Facebook: Senators Richard Blumenthal (D-CT) and Josh Hawley (R-MO) say expected privacy fine to FB of $3-5 bln is "a bargain"
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Israel Chemicals beats by $0.02, misses on revs (5.11)
- Reports Q1 (Mar) earnings of $0.12 per share, excluding non-recurring items, $0.02 better than the S&P Capital IQ Consensus of $0.10; revenues rose 0.8% year/year to $1.42 bln vs the $1.43 bln S&P Capital IQ Consensus.
- "We achieved a strong start to 2019, with significant profitability growth recorded in all of our three mineral value chains, as our value focused strategy continued to bear fruits. Our performance is even more meaningful in light of the slow start to the agricultural year in the US, Brazil and Israel which negatively impacted fertilizer sales and put pressure on the commodity phosphate market. During the quarter we continued to make significant progress towards long term value creation, by streamlining operations, empowering our workforce, improving the results of our YPH joint venture, increasing polysulphate production, realigning our R&D and signing an important agreement with the government of Israel to end a decade long dispute on royalties. This agreement will also simplify the royalty calculation in the future and it sets the ground for a new era of open dialogue and cooperation with Israeli authorities. I am confident that the strong start of 2019 puts us on track to achieve another year of solid performance.
Mallinckrodt plc beats by $0.24, beats on revs; raises FY19 EPS above consensus; partnered pivotal Phase 3 trial of CPP-1X/Sulindac in Patients with Familial Adenomatous Polyposis misses primary endpoint (16.39)
- Reports Q1 (Mar) earnings of $1.94 per share, excluding non-recurring items, $0.24 better than the S&P Capital IQ Consensus of $1.70; revenues rose 4.7% year/year to $791 mln vs the $766.27 mln S&P Capital IQ Consensus. Acthar Gel net sales were $223.9 million, an 8.2% decrease, primarily driven by the annual benefit reset process impacting returning patients while navigating continued payer scrutiny on overall specialty pharmaceutical spending. The company continues to expect the product to exceed $1 billion in net sales for 2019. INOMAX (nitric oxide) gas, for inhalation, net sales were $151.1 million, up 8.1% due to continued, consistent demand and contract renewals fueled by the product's differentiated total service model. OFIRMEV (acetaminophen) injection net sales were $95.6 million, an increase of 16.6%, benefiting from continued strong demand and order timing.
- Co issues upside guidance for FY19, sees EPS of $8.30-8.60, excluding non-recurring items, vs. $8.21 S&P Capital IQ Consensus; reaffirms specialty brands segment +1-4%, raises specialty generics and Amitiza to +2-5% from +1-4%
- Cancer Prevention Pharmaceuticals and its partner Mallinckrodt Plc announced that CPP's pivotal phase 3 clinical trial, CPP FAP-310, of the investigational drug CPP-1X/sulindac in patients with familial adenomatous polyposis (FAP), did not meet its primary endpoint. Specifically, the reduction of time to the first occurrence of an FAP-related event for the combination of CPP-1X (eflornithine) and sulindac (a nonsteroidal anti-inflammatory drug) did not reach statistical significance compared to the two control arms. CPP FAP-310 included only active comparator arms and was the largest and longest study ever conducted in patients with FAP
Aramark misses by $0.04, reports revs in-line; lowers FY19 EPS guidance, reaffirms FY19 revs guidance (31.31)
- Reports Q2 (Mar) earnings of $0.45 per share, excluding non-recurring items, $0.04 worse than the S&P Capital IQ Consensus of $0.49; revenues of $4 bln vs the $4.01 bln S&P Capital IQ Consensus.
- Co lowers guidance for FY19 EPS to $2.20-2.30, prior $2.30-2.40, which reflects the impact of strategic portfolio actions in our International segment, as well as adverse weather and includes four cents of currency headwinds , vs. $2.35 S&P Capital IQ Consensus; reaffirms FY19 revs of ~3% ($16.1-16.4 bln) vs. $16.28 bln S&P Capital IQ Consensus. Reiterates full-year free cash flow outlook of $500 million. This outlook includes approximately $50 million in cash outlay related to the divestiture of the Healthcare Technologies business and approximately $50 million in spending on the integrations of Avendra and AmeriPride
Bad numbers
The European Commission is poised to revise down growth forecasts for the euro area and wider EU
As EU leaders prepare to head to Sibiu for strategic planning on the bloc’s future, today’s economic forecasts from Brussels will underline some of the difficulties they face.
The European Commission is poised to revise down its growth forecasts for the euro area and wider EU, pointing to a slowdown in the manufacturing sector, not least in Germany.
Brussels will also warn that unpredictable trade tensions threaten even this less-than-rosy outlook.
While the commission has been planning to welcome the ongoing US-China trade talks as a boost for global economic stability, this was undermined by US president Donald Trump’s unexpected Sunday Twitter announcement of more punitive tariffs against Chinese imports.
Other risks to the forecast include the lack of clarity around Brexit. UK prime minister Theresa May’s deal is in limbo and Britain is due to leave on October 31, with or without an agreement.
The forecasts are also a political banana skin for Brussels. They are expected to show that Italy will miss a deficit target that it agreed with the commission as part of a deal last year on its 2019 budget plans.
That accord, which involved Rome’s populist government agreeing to delay some spending measures, has been slammed by the Dutch government as a stitch-up that undermines the euro area’s budget rules.
The news that Rome is set to exceed its intended deficit of 2.04 per cent of GDP will fuel criticisms that Italy was let off the hook. The EU forecasts will be broadly in line with the latest Italian government projections of a deficit of 2.4 per cent.
The Hague and other northern euro area seats of government are preparing a co-ordinated call for the commission to take a less political, and firmer, approach to applying the fiscal rules.
It could all be worse: Brussels will forecast continued economic growth in the EU during 2019-20, with no country expected to fall into recession. It will also point to strong employment numbers and rising wages.
But, with leaders set to reflect on the state of the EU, Brussels would have preferred a more upbeat, clearer and above all less controversial financial picture.
Mr Trump’s trade threats against China are hitting one of his favourite crops: soyabeans. The futures market was gloomy on Monday, with traders fearful of retaliatory measures against US produce.
An EU pledge to import more of the beans was a key part of a deal in July between the commission and Mr Trump to ease transatlantic trade tensions. Brussels announced last month that imports in the period July 2018 to mid-April 2019 were 121 per cent higher than during the previous 12 months.
BofAML EMEA Indications:
VONOVIA - V good update. Sees FY FFO per shr EU2.26, 5% ahead of cons (46.1)+3%
AXEL SPRINGER - EBITDA 2% ahead but Jobs & Real Estate org growth weak (51).+3%
DSM - Solid. EBITDA 412 v 397 cons. Raise guidance for full year ests (101).+2%
SIEMENS GAM - Q2 rev beat cons by 4%, EBIT by 11%. Margins 60bps ahead(15.8)+2%
ARKEMA - Beat by 1.4% on EBITDA driven by margins (17bps ahead) v con (88)+1-2%
INBEV - Mixed. Beat on org top line/EBITDA but EPS miss. FY guide unch (79).+1%
INFINEON - 2Q revs +1.1% ahead of co cons. EPS 24c v 22c. FY guide u/c(20.6)+1%
AIRBUS - +ve. IndiGo in talks for a "large" order according to press (120.9)+1%
ALSTOM - Mixed but orders strong and cash return looks inline with cons(39).+1%
SIEMENS - Added to EUROPE 1 (BAML best ideas) list into CMD on Wed (105.65).+1%
EVONIK - EBITDA 539 V 532 cons. Outlook for sales/ebitda to be stable (26)+0.5%
T.ITALIA - New CFO, Giovanni Ronca,prev coHead of UCG commercial bank(0.5)+0.5%
MINERS - Iron ore squeeze offsets trade unrest. OZ parities are unchanged...u/c
RPC - China approvals received for deal. We await Russia & Mexico now (790).u/c
ESSILORLUX - Revs +3.7% cFX. Q1 at bottom end of FY guide. FY reit'd (107.3)u/c
BT - Note considering press discussion over divi cut at the weekend (224.2).-1%
BMW - PBT €762m v €1.8b but driven by €1.4b provision. Sales inline (73.3)..-1%
ALSTRIA OFFICE - FFO/share EUR0.16 v cons EUR0.167. Leasing mkt strong(13.8)-1%
HENKEL - Weak. Q1 OSG +0.7% v +1.8% cons driven by beauty. Reit FY guide(89)-2%
PANDORA - Messy. Sales 1% below, total LfL sales growth -10% v -12% (262).-2-3%
SOLVAY - Miss. Lower FY guide, Q1 is EBITDA 571 v 567 cons. FCF v weak (100)-3%
G4S - Garda World, no intention to make an offer. Screens as v crowded (199)-8%
France’s Iliad in €2bn mobile tower pact with Cellnex Telecom
Telecoms group looks to raise cash and shore up balance sheet
Iliad said on Tuesday that it has signed a €2bn agreement with infrastructure operator Cellnex Telecom, for the sale of its mobile towers infrastructure in France and Italy, as the group seeks to raise cash and bolster its balance sheet.
The French telecoms company, whose share price has dropped by a fifth this year, said that it has entered into exclusive negotiations with Cellnex for the sale of 70 per cent of the company managing its mobile network in France, comprising 5,700 sites. In Italy, Iliad has reached an agreement with Cellnex to sell 100 per cent of the company managing its passive mobile telecommunications infrastructure, which comprises around 2,200 sites.
The announcement, which follows similar infrastructure sales by rivals Altice Europe and Bouygues, comes ahead of Iliad’s first capital markets day in years on Tuesday. The group is seeking to restore trust with investors concerned about its commercial strategy, its ability to generate cash, and a controversial pay scheme for its senior management.
In March Iliad said that it would take longer than expected to reach its cash flow targets and announced that it had begun a process to review a sales of its mobile infrastructure assets to raise cash.
Iliad, whose majority shareholder is its founder Xavier Niel, said that the initial amount to be received from the Cellnex deal is €2bn, and added that it will use most of the cash it collects to strengthen the group’s balance sheet.
“This operation is part of an industrial logic allowing the acceleration of deployments of 4G and 5G networks and multiplying the investment capacity of Iliad,” said Thomas Reynaud, chief executive of Iliad, in a statement. “This operation accompanies the group’s new growth and innovation cycle. It will enable the efficient deployment of tomorrow’s infrastructures for the benefit of all operators and also aims to better respond to territorial coverage issues.”
Iliad said that the transaction will boost its financial strength by reducing leverage by around 1 times earnings before interest, taxes, depreciation and amortisation.