TheChek News Flow

>>> Freeport-McMoRan beats by $0.06, beats on revs

Freeport-McMoRan beats by $0.06, beats on revs

Reports Q2 (Jun) earnings of $0.58 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $0.52; revenues rose 28.8% year/year to $5.52 bln vs the $5.31 bln consensus.

Capital expenditures totaled $2.0 bln for second-quarter 2014
Consolidated sales for second-quarter 2014 totaled 968 mln pounds of copper, 159 thousand ounces of gold, 25 mln pounds of molybdenum and 16.0 mln barrels of oil equivalents (MMBOE), compared with second-quarter 2013 sales of 951 mln pounds of copper, 173 thousand ounces of gold, 23 mln pounds of molybdenum and 5.0 MMBOE (reflecting oil and gas results beginning June 1, 2013.
Average realized prices for second-quarter 2014 were $3.16 per pound for copper (compared with $3.17 per pound for second-quarter 2013), $1,296 per ounce for gold (compared with $1,322 per ounce for second-quarter 2013) and $95.50 per barrel for oil (net of $4.96 per barrel associated with payments on derivative contracts).
Second-quarter 2014 sales from oil and gas operations of 16.0 MMBOE, including 11.7 mln barrels (MMBbls) of crude oil, 20.3 bln cubic feet (Bcf) of natural gas and 1.0 MMBbls of natural gas liquids (NGLs), were higher than the April 2014 estimate of 15.2 MMBOE primarily reflecting higher production volumes from Eagle Ford and the Deepwater GOM.
Second-quarter 2014 volumes included 4.0 MMBOE of sales from the Eagle Ford field through June 19, 2014.
Cash production costs for oil and gas operations of $19.57 per BOE in second-quarter 2014 were higher than cash production costs of $16.58 per BOE in June 2013 primarily because of higher operating costs in California.
Based on current sales volume and cost estimates for the second half of 2014, cash production costs are expected to approximate $22 per BOE for the second half of 2014 and $20 per BOE for the year 2014.

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: JAKK +9.1%, VASC +7.1%, BIIB +6.7%, BIIB +6.7%, BABY +5.7%, MANH +5.4%, BEAV +4%, RHI +3.9%, ZIXI +3.7%, BRCM +3.5%, GD +2.9%, RES +2.7%, UCFC +2.5%, VMW +2.3%, MSFT +2.3%, TMO +2.3%, PEP +2.3%, DOW +2%, DAL +2%, BA +1.7%, FTI +1.2%, HA +1.1%, (also to add new Airbus (EADSY) A330-800neo to fleet; airline's Order for A350XWB-800s cancelled ), AWRE +1%, EVR +0.9%, AAPL +0.7%, EMC +0.6%, .

M&A news: TLM +11.5% (hearing that Repsol (REPYY) is considering making a bid for the company).

Select battery related names showing strength again: FCEL +4%, PLUG +3.3% (co to host shareholder day today).

Other news: PBYI +245.7% (announces amendment to Neratinib licensing agreement with Pfizer; announces positive top line results from Phase III PB272 trial in Adjuvant Breast Cancer (ExteNET Trial); Neratinib achieves statistically significant improvement in disease free survival ), DARA +12.1% (following PBYI news), EGRX +7.1% (announces FDA approved Ryanodex for the Treatment of Malignant Hyperthermia; Orphan Drug Designation may Provide Eagle Seven Years Market Exclusivity), BLDP +4.6% (to supply New Flyer Industries with next generation Power Module for U.S. Fuel Cell Bus), UPIP +2.4% (co has sued Microsoft for breach of contract and declaratory judgment), ASX +2.4% (received Apple (AAPL) iWatch supplier orders, according to reports), DB +2.2% (late move lower on WSJ report suggesting the co may suffer from reporting problems, regulators say), DB +2.2% (rebounding after yesterday's intraday selloff), GPRO +2.2% (on going volatility), P +2.1% (Google previously attempted to buy Spotify, according to WSJ report), CO +1.8% (Co and and Cordlife Group announced that the two companies have joined forces in assisting patients across asia), SAP +1.2% (still checking), GME +1% (following EA earnings).

Analyst comments: CODE +1.6% (upgraded to Buy from Hold at Jefferies), ACT +1.6% (initiated with a Buy at Deutsche Bank), MNK +0.9% (initiated with a Buy at Deutsche Bank), PRGO +0.5% (initiated with a Buy at Deutsche Bank)

>>> Mead Johnson Nutrition reiterated potential buyout in 'realm of possibility'

Mead Johnson Nutrition reiterated potential buyout in 'realm of possibility' at Citigroup

>>> Boeing beats Q2 EPS, reports revs in-line; raises FY14 EPS; reaffirms revs g

Boeing beats Q2 EPS, reports revs in-line; raises FY14 EPS; reaffirms revs guidance

Reports Q2 (Jun) core earnings of $2.42** per share (GAAP EPS $2.24) vs. $1.99 CIQ Consensus; revenues rose 1.1% year/year to $22.05 bln vs the $22.23 bln consensus.

**Reflecting strong performance and favorable tax items. Second-quarter 2014 results included a $272 million after-tax charge ($0.37 per share) on the KC-46A Tanker program reflecting the cost of additional engineering and systems installation work required to complete the Engineering and Manufacturing Development contract. Favorable tax items include the previously announced tax benefit of $116 million for the 2007-2008 tax settlement, as well as an additional tax benefit of $408 million in the second quarter.

Co issues guidance for FY14, raises EPS to $7.90-8.10 from $7.15-7.35, reflecting the $408 million tax benefits, strong operating performance and the KC-46A Tanker charge, may not be comparable to $7.61 Capital IQ Consensus; reaffirms FY14 revs of $87.5-90.5 bln vs. $89.76 bln Capital IQ Consensus.

"Strong operating performance across our production programs and services businesses drove revenue and earnings-per-share growth and healthy operating cash flow, which supported $1.5 billion in additional share repurchases in the quarter," said Boeing Chairman and Chief Executive Officer Jim McNerney. "We delivered our first 787-9 and our 8,000th 737, successfully completed a key missile defense intercept test, and delivered our 100th EA-18G Growler to the U.S. Navy." "While challenges resolving engineering and systems installation issues on our tanker test aircraft are resulting in higher spending to maintain schedule, the issues are well understood and we remain on path to begin flight testing fully provisioned tankers the first part of next year," McNerney said. "With 783 new commercial airplane orders to date this year and significant contracts in the quarter for military aircraft and satellites, our backlog remains large and diverse. Overall, our strong first-half financial performance, sustained focus on growth and productivity, and positive market outlook support our increased earnings guidance for the year."

Backlog remains strong at $440 billion with over 5,200 commercial airplane orders

Repurchased 11.4 million shares for $1.5 billion

>>> Delta Air Lines beats by $0.01, reports revs in-line

Delta Air Lines beats by $0.01, reports revs in-line

Reports Q2 (Jun) earnings of $1.04 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $1.03; revenues rose 9.4% year/year to $10.62 bln vs the $10.65 bln consensus.

Passenger revenue increased 9 percent, or $772 mln, compared to the prior year period. Passenger unit revenue (PRASM) increased 5.7 percent year-over-year with a 3.8 percent improvement in yield. Seat-related products and other merchandising initiatives increased revenues by $45 mln versus the prior year period. Cargo revenue decreased 1 percent, or $2 mln, as lower freight yields were partially offset by higher volumes.
Other revenue increased 15 percent, or $144 mln, driven by higher joint venture and SkyMiles revenues. Consolidated unit cost excluding fuel expense, profit sharing and special items, was flat in the June 2014 quarter on a year-over-year basis as the benefits of Delta's domestic refleeting and other cost initiatives offset the company's investments in its employees, products and operations. GAAP consolidated CASM decreased 0.4 percent.
Co sees Q3 operating margin at 15-17%; sees system capacity +2-3%

>>> GlaxoSmithKline misses by $0.02, misses on revs; guides FY14 EPS above conse

GlaxoSmithKline misses by $0.02, misses on revs; guides FY14 EPS above consensus

Reports Q2 (Jun) earnings of GBP0.19 per share, GBP0.02 worse than the Capital IQ Consensus Estimate of GBP0.21; revenues fell 16.0% year/year to GBP5.56 bln vs the GBP5.73 bln consensus.

Co issues upside guidance for FY14, sees EPS of similar to 2013 (2013 GBP 1.10 vs. GBP1.01 Capital IQ Consensus Estimate.
Pharmaceutical and Vaccines sales -4% primarily due to continued increased competition in US respiratory market and generic competition to Lovaza. Strong performance from Emerging Markets (+11%) partially offset declines in Japan (-7%) and the US (-10%). Europe sales flat.
Emerging Markets Pharmaceuticals and Vaccines turnover increased 11% to GBP 822 million, with Pharmaceuticals up 5% and Vaccines up 26%, reflecting the phasing of tender sales of Synflorix and Rotarix . The ongoing investigation in China adversely impacted Emerging Markets Pharmaceuticals and Vaccines sales growth by an estimated four percentage points. In China, sales excluding Established Products were down 20% to £62 million (including Established Products, down 25% to £129 million). Elsewhere there were strong contributions from Brazil, up 49% to £116 million, and Middle East/North Africa/CIS, up 8% to £211 million. In Emerging Markets Pharmaceuticals, there was continued growth from Oncology products, up 47% and Augmentin , up 11%. Seretide sales were down 4%, in part due to the phasing of shipments, but also the impact of generic copies in some markets.

>>> US Early premarket gappers

Early premarket gappers

Gapping up: PBYI +213.4%, TLM +14.2%, DARA +12.1%, VASC +7.1%, MANH +5.4%, JAKK +5%, BIIB +4.7%, BLDP +4.1%, RHI +3.9%, ZIXI +3.7%, BRCM +2.7%, DB +2.5%, UCFC +2.5%, UPIP +2.4%, TMO +2.3%, VMW +1.9%, CO +1.8%, MSFT +1.3%, SAP +1.2%, FTI +1.2%, HA +1.1%, AWRE +1%, ABB +0.9%, EVR +0.9%, P +0.8%

Gapping down: XOOM -13%, XLNX -11.4%, UIS -7.3%, LJPC -7.1%, IRBT -6.5%, WHR -5.6%, JNPR -5.3%, EXP -5%, STM -4%, FPI -3.9%, ALTR -3.2%, PT -3.2%, LLTC -2.5%, HLF -2.4%, HLF -2.4%, NYLD -1.5%, EVRY -1.3%, TSS -0.7%, AAPL -0.6%, DOW -0.6%, EA -0.5%

- Raises 2015 GDP growth outlook from 1.7% to 2.0%

- Forecasts Q2 GDP +0.5% q/q, +1.1% y/y; Comments:

- Activity recovering faster than expected.

**Note; In early July, it was speculated that the 2015 GDP forecast would be raised.

- Spain government's current 2014 GDP growth forecast is 1.2%