating expenses by 4% (at the mid-point) to $10.75-$11.25/boe as we continue to drive cost efficiencies in our business.
6:08 am Archrock Partners beats by $0.01, reports revs in-line (APLP) :
Reports Q2 (Jun) earnings of $0.08 per share, $0.01 better than the Capital IQ Consensus of $0.07; revenues fell 1.3% year/year to $138.3 mln vs the $137.1 mln Capital IQ Consensus.
EBITDA, as adjusted was $66.9 million for the second quarter of 2017, compared to $61.1 million for the first quarter of 2017 and $71.2 million for the second quarter of 2016.
6:06 am Sequans Communications reports EPS in-line, misses on revs; guides Q3 EPS below consensus, revs below consensus (SQNS) :
Reports Q2 (Jun) loss of $0.06 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of ($0.06); revenues rose 33.8% year/year to $13.22 mln vs the $14.48 mln Capital IQ Consensus.
Gross margin was 42.1% compared to 47.1% in the first quarter of 2017 and compared to 44.6% in the second quarter of 2016, reflecting an increase in the proportion of module sales in the product mix in the second quarter of 2017.
Co issues downside guidance for Q3, sees EPS of ($0.07-0.05), excluding non-recurring items, vs. ($0.04) Capital IQ Consensus Estimate; sees Q3 revs of $15-17 mln vs. $17.59 mln Capital IQ Consensus Estimate.
6:06 am Air Products beats by $0.06, beats on revs; guides Q4 EPS in-line (APD) :
Reports Q3 (Jun) earnings of $1.65 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $1.59; revenues rose 10.8% year/year to $2.12 bln vs the $2.06 bln Capital IQ Consensus on eight percent higher volumes and five percent favorable energy pass-through, partially offset by two percent unfavorable currency. Volumes were positive across all three regions, while continued progress on the Jazan project was partially offset by lower LNG activity. Taken together, the Industrial Gas regions increased overall volumes by eight percent. Pricing was flat with the prior year.
Co issues in-line guidance for Q4, sees EPS of $1.65-1.70, excluding non-recurring items, vs. $1.67 Capital IQ Consensus Estimate.
Co issues in-line guidance for FY17, raises EPS $0.10 to $6.20-6.25, excluding non-recurring items, vs. $6.15 Capital IQ Consensus Estimate.
"We continue to be optimistic about the future performance of Air Products. We see significant opportunities to use our very strong balance sheet to invest in our core business and create value for our shareholders. We have increased our full-year guidance by $0.10 at midpoint, now representing a 10 percent increase over prior year."
6:06 am Lumber Liquidators beats by $0.24, beats on revs; comparable store sales +8.8% (LL) :
Reports Q2 (Jun) earnings of $0.16 per share, $0.24 better than the Capital IQ Consensus of ($0.08); revenues rose 10.7% year/year to $263.5 mln vs the $256.89 mln Capital IQ Consensus.
Net sales in comparable stores increased $21 million, or 8.8%, driven by a 5.3% increase in the number of customers invoiced and a 3.5% increase in the average sale.
Merchandise sales in comparable stores grew 6.1% in the quarter. Net sales in non-comparable stores increased $4.4 million.
The Company did not open any stores during the second quarter of 2017, so total store count remained at 385 as of June 30, 2017.
Dennis Knowles, Chief Executive Officer, commented, "In the quarter, we saw positive results in net revenues, comparable store sales and customer traffic, in addition to gross margin expansion which drove positive operating results. Customers have responded to the investments that we made to broaden and strengthen our assortment with innovative products, while also ensuring the right mix of those products were available in our stores. Although we are pleased with the results in the quarter, we still have work to do. Our management team is confident in the potential of our business, and remains dedicated to carrying out the long-term strategy of the Company. We believe that by continuing to work our plan, we will position the Company for long-term profitability and growth."
6:05 am Genesee & Wyoming beats by $0.07, reports revs in-line (GWR) :
Reports Q2 (Jun) earnings of $0.80 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $0.73; revenues rose 7.8% year/year to $540.43 mln vs the $539.59 mln Capital IQ Consensus.
North American Operations traffic increased 10,924 carloads, or 2.8%, to 397,047 carloads in the second quarter of 2017. Excluding 11,483 carloads from new operations, same railroad traffic decreased 559 carloads, or 0.1%. The traffic decrease was principally due to decreases of 1,873 carloads of metallic ores traffic (primarily in the Mountain West and Coastal regions), 1,839 carloads of petroleum products traffic (primarily in the Northeast and Mountain West regions), 1,695 carloads of metals traffic (primarily in the Southern and Coastal regions), 1,547 carloads of chemicals and plastics traffic (primarily in the Mountain West Region) and 1,514 carloads of pulp and paper traffic (primarily in the Southern and Coastal regions), partially offset by increases of 3,235 carloads of agricultural products traffic (primarily in the Central and Mountain West regions), 2,422 carloads of waste traffic (primarily in the Northeast and Pacific regions) and 1,380 carloads of minerals and stone traffic (primarily in the Central Region). All remaining traffic increased by a net 872 carloads.
6:03 am Gener8 Maritime misses by $0.05, misses on revs (GNRT) :
Reports Q2 (Jun) loss of $0.11 per share, excluding non-recurring items, $0.05 worse than the Capital IQ Consensus of ($0.06); revenues fell 29.3% year/year to $74.95 mln vs the $76.55 mln two analyst estimate.
Increased vessel operating days by 18.0% to 3,352 in the three months ended June 30, 2017 compared to 2,841 in the same period in the prior year. Increased full fleet "ECO" operating days to 54.2% in the three months ended June 30, 2017, compared to 30.8% in the same period in the prior year.
"We continue to take important steps to strengthen our platform and balance sheet" said Peter Georgiopoulos, Chairman and Chief Executive Officer of Gener8 Maritime. "In this seasonally weaker rate environment, we remain focused on maximizing our financial flexibility in order to manage our business for the near- and long-term. We continue to dispose of older vessels, streamlining our fleet and focusing on high quality tonnage with the best return profile. This strengthens our competitive position in the market. We believe the strategy we are pursuing is prudent and reflects our approach to managing our balance sheet and market exposure."
6:03 am Armada Hoffler Properties reports FFO in-line, misses on revs; lowers FY17 FFO guidance (AHH) :
Reports Q2 (Jun) funds from operations of $0.25 per share, in-line with the Capital IQ Consensus of $0.25; revenues rose 10.4% year/year to $26.76 mln vs the $27.18 mln Capital IQ Consensus.
Co lowers guidance for FY17, sees FFO of $0.97-0.99 (Prior $0.99-1.03) vs. $0.98 Capital IQ Consensus Estimate.
5:50 am Shanghai...+0.60% (FXI) :
5:50 am S&P futures vs fair value: +8.50. Nasdaq futures vs fair value: +32.60. :
5:50 am European Markets : FTSE...7427.36...+55.40...+0.80%. DAX...12166...+47.50...+0.40%.
5:50 am Asian Markets : Nikkei...19986...+60.60...+0.30%. Hang Seng...27540...+216.20...+0.80%.
5:26 am Sony beats by JPY 6.53, beats on revs; raises FY18 revs outlook (SNE) :
Reports Q1 (Jun) earnings of YEN62.70 per share (Basic EPS was YEN64.03), YEN6.53 better than the Capital IQ Consensus of YEN56.17; revenues rose 15.2% year/year to YEN1858.1 bln vs the YEN1735.86 bln Capital IQ Consensus.
Co raises guidance for FY18, sees FY18 revs of YEN8300 bln (Prior YEN8000 bln) vs. YEN8021.31 bln Capital IQ Consensus Estimate.
5:05 am Allot Comms reports EPS in-line, beats on revs; reaffirms FY17 revs guidance (ALLT) :
Reports Q2 (Jun) loss of $0.07 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of ($0.07); revenues fell 15.1% year/year to $19.52 mln vs the $19.2 mln Capital IQ Consensus.
Co reaffirms guidance for FY17, sees FY17 revs of $80-84 mln vs. $81.58 mln Capital IQ Consensus Estimate. Revenues for the second half of 2017 are expected to be better than for the first half and the book to bill ratio for the year is expected to be above 1.
4:34 am Mazor Robotics beats by $0.08, reports revs in-line (Pre-announced Q2 revs) (MZOR) :
Reports Q2 (Jun) loss of $0.05 per share, excluding non-recurring items, $0.08 better than the single analyst estimate of ($0.13); revenues rose 86.7% year/year to $15.46 mln vs the $15.38 mln Capital IQ Consensus. The company pre-announced Q2 sales/orders in early July
The Company's gross margin for the three months ended June 30, 2017 was 69.4% compared to 76.9% in the year-ago second quarter. This expected decrease is attributed mainly to the higher manufacturing costs of the Mazor X compared to the Renaissance system and the inclusion of four Renaissance trade-ins to Mazor X
As previously announced, the Company received purchase orders for 19 systems in the 2017 second quarter and ended the quarter with a backlog of 14 systems.
4:20 am On The Wires (:WIRES) :
Showa Denko (SHWDY) has decided to increase prices of its high-purity fluorine-based gases for electronics. Specifically, SDK will increase prices of high-purity FC-116 and FC-14 gases by about 500 yen (US$4.5) per kilogram each as from shipments on September 1, 2017. SDK will start contacting its customers concerning this price increase. The company also announced that it started to supply "low-carbon" hydrogen gas made from used plastics (low-carbon hydrogen) at its Kawasaki Plant to TOMOE SHOKAI Co., Ltd.'s Shinsuna Hydrogen Station located in Koto-ku, Tokyo last month.
Wirecard (WRCDF) and mobilcom-debitel announced a 'ground-breaking collaboration'. From today onwards, all new Android smartphones sold by mobilcom-debitel will come with the preinstalled mobile payment app boon.
Isogenica Ltd, a leader in the design and construction of innovative and highly diverse synthetic antibody libraries, announced a new licensing deal with Takeda Pharmaceutical Company Limited (TKPYY). Under the terms of the agreement, Isogenica has granted Takeda licences to its family of llamdA VHH single-domain antibody libraries for the discovery, development and commercialisation of therapeutic products derived from these libraries. Isogenica is entitled to an upfront and annual licence payments. If antibodies are advanced into development, Isogenica is entitled to further licence fees, milestones and royalties.
Morrisons (MRWSY) is pleased to announce a major new, long-term wholesale supply initiative with McColl's, which will take wholesale supply sales to more than 1bn in due course. Morrisons is to start supplying both Safeway products and national brands to 1,300 McColl's convenience shops and 350 newsagents across the UK1. The new partnership will replace all McColl's existing supply arrangements in time. Morrisons will supply McColl's shops, with a phased programme starting in January 2018. By the end of 2018, the co expects total annualised wholesale sales to all its partners to be in excess of 700m (inc. tobacco). The co expects this new initiative to make an initial profit contribution in 2018/19, and increase thereafter.
Anglo American plc (NGLOY) announces the value of rough diamond sales (Global Sightholder Sales and Auction Sales) for De Beers' sixth sales cycle of 2017, amounting to $572 million.
4:19 am AstraZeneca granted Breakthrough Therapy Designation by the FDA for acalabrutinib for the treatment of patients with mantle cell lymphoma who have received at least one prior therapy (AZN) : The Breakthrough Therapy Designation is designed to expedite the development and regulatory review of new medicines that are intended to treat a serious condition and that have shown encouraging early clinical results, which demonstrate substantial improvement on a clinically-significant endpoint over available medicines and when there is significant unmet medical need.
4:08 am British American Tobacco says the Serious Fraud Office has opened a formal investigation into allegations of misconduct (BTI) : "As previously announced, we are investigating, through external legal advisers, allegations of misconduct. We have been co-operating with the Serious Fraud Office ("SFO") and British American Tobacco ("BAT") has been informed that the SFO has now opened a formal investigation. BAT intends to co-operate with that investigation."
3:58 am Worldpay & Vantiv (VNTV) granted extension by Panel on Takeovers and Mergers to finalize terms of their potential merger (WDDYF) :
For reference, on 5 July 2017, Worldpay and Vantiv (VNTV) announced that they had reached agreement in principle on the key terms of a potential merger of Worldpay and Vantiv. The announcement stated that in accordance with Rule 2.6(a) of the UK Takeover Code, Vantiv is required to clarify its intentions by no later than 5.00pm on 1 August 2017 (the "PUSU Deadline"), by either announcing a firm intention to make an offer or that it does not intend to make an offer.
Positive discussions are continuing between Worldpay and Vantiv, but there can be no certainty that a firm offer will be forthcoming.
Therefore, the Board of Worldpay has requested that the Panel on Takeovers and Mergers (the "Panel") extend the PUSU Deadline. In the light of this request, an extension has been granted by the Panel and, in accordance with Rule 2.6(a) of the Code, Vantiv is required, by not later than 5.00pm on 8 August 2017, either to announce a firm intention to make an offer in accordance with Rule 2.7 of the Code or to announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.
3:17 am On The Wires (:WIRES) :
Graa y Montero S.A.A. (GRAM) announced it signed an agreement with five banks to provide a $162.1 million credit line to GyM, the construction company of the Group, and an additional line of $100 million in order to develop future projects of the company.
R1 RCM Inc. (RCM) announced that Central Maine Healthcare, an integrated healthcare delivery system serving 400,000 people living in central, western, and mid-coast Maine, selected R1 for its Revenue Capture Solutions module.
CTI BioPharma Corp. (CTIC) announced that the first patient has been enrolled in PAC203, a Phase 2 clinical trial of pacritinib in patients with primary myelofibrosis who have failed prior ruxolitinib therapy. PAC203 is designed to evaluate the dose response relationship for safety and efficacy (spleen volume reduction at 12 and 24 weeks) of three dose regimens: 100 mg once-daily, 100 mg twice-daily (BID) and 200 mg BID. The 200 mg BID dose regimen was used in the Phase 3 PERSIST-2 trial of pacritinib in patients with myelofibrosis. The trial is expected to enroll up to approximately 105 patients.
Hiab, part of Cargotec (CYJBF), has entered into an agreement to acquire the loader crane business of one of Brazil's leading loader crane manufacturers Argos Guindastes Indstria e Comrcio Ltda. The acquisition is expected to take place during the third quarter 2017. The parties have agreed not to disclose the transaction value.
LivaNova PLC (LIVN) announced its latest VNS Therapy Systems received CE Mark for expanded MRI labeling. VNS Therapy is now the only implantable device indicated for epilepsy therapy that allows patients to have high-quality 1.5T and 3T MRI scans without the need for special equipment.
3:15 am General Motors closes sale of Opel/Vauxhall business to the Groupe PSA (PEUGF) (GM) : The sale of GM Financial's European operations to Groupe PSA and BNP Paribas (BNPQY) is expected to close later this year, subject to various regulatory approvals.
3:05 am Bank of Marin to acquire Bank of Napa (OTC: BNNP) for $51 mln in stock (BMRC) :
Bank of Napa has two branch offices serving Napa County, and had assets of $246.1 million, total deposits of $217.7 million, and total loans of $139.3 million as of June 30, 2017.
The transaction will be immediately accretive to BMRC's earnings, adding to shareholder value. BNNP shareholders will receive a fixed exchange ratio of 0.3070 shares of BMRC common stock for each share of BNNP common stock outstanding. Based on BMRC's closing stock price of $65.95 on July 28, 2017, the transaction is valued at $51.0 million, or $20.25 per share of BNNP common stock. Such value will fluctuate with changes in the stock price of BMRC. The total transaction value includes the value of BNNP options assumed by BMRC.
The transaction is expected to close in the fourth quarter of 2017, and upon closing the Bank will have approximately $2.4 billion in assets and operate twenty-two branches in five counties, including San Francisco, Marin, Sonoma, Napa and Alameda.
Importantly, the discrete items serve as tailwinds for 2018, enabling us to regain much of their impact next year and maintain the gross margin target we established for 2019."
8:08 am Ally Financial beats by $0.02 (ALLY) :
Reports Q2 (Jun) earnings of $0.55 per share, $0.02 better than the Capital IQ Consensus of $0.53.
Net interest margin (NIM) of 2.76%, up 8 bps YoY; Ex. OID, NIM of 2.80%, up 8 bps YoY and 16 bps QoQ;
Consolidated annualized net charge-offs of 66 bps;
Efficiency Ratio: 56%; Adj. Efficiency Ratio: 44%.
Return on Equity 7.5%; RoTCE 9.6%;
Consumer auto originations of $8.6 billion with estimated retail auto originated yield of 6.50%, up 68 bps YoY;
Retail auto net charge-off rate of 1.20%.
Provision for loan losses increased $97 million year-over-year and was impacted by a 7 bps increase in the retail auto coverage ratio in the quarter.
Noninterest expense increased $37 million from a year ago, driven by expenses related to the growth of consumer and commercial products.
Auto originations for the quarter totaled $8.6 billion, down from $9.4 billion a year ago, given continued focus on risk-adjusted returns.
8:08 am Charles River Associates beats by $0.07, beats on revs; raises FY17 revs guidance (CRAI) :
Reports Q2 (Jun) earnings of $0.48 per share, excluding non-recurring items, $0.07 better than the two analyst estimate of $0.41; revenues rose 13.3% year/year to $93.56 mln vs the $88.77 mln two analyst estimate.
Co raises guidance for FY17, sees FY17 revs of $360-370 mln (Prior $350-360 mln) vs. $354.42 mln two analyst estimate; co reaffirms non-GAAP Adjusted EBITDA margin in the range of 15.8% to 16.6%
8:07 am S&P futures vs fair value: +2.50. Nasdaq futures vs fair value: +31.10. (:WRAPX) :
Equities look poised to open Thursday's session in the green as the S&P 500 futures trade three points, or 0.1%, above fair value. The Nasdaq 100 futures are showing particular strength, up 0.5%, following Facebook's (FB) latest earnings report.
Today is the busiest day of the earnings season with around 60 S&P 500 components scheduled to report their quarterly results. So far the results have been in line with this season's trend, coming in largely better than expected.
Crude oil is down for the first time this week, dropping 0.9% to $48.28/bbl. Still, despite this morning's slide, the commodity is sporting a solid gain for the week, up 5.5% from last Friday's closing level.
The Treasury market has extended yesterday's rally this morning with the benchmark 10-yr Treasury note showing particular strength, leaving the 10-yr yield lower by four basis points at 2.30%.
On the data front, investors will receive three pieces of economic data today--June Durable Orders (Briefing.com consensus 2.9%), the weekly Initial Claims Report (Briefing.com consensus 240K), and June International Trade in Goods (Briefing.com consensus -$64.9 billion). All three reports will be released at 8:30 ET.
In U.S. corporate news:
Facebook (FB 173.80, +8.19): +5.0% after beating top and bottom line estimates.
Verizon (VZ 45.26, +0.86): +1.9% after reporting better than expected revenues.
Procter & Gamble (PG 90.26, +0.96): +1.1% after beating bottom-line estimates and providing upbeat guidance.
Merck (MRK 64.83, +3.03): +4.9% after announcing a global strategic oncology collaboration with Astrazeneca (AZN 28.75, -5.19).
Twitter (TWTR 18.00, -1.61): -8.2% after a stall in monthly active users (:MAU) overshadowed upbeat earnings and revenues.
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note, but trading ranges were fairly narrow. Japan's Nikkei +0.2%, Hong Kong's Hang Seng +0.7%, China's Shanghai Composite +0.1%, India's Sensex unch.
In economic data:
Hong Kong's trade deficit widened to HKD48.30 billion from HKD35.70 billion. June Imports +10.4% month-over-month (last 6.6%) and June Exports +11.1% month-over-month (last 4.0%).
Australia's Q2 Import Price Index -0.1% quarter-over-quarter (expected 0.7%; last 1.2%) and Export Price Index -5.7% quarter-over-quarter (expected -6.3%; last 9.4%)
South Korea's Q2 GDP +0.6% quarter-over-quarter, as expected (last 1.1%); +2.7% year-over-year, as expected (last 2.9%)
In news:
Samsung reported second quarter earnings, which were just ahead of the company's preliminary results.
Copper ($2.886/lb) has climbed to its best level since early 2015, advancing amid speculation that China could ban imports of some scrap metals, including copper, from the end of 2018.
The Japanese government has recommended a 3.0% minimum wage increase to JPY848/hour.
Japan's Prime Minister Shinzo Abe remains embroiled in a scandal that has dropped his approval rating to 26.0%, according to Mainichi.
Major European indices trade in mixed fashion. Germany's DAX -0.4%, UK's FTSE unch, France's CAC +0.2%.
In economic data:
Eurozone June M3 Money Supply +5.0% year-over-year, as expected (last 5.0%) and Private Sector Loans +2.6% year-over-year (consensus 2.7%; last 2.6%)
Germany's August GfK Consumer Climate 10.8 (expected 10.6; last 10.6)
UK's July CBI Distributive Trades Survey 22 (expected 10; last 12)
Spain's Q2 Unemployment Rate 17.22% (expected 17.80%; last 18.75%)
In news:
European Central Bank member Ewald Nowotny said that discussions about tightening policy have begun. Mr. Nowotny acknowledged this is the proper time to begin discussing a reduction of purchases since the quantitative easing program is set to end at the end of the year.
The Financial Conduct Authority announced that LIBOR will end in 2021 due to an insufficient number of transactions.
8:07 am TrovaGene: FDA has accepted its IND application for PCM-075, a Polo-like Kinase 1 inhibitor, and has provided authorization to proceed with the treatment of patients with AML (TROV) : Trovagene submitted its IND for a Phase 1b/2 clinical trial of PCM-075 in patients with AML to the FDA on June 27, 2017.
8:06 am Dr Pepper Snapple misses by $0.03, beats on revs; reaffirms FY17 EPS guidance, guides FY17 revs above consensus (DPS) :
Reports Q2 (Jun) earnings of $1.25 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus of $1.28; revenues rose 6.0% year/year to $1.8 bln vs the $1.77 bln Capital IQ Consensus.
For the quarter, sales volumes increased 4%, inclusive of the Bai acquisition. Reported net sales increased 6%, including the Bai acquisition, which accounted for just over 1 percentage point of net sales growth.
Reported gross profit margin decreased 50 basis points primarily on an unfavorable $19 million comparison of unrealized mark-to-market activity.
Co issues guidance for FY17, sees EPS of $4.56-4.66 vs. $4.65 Capital IQ Consensus Estimate; raises FY17 revs to +4.5% from +4% to ~$6.73 bln vs. $6.71 bln Capital IQ Consensus Estimate.
Guidance Details: Organic volume growth is still expected to be just over 1%; total volume growth is still expected to be approximately 2%, inclusive of the Bai acquisition, which closed on January 31, 2017. Net sales growth is now expected to be about 4.5%, including the Bai acquisition, which is still expected to add approximately 2 percentage points to growth. The impact of the Bai acquisition is now expected to be $0.07 dilutive to Core EPS.
8:06 am Intec Pharma promotes Nadav Navon, Ph.D., EVP- R&D and Ops, to COO, effective immediately (NTEC) :
8:06 am Interpace Diagnostics announces that Cigna (CI) has agreed to cover Interpace's ThyGenX test (IDXG) :
8:05 am MasterCard beats by $0.06, beats on revs (MA) :
Reports Q2 (Jun) earnings of $1.10 per share, $0.06 better than the Capital IQ Consensus of $1.04; revenues rose 13.3% year/year to $3.05 bln vs the $2.98 bln Capital IQ Consensus, or 14% on a currency-neutral basis, driven by the impact of the following factors: An increase in switched transactions of 17%, to 16.0 billion; A 9% increase in gross dollar volume, on a local currency basis and adjusting for the impact of recent EU regulatory changes, to $1.3 trillion; An increase in cross-border volumes of 14% on a local currency basis; and Acquisitions, primarily Vocalink, contributed 2 percentage points to this growth. These increases were partially offset by an increase in rebates and incentives, primarily due to new and renewed agreements and increased volumes.
Updates FY17 guidance on call at 9:00.
8:05 am Trimas beats by $0.04, beats on revs; reaffirms FY17 EPS, revs guidance (TRS) :
Reports Q2 (Jun) earnings of $0.40 per share, $0.04 better than the Capital IQ Consensus of $0.36; revenues rose 5.0% year/year to $213.39 mln vs the $205.22 mln Capital IQ Consensus.
Co reaffirms guidance for FY17, sees EPS of $1.35-1.45, excluding non-recurring items, vs. $1.40 Capital IQ Consensus Estimate; sees FY17 revs of $809-826 mln (+2-4%) vs. $806.75 mln Capital IQ Consensus Estimate.
8:05 am Charter Comm reports Q2 (Jun) results, revs in-line (CHTR) :
Reports Q2 (Jun) earnings of $0.52 per share, may not be comparable to the Capital IQ Consensus of $0.66; revenues rose 3.9% year/year to $10.36 bln vs the $10.38 bln Capital IQ Consensus.
The decline in year-over-year net income was driven by a pension curtailment gain in the second quarter of 2016 and an increase in depreciation and amortization in the second quarter of 2017, partly offset by a year-over-year increase in Adjusted EBITDA.
Second quarter total customer relationships increased 211,000, compared to 231,000 on a pro forma basis during the secondquarter of 2016, when excluding the impact of customer disconnect activity related to Legacy Bright House's seasonal customer plan in 2016.2
Second quarter total residential and SMB primary service units increased by 243,000, while pro forma secondquarter 2016 PSUs grew by 422,000, when adjusted for seasonal customer program changes at Legacy Bright House.
"With the rollout of our new pricing and packaging completed in June, we are now offering a simple, high value product across our 50 million passings, under one brand, Spectrum. That product is working in the marketplace, and we continue to see higher year-over-year customer connect volumes across our new footprint," said Tom Rutledge, Chairman and CEO of Charter Communications, Inc. "As we move forward with our integration, more of our customers are getting better products at better prices, which will drive higher customer satisfaction, lower churn and greater value into our business."
8:03 am Eiger BioPharmaceuticals announces that the FDA has granted Fast Track designation for pegylated interferon lambda 1a (Lambda) as a potential treatment for chronic hepatitis delta virus (HDV) infection (EIGR) :
Pegylated interferon lambda 1a (Lambda) is a well-characterized, late-stage, first in class, type III interferon (IFN) that stimulates immune responses that are critical for the development of host protection during viral infections.
8:02 am Aradigm submits its NDA to the FDA for Linhaliq for the treatment of non-cystic fibrosis bronchiectasis patients with chronic lung infections with Pseudomonas aeruginosa (ARDM) :
8:02 am Lilis Energy announces that the Hippo #1H reached a 30-day initial production rate of 1,506 Boepd on a three-stream basis, at 367 Boepd per 1,000 ft., or 1,406 Boepd on a two-stream basis (LLEX) :
The well currently is producing at 63% oil; 76% liquids on a three-stream basis. Lilis has drilled and completed its first three operated horizontal Wolfcamp B wells, the Bison #1H, the Grizzly #1H and the Hippo #1H, with IP rates exceeding internal projections.
Lion #1H
Currently on well test from a 4,025 ft. treated lateral. The well started flowing hydrocarbons mid-July 2017. The completion for this well was 27 stages, 150 ft. plug to plug spacing and 2,200 lbs./ft. of sand loading.
Wildhog BWX State Com #1H
Well was drilled to 17,244 ft. measured depth (MD). The stimulation started this week and is planned for 23 stages, 4,567 ft. treated lateral, 200 ft. spacing and 2,200 lbs./ft. of sand loading.
Prizehog BWZ State Com #1H
Current operations are preparing to run intermediate casing at 12,782 ft. MD. Well is planned for a total depth of 17,314 ft. MD.
8:02 am Naked Brand to acquire full ownership of FOH Online Corp. ('FOH'), the exclusive licensee of the Frederick's of Hollywood global online license (NAKD) : FOH sales for the trailing twelve months ended June 30, 2017, were approximately $18 million of direct to consumer e-commerce sales. The business combination is anticipated to be completed in the fourth quarter of
2017.
8:02 am Travelzoo beats by $0.01, misses on revs (TZOO) :
Reports Q2 (Jun) earnings of $0.05 per share, $0.01 better than the two analyst estimate of $0.04; revenues fell 11.4% year/year to $26.4 mln vs the $27.53 mln two analyst estimate.
As of June 30, 2017, Travelzoo had a worldwide unduplicated number of members of 29.3 million.
In Asia Pacific, unduplicated number of members was 3.6 million as of June 30, 2017, consistent with June 30, 2016.
In Europe, unduplicated number of members was 8.4 million as of June 30, 2017, up 3% from June 30, 2016.
In North America, unduplicated number of members was 17.4 million as of June 30, 2017, consistent with June 30, 2016.
"We never compromise the quality of the offers which we provide to our members-even if it resulted in less deals being promoted during the second quarter of 2017 and a corresponding decrease in revenue of certain products," said Dr. Holger Bartel, Global CEO of Travelzoo. "Our top priority is to provide Travelzoo members outstanding, exclusive travel and entertainment experiences. We remain ambitious to grow Travelzoo's global brand and business."
8:01 am CTS Corp misses by $0.01, beats on revs; reaffirms FY17 EPS guidance, revs guidance (CTS) :
Reports Q2 (Jun) earnings of $0.28 per share, excluding non-recurring items, $0.01 worse than the two analyst estimate of $0.29; revenues rose 7.1% year/year to $105.7 mln vs the $103.31 mln two analyst estimate. Total Booked Business was $1.542 billion at the end of the second quarter of 2017.
Co reaffirms guidance for FY17, sees EPS of $1.12-1.22, excluding non-recurring items, vs. $1.15 Capital IQ Consensus Estimate; sees FY17 revs of $405-420 mln vs. $413.58 mln Capital IQ Consensus Estimate.
8:01 am iCAD will present clinical data supporting use of the Xoft Axxent Electronic Brachytherapy System for the treatment of endometrial cancer at the American Association of Physicists in Medicine Annual Meeting (ICAD) : "By precisely targeting cancer cells and sparing surrounding healthy tissue and organs, the Xoft System can successfully treat endometrial cancer while reducing the risk of exposure to surrounding tissue," said Sergio Lozares, MD, Medical Physicist at Miguel Servet University Hospital. "We are encouraged by these early results demonstrating that the Xoft System can be a clinically valuable treatment option for appropriate patients."
7:53 am Materion beats by $0.03, beats on revs; reaffirms FY17 EPS in-line (MTRN) :
Reports Q2 (Jun) earnings of $0.42 per share, $0.03 better than the Capital IQ Consensus of $0.39; revenues rose 18.4% year/year to $295.8 mln vs the $254.28 mln two analyst estimate.
The co resumed shipments in the second quarter of raw material beryllium hydroxide to a longstanding customer under a new long-term supply agreement
Co reaffirms guidance for FY17, sees EPS of $1.45-1.60 vs. $1.52 Capital IQ Consensus Estimate
"We significantly improved our operating performance both year-over-year and sequentially in the second quarter of 2017 for the following reasons: new product sales growth, favorable product mix, end market demand growth, raw material beryllium hydroxide shipments, an improved cost structure, and the HTB acquisition. We forecast these trends in the second quarter will continue for the balance of the year. As a result of these factors and review of our current order activity, we are affirming our full-year 2017 guidance of $1.45 to $1.60 per share."
7:50 am Meridian Bioscience misses by $0.01, beats on revs; reaffirms FY17 EPS guidance, revs guidance (VIVO) :
Reports Q3 (Jun) earnings of $0.16 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.17; revenues fell 1.0% year/year to $50.14 mln vs the $49.13 mln Capital IQ Consensus.
Co reaffirms guidance for FY17, sees EPS of $0.64-0.69, excluding non-recurring items, vs. $0.68 Capital IQ Consensus Estimate; sees FY17 revs of $193-199 mln vs. $197.6 mln Capital IQ Consensus Estimate.
"Our overall business continued to stabilize, with [JunQ] revenue declining 1% (flat on a constant currency basis), reflecting continued strong performance from both of our Life Science units, largely offset by modest declines in our Diagnostics segment. Our Life Science segment revenues grew 8% (10% in constant currency), while the Diagnostics segment declined 4% (also 4% in constant currency)."
7:50 am Procter & Gamble: Nelson Pelt'z Trian Fund Mgmt (owns $3.3 bln in PG) reiterates desire for Board seat and restructuring following Q4 results (PG) :
"Over the past 10 years, P&G's total return to shareholders is less than half that of its peers and it has been in the bottom quartile over most recent time frames.1 Trian believes P&G needs to address the root causes of this consistent underperformance, including deteriorating market share across most of its categories and excessive cost and bureaucracy. While P&G says it is addressing the underperformance issue, shareholders have heard similar promises in the past and results have not materially improved. Trian believes P&G can once again be a best-in-class performer but it must take decisive action that goes above and beyond what it has previously announced, including committing to significantly changing its overly complex organizational structure and slow moving and insular culture."
"Nelson Peltz has been involved with numerous successful turnarounds of consumer brands and businesses, and adding him to the P&G Board will help P&G become best-in-class. He will seek to ensure increased management accountability, a greater sense of urgency, sharper cost discipline, and a less insular corporate culture. As a motivated independent director, he will have a laser focus on long-term shareholder value creation that can accelerate positive change at P&G. Indeed, consumer companies where he has served on the board have produced materially higher earnings per share growth and greater total shareholder returns compared to the S&P 500."
7:49 am Safety, Income and Growth beats by $0.03 (SAFE) :
Reports Q2 (Jun) earnings of $0.14 per share, excluding non-recurring items, $0.03 better than the single analyst estimate of $0.11.
Acquired two ground leases totaling $142MM in prime Los Angeles location with stabilized Ground Rent Coverage(1)exceeding 5.0x.
Total potential investment capacity of over $600MM (based on target leverage of 2:1).
Fundamental belief that ground leases can provide more efficient capital structure for owners and developers and the use of ground leases can be significantly expanded.
SAFE focused on generating two components of value:
1.Strong investment grade quality cash flow stream with inflation protection.
Ultimate ownership of diversified portfolio of valuable real estate that can be valued today and should grow in value over time.
7:48 am UPS beats by $0.11, beats on revs; reaffirms FY17 EPS guidance (UPS) :
Reports Q2 (Jun) earnings of $1.58 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus of $1.47; revenues rose 7.7% year/year to $15.75 bln vs the $15.49 bln Capital IQ Consensus.
Operating profit was up 8.7% to $2.2 billion driven by strong performance in the U.S. Domestic and Supply Chain and Freight segments.
Co reaffirms guidance for FY17, sees EPS of $5.86-6.10, excluding non-recurring items, vs. $5.96 Capital IQ Consensus Estimate.
7:47 am Marcus misses by $0.01, misses on revs (MCS) :
Reports Q2 (Jun) earnings of $0.36 per share, $0.01 worse than the Capital IQ Consensus of $0.37; revenues rose 13.2% year/year to $152.8 mln vs the $158.43 mln Capital IQ Consensus.
Co said, "Marcus Theatres reported record revenues and operating income in the second quarter and continued to outperform the industry, despite a weaker overall film slate. Results for Marcus Theatres were also impacted by pre-opening expenses related to two new theatres that opened during the quarter. Marcus Hotels & Resorts once again outperformed the competitive set in its markets, despite challenges posed by the April Easter holiday, which resulted in reduced group bookings during that period."
Marcus Theatres:
Marcus Theatres reported a 22.7% increase in revenues and a 14.9% increase in operating income during the second quarter over the prior year period. Marcus Theatres outperformed the change in national box office revenues by nearly one percentage point on a comparable theatre basis compared to the same corresponding weeks in the prior year, according to Rentrak
Marcus Hotels & Resorts:
Marcus Hotels & Resorts' revenue per available room (RevPAR) for comparable company-owned properties decreased 1.5% in the second quarter; however, the division still outperformed the competitive set in its markets by nearly three percentage points during the second quarter and by nearly five percentage points during the first half of the year. RevPAR for the first half of the year was up 1.0%
7:46 am Glencore Intl plc agrees to acquire 49% interest in Hunter Valley Operations (GLNCY) :
Co has signed agreements with Yancoal Australia Limited regarding the acquisition of a 49% interest in the Hunter Valley Operations (:HVO) coal mine in NSW and form a Joint Venture following Yancoal's acquisition of Coal & Allied from Rio Tinto.
Glencore will pay cash consideration of $1,139 bln plus a 27.9% share of $240m non-contingent royalties over five years and 49% of price contingent royalties payable by Yancoal to Rio Tinto on production from HVO in respect of the C&A acquisition.
7:45 am Co-Diagnostics has completed principle design and verification of its Zika test built on the Company's CoPrimer technology (CODX) :
7:45 am Brunswick beats by $0.02, beats on revs; guides FY17 EPS in-line, revs in-line (BC) :
Reports Q2 (Jun) earnings of $1.35 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $1.33; revenues rose 8.8% year/year to $1.35 bln vs the $1.32 bln Capital IQ Consensus.
Co issues in-line guidance for FY17, sees EPS of $4.00-4.10, excluding non-recurring items, vs. $4.06 Capital IQ Consensus Estimate and vs prior guidance of $3.95-4.10; sees FY17 revenue growth of +7-8% which we compute as $4.80-4.85 bln vs. $4.81 bln Capital IQ Consensus Estimate. For the full-year, co anticipates a slight improvement in operating margins.
Marine market data indicates a healthy U.S. marketplace, which is consistent with co's assumptions entering the year. Overall demand in non-U.S. marine markets was also strong, led by gains in Europe and Canada as well as improving conditions in other regions. Co says its Fitness business continues to successfully execute against its integration and transformation plans, which in 2017 include new product introductions, changes to the manufacturing footprint and further cost realignment actions.
Looking ahead, co expects its marine businesses' top-line performance will benefit from the continuation of solid growth in the US and international markets and the success of new products. The Fitness segment is expected to benefit from overall growth in global commercial Fitness markets, as well as contributions from new products, particularly in 2H17.
7:40 am State Bank Financial Q2 EPS $0.39 vs $0.35 Capital IQ Consensus Estimate (STBZ) :
7:38 am Hess Midstream Partners reports Q2 results (HESM) :
Co reports Q2 $0.21 vs $0.23 Capital IQ Consensus Estimate; revs +16% YoY to $138.3 mln vs $132.67 mln Capital IQ Consensus Estimate
Adjusted EBITDA1 was $97.1 million, of which $18.6 million was attributable to Hess Midstream Partners LP.
7:38 am NetScout Systems reports EPS in-line, revs in-line; co's outlook for fiscal year 2018 revenue is unchanged, raises net income guidance (NTCT) :
Reports Q1 (Jun) earnings of $0.08 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.08; revenues fell 16.1% year/year to $225.8 mln vs the $225.66 mln Capital IQ Consensus
The Company's fiscal year 2018 GAAP revenue is still expected to grow over fiscal year 2017, on a percentage basis, in the low single-digit range.
The Company also continues to expect that fiscal year 2018 non-GAAP revenue will be relatively flat compared with fiscal year 2017 with ~60% of fiscal year 2018 non-GAAP revenue expected in the second half of the year
Co raises net income guidance...
Non-GAAP net income per share (diluted) growth for fiscal year 2018 over fiscal year 2017 is now expected to be, on a percentage basis, in the high single-digit to low double-digit range
This compares with original non-GAAP net income per share (diluted) guidance that ranged from mid-single to high-single digit growth
7:38 am Meredith beats by $0.11, beats on revs; guides Q1 EPS in-line; guides FY18 EPS in-line (MDP) :
Reports Q4 (Jun) earnings of $1.07 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus of $0.96; revenues rose 2.2% year/year to $445.4 mln vs the $439.61 mln Capital IQ Consensus.
Co issues in-line guidance for Q1, sees EPS of $0.60-$0.65 vs. $0.63 Capital IQ Consensus Estimate; total company revenues to be flat to up slightly
Meredith will be cycling against $16 million (or $0.22 per share) in political advertising revenues recorded in the prior-year period.
Co issues in-line guidance for FY18, sees EPS of $3.20-$3.50 vs. $3.42 Capital IQ Consensus Estimate.
Meredith will be cycling against $16 million (or $0.22 per share) in political advertising revenues recorded in the prior-year period.
7:37 am Zimmer Biomet misses by $0.02, reports revs in-line; guides Q3 EPS, revs below consensus; lowers FY17 EPS, revs guidance (ZBH) :
Reports Q2 (Jun) earnings of $2.08 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus of $2.10; revenues rose 1.1% year/year to $1.95 bln vs the $1.95 bln Capital IQ Consensus.
Co issues downside guidance for Q3, sees EPS of $1.72-1.77, excluding non-recurring items, vs. $1.95 Capital IQ Consensus Estimate; sees Q3 revs of $1.815-1.845 bln, excluding non-recurring items, vs. $1.85 bln Capital IQ Consensus Estimate.
Co lowers guidance for FY17, sees EPS of $8.20-8.30 (Prior $8.50-8.60), excluding non-recurring items, vs. $8.51 Capital IQ Consensus Estimate; sees FY17 revs of $7.8-7.87 bln (Prior $7.835-7.915 bln) vs. $7.86 bln Capital IQ Consensus Estimate.
7:36 am Revolution Lighting misses by $0.01, reports revs in-line; guides Q3 revs below consensus; reaffirms FY17 guidance (RVLT) :
Reports Q2 (Jun) earnings of $0.03 per share, excluding non-recurring items, $0.01 worse than the two analyst estimate of $0.04; revenues rose 0.7% year/year to $43.4 mln vs the $43.53 mln Capital IQ Consensus. The increase in revenue reflects an overall increase in unit sales, as the demand for LED lighting continues to rise. Revenue growth was impacted by lower prices in certain retrofit and related-LED products in 2017 when compared to same period for 2016. Gross profit was $14.2 million and $13.3 million for the second quarters of 2017 and 2016, respectively. Gross profit margin was approximately 33% in 2017 compared to 31% in 2016. The improvement results from operating efficiencies and an improved product mix.
Co issues downside guidance for Q3, sees Q3 revs of $52-55 mln vs. $55.22 mln Capital IQ Consensus Estimate.
Co reaffirms guidance for FY17, sees EPS of $0.40-0.45, excluding non-recurring items, vs. $0.44 two analyst estimate; sees FY17 revs of $195-205 mln vs. $201.98 mln Capital IQ Consensus Estimate.
7:36 am McKesson reports Q1 (Jun) results, revs in-line; raises FY18 EPS above consensus (MCK) :
Reports Q1 (Jun) earnings of $2.47 per share, may not be comparable to the Capital IQ Consensus of $2.83; revenues rose 2.7% year/year to $51.05 bln vs the $51.22 bln Capital IQ Consensus.
North America pharmaceutical distribution and services revenues of $43.0 billion for the quarter were up 4% on a reported basis and 5% on a constant currency basis, primarily reflecting market growth and acquisitions.
International pharmaceutical distribution and services revenues were $6.4 billion for the quarter, up 1% on a reported basis and 6% on a constant currency basis, driven by acquisitions and market growth.
Medical-Surgical distribution and services revenues were up 4% for the quarter, driven by market growth.
Technology Solutions revenues were down 83% on both a reported and constant currency basis in the first quarter, following the contribution of the majority of our Technology Solutions businesses to the Change Healthcare joint venture on March 1, 2017, and reflecting our remaining Enterprise Information Solutions business.
Co issues upside guidance for FY18, sees EPS of $11.80-12.50 (prior: $11.75-12.45), excluding non-recurring items, vs. $12.11 Capital IQ Consensus Estimate.
"McKesson's first-quarter operating results were consistent with our expectations," said John H. Hammergren, chairman and chief executive officer. "We're off to a solid start to the year and are raising our previous Fiscal 2018 Adjusted Earningsoutlook to a range of $11.80 to $12.50 per diluted share. In addition, we generated strong first-quarter cash flows, which allowed us to allocate capital in line with our portfolio approach to capital deployment."
Segment Results
7:35 am FTI Consulting misses by $0.12, misses on revs; reaffirms FY17 EPS guidance, revs guidance (FCN) :
Reports Q2 (Jun) earnings of $0.40 per share, excluding non-recurring items, $0.12 worse than the Capital IQ Consensus of $0.52; revenues fell 2.7% year/year to $447.7 mln vs the $455.55 mln Capital IQ Consensus.
Co reaffirms guidance for FY17, sees EPS of $1.90-2.20, excluding non-recurring items, vs. $1.92 Capital IQ Consensus Estimate; sees FY17 revs of $1.78-1.88 bln vs. $1.81 bln Capital IQ Consensus Estimate.
"We had a slow start to 2017. Despite this, we continue to expect a stronger second half of the year. This expectation is supported by the strong sequential improvement compared to the first quarter and significant new wins in our Corporate Finance & Restructuring segment; continued investment where we have confidence we can grow; and the disciplined actions we have taken to align costs with demand and reduce overhead."
7:35 am EMCOR Group beats by $0.12, beats on revs; raises FY17 guidance (EME) :
Reports Q2 (Jun) earnings of $0.95 per share, $0.12 better than the Capital IQ Consensus of $0.83; revenues fell 1.9% year/year to $1.9 bln vs the $1.87 bln Capital IQ Consensus.
Co raises guidance for FY17, sees EPS of $3.40-3.60 vs. $3.45 Capital IQ Consensus Estimate, up from prior guidance of $3.20-3.50; sees FY17 revs of $7.6 bln vs. $7.64 bln Capital IQ Consensus Estimate, representing the high end of prior $7.5-7.6 bln range.
Backlog as of June 30, 2017 was $4.10 billion, an increase of 7.6% from $3.81 billion at the end of the second quarter of 2016. Total domestic backlog grew $265.1 million year-over-year and backlog in the U.K. segment increased $25.0 million.
7:34 am Carpenter Tech beats by $0.08, beats on revs (CRS) :
Reports Q4 (Jun) earnings of $0.58 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.50; revenues rose 10.9% year/year to $507.7 mln vs the $502.4 mln Capital IQ Consensus.
"While conditions continue to strengthen in many of our end-use markets, we are gaining momentum as a complete solutions provider for our diverse customer base. In the Aerospace and Defense end-use market, we continue to see increasing demand for our products across our diversified sub-markets, especially engines, where we are seeing continued healthy order flows related to the next generation engines."
"We are experiencing similar momentum across other markets, such as the oil & gas sub-market, where our Amega West business continues to benefit from our investments in new products over the last several years. In addition, we see stronger demand in both the Aerospace and Medical end-use markets for our titanium solutions."
7:34 am Celgene beats by $0.04, beats on revs; raises FY17 EPS in-line, reaffirms rev (CELG) :
Reports Q2 (Jun) earnings of $1.82 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $1.78; revenues rose 18.7% year/year to $3.27 bln vs the $3.23 bln Capital IQ Consensus.
REVLIMID sales for the second quarter increased 20 percent to $2,034 million. Sales growth was driven primarily by increased volume as a result of increases in duration of treatment and market share gains. U.S. sales of $1,358 million and international sales of $676 million increased 26 percent and 9 percent year-over-year, respectively. REVLIMID sales for the second quarter of 2016 were favorably impacted by a Russian tender.
POMALYST/IMNOVID sales for the second quarter were $391 million, an increase of 23 percent year-over-year. U.S. sales were $241 million and international sales were $150 million, an increase of 30 percent and 13 percent year-over-year, respectively. POMALYST/IMNOVID sales grew due to increased volume driven by duration gains.
OTEZLA sales for the second quarter were $358 million, a 49 percent increase year-over-year. Second quarter U.S. sales of $306 million and international sales of $52 million increased 41 percent and 117 percent, respectively. Sales were driven by increased prescriber adoption and market share gains in the U.S. with increasing contribution from early launch markets in Europe and Japan.
ABRAXANE sales for the second quarter were $254 million, a 2 percent increase year-over-year.
Co issues in-line guidance for FY17, raises EPS to $7.25-7.35 from $7.15-7.30, excluding non-recurring items, vs. $7.29 Capital IQ Consensus; reaffirms FY17 revs of $13.0-13.4 bln vs. $13.19 bln Capital IQ Consensus.
7:33 am Cameco misses by CC$0.08, beats on revs (CCJ) :
Reports Q2 (Jun) loss of CC$0.11 per share, excluding non-recurring items, CC$0.08 worse than the Capital IQ Consensus of (CC$0.03); revenues rose 0.9% year/year to CC$470 mln vs the CC$383.81 mln Capital IQ Consensus.
2017 Outlook
2017 outlook for NUKEM sales volume has increased, resulting in higher expected consolidated revenue, and the change in the Saskatchewan corporate tax rate impacted deferred tax asset, resulting in a change in consolidated tax outlook from a recovery, to an expense.
Outlook for capital expenditures has decreased due to lower expected spending at McArthur River and Cigar Lake.
Although we've modified these specific aspects of our 2017 financial outlook, overall, our annual outlook, as presented in our 2016 annual MD&A and 2017 first quarter MD&A, continues to point to weaker adjusted net earnings results than in 2016. However, cash from operations is expected to be higher than the $312 million reported in 2016.
7:32 am Gibraltar Industries beats by $0.03, misses on revs; guides Q3 EPS in-line, revs in-line; reaffirms FY17 EPS, revs guidance (ROCK) :
Reports Q2 (Jun) earnings of $0.43 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.40; revenues fell 6.8% year/year to $247.63 mln vs the $251.97 mln Capital IQ Consensus.
Co issues in-line guidance for Q3, sees EPS of $0.58-0.65, excluding non-recurring items, vs. $0.61 Capital IQ Consensus Estimate; sees Q3 revs of $275-280 mln vs. $276.43 mln Capital IQ Consensus Estimate.
Co reaffirms guidance for FY17, sees EPS of $1.57-1.70, excluding non-recurring items, vs. $1.63 Capital IQ Consensus Estimate; sees FY17 revs of $970-980 mln vs. $974.57 mln Capital IQ Consensus Estimate.
"Looking toward the second half of 2017, we continue to expect generally favorable market conditions for each of our segments, increased bidding activity and continued backlog growth in both our Industrial & Infrastructure and Renewable Energy & Conservation segments, as well as increased revenues from our new product development initiatives," said Heard. "As we head into our seasonally strongest quarter, we are maintaining our full year guidance.
7:32 am Cytokinetics initiates FORTITUDE-ALS Trial of Investigational Treatment with CK-2127107 to Understand Decline in Endpoints - in ALS (CYTK) : The Phase 2 clinical trial, now open to enrollment, is designed to assess the change from baseline in the percent predicted slow vital capacity (:SVC) and other measures of skeletal muscle function after 12 weeks of treatment with CK-2127107.
7:31 am VBI Vaccines announced positive results from a planned, interim data read-out from a Phase 1 study of its preventative cytomegalovirus (:CMV) vaccine (VBIV) :
This interim data read-out analyzed safety data through day 84 of the study and initial immunogenicity signals in participant samples collected one month after the second of three planned vaccine doses:
Immunization with the highest dose of the vaccine induced seroconversion in 100% of subjects after just two vaccinations.
After two of the three planned vaccinations, neutralizing antibodies against epithelial cell infection were demonstrated in 17% of subjects who received the highest dose of VBI-1501A.
The highest dose of VBI-1501A (2.0mcg of gB-G content with alum) has !10-fold less antigen content than that used in several other VLP-based vaccines or in past CMV vaccine candidates.
7:31 am SunOpta to sell equipment used in the production of flexible, re-sealable pouches from its Allentown, PA facility to Skjodt-Barrett for $2.0 million (STKL) : The asset sale is in conjunction with the Company's decision to discontinue flexible, re-sealable pouch products as part of its ongoing portfolio optimization strategy and Value Creation Plan. Flexible re-sealable pouch products accounted for $46 million of revenues in fiscal 2016, and $10 million of revenues in the first quarter of 2017, and were part of the healthy snacks platform within the consumer products segment. SunOpta will continue to produce aseptic beverages from its Allentown, PA facility, which were not part of the sale. The sale of equipment is expected to close during the fourth quarter of 2017.
7:31 am Alliance Data has approved a $500 million increase in the Company's previously announced stock repurchase program for 2017, resulting in an aggregate authorization of up to $1 billion (ADS) : Repurchases will be financed primarily through free cash flow. The Company expects to maintain moderate levels of debt over the course of the repurchase program, providing flexibility to pursue tuck-in acquisitions or portfolio purchases.
7:26 am Altria expands repurchase program by $1 bln (MO) : During the second quarter, Altria repurchased 14.4 million shares under its existing share repurchase program at an average price of $72.85, for a total cost of approximately $1.05 billion. As of June 30, 2017, Altria had approximately $335 million remaining in the share repurchase program. In July, Altria's Board authorized a $1 billion expansion to the program. Altria expects to complete the expanded $4 billion share repurchase program by the end of the second quarter of 2018.
7:25 am Soligenix has opened patient enrollment for its Phase 3 placebo-controlled study evaluating SGX942 (dusquetide) as a treatment for severe oral mucositis in patients with head and neck cancer receiving chemoradiation therapy (SNGX) : The study design incorporates feedback from the US Food and Drug Administration (:FDA) as well as from the European Medicines Agency (:EMA) via the Scientific Advice process. The Scientific Advice from the EMA indicates that a single, double-blind, placebo-controlled, multinational, Phase 3 pivotal study, if successful, in conjunction with results from the Phase 2 dose-ranging study, generally will be considered sufficient to support a marketing authorization application for potential licensure in Europe.
7:23 am ConnectOne Bancorp reports Q2 results (CNOB) :
Co reports Q2 adjusted EPS of $0.42 vs $0.38 Capital IQ Consensus
The provision for loan losses increased to $1.5 million in the second quarter of 2017 from $1.1 million in the first quarter of 2017, and decreased from $3.8 million in the second quarter of 2016.
7:22 am Adient beats by $0.02, misses on revs; guides FY17 revs in-line (ADNT) :
Reports Q3 (Jun) earnings of $2.52 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $2.50; revenues fell 7.9% year/year to $4.02 bln vs the $4.12 bln Capital IQ Consensus.
Co issues in-line guidance for FY17, sees FY17 revs of $16.15-16.25 bln vs. $16.2 bln Capital IQ Consensus Estimate.
7:21 am Group 1 Auto misses by $0.13, misses on revs (GPI) :
Reports Q2 (Jun) earnings of $1.87 per share, excluding $0.03 in non-recurring items, $0.13 worse than the Capital IQ Consensus of $2.00; revenues fell 4.0% year/year to $2.67 bln vs the $2.7 bln Capital IQ Consensus.
Co said, "While we had a strong quarter in Brazil, solid growth in aftersales revenue, and a new record in U.S. F&I performance, these factors were not enough to offset ongoing weakness in vehicle sales in our energy-price-impacted markets. Combined new and used sales dropped seven percent in the quarter for our Texas and Oklahoma stores. Our single largest market of Houston was extremely volatile in the second quarter with Houston total industry auto sales dropping 24% in June after an increase in May. Group 1's Houston sales only decreased 12% in June, but this is indicative of the headwinds we continue to face in much of Texas and Oklahoma. As for our overseas businesses, the U.K. market did experience some deceleration as a result of the increased road tax enacted in April, with the overall market declining about 10% in Q2. However, we were able to significantly outperform the market with our new vehicle unit sales only contracting 1.4% and overall same store revenue on a constant currency basis growing 2.5%. In addition, Brazil delivered another quarter of profitability, with gross profit up 18% on a constant currency basis, reflecting double-digit growth in used, aftersales, and F&I. The team has us well positioned for further improvements as the Brazilian economy begins to rebound."
7:19 am Sirius XM Radio beats by $0.003, beats on revs; FY17 guidance increased (SIRI) :
Reports Q2 (Jun) earnings of $0.043 per share, $0.003 better than the Capital IQ Consensus of $0.04; revenues rose 9.1% year/year to $1.35 bln vs the $1.32 bln Capital IQ Consensus.
The company added 466,000 net new self-pay subscribers in the second quarter 2017 to end with nearly 26.7 million self-pay subscribers. Total net additions in the quarter were 445,000, after giving effect to the decline of approximately 20,000 paid promotional subscribers. The company ended the quarter with approximately 32.0 million total subscribers.
Adjusted EBITDA in the second quarter of 2017 reached a record $522 million, up 12% from $468 million in the second quarter of 2016. Adjusted EBITDA margin was 38.7% in the second quarter of 2017, a 90 basis point increase from 37.8% in the second quarter 2016.
Co raises guidance for FY17, sees FY17 revs of $5.375 bln (Prior $5.3 bln) vs. $5.34 bln Capital IQ Consensus Estimate; Sees self-pay net subscriber additions of approximately 1.4 million (Prior ~1.3 mln); sees Adj-EBITDA of ~$2.05 bln (Prior ~$2.025 bln)
7:18 am DSP Group beats by $0.04, beats on revs; guides Q3 revs in-line (DSPG) :
Reports Q2 (Jun) earnings of $0.06 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $0.02; revenues fell 13.4% year/year to $31.3 mln vs the $30.93 mln Capital IQ Consensus.
Co issues in-line guidance for Q3, co sees sequential revenue growth in Q3, so revenue should be "above $31.3 mln" vs. $34.36 mln Capital IQ Consensus Estimate.
Co is pleased with its Q2 results that reflect an improved product mix driven by new product revenues. Such revenues accounted for 47% of total sales, thereby propelling non-GAAP gross margin to a ten year high of 46.6%.
Co says it's delighted by the solid market traction for its new products and their contribution to revenue and profit, with Office/VoIP and IoT posting record revenues of $8.6 million and $2.3 million, respectively.
Looking ahead to Q3, co expects a sequential increase in revenues, propelled by an increase in shipments of its SmartVoice products for voice user interface in non-smartphone applications and demand for Office/VoIP products. More importantly, DSP Group is uniquely positioned to become a leader in the burgeoning market of voice user interface by leveraging its proven leadership and expertise in voice processing and low power design. Co says it's making solid progress in augmenting its diverse engagement pipeline with leading OEMs. This pipeline is materializing, evidenced by commercial shipments to two new customers, and paving a promising path for long term growth.
7:17 am Keryx Biopharma misses by $0.60, beats on revs; raises US Auryxia sales guidance (KERX) :
Reports Q2 (Jun) loss of $0.77 per share, $0.60 worse than the Capital IQ Consensus of ($0.17); revenues rose 62.4% year/year to $15.1 mln vs the $14.51 mln Capital IQ Consensus. Total revenues for the second quarter of 2017 include $14.1 million in net U.S. Auryxia product sales, compared to $8.3 million in the second quarter of 2016.
Keryx today increased its financial guidance for full year 2017 net U.S. Auryxia product sales to $62 to $66 million from $56 to $60 million, as provided on May 4, 2017. The guidance is based on the company's current understanding of Auryxia prescriptions trends in dialysis and other financial factors. Guidance excludes any sales from the potential approval in November 2017 of the second indication for ferric citrate in the U.S.
7:17 am Altria misses by $0.01, misses on revs; Reaffirms 2017 EPS Growth (MO) :
Reports Q2 (Jun) earnings of $0.85 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.86; revenues rose 3.2% year/year to $4.37 bln vs the $5.02 bln Capital IQ Consensus.
"Our business fundamentals remain strong. We believe we are well-positioned for the second half of the year and continue to expect adjusted diluted EPS growth to be weighted to the second half. Thus, we are reaffirming our 2017 full-year adjusted diluted EPS growth guidance of 7.5% to 9.5%."
7:16 am Penn Natl Gaming misses by $0.07, reports revs in-line; guides Q3 EPS below consensus, revs in-line; guides FY17 EPS below consensus, revs in-line (PENN) :
Reports Q2 (Jun) earnings of $0.18 per share, $0.07 worse than the Capital IQ Consensus of $0.25 and company guidance of $0.22; revenues rose 3.5% year/year to $796.5 mln vs the $788.65 mln Capital IQ Consensus and company guidance of $776.8 mln.
Timothy J. Wilmott, Chief Executive Officer, commented, "Positive customer visitation and spend per visit trends across the majority of our portfolio, along with the continued improvement of our industry-leading tax-adjusted margins, led to a strong second quarter with revenue and Adjusted EBITDA exceeding guidance. In addition, the second quarter marked the highest percentage of total Adjusted EBITDA derived from assets and operations not subject to the Master Lease since the separation of the Company's operating assets and real estate assets in 2013. Reflecting the improved operating environment in our markets and strong third quarter trends to date, we are raising our full year 2017 guidance for revenue, Adjusted EBITDA and Adjusted EBITDA after Master Lease Payments.
Co issues guidance for Q3, sees EPS of $0.20 vs. $0.24 Capital IQ Consensus Estimate; sees Q3 revs of $790.9 vs. $789.46 mln Capital IQ Consensus Estimate.
Co issues guidance for FY17, sees EPS of $0.59 vs. $0.76 Capital IQ Consensus Estimate and prior guidance of $0.60; sees FY17 revs of $3.12 bln vs. $3.12 bln Capital IQ Consensus and prior guidance of $3.066 bln Estimate.
7:16 am LKQ beats by $0.01, beats on revs; raises FY17 EPS above consensus (LKQ) :
Reports Q2 (Jun) earnings of $0.53 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.52; revenues rose 6.7% year/year to $2.46 bln vs the $2.41 bln Capital IQ Consensus.
Organic revenue growth for parts and services of 3.8%; 4.9% on a same day basis
Income from continuing operations growth of 9.5% to $151 million
Co issues upside guidance for FY17, sees EPS of $1.84-1.92 (prior: $1.82-1.92) vs. $1.87 Capital IQ Consensus Estimate.
FY17 Organic revenue growth for parts & services of 4.00-5.25% (prior: 4.00-6.00%)
"We had solid operating results during the quarter," stated Dominick Zarcone, President and Chief Executive Officer of LKQ Corporation. "We were particularly pleased to see our North American segment report an improvement in organic revenue growth for parts and services to 2.8%, despite the ongoing headwinds of the mild weather witnessed in the first quarter of 2017. We also delivered strong parts and services organic revenue growth during the quarter in our European segment of 4.1% on a reported basis and 7.1% on a same day basis. Additionally, our Specialty segment continued to show solid improvement in the second quarter, realizing organic growth of 5.9% while its segment EBITDA margins increased 80 basis points year-over-year."
7:15 am Sunesis Pharma beats by $0.35 (SNSS) :
Reports Q2 (Jun) loss of $0.41 per share, $0.35 better than the single analyst estimate of ($0.76).
"We have made tangible progress under our revised operating plan to focus primarily on our non-covalent BTK inhibitor, SNS-062. With the first patient being dosed, the recent initiation of our Phase 1b/2 study in patients with relapsed chronic lymphocytic leukemia (:CLL) and other B-cell malignancies marks an important milestone for the company," said Daniel Swisher, Chief Executive Officer of Sunesis. "SNS-062 is designed to overcome the leading resistance pathway to ibrutinib, the predominant standard of care for the treatment of CLL. As a reversible, non-covalent BTK inhibitor, SNS-062 has the potential to establish proof of concept through the treatment and evaluation of resistant B-cell malignancy patients from this ongoing Phase 1b/2 study." Mr. Swisher added, "As we work toward this goal, we will maintain a streamlined operation and a focused investment plan with current cash resources lasting into second quarter of 2018."
7:14 am Tempur Sealy Int'l beats by $0.03, reports revs in-line; raises low-end of FY17 Adj-EBITDA guidance (TPX) :
Reports Q2 (Jun) earnings of $0.45 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.42; revenues fell 18.0% year/year to $659.3 mln vs the $661.65 mln Capital IQ Consensus.
Gross margin was 40.7% as compared to 41.9% in the second quarter of 2016.
For the full year 2017, the Company currently expects adjusted EBITDA to range from $425-450 mln (Prior $400-450 mln).
"We are pleased with our sales and EBITDA performance, despite the loss of our largest customer, and, we are encouraged that our business trends accelerated throughout the quarter. While worldwide industry trends continue to be a bit sluggish, we have outperformed our expectations and are raising the midpoint of our 2017 financial guidance."
7:14 am On The Wires (:WIRES) :
NexGen Energy (NXE) reports new uranium discovery during on-going summer drilling program on Rook I property, Athabasca Basin, Saskatchewan. The first two exploration holes of the summer drill program have resulted in the discovery of a new zone of off-scale radioactivity approximately 400 m south of the Arrow Deposit.
UTStarcom (UTSI) demonstrated its latest broadband and optical network infrastructure technology at the SoftBank World 2017 conference, held July 20--21 at the Prince Park Tower in Tokyo, Japan. Highlights of product demonstrations at the show included the next-generation packet transport network; a high-performance SDN controller; PTP synchronization for the future mobile network; a smart retail store solution; carrier-grade Wi-Fi; and a multiservice core router platform.
Attunity (ATTU) has entered into a multi-million-dollar OEM license agreement with a top information technology company who will incorporate Attunity technology to facilitate and drive database and data warehouse migrations. "During its initial three-year term, the agreement is expected to generate $9 million with options to exceed this amount through license, upsell and services expansions." said Shimon Alon, Chairman and CEO.
Valeant (VRX) announced the launch of SILIQ (brodalumab) Injection during the Summer American Academy of Dermatology meeting taking place in New York from July 27-30, 2017. SILIQ, a monoclonal antibody that targets the IL-17 receptor A, is indicated for the treatment of moderate-to-severe plaque psoriasis in adult patients who are candidates for systemic therapy or phototherapy and have failed to respond or have lost response to other systemic therapies.
7:14 am European Markets Update: DAX -0.4%, FTSE UNCH, CAC +0.2% (:SUMRX) :
Major European indices trade in mixed fashion with Germany's DAX (-0.4%) trailing its peers. European Central Bank member Ewald Nowotny said that discussions about tightening policy have begun. Mr. Nowotny acknowledged this is the proper time to begin discussing a reduction of purchases since the quantitative easing program is set to end at the end of the year. The Financial Conduct Authority announced that LIBOR will end in 2021 due to an insufficient number of transactions.
In economic data:
Eurozone June M3 Money Supply +5.0% year-over-year, as expected (last 5.0%) and Private Sector Loans +2.6% year-over-year (consensus 2.7%; last 2.6%)
Germany's August GfK Consumer Climate 10.8 (expected 10.6; last 10.6)
UK's July CBI Distributive Trades Survey 22 (expected 10; last 12)
Spain's Q2 Unemployment Rate 17.22% (expected 17.80%; last 18.75%)
---Equity Markets---
Germany's DAX is down 0.4% with BASF, Bayer, and Deutsche Bank falling between 1.7% and 3.4% after the trio reported disappointing results. Automakers Volkswagen, BMW, and Daimler show losses between 0.7% and 1.6%. On the upside, utilities RWE and E.ON show respective gains of 0.6% and 1.1% while Vonovia is higher by 2.3% to lead the way.
UK's FTSE trades flat, masking a 16.3% plunge in AstraZeneca in reaction to disappointing results and a failed clinical trial. Financials like Provident Financial, Lloyds Banking, and Barclays are down between 1.0% and 2.7%. Select consumer names outperform with Diageo, Next, TUI, Paddy Power, Associated British Foods, and Taylor Wimpey up between 1.2% and 7.4%. Diageo leads in reaction to upbeat earnings.
France's CAC is up 0.2% with help from roughly half of its components. Schneider Electric leads with a 4.0% gain after reporting earnings and boosting its revenue guidance after acquiring Asco Power Technologies for $1.25 billion. Nokia Oyj, Orange, ArcelorMittal, TechnipFMC, and Legrand show gains between 0.5% and 3.5%. On the downside, Airbus is down 4.0% after disappointing results while Safran, Peugeot, and Renault show losses between 0.7% and 2.6%.
7:13 am Gaming and Leisure Properties misses by $0.12, reports revs in-line (GLPI) :
Reports Q2 (Jun) earnings of $0.45 per share, in-line with $0.01 worse than the Capital IQ Consensus of $0.46; revenues rose 17.4% year/year to $243.4 mln vs the $243.77 mln Capital IQ Consensus.
Co sees Q3 total cash rental recepits at $219.7 mln, sees 2017 at $871.8 mln
Co sees Q3 total rent as reported at $209.2 mln, sees 2017 at $829.8 mln
Co raises 2017 adj. funds from operations guidance to $669.5 mln, up from prior guidance of $668.0 mln
Co lowers 2017 net income guidance down $0.01 to $1.79/share
Sees Q3 adj. funds from operations at $168.6 mln, sees net income at $0.45
7:13 am Starbucks to acquire the remaining 50% share of its East China business from partners Uni-President and President Chain Store for approx. $1.3 bln in cash; co will assume 100% ownership of approx. 1,300 Starbucks stores in Shanghai and Jiangsu and Zhejiang Provinces (SBUX) : Concurrently, UPEC and PCSC will acquire Starbucks 50% interest in President Starbucks Coffee Taiwan Limited ("Taiwan JV") and assume 100% ownership of Starbucks operations in Taiwan for ~$175 million. Both transactions are expected to close by early calendar year 2018 and are subject to customary closing conditions, including receipt of required regulatory approvals.
7:12 am Marsh McLennan reports EPS in-line, misses on revs (MMC) :
Reports Q2 (Jun) earnings of $1.00 per share, in-line with the Capital IQ Consensus of $1.00; revenues rose 3.5% year/year to $3.5 bln vs the $3.55 bln Capital IQ Consensus.
7:12 am S&P Global beats by $0.14, beats on revs; raises FY17 EPS, in-line (SPGI) :
Reports Q2 (Jun) earnings of $1.72 per share, $0.14 better than the Capital IQ Consensus of $1.58; revenues rose 1.8% year/year to $1.51 bln vs the $1.46 bln Capital IQ Consensus. On an organic basis, second quarter revenue increased 10% with strong growth in every business segment.
Co issues in-line guidance for FY17, raises EPS to $6.15-6.30 from $6.00-6.20 vs. $6.21 Capital IQ Consensus Estimate.
"All of our business segments contributed solid organic revenue and operating profit growth during the quarter. In particular, S&P Dow Jones Indices growth was outstanding, benefiting from record inflows into passive investments," said Douglas L. Peterson, President and Chief Executive Officer of S&P Global. "While SPDJI delivered the best top-line growth, the Market and Commodities Intelligence segment delivered the greatest adjusted margin improvement as Market Intelligence continues to successfully deliver synergies from the SNL acquisition."
7:12 am DHI Group misses by $0.02, misses on revs (DHX) :
Reports Q2 (Jun) earnings of $0.04 per share, $0.02 worse than the two analyst estimate of $0.06; revenues fell 9.2% year/year to $52.4 mln vs the $52.93 mln two analyst estimate.
Outlook "The Company expects its year-over-year rate of decline in revenue to abate progressively in the second half of 2017, while spending should increase only modestly as increased investment in its core tech business will be mostly offset by efficiencies from realigning and simplifying the organization. This outlook does not consider the impact of potential divestitures, as there is no assurance as to their timing or execution. On today's conference call, management will discuss additional details of its tech-focused strategy, including context around the financial impact of the Company's 2017 strategic objectives and operational plans."
7:12 am CoreSite Realty beats by $0.01, reports revs in-line; raises FY17 FFO guidance (COR) :
Reports Q2 (Jun) funds from operations of $1.10 per share, $0.01 better than the Capital IQ Consensus of $1.09; revenues rose 22.7% year/year to $117.89 mln vs the $117.32 mln Capital IQ Consensus.
Co raises guidance for FY17, sees FFO of $4.39-4.47 (Prior $4.35-4.45) vs. $4.43 Capital IQ Consensus Estimate.
7:11 am Milacron Holdings beats by $0.04, reports revs in-line (MCRN) :
Reports Q2 (Jun) earnings of $0.46 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $0.42; revenues rose 0.4% year/year to $309.2 mln vs the $308.25 mln Capital IQ Consensus.
Co forecasts 0% to 2% organic sales growth in 2017, which co says is in line with current market conditions. Adjusted EBITDA is forecasted to be between $219-225 mln.
"Orders and sales momentum continued in [Q2], even compared to a high prior year comp. Our outperformance has been led by our MDCS and Fluids businesses as well as our APPT aftermarket business through [1H17]. Year to date, organic sales are ahead 2.8% and adjusted EBITDA is up 4.5% versus the prior year."
"The consumables portion of our portfolio posted an impressive [Q2] driving overall company sales growth and margin expansion. Our free cash flow performance was below our expectations for the quarter with increases in accounts receivable and inventory. Although behind for the first half of the year, the working capital build will convert to cash before year end."
7:11 am American Electric misses by $0.07; reaffirms FY17 EPS guidance (AEP) :
Reports Q2 (Jun) earnings of $0.75 per share, $0.07 worse than the Capital IQ Consensus of $0.82.
Co reaffirms guidance for FY17, sees EPS of $3.55-3.75, excluding non-recurring items, vs. $3.66 Capital IQ Consensus Estimate.
7:10 am Cliffs Natural Resources beats by $0.09, beats on revs (CLF) :
Reports Q2 (Jun) earnings of $0.26 per share, $0.09 better than the Capital IQ Consensus of $0.17; revenues rose 14.7% year/year to $569.3 mln vs the $485.93 mln Capital IQ Consensus.
Outlook
Based on the assumption that iron ore and steel prices will average for the remainder of 2017 their respective year-to-date averages, Cliffs would generate approximately $310 million of net income and $650 million of adjusted EBITDA1 for the full-year 2017.
U.S. Iron Ore Outlook: Cliffs full-year sales and production volumes expectation is unchanged at approximately 19 million long tons.
Asia Pacific Iron Ore Outlook: Cliffs' full-year 2017 Asia Pacific Iron Ore expected production volume is unchanged at approximately 11.5 million metric tons. Due to market conditions, sales volume outlook has been reduced by 500,000 metric tons to 11 million metric tons. The product mix is expected to contain 52 percent lump ore and 48 percent fines
Cliffs' full-year 2017 capital expenditures budget was increased by $10 million to $115 million, with the increase attributable to early spending related to the HBI production plant.
Lourenco Goncalves, Cliffs' Chairman, President and Chief Executive Officer, said, "Our second quarter results clearly demonstrate the true power of our U.S. Iron Ore business, in which we have unrivaled operational, commercial, logistical, and quality advantages. Even as iron ore prices in Asia dropped substantially during the second quarter, these unique advantages enabled us to achieve EBITDA margins that are at the peak of the industry in the United States." Mr. Goncalves added, "Going forward, we will further expand on our unquestionable strength as a supplier of customized iron units in the Great Lakes, with the development of our HBI production plant in Toledo, Ohio. The new plant will enable Cliffs to supply high-quality, customized HBI as feedstock to select Electric Arc Furnace steelmakers. As EAF's become Cliffs' clients, we expect the earnings power of U.S. Iron Ore will carry over to this new business."
7:10 am Dupont Fabros Tech reports Q2 (Jun) results, revs in-line (DFT) :
Reports Q2 (Jun) funds from operations of $0.09 per share, may not be comparable to the Capital IQ Consensus of $0.78; revenues rose 9.6% year/year to $140.7 mln vs the $141.48 mln Capital IQ Consensus.
One pre-lease was for the entire CH3 Phase I, comprising 14.40 MW and 71,506 CRSF. This lease is expected to commence in the first quarter of 2018 when CH3 Phase I is placed into service. CH3 Phase I is now 100% pre-leased with respect to both critical load and CRSF.
Co will no longer be giving guidance due to the pending merger with Digital Realty Trust.
7:10 am Automatic Data misses by $0.01, reports revs in-line; guides FY18 EPS below consensus, revs above consensus (ADP) :
Reports Q4 (Jun) earnings of $0.66 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.67; revenues rose 5.7% year/year to $3.06 bln vs the $3.04 bln Capital IQ Consensus.
Co issues mixed guidance for FY18, sees EPS of $3.77-3.85 (+2-4%), excluding non-recurring items, vs. $3.95 Capital IQ Consensus Estimate; sees FY18 revs of $13.02-13.14 bln (+5-6%) vs. $13 bln Capital IQ Consensus Estimate.
7:10 am Iridium Communications reports EPS in-line, beats on revs; reaffirms guidance (IRDM) :
Reports Q2 (Jun) earnings of $0.20 per share, in-line with the Capital IQ Consensus of $0.20; revenues rose 2.2% year/year to $111.6 mln vs the $109.18 mln Capital IQ Consensus. Operational EBITDA for the second quarter was $65.8 million, as compared to $62.5 million for the prior-year period, representing a year-over-year increase of 5% and an OEBITDA margin of 59%. The Company ended the quarter with 913,000 total billable subscribers, which compares to 823,000 for the year-ago period and is up from 869,000 for the quarter ended March 31, 2017. Total billable subscribers grew 11% year-over-year, driven by growth in M2M and government customers.
The Company affirmed its full-year 2017 outlook for total service revenue growth and OEBITDA. The Company continues to expect: Total service revenue growth between 3% and 5% for the full-year 2017. Full-year 2017 OEBITDA between $255 million and $265 million.
The Company also affirmed its long-range outlook for total service revenue growth, OEBITDA margin, cash taxes and peak net leverage, while updating its outlook for net leverage in 2019. Based on the expected 2018 Iridium NEXT system completion, the Company expects: Total service revenue between $440 million and $465 million for the full-year 2019. OEBITDA margin of approximately 60% in 2019. Negligible cash taxes from 2017 to approximately 2020. Peak net leverage of 6.0x to 6.5x OEBITDA in 2017. Net leverage of approximately 4.5x OEBITDA in 2019.
7:10 am American Tower beats by $0.07, beats on revs; Raises guidance midpoints (AMT) :
Reports Q2 (Jun) funds from operations of $1.58 per share, $0.07 better than the Capital IQ Consensus of $1.51; revenues rose 15.3% year/year to $1.66 bln vs the $1.64 bln Capital IQ Consensus.
Raises guidance midpoints: The company is raising the midpoint of its full year 2017 outlook for property revenue, net income, Adjusted EBITDA and Consolidated AFFO by $25 million, $40 million, $45 million and $55 million, respectively.
Sees total property revenue of $6.48-6.58 bln; Adjusted EBITDA of $4.045-4.105 bln and Consolidated AFFO of $2.835-2.885 bln.
"The second quarter of 2017 represented our 17th consecutive quarter of double-digit growth in property revenue, Adjusted EBITDA and Consolidated AFFO per Share, driven by strong demand for our tower real estate from Los Angeles to So Paolo to Paris. Organic Tenant Billings Growth in the U.S. of over 6% was complemented by Organic Tenant Billings Growth of more than 10% in our international markets, where the pace of advanced handset adoption and mobile data usage growth continues to require the addition of substantial network equipment on our sites."
7:09 am Arbutus Biopharma received notice of termination from Alexion for the companies' LNP license agreement (ABUS) :
7:08 am Twitter beats by $0.03, beats on revs; Beats on EBITDA (TWTR) :
Reports Q2 (Jun) earnings of $0.08 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.05; revenues fell 4.7% year/year to $574 mln vs the $536.63 mln Capital IQ Consensus.
Adjusted EBITDA was $178 million (Guidance was $95-115 mln) or 31% of total revenue, compared to $175 million or 29% of total revenue in the second quarter of 2016.
Average MAU was 328 million for the quarter, up 5% y/y and compared to 328 million in the previous quarter.
Average DAU grew 12% y/y.
Q3 Outlook
Adjusted EBITDA to be between $130 million and $150 million;
Adjusted EBITDA margin to be between 25% and 26%;
Stock-based compensation to be between $100 million and $110 million.
FY17 Outlook
Total non-GAAP expenses to be down 3% to down 6%, compared to full year 2016 (Prior Flat to down 5%)
Stock-based compensation to be down 25% to down 30%, compared to full year 2016 (Prior guidance Down 20-25%)
Capital expenditures to be between $300 million and $400 million (Reaffirm)
7:08 am Magnegas enters into a securities purchase agreement with certain existing and new institutional accredited investors to purchase up to approximately $850,000 of its common stock and warrants to purchase Series D convertible preferred stock (MNGA) : At the initial closing under the securities purchase agreement, the Company will issue to the investors a total of 150,000 shares of common stock at a purchase price of $1.00 per share.
7:07 am Procter & Gamble beats by $0.07, reports revs in-line; mid-point of FY18 EPS guidance above consensus, revs above consensus (PG) :
Reports Q4 (Jun) core earnings of $0.85 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $0.78; revenues fell 0.1% year/year to $16.08 bln vs the $16.01 bln Capital IQ Consensus.
Co issues upside guidance for FY18, sees core EPS growth of +5-7%, which we compute as $4.12-4.19, excluding non-recurring items, vs. $4.12 Capital IQ Consensus Estimate; sees FY18 revenue growth of +3%, which we compute as approximately $67.00 bln vs. $66.69 bln Capital IQ Consensus Estimate.
"We met or exceeded each of our going-in objectives for fiscal year 2017 in a challenging macro and competitive environment."
7:06 am Tesaro and Takeda (TKPYY) announce an exclusive licensing agreement for the commercialization and clinical development of niraparib, a novel PARP inhibitor; TSRO will receive a $100 mln upfront payment + potentially $240 mln in milestones (TSRO) :
Under the terms of this agreement, TESARO will receive a $100 million upfront payment and is eligible to receive additional milestone payments of up to $240 million related to the achievement of certain regulatory and commercial goals.
TESARO will also be eligible to receive from Takeda tiered royalties based on a double digit percentage of net product sales.
Takeda gains exclusive commercial rights for all potential future niraparib indications in Japan, and rights excluding prostate cancer in South Korea, Taiwan, Russia and Australia.
Takeda will be responsible for development of niraparib in Japan and the four specified countries, including all associated expenses.
Additional terms of this agreement were not disclosed.
7:06 am LendingTree misses by $0.04, beats on revs; guides Q3 revs above consensus; raises FY17 revs above consensus (TREE) :
Reports Q2 (Jun) earnings of $0.90 per share, $0.04 worse than the Capital IQ Consensus of $0.94; revenues rose 62.0% year/year to $152.8 mln vs the $135.48 mln Capital IQ Consensus. Total loan requests in the quarter of 5.4 million grew 48%. Record Variable Marketing Margin of $48.3 million represents an increase of $14.3 million, or 42%, over second quarter 2016. Record Adjusted EBITDA of $27.0 million increased $10.3 million, or 62%, over second quarter 2016.
Co issues upside guidance for Q3, sees Q3 revs of $155-160 mln vs. $138.09 mln Capital IQ Consensus Estimate; VMM $51-54 mln; EBITDA $28-30 mln.
Co issues upside guidance for FY17, raises FY17 revs to $580-590 mln from $535-545 mln vs. $543.02 mln Capital IQ Consensus; VMM 190-195 mln; EBITDA $103-106 mln.
7:06 am H&E Equipment beats by $0.07, beats on revs (HEES) :
Reports Q2 (Jun) earnings of $0.28 per share, $0.07 better than the Capital IQ Consensus of $0.21; revenues rose 3.0% year/year to $249.4 mln vs the $237.81 mln Capital IQ Consensus.
John Engquist, H&E Equipment Services' chief executive officer, said, "Demand in the non-residential construction markets we serve was strong during the second quarter and as a result, rental revenues increased 8.9%, physical utilization increased 210 basis points, and rental gross margins increased to 47.6%. We also achieved a 0.3% positive increase in rental rates compared to a year ago and compared to the first quarter of this year. We were very pleased to see positive rates this early in the year." Engquist concluded, "As we move into the second half of the year, we believe the trends in our business and the optimism in our end-user markets remain positive."
7:06 am Old Dominion beats by $0.09, beats on revs (ODFL) :
Reports Q2 (Jun) earnings of $1.19 per share, $0.09 better than the Capital IQ Consensus of $1.10; revenues rose 11.2% year/year to $839.9 mln vs the $824.68 mln Capital IQ Consensus.
7:06 am Alkermes beats by $0.02, beats on revs; reaffirms FY17 EPS guidance, revs guidance (ALKS) :
Reports Q2 (Jun) earnings of $0.01 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of ($0.01); revenues rose 12.1% year/year to $218.8 mln vs the $216.54 mln Capital IQ Consensus.
Co reaffirms guidance for FY17, sees EPS of ($0.10) - ($0.09) vs. ($0.03) Capital IQ Consensus Estimate; sees FY17 revs of $870-920 mln vs. $891.21 mln Capital IQ Consensus Estimate.
"We are executing on our strategy and making rapid progress as we continue to invest in our future growth drivers. Following a pre-NDA meeting with FDA for ALKS 5461 earlier this week, we are on track to begin the rolling submission of the ALKS 5461 New Drug Application next month and expect to complete the submission by year-end 2017. We are excited to bring this important, potential, new proprietary medicine to patients struggling with major depressive disorder."
7:06 am Abiomed beats by $0.40, beats on revs; raises low-end of FY18 revs guidance (ABMD) :
Reports Q1 (Jun) GAAP earnings of $0.82 per share, $0.40 better than the Capital IQ GAAP Consensus of $0.42; revenues rose 28.6% year/year to $132.47 mln vs the $130.83 mln Capital IQ Consensus. GAAP EPS benefited from the adoption of a new accounting standard that required $16.8 million, or $0.37 per diluted share, of excess tax benefits related to employee share-based compensation awards be recorded as a reduction of income tax expense.
The installed base for Impella 2.5 heart pumps in the U.S. grew by an additional 16 hospitals, which made initial purchases of Impella heart pumps, bringing the installed customer base to 1,154 sites. The installed customer base for Impella CP heart pumps grew by 46 new U.S. hospitals, bringing the total number of Impella CP sites to 1,062. The installed customer base for Impella 5.0 heart pumps grew by 19 new U.S. hospitals, bringing the total number of Impella 5.0 sites to 472.
An additional 15 sites made initial purchases of the Impella RP heart pumps during the quarter, bringing the total number to 142 sites.
Gross margin for fiscal first quarter 2018 was 83.5% compared to 85.4% in the first quarter of fiscal 2017.
Co increases guidance for FY18, sees FY18 revs of $560-575 mln (Prior $555-575 mln) vs. $570.48 mln Capital IQ Consensus Estimate; The Company is maintaining its fiscal year guidance for GAAP operating margin in the range of 22% to 24%
7:05 am AstraZeneca announces that the Phase III FLAURA trial showed a statistically-significant and clinically-meaningful progression-free survival (PFS) benefit with TAGRISSO (AZN) :
TAGRISSO met the primary endpoint, demonstrating a statistically-significant and clinically-meaningful progression-free survival benefit in 1st-line EGFRm+ non-small cell lung cancer compared to current standard-of-care treatment.
The efficacy, safety and tolerability profiles for TAGRISSO, erlotinib and gefitinib were consistent with current knowledge.
A full evaluation of the FLAURA data is ongoing.
Further results will be presented at a forthcoming medical meeting.
The most common adverse reactions in patients treated with TAGRISSO were diarrhea, rash , dry skin, nail toxicity, and fatigue.
7:05 am ConocoPhillips beats by $0.17 (COP) :
Reports Q2 (Jun) earnings of $0.14 per share, excluding non-recurring items, $0.17 better than the Capital IQ Consensus of ($0.03).
Achieved second-quarter production excluding Libya of 1,425 MBOED; 3 percent year-over-year underlying production growth when excluding the impact of closed and signed dispositions. Increasing full-year underlying production, while also lowering capital expenditures guidance.
Outlook
Third-quarter 2017 production is expected to be 1,170 to 1,210 MBOED, which excludes Libya and reflects expected impacts from the San Juan, Barnett and Panhandle dispositions. The company's full-year production on the same basis is expected to be 1,340 to 1,370 MBOED.
Full-year guidance for capital expenditures has been lowered to $4.8 billion.
Full-year guidance for depreciation, depletion and amortization has been decreased to $7.0 billion, reflecting the impact of asset sales and decreased expense associated with price- and performance-related positive reserve revisions. Corporate segment net expense guidance is $1.3 billion, decreased to $1.0 billion on an adjusted basis, reflecting tax impacts following the announced dispositions and lower interest expense from early debt retirement.
Production and operating expenses are expected to be $5.0 billion, which results in adjusted operating costs of $5.7 billion, reflecting the impact of asset sales. Dry hole expense guidance is $400 million, which results in adjusted dry hole and leasehold impairment expense of $450 million.
The company expects to reduce debt to less than $20 billion by year-end 2017, and expects full-year share repurchases of $3 billion with accelerating production growth on a per-share basis.
"This quarter highlights the significant progress we've made in transforming our company. In just six months we've exceeded the three-year plan we laid out in late 2016. We've reset our portfolio through strategic dispositions that generated substantial proceeds, allowing us to accelerate key financial and operational priorities," said Ryan Lance, chairman and chief executive officer. "We are on track to far surpass our initial debt reduction and shareholder payout targets, while accelerating strong underlying financial and operational performance. We remain focused on lowering our breakeven price for the business, generating free cash flow and delivering strong per-share growth with improving returns through the price cycles. This is the right approach for value creation in the upstream sector, especially at a time of uncertainty in the commodity markets."
7:04 am Masco reports EPS in-line, revs in-line; guides FY17 EPS in-line; plans to raise dividend (MAS) :
Reports Q2 (Jun) earnings of $0.60 per share, in-line with the Capital IQ Consensus of $0.60; revenues rose 2.8% year/year to $2.06 bln vs the $2.07 bln Capital IQ Consensus.
Co issues in-line guidance for FY17, sees EPS of $1.93-2.00 vs. $1.96 Capital IQ Consensus Estimate, up from $1.90 to $2.00 prior guidance.
Looking forward, co is committed to achieving 2019 earnings per share target of $2.50 that they introduced at our Investor Day.
Reflecting confidence in our plans and Masco's outlook, Board of Directors intends to increase annual dividend by $0.02 per share to $0.42 per share, beginning with the quarterly dividend to be paid in the fourth quarter of 2017.
7:04 am Akcea Therapeutics and Ionis (IONS) announce that a MAA has been submitted to the EMA for volanesorsen for the treatment of patients with familial chylomicronemia syndrome (AKCA) :
7:04 am Raytheon beats by $0.22, reports revs in-line; raises FY17 EPS and revs guidance (RTN) :
Reports Q2 (Jun) earnings of $1.98 per share, excluding $0.09 in non-recurring items, $0.22 better than the Capital IQ Consensus of $1.76; revenues rose 4.2% year/year to $6.28 bln vs the $6.24 bln Capital IQ Consensus.
Co raises guidance for FY17, sees EPS of $7.35-7.50 vs. $7.49 Capital IQ Consensus Estimate, up from $7.25-7.40; raises FY17 revs to $25.1-25.6 bln vs. $25.18 bln Capital IQ Consensus Estimate, up from $24.9-25.4 bln.
7:04 am Visteon beats by $0.10, reports revs in-line; guides FY17 revs in-line (VC) :
Reports Q2 (Jun) earnings of $1.38 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus of $1.28; revenues rose 0.1% year/year to $774 mln vs the $770.96 mln Capital IQ Consensus.
"Our second-quarter performance was very solid, with improved year-over-year sales and adjusted EBITDA," said Visteon President and CEO Sachin Lawande. "Sales grew 3 percent, excluding currency, despite flat global vehicle production volumes. This growth was driven by a high number of new product launches over the past several quarters, particularly in China. Adjusted EBITDA improved due to higher sales and our ongoing focus on cost reduction."
Co issues in-line guidance for FY17, sees FY17 revs of $3.1-$3.2 bln vs. $3.17 bln Capital IQ Consensus Estimate.
7:02 am Great Western Bancorp misses by $0.04, misses on revs (GWB) :
Reports Q2 (Jun) earnings of $0.59 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus of $0.63; revenues rose 13.4% year/year to $114.22 mln vs the $117.1 mln Capital IQ Consensus.
Net interest margin was 4.00%, 3.98% and 3.95%, respectively, for the quarters ended June 30, 2017, March 31, 2017 and June 30, 2016. Adjusted net interest margin, which adjusts for the realized gain (loss) on interest rate swaps, was 3.87%, 3.83% and 3.74%, respectively, for the same periods. Net interest margin and adjusted net interest margin increased by 2 basis points and 4 basis points, respectively, compared to the quarter ended March 31, 2017. The yield on interest-earning assets increased by 6 basis points over the quarter, driven by lower average interest-earning cash balances as a proportion of earning assets and improving loan and investment yields. Meanwhile, the cost of interest-bearing liabilities increased by 4 basis points over the same period, including a 6 basis point increase in the cost of deposits, partially offset by a significant reduction in average FHLB borrowings outstanding. A $0.6 million reduction in the cost of interest rate swaps compared to the prior quarter is the driver of the more pronounced increase in adjusted net interest margin compared to net interest margin.
Outlook:
"Our dedication to developing processes and programs to meet regulatory and risk administration expectations have driven increased expenses in the short term," added Karels. "But we are proud that despite these increased costs we were able to maintain a very attractive efficiency ratio and we are dedicated to managing our cost structure in the future to drive further improvements to our efficiency. We believe we are pursuing the correct priorities to allow us to manage the business and its inherent risks while positioning for revenue growth."
7:02 am Medical Transcription Billing sees FY 17 revs of approx. $31-32 mln vs previous guidance of $30-31 mln and $32.60 mln consensus (MTBC) : The Company reaffirms its guidance for adjusted EBITDA of $2.0 to $2.5 million for full year 2017.
7:01 am Penske Auto beats by $0.06, misses on revs (PAG) :
Reports Q2 (Jun) earnings of $1.27 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $1.21; revenues rose 2.5% year/year to $5.38 bln vs the $5.44 bln Capital IQ Consensus.
Same-Store Retail Unit Sales -1.9% to 112,796.
New unit retail sales -3.4%.
Used unit retail sales -0.1%.
7:01 am Park Sterling beats by $0.03 (PSTB) :
Reports Q2 (Jun) earnings of $0.17 per share, $0.03 better than the Capital IQ Consensus of $0.14.
7:01 am Bristol-Myers beats by $0.01, beats on revs; raises low end of FY17 EPS (BMY) :
Reports Q2 (Jun) earnings of $0.74 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.73; revenues rose 5.6% year/year to $5.14 bln vs the $5.09 bln Capital IQ Consensus. Revenues increased 7% when adjusted for foreign exchange impact. U.S. revenues increased 7% to $2.9 billion in the quarter compared to the same period a year ago. International revenues increased 4%. When adjusted for foreign exchange impact, international revenues increased 7%. Gross margin as a percentage of revenue decreased from 75.2% to 69.6% in the quarter primarily due to product mix and a $127 million impairment charge in connection with the expected sale of manufacturing operations in Swords, Ireland.
Co issues in-line guidance for FY17, sees EPS of $2.90-3.00 from $2.85-3.00, excluding non-recurring items, vs. $2.94 Capital IQ Consensus Estimate.
7:00 am Advanced Accelerator Applications resubmits NDA for investigational drug lutetium Lu 177 dotatate (Lutathera) to the FDA (AAAP) :
Co also announced that the FDA allowed an amendment to the protocol for the US Expanded Access Program (:EAP) for lutetium Lu 177 dotatate (Lutathera) to permit enrollment of patients with metastasized or locally advanced, inoperable neuroendocrine tumors (NETs) arising at all sites (including foregut, midgut and hindgut), and that have progressive disease during or after treatment with somatostatin analogues.
7:00 am Intl Paper reports EPS in-line, revs in-line (IP) :
Reports Q2 (Jun) earnings of $0.65 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.65; revenues rose 8.5% year/year to $5.77 bln vs the $5.72 bln Capital IQ Consensus.
"Solid second quarter results were supported by healthy demand in our North American Industrial Packaging business and record fluff pulp sales which were partially offset by higher than expected OCC costs," said Mark Sutton, Chairman and Chief Executive Officer. "Looking forward, we see margin expansion associated with the realization of our announced price increases, acquisition synergies and significantly lower outage expenses driving a very strong second half and putting IP on track to deliver our full year earnings target."
7:00 am L-3 beats by $0.19, beats on revs; guides FY17 EPS in-line, revs in-line (LLL) :
Reports Q2 (Jun) earnings of $2.21 per share, excluding non-recurring items, $0.19 better than the Capital IQ Consensus of $2.02; revenues rose 2.6% year/year to $2.73 bln vs the $2.70 bln Capital IQ Consensus.
Co issues in-line guidance for FY17, sees EPS of $8.65-8.85 vs. $8.77 Capital IQ Consensus Estimate and vs prior guidance of $8.50-8.70; sees FY17 revs of $10.80-11.00 bln vs. $10.93 bln Capital IQ Consensus Estimate and up slightly from prior guidance of $10.75-10.95 bln. Co reaffirms FY17 operating margin guidance of 10.3%.
7:00 am Johnson Controls reports EPS in-line, revs in-line; guides Q4 EPS below consensus; lowers FY17 EPS below consensus (JCI) :
Reports Q3 (Jun) earnings of $0.71 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.71; revenues rose 48.8% year/year to $7.67 bln vs the $7.72 bln Capital IQ Consensus.
Co issues downside guidance for Q4, sees EPS of $0.86-0.88, excluding non-recurring items, vs. $0.89 Capital IQ Consensus Estimate.
Co issues downside guidance for FY17, sees EPS of $2.60-2.62 (prior: $2.60-2.68), excluding non-recurring items, vs. $2.63 Capital IQ Consensus Estimate.
"Strong margin expansion, primarily related to the benefit of cost synergies and productivity initiatives, drove our year-over-year double-digit EPS growth in the quarter," said Alex Molinaroli, Johnson Controls chairman & CEO. "Although we continue to make significant strides with the merger integration, we have fallen short of our revenue growth expectations for the year and are guiding our full year adjusted earnings per share to the low end of the range previously provided. Given the very complex merger integration, I am very proud of what our global teams have accomplished to capture near term synergies and establish a strong strategic platform that will ultimately drive global growth and continued margin expansion across our businesses," Molinaroli added.
6:59 am Invesco beats by $0.03, beats on revs (IVZ) :
Reports Q2 (Jun) earnings of $0.64 per share, $0.03 better than the Capital IQ Consensus of $0.61; revenues rose 4.5% year/year to $906.3 mln vs the $891.19 mln Capital IQ Consensus.
6:59 am GasLog Partners misses by $0.11, beats on revs; increases distribution (GLOP) :
Reports Q2 (Jun) earnings of $0.45 per share, $0.11 worse than the Capital IQ Consensus of $0.56; revenues rose 1.9% year/year to $65.27 mln vs the $61.86 mln Capital IQ Consensus.
On July 26, 2017, the board of directors of GasLog Partners approved and declared a quarterly cash distribution of $0.51 per common unit (Prior $0.50) for the quarter ended June 30, 2017.
6:59 am Teradata misses by $0.06, misses on revs; guides FY17 in-line (TDC) :
Reports Q2 (Jun) earnings of $0.22 per share, excluding non-recurring items, $0.06 worse than the Capital IQ Consensus of $0.28; revenues fell 14.4% year/year to $513 mln vs the $519.79 mln Capital IQ Consensus.
Teradata is seeing good momentum in its business transformation as more customers than anticipated chose to purchase Teradata's technology by utilizing the company's new subscription-based options in the quarter. The $58 million of perpetual equivalent contract value from these transactions will be recognized as revenue over time. Product Annual Recurring Revenue (ARR) continues to meaningfully increase as more of Teradata's customers adopt its new purchasing options.
Co issues in-line guidance for FY17, sees EPS of $1.22-1.27 vs. $1.27 Capital IQ Consensus Estimate; sees FY17 revs of $2.095-2.14 bln vs. $2.1 bln Capital IQ Consensus Estimate.
As more of Teradata's customers shift to the company's new subscription-based pricing and cloud deployment options, it is difficult to estimate how much full-year 2017 reported revenue could be impacted by the ratable manner in which revenue is recognized for these new purchasing options. Teradata is narrowing its range of expectations for 2017 full-year revenue to $2.095 - $2.140 billion, down 8-10 percent from 2016, or down 5-7 percent excluding the Marketing Applications business sold in 2016.(2) This favorably compares to Teradata's previous expectation that 2017 full-year revenue could be down 5-10 percent excluding the divested Marketing Applications business. Teradata expects its fourth quarter results to be much stronger than what is expected for the third quarter, even after being seasonally adjusted. However, such expectations are highly dependent upon the rate at which customers convert to subscription-based transactions as well as the factors described in the company's filings with the U.S. Securities and Exchange Commission.
6:58 am MPLX LP beats by $0.04, beats on revs (MPLX) :
Reports Q2 (Jun) earnings of $0.26 per share, $0.04 better than the Capital IQ Consensus of $0.22; revenues rose 31.2% year/year to $916 mln vs the $884.7 mln Capital IQ Consensus.
Co reported Q2 distribution coverage ratio at 1.26x, distribution per common unit of $0.5625
Looking ahead...
Co sees 2017 distributable cash flow at $1.30-1.45 bln
Sees distribution growth rate of 12-15%
6:57 am Banco Santander concludes EUR 7.072 bln rights issue with investor demand amounting to more than eight times the number of new shares offered (SAN) :
Requests to subscribe a total of 12,081,854,169 shares were received during the transaction, representing 829% of the 1,458,232,745 new shares issued. The new shares are expected to start trading on Spanish stock exchanges on July 31st.
The transaction achieved the tightest discount to TERP (17.75%) seen in any M&A financing rights issue globally above 3bn in the last 10 years.
6:57 am Asian Markets Close: Nikkei +0.2%, Hang Seng +0.7%, Shanghai +0.1% (:SUMRX) :
Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note, but trading ranges were fairly narrow. Samsung reported second quarter earnings, which were just ahead of the company's preliminary results. Copper ($2.886/lb) has climbed to its best level since early 2015, advancing amid speculation that China could ban imports of some scrap metals, including copper, from the end of 2018. The Japanese government has recommended a 3.0% minimum wage increase to JPY848/hour. Meanwhile, Japan's Prime Minister Shinzo Abe remains embroiled in a scandal that has dropped his approval rating to 26.0%, according to Mainichi.
In economic data:
Hong Kong's trade deficit widened to HKD48.30 billion from HKD35.70 billion. June Imports +10.4% month-over-month (last 6.6%) and June Exports +11.1% month-over-month (last 4.0%).
Australia's Q2 Import Price Index -0.1% quarter-over-quarter (expected 0.7%; last 1.2%) and Export Price Index -5.7% quarter-over-quarter (expected -6.3%; last 9.4%)
South Korea's Q2 GDP +0.6% quarter-over-quarter, as expected (last 1.1%); +2.7% year-over-year, as expected (last 2.9%)
---Equity Markets---
Japan's Nikkei added 0.2%. Toho, Tokyo Electron, Advantest, Dainippon Screen Manufacturing, TOTO, Alps Electric, Sony, Meiji Holdings, Toyota, and Fujitsu gained between 1.0% and 5.0%. Toshiba was the weakest performer, falling 6.0%.
Hong Kong's Hang Seng climbed 0.7% amid gains in more than half of its components. Property names like China Resources Land, Link Reit, China Overseas, New World Development, SHK Properties, Sino Land, and Henderson Land posted gains between 0.6% and 4.3%. Consumer names underperformed with China Mengniu Dairy and Want Want China losing 0.6% and 0.4%, respectively.
China's Shanghai Composite ticked up 0.1%. Nanjing Chixia Development, Shengyi Technology, Sunyard System Engineering, Shanghai U9 Game, and Inspur Software advanced between 4.9% and 6.1%.
India's Sensex ended flat. Financials like HDFC Bank and SBI gained 2.2% and 0.9% respectively, while AXIS Bank and ICICI Bank both lost near 1.0%. Dr. Reddy's Labs was the weakest performer in reaction to earnings, falling 3.3%.
---FX---
USDJPY +0.2% to 111.34
USDCNY -0.2% to 6.7391
USDINR -0.4% to 64.12
6:57 am CB Richard Ellis beats by $0.12, misses on revs; guides FY17 EPS above consensus (CBG) :
Reports Q2 (Jun) earnings of $0.65 per share, $0.12 better than the Capital IQ Consensus of $0.53; revenues rose 4.2% year/year to $3.34 bln vs the $3.39 bln Capital IQ Consensus.
Co issues upside guidance for FY17, raises EPS guidance to $2.53-2.63 vs. $2.43 Capital IQ Consensus Estimate.
At the mid-point of the range, this implies 12% growth in adjusted earnings per share for full-year 2017. Compared to its prior guidance given in February, the company expects its leasing revenue to be slightly below and its capital markets revenue to be slightly above its initial expectations for the year. The company expects fee revenue growth for its occupier outsourcing business to be 10% or slightly higher. The company expects adjusted EBITDA contributions from its development services and investment management businesses, together, to be flat to slightly up in 2017 versus its prior expectation of flat to slightly down. Finally, full-year margins are now likely to be at the high-end of the previously guided 17.5% to 18.0% range, despite a continued shift in business mix.
6:54 am Valero Energy beats by $0.10, beats on revs (VLO) :
Reports Q2 (Jun) earnings of $1.23 per share, $0.10 better than the Capital IQ Consensus of $1.13; revenues rose 13.6% year/year to $22.25 bln vs the $19.32 bln Capital IQ Consensus. The refining segment reported $959 million of operating income for the second quarter of 2017 compared to $1.3 billion for the second quarter of 2016. Second quarter 2017 operating income was in line with second quarter 2016 adjusted operating income of $902 million.
"With continued focus on safe and reliable operations, we delivered another quarter of solid operating and financial performance," said Joe Gorder, Valero Chairman, President and Chief Executive Officer. "We're encouraged by resilient product demand and the bullish trend in product inventory draws."
6:54 am ICICI Bank shares down 1% following Q1 2018 results (IBN) :
Co reports Q1 2018 profit of INR 42.807 bln vs INR 43.276 bln last year; net premium income of INR 482.0 bln vs INR 360.9 bln last year.
As of June 30, the total assets under management of the company were INR 1.265 trillion.
6:53 am Lazard beats by $0.18, beats on revs (LAZ) :
Reports Q2 (Jun) earnings of $0.98 per share, excluding non-recurring items, $0.18 better than the Capital IQ Consensus of $0.80; operating revenues rose 32.8% year/year to $720.16 mln vs the $627.12 mln Capital IQ Consensus.
During Q2, co says it was engaged in highly visible, complex M&A transactions and other advisory assignments, including cross-border transactions, spin-offs and distressed asset sales, as well as sovereign, capital and shareholder advisory in the Americas, Europe, Australia, Africa and Asia. Among the major M&A transactions that were completed during Q2: Johnson & Johnson's $30 billion acquisition of Actelion, with spin-out of Idorsia, a new R&D company; Danone's $12.5 billion acquisition of WhiteWave; United Arab Shipping Company's $12.5 billion combination with Hapag-Lloyd; and Alinta Holdings on the sale of Alinta Energy to Chow Tai Fook Enterprises.
6:53 am Reliance Steel beats by $0.03, beats on revs; guides Q3 EPS below consensus (RS) :
Reports Q2 (Jun) earnings of $1.40 per share, $0.03 better than the Capital IQ Consensus of $1.37; revenues rose 12.3% year/year to $2.48 bln vs the $2.45 bln Capital IQ Consensus. EPS was in-line with the company's reduced guidance from late June
Tons sold were up 1.4% from the second quarter of 2016 and flat with the first quarter of 2017, with the average selling price per ton sold up 11.3% from the second quarter of 2016 and up 2.4% from the first quarter of 2017.
Gross profit margin was 28.4%, compared to 31.1% in the second quarter of 2016 and 29.8% in the first quarter of 2017. FIFO gross profit margin was 28.8%, compared to 31.1% in the second quarter of 2016 and 30.2% in the first quarter of 2017.
Co issues downside guidance for Q3, sees EPS of $1.15-1.25 vs. $1.28 Capital IQ Consensus Estimate.
Reliance management remains cautiously optimistic in regard to business activity levels in the third quarter of 2017, subject to normal seasonal patterns. The Company expects current demand will remain steady except for the typical third quarter decline in shipping volume due to customer shutdowns and vacation schedules. In addition, there is one less shipping day in the third quarter of 2017 compared to the second quarter of 2017. As a result, the Company estimates tons sold will be down 3% to 5% in the third quarter of 2017 compared to the second quarter of 2017. Given the recent increases in carbon steel pricing and the potential for fewer imports, pricing momentum is positive. Therefore, the Company expects its average selling price will be flat to up 3% compared to the second quarter of 2017.
6:53 am GNC Holdings beats by $0.05, reports revs in-line (GNC) :
Reports Q2 (Jun) earnings of $0.41 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $0.36; revenues fell 4.8% year/year to $640.99 mln vs the $646.48 mln Capital IQ Consensus.
Same store sales decreased 0.9% in domestic company-owned stores (including GNC.com sales) in the second quarter of 2017.
In domestic franchise locations, same store sales decreased 1.1%.
Update on One New GNC
Transaction growth continued in the second quarter, up 12.3%, resulting in sequential quarterly improvement in same store sales.
As of the end of the second quarter of 2017, 7.3 million consumers had joined the myGNC Rewards Program and there were approximately 237,000 PRO Access members.
As an element of the Company's omnichannel strategy, early in 2017, the Company launched a GNC storefront on Amazon which continues to exceed the Company's expectations.
"We made good progress in the second quarter, and our investments in pricing, loyalty and improving the customer experience continued to deliver positiveresults," said interim CEO, Bob Moran. "For the second quarter in a row, we saw meaningful transaction growth, improvement in our dot.com business and increased enrollment in our loyalty programs. We believe this business is headed in the right direction, and we remain focused on execution and sales growth."
6:53 am Glatfelter Co to eliminate approx. 50 hourly and 70 salaried positions at the Paper Machine 24 facility; expected to result in an annual net profitability improvement of approximately $9 million and the avoidance of costly market-driven downtime (GLT) :
The PM24 shutdown will remove approximately 80,000 tons, or 10%, of capacity from the Specialty Papers Business Unit and reduce the Chillicothe facility's exposure to purchased pulp. The Company plans for production to be absorbed by the remaining seven paper machines in the business unit.
The machine shutdown and headcount reductions are expected to result in an annual net profitability improvement of ~$9 million and the avoidance of costly market-driven downtime.
In connection with these cost reduction initiatives, the Company will recognize an aggregate pre-tax charge to earnings of ~$8-9 million including an estimated $5-6 million in non-cash charges.
The majority of the charge is expected to be recognized in 3Q17.
6:51 am Fiat Chrysler beats by EUR 0.17, misses on revs; reaffirms FY17 guidance (FCAU) :
Reports Q2 (Jun) earnings of 0.69 per share, excluding non-recurring items, 0.17 better than the Capital IQ Consensus of 0.52; revenues rose 0.1% year/year to 27.93 bln vs the 29.24 bln Capital IQ Consensus. Shipments -1%. Adj. EBIT +15% to EUR 1.87 bln. Delivered record Q2 results with improvements in Maserati, LATAM, EMEA and Components, and continued strong performance in NAFTA; Group margin up 90 bps to record 6.7%; Maserati margin more than doubled to 14.2% from 6.2%; NAFTA margin up 50 bps to record 8.4%
Co reaffirms guidance for FY17, sees FY17 revs of 115-120 bln vs. 115.61 bln Capital IQ Consensus Estimate; EBIT > EUR 7 bln; adj. net profit > 3 bln;
6:51 am AllianceBernstein beats by $0.02, beats on revs; declares quarterly distribution (AB) :
Reports Q2 (Jun) earnings of $0.49 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.47; revenues rose 10.5% year/year to $802.31 mln vs the $771.88 mln Capital IQ Consensus.
Total assets under management as of June 30, 2017 were $516.6 billion, up $18.7 billion, or 3.8%, from March 31, 2017, and up $27.1 billion, or 5.5%, from June 30, 2016. Total net inflows were $4.7 billion in the second quarter, compared to net outflows of $0.2 billion in the previous quarter, and net inflows of $3.5 billion in the prior year period.
The firm's cash distribution per unit of $0.49 (Prior $0.46) is payable on August 24, 2017, to holders of record of AB Holding Units at the close of business on August 7, 2017.
6:49 am SunCoke Energy misses by $0.24, misses on revs (SXC) :
Reports Q2 (Jun) loss of $0.38 per share, excluding non-recurring items, $0.24 worse than the single analyst estimate of ($0.14); revenues rose 10.4% year/year to $323.2 mln vs the $347.9 mln single analyst estimate.
Domestic coke production is expected to be approximately 3.9 million tons. Consolidated Adjusted EBITDA is expected to be between $220 million and $235 million. Adjusted
EBITDA attributable to SXC is expected to be between $130 million and $141 million, reflecting the impact of public ownership in SXCP. Capital expenditures are projected to be approximately $80 million.
6:49 am Mitel Networks misses by $0.01, misses on revs; guides Q3 revs above consensus (MITL) :
Reports Q2 (Jun) earnings of $0.13 per share, $0.01 worse than the Capital IQ Consensus of $0.14; revenues fell 8.3% year/year to $238.6 mln vs the $244.55 mln Capital IQ Consensus.
Recurring cloud seats grew by 77,000 during the quarter and now stand at 665,000
Co issues upside guidance for Q3, sees Q3 revs of $225-250 mln vs. $234.26 mln Capital IQ Consensus Estimate.
"During the quarter, Mitel experienced a distinct acceleration by its customers into hosted cloud solutions and services. That shift manifested itself in a record level of cloud bookings for the company," said Rich McBee, Chief Executive Officer. "In line with the market shift, in the second quarter Mitel initiated significant organization structural changes to accelerate our move-to-the-cloud strategy further with the consolidation of previously separate Enterprise and Cloud organizations. While we expect the benefits of these changes to be fully realized in the coming quarters, we have seen immediate improvements in customer experience and reduced operational expenditures as a result of our business realignment."
ShorTel (SHOR) Acqusition
In commenting about the agreement to acquire ShoreTel announced earlier today, Mr. McBee stated, "This consolidation will accelerate our growth strategy by transitioning the company further and faster into the UCaaS market as digital transformation increases customer demand for cloud-based solutions worldwide. The combined company will be stronger together with the scale and cloud technologies to take customers to the cloud faster."
6:48 am GP Strategies beats by $0.03, reports revs in-line (GPX) :
Reports Q2 (Jun) earnings of $0.35 per share, $0.03 better than the two analyst estimate of $0.32; revenues rose 4.5% year/year to $131.16 mln vs the $131.2 mln Capital IQ Consensus.
6:47 am Dow Chemical beats by $0.08, beats on revs (DOW) :
Reports Q2 (Jun) earnings of $1.08 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $1.00; revenues rose 15.7% year/year to $13.83 bln vs the $13.6 bln Capital IQ Consensus. Sales rose 8% excluding the addition of Dow Corning's silicones business, with increases in all operating segments and all geographic areas. Sales gains were led by Performance Materials & Chemicals (up 13%) as well as Performance Plastics and Consumer Solutions (each up 8%), and by EMEAI (up 12%), Asia Pacific (up 8%) and North America (up 7%). Volume grew 3% excluding the impact of acquisitions, reflecting broad-based gains in all operating segments and all geographic areas, led by the Middle East and Africa (up 17%), India (up 14%), Asia Pacific (up 6%) and Europe (up 4%). Volume growth was led by businesses aligned to Dow's downstream consumer-driven end-markets of automotive, infrastructure, consumer care, electronics and agriculture. Operating segment highlights include Consumer Solutions (up 9%), Agricultural Sciences (up 6%) and Infrastructure Solutions and Performance Materials & Chemicals (each up 3%). Price rose 5%, with gains in all geographic areas. Price increases were achieved in Performance Materials & Chemicals, Performance Plastics and Infrastructure Solutions.
Dow (DOW) and DuPont (DD) advanced their proposed merger transaction. The companies reaffirmed the expectation to close the merger in August 2017, announced the Board of Directors for DowDuPont and achieved conditional regulatory clearance in key jurisdictions.
6:47 am First American Financial beats by $0.16, beats on revs (FAF) :
Reports Q2 (Jun) earnings of $1.09 per share, $0.16 better than the Capital IQ Consensus of $0.93; revenues rose 6.8% year/year to $1.45 bln vs the $1.41 bln Capital IQ Consensus.
Investment income was $34.7 million in the second quarter, up $7.2 million, or 26 percent, primarily due to the increase in short-term interest rates that drove higher interest income in our debt securities portfolio and on balances held in our tax-deferred property exchange business. In addition, investment income also benefited from a larger allocation to higher-yielding municipal bonds and an increase in average invested balances in our debt securities portfolio. Net realized investment gains totaled $16.7 million in the current quarter, compared with gains of $7.8 million in the second quarter of 2016.
6:47 am New Media Investment reports Q2 (Jun) results, revs in-line (NEWM) :
Reports Q2 (Jun) loss of $0.41 per share, may not be comparable to the single analyst estimate of $0.14; revenues rose 2.6% year/year to $322.9 mln vs the $320.54 mln single analyst estimate.
Net loss of $21.7 million was negatively impacted by approximately $36.6 million of non-cash charges, primarily $27.4 million of intangible impairments and $8.0 million of book tax expense. Excluding these items, the Company's result was $14.9 million of Net income.
6:46 am Build-A-Bear Workshop beats by $0.05, misses on revs (BBW) :
Reports Q2 (Jun) loss of $0.15 per share, excluding non-recurring items, $0.05 better than the two analyst estimate of ($0.20); revenues rose 2.9% year/year to $77.3 mln vs the $78.58 mln two analyst estimate.
Retail gross margin was 43.7%, an increase of 150 basis points compared to the fiscal 2016 second quarter, reflecting a 190 basis-point expansion in merchandise margin partially offset by deleverage of fixed occupancy costs.
6:46 am UNITIL Corporation beats by $0.03 (UTL) :
Reports Q2 (Jun) earnings of $0.23 per share, $0.03 better than the two analyst estimate of $0.20.
"Our second quarter results improved significantly over the prior year, reflecting underlying customer growth, increasing investment in our electric and gas delivery systems and generally supportive regulatory processes," said Robert G. Schoenberger, Unitil's Chairman and Chief Executive Officer. "We continue to experience steady growth in both our gas and electric businesses."
6:43 am Marathon Petroleum misses by $0.03, misses on revs (MPC) :
Reports Q2 (Jun) earnings of $1.03 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus of $1.06; revenues rose 9.3% year/year to $18.35 bln vs the $19.98 bln Capital IQ Consensus.
"Looking forward, we believe the U.S. and global macroeconomic picture remains favorable and we expect good underlying economic growth will continue to support strong demand for our products...With top-tier, strategically located assets with export access, MPC is well-positioned to meet the energy needs of the markets and to continue to drive long-term value for shareholders."
6:43 am EQT Corp. misses by $0.08, misses on revs (EQT) :
Reports Q2 (Jun) earnings of $0.06 per share, excluding non-recurring items, $0.08 worse than the Capital IQ Consensus of $0.14; revenues rose 720.1% year/year to $631.1 mln vs the $642.21 mln Capital IQ Consensus.
Production sales volume was 7% higher than second quarter 2016
Average realized price was 36% higher than second quarter 2016
Distributions payable to EQT from EQGP totaled $50 million
Steve Schlotterbeck, president and chief executive officer, stated, "Significant sales volume growth and an increase in the average realized price contributed to our strong second quarter results. We were also able to ramp up execution of our consolidation strategy by entering into an agreement to acquire Rice Energy. Rice is an outstanding strategic and operational fit for us and we anticipate the combined entities will capture significant operating efficiencies, improve overall well economics, and deliver stronger returns to our shareholders. With our asset position in one of the most prolific natural gas basins in the world, we remain confident in our ability to drive both near- and long-term value creation."
6:43 am EQT GP Holdings beats by $0.05, beats on revs; guides Q3, FY17 (EQGP) :
Reports Q2 (Jun) earnings of $0.24 per share, $0.05 better than the Capital IQ Consensus of $0.19; revenues rose 11.8% year/year to $199 mln vs the $194.49 mln Capital IQ Consensus.
Guidance: FY17 Net Income $565 -- $595 mln; Adjusted EBITDA $680 -- $710; Distributable Cash Flow $605 -- $635
Q3 2017 Net Income $137 -- $147 mln; Adjusted EBITDA $163 -- $173
6:41 am BorgWarner beats by $0.07, beats on revs; guides Q3 EPS in-line, revs in-line; guides FY17 EPS above consensus, revs above consensus (BWA) :
Reports Q2 (Jun) earnings of $0.96 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $0.89; revenues rose 2.5% year/year to $2.39 bln vs the $2.27 bln Capital IQ Consensus.
Co issues in-line guidance for Q3, sees EPS of $0.84-0.87, excluding non-recurring items, vs. $0.84 Capital IQ Consensus Estimate; sees Q3 revs of $2.1 bln vs. $2.17 bln Capital IQ Consensus Estimate. Q3: Foreign currencies are expected to lower sales by approximately $36 million, or 1.7%. The divested Remy light vehicle aftermarket business contributed net sales of approximately $68 million in the third quarter 2016.
Co issues raised guidance for FY17, sees EPS of $3.65-3.70 from $3.50-3.60, excluding non-recurring items, vs. $3.58 Capital IQ Consensus Estimate; sees FY17 revs of $9.28-9.38 bln from $8.81-9.04 bln vs. $9.11 bln Capital IQ Consensus Estimate.
6:40 am Crescent Point Energy reports EPS in-line, revises guidance (CPG) :
Reports Q2 (Jun) earnings of CC$0.07 per share, excluding non-recurring items, in-line with the single analyst estimate of CC$0.07.
Crescent Point achieved average production of 175,615 boe/d, an increase of approximately five percent from second quarter 2016. This represents annualized growth of over 12 percent compared to third quarter 2016 when the Company first accelerated its capital program due to its new play development success.
Crescent Point is currently marketing or in negotiations to dispose of certain non-core assets with an aggregate value of approximately CC$180 million and expects to transact on the majority of these sales during the second half of 2017. The Company also plans to market an additional asset package of similar value later this year, with proceeds to be redeployed toward debt reduction or additional growth opportunities. During second quarter, Crescent Point completed its previously announced disposition of non-operated conventional assets in Manitoba for CC$93.2 million.
Outlook:
Crescent Point is increasing its 2017 average production guidance to 174,500 boe/d, up from 172,000 boe/d, based on strong operating results and better-than-expected spring break-up conditions. The Company's exit guidance remains at 183,000 boe/d as it is in the process of disposing additional non-core assets.
Total capital expenditures budgeted for 2017, excluding property and land acquisitions, is unchanged at CC$1.45 billion. Although pressure pumping and steel costs increased during second quarter, the overall impact to Crescent Point's budget remains in line with expectations. The Company is monitoring its cost assumptions, efficiency improvements and potential cost reductions for the second half of 2017 in light of the current volatile oil price environment.
6:39 am DST Systems misses by $0.02, beats on revs (DST) :
Reports Q2 (Jun) earnings of $0.76 per share, $0.02 worse than the Capital IQ Consensus of $0.78; revenues rose 68.0% year/year to $656.2 mln vs the $541.9 mln Capital IQ Consensus.
6:39 am Blueprint Medicines received written notice from Alexion of its decision to discontinue the collaboration following a strategic review of Alexion's (ALXN) business and research and development portfolio (BPMC) :
6:38 am Boston Scientific beats by $0.01, beats on revs; guides Q3 in-line; raises FY17 guidance (BSX) :
Reports Q2 (Jun) earnings of $0.32 per share, $0.01 better than the Capital IQ Consensus of $0.31; revenues rose 6.2% year/year to $2.26 bln vs the $2.21 bln Capital IQ Consensus; organic +6%. MedSurg: 11 percent reported, 12 percent operational, and 10 percent organic Cardiovascular: 5 percent reported and organic, and 6 percent operational Rhythm Management: 2 percent reported, 3 percent operational and organic
Co issues in-line guidance for Q3, sees EPS of $0.29-0.31, excluding non-recurring items, vs. $0.31 Capital IQ Consensus Estimate; sees Q3 revs of $2.18-2.21 bln vs. $2.19 bln Capital IQ Consensus Estimate.
Co issues guidance for FY17, sees EPS of $1.23-1.27 from $1.22-1.26, excluding non-recurring items, vs. $1.25 Capital IQ Consensus; raises FY17 revs to $8.89-8.99 bln from $8.80-8.90 bln vs. $8.87 bln Capital IQ Consensus Estimate.
6:38 am Alexion Pharma to conclude its partnership contract with Moderna; Alexion is discontinuing existing preclinical programs that fall outside of the company's complement franchise, including mRNA therapies, in order to align its portfolio with its redefined R&D strategy (ALXN) :
6:38 am Southwest Air beats by $0.04, reports revs in-line (LUV) :
Reports Q2 (Jun) earnings of $1.24 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $1.20; revenues rose 6.7% year/year to $5.74 bln vs the $5.73 bln Capital IQ Consensus.
The Company ended second quarter 2017 with 735 aircraft in its fleet.
This reflects the second quarter 2017 delivery of 13 new Boeing 737-800s and 5 pre-owned Boeing 737-700s, as well as the retirement of 10 Classic aircraft.
During the second quarter, the Company also added three pre-owned 737-700 aircraft to its fleet order book to be delivered this year for 2018 service. Subsequent to June 30, 2017, the Company added one additional pre-owned 737-700 aircraft to its fleet order book to be delivered this year for 2018 service.
With the addition of these four pre-owned 737-700 aircraft to its order book, the Company deferred its four remaining 737-800 options in 2018 and converted them to four Boeing 737 MAX 8 options, two in 2021 and two in 2022. As of July 25, 2017, there were 67 Classic aircraft remaining in the Company's fleet that it intends to retire by the end of third quarter 2017. Total aircraft, net of all Classic retirements, is expected to decline to 707 by year-end 2017 and grow to 750 aircraft by year-end 2018, as previously announced.
Outlook
Based on these trends and current bookings, the Company expects its third quarter 2017 year-over-year RASM growth to be approximately one percent, which includes an estimated year-over-year unfavorable impact from the transition to the new reservation system of approximately one point.
The Company currently does not expect a significant unfavorable impact from the transition to the new reservation system beyond third quarter 2017.
Third quarter 2017 year-over-year RASM comparisons also will be impacted by last July's technology outage and the timing of the July 4th holiday in 2017, which roughly offset on a unit basis. Mr. Kelly said, "Considering the complexities of implementing a new reservation system for a company of our size, as well as our significant industry outperformance last year, we are very pleased with our revenue performance, and our goal to grow annual 2017 unit revenues remains intact. We continue to expect the annual incremental benefits from the new reservation system capabilities to ramp up to an estimated $200 million in pretax profits in 2018.
Gary C. Kelly, Chairman of the Board and Chief Executive Officer, stated, "We are very pleased to report another terrific quarter. As expected, we produced positive unit revenues compared with the strong year-ago performance. We had several notable achievements during second quarter, but the headline was the deployment of our new reservation system on May 9th. It was an historic milestone, the largest technology project in our history, and perhaps, one of the largest ever in the airline industry. The implementation was virtually flawless, although a new system is always challenging for the users. I want to thank all of our People who were involved in the development and deployment. It was superb. And, I want to thank all of our Frontline Employees for their hard work in learning and using their new system. The operations since May 9th have been superb, also. Once again, our Employees showcased their unmatched Hospitality and delivered a reliable product-a truly impressive achievement considering the record number of flights, Customers, and bags. Congratulations to our People and our Shareholders on a strong financial performance, which generated $202 million in profitsharing and $476 million in Shareholder returns."
6:37 am Independence Contract Drilling reports EPS in-line, revs in-line (ICD) :
Reports Q2 (Jun) loss of $0.13 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of ($0.13); revenues rose 40.4% year/year to $21.29 mln vs the $21.24 mln Capital IQ Consensus.
In the second quarter of 2017, the Company's fleet operated at 93.9% utilization and recorded 1,111 revenue days compared to 91.7% utilization and 1,073 revenue days in the first quarter of 2017 and 65.6% utilization and 732 revenue days in the second quarter of 2016. There were no revenue days earned on a standby-without-crew basis in the second quarter of 2017, compared to 69 days in the first quarter of 2017 and 362.9 days in the second quarter of 2016.
All 14 of the Company's ShaleDriller rigs are contracted and out in the field, with the 14th rig scheduled to spud its first well by the end of July 2017 under a multi-year contract.
At June 30, 2017, the Company's backlog of revenues from contracts with original terms of six months or more was $70.7 million, compared to $42.5 million as of December 31, 2016. Approximately $40.7 million of this backlog is expected to be realized during the remainder of 2017.
As of June 30, 2017, the Company had drawn $39.0 million on its $85.0 millionrevolving credit facility and had net debt, excluding capital leases, of $33.5 million. The borrowing base under the Company's credit facility was $89.7 million as of June 30, 2017. Subsequent to June 30, 2017, the Company amended the terms of the credit facility to, among other things, extend the maturity until November 5, 2020.
6:37 am Spectrum Brands misses by $0.24, misses on revs (SPB) :
Reports Q3 (Jun) adj earnings of $1.71 per share, $0.24 worse than the Capital IQ Consensus of $1.95; revenues fell 4.2% year/year to $1.3 bln vs the $1.38 bln Capital IQ Consensus.
Adjusted EBITDA of $263.9 million in the third quarter of fiscal 2017 decreased 5.5 percent compared to $279.2 million in fiscal 2016. Excluding the negative impact of foreign exchange of $6.7 million and acquisition EBITDA of $2.6 million, organic adjusted EBITDA of $268.0 million decreased 4.0 percent versus the prior year.
Guidance: Spectrum Brands expects fiscal 2017 reported net sales to grow above category rates for most categories, along with an anticipated negative impact from foreign exchange of approximately 70 to 90 basis points. Fiscal 2017 adjusted free cash flow is projected to be approximately $575-$590 million compared to $535 million in fiscal 2016. Capital expenditures are expected to be in the range of $105 million to $115 million, including rollover spending from fiscal 2016.
6:37 am Blucora beats by $0.04, beats on revs; guides Q3 EPS in-line, revs above consensus; guides FY17 EPS in-line, revs above consensus (BCOR) :
Reports Q2 (Jun) earnings of $0.70 per share, $0.04 better than the Capital IQ Consensus of $0.66; revenues rose 15.9% year/year to $139.2 mln vs the $136.07 mln Capital IQ Consensus.
Co issues guidance for Q3, sees EPS of ($0.24)-($0.14) vs. ($0.16) Capital IQ Consensus Estimate; sees Q3 revs of $88.8-91.3 mln vs. $88.48 mln Capital IQ Consensus Estimate.
Co issues guidance for FY17, sees EPS of $1.25-1.45 vs. $1.38 Capital IQ Consensus Estimate; sees FY17 revs of $500.0-506.5 mln vs. $499.50 mln Capital IQ Consensus Estimate.
HD Vest achieved record levels in AUA of $41.4 billion and AUM of $11.6 billion
Grew TaxAct revenue and segment income by 16% for the six months ending June 30, 2017 vs. prior-year period
6:36 am Crescent Point Energy reports 2Q17 operating revsults; Q2 avg production +5% Y/Y, increases 2017 avg production guidance to 174,500 boe/d from 172,000 boe/d based on positive operating results (CPG) :
In the Uinta Basin, Crescent Point advanced its Castle Peak play with extended reach horizontals and increased tonnage per stage of completion. Initial production from each of the two programs is encouraging with 30-day rates upward of 1,000 boe/d. The Company's current one-mile Castle Peak horizontal type curve generates 30-day rates of 620 boe/d. Crescent Point also completed a one-mile horizontal well in the Wasatch zone late second quarter. This well is currently flowing at approximately 2,000 boe/d, with an initial 30-day rate of approximately 1,700 boe/d.
Total capital expenditures budgeted for 2017, excluding property and land acquisitions, is unchanged at $1.45 billion.
6:36 am Alexion Pharma beats by $0.30, beats on revs; raises FY17 EPS above consensus (ALXN) :
Reports Q2 (Jun) earnings of $1.56 per share, $0.30 better than the Capital IQ Consensus of $1.26; revenues rose 21.1% year/year to $912 mln vs the $846.15 mln Capital IQ Consensus.
Co raises guidance for FY17, sees EPS of $5.40-5.55 vs. $5.33 Capital IQ Consensus Estimate, compared to $5.10-5.30 prior
Co raises guidance for FY17 - sees revs of $3.45-3.53 bln vs. $3.47 bln Capital IQ Consensus Estimate, compared to $3.4-3.5 bln prior
6:35 am Spirit Airlines beats by $0.04, reports revs in-line (SAVE) :
Reports Q2 (Jun) earnings of $1.14 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $1.10; revenues rose 20.1% year/year to $701.68 mln vs the $702.29 mln Capital IQ Consensus.
Total revenue per available seat mile (:TRASM) for the second quarter 2017 increased 5.7 percent compared to the same period last year. During the second quarter 2017, the Company's results benefited from the calendar shift of Easter, as well as Company driven revenue initiatives and a strong underlying demand environment.
"While our cost performance for the second quarter was not satisfactory, we do not believe it materially changes our long-term cost outlook and are confident that we will continue to maintain, or grow, our relative cost advantage," said Ted Christie, Spirit's Executive Vice President and Chief Financial Officer.
6:35 am Verizon reports EPS in-line, beats on revs (VZ) :
Reports Q2 (Jun) earnings of $0.96 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.96; revenues rose 0.1% year/year to $30.55 bln vs the $29.84 bln Capital IQ Consensus. On a comparable basis, consolidated revenues declined 2.0%. EBITDA totaled $12.4 billion.
Wireless results
Building on momentum since the launch of Verizon Unlimited in mid-February, Verizon reported a net increase of 614,000 retail postpaid connections in second-quarter 2017. Net phone additions of 358,000 included 590,000 smartphones in the quarter, compared with 86,000 net phone additions, including 336,000 smartphones, in second-quarter 2016. Verizon's retail postpaid connections base grew 1.2% year over year to 109.1 million, and retail prepaid connections grew 1.4% to 5.4 million. Total retail postpaid churn was 0.94% in second-quarter 2017, consistent year over year despite increased churn in tablets. Retail postpaid phone churn was not only less than 0.90% for the ninth consecutive quarter, but it also established a new low in the LTE era at 0.70%.
Total revenues were $21.3 billion in second-quarter 2017, a decline of 1.9% compared with second-quarter 2016.
Reaffirms: Full-year 2017 consolidated revenues, on an organic basis, to be fairly consistent with 2016, with improvement in wireless service revenue and equipment revenue trends; also, full-year 2017 consolidated adjusted EPS trends to be similar to consolidated revenue trends; Consolidated capital spending for 2017 to be in the range of $16.8 billion to $17.5 billion; and The 2017 effective tax rate to be at the low end of the range of 34% to 36%, excluding impacts from potential tax reform.
6:34 am Intelsat beats by $0.23, reports revs in-line; reaffirms FY17 revs guidance (I) :
Reports Q2 (Jun) loss of $0.20 per share, $0.23 better than the two analyst estimate of ($0.43); revenues fell 1.6% year/year to $533.2 mln vs the $534.16 mln Capital IQ Consensus. Adjusted EBITDA increased 2 percent to $417.9 million for the three months ended June 30, 2017, or 78 percent of revenue, compared to $410.7 million, or 76 percent of revenue, for the same period in 2016.
Co reaffirms guidance for FY17, sees FY17 revs of $2.15-2.18 bln vs. $2.16 bln Capital IQ Consensus Estimate; Adjusted EBITDA: Intelsat forecasts Adjusted EBITDA performance for the full-year 2017 to be in a range of $1.640 billion to $1.670 billion.
6:34 am WEX beats by $0.01, beats on revs; guides Q3 EPS below consensus, revs in-line; guides FY17 EPS in-line, revs above consensus (WEX) :
Reports Q2 (Jun) earnings of $1.26 per share, $0.01 better than the Capital IQ Consensus of $1.25; revenues rose 29.9% year/year to $303.9 mln vs the $293.91 mln Capital IQ Consensus.
Co issues guidance for Q3, sees EPS of $1.35-1.42 vs. $1.43 Capital IQ Consensus Estimate; sees Q3 revs of $302-312 mln vs. $305.50 mln Capital IQ Consensus Estimate.
Co issues guidance for FY17, sees EPS of $5.15-5.35 vs. $5.33 Capital IQ Consensus Estimate; sees FY17 revs of $1.20-1.22 bln vs. $1.19 bln Capital IQ Consensus Estimate.
6:34 am Nielsen beats by $0.01, reports revs in-line; reaffirms FY17 EPS guidance, lowers revenue growth forecast (NLSN) :
Reports Q2 (Jun) GAAP earnings of $0.37 per share, $0.01 better than the Capital IQ GAAP Consensus of $0.36; revenues rose 3.0% year/year to $1.64 bln vs the $1.65 bln Capital IQ Consensus.
Co reaffirms guidance for FY17, sees GAAP EPS of $1.40-1.46 vs. $1.44 Capital IQ GAAP Consensus Estimate; lowers guidance for total revenue growth on a constant currency basis to ~4% (Prior 5-6%)
"Our revenue in the quarter reflects solid growth in Watch, robust growth in Buy emerging markets and the contribution from our recent acquisition of Gracenote. This was partially offset by continued softness in our U.S. Buy business which reflects the challenging operating environment for our large fast moving consumer goods clients. Our rigorous cost and commercial discipline in the quarter enabled us to deliver margin expansion, while also investing in our key growth initiatives,"
6:33 am Arch Coal reports Q2 (Jun) results, misses on revs (ARCH) :
Reports Q2 (Jun) earnings of $1.85 per share, may not be comparable to the Capital IQ Consensus of $2.69; revenues rose 30.8% year/year to $549.87 mln vs the $596.76 mln Capital IQ Consensus.
Company Outlook
Based on the company's current expectations regarding the outlook for metallurgical coal markets, Arch has raised its coking coal volume guidance for 2017. Arch now expects to sell between 6.9 million tons and 7.1 million tons of coking coal. At the midpoint of its volume guidance level, Arch is now more than 90-percent committed on coking coal sales for the full year, with more than 20 percent of that committed volume exposed to index-based pricing. At the midpoint of guidance, Arch's thermal sales are 95-percent committed for the full year 2017.
"While extreme volatility in global metallurgical markets delayed the timing of second quarter spot sales, Arch continued to generate strong free cash flow, execute its operational strategy and make progress on many fronts," said John W. Eaves, Arch's chief executive officer. "Since the last update, Arch returned nearly $60 million to shareholders through share repurchases and quarterly dividends; further streamlined its operational structure with the announced sale of the Lone Mountain complex and two other idled facilities; and capitalized on favorable dynamics in seaborne thermal markets. Looking ahead, we are confident in our strengthened annual guidance for coking coal sales, and we continue to execute on our strategic priorities and return capital to shareholders."
6:33 am ShoreTel to be acquired by Mitel Networks (MITL) in an all-cash transaction, at a price of $7.50/share (SHOR) :
Financial highlights of the transaction include:
Combined sales of $1.3 billion*
Increases Mitel's total recurring revenue to 39% of total revenue*
More than doubles Mitel's UCaaS revenue to $263 million*
Significant synergy opportunity targeted at $60M in annual run rate spend expected to be achieved over two years
Expected to be accretive to non-GAAP EPS in the first year
*based on trailing twelve months combined to March 31, 2017
Mitel intends to finance the consideration for the acquisition and associated transaction expenses using a combination of cash on hand from the combined business, drawings on its existing revolving credit facility and proceeds from a new fully underwritten $300 million term loan maturing in 2023.
The transaction is expected to be completed in the third quarter of 2017.
6:32 am Richmont Mines to provide an update on its strategic exploration drilling program currently underway at the cornerstone Island Gold Mine; exploration drilling has intersected high-grade, wide mineralization in the down plunge extension of the main Island Gold deposit with Hole MH8-4 intersecting 19.85 g/t gold over 8.4 metres (RIC) :
Hole MH8-4 intersected 19.85 g/t gold over 8.4 metres in the eastern portion of the down plunge extension of the deposit. The intersection is located approximately 1,300 metres below surface and includes 71.76 g/t gold over 0.5 metres, 141.43 g/t gold over 0.59 metres and 318.28 g/t gold over 0.25 metres.
Hole MH2A-12 intersected 11.67 g/t gold over 9.42 metres, including 548.1 g/t gold over 0.24 metres.
Hole MH2A-13 intersected 8.86 g/t gold over 6.39 metres at a depth of 1,350 metres.
6:31 am Nomura Holdings reports FY17 results (NMR) :
Co reported FY17 EPS of JPY 56.44 vs JPY 67.71 Capital IQ consensus; opearting revs JPY 437.2 bln vs JPY 585.4 bln last year (no comparable ests).
"In our Asset Management Division, net revenue for the year ended March 31, 2017 increased by 4.2% from the previous fiscal year to 99.4 billion. Non-interest expenses decreased by 2.8% to 57.1 billion. As a result, income before income taxes increased by 15.5% to 42.3 billion. In our investment trust business, in spite of cash outflow from money market funds, funds developed in response to regional financial institutions' demands and ETFs contributed to the increase in assets under management. In our investment advisory business, cash inflow from domestic public pensions continued."
6:31 am Eagle Materials reports EPS in-line, revs in-line (EXP) :
Reports Q1 (Jun) earnings of $1.17 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $1.17; revenues rose 23.1% year/year to $366.1 mln vs the $369.68 mln Capital IQ Consensus.
6:31 am Sphere 3D regains compliance w/ the Nasdaq's minimum bid price requirement (ANY) :
6:20 am Potash reports Q2 (Jun) results, beats on revs; reaffirms FY17 EPS guidance; expects mergers of equals with Agrium to close late in Q3 (POT) :
Reports Q2 (Jun) earnings of $0.24 per share, may not be comparable to the Capital IQ Consensus of $0.17; revenues rose 6.4% year/year to $1.12 bln vs the $0.98 bln Capital IQ Consensus.
Earnings of $0.24 per share includes a previously disclosed $0.08 per share income tax provision recovery
Co reaffirms guidance for FY17, sees EPS of $0.45-$0.65 vs. $0.60 Capital IQ Consensus Estimate.
EPS guidance includes merger-related costs now expected to be $0.06 per share.
Raised the bottom end of our guidance range for potash sales volumes (9.0-9.4 million tonnes) and increased the range for potash gross margin ($650-$850 million). Our estimates include the benefit of the Rocanville capacity audit results, which increased our Canpotex sales entitlement to approximately 55 percent for the second half of 2017.
In nitrogen, expect recent capacity additions to continue to pressure prices and alter trade flows, keeping margins below those of 2016. In phosphate, we anticipate that challenging market fundamentals will continue to impact prices and our profitability. Given these considerations, they have lowered the top end of our combined nitrogen and phosphate gross margin range and now estimate $150-$300 million in 2017.
Expects merger of equals with Agrium to close late in the third quarter of 2017.
"In the second quarter, we continued to benefit from stronger potash market conditions and our improved cost position in this nutrient," said PotashCorp President and Chief Executive Officer Jochen Tilk. "Robust potash demand -- especially in offshore markets, where Canpotex2 achieved its second highest first-half shipment total -- supported a constructive market and is expected to carry through the remainder of the year. We anticipate more subdued nitrogen and phosphate markets in the second half to offset strength in potash and, as a result, have maintained our full-year earnings guidance range.
6:18 am Carter Holdings beats by $0.09, beats on revs; guides Q3 EPS below consensus, revs below consensus; reaffirms FY17 EPS guidance, revs guidance (CRI) :
Reports Q2 (Jun) earnings of $0.79 per share, $0.09 better than the Capital IQ Consensus of $0.70; revenues rose 8.2% year/year to $692.1 mln vs the $681.08 mln Capital IQ Consensus.
Co issues downside guidance for Q3, sees EPS of $1.61 vs. $1.90 Capital IQ Consensus Estimate; sees Q3 revs of +5% to ~$946.5 mln vs. $960.01 mln Capital IQ Consensus Estimate.
Co reaffirms guidance for FY17, sees EPS of +8-10% to ~5.55-5.65 vs. $5.62 Capital IQ Consensus Estimate; sees FY17 revs of +4-6% to ~3.33-3.39 bln vs. $3.38 bln Capital IQ Consensus Estimate.
"Our growth was driven by our retail and international businesses, and the contribution from our Skip Hop brand which was acquired earlier this year. Given the strength of our fall and holiday product offerings, we're forecasting good growth in the second half and expect to achieve our growth objectives this year."
6:18 am INC Research Holdings reports EPS in-line, revs in-line (INCR) :
Reports Q2 (Jun) earnings of $0.64 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.64; revenues fell 0.3% year/year to $258.1 mln vs the $256.76 mln Capital IQ Consensus. Backlog grew by 20.1% to $2.29 billion as of June 30, 2017, compared to $1.91 billion as of June 30, 2016. Net new business awards grew 40.3% to $423.8 million for the three months ended June 30, 2017, representing a book-to-bill ratio of 1.6x, compared to $302.1 million for the three months ended June 30, 2016.
"We continue to see strong demand among small to mid-sized customers and are enhancing our competitive position with larger biopharma, resulting in a robust backlog for the fourth quarter of this year and the full year 2018. This momentum is continuing into the third quarter, with INC delivering two awards from a large Chinese pharma company totaling $84 million, our largest-ever awards in China." He continued, "Accordingly, we are cautiously optimistic that we are on the path to returning the Company to double-digit organic revenue growth in 2018. We believe our continued strong awards demonstrate our customers' confidence in our strategy and our ability to execute through the integration with inVentiv Health."
6:16 am Gentherm misses by $0.08, reports revs in-line; sees full year revenue growth at low end of range (THRM) :
Reports Q2 (Jun) earnings of $0.53 per share, $0.08 worse than the Capital IQ Consensus of $0.61; revenues rose 4.6% year/year to $243.4 mln vs the $244.48 mln Capital IQ Consensus.
Expects that full year 2017 revenue growth is likely to be at the lower end of the previously stated range of between 5% and 10%. Current consensus calls for 7.9% revenue growth.
"The second quarter saw revenues for our automotive products grow by nearly 2%. This growth came despite the automotive industry, our most important end market, experiencing significant weakness. Global automotive production volumes declined by nearly 0.30% in the second quarter and, more importantly, production in North America and Europe were down by more than 3% on a combined basis," said President and CEO Daniel R. Coker. "This illustrates the strength in our underlying products but still does not reflect the coming benefits from some of our exciting new products including our advanced battery thermal management product, which will begin shipping later this year, and our innovative electronic controlling devices which are expected in early 2019," Coker added.
6:13 am Wesco beats by $0.04, reports revs in-line (WCC) :
Reports Q2 (Jun) earnings of $1.02 per share, $0.04 better than the Capital IQ Consensus of $0.98; revenues fell 0.1% year/year to $1.91 bln vs the $1.91 bln Capital IQ Consensus.
Organic sales for the second quarter of 2017 grew by 1.0% as foreign exchange rates negatively impacted net sales by 1.1%. Sequentially, net sales increased
7.7% and organic sales increased 8.0%.
6:13 am Dunkin Brands beats by $0.02, misses on revs; reaffirms FY17 EPS guidance; cuts Baskin-Robbins comp guidance (DNKN) :
Reports Q2 (Jun) earnings of $0.64 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.62; revenues rose 1.0% year/year to $218.5 mln vs the $220.77 mln Capital IQ Consensus.
Dunkin' Donuts U.S. comparable store sales growth of 0.8% Baskin-Robbins U.S. comparable store sales decline of 0.9%
Co reaffirms guidance for FY17, sees EPS of $2.40-2.43 vs. $2.43 Capital IQ Consensus Estimate. The Company continues to expect low single digit comparable store sales growth for Dunkin' Donuts U.S. The Company now expects slightly negative comparable store sales for Baskin-Robbins U.S. Previously it expected low single digit growth. The Company now expects Dunkin' Donuts U.S. franchisees to add ~330 to 350 net new restaurants. Previously it expected ~385 net new restaurants for Dunkin' Donuts U.S. The Company continues to expect low-to-mid single digit revenue growth on both a 52- and 53-week basis.
6:12 am Huntsman beats by $0.20, reports revs in-line; agreement to merge with Clariant remains on track (HUN) :
Reports Q2 (Jun) earnings of $0.85 per share, excluding non-recurring items, $0.20 better than the Capital IQ Consensus of $0.65; revenues rose 2.8% year/year to $2.62 bln vs the $2.64 bln Capital IQ Consensus.
Definitive agreement to merge with Clariant remains on track. We are confident in our ability to achieve in excess of $400 million in annual cost synergies with another $25 million in annual tax savings, creating in excess of $3.5 billion of value for shareholders
Peter R. Huntsman, our President and CEO, commented: "I am very pleased with the progress made in the second quarter. Our businesses continue to benefit from solid underlying fundamentals, enhanced free cash flow generation, and our downstream strategy. We are on pace to achieve earnings growth in each of our business segments in 2017. I see continued room for further improvement. Our downstream differentiated businesses continue to do well with MDI urethanes delivering a strong performance. Performance Products continues to recover off of a difficult 2016 and for the first time since 2015 showed growth versus the prior year. We realized $251 million of free cash flow in the second quarter and $333 million year to date. We target generating in excess of $150 million of free cash flow in the second half, excluding Pigments and Additives. When combining what we have achieved year to date with the remaining year expectation which excludes Pigments and Additives, we are on track to exceed the previously communicated 2017 full year free cash flow target of greater than $450 million. We have repaid $265 million of debt year to date, including an early repayment of $100 million made yesterday.
6:12 am West Pharm beats by $0.01, misses on revs; lowers FY17 outlook (WST) :
Reports Q2 (Jun) earnings of $0.66 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.65; revenues rose 2.5% year/year to $397.6 mln vs the $406 mln Capital IQ Consensus.
Gross profit margin was 31.4%, a decrease of 300 basis points. Proprietary Products segment gross profit margin was 35.4%, a decrease of 310 basis points due to weaker Generics and Biologics market unit sales growth and to higher labor costs and unabsorbed overhead. Contract-Manufactured Products segment gross profit margin was 16.8%, a decrease of 80 basis points due to increased labor and overhead costs, partially offset by sales price increases and production efficiencies.
Co lowers guidance for FY17, sees EPS of $2.66-2.73 (Prior $2.66-2.78), excluding non-recurring items, vs. $2.67 Capital IQ Consensus Estimate; sees FY17 revs of $1.585-1.6 bln (Prior $1.585-1.61 bln) vs. $1.61 bln Capital IQ Consensus Estimate.
6:12 am Banco Bradesco reports Q2 results (BBD) :
Adjusted Net Income for the first semester of 2017 stood at R$9.352 billion (a 13.0% increase compared to the Adjusted Net Income of R$8.274 billion recorded in the first semester of 2016), corresponding to earnings per share of R$2.99 and return on Average Adjusted Shareholders' Equity of 18.2%.
The Efficiency Ratio (:ER) in June 2017 was 41.5% (37.4% in June 2016), while the "risk-adjusted" efficiency ratio stood at 53.7% (48.1% in June 2016).
Co sees FY17 expanded loan portfolio change of (5%) - (1). Assets under Management stood at R$1.918 trillion, a 20.7% increase over June 2016.
6:12 am FirstCash beats by $0.06, beats on revs; guides FY17 EPS in-line (FCFS) :
Reports Q2 (Jun) earnings of $0.52 per share, $0.06 better than the Capital IQ Consensus of $0.46; revenues rose 128.9% year/year to $416.6 mln vs the $410.65 mln Capital IQ Consensus.
Co issues in-line guidance for FY17, sees EPS of $2.60-2.70 vs. $2.61 Capital IQ Consensus Estimate.
"We posted stronger than expected second quarter results that continue to be driven by exceptional revenue growth in Latin America, an improved U.S. operating environment and further realization of merger synergies. Same-store Latin America core pawn revenue, which is composed of pawn lending fees and retail merchandise sales, increased 11%, or 14% on a constant currency basis, compared to the prior year quarter while the legacy First Cash U.S. business continued to improve with core same-store revenues increasing 1% driven by a 5% increase in same-store pawn fees."
6:11 am Patterson-UTI beats by $0.09, beats on revs (PTEN) :
Reports Q2 (Jun) loss of $0.21 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus of ($0.30); revenues rose 198.5% year/year to $579 mln vs the $556.47 mln Capital IQ Consensus.
The financial results exclude pretax merger and integration expenses and impairment charges totaling $80.2 million.
6:09 am ExlService beats by $0.10, beats on revs; guides FY17 EPS above consensus, revs above consensus (EXLS) :
Reports Q2 (Jun) earnings of $0.70 per share, $0.10 better than the Capital IQ Consensus of $0.60; revenues rose 10.9% year/year to $189.1 mln vs the $185.65 mln Capital IQ Consensus.
Co issues upside guidance for FY17, sees EPS of $2.54-2.64 vs. $2.57 Capital IQ Consensus Estimate; sees FY17 revs of $748-762 mln vs. $753.02 mln Capital IQ Consensus Estimate.
"EXL is becoming the strategic digital transformation partner of choice. Our clients use our next-generation operations management, robotics, advanced analytics and domain expertise to transform their business models. Our pipeline across our portfolio of solutions is strong as evidenced by 16 new client wins this quarter."
6:09 am Cenovus Energy reports Q2 (Jun) results (CVE) :
Reports Q2 (Jun) earnings of CAD$0.36 per share, may not be comparable to the Capital IQ Consensus of (CAD$0.00).
Operating margin was CAD$778 million in the second quarter, a 44% increase from the same period in 2016. Upstream operating margin increased largely due to higher liquids and natural gas sales volumes as a result of the acquisition, as well as increased liquids and natural gas sales prices. This increase was partially offset by higher transportation and blending expenses, and the increase in operating expenses primarily related to the acquisition, higher fuel costs and the planned turnaround at Foster Creek. Higher royalties and a decrease in risk management gains compared with a year ago also impacted upstream operating margin.
Cenovus continues to target between CAD$4 billion and CAD $5 billion in announced asset sale agreements during 2017.
6:09 am Entegris beats by $0.04, beats on revs; guides Q3 EPS above consensus, revs above consensus (ENTG) :
Reports Q2 (Jun) earnings of $0.34 per share, $0.04 better than the Capital IQ Consensus of $0.30; revenues rose 8.5% year/year to $329 mln vs the $324.51 mln Capital IQ Consensus.
Co issues upside guidance for Q3, sees EPS of $0.30-0.35 vs. $0.30 Capital IQ Consensus Estimate; sees Q3 revs of $325-340 mln vs. $323.69 mln Capital IQ Consensus Estimate.
6:09 am Evercore beats by $0.24, beats on revs (EVR) :
Reports Q2 (Jun) earnings of $1.06 per share, excluding non-recurring items, $0.24 better than the Capital IQ Consensus of $0.82; revenues rose 7.0% year/year to $372.7 mln vs the $328.81 mln Capital IQ Consensus.
"Our Advisory business continues to drive our results as we advise on M&A, restructuring and capital markets transactions, both large and small, across multiple sectors and geographies. Our broad capabilities, including advice on activist matters and capital raising in the equity, debt and private capital markets, continue to differentiate us from our competitors and contribute to our growth."
6:09 am ICON plc beats by $0.04, reports revs in-line; guides FY17 EPS above consensus, revs above consensus (ICLR) :
Reports Q2 (Jun) earnings of $1.34 per share, $0.04 better than the Capital IQ Consensus of $1.30; revenues rose 5.0% year/year to $431 mln vs the $430.68 mln Capital IQ Consensus.
Co issues upside guidance for FY17, sees EPS of $5.18-5.36 vs. $5.18 Capital IQ Consensus Estimate; sees FY17 revs of $1.74-1.77 bln vs. $1.72 bln Capital IQ Consensus Estimate.
"During the quarter we delivered a record $563 million of new business, representing a book to bill of 1.31. Supported by a strong trailing twelve month book to bill excluding our top customer of 1.42x, our backlog grew to over $4.4 billion, an increase of 10% year over year. In Quarter 2 revenues grew 5% over the same period in 2016, with our top customer concentration reducing to less than 20% from 28% last year and revenue growth excluding this customer increasing by nearly 17%. In addition, we expanded our market leading service offering in the fast growing late phase market by completing the acquisition of Mapi Group. This acquisition, along with our revised tax rate, means we are increasing both our full year EPS guidance to a range of $5.18 - $5.38 and our revenue guidance to a range of $1.740 billion - $1.770 billion."
6:09 am ACI Worldwide misses by $0.17, beats on revs; reaffirms FY17 revs guidance (ACIW) :
Reports Q2 (Jun) loss of $0.25 per share, $0.17 worse than the Capital IQ Consensus of ($0.08); revenues rose 9.4% year/year to $240.6 mln vs the $225.87 mln Capital IQ Consensus.
Co reaffirms guidance for FY17, sees FY17 revs of $1.0-1.025 bln vs. $1.02 bln Capital IQ Consensus Estimate.
Adjusted EBITDA in Q2 grew to $44 million, an increase of 105%, from $21 million in Q2 2016. New bookings were $137 million, which was up 11% compared to Q2 2016.
Total bookings were $206 million, up 6% from last year's quarter.
Guidance Details: "Adjusted EBITDA is expected to be in a range of $250 million to $255 million, which excludes approximately $14 million in one-time integration related expenses for PAY.ON, the CFS divestiture, and data center and facilities consolidation, as well as the legal judgment. We expect to generate between $210 million and $225 million of revenue in the third quarter. We expect full year 2017 new bookings to grow in the upper single digit range."
6:07 am Cabot Micro misses by $0.03, beats on revs (CCMP) :
Reports Q3 (Jun) earnings of $0.81 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus of $0.84; revenues rose 18.4% year/year to $128 mln vs the $122.17 mln Capital IQ Consensus.
GMs - Non-GAAP gross profit margin was 49.8%
6:07 am Safeguard Sci misses by $0.32 (SFE) :
Reports Q2 (Jun) loss of $1.43 per share, $0.32 worse than the single analyst estimate of ($1.11).
"Safeguard's portfolio of growth-stage, technology-driven businesses in healthcare, financial services and digital media is on track to increase aggregate year-over-year revenue between 15% and 22% for 2017," said Stephen T. Zarrilli, Safeguard President and CEO. "We remain highly focused on achieving a number of exit transactions by year-end 2017 to drive shareholder value."
Aggregate partner company revenue for 2017 is projected to be between $370 million and $390 million, which includes revenue for all partner companies in which Safeguard had an interest at January 1, 2017, except Nexxt, Inc. (fka Beyond.com), which was sold during the first quarter of 2017. Aggregate revenue for the same partner companies was $321 million for 2016 and $305 million for 2015.
6:06 am New Home beats by $0.02, beats on revs; updates guidance (NWHM) :
Reports Q2 (Jun) earnings of $0.07 per share, $0.02 better than the two analyst estimate of $0.05; revenues rose 32.3% year/year to $144.1 mln vs the $115.37 mln two analyst estimate.
Home sales revenue of $96.9 million, a 23% increase
Net new home orders up 53%
Backlog dollar value up 22% to $339.4 million, a record quarter-end value
Guidance: The Company updated its full year guidance for 2017 as follows:
Home sales revenue of $540 - $570 million
Fee building revenue of $145 - $165 million
Income from unconsolidated joint ventures of $2 - $3 million
Wholly owned active year-end community count of 17
Joint venture active year-end community count of 9
6:06 am Praxair beats by $0.04, beats on revs; guides Q3 EPS just below consensus; raises/narrows FY17 EPS in-line (PX) :
Reports Q2 (Jun) earnings of $1.46 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $1.42; revenues rose 6.3% year/year to $2.83 bln vs the $2.8 bln Capital IQ Consensus. Excluding cost pass-through, sales grew 4%, driven by higher volumes in North America, Europe and Asia, including new project start-ups, and price attainment. Sales growth was primarily led by electronics, chemicals, metals, energy and food and beverage end-markets; adjusted operating profit was $619 million, 5% above the prior-year quarter.
Co issues downside guidance for Q3, sees EPS of $1.40-1.46, excluding non-recurring items, vs. $1.47 Capital IQ Consensus Estimate.
Co issues in-line guidance for FY17, sees EPS of $5.63-5.75 from $5.55-5.80, excluding non-recurring items, vs. $5.73 Capital IQ Consensus Estimate.
6:06 am Bemis misses by $0.08, misses on revs; lowers FY17 EPS guidance (BMS) :
Reports Q2 (Jun) earnings of $0.48 per share, excluding non-recurring items, $0.08 worse than the Capital IQ Consensus of $0.56; revenues fell 0.9% year/year to $1.01 bln vs the $1.03 bln Capital IQ Consensus.
Co lowers guidance for FY17, sees EPS of $2.35-2.50 (Prior $2.50-2.60), excluding non-recurring items, vs. $2.55 Capital IQ Consensus Estimate.
"Our guidance reduction is a result of the impact of the sharp contraction and tough economic environment in Brazil. As consumers and retailers scale back, our volumes and mix of business suffer. While we are working to take costs out of our business, the unfavorable headwinds in Brazil will pressure our earnings during the balance of the year."
Management expects full year 2017 cash from operations to be in the range of $400 to $425 million, primarily a result of revised earnings expectations. This guidance includes the planned impact from initial actions related to the 2017 Restructuring Plan, which is less than $5 million of cash expenditure during 2017.
Restructuring Update:
During June, the Company announced initial details on its restructuring and cost savings plan to improve profitability primarily in its U.S. and Latin American businesses by reducing its manufacturing and administrative cost structure. This plan targets an annual savings run rate of $55 to $60 million, with savings starting in 2017 and fully realized during 2019. Estimated total costs to implement the plan are $100 to $120 million.
As part of this plan, the Company announced that it will close two manufacturing facilities and reduce approximately 300 administrative positions for a combined savings of approximately $30 million, when fully implemented.
The Company continues to evaluate opportunities that build toward its cost savings target of $55 to $60 million and plans to provide final details, including total cash expenditures associated with the cost savings plan, when it releases its third quarter earnings.
6:05 am KKR beats by $0.15 (KKR) :
Reports Q2 (Jun) earnings of $0.81 per share, $0.15 better than the Capital IQ Consensus of $0.66.
Book value was $11.0 billion as of June 30, 2017 or $13.50 per outstanding adjusted unit
As of June 30, 2017, Assets Under Management and Fee Paying Assets Under Management were $148 billion and $113 billion respectively, up 13% and 19%, respectively, compared to June 30, 2016
KKR's regular distribution per common unit of $0.17 was declared for the quarter ended June 30, 2017
6:05 am ICON plc has acquired the Mapi Group, a Patient-Centered Health Outcomes Research and Commercialisation company; terms not disclosed (ICLR) : "The late phase CRO market continues to grow as our customers face greater scrutiny from regulators and reimbursement bodies around real-world evidence of product value and safety," commented Dr. Steve Cutler, Chief Executive Officer, ICON plc. "The acquisition of Mapi extends the breadth and depth of ICON's late phase capabilities, creating an industry leading provider of post-approval research, spanning evidence generation, strategic regulatory services, scientific communications and commercial strategy."
6:04 am Xcel Energy beats by $0.03, reports revs in-line; reaffirms FY17 EPS guidance (XEL) :
Reports Q2 (Jun) earnings of $0.45 per share, $0.03 better than the Capital IQ Consensus of $0.42; revenues rose 5.8% year/year to $2.64 bln vs the $2.63 bln Capital IQ Consensus.
Co reaffirms guidance for FY17, sees EPS of $2.25-2.35 vs. $2.31 Capital IQ Consensus Estimate.
Earnings for the second quarter of 2017 increased due to higher electric and natural gas margins to recover infrastructure investments, along with a lower effective tax rate and lower operating and maintenance expenses, partially offset by higher depreciation.
6:04 am Comcast beats by $0.03, beats on revs (CMCSA) :
Reports Q2 (Jun) earnings of $0.52 per share, $0.03 better than the Capital IQ Consensus of $0.49; revenues rose 9.8% year/year to $21.16 bln vs the $20.85 bln Capital IQ Consensus.
Consolidated Adjusted EBITDA increased 10.0% to $7.1 billion.
Cable Communications 2nd Quarter 2017 Highlights:
Cable Communications Revenue Increased 5.5% and Adjusted EBITDA Increased 5.4%; High-speed Internet revenue increased 9.2%, driven by an increase in the number of residential high-speed Internet customers and rate adjustments. Video revenue increased 3.9%, reflecting rate adjustments and an increase in the number of customers subscribing to additional services. Business services revenue increased 12.6%, primarily due to increases in the number of customers receiving our small and medium-sized business services offerings. Advertising revenue decreased 2.1%, reflecting a decrease in political advertising revenue and softness in core linear advertising across several categories, partially offset by growth in interactive advertising.
Customer Relationships Increased by 114,000; Total Revenue per Customer Relationship Increased 2.2%
High-Speed Internet Residential Revenue Increased 9.2%; Total Customers Increased by 175,000
Video Residential Revenue Increased 3.9% and 55% of Residential Video Customers Now Have X1; Total Customer Net Losses were 34,000
Business Services Revenue Increased 12.6%, Over $6.0 Billion in Annualized Revenue
NBCUniversal 2nd Quarter 2017 Highlights:
NBCUniversal Revenue Increased 17.3% and Adjusted EBITDA Increased 22.6%
Theme Parks Revenue Increased 15.6% and Adjusted EBITDA Increased 17.3%
Filmed Entertainment Revenue Increased 59.6% and Adjusted EBITDA Increased $229 Million to $285 Million, Driven by Strong Box Office Performance and Home Entertainment
Cable Networks and Broadcast Television Adjusted EBITDA Increased 11.7% and 5.5%, Respectively, Driven by Increases in Affiliate and Retransmission Revenue
6:04 am Helmerich & Payne beats by $0.05, beats on revs (HP) :
Reports Q3 (Jun) loss of $0.25 per share, $0.05 better than the Capital IQ Consensus of ($0.30), excluding $0.04 in after tax income, revenues rose 36.0% year/year to $498.6 mln vs the $452.42 mln Capital IQ Consensus.
U.S. Land Operations: Quarterly revenue days expected to increase by approximately 3% to 5% sequentially. Average rig revenue per day expected to be slightly over $21,000 (excluding any impact from early termination revenue). Average rig expense per day expected to be roughly $13,700.
"Additional demand for super-spec FlexRigs remains in the market even in a mid-$40's oil price environment and we are responding with upgrades to our existing AC fleet. H&P is perhaps the only contractor with the right AC rig fleet capacity to grow substantially in a manner that avoids the large investment in new rigs. Despite the oil price uncertainty and the choppiness that it tends to create in the market, H&P is successfully growing market share and continuing to build its brand."
6:03 am United Therapeutics beats by $0.53, beats on revs (UTHR) :
Reports Q2 (Jun) earnings of $4.37 per share, excluding non-recurring items, $0.53 better than the Capital IQ Consensus of $3.84; revenues rose 7.8% year/year to $444.6 mln vs the $391.53 mln Capital IQ Consensus.
"We continue to believe that Orenitram is well-positioned given the large and growing number of pulmonary arterial hypertension (PAH) patients in need of a true prostacyclin analogue therapy following their use of other oral therapies, and we think we are beginning to see the early signs of this transition reflected in Orenitram's 21% growth in second quarter net revenues as compared to the second quarter of 2016. We are also advancing a growing number of pipeline priorities such as our new chemical entity esuberaprost, which has fully enrolled its phase III BEAT study, our phase III studies of new indications related to pulmonary fibrosis and heart failure, and our new organ manufacturing technologies, since lung transplantation is currently the only curative treatment for PAH."
6:03 am Acorda Therapeutics misses by $0.14, reports revs in-line; reiterates AMPYRA 2017 rev guidance (ACOR) :
Reports Q2 (Jun) earnings of $0.29 per share, $0.14 worse than the Capital IQ Consensus of $0.43; revenues rose 9.3% year/year to $139.4 mln vs the $139.81 mln Capital IQ Consensus.
NDA submitted for INBRIJA (levodopa inhalation powder)
Tozadenant Phase 3 data expected Q1 2018
Guidance:
The Company reiterates AMPYRA 2017 net revenue of $535-$545 million.
R&D expenses for the full year 2017 are expected to be $160-$170 million.
SG&A expenses for the full year 2017 are expected to be $170-$180 million.
The Company expects to be cash flow positive in 2017, with a projected year-end cash balance in excess of $200 million.
6:01 am Proto Labs beats by $0.01, beats on revs (PRLB) :
Reports Q2 (Jun) earnings of $0.49 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.48; revenues rose 9.4% year/year to $82.04 mln vs the $80.49 mln Capital IQ Consensus.
The number of unique product developers and engineers served totaled 16,174 in the second quarter of 2017, an increase of 18.8 percent over the second quarter of 2016.
Gross margin was 56.5 percent of revenue for the second quarter of 2017 compared with 56.4 percent for the second quarter of 2016.
6:01 am Capricor Therapeutics received minutes of the meeting held recently between the FDA and Capricor to discuss the development of intravenous CAP-1002 (allogeneic cardiosphere-derived cells) for the treatment of Duchenne muscular dystrophy (CAPR) :
The minutes received show:
the FDA's willingness to accept Capricor's proposal to use the Performance of the Upper Limb (:PUL), an outcomes instrument that was specifically designed to assess upper limb function in ambulant and non-ambulant patients with DMD, as the basis for the primary efficacy endpoint for clinical studies intended to provide substantial evidence of effectiveness of CAP-1002 in support of a Biologics License Application (:BLA); and,
the sufficiency of the existing nonclinical safety and efficacy database to support submission of an Investigational New Drug application (IND) to clinically evaluate repeat intravenous administration of CAP-1002.
CAP-1002 was generally safe and well-tolerated over the initial six-month follow-up period.
CAP-1002 demonstrated statistically-significant improvement compared to usual care control in certain measures of upper limb function as assessed by the PUL, as well as in certain cardiac functional measures.
5:57 am Boise Cascade misses by $0.02, reports revs in-line; updated outlook provided (BCC) :
Reports Q2 (Jun) earnings of $0.57 per share, $0.02 worse than the Capital IQ Consensus of $0.59; revenues rose 9.1% year/year to $1.14 bln vs the $1.13 bln Capital IQ Consensus.
"Distribution enjoyed another strong quarter, with solid volume growth across product lines and excellent execution during a volatile commodity price environment. Wood Products results were slightly lower than the prior year quarter, as plywood pricing improvements were offset by lower EWP price realizations and input cost pressures. However, I am optimistic for the second half of the year as we make further progress on our operational improvement opportunities and see the impact of our EWP price increase," commented Tom Corrick, CEO. "The tone in the marketplace is positive and we are seeing renewed strength in commodity prices as we begin the third quarter."
Outlook:
"As in recent years, we expect to continue to experience modest demand growth for the products we manufacture and distribute in 2017. As of July 2017, the Blue Chip consensus forecast for 2017 reflects 1.23 million total U.S. housing starts, a 5% expected increase from 2016 levels. We expect to manage our production levels to our sales demand, which will likely result in operating some of our facilities below their capacity as we did in 2016. We also expect plywood sales volumes to be below prior year levels as we shift more veneer away from plywood in support of our EWP growth. Future commodity product pricing could be volatile in response to industry operating rates, net import and export activity, the North American softwood lumber trade dispute, inventory levels in our distribution channels, and seasonal demand patterns. We expect sequential improvement in EWP net price realizations in the second half of 2017."
5:57 am Christian Dior reports H1 results -- LVMH (LVMUY) in late April offered to purchase Christian Dior share at 260 per share (CHDRY) :
Co reported H1 net profit of +27% YoY to EUR 2.377 bln; revs +15% YoY to EUR 20.744 bln
The Group share of net profit was 0.9 billion euros.
Cash from operations before changes in working capital was 4.7 billion euros, up 24%.
Free cash flow before financial investments, transactions relating to equity and financing activities was 1.2 billion euros.
Outlook: "Despite the context of geopolitical and currency uncertainties, the Christian Dior group will continue to pursue gains in market share thanks to the numerous product launches planned before the end of the year and its geographic expansion in promising markets, while continuing to manage costs."
5:57 am Shanghai...+0.06% (FXI) :
5:56 am S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: +26.00. :
5:56 am European Markets : FTSE...7452.24...-0.10...0.00. DAX...12237.69...-67.40...-0.60%.
5:56 am Asian Markets : Nikkei...20080...+29.50...+0.20%. Hang Seng...27131...+190.20...+0.70%.
5:53 am Allianz SE shares higher by 2% overseas following Q2 results (AZSEY) :
Co reported Q2 operating profit of +23% YoY to EUR 2.9 bln; Total revenues rose 2.0% to EUR 29.994 bln
Performance in all business segments improved in the second quarter of 2017. In the Property and Casualty insurance segment, operating profit rose 28.0 percent to 1.4 (1.1) billion euros in the second quarter of 2017. Total revenues in the quarter edged up 0.6 percent to 11.685 (11.611) billion euros. The combined ratio improved to 93.7 (96.4) percent. Claims from natural catastrophes amounted approximately to 1.0 percent after 4.4 percent in the second quarter last year. The run-off ratio fell to 3.8 percent from 6.5 percent one year ago, while the underlying loss ratio improved by 1.7 percentage points.
Guidance: For the full year, Allianz now expects to arrive near the upper end of its operating profit target range of 10.8 billion euros, plus or minus 500 million euros, barring unforeseen events, crises or natural catastrophes.
5:42 am Chart Industries beats by $0.02, beats on revs; narrows FY17 EPS outlook, reaffirms FY17 revs guidance (GTLS) :
Reports Q2 (Jun) earnings of $0.21 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.19; revenues fell 3.6% year/year to $238.21 mln vs the $225.76 mln Capital IQ Consensus.
Gross profit for the second quarter of 2017 was $63.2 million, or 26.5% of sales, which was unfavorably impacted by $2 million of restructuring costs. Gross profit for the first quarter of 2017 was $55.7 million, or 27.3% of sales, inclusive of $2.5 million of restructuring costs. The sequential decline in margin percent was driven by the recognition of a low margin order in E&C, partially offset by the increase in BioMedical gross margins from 32.7% to 37.2% resulting from the first full quarter of benefits from the Buffalo respiratory facility consolidation. The decline from the second quarter of 2016 gross margin of $87.0 million was driven by the significant short lead-time replacement equipment orders and contract expiration fees in E&C in the second quarter of 2016.
Co issues guidance for FY17, sees EPS of $0.65-0.80 (Prior $0.60-1.00), excluding non-recurring items, vs. $0.75 Capital IQ Consensus Estimate; sees FY17 revs of $875-925 mln vs. $897.84 mln Capital IQ Consensus Estimate. Guidance does not include the Hudson acquisition
5:39 am Allegion beats by $0.11, beats on revs; raises FY17 EPS, revs guidance (ALLE) :
Reports Q2 (Jun) earnings of $1.11 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus of $1.00; revenues rose 7.2% year/year to $627 mln vs the $613.37 mln Capital IQ Consensus. Reported revenues reflect solid organic growth and contribution from acquisitions that were partially offset by foreign currency.
Second-quarter 2017 operating margin was 21.4 percent, compared with 21.3 percent in 2016. The adjusted operating margin in second-quarter 2017 was 21.7 percent, compared with 21.5 percent in 2016. The 20-basis-point improvement in adjusted operating margin was driven by strong price performance, volume leverage and productivity, which more than offset unfavorable product mix, increased investments and inflation.
Co raises guidance for FY17, sees EPS of $3.65-3.80 (Prior $3.60-3.75), excluding non-recurring items, vs. $3.72 Capital IQ Consensus Estimate; sees FY17 revs of ~$2.38-2.41 bln (+6.5-7.5%) (Prior +5.5-6.5%) vs. $2.39 bln Capital IQ Consensus Estimate.
5:19 am On The Wires (:WIRES) :
AstraZeneca (AZN) announced that the Phase III FLAURA trial showed a statistically-significant and clinically-meaningful progression-free survival (PFS) benefit with Tagrisso (osimertinib) compared to current 1st-line standard-of-care treatment (erlotinib or gefitinib) in previously-untreated patients with locally-advanced or metastatic epidermal growth factor receptor mutation-positive (EGFRm) non-small cell lung cancer (:NSCLC).
Proteros biostructures GmbH announced that the company has entered into a collaboration with Janssen Biotech, Inc., one of the Janssen Pharmaceutical Companies of Johnson & Johnson (JNJ), on a sub-class of epigenetic targets. The new collaboration agreement is focused on the discovery of novel lead compounds against several epigenetic targets for various cancer indications. Under the agreement, Janssen gains access to Proteros' proprietary Nucleosomal Epigenetic Assay Technology (:NEATTM) and discovery platform aimed at technically complex targets to identify quality lead compounds. Janssen has the option to license the lead compounds for further development and commercialization or the parties may jointly further develop and partner.
Complix, a biopharmaceutical company developing a pipeline of transformative protein therapeutics, called Alphabodies, for the treatment of cancer and severe autoimmune diseases, announced today that MSD (also known as Merck & Co. (MRK)), through a subsidiary, has exercised its option for a second cancer target program, which triggers an option fee payment to Complix.
Changyou.com (CYOU) announced that the special committee of the Company's board of directors has retained Duff & Phelps as its financial advisor and Skadden, Arps, Slate, Meagher & Flom as its United States legal counsel in connection with its review and evaluation of the previously-announced non-binding proposal that the board of directors of the Company received on May 22, 2017 from Dr. Charles Zhang, the Chairman of the Board, for the acquisition of all outstanding shares in the Company, including shares represented by American depositary shares, by an acquisition vehicle to be formed by Dr. Zhang.
W. R. Grace & Co. (GRA) has contracted to license its UNIPOL PP Process Technology to Canada Kuwait Petrochemical Corporation, a 50/50 joint venture between Pembina Pipeline Corporation (PBA) of Canada and Petrochemical Industries Company K.S.C. of Kuwait.
5:17 am W.R. Grace beats by $0.04, beats on revs; reaffirms FY17 EPS, revs guidance (GRA) :
Reports Q2 (Jun) earnings of $0.84 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $0.80; revenues rose 10.0% year/year to $429.5 mln vs the $407.72 mln Capital IQ Consensus.
Income from continuing operations was $86.8 million for the six months, an increase of 79.0% compared with $48.5 million for the prior-year period. Adjusted EBIT of $190.8 million increased 6.8% from the prior-year period. Adjusted EBIT margin of 23.1% decreased 60 basis points compared with the prior-year period.
Co reaffirms guidance for FY17, sees EPS of $3.30-3.45, excluding non-recurring items, vs. $3.37 Capital IQ Consensus Estimate; sees FY17 revs of ~$1.65-1.66 bln (+3-4%) vs. $1.66 bln Capital IQ Consensus Estimate.
5:06 am Diageo beats by GBP0.03; beats on revs; raises dividend; reaffirms FY18 outlook (DEO) :
Reports FY17 EPS of GBP1.08 vs GBP1.05 Capital IQ consensus; revs increased 15% YoY to GBP12.05 bln vs GBP11.96 bln consensus
All regions contributed to broad based organic net sales growth, up 4.3%, and organic volume grew 1.1%
On July 26, the Board approved a share buy-back program to return up to 1.5 billion to shareholders during F18
The Board recommended a final dividend increase of 5% bringing the full year dividend to 62.2 pence per share
Outlook
Continues to expect mid-single digit organic net sales growth and are raising margin improvement objective from 100bps to 175bps over the three years ending 30 June 2019
4:57 am Smith & Nephew beats by $0.05; revs in-line; reaffirms FY17 guidance (SNN) :
Reports Q2 EPS of $0.37 vs $0.32 Capital IQ consensus; revs flat YoY to $1.19 bln vs $1.19 bln consensus
Q2 revenue of $1,194 million reflects 0% reported and 3% underlying growth.
Reported growth rate includes -1%
FX headwind and -2% impact of 2016 disposal of Gynaecology
Sustained recovery in Emerging Markets with revenue up 13% in the quarter
Outlook: Co is confident that we are on-track to deliver full year revenue and trading margin guidance, which is unchanged.
Continues to expect underlying revenue growth of 3-4% and a 20-70bps improvement in trading profit margin for the full year.
4:45 am Royal Dutch Shell beats by $0.04, reports revs in-line (RDS.A) :
Reports Q2 (Jun) earnings of $0.44 per share, $0.04 better than the Capital IQ Consensus of $0.40; revenues rose 23.5% year/year to $72.13 bln vs the $72.16 bln single analyst estimate.
Cash flow from operating activities for the second quarter 2017 of $11.3 billion included favourable working capital movements of $2.3 billion, compared with $2.3 billion in the second quarter 2016, which included negative working capital movements of $2.5 billion.
OUTLOOK FOR THE THIRD QUARTER 2017
Compared with the third quarter 2016, Integrated Gas production volumes are expected to be positively impacted by some 60 thousand boe/d mainly associated with the start-up of Gorgon, partly offset by higher expected maintenance in the LNG plants.
Compared with the third quarter 2016, Upstream earnings are expected to be negatively impacted by a reduction of some 190 thousand boe/d associated with completed divestments, by some 40 thousand boe/d associated with the impact of lower production at NAM in the Netherlands, and by some 30 thousand boe/d associated with higher maintenance.
Earnings are expected to be positively impacted by some 90 thousand boe/d associated with restored production in Nigeria; however, security conditions remain sensitive. Refinery availability is expected to increase in the third quarter 2017 as a result of lower levels of maintenance compared with the same period a year ago.
Chemicals manufacturing plant availability is expected to increase in the third quarter 2017 reflecting improved operational performance at Bukom and lower maintenance compared with the third quarter 2016.
As a result of completed divestments in Malaysia, Australia, and the separation of Motiva assets, oil products sales volumes are expected to decrease by some 240 thousand barrels per day compared with the same period a year ago.
Corporate earnings excluding identified items, excluding the impact of currency exchange rate effects and interest rate movements, are expected to be a net charge of $350 - 450 million in the third quarter and a net charge of around $1.4 - 1.6 billion for the full year.
4:32 am On The Wires (:WIRES) :
Amazon.com (AMZN) announced the launch of Prime Now in Singapore, which offers free two-hour delivery on tens of thousands of items right from your phone.
Accenture (ACN) has launched its first Innovation Hub in Bengaluru, a state-of-the-art facility that combines the broad range of Accenture's leading technology capabilities in a vibrant and collaborative environment to help clients transform their businesses for the digital world.
NTT Communications Corporation, the ICT solutions and international communications business within the NTT Group (NTT) announced the launch of international data network services in India through its affiliate NTT Communications India Network Services. The acquisition of this licence in India follows the initiation of construction of the Company's two new data centers in Mumbai and Bangalore, through Netmagic, a subsidiary of NTT Com and one of the leading managed hosting and cloud service providers in India.
Eurofins Scientific (ERFSF) announced that it has closed the acquisition of GATC Biotech AG. This transaction comprises the acquisition of 62.63% of the shares owned by GATC in LifeCodexx AG, one of Europe's specialists in non-invasive prenatal testing
Honda Motor (HMC) will begin sales in Japan of the all-new Civic series on Friday, September 29, 2017, including three model types, Civic Hatchback, Civic Sedan and Civic Type R
4:10 am TAL Education beats by $0.05, beats on revs; guides Q2 revs above consensus (TAL) :
Reports Q1 (May) earnings of $0.43 per share, $0.05 better than the Capital IQ Consensus of $0.38; revenues rose 65.0% year/year to $321.9 mln vs the $306.46 mln Capital IQ Consensus.
Total student enrollments increased by 62.2% year-over-year to approximately 1,047,760 from approximately 646,050 in the same period of the prior year.
Total physical network increased from 507 learning centers in 30 cities as of February 28, 2017 to 567 learning centers in 35 cities as of May 31, 2017.
Co issues upside guidance for Q2, sees Q2 revs of $428-433.8 mln vs. $419.30 mln Capital IQ Consensus Estimate.
4:07 am Bavarian Nordic A/S announces additional worldwide exclusive license and collaboration agreement with Janssen Pharmaceuticals (JNJ) (BVNRY) :
This new collaboration grants Janssen the exclusive rights to Bavarian Nordic's MVA-BN technology for two additional programs, targeting vaccines against hepatitis B virus (:HBV) and the human immunodeficiency virus (HIV-1).
Under the terms of the agreement, Janssen will provide an upfront payment of $10 million USD, and Johnson & Johnson Innovation - JJDC, Inc. will provide $33 million USD in an equity investment by subscription of new Bavarian Nordic shares. Additionally, Bavarian Nordic will be eligible to receive milestone payments based upon the achievement of specified development, regulatory and sales milestones up to a total of $836 million USD, in addition to tiered royalties on future sales.
Bavarian Nordic's issue of new shares is directed towards J&J, a US company registered under the laws of the state of New Jersey, which will subscribe for Bavarian Nordic shares in the amount of USD 33 million. The amount will be exchanged into DKK prior to J&J's subscription of the new shares. Bavarian Nordic will issue a maximum of 3,142,354 shares of DKK 10 each (equal to approximately 9.9 per cent of existing share capital of the Company), however, the number of subscribed shares may therefore be lower depending on the final exchange rate and subscription price.
4:03 am AstraZeneca trading 15% lower in London after reporting its Lung Cancer MYSTIC trial in Stage IV lung cancer; trial did not meet a primary endpoint (AZN) :
4:00 am AstraZeneca reports initial results from the ongoing MYSTIC trial in Stage IV lung cancer; trial did not meet a primary endpoint (AZN) :
AstraZeneca and MedImmune, its global biologics research and development arm, today announced progression-free survival results for the Phase III MYSTIC trial, a randomised, open-label, multi-centre, global trial of Imfinzi (durvalumab) monotherapy or Imfinzi in combination with tremelimumab versus platinum-based standard-of-care (SoC) chemotherapy in previously-untreated patients with metastatic (Stage IV) 1st-line non-small cell lung cancer.
The combination of Imfinzi and tremelimumab did not meet the primary endpoint of improving PFS compared to SoC in patients whose tumours express PD-L1 on 25% or more of their cancer cells (as determined by the VENTANA PD-L1 (SP263) assay).
As a secondary endpoint, although not formally tested, Imfinzi monotherapy would not have met a pre-specified threshold of PFS benefit over SoC in this disease setting.
The trial will continue to assess two additional primary endpoints of overall survival (:OS) for Imfinzi monotherapy and OS for the Imfinzi plus tremelimumab combination.
Final OS data from both primary endpoints are expected during the first half of 2018.
3:58 am AstraZeneca beats by $0.05, reports revs in-line; reaffirms FY17 guidance (AZN) :
Reports Q2 (Jun) earnings of $0.87 per share, $0.05 better than the Capital IQ Consensus of $0.82; revenues fell 9.9% year/year to $5.05 bln vs the $5.04 bln Capital IQ Consensus.
The Growth Platforms grew by 2% (3% at CER) and represented 70% of Total Revenue:
Emerging Markets: 3% growth (6% at CER), underpinned by China sales growth of 3% (8% at CER).
Economic conditions in Latin America and Saudi Arabia limited overall Emerging Markets growth
Respiratory: A decline of 6% (4% at CER), reflecting the competitive environment for Symbicort in the US
New CVMD4: Growth of 3% (4% at CER). Brilinta growth of 26% (28% at CER) and Farxiga growth 22% (22% at CER), offset by other Diabetes
Japan: Growth of 7% (6% at CER), with an accelerated performance in Q2 2017 reflecting the strong uptake of Tagrisso
New Oncology5: Sales of $537m (H1 2016: $251m); particularly encouraging growth of Tagrisso. Lynparza's US performance reflected the current indication
FY 2017 Guidance: Reiterated
Total Revenue A low to mid single-digit percentage decline
Core EPS A low to mid teens percentage decline
3:42 am Anheuser-Busch InBev beats by $0.06, reports revs in-line (BUD) :
Reports Q2 (Jun) earnings of $1.06 per share, $0.06 better than the Capital IQ Consensus of $1.00; revenues rose 31.2% year/year to $14.18 bln vs the $14.15 bln Capital IQ Consensus.
Revenue grew by 5.0% in the quarter, with revenue per hl growth of 3.2%.
On a constant geographic basis, revenue per hl grew by 3.6%, driven by revenue management initiatives as well as continued premiumization.
In HY17, revenue grew by 4.4% with revenue per hl growth of 4.2%. On a constant geographic basis, revenue per hl grew by 4.1%.
Volume: Total volumes grew 1.0%, while own beer volumes were up by 2.1%.
Good growth in own beer volumes was achieved in South Africa, Mexico and Australia, while declines were recorded in the US, Brazil and Colombia. In
Global Brands: Combined revenues of our three global brands, Budweiser, Stella Artois and Corona, grew by 8.9% in 2Q17.
Budweiser revenues grew by 5.7%, with 11.7% growth in revenues outside of the US. Stella Artois revenues grew by 6.6%, driven mainly by growth in Argentina and South Korea.
Corona had a solid quarter as well, with revenues growing 16.6%, with 26.2% growth in revenues outside of Mexico, as a result of strong growth in the UK, Australia and China.
Combination with SAB: The business integration is progressing well, with synergies and cost savings of $335 million captured during 2Q17.
3:34 am Total S.A. beats by $0.06; misses on revs (TOT) :
Reports Q2 EPS of $0.97 vs $0.91 Capital IQ consensus; revs of $34.48 bln vs $35.91 bln cosensus
Net-debt-to-equity ratio of 20.3% at June 30, 2017
Hydrocarbon production of 2,500 kboe/d in the second quarter 2017
Refinery throughput
decreased by 7% in the second quarter 2017 compared to the second quarter 2016, mainly due to significant shutdown programs, notably at Antwerp in Belgium with the commissioning of the Optara project, and at Leuna in Germany
Interim dividend of 0.62 /share payable in January 2018
Outlook
The Group is continuing to relentlessly pursue its efforts to reduce the cash breakeven.
The good results of the cost reduction program allow the Group to confirm its announced objective of $3.5 bln for 2017, and the decrease of production costs to 5.5 $/boe in 2017 and then to 5 $/boe in 2018.
Organic investments for the year should be between $14-15 bln, which allows the Group to sustain its growth.
3:29 am Teck Resources beats by CAD0.09, beats on revs (TECK) :
Reports Q2 (Jun) earnings of CAD1.00 per share, CAD0.09 better than the Capital IQ Consensus of CAD0.91; revenues rose 62.0% year/year to CAD2.82 bln vs the CC$2.76 bln Capital IQ Consensus.
Cash flow from operations was $1.4 billion in the second quarter of 2017 compared with $339 million a year ago.
Co set new second quarter records for both steelmaking coal sales and production of 6.9 and 6.8 million tonnes, respectively. In addition, Antamina achieved record zinc production of 102,300 tonnes in the second quarter.
Outlook
Co continues to expect 2017 copper production to be in the range of 275,000 to 290,000 tonnes and full year copper unit costs to be in the range of $1.75 to $1.85 per pound before margins from by-products and $1.40 to $1.50 per pound after by-products.
Full year molybdenum production at Highland Valley Copper is also unchanged at 6.0 to 6.5 million pounds contained in concentrate.
3:25 am Chunghwa Telecom beats by NT$0.08; revs in-line (CHT) :
Reports Q2 EPS of NT$1.35 vs NT$1.27 consensus; revs increased 0.9% YoY to NT$55.67 bln vs NT$55.67 bln consensus
3:22 am AstraZeneca and Merck (MRK) form strategic oncology collaboration (AZN) :
AstraZeneca and Merck & Co announced that they have entered a global strategic oncology collaboration to co-develop and co-commercialize AstraZeneca's LYNPARZA (olaparib) for multiple cancer types. LYNPARZA is an innovative, first-in-class oral poly ADP ribose polymerase inhibitor currently approved for BRCA-mutated ovarian cancer in multiple lines of treatment.
Collaboration aims to maximize the potential of PARP and MEK Inhibitors in combination with PD-L1/PD-1 medicines, based on growing scientific evidence that these combinations offer new potential for the treatment of a range of tumor types
AstraZeneca and Merck will independently develop and commercialize LYNPARZA and potential medicine Selumetinib in combinations with companies' respective PD-L1/PD-1 immuno-oncology medicines IMFINZI and KEYTRUDA
Collaboration will significantly expand the potential of LYNPARZA as a monotherapy and as a backbone of combination treatments for multiple cancer types; Agreement also includes AstraZeneca's Selumetinib, a MEK inhibitor
The companies will share development and marketing costs equally, as well as gross profits from LYNPARZA and Selumetinib
As part of the agreement, Merck will pay AstraZeneca up to $8.5 billion in total consideration, including $1.6 billion upfront, $750 million for certain license options and up to an additional $6.15 billion contingent upon successful achievement of future regulatory and sales milestones.
3:20 am AmBev reports Q2 results in-line; misses on revs (ABEV) :
Reports Q2 EPS of BRL0.13 vs BRL0.13 Capital IQ consensus; revs declined 1.1% YoY to BRL10.27 bln vs BRL10.44 bln consensus
Top line was up 4.8% in 2Q17, driven by growth in all our international operations:
Latin America South (:LAS) (+36.2%), Central America and the Caribbean (CAC) (+6.9%) and Canada (+1.4%), partially impacted by Brazil (-4.1%). In Brazil, volumes declined by 4.7%, while NR/hl was up 0.7%.
In CAC, organic volumes were up 1.6%, with a NR/hl growth of 4.2%, while reported volumes increased by 26.2% as a result of the swap of assets carried out with ABI and our operations in Panama.
In LAS, volumes grew by a solid 12.2% and NR/hl was up 21.4%. In Canada, volumes were slightly down (-0.4%), while NR/hl grew by 1.8%.
3:17 am Constellium misses by $0.08, misses on revs (CSTM) :
Reports Q2 (Jun) earnings of 0.15 per share, 0.08 worse than the Capital IQ Consensus of 0.23; revenues rose 12.1% year/year to 1.38 bln vs the 1.43 bln Capital IQ Consensus.
Shipments of 383 thousand metric tons, down 1% compared to Q2 2016; Automotive shipments up 18% compared to Q2 2016
Outlook
Co is updating Adjusted EBITDA growth guidance for 2017 to the high end of high-single digit range.
Co continues to expect Adjusted EBITDA growth in the high single digits annually for the next three years, leading to over 500 million of Adjusted EBITDA in 2020.
3:10 am Nokia beats by $0.03, reports revs in-line (NOK) :
Reports Q2 (Jun) earnings of 0.08 per share, 0.03 better than the Capital IQ Consensus of 0.05; revenues rose 0.8% year/year to 5.63 bln vs the 5.64 bln Capital IQ Consensus.
Nokia's Networks business
5% year-on-year net sales decrease in Q2 2017, primarily due to Ultra Broadband Networks. Within Ultra Broadband Networks, Mobile Networks declined in Q2 following a strong Q1, while Fixed Networks declined at a lower rate in Q2 compared to Q1. Within IP Networks and Applications, IP/Optical Networks declined at a lower rate in Q2 compared to Q1, and Applications & Analytics grew. Global Services net sales were approximately flat.
Strong Q2 2017 gross margin of 39.1% and operating margin of 8.2%, with solid performance across Ultra Broadband Networks, Global Services and IP Networks and Applications.
Nokia Technologies
90% year-on-year net sales increase in Q2 2017, primarily due to a new license agreement in Q2 2017 and a license agreement that was expanded in Q3 2016. Approximately 40% of the EUR 175 million year-on-year increase was non-recurring in nature and related to catch-up net sales for Q1 2017.
158% year-on-year operating profit increase in Q2 2017, primarily related to higher net sales, partially offset by increased licensing-related litigation costs and the ramp-up of our digital health business unit.
Outlook
Nokia - Approximately EUR 1.2 billion of total annual cost savings to be achieved in full year 2018
Nokia's Networks business - Net sales Decline in line with the primary addressable market in full year 2017
3:06 am ArcelorMittal beats by $0.25, beats on revs (MT) :
Reports Q2 (Jun) earnings of $1.30 per share, $0.25 better than the Capital IQ Consensus of $1.05; revenues rose 17.0% year/year to $17.24 bln vs the $16.83 bln Capital IQ Consensus.
Steel shipments of 21.5 Mt in 2Q 2017, up 2% vs. 1Q 2017
1H 2017 steel shipments of 42.5Mt, down 2.4% YoY. Steel shipments down 1.2% on a comparable basis 2Q 2017 iron ore shipments of 15.2Mt (-0.9% YoY), of which 9.5 Mt shipped at market prices (-1.2% YoY)
1H 2017 market price iron ore shipments at 18.1Mt; up 4.3% YoY
Net debt decreased to $11.9 billion as of June 30, 2017, as compared to $12.1 billion as of March 31, 2017 due to positive free cash flow (+$0.6 billion) (despite investment in working capital) offset in part by foreign exchange losses (-$0.4 billion)
Outlook:
Looking to the outlook, current market conditions are improved compared to twelve months ago with steel spreads currently at healthy levels. The demand environment is positive, as evidenced by the highest readings from the ArcelorMittal weighted PMI Index since April 2011, which suggests that steel shipments in 2H 2017 will be higher than would normally be suggested by seasonality alone.
The Company now expects that the cash needs of the business (excluding working capital and premiums paid to retire debt early of $0.2 billion (not included in previous guidance)) in 2017 to be approximately $4.6 billion (as compared to $5.0 billion previous guidance). Given the liability management exercise and lower average debt, we now expect interest expense to decline to $0.8 billion in 2017 (as compared to $0.9 billion from previous guidance and $1.1 billion in FY 2016). While capex expectation for 2017 remains at $2.9 billion (from $2.4 billion in 2016), the Company expects lower cash taxes and contributions to fund pensions and other cash expenses to be lower than previous guidance.
Given the improved market conditions, the Company now expects a full year 2017 investment in working capital of approximately $1.5 billion (as compared to previous guidance of approximately $1.0 billion).
2:55 am Teekay Offshore: Brookfield Business Partners (BBU) to purchase 60% stakin in Teekay Offshore Partners (TOO) for $750 mln (TOO) :
Brookfield Business Partners L.P. (BBU) together with its institutional partners, announced that it has entered into an agreement to acquire 60% of Teekay Offshore Partners L.P. (TOO). Teekay Offshore is a publicly traded subsidiary of Teekay Corporation (TK), one of the world's largest marine energy transportation, storage and production companies.
Brookfield's total investment is expected to be ~$750 million. As part of the transaction, Teekay Corporation will be co-investing alongside Brookfield and will retain a 14% ownership of Teekay Offshore.
Brookfield will invest $610 million for newly-issued common units of Teekay Offshore and will acquire a $200 million loan to Teekay Offshore from Teekay Corporation at discount to par.
Brookfield will also acquire 49% of Teekay Offshore GP, the general partner of Teekay Offshore, and Teekay Corporation will continue to hold 51% of TOO GP.
As part of the transaction, Brookfield has the option to acquire an additional 2% of TOO GP subject to the satisfaction of certain conditions.
This transaction is part of a comprehensive solution for Teekay Offshore, which includes a $640 million equity investment and other financing initiatives
2:52 am On The Wires (:WIRES) :
Astellas Pharma (ALPMY) announced that it is winding down its Agensys research operations in Santa Monica, California, USA, to further refine its oncology strategy by expanding its investment in the research in new technologies and modalities and reducing its focus on Antibody-Drug Conjugate research.
Matson (MATX) announced that it will introduce a new direct U.S. flag service between Honolulu and the Republic of the Marshall Islands that will shorten cargo transit times to the RMI from the U.S. mainland by as many as eight days. The new biweekly service will call at three ports in the RMI - Kwajalein, Ebeye and Majuro - starting in the first quarter of 2018.
LS Group and KKR (KKR) announced the signing of a definitive agreement under which KKR will become joint partners with LS in LS Automotive, an electrical auto parts maker for the global automotive industry, and will additionally acquire LS Group affiliate LS Mtron's copper foil and flexible copper clad laminate business
2:44 am Intellipharmaceutics Intl provides update on FDA Advisory Committees Meeting for Rexista (IPCI) :
Co announced that the Anesthetic and Analgesic Drug Products Advisory Committee and Drug Safety and Risk Management Advisory Committee of the FDA voted 22 to 1 in finding that the Company's New Drug Application for Rexista abuse-deterrent oxycodone hydrochloride extended release tablets should not be approved at this time.
The committees also voted 19 to 4 that the Company has not demonstrated that Rexista has properties that can be expected to deter abuse by the intravenous route of administration and 23 to 0 that there are not sufficient data for Rexista to support inclusion of language regarding abuse-deterrent properties in the product label for the intravenous route of administration.
The committees expressed a desire to review the additional safety and efficacy data for RexistaTM that may be obtained from human abuse potential studies for the oral and intranasal routes of administration. Accordingly, the Company intends to conduct Category 3 abuse potential studies to provide the data the Company believes necessary to support abuse-deterrent properties of RexistaTM for the oral and intranasal routes, which are required for abuse-deterrent labeling claims for such routes. The Company has an FDA approved protocol for a human abuse potential study for the intranasal route of abuse, which it plans on commencing in the coming weeks.
Rexista is indicated for the management of pain severe enough to require daily, around-the-clock, long-term opioid treatment and for which alternative treatment options are inadequate. The FDA is not bound by the advisory committees' recommendation, but will consider their guidance as it continues its review of Rexista. The FDA set a Prescription Drug User Fee Act (:PDUFA) goal date of September 25, 2017 for completion of its review of our RexistaTM NDA candidate.
2:39 am Suncor Energy beats by CAD0.05 (SU) :
Reports Q2 (Jun) earnings of CAD0.26 per share, CAD0.05 better than the Capital IQ Consensus of CAD0.21.
Production:
Total Oil Sands production was 413,600 barrels per day (bbls/d) compared to 213,100 bbls/d in the prior year period, with the prior year quarter being significantly impacted by the forest fires in the Fort McMurray area.
Oil Sands operations cash operating costs per barrel (bbl) were $27.80 for the second quarter of 2017, reflecting reduced production due to planned maintenance and the positive impact of the company's cost reduction initiatives.
Exploration and Production (E&P) production increased to 125,500 barrels of oil equivalent per day (boe/d) from 117,600 boe/d in the prior year quarter.
Refining and Marketing (R&M) crude throughput improved to 435,500 bbls/d from 400,200 bbls/d in the prior year quarter.
Corporate Guidance
Suncor has updated its production, capital and other information in its 2017 corporate guidance, previously issued on April 26, 2017.
The full year outlook for Syncrude production has been updated from 135,000 - 150,000 bbls/d to 130,000 - 145,000 bbls/d, and the full year outlook range for Syncrude cash operating costs has been updated from $36.00 - $39.00/bbl to $42.00 - $45.00/bbl, to reflect the extended return to operations following the facility incident that occurred late in the first quarter of 2017.
In addition, the full year outlook range for E&P production has been updated from 110,000 - 120,000 boe/d to 115,000 - 125,000 boe/d due to improved asset performance, resulting in no change to the full year outlook range for total Suncor production.
The full year outlook range for Oil Sands operations cash operating costs has been updated from $24.00 - $27.00/bbl to $23.00 - $26.00/bbl to reflect lower natural gas and maintenance costs.
2:34 am Sienna Biopharmaceuticals (Nasdaq) prices 4.33 mln share IPO at $15.00 per share, at the mid-pt of the $14-16 expected range (SNNA) :
