>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: MMSI -12.5%, NTRI -11.2%, BWLD -9.1%, DWA -7.5%, GPRE -7.4%, PWE -7.1%, CAP -5.1%, RGR -4.6%, AMCC -4.3%, IACI -4.1%, AFL -4%, MOVE -3.6%, CRAY -3.5%, GNW -3.4%, RT -3.1%, NVMI -2.6%, CUZ -2.5%, ROG -2.4%, ROK -2.2%, ACHC -2.1%, USNA -1.6%, CHMT -1.6%, VRTX -1.6%, TOT -1.3%, QGEN -1.2%,NFX -1.8.

M&A news: TRQ -3.4% (announces sale of 29.95% stake in SouthGobi resources), RIO -0.6% (agrees to sell coal assets in Mozambique for $50 mln).

Select metals/mining stocks trading lower: IGLD -1.8%, BHP -1.0%, ACH -1.0%.

Other news: PWE -7.1% (accounting review; production news), LVLT -2.5% (announced pricing of private offering of $1 bln of 5.375% senior notes due 2022), SWHC -1.7% (following RGR results), PT -1.3% (still checking), BIOF -0.8% (on GPRE results).

Analyst comments: UFS -1.5% (downgraded to Neutral from Buy at Goldman), KORS -1.4% (downgraded to Neutral from Outperform at Robert W. Baird), ALK -1.3% (downgraded to Neutral from Overweight at JP Morgan ), ETN -1% (downgraded to Neutral from Overweight at JP Morgan, downgraded to Neutral from Buy at Goldman), EMN -0.9% (downgraded to Neutral from Buy at Sun Trust Rbsn Humphrey).

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: ZLTQ +26.6%, TWTR +24.7%, RUBI +17.4%, OPTT +13.8%, AEGR +12.8%, XPO +12.6%, RNG +11.1%, ECYT +11.1%, X +9.5%, CETV +9.1%, EXAM +8%, ADT +7.3%, EW +7.2%, AUO +6.9%, CLD +6.6%, GRMN +6.5%, PAL +6.5%, PBI +5.8%, NUVA +5.7%, ASTI +5.7%, SODA +5.6%, SQNM +5.1%, HES +5.1%, (formation of master limited partnership) INVN +4.6%, PAG +4.6%, INAP +4.5%, SLCA +4.5%, AMGN +4.2%, BCS +4.2%, ICLR +3.9%, SONS +3.8%, NCR +3.5%, MGAM +3.4%, TRN +3.2%, CPWR +3.1%, ESRX +2.6%, CVE +2.6%, AMT +2.3%, PLT +2.1%, APC +2.1%, HUN +2.1%, WILN +1.9%, HUM +1.9%, CHRW +1.8%, SEE +1.7%, UMC +1.7%, BLDP +1.6%, S +1.6%, RRD +1.6%, UGI +1.5%,LO +1.5%, AMED +1.5%, PROV +1.3%, IPHI +1.2%, MAR +1.2%, CG +1%, PNRA +0.9%, EQR +0.9%, VLO +0.9%, ASX +0.7%.

M&A news: IPHI +1.2% (to acquire Cortina Systems; will acquire Cortina's High-Speed Interconnect and Optical Transport product lines for $52.5 mln in cash and $73.5 mln in stock).

Other news: YPF +5.9% (still checking), JKS +5.8% (to receive $225 mln private equity investment led by China Development Bank International and Macquarie for downstream solar power project business), SQNM +5.1% (entered into license agreement with Mayo Medical Laboratories for noninvasive prenatal testing patents and applications; terms not disclosed), LOCO +4.8% (continued pre-mkt vol, post ipp), MEET +4.2% (engages MKR Group for investor relations), XXII +4.2% (patents granted For 22nd Century Group's technology to virtually eliminate nicotine in tobacco plants), TXMD +4.1% (prices public offering of ~ 8.6 mln shares of its common stock at $4.67 per share), CENT +4.1% (retained Lazard as financial advisor and Cravath, Swaine & Moore LLP as legal advisor to assist the Board in its review of two proposals recently received from Harbinger Group), DEJ +3.7% (co's Roan Creek recoverable resource estimate pegged at 67.5 BCFe gas), YELP +3.6% (on TWTR results), HNSN +3.5% (announces publication of Uterine Artery Embolization results; publication states UAE procedures are feasible and appear to be safe with Magellan robotic system),LNKD +1.8% (on TWTR results), SINA +1.7% (on TWTR results), OLED +1.6% (co continues Philips relationship with commercial material supply agreement for OLED lighting), RSH +1.5% (opened 21 interactive remodel stores in San Francisco Bay Area), MT +1.4% (following X results), FB +0.9% (on TWTR results), NUE +0.8% (following X results), AZN +0.8% (agrees to strategic transaction with Almirall in respiratory disease).

Analyst comments: HIVE +16.6% (initiated with an Outperform at Pacific Crest), ICPT +2.6% (upgraded to Buy from Neutral at Nomura), UAL +2.6% (upgraded to Overweight from Neutral at JP Morgan), OSK +1.7% (upgraded to Outperform from Neutral at Robert W. Baird), RESI +1.7% (upgraded to Outperform from Mkt Perform at Keefe Bruyette ), RKUS +1% (initiated with an Outperform at Pacific Crest)

>>> American Express: Color on Quarter (91.71)

American Express: Color on Quarter (91.71)
  • RBC Capital Mkts raises their AXP tgt to $79 from $77. 2Q14 results included an array of one-time items masking core EPS. Big picture, we remain concerned about the company's competitive position given continued expense controls, along with DOJ lawsuit risk. Shares remain richly valued at 16.8x 2015E EPS relative to our mid-upper 20% core ROE outlook - we continue to see less upside for AXP shares vs card issuer peers.
  • FBR Capital notes the quarter was marked by significant noise; excluding the net gain associated with the business travel joint venture transaction (JV transaction) and gain on sale of ICBC shares, they estimate operating EPS of $1.35 versus the consensus and FBR estimates of $1.39. Key takeaways: (1) global (FX adjusted) and U.S. billed business accelerated on a YOY basis to +9% in 2Q14 from +7% in 1Q14, but revenue (FX adjusted) increased 5%; (2) of the $626M gain ($0.39/share estimate) from the JV transaction, approximately $0.05 benefited EPS, as the company reinvested the majority of the gain; and (3) mgmt reiterated its intent to hold operating expense growth to less than 3% annually through 2015. AXP shares currently trade at 15x FY15 EPS estimate, and while they believe the co's attractive ROE warrants a premium valuation, they view the shares as fairly valued given our EPS growth outlook of ~ 12%.
  • Oppenheimer notes AXP reported 2Q14 EPS of $1.43 vs. consensus and our $1.38 estimate. Results contained about $0.05 of net benefit from the previously announced Business Travel JV sale which we had not included, and thus we could say the "core" results were in line from a purely EPS perspective. It created some noise across the expense lines, but in their minds the more important takeaway in the quarter came from the improvement in fundamentals. Here, they saw billed business re-accelerate to +9% YoY vs. +7% in 1Q (in line with 3Q/4Q13) and loan growth pick up to +5% YoY vs. a trailing-4Q-average of ~3%. This underlying fundamental strength is what drives our estimates higher.
  • AXP is up ~1% in the premarket.

>>> Twitter: Early Color on qtr (38.59 )

Twitter: Early Color on qtr (38.59 )
  • Wunderlich Securities notes TWTR reported Q2 results of $312M in revenues and $54M in EBITDA, ahead of firm and consensus expectations nd compared to guidance of $270-$280M /$25-$30M. Results were driven by strong user growth, engagement, and monetization. Firm had been positive on the monetization and engagement, but user growth surprised with 271M monthly active users (MAUs) compared to it's 261M estimate and the consensus of 267M. User growth was attributed to product upgrades and engagement to the World Cup audience. Wunderlich is maintaining Hold rating but raising estimates and price target from $35 to $45.
  • Topeka Capital notes Twitter delivered an impressive quarter with MAUs that were above firm's Street high estimate and meaningfully above the bear case floated around for several weeks. Advertising growth accelerated for the second consecutive quarter and Adj. EBITDA was 54% above firm's estimate. Full year revenue and EBITDA guidance, which looks easily beatable, was raised and is above consensus. This was a solid beat, in Topeka's view, and should represent a break-out quarter for Twitter, in similar vain to Facebook's (FB) quarter in 2Q13. Maintain Buy and raising price target to $62 from $60.
  • RBC Capital notes TWTR reported stronger than expected Q2 P&L results and Usage metrics. Firm is encouraged by the strong growth & are reiterating Outperform Rating, PT up to $65. Fundies: 3rd consecutive qtr of accelerating Rev growth, 124% Y/Y, with EBITDA Margin up 10 pts Y/Y to 17%. The increased '14 outlook implies the highest growth outlook in the sector. Metrics: 1. 271MM MAUs came in ahead of the Street at 265MM, tho Global MAU Y/Y growth again decelerated, tho U.S. MAU Growth accelerated for the first time in a year; 2. Timeline Views also came in ahead of the Street; and engagement levels (Time Line Views per MAU) grew for the 2nd consecutive qtr; and 3. Monetization soared 100% Y/Y.
Shares of TWTR are up approx 25% in pre-market, trading at $47.58; stock did hit $52.44 in immediate reaction but has slowly been giving up some of that initial move.

>>> SodaStream beats by $0.13, reports revs in-line; guides FY14 revs below cons

SodaStream beats by $0.13, reports revs in-line; guides FY14 revs below consensus (29.77)
Reports Q2 (Jun) earnings of $0.43 per share, $0.13 better than the Capital IQ Consensus Estimate of $0.30; revenues rose 6.5% year/year to $141 mln vs the $140.53 mln consensus.

Gross margin for the second quarter 2014 was 50.5% compared to 54.3% for the same period in 2013. The decline was primarily due to unfavorable changes in foreign currency exchange rates, increased penetration of lower margin soda makers in the sales mix and inventory write offs, which were partially offset by a higher share of CO2 refills in product mix.

Regional Sales
  • The Americas $40.9 mln, -14% y/y
  • Western Europe $77.7 mln, +14% y/y
  • Asia Pacific $10.8 mln, +13% y/y
  • CEMA $6.1 mln, +71% y/y
Product Sales
  • Soda Makers $45.8 mln, -8%
  • Consumables $90.8 mln, +15%
Guidance
  • Co issues downside guidance for FY14, sees FY14 revs of approx $590 vs. $623.05 mln Capital IQ Consensus Estimate.
  • The Company now expects full year 2014 EBITDA to increase approximately 5% over 2013 EBITDA of $62.2 million. Excluding changes in foreign currency exchange rates compared to 2013, the Company expects 2014 EBITDA to increase approximately 17% over 2013.
  • The Company now expects full year 2014 net income to decrease approximately 5% over 2013 net income of $42.0 million

>>> US Early premarket gappers

Early premarket gappers
Gapping up: TWTR +25.5%, ZLTQ +23.6%, OPTT +17.9%, RUBI +17.5%, AEGR +14.3%, XPO +12.6%, RNG +11.1%, ECYT +9%, EXAM +8.8%, EW +7.2%, AUO +6.9%, CLD +6.6%, S +6.3%, SQNM +6.2%, NUVA +5.7%, X +5%, PAG +4.6%, SLCA +4.5%, MEET +4.2%, CENT +4.1%, YELP +3.7%, DEJ +3.7%, GRMN +3.6%, HNSN +3.5%, AMGN +3.5%, NCR +3.5%, MGAM+3.4%, CPWR +3.1%, TRN +2.9%, INVN +2.5%, LNKD +2.4%, RRD +2.4%, AMT +2.3%, BLDP +2.1%, PLT +2.1%, HUM +1.9%, VLO +1.8%, SINA +1.7%, OLED +1.6%, RSH +1.5%, LO +1.5%, AMED +1.5%, SODA +1.5%, PROV +1.3%, TASR +1.3%, IPHI +1.2%, MT +1.1%, ESRX +1.1%, FB +1%, CG +1%, PNRA +0.9%, EQR +0.9%

Gapping down: MMSI -12.5%, NTRI -11.2%, BWLD -10.9%, DWA -7.5%, RGR -5.3%, CAP -5.1%, AMCC -4.3%, AFL -4%, GPRE -3.7%, MOVE -3.6%, CRAY -3.5%, RT -3.1%, NVMI -2.6%, LVLT -2.5%, ROG -2.4%, ROK -2.2%, ACHC -2.1%, GNW -2%, SWHC -1.7%, NFX -1.6%, USNA -1.6%, CHMT -1.6%, VRTX -1.6%, CUZ -1.5%, TOT -1.5%, POWI -1.1%, QGEN -1.1%, BIOF-0.8%, D -0.6%, NICE -0.5%

(BFW) *FRANCE TO GIVE BONUSES FOR ELECTRIC CAR PURCHASES, ROYAL SAYS

BN 07/30 10:20 *FRANCE TO GIVE BONUSES FOR ELECTRIC CAR PURCHASES, ROYAL SAYS
BN 07/30 10:13 *FRENCH ENERGY MINISTER ROYAL SPEAKS AT PRESS CONFERENCE
BN 07/30 10:11 *ROYAL SAYS NEW LEGISLATION WILL LOWER CONSUMER ENERGY BILLS
*FRANCE TO GIVE BONUSES FOR ELECTRIC CAR PURCHASES, ROYAL SAYS
2014-07-30 10:21:22.586 GMT

--GAURAV PANCHAL

-0- Jul/30/2014 10:21 GMT