>>> Pepsico Inc Reports Q1 $0.83 adj v $0.75e, R$12.6B v $12.5Be

Pepsico Inc Reports Q1 $0.83 adj v $0.75e, R$12.6B v $12.5Be- Guides FY14 core EPS % implies $ v $4.53e (prior +7% implies $4.68 on Feb 13th) - Guides FY14 Rev '' v $67.4Be (prior 'to grow mid-single digits') - Guides FY14 cash flow from operations $ (prior over $10B) - Guides FY14 Fx impact on EPS %, impact on Rev % (prior impact on EPS -4%, impact

>>> US Early premarket gappers

Early premarket gappers
Gapping up: AAU +31%, PLXS +8%, SNDK +5.8%, TPLM +4.1%, SD +3.4%, URI +3%, AF +2.9%, NE +2.7%, NFLX +2.6%, ALSN +2.5%, EEFT +1.9%, TTM +1.8%, END +1.6%, PLUG +1.3%, SYT +1.1%, MU +0.7%

Gapping down: REGI -15.7%, SSN -8.7%, SNH -5.6%, SYNM -4.3%, EFII -4.2%, IBM -4.1%, SAP -4.1%, DEO -3.8%, NSR -3.4%, GOOG -2.6%, BIDU -2.1%, YELP -2.1%, MPET -2%, SLM -2%, FB -1.9%, YY -1.8%, BBL -1.5%, SPWR -1.3%, BHP -1.2%, AMZN -1.1%, LNKD -1.1%, RIO -1%, BUD -0.9%, FEYE -0.9%, HPQ -0.7%, GDX -0.6%

>>> General Electric beats by $0.01, reports revs in-line; 2014 framework unchan

General Electric beats by $0.01, reports revs in-line; 2014 framework unchanged (26.12)
Reports Q1 (Mar) earnings of $0.33 per share, $0.01 better than the Capital IQ Consensus of $0.32; revenues fell 2.2% year/year to $34.18 bln vs the $34.43 bln consensus.
  • Industrial sales of $24 billion increased 8% compared to the first quarter of 2013. GECC revenues of $10.5 billion decreased 8% from last year. Industrial segment profits rose 12% to $3.3 billion. Industrial segment margins improved 50 basis points over the prior-year period. Industrial segment revenues grew 8%, with organic growth of 8%. Growth market revenues were up 7% for the quarter, with double-digit growth in five of nine growth regions. Services revenues grew 3%, with double-digit growth in Aviation and Oil & Gas. Equipment revenues grew 12%, on strong new product introductions and solid share positions. The breadth of the GE portfolio was reflected in the quarter as the Company offset market volatility in Appliances, Healthcare, and Mining.
  • Infrastructure orders for the quarter were $23.7 billion, flat with the year-ago period. GE's backlog of equipment and services at the end of the quarter was $245 billion, with increases in every segment over the year-ago period.
  • GE Capital earnings were flat, with ENI (excluding cash and equivalents) at $374 billion at quarter-end, down $7 billion from last quarter. General Electric Capital Corporation's (GECC) estimated Tier 1 common ratio (Basel 1) rose 32 basis points to 11.4%, and net interest margin was strong at 4.9%. During the quarter, GECC paid $500 million in dividends to the parent.
  • Also during the quarter, GE filed a registration statement with the SEC for the IPO of its North American Retail Finance business, the first step in a planned, staged exit from that business. The Company made good progress in accelerating efforts to achieve its simplification goals.
  • GE is on track to achieve its goal of $1 billion or more in structural cost-out for the year. Industrial structural costs in the first quarter were down $254 million versus the prior-year period, driven by simplification initiatives and benefits from restructuring investments.
  • "We're off to a good start to the year, and our 2014 framework remains unchanged. The environment is consistent with our expectations, with a positive bias. The GE team is executing with strong organic growth, consistent margin enhancement, cash growth with disciplined allocation, and a stronger GE Capital. We are on track for our Retail Finance IPO and remain committed to a GE that has 70% of our earnings from the Industrial businesses. GE is in good shape."

>>> Buy Marks& Spencer Sell Ahold

{MKS LN Equity AH NA Equity GRT D <GO>}

* Marks & Spencer
- Company pulished on the 10/04 and was weak because of misunderstanding on Q4 Gross Margin Weakness, Company is expected to publish FY on the 20th of May...but numbers have been adjusted now
- M&S generak merchamfise should continue to head in the good direction, food is quite isolated from a branded food price war
- Strong execution from management and potential cash return could help the stock to rebound
- Historically MKS is trading with a 20% to UK Market P/E, trading only with 5% now

* Ahold
- Since Last publication on 27th of Feb stock outperformed the SXRP by 7%, publication can justify that move but there is no clear reason on fumdamentals
- weak LFL sales growth in the US (-2.1%) and in the Netherlands (-1.0%),
- Risk of stiffer competition and margin rebasing in the Dutch market (more powerful competitors, with in particular Jumbo)
- Still no real signs of pick-up in volumes or food inflation in the US
- It looks fully valued to us – trading at a 2014e P/E ratio of 13.7x vs 12.8x for peers

* The spread is trading on bery low historical levels - we can see a quick reversal, historical lows (-3.3% / 29.86 )
MKS 410 levels appear to be a strong support, stock can trade quickly to 460/470 levles
AH : 14 levels are a strong resistance, could see stock trading back on support 200d MA on 13 levels

BUY MKS SELL AHOLD

>>> Buy Remy Cointreau / Sell LVMH - Weak Q1 was expected, good opp. to step in

{RCO FP Equity MC FP Equity GRT D}

* Remy Cointreau (RCO FP) - Buy
- Q4 Sales a 3% miss, Cognac still weak, we could see some more dwg to consensus EPS, but pfr story is not there anymore.
- Valuation still not cheap regarding the Cognac business but not too far from historical premium the stock is trading with the sector
- RCO is highly correlated to Luxury trend in China and most of dwg has been done
- Few weeks ago M&A rumors re-surface with a blog mentionning Brown& Forman was looking to the company, this blog was mentioning a €85/share minimum price on any deal to get the family to table.
- 55/56 appears to be a strong support.

* LVMH (MC FP) - Sell
- Numbers were published on the 9th of April, the analysis fo numbers show us that we continue to see a down trend in volume that has been so far compensated by price increase, main point of the strategy remained of potential of price increase and maintain margin.
- Stock is trading not far from historical highs (3.5%) and even if we can test this level I don't expect a major break up


Buy Remy Cointreau Sell LVMH - expecting MC to not really move and RCO to go back to the 70's levels

Laurent