TheChek News Flow

Solar names lower following disappointing TSL guidance: TSL-2.9% (lowers Q1 shipment guidance; estimates its solar module shipments to be in the range of 540 MW to 570 MW, including 20 MW to 30 MW for its downstream projects), JKS -2.6%, CSIQ -4.4%, CSUN -2.8%.

Select European financial related names showing weakness: NBG -14% (planning EUR 2.1 billion capital raise, according to reports), ING -2.2%, BCS -1.4%, BBVA -0.8%.

Other news: CVM -12.6% (announces proposed public offering of common stock and six month warrants), NQ -9.4% (Muddy Waters Research tweets that NQ Mobile Q4 was 'dismal'), MDT -5.4% ( Federal Court orders preliminary injunction on U.S. Sales of Medtronic's infringing Transcatheter Valve; downgraded to Neutral from Overweight at JP Morgan ), ALU -4.5% (still checking), ERIC-4% (announces change in Executive leadership team), ABBV -3.1% (presents late-breaking results from TURQUOISE-II study in chronic HepatitisC patients with cirrhosis ), BBRY -1.9% (still checking), ASML -1.8% (still checking), YY -1.6% (still checking), AA -1.5% (downgraded at Fitch ), CCL -1.4% (still checking), NOK -1.3% (still checking), ABB -1.2% (still checking), YNDX -1.1% (Russia names were under pressure), BP -0.9% (still checking), MSFT -0.8% (fined $731 mln by EU over browser miscue. according to reports ; downgraded to Hold from Buy at Deutsche Bank ), NUS -0.6% (following late move lower on HLF concerns), JNJ -0.4% (plans to end plans for anti-wrinkle treatment that was to challenge Allergan's Botox, according to reports out Friday prior to close; downgraded to Hold from Buy at Jefferies), GSK -0.3% (may face criminal investigation in Poland, according to reports ).

Analyst comments: STM -2.5% (downgraded to Sell from Neutral at UBS), GLW -0.9% ( downgraded to Hold from Buy at Stifel).

In reaction to strong earnings/guidance: WBMD +5.4%, C +2%.

M&A news: NBS +13% ( to acquire California Stem Cell; agreement provides for the issuance of an aggregate of up to ~ 5.33 mln shares of NBS common stock in exchange for all of the CSC outstanding stock and options), CHDX halted (Chindex Announces Receipt of Superior Proposal to acquire all of the outstanding shares of Chindex common stock for $23 per share in cash).

Select financial related names showing strength boosted by C results: MS +1.8% (modestly higher following C results and on reports that the co may divest Learning Care unit in near term), WFC +1.5%, GS +1.0%, USB +0.9%, JPM +0.5% (Barron's profiles positive view on JP Morgan), .

Select metals/mining stocks trading higher: HMY +2.5%, GOLD +2.2%, GG +2.1%, ABX +1% .

European consumer discretionary names trading higher: DEO +3.1% BUD +1.8% and UL +1.8%, UN +1.4% .

Other news: LXRX +19.5% (announces positive, top-line results in a Phase 2 clinical trial of LX4211 in type 1 diabetes, which achieved the primary endpoint of reducing mealtime insulin use as well as several secondary endpoints, including improved glycemic control ), MSTX +16.4% (announces new data supporting MST-188 In Sickle Cell Disease; MST-188 decreased a marker of inflammation and red blood cell aggregation), HTM +15.6% ( has acquired geothermal property for evaluation of a new project at Vale, Oregon), EW +12.4% (Federal Court orders preliminary injunction on U.S. Sales of Medtronic's infringing Transcatheter Valve; Edwards Lifesciences upgraded to Neutral from Underweight at JP Morgan), GDP +8.7% (announces completion of its Blades 33H-1 (66.7% WI) well in Tangipahoa Parish, Louisiana; well has achieved a peak 24-hour average production rate to date of 1,270 BOE per day, comprised of 1,250 barrels of oil and 115 Mcf of gas on a 14/64 inch choke from an ~ 5,000 foot lateral), CYTX +6.7% ( announces publication of safety and efficacy data from a 36 month European clinical trial of Cytori Cell Therapy in patients with chronic ischemic heart failure; PRECISE data demonstrate sustained safety and benefit and 18 months), JASO +4.6% (expects total shipment volume in the first quarter of 2014 to exceed 620 MW, ahead of its previously announced guidance of 580 MW to 610 MW), RDNT +3.2% (still checking), ICPT +2.3% (reports additional positive data from POISE Trial at EASL late-breaker session), RAD+2.3% (positive comments on Friday's Mad Money), DDD +1.9% (announced a partnership with Staples in a pilot of 3D printing services in two Staples stores in New York City and Los Angeles; initiated with a Neutral at Goldman; tgt $63), S +1.8% (Sprint and Spotify plan streaming music partnership, according to reports ), JCP +1.3% (still checking), HLF +0.8% (following late sell-off on reports of criminal investigation), VNO +0.5% (discloses spin off of its shopping center business), TOT +0.5% (Total and its JV partners launch development of Kaombo, an ultra-deep offshore project).

Analyst comments:AKBA +14.5% (initiated by several analysts), STX +4% (upgraded at Argus), BSX +2.4% (upgraded to Buy from Neutral at BofA/Merrill), PANW +2.2% (upgraded to Overweight from Equal Weight at Barclays), SSYS +2% (initiated with a Buy at Goldman; tgt $146), YHOO +1.6% (Yahoo upgraded to Buy from Neutral at SunTrust), MA +1.2% ( upgraded to Outperform at Robert W. Baird), V +0.7% (upgraded to Outperform at Robert W. Baird ), RIG +0.6% (upgraded to Hold from Sell at Deutsche Bank),

Reports Q1 (Mar) earnings of $1.30 per share, $0.15 better than the Capital IQ Consensus Estimate of $1.15; revenues fell 0.6% year/year to $20.12 bln vs the $19.46 bln consensus. CVA/DVA was $7 million ($4 million after-tax) in Q1, compared to negative $319 million (negative $198 million after-tax) in the prior year period. Excluding CVA/DVA, first quarter revenues of $20.1 billion were down 2% from the prior year period. Excluding CVA/DVA and the tax item, first quarter 2014 earnings were $1.30 per diluted share, representing a 1% increase y/y.

Citigroup

• Citigroup revenues of $20.1 billion in Q1 declined 1% from the prior year period. Excluding CVA/DVA in both periods, revenues declined 2% y/y. This decrease was driven by a 5% decline in Citicorp revenues, primarily due to a decline in Fixed Income Markets revenues in Institutional Clients Group (ICG) and lower U.S. mortgage refinancing activity in North America Global Consumer Banking (GCB), which was partially offset by higher Citi Holdings revenues.
• Citigroup's net income rose to $3.9 billion in Q1 from $3.8 billion in the prior year period. Driven by lower expenses and lower net credit losses, partially offset by the lower revenues and a higher effective tax rate.
• Operating expenses of $12.1 billion were 1% lower y/y. Operating expenses in Q1 included $945 million of legal and related expenses, compared to $710 million in the prior year period, and $211 million of repositioning charges, compared to $148 million in the prior year period. Citigroup's cost of credit in the first quarter 2014 was $2.0 billion, a decrease of 20% y/y due to improvement in net credit losses.
• Citigroup's allowance for loan losses was $18.9 billion at quarter end, or 2.87% of total loans, compared to $23.7 billion, or 3.70% of total loans in prior year.
• As of quarter end, book value per share was $66.25 and tangible book value per share was $56.40, 6% and 8% increases, respectively y/y. Citigroup's estimated Basel III Tier 1 Common ratio was 10.4%, up from 9.3% in the prior year period, driven by growth in retained earnings and deferred tax asset (DTA) utilization, partially offset by an increase in risk-weighted assets. C added approximately $56 billion of operational RWA as part of its transition to Basel III "advanced approaches" effective in 2Q14.

Citicorp

• Citicorp revenues of $18.7 billion in Q1 declined 3% y/y. Corporate/Other revenues were $141 million versus $6 million in the prior year period.
• Citicorp net income decreased 8% y/y to $4.2 billion.
• Citicorp operating expenses decreased 2% from the prior year period to $10.6 billion primarily reflecting efficiency savings, partially offset by higher regulatory and compliance costs, legal and related expenses and repositioning charges in the current quarter. Citicorp cost of credit of $1.6 billion in Q1 declined 4% y/y. The decline reflected both a 1% decline in net credit losses as well as a higher net loan loss reserve release, which increased 10% y/y.

Global Consumer Banking

• GCB revenues of $9.3 billion declined 5% from the prior year period, as significantly lower U.S. mortgage refinancing activity and continued spread compression globally more than offset the impact of the Best Buy portfolio acquisition and ongoing volume growth in most international businesses.
• North America- GCB revenues declined 6% to $4.8 billion versus the prior year period driven mainly by lower retail banking revenues, partially offset by higher retail services revenues. Citi-branded cards revenues were roughly flat versus the prior year period at $2.0 billion, reflecting improvement in net interest spreads and growth in purchase sales, offset by a 3% decline in average loans.
• International GCB revenues declined 3% versus the first quarter 2013 to $4.5 billion on a reported basis. On a constant dollar basis, international GCB revenues were up 3% versus the first quarter 2013 driven by growth in Latin America and Asia, partially offset by a decline in EMEA. International GCB net income declined 6% from the prior year period to $700 million on a reported basis and declined 2% in constant dollars. On a constant dollar basis, higher expenses and higher credit costs more than offset the higher revenues.

Citi Holdings

• Citi Holdings revenues in the first quarter 2014 increased 61% versus the prior year period to $1.5 billion. Revenues in the first quarter 2014 included CVA/DVA of $14 million (compared to negative $9 million in the prior year period). Excluding CVA/DVA, Citi Holdings revenues increased 58% to $1.4 billion primarily driven by the absence of repurchase reserve builds for representation and warranty claims in the first quarter 2014, as well as higher levels of mark-to-market gains, lower funding costs versus the prior year period and a one-time gain on a debt transaction. As of the end of the quarter, total Citi Holdings assets were $114 billion, 23% below the prior year period, and represented approximately 6% of total Citigroup assets. Citi Holdings net loss was $284 million in the first quarter 2014 compared to a net loss of $804 million in the prior year period, driven by the higher revenues and lower net credit losses.

ICG revenues declined 4% from the prior year period to $9.2 billion. Excluding the impact of the negative $7 million of CVA/DVA in the first quarter 2014 (compared to negative $310 million in the prior year period), revenues were $9.2 billion, 7% lower than the prior year period, primarily reflecting a decline in Fixed Income Markets and Investment Banking revenues, partially offset by higher Equity Markets, Corporate Lending and Private Bank revenues.

• Banking revenues of $4.1 billion increased 1% from the prior year period, primarily reflecting growth in Corporate Lending and Private Bank revenues, partially offset by lower Investment Banking revenues. Investment Banking revenues decreased 10% versus the prior year period, driven by a 19% decline in debt underwriting revenues to $578 million and a 14% decline in advisory revenues to $175 million, partially offset by 20% growth in equity underwriting revenues to $299 million. Private Bank revenues increased 6% to $668 million from the prior year period (excluding $3 million of CVA/DVA, versus negative $1 million in the first quarter 2013), driven by growth in investments and capital markets products. Corporate Lending revenues increased 28% to $398 million, including $17 million of mark-to-market losses on hedges related to accrual loans compared to a $24 million loss in the prior year period. Corporate Lending revenues rose 24% versus the prior year period to $415 million as higher loan balances and lower funding costs were partially offset by lower loan yields. Treasury and Trade Solutions revenues increased 1% versus the prior year period as growth in fees and volumes were partially offset by the ongoing impact of spread compression globally.
• Markets and Securities Services revenues of $5.2 billion (excluding negative $10 million of CVA/DVA, versus negative $309 million in the first quarter 2013) declined 12% from the prior year period. Fixed Income Markets revenues of $3.9 billion in the first quarter 2014 (excluding negative $26 million of CVA/DVA) declined 18% from the prior year period, reflecting the uncertain global macro environment as well as strong performance in the prior year in securitized products and local markets rates and currencies. Equity Markets revenues of $883 million (excluding $16 million of CVA/DVA) were up 13% versus the prior year period, driven by improved derivatives revenues.