IAEA to meet Iran again on Nov 11th after concluding most recent round of discussions - Vienna round of talks called 'productive' - Iran said to have offered practical measures to IAEA inspectors and agreed to keep terms confidential
Valero Energy beats by $0.16, beats on revs
Reports Q3 (Sep) earnings of $0.57 per share, $0.16 better than the Capital IQ Consensus Estimate of $0.41; revenues rose 4.1% year/year to $36.14 bln vs the $31.02 bln consensus.
The decrease in operating income was due to lower refining throughput margins caused by lower gasoline and diesel margins as well as lower light sweet and sour crude oil discounts. Also contributing to the decline in operating income were higher costs for Renewable Identification Numbers to comply with the U.S. federal Renewable Fuel Standard. Strong performance in the ethanol business partially offset the decline in operating income.
Valero expects full-year 2013 capital expenditures, including turnarounds and catalyst, to be ~$2.85 billion, of which $1.30 billion is for growth investments. For 2014, capital expenditures, including turnarounds and catalyst, are expected to be ~$3 billion.
"We believe that we have a great opportunity to unlock potential value in our assets via the formation of a logistics partnership. We are also evaluating and pursuing investments that leverage the North American natural resource advantages, such as projects to process additional light sweet crude oil volumes and to upgrade natural gas and natural gas liquids. Along with these opportunities, we intend to continue returning cash to stockholders through dividends and share buybacks."
Arch Coal beats by $0.30, misses on revs; Co lowers its metallurgical sales expectations
Reports Q3 (Sep) loss of $0.01 per share, excluding non-recurring items, $0.30 better than the Capital IQ Consensus Estimate of ($0.31); revenues fell 18.9% year/year to $791.3 mln vs the $885.86 mln consensus.
"Arch is successfully navigating challenging global coal markets by controlling costs and capital spending and effectively managing liquidity. From an operational perspective, we are pleased to have delivered the best cost performance in the Powder River Basin since 2010. We also significantly enhanced our financial flexibility with the Canyon Fuel sale -- and ended September with $1.4 bln in cash."
Company Outlook For 2013, Arch now expects thermal sales volumes to be in the range of 134-137 mln tons.
The co has lowered its metallurgical sales expectations, and now expects to ship between 6.9-7.3 mln tons into coking coal and pulverized coal injection (PCI) markets during 2013. "We have reduced our sales volume expectations for coking and PCI coal in 2013 due to a combination of events," said Eaves.
"Of note, we have recently shifted some personnel from our Sentinel mine to Leer in anticipation of the longwall start-up in Dec. We have also opportunistically sold some PCI-quality coal into the industrial market. And, we have deferred some previously contracted tons into 2014 due to a force majeure event with a customer. For 2013, Arch has reduced its annual cash cost per ton guidance range for both the Powder River Basin and Appalachia."
"The co also has lowered its guidance range for general and administrative expenses and further tightened its range for capital expenditures in 2013. We remain focused on those factors and dynamics within our control to position Arch for a future market rebound. We have curtailed capital spending, cut costs and expenses, and further streamlined our diversified asset portfolio. We have also significantly increased our liquidity, and we have an ample cash position to weather the current market."
Goodyear Tire misses by $0.04, misses on revs
Reports Q3 (Sep) earnings of $0.62 per share, $0.04 worse than the Capital IQ Consensus Estimate of $0.66; revenues fell 5.0% year/year to $5 bln vs the $5.27 bln consensus.
Regional performance: North America's third quarter 2013 sales decreased 9% from last year to $2.2 bln. Sales reflect a $170 mln decline in sales in other tire-related businesses, most notably a decrease in the price and volume of third-party chemical sales. The impact of increased tire unit volumes was more than offset by lower price/mix. Original equipment unit volume was up 5%. Replacement tire shipments were flat. Europe, Middle East and Africa's third quarter sales increased $4 mln from last year to $1.8 bln. Sales reflect a 3% increase in tire unit volume and favorable foreign currency translation of $42 mln, which was partially offset by lower price/mix. Original equipment unit volume was up 11%. Replacement tire shipments were flat. Outlook For the full year of 2013 in North America, Goodyear's industry outlook is unchanged. Expects consumer replacement as well as commercial replacement and commercial original equipment volumes to be at essentially 2012 levels. Expects consumer original equipment volumes to be up approximately 5%. For the full year in Europe, Middle East and Africa, Goodyear's industry outlook is unchanged, except for consumer original equipment. The Co now expects consumer original equipment volumes to be flat to down 5%. Expects consumer replacement to be at essentially 2012 levels. Expects commercial original equipment volumes to be flat to up 5% and commercial replacement to be up about 5%.
Morgan Stanley Strategist Parker: Sees Fed taper starting in April; remains 'bullish'
Apple: Color on qtr * Baird upgraded AAPL to Outperform from Neutral and raised its tgt to $620 from $525. Firm had been concerned with the current product cycle, but with better-than-expected results now behind us, firm expects the focus to turn to 2014, which it believes holds more promise. Potential catalysts include a bigger screen iPhone, Apple TV, possible wearable devices and a likely China Mobile (CHL) launch. Additionally, firm also believes gross margins should hold steady in C2014 based on the current product lineup.
* FBR notes, in F4Q13, AAPL posted a solid quarter. Revenue was $37.5B, above its/consensus $36.9B est, driving EPS to $8.26, above its estimate of $8.03 and well above the Street $7.91 est. Stronger-than-expected iPhone units of 33.8M, above the consensus forecast of 32.0M but below FBR's 34.6M ests, drove iPhone sales of $19.5B, well above the consensus $15.6B target. iPad unit sales of 14.1M continued to be weak for the second quarter (flat YOY and down 4% sequentially), below the consensus estimate of 14.5M. On the call, investors reacted negatively as management guided for December quarter GMs below the de-risked consensus 37.8% estimate. As management explained the mechanics behind deferred revenue accounting associated with free OS and iWork, investors began to come back to shares, leaving the stock nearly flat by then end of the call.
* RBC notes AAPL reported a strong Sept-qtr and guided Dec-qtr revenues ahead of expectations. The one (perceived) negative was Dec-qtr gross-margin of 36.5-37.5%, RBC notes that reflects 160bps headwind due to deferrals. Fundamentally, RBC believes AAPL is executing impressively and sees more catalysts: i. CHL deal, ii. iPad/iPad mini launches, iii. potential increase capital allocation. Tgt to $590 from $550.
* Mizuho notes Apple's results were slightly ahead of consensus with iPhone shipments coming in ~2mm higher than expectations while iPad units were slightly below. Co's profitability was above expectations. For guidance, management's outlook calls for a strong sequential uptick in iPhone and iPad sales. Firm expects the stock to continue performing in early 2014 due to ongoing product cycle, launch of iPhone 6, introduction of a new product category and likely expansion of cash allocation policy. Tgt to $575 from $550.
* Cowen notes, from here, it believes 2014 seems to set up as a vastly different year than '13 with stronger iPhone units, a long awaited iPad upgrade cycle and multiple new product categories. Tgt to $590 from $550. ISI notes believe strong iPhone/iPad refresh cycles along with a 5" iPhone next year can drive a return to double digit EPS growth. ISI is moving its CY13 estimate to $174.1bil/$39.96 (down (9)% y/y) based on ~5.7% sales growth driven by 156.5mil iPhones and 73.2mil iPads, 37.2% gross margins (down ~470bps y/y) and 28.1% operating margins (down ~540bps y/y). Firm's CY14 EPS estimate of $190.0bil/$45.00 assumes ~9% y/y sales growth driven by 184.0mil iPhones and 82.0mil iPads, 37.2% gross margins (flat y/y), 28.0% operating margins (down ~10bps y/y) and ~13% EPS growth.
* AAPL tgt to $600 from $508 at BMO and tgt to $600 from $545 at JPM following earnings.
Johnson Controls reports EPS in-line, beats on revs; announced intention to explore strategic options for automotive interiors business
Reports Q4 (Sep) earnings of $0.95 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate consensus of $0.95; revenues rose 6.3% year/year to $11.05 bln vs the $10.93 bln consensus.
Orders in the quarter were two percent higher year-over-year, marking the second consecutive quarter of improvement. The backlog of projects at the end of the quarter, adjusted for divestitures and foreign exchange, declined five percent to $4.8 billion primarily due to lower activity in Europe and the Middle East.
Strategic Alternatives for Automotive Interiors Business: Johnson Controls announced its intention to explore strategic options to enhance the position and financial capacity of its Automotive Interiors business as part of the company's previously stated intention to build its multi-industry portfolio. Revenues from the Interiors business totaled $4.2 billion in fiscal 2013, with a loss of $13 million.
Johnson Controls noted that its Automotive Electronics segment results include the full-year profit contribution from the HomeLink business, which was sold on September 27, 2013. The company announced its intentions to sell its entire Automotive Electronics business earlier in 2013. An announcement regarding the sale of the remaining Electronics business is expected to be made by the end of the calendar year.
Outlook: Johnson Controls today gave a preliminary outlook of its market and financial expectations for fiscal 2014, saying it believes improving end markets will enable the company to modestly grow revenues in the upcoming year. For the first quarter of 2014, the company expects earnings to increase ~30 percent (35 percent adjusting for the impact of the HomeLink divestiture). ---- Capital IQ Consensus Calls for EPS to increase 36.5%) Johnson Controls will provide full fiscal year 2014 guidance at its annual New York analyst day on December 18, 2013. "We are at the beginning of the next era for Johnson Controls. We believe initiatives to improve the profitability of our businesses are gaining momentum and our markets are stabilizing...In the coming months, we will provide detail on how we plan to build on the strengths of Johnson Controls to improve our performance and drive higher levels of shareholder value. I believe our 2013 results shows that we have a strong foundation to build upon."
Heidrick & Struggles beats by $0.03, misses on revs; guides Q4 revs below consensus
Reports Q3 (Sep) earnings of $0.23 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.20; revenues rose 1.4% year/year to $119 mln vs the $121.41 mln consensus.
Regional Performance (net revenue (YoY) Americas (1.9%) Europe +13.2% (~12% on a constant currency basis) APAC +0.8% (~7% on a constant currency basis) Guidance: Co issues downside guidance for Q4, sees Q4 revs of $100-110 mln vs. $119.56 mln Capital IQ Consensus Estimate.
Pfizer beats by $0.02, reports revs in-line; raises low end of FY13 EPS, lowers high end of FY13 rev
Reports Q3 (Sep) earnings of $0.58 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.56; revenues fell 2.4% year/year to $12.64 bln vs the $12.7 bln consensus.
Co issues in-line guidance for FY13, raises EPS to $2.15-2.20, excluding non-recurring items, from $2.10-2.20 vs. $2.18 Capital IQ Consensus Estimate; lowers FY13 revs to $50.8-51.8 bln from $50.8-52.8 bln vs. $51.46 bln Capital IQ Consensus Estimate.
The operational decrease was primarily the result of the continued erosion for branded Lipitor in the U.S., developed Europe and certain other markets. Additionally, revenues were negatively impacted by other product losses of exclusivity, the ongoing expiration of the Spiriva collaboration in certain countries, decreased government purchases of Prevnar and Enbrel in certain emerging markets, and various other events. Revenues were positively impacted by the overall growth of Lyrica, Enbrel, Inlyta and Xalkori, as well as Celebrex and Xeljanz in the U.S. In addition, reported revenues(1) included $67 million from the transitional manufacturing and supply agreements with Zoetis(3).
Occidental Petro beats by $0.09, misses on revs
Reports Q3 (Sep) earnings of $1.97 per share, $0.09 better than the Capital IQ Consensus Estimate of $1.88; revenues rose 8.1% year/year to $6.45 bln vs the $6.71 bln consensus.
Q3 2013 domestic oil and gas production of 476,000 barrels of oil equivalent per day, an increase of 8,000 barrels per day in liquids on a sequential quarter over quarter basis.
Oxy's realized price for worldwide crude oil increased almost 8 percent to $103.95 per barrel for the third quarter of 2013, compared with $96.62 per barrel for the third quarter of 2012.
"We continue to see positive results from our focused drilling program and improved domestic operational efficiencies. Year-to-date, we have achieved a 22-percent reduction in our drilling costs relative to 2012. Domestic oil and gas operating expenses were $14.33 per BOE for the nine months of 2013, an 18-percent improvement from total year 2012 rates. Our focus on capital and operating efficiencies has helped us generate $9.8 bln of cash flow from operations during the first nine months of 2013, resulting in a current cash balance of $3.8 bln compared to the year-end level of $1.6 bln."