Filings, Offerings and Pricings
Filings:
- Splunk (SPLK) filed for a 6 mln share common stock shelf offering.
- ePlus (PLUS) filed for a $200 mln mixed securities shelf offering and a ~2.87 mln share common stock offering by selling stockholders.
- Synaptics (SYNA) filed for a ~1.954 mln share common stock offering by selling stockholders.
- Avino Silver & Gold (ASM) filed for a $13.5 mln mixed securities shelf offering.
- Ampliphi Biosciences (APHB) filed for a ~73.362 mln share common stock offering by selling stockholders.
- JGWPT Holdings (JGW) filedf or a ~853.7 mln share Class A common stock shelf offering to certain holders of common membership interests in JGWPT Holdings, LLC
- Ashford Hospitality Prime (AHP) announced offering of 8 mln shares of common stock.
- NanoString Technologies (NSTG) launched follow-on offering of $55 mln of its common stock.
- Nektar Therapeutics (NKTR) filed mixed securities shelf offering for an undisclosed amount; also announced public offering of 8.5 mln shares of common stock.
- Keryx Biopharma (KERX) commenced a $90 mln underwritten public offering of shares of its common stock.
- BRE Properties (BRE) announced a redemption of 6.75% Series D Cumulative Redemable Preferred Stock.
- Frontline (FRO) announced it has a prospectus supplement covering the amendment and restatement of its previously announced equity distribution agreement, which FRO may offer and sell, at any time and from time to time in an at-the-market offering, was increased to having aggregate sales proceeds of up to $100.0 mln, from up to $40.0 mln.
- Envision Healthcare Holdings (EVHC) announced it filed for a ~27.5 mln share common stock offering by selling stockholders.
- Alliance One (AOI) increased purchase price of and extends tender offer for any and up to all of its outstanding 5 1/2% Convertible Senior Subordinated Notes due 2014.
KORS (reports earnings Feb 4 before the open), RL (Feb 5 before the open), FOSL / JWN (expected mid Feb), TUMI / GES / TIF (expected mid March), SIG (expected late March). A few overseas based retailers recently update guidance -- BURBY traded higher after reporting Q3 comps +12% (see Jan 15) and HNNMY reported update last week - Dec total sales + 10% YoY
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Conf call :
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Conf call :
Earnings Conference Call: (888)405-2080 on Jan 22 2014 8:30AM
Coach misses by $0.05, misses on revs; N Am comps of -13.6% (52.55 )
Reports Q2 (Dec) earnings of $1.06 per share, $0.05 worse than the Capital IQ Consensus Estimate of $1.11; revenues fell 5.6% year/year to $1.42 bln vs the $1.49 bln consensus.
- Co reports Q2 N Am comps of -13.6% (previously guided N Am comp run rate to be down HSD for the balance of FY14).
- Co reports Q2 gross margin of 69.2% vs 69.7% estimate and 72.2% year ago.
- Sales in China rose about 25% and the business is on track to meet annual guidance of $530 million. In Japan, sales declined 2% on a constant-currency basis, while dollar sales were 21% below the prior year, reflecting the weaker yen. Shipments into international wholesale accounts increased significantly, as expected, due to timing of a Chinese holiday while underlying POS sales trends increased slightly.
- "During the holiday quarter, total sales fell slightly in constant currency as weakness in our North American women's bag and accessories business offset strong growth in Men's, footwear, and robust results in emerging Asian markets and Europe. We continued to be disappointed by our performance in North America, which was impacted by substantially lower traffic in our stores and by our decision to limit access to our e-factory flash sales site. At the same time, China results remained resilient with total sales growing about 25% and comparable store sales rising at a double digit rate. Importantly, we continued to advance our transformation initiatives and position Coach to launch Executive Creative Director Stuart Vevers's first collection in September."
--> CREE is +2.5% in the premarket.
Cree: Color on Quarter
- Stifel notes Cree reported largely in-line results for the quarter when we back out a one-time tax gain. Guidance for the March quarter was wide with the mid-point below consensus. They see minimal near-term leverage and they need to see June play out (new bulb customers, lower ASPs introduced, heavy marketing spend and no seasonal impacts) to get more comfortable with the story, thus they reiterate their Hold rating.
- Needham notes Cree delivered a strong F2Q14 report but provided seasonally softer guidance that is below consensus. Given the strong secular trend coupled with its momentum in light bulbs and fixtures, they have no reason to believe Cree will not deliver another year of strong growth. On the other hand, capacity constraints are limiting sales of higher-margin LED components, and they believe a mix shift toward more bulbs will continue to prevent gross margin expansion in the next few quarters. They are incrementally more constructive on Cree based on its strong business momentum in LED lighting, but view the stock as fairly valued trading at a CY15E P/E of 29x.
- DA Davidson is raising their tg to $66 from $65; although they expect CREE will maintain its dominant position in the growing LED general lighting market, they are concerned that muted margins will offset top line improvements. With margin concerns overshadowing unit growth we continue to remain on the sidelines.
Gapping down
In reaction to disappointing earnings/guidance: AMD -8.9%, COH -6.8%, IBKR -4.6%, ABB -4.4%, BOBE -4.3%, PH -3.8%, XLNX -3.7%, IBM -3.4%, FNB -2.7% (light volume), TEL -2.3%, FCX -1.9%, GD -1.8% (light volume), VMW -1.6% (will acquire AirWatch for ~$1.175 bln in cash and ~$365 mln of installment payments and assumed unvested equity; sees Q4 revs slightly above consensus), FE -1.4% (also cuts dividend), TXN -1%, USB -0.7% (light volume), NSC -0.6%, ZION -0.5% ( Updates Effects Of Volcker Rule; The combined impact of the Volcker Rule and the IFR, and Zions' decision to sell certain CDOs, is expected to result in pre-tax securities impairment charges of between $135 million and $145 million), ATI -0.5% .
Financial related names showing weakness: SID -5%, IRE -3.3%, NBG -2.6%, BBVA -2.3%, ING -2.1%, PUK -2%, DB -1.5%, RBS -1.4%, SAN -1.2%.
Select metals/mining stocks trading lower: GFI -2%, AU -1.8%, EGO -1.2% ABX -0.8% (downgraded to Underweight from Neutral at HSBC Securities), BHP -0.3% (downgraded to Neutral from Overweight at HSBC Securities) .
A few European telecom names are lower: PT -1.7%, ORAN -1.4%
Other news: ABIO -12.7% (still checking), AMAG -8.5% (receives Complete Response Letter from U.S. Food and Drug Administration for the Supplemental New Drug Application for Feraheme for the Broader IDA Indication), KERX -5.1% (commences a $90 mln underwritten public offering of shares of its common stock), NKTR -4.8% (files for shelf offering, announces public offering of 8,500,000 shares of common stock), GRPN -2.7% (still checking), CTIC -2.6% (modestly pulling back), SPLK -1.8% (Splunk files for 6,000,000 share common stock shelf offering), ONVO -1.2% ( trading lower after Citron confirmed ONVO short position on CNBC after the close), HPQ -1% (down with IBM), JE -0.9% (announces proposed convertible bond offering and intention to redeem 6.0% convertible debentures due September 30, 2014), MTW -0.9% (sells interest in Manitowoc Dong Yue Heavy Machinery Co; expected to result in loss of $36 mln), SYNA -0.5% (files for ~1.95 mln share common stock offering by selling shareholders).
Analyst comments: MOS -2.7% (downgraded to Sell from Neutral at Goldman ), VZ -0.8% (downgraded to Sector Perform from Outperform at Pacific Crest ), ORCL -0.8% (downgraded to Perform from Outperform at Oppenheimer), TRGP -0.7% (downgraded to Hold from Buy at Jefferies), TRV -0.5% (downgraded to Outperform at RBC Capital Mkts)
Financial related names showing weakness: SID -5%, IRE -3.3%, NBG -2.6%, BBVA -2.3%, ING -2.1%, PUK -2%, DB -1.5%, RBS -1.4%, SAN -1.2%.
Select metals/mining stocks trading lower: GFI -2%, AU -1.8%, EGO -1.2% ABX -0.8% (downgraded to Underweight from Neutral at HSBC Securities), BHP -0.3% (downgraded to Neutral from Overweight at HSBC Securities) .
A few European telecom names are lower: PT -1.7%, ORAN -1.4%
Other news: ABIO -12.7% (still checking), AMAG -8.5% (receives Complete Response Letter from U.S. Food and Drug Administration for the Supplemental New Drug Application for Feraheme for the Broader IDA Indication), KERX -5.1% (commences a $90 mln underwritten public offering of shares of its common stock), NKTR -4.8% (files for shelf offering, announces public offering of 8,500,000 shares of common stock), GRPN -2.7% (still checking), CTIC -2.6% (modestly pulling back), SPLK -1.8% (Splunk files for 6,000,000 share common stock shelf offering), ONVO -1.2% ( trading lower after Citron confirmed ONVO short position on CNBC after the close), HPQ -1% (down with IBM), JE -0.9% (announces proposed convertible bond offering and intention to redeem 6.0% convertible debentures due September 30, 2014), MTW -0.9% (sells interest in Manitowoc Dong Yue Heavy Machinery Co; expected to result in loss of $36 mln), SYNA -0.5% (files for ~1.95 mln share common stock offering by selling shareholders).
Analyst comments: MOS -2.7% (downgraded to Sell from Neutral at Goldman ), VZ -0.8% (downgraded to Sector Perform from Outperform at Pacific Crest ), ORCL -0.8% (downgraded to Perform from Outperform at Oppenheimer), TRGP -0.7% (downgraded to Hold from Buy at Jefferies), TRV -0.5% (downgraded to Outperform at RBC Capital Mkts)
Freeport-McMoRan beats by $0.06, misses on revs
Reports Q4 (Dec) earnings of $0.86 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $0.80; revenues rose 30.4% year/year to $5.88 bln vs the $6.4 bln consensus.
- Fourth-quarter 2013 consolidated copper sales of 1.14 billion pounds were higher than fourth-quarter 2012 sales of 972 million pounds reflecting improved volumes throughout FCX's global mining operations.
- Fourth-quarter 2013 consolidated gold sales of 512 thousand ounces were higher than fourth-quarter 2012 sales of 254 thousand ounces and the October 2013 estimate of 390 thousand ounces reflecting higher ore grades and improved operating performance in Indonesia.
- Fourth-quarter 2013 consolidated molybdenum sales of 22 million pounds were higher than fourth-quarter 2012 sales of 21 million pounds and the October 2013 estimate of 21 million pounds.
- Fourth-quarter 2013 sales from oil and gas operations of 16.6 MMBOE, including 11.7 million barrels (MMBbls) of crude oil, 22.9 billion cubic feet (Bcf) of natural gas and 1.1 MMBbls of natural gas liquids (NGLs), were higher than the October 2013 estimate of 16 MMBOE primarily reflecting higher Eagle Ford production.
- Consolidated sales for the year 2014 are expected to approximate 4.4 billion pounds of copper, 1.7 million ounces of gold, 95 million pounds of molybdenum and 60.7 MMBOE, including 1.0 billion pounds of copper, 325 thousand ounces of gold, 25 million pounds of molybdenum and 15.3 MMBOE in first-quarter 2014.
- Mining Unit Net Cash Costs- Consolidated average unit net cash costs (net of by-product credits) for FCX's copper mines of $1.16 per pound of copper in fourth-quarter 2013 were significantly lower than unit net cash costs of $1.54 per pound in fourth-quarter 2012 and the previous estimate of $1.46 per pound primarily reflecting higher copper and gold sales volumes and ongoing cost control efforts. For the year 2013, consolidated unit net cash costs (net of by-product credits) averaged $1.49 per pound of copper compared with the year 2012 average of $1.48 per pound. Assuming average prices of $1,200 per ounce of gold and $9.50 per pound of molybdenum and achievement of current sales volume and cost estimates, consolidated unit net cash costs (net of by-product credits) for FCX's copper mining operations are expected to average $1.45 per pound of copper for the year 2014.
- FCX's preliminary estimated consolidated recoverable proven and probable reserves from its mines at December 31, 2013, include 111.2 billion pounds of copper, 31.3 million ounces of gold and 3.26 billion pounds of molybdenum, which were determined using long-term average prices of $2.00 per pound for copper, $1,000 per ounce for gold and $10.00 per pound for molybdenum.
- Operating Cash Flows- FCX generated operating cash flows of $2.3 billion in fourth-quarter 2013 and $6.1 billion for the year 2013. FCX's consolidated operating cash flows are estimated to approximate $9 billion for the year 2014..
Gapping up
In reaction to strong earnings/guidance: SMCI +15.7% (also target raised to $23 at Needham), NUAN +8.1% (also appointed Bill Robbins as executive vice president, Worldwide Sales), XRS +8%, EAT +5% (ticking higher), ASML +4.4%, HURN +4.2%, TPLM +3.1%, CA +3%, WWD +2.6%, CREE +1.9%, ABT +1.2%, UTX +0.4%.
M&A news: NOVB +23.8% (North Valley Bancorp and TriCo Bancshares announce agreement to merge), MKTG +0.2% (has acquired Push IO; financial terms not disclosed).
Other news: VISN +43.8% (announces exclusive strategic cooperation with Baidu Games (BIDU) to promote the Baidu Games brand and Baidu's gaming products across VISN's digital television advertising networks nationwide), DRWI +22.6% (has been selected as a microwave solutions provider for backhaul connectivity as part of Gogo's (GOGO) ongoing expansion efforts), LPTN +7.1% (Granted Key U.S. Patent Related to Ocular Drug Program, Isonep), GERN +6.9% (still checking), PSTI +5.5% (still checking), PRAN +5.1% (disclosed that it plans to commence US investor roadshow), KOOL +4.3% (continued strength), ZLCS +4.2% (following late move higher), IDRA +3.9% (announces publication of new data demonstrating impact of inhibiting TLRs 7, 8, and 9 in a Preclinical Model of Autoimmune Disease; Gene expression analyses showed that treatment with either antagonist normalized expression of IL-17-induced genes), YRCW +3.1% ( Teamster local unions recommend approval of tentative agreement with YRCW), TWI +2.6% (Titan Intl: MHR Fund Management discloses 10.9% active stake in 13D filing; intend to seek to engage in discussions with management), LEDS +2.5% (up with CREE), GTE +2.4% (confirms significant reserves at the Breana Oil Field, Peru), HIMX +2.3% (continued strength following late BofA/Merrill price tgt increase), ARMH +2.1% (boosted by ASML and NUAN), GOLD +1.3% (still checking for anything specific), GOGO +1.6% (still checking), TA +1.5% (settles previously disclosed antitrust case), AA+1.4% (favorable commentary on Mad Money), BBRY +1.2% ( announces plans to divest Canadian Real Estate Holdings; will not comment on potential value of a sale), TSLA +1.1% (continued strength; Regulators say Elon Musk has a point regarding use of the word 'recall' to discuss TSLA fixes), RNO +1.1% (provided Q4 operational update; Pennyrile production remains on target for mid-2014), STM +0.9% (still checking for anything specific, several tech names reported earnings/guidance), SBAC +0.2% ( Lone Pine Capital discloses 6.4% passive stake in 13G filing).
Analyst comments: ICPT +2.7% (fair value tgt increased to $449 from $72 at Wedbush; suggests name as 'likely acquisition' ), CERN +0.7% (upgraded to Strong Buy from Neutral at ISI Group), DEO +0.2% (added to most preferred consumer staples/luxury list at BofA/Merrill)
M&A news: NOVB +23.8% (North Valley Bancorp and TriCo Bancshares announce agreement to merge), MKTG +0.2% (has acquired Push IO; financial terms not disclosed).
Other news: VISN +43.8% (announces exclusive strategic cooperation with Baidu Games (BIDU) to promote the Baidu Games brand and Baidu's gaming products across VISN's digital television advertising networks nationwide), DRWI +22.6% (has been selected as a microwave solutions provider for backhaul connectivity as part of Gogo's (GOGO) ongoing expansion efforts), LPTN +7.1% (Granted Key U.S. Patent Related to Ocular Drug Program, Isonep), GERN +6.9% (still checking), PSTI +5.5% (still checking), PRAN +5.1% (disclosed that it plans to commence US investor roadshow), KOOL +4.3% (continued strength), ZLCS +4.2% (following late move higher), IDRA +3.9% (announces publication of new data demonstrating impact of inhibiting TLRs 7, 8, and 9 in a Preclinical Model of Autoimmune Disease; Gene expression analyses showed that treatment with either antagonist normalized expression of IL-17-induced genes), YRCW +3.1% ( Teamster local unions recommend approval of tentative agreement with YRCW), TWI +2.6% (Titan Intl: MHR Fund Management discloses 10.9% active stake in 13D filing; intend to seek to engage in discussions with management), LEDS +2.5% (up with CREE), GTE +2.4% (confirms significant reserves at the Breana Oil Field, Peru), HIMX +2.3% (continued strength following late BofA/Merrill price tgt increase), ARMH +2.1% (boosted by ASML and NUAN), GOLD +1.3% (still checking for anything specific), GOGO +1.6% (still checking), TA +1.5% (settles previously disclosed antitrust case), AA+1.4% (favorable commentary on Mad Money), BBRY +1.2% ( announces plans to divest Canadian Real Estate Holdings; will not comment on potential value of a sale), TSLA +1.1% (continued strength; Regulators say Elon Musk has a point regarding use of the word 'recall' to discuss TSLA fixes), RNO +1.1% (provided Q4 operational update; Pennyrile production remains on target for mid-2014), STM +0.9% (still checking for anything specific, several tech names reported earnings/guidance), SBAC +0.2% ( Lone Pine Capital discloses 6.4% passive stake in 13G filing).
Analyst comments: ICPT +2.7% (fair value tgt increased to $449 from $72 at Wedbush; suggests name as 'likely acquisition' ), CERN +0.7% (upgraded to Strong Buy from Neutral at ISI Group), DEO +0.2% (added to most preferred consumer staples/luxury list at BofA/Merrill)
Abbott Labs reports EPS in-line, misses on revs; guides FY14 EPS in-line; plans to repurchase $2 bln in stock this year
Reports Q4 (Dec) earnings of $0.58 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate consensus of $0.58; revenues rose 0.4% year/year to $5.66 bln vs the $5.72 bln consensus. Ex-FX, Q4 worldwide sales increased 3.3 percent on an operational basis. Reported sales increased 0.4 percent, including an unfavorable 2.9 percent effect of foreign exchange. The previously reported sales disruption in International Nutrition that occurred in August is estimated to have reduced Abbott's total worldwide sales growth by ~1.5 percentage points.
Co issues in-line guidance for FY14, sees EPS of 2.21-2.26 vs. $2.21 Capital IQ Consensus. In 2014, Abbott projects an increase in its share repurchases to more than $2 billion.
Co issues in-line guidance for FY14, sees EPS of 2.21-2.26 vs. $2.21 Capital IQ Consensus. In 2014, Abbott projects an increase in its share repurchases to more than $2 billion.