Alstom GE deal could be announced in coming days say familiar sources
- press- Bouygues backs the proposed deal
- Approach was initiated by Alstom
Microsoft color on qtr
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FBR Capital notes, MSFT delivered a good FY3Q as it beat the Street on the bottom line and was in line on the top line. The good performance continues to be centered around success in the cloud with improved traction from Azure and Office 365. Although June quarter guidance (F4Q) came in below the Street, firm believes Mr. Nadella will be given a "get out of jail free card" given the recent unveiling of newer strategies. Overall, firm views 3Q as another step in the right direction for co in light of the softness firm has seen from other large-cap technology players; Mkt Perform, tgt raised to $43 from $40.
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Oppenheimer notes, MSFT delivered a solid F3Q14 that beat consensus expectations. Performance was driven by: 1) broad-based growth across all product families; 2) continued strong internal execution; and 3) a stabilizing PC market in the developed world coupled with PC refresh cycle. Mgmt did provide some color about the NOK acquisition, which closes on 4/25. The addition of ND&S is a key component to the MSFT's "Mobile & Cloud" strategy, with this qtrs results displaying the strength of cloud. The integration carries some risk, but given new mgmt, firm believes it can be navigated; Outperform, tgt raised to $45 from $38.
- RBC Capital Mkts notes, MFST reported a solid 3Q outperforming on most metrics. The highlight of the qtr was unearned revenue which was nearly $1 bln above consensus. Guidance was effectively in-line and doesn't include the impact of Nokia, which will close on 4/25. Maintain Sector Perform rating as co's consistency is impressive, but seems fully valued at firm's $44 target.
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Credit Suisse raised its MSFT tgt to $47 from $42.50
- JP Morgan raised its MSFT tgt to $35 from $32; Neutral
- Cowen raised its MSFT tgt to $42 from $40; Mkt Perform
Gapping up
In reaction to strong earnings/guidance: SYNA +13% (also target raised to $80 at Craig Hallum), ECHO +9.6% (light volume), WTSL +9.2% (light volume, plans to exit Arden B business; Reaffirms 1Q14 Financial Guidance), CUDA +8.3%, MKTO +7.8%, GIMO +7.6% (also upgraded to Strong Buy from Buy at Needham), LSCC +6.7%, PDFS +6.3% (thinly traded), INUV +6.3% (thinly traded), DECK +5.8%, BIDU +4.7% (also upgraded to Buy from Hold at Deutsche Bank), CRUS +4.6%, DV +4.1%, (also upgraded to Overweight from Neutral at Piper Jaffray), HBI +4.1%, PSO +3.6%(issues interim management statement for first three months of 2014; reaffirms FY14 EPS guidance), ALTR +3.4%, SPWR +2.6%, MSFT +1.9%, MMSI +1.7%, (light volume), ALK +1.6%,AEP +1.3%, (light volume), SBUX +1.1%, OTEX +0.9%, (to file a shelf registration statement in connection with GXS transaction Registration Right), CERN +0.6%, AMCC +0.6% (light volume), HMC +0.5% (light volume), QLIK +0.2%.
Select metals/mining stocks trading higher: GDX +1.2%, ABX +1%, GOLD +0.8%, AU +0.7%, GLD +0.6%.
China internet names higher boosted by BIDU results: DANG +1.7%, YOKU +1.4%, WB +1.3%, VIPS +1.2%, SOHU +1%, QIHU +0.7%, SINA +0.7%
Other news: BLDP +10.8% (Ballard closes strategic intellectual property transaction with United Technologies Corp), CLH +7.8% (Relational Investor confirms 9.08% stake in 13D), YNDX +2.7% (rebounding modestly, ongoing tensions in Russia), UA +2.5% (will be added to S&P 500; upgraded to Buy at Stifel), SPLS +2.5% (still checking), SXCP +1.6% (SunCoke Energy Partners prices public offering of 2.8 mln common units at $29.03 per unit), BV +1.5% (reaches settlement with DOJ in antitrust litigation regarding 2012 acquisition of PowerReviews), TSL +1.3% (to supply 36MW of high efficiency modules to large-scale chile solar project), NOK +0.8% (Nokia completes sale of substantially all of its Devices & Services business to Microsoft, as expected; also Nokia plans to name Rajeev Suri next CEO next week, according to reports), VALE +0.5% (receives favorable ruling in Brazilian appeals court over tax dispute, according to report), UPS +0.3% (UPS Contract with International Brotherhood of Teamsters Approved), YY +0.3% (Greenwoods Asset Mgmt disclosed 5.2% stake in 13G).
Analyst comments: FTI +1% (upgraded to Outperform from Market Perform at BMO Capital), BP +0.8% (initiated with a Buy at Jefferies), CELG +0.2% (upgraded to Overweight from Neutral at Piper Jaffray)
Select metals/mining stocks trading higher: GDX +1.2%, ABX +1%, GOLD +0.8%, AU +0.7%, GLD +0.6%.
China internet names higher boosted by BIDU results: DANG +1.7%, YOKU +1.4%, WB +1.3%, VIPS +1.2%, SOHU +1%, QIHU +0.7%, SINA +0.7%
Other news: BLDP +10.8% (Ballard closes strategic intellectual property transaction with United Technologies Corp), CLH +7.8% (Relational Investor confirms 9.08% stake in 13D), YNDX +2.7% (rebounding modestly, ongoing tensions in Russia), UA +2.5% (will be added to S&P 500; upgraded to Buy at Stifel), SPLS +2.5% (still checking), SXCP +1.6% (SunCoke Energy Partners prices public offering of 2.8 mln common units at $29.03 per unit), BV +1.5% (reaches settlement with DOJ in antitrust litigation regarding 2012 acquisition of PowerReviews), TSL +1.3% (to supply 36MW of high efficiency modules to large-scale chile solar project), NOK +0.8% (Nokia completes sale of substantially all of its Devices & Services business to Microsoft, as expected; also Nokia plans to name Rajeev Suri next CEO next week, according to reports), VALE +0.5% (receives favorable ruling in Brazilian appeals court over tax dispute, according to report), UPS +0.3% (UPS Contract with International Brotherhood of Teamsters Approved), YY +0.3% (Greenwoods Asset Mgmt disclosed 5.2% stake in 13G).
Analyst comments: FTI +1% (upgraded to Outperform from Market Perform at BMO Capital), BP +0.8% (initiated with a Buy at Jefferies), CELG +0.2% (upgraded to Overweight from Neutral at Piper Jaffray)
Vivendi Universal Issues clarification on distribution of €1 for 2013 announced Apr 24th
- Specifies that the distribution of €1 for 2013 announced in its press release dated April 24, 2014, is legally considered an ordinary distribution. For accounting purposes, this distribution will be treated as a charge against the share premium account. Economically, € 0.50 of this distribution is attributed to the 2013 Group's performance and € 0.50 as a return to shareholders related to the asset disposals in progress.
Colgate-Palmolive reports EPS in-line, revs in-line; guides FY14 revs above consensus
Reports Q1 (Mar) earnings of $0.68 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate consensus of $0.68; revenues rose 0.2% year/year to $4.33 bln vs the $4.33 bln consensus.
- Co issues upside guidance for FY14, lowers FY14 revs to +4-5% dollar basis (prior guidance of 4.5%-5.5%) calc to ~$18.11-18.21 bln vs. $17.76 bln Capital IQ Consensus Estimate.
- Gross profit margin was 58.4% in first quarter 2014 versus 58.3% in the year ago quarter. Excluding the above noted items in both periods, Gross profit margin was 58.6% in first quarter 2014, even with the year ago quarter, as higher pricing, cost savings from the Company's funding-the-growth initiatives and cost savings from the 2012 Restructuring Program were offset by higher raw and packaging material costs, which included the impact of foreign exchange transaction costs.
- North America Net sales increased 2.5% in first quarter 2014. Unit volume increased 4.5% with 1.0% lower pricing due to increased promotional activities and 1.0% negative foreign exchange. Organic sales increased 3.5% during the quarter. Latin America Net sales decreased 5.0% in first quarter 2014.
- Unit volume increased 4.5% with 6.5% higher pricing and 16.0% negative foreign exchange. Volume gains were led by Venezuela, Brazil, Mexico and Colombia. Organic sales for Latin America increased 11.0% during the quarter. Asia Net sales increased 2.5% during first quarter 2014.
- Unit volume increased 7.0%, with 0.5% higher pricing and 5.0% negative foreign exchange. Volume gains were led by the Greater China region, India, the Philippines and Malaysia. Organic sales for Asia increased 7.5%.
Ford Motor misses by $0.06, reports revs in-line; reaffirms FY14 guidance
Reports Q1 (Mar) earnings of $0.25 per share, excluding non-recurring items, $0.06 worse than the Capital IQ Consensus Estimate of $0.31; auto sector rev was unchanged from the year-ago period at $33.9 bln.
"The underlying run rate of our business in the first quarter was strong," said Bob Shanks, executive vice president and chief financial officer. "We are particularly encouraged by Asia Pacific's record profit, driven by very positive customer response to our new products, underscoring the traction and success of our growth plans in what is now the largest market in the world. In addition, the improvement in Europe confirms the progress we continue to make toward achieving a profit in 2015."
- Total Automotive first quarter wholesale volume increased by 6 percent from a year ago, while Automotive revenue was unchanged. The higher volume is more than explained by higher industry volumes in all regions except South America, improved market share in Asia Pacific and a favorable change in dealer stocks. The decrease in operating margin and pre-tax profit for the first quarter is more than explained by lower results in North America and South America.
- Automotive operating-related cash flow of $1.2 billion. Ford ended first quarter with Automotive gross cash of $25.2 billion, exceeding debt by $9.5 billion, and a strong liquidity position of $36.6 billion
- Wholesale volume and revenue both increased from a year ago, with continued market share gains in Asia Pacific, driven by record market share in China
- Asia Pacific reported record profit for any quarter; North America and Middle East & Africa were profitable; Europe reduced its loss by more than half and South America incurred a larger loss compared with a year ago
- Ford Credit once again delivered solid results
"The underlying run rate of our business in the first quarter was strong," said Bob Shanks, executive vice president and chief financial officer. "We are particularly encouraged by Asia Pacific's record profit, driven by very positive customer response to our new products, underscoring the traction and success of our growth plans in what is now the largest market in the world. In addition, the improvement in Europe confirms the progress we continue to make toward achieving a profit in 2015."
Dana Holding misses by $0.06, misses on revs; guides FY14 below consensus
Reports Q1 (Mar) earnings of $0.32 per share, $0.06 worse than the Capital IQ Consensus Estimate of $0.38; revenues rose 0.7% year/year to $1.69 bln vs the $1.71 bln consensus.
- Co affirmed its financial targets for full-year 2014, with expected results at the low end of the range for full-year sales, adjusted EBITDA, and diluted adjusted EPS: sees EPS at low end of $1.82-1.86 vs. $1.89 Capital IQ Consensus Estimate; sees FY14 revs at low end of $6.8-6.9 bln vs. $6.9 bln Capital IQ Consensus Estimate.
- "Continuing our momentum from 2013, Dana's first-quarter results were in line with our expectations, even with the continued instability in Venezuela and the resulting currency effects reflected in our earnings results. We continued to improve our operating margin performance, with strong results posted across most of our business units... As our end markets expand in the future, we are well positioned to profitably grow the top line through booked business and new sales awards while achieving continued margin expansion and strong cash flow generation."
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* Danone - (€52)
- Stock has UP Unilver by 11% YTD, performed in line with EuroStoxx Food & beverage
- Street consensus is on hold mode (50% on Hold, 20% Sell, 20% buy) as most of big house are negative on the name
- Stock is trading in line with peers valuation with some risk as last set of results was not great but better than consensus.
- Margin Focus on H2 will be the catalyst for investors to change their view
- Investors still pricing a possibility of an expensive M&A in the US (Mead Johnson - trading on hist, high after numbers yest, €13bil mkt cap at that price) that will be a bad news for Danone regarding the poor record of the company in M&A. Deal could only happen with another predator that could be less negative
- Russian exposure has been a negative point also for the company
- Structure of Capital make the company weak in term of any investors keen to build a stake and move the governance (the stock has been under scrutiny of few activist)
- Next catalyst will be the investor event in NY on 23rd/24th of June
- on a chart point of view the stock is trading not far from good support 51.10,.
I expect the stock to trade in line with market
* Unilever - (€30.10)
- Stock has OP SX3P (Food & Beverage) by 5% YTD
- Stock has rebound on Good Growth & consumption Prospect in the US, on EM exposure and portfolio and business review and cession market fully valued that and will wait for much more to take the stock higher
- Stock looked pretty well priced here in line with peers with very few new positive catalysts
- On a chart point of view 31.2 appears to be a strong resistance, I expect the stock to come back on the 28.75 levles
- I expect the stock to UP the market reagrding performance and catalyst fading
The Spread is trsading on the 1.7243 ratio level, I expect the srpead to come back quickly on the 1.80 level thjat will be my target (+4.5%)
Early premarket gappers
Gapping up: SYNA +10.9%, BLDP +10.8%, ECHO +9.6%, CUDA +8.3%, CLH +7.8%, MKTO +7.8%, LSCC +6.7%, DECK +6.5%, PDFS +6.3%, INUV +6.3%, GIMO +5.7%, BIDU +4.5%, SPWR +4.3%, DV +4.1%, HBI +4.1%, CRUS +3.7%, PSO +3.6%, ALTR +3.4%, YNDX +2.7%, IMGN +2.6%, UA +2.5%, SPLS +2.5%, QIHU +1.8%, DANG +1.7%, MMSI +1.7%, ALK +1.6%, BV+1.5%, YOKU +1.4%, WB +1.3%, TSL +1.3%, MSFT +1.3%, SBUX +1.3%, VIPS +1.2%, SOHU +1%, BP +1%, QLIK +1%, OTEX +0.9%
Gapping down: YGE -10%, EOPN -9.8%, CAMP -8.6%, MLNX -6.4%, AFOP -5.8%, DGII -5.8%, KLAC -5.5%, PLUG -5.2%, V -4.5%, NBG -4.2%, EW -4.1%, P -3.8%, SNP -3.6%, ANR -3.1%, CB -2.7%, CLMS -2.7%, VRSN -2.5%, SNV -2.4%, BRCM -2.1%, EMN -2.1%, MA -2%, FSL -2%, AWAY -1.9%, HSBC -1.7%, AMZN -1.5%, NRZ -1.4%, BAC -1.3%, E -1.3%, RIG -1.1%, CLF-1.1%, ALV -1%, VZ -0.9%, NFLX -0.7%
Gapping down: YGE -10%, EOPN -9.8%, CAMP -8.6%, MLNX -6.4%, AFOP -5.8%, DGII -5.8%, KLAC -5.5%, PLUG -5.2%, V -4.5%, NBG -4.2%, EW -4.1%, P -3.8%, SNP -3.6%, ANR -3.1%, CB -2.7%, CLMS -2.7%, VRSN -2.5%, SNV -2.4%, BRCM -2.1%, EMN -2.1%, MA -2%, FSL -2%, AWAY -1.9%, HSBC -1.7%, AMZN -1.5%, NRZ -1.4%, BAC -1.3%, E -1.3%, RIG -1.1%, CLF-1.1%, ALV -1%, VZ -0.9%, NFLX -0.7%
Tyco beats by $0.04, reports revs in-line; on track for 15% EPS CAGR tgt through 2015
Reports Q2 (Mar) earnings of $0.45 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.41; revenues rose 0.5% year/year to $2.49 bln vs the $2.5 bln consensus.
- Organic revenue grew 2% in the quarter, with 1.5% growth in service, 1% growth in installation and 2% growth in products. Acquisitions contributed two percentage points of growth, which was more than offset by the impact of divestitures and changes in foreign currency exchange rates.
- "We had another strong performance in the second quarter, demonstrating our ongoing effectiveness at executing on our growth strategy and operational improvement initiatives. We are starting to see an uplift in the top line, as continued growth in service and products revenue is now being supplemented with growth in installation revenue. "Looking forward, the announced divestiture of our ADT Korea business and the sale of our remaining interest in Atkore provide an opportunity to redeploy significant capital to maximize long-term shareholder value. At the halfway point in our three year growth strategy outlined at our 2012 Investor Day, we are well positioned to deliver on our 15% EPS CAGR target through 2015."