>>> Johnson Controls reports EPS in-line, beats on revs; guides FY19 EPS in-line

Johnson Controls reports EPS in-line, beats on revs; guides FY19 EPS in-line
  • Reports Q4 (Sep) earnings of $0.93 per share, excluding non-recurring items, in-line with the S&P Capital IQ Consensus of $0.93; revenues rose 2.9% year/year to $8.37 bln vs the $8.28 bln S&P Capital IQ Consensus.
  • Co issues in-line guidance for FY19, sees EPS of $2.90-3.05, excluding non-recurring items, vs. $3.03 S&P Capital IQ Consensus. Sees organic revenue growth in the mid-single digits.
  • "We are in the final stages of the strategic review of our Power Solutions business. We have assessed multiple options and have made significant progress toward making a final decision. As we look forward to fiscal 2019, we remain focused on driving execution across our portfolio to further enhance our growth trajectory supported by our strong backlog, order momentum and new business wins. We expect our overall financial performance to continue to improve by intensely focusing on top-line growth, margin expansion and free cash flow conversion.

>>> Crocs beats by $0.02, beats on revs; guides Q4 revs in-line; Sees FY18 revs

Crocs beats by $0.02, beats on revs; guides Q4 revs in-line; Sees FY18 revs in the range of +4-5% y/y, prior outlook was low single digits
  • Reports Q3 (Sep) earnings of $0.07 per share, excluding non-recurring items, $0.02 better than the S&P Capital IQ Consensus of $0.05; revenues rose 7.3% year/year to $261.1 mln vs the $246.47 mln S&P Capital IQ Consensus.
    • Gross margin was 53.3%, improving 250 basis points over last year's third quarter.
    • Inventory declined 16.1% to $117.7 million as of September 30, 2018 compared to $140.3 million as of September 30, 2017, reflecting the Company's continued focus on inventory management.
  • Co issues in-line guidance for Q4, sees Q4 revs of $195-205 mln vs. $197.27 mln S&P Capital IQ Consensus.
    • Gross margin to be approximately 80 to 100 basis points above last year's 45.4% rate.
  • Co issues in-line guidance for FY18, sees FY18 revs of +4-5% (Approx $1.063-1.074 bln; Prior outlook low single digits) vs. $1.05 bln S&P Capital IQ Consensus

>>> Worldpay beats by $0.02, reports revs in-line; guides Q4 EPS in-line, revs i

Worldpay beats by $0.02, reports revs in-line; guides Q4 EPS in-line, revs in-line
  • Reports Q3 (Sep) earnings of $1.05 per share, excluding non-recurring items, $0.02 better than the S&P Capital IQ Consensus of $1.03; revenues fell 1.5% year/year to $1.02 bln vs the $1.02 bln S&P Capital IQ Consensus.
    • Had the Vantiv Inc./Worldpay Group plc transaction closed on January 1, 2017, net revenue would have increased by 9% on a pro forma basis as compared to the prior year period.
    • Adjusted EBITDA was $496.8 million or 48.8% of net revenue in the third quarter, representing 10 basis points of margin expansion as compared to Vantiv, Inc. results on a stand-alone basis in the prior year period. Had the Vantiv, Inc./Worldpay Group plc transaction closed on January 1, 2017, Adjusted EBITDA margins would have expanded by 150 basis points on a pro forma basis over the prior year period.
  • Co issues in-line guidance for Q4, sees EPS of $1.05-1.10, excluding non-recurring items, vs. $1.09 S&P Capital IQ Consensus; sees Q4 revs of $1027-1055 mln vs. $1.05 bln S&P Capital IQ Consensus

>>> Norwegian Cruise Line beats by $0.06, reports revs in-line; guides Q4 EPS be

Norwegian Cruise Line beats by $0.06, reports revs in-line; guides Q4 EPS below consensus; guides FY18 EPS above consensus
  • Reports Q3 (Sep) earnings of $2.27 per share, excluding non-recurring items, $0.06 better than the S&P Capital IQ Consensus of $2.21 and versus prior guidance of $2.20; revenues rose 12.5% year/year to $1.86 bln vs the $1.85 bln S&P Capital IQ Consensus.
  • Co issues downside guidance for Q4, sees EPS of ~$0.78, excluding non-recurring items, vs. $0.81 S&P Capital IQ Consensus. Sees Q4 net yield ~3.75% as reported and ~4.0% in constant currency.
  • Co issues upside guidance for FY18, sees EPS of ~$4.85, excluding non-recurring items, vs. $4.81 S&P Capital IQ Consensus. Sees FY18 net yield ~3.6% as reported and ~3.3% in constant currency.
  • "The robust booking environment for cruise vacations is alive and well as evidenced by our stellar booked position for 2019, which continues to exceed this year's record levels, with booking momentum accelerating for sailings throughout 2019 and extending into 2020," said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings Ltd. "We are well-positioned to achieve the three-year double-digit Adjusted EPS CAGR, net leverage and Adjusted ROIC targets provided at our 2018 Investor Day, while at the same time returning meaningful capital to shareholders, despite rising fuel prices and fluctuations in foreign exchange rates.

>>> Endo Intl beats by $0.12, beats on revs; guides FY18 EPS above consensus, re

Endo Intl beats by $0.12, beats on revs; guides FY18 EPS above consensus, revs above consensus
  • Reports Q3 (Sep) earnings of $0.71 per share, excluding non-recurring items, $0.12 better than the S&P Capital IQ Consensus of $0.59; revenues fell 5.3% year/year to $745 mln vs the $694.93 mln S&P Capital IQ Consensus.
  • Co issues upside guidance for FY18, sees EPS of $2.65-2.75, excluding non-recurring items, vs. $2.60 S&P Capital IQ Consensus; sees FY18 revs of $2.87-2.92 bln vs. $2.81 bln S&P Capital IQ Consensus.
    • Adjusted EBITDA from continuing operations to be between $1.32 billion and $1.34 billion.

Digitimes : China smartphone shipments to fall in 4Q18, says Digitimes Research

China smartphone shipments to fall in 4Q18, says Digitimes Research

Having ramped up their combined smartphone shipments by 6.5% on year to 192 million units in the third quarter of 2018, China-based vendors are likely to see a single-digit shipment decrease in the fourth quarter due to weakening demand in the domestic market and competition resulting from the availability of new iPhone devices, according to Digitimes Research.

The on-year growth registered in the third quarter stemmed mainly from increased shipments from Huawei, which saw its overseas shipments expand seven million units on year in the quarter, buoyed by its strong deployment in the sub-EUR200 (US$229) segment in Europe, says Digitimes Research.

Xiaomi still counted on overseas demand to drive its shipment growth in the third quarter, but the pace of the growth has subdued significantly as compared to the exponential expansion seen a year ago.

Third and fourth ranked Oppo and Vivo, which have focused more on the domestic market, saw mostly flat shipment results in the third quarter as their market shares in the home market were eroded by increasing competition from Huawei and Xiaomi.

Looking into the fourth quarter, Huawei and Xiaomi will continue to see their shipments grow slightly in the quarter, but shipments from Oppo and Vivo may drop by 5-7 million units each as compared to a year earlier, Digitimes Research estimates.

FT : Eurazeo-backed Planet to explore M&A in 12 to 18 months

European Banking Authority to probe member countries over Danske Bank
EU watchdog will investigate Denmark, Latvia and Estonia over alleged EU law breaches

Brussels has ordered a pan-European probe of Denmark, Latvia and Estonia over alleged regulatory failings in the €200m Danske Bank money-laundering scandal.

The European Commission has for the first time used its powers to order the European Banking Authority to investigate alleged breaches of EU law, in a sign of the alarm over suspected Russia-linked hot money flows in the Danske case.

Danske — Denmark’s biggest lender — already faces criminal probes domestically and in the US and Estonia over the affair, which has cost Thomas Borgen the job of chief executive.

The Commission also separately ordered Maltese authorities to take tougher action against money laundering after the European Banking Authority accused Valletta of failing to correctly supervise its financial institutions.

Frans Timmermans, Commission first vice-president, said: “To protect the security of Europeans and ensure a safe, reliable financial system, every authority in every Member State must uphold EU money-laundering rules in full. We remain vigilant and ready to act so that any breach is swiftly remedied and that better supervisory practice ensures it does not happen again.”

>>> Eurazeo-backed Planet to explore M&A in 12 to 18 months

Eurazeo-backed Planet to explore M&A in 12 to 18 months
08 NOV 2018
Eurazeo [EPA:RF] -owned payments processor Planet will consider acquiring payments businesses in the next 12 to 18 months, chief executive Patrick Waldron told this news service.
Planet, which also processes value-added-tax (VAT) refunds, is amid a rebranding process, changing from Fintrax Group, having bought Planet Payment in 2017.
The Ireland-based company will not act immediately as it adjusts to its new brand and business structure, “embedding current growth”, Waldron said. However, in 12 to 18 months it may turn to M&A to add to its payments business, he said.
Planet has no in-house M&A advisors and will award mandates on a case-by-case basis, he said.
Planet will make acquisitions to balance the size of its payments business with that of its tax-refund business, he said. Only three years ago, 85% of the company’s revenues were on the tax-refund side, he said, but the split is now approaching 60% tax refunds to 40% payments. Planet had EUR 268m in revenues in 2017, according to Eurazeo’s website.
Future transactions are likely to be beyond Europe, where digital payment systems remain less established, he said.
As Fintrax, the company acquired e-Taxfree Nordic in 2016, and CubeRefund and GB TaxFree in 2017, before its GBP 160m (EUR 184m) takeover of Planet Payment. The size of Planet’s future acquisitions depends on future performance, Waldron said, and it will turn to a mix of debt and equity to finance M&A.
Planet has no in-house M&A advisors and will award mandates on a case-by-case basis, he said.