>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:
  • OPHT +11.4%, AMD +9.4%, X +7.6%, SFS +7.4%, EXAS +7.2%, RCKY+3.8%, TRN +3.6%, RES +3.6%, SLAB +3.5%, SN +3.5%, ZION +3%, BGCP+2.8%, T +2.7%, CMG +2.6%, WES +2.1%, STM +1.9%, BA +1.7%, LUV+1.7%, CMRE +1.6%, BAX +1.5%, APH +1.5%, TSS +1.4%, NYCB +1.4%,IVTY +1.3%, LEA +1%
M&A news:
  • IRBT +20.6%, (to acquire privately-held Robopolis SAS for $141 mln )
  • GUID +2.8% (o be acquired by OpenText (OTEX) for $7.10 per share)
  • SNI +1.3% (Viacom (VIAB) said to be willing to make an all-cash offer for Scripps, according to Reuters)
  • SHPG +1% (renewed M&A speculation)
Other news:
  • TTPH +28.6% (Tetraphase Pharmaceuticals announces top-line results from IGNITE4, the Company's phase 3 clinical trial evaluating the efficacy and safety of twice-daily intravenous (IV) eravacycline compared to meropenem for the treatment of patients with complicated intra-abdominal infections)
  • ARGS +25% (announces publication of immunogenicity data from a study of AGS-004 dendritic cell therapy in patients treated during acute HIV infection in the Journal of AIDS Research and Human Retroviruses)
  • ETRM +19.3% (enters into Collaboration Agreement with Galvani Bioelectronics Limited)
  • MDGS +5.1% (distribution agreement in Switzerland and Liechtenstein with ADMEDICS)
  • BLRX +2.2% (announces that BVF Partners will make an additional, direct investment of $9.6 million in BioLineRx, increasing its economic interest in the Company to 24.9%)
  • EVGN +2.2% (enter into multiyear collaboration with DuPont)
  • NVDA +1.4% (in sympathy with AMD)
Analyst comments:
  • OCUL +3.7% (initiated with a Buy at H.C. Wainwright)
  • EA +2% (upgraded to Buy from Neutral at BofA/Merrill)
  • DSW +1.9% (upgraded to Outperform from Neutral at Wedbush)

>>> US Early premarket gappers

Early premarket gappers
Gapping up:
  • TTPH +35.9%, IRBT +20.6%, ETRM +18.4%, OPHT +11.4%, AMD +9.4%, X+7.6%, SFS +7.4%, EXAS +7.2%, RCKY +3.8%, TRN +3.6%, RES +3.6%,SLAB +3.5%, SN +3.5%, MOS +3.2%, ZION +3%, T +2.7%, CMG +2.6%,CMG +2.6%, WES +2.1%, STM +1.9%, BA +1.7%, LUV +1.7%, CMRE+1.6%, NVDA +1.5%, EA +1.5%, BAX +1.5%, QCOM +1.4%, TSS +1.4%,NYCB +1.4%, WLL +1.3%, IVTY +1.3%, POT +1.2%, LEA +1%, RIG +0.9%,MU +0.9%, WOR +0.8%, CIGI +0.8%, HES +0.8%, WM +0.8%, CMC +0.7%,RETA +0.6%, TXN +0.6%, KO +0.5%
Gapping down:
  • FH -19.1%, USNA -14%, DRYS -11.3%, CGEN -11.1%, OEC -7.2%, OEC-7.2%, AKAM -6.7%, UHS -6.7%, APRN -5.3%, MC -4.5%, WYNN -4.4%,CHGG -4.2%, SIX -4.1%, CSL -3.6%, AMGN -2.9%, HA -2.9%, DHI -2.7%,PLX -2.6%, SFLY -2.3%, MLCO -2%, BKU -2%, F -2%, ESRX -1.9%, RHI-1.8%, LVS -1.7%, JNPR -1.5%, HT -1.5%, IR -1.4%, AOS -0.9%, ZTS-0.8%, FLIR -0.8%, DLB -0.7%, ANTM -0.5%

Market report: Chatter over bid for Shire puts suitors in frame

Market report: Chatter over bid for Shire puts suitors in frame

The City rumour mill was in full flow today as deal-hungry traders suggested drug-maker Shire was back in play.
Gossips said some of the biggest drugs firms in Europe and the US have hired advisers ahead of a possible tilt at the Dublin-based company.
They added that Shire, fearing lowball bids, had hired defence advisers.
Earlier this month, the FTSE 100 company’s chief executive Flemming Ornskov hinted that investors were valuing Shire too low after a 10% fall from the share price this year.
He pointed to the healthy pipeline of drugs, including for ADHD and haemophilia, which came as part of the £22 billion acquisition of Baxalta.
Shire accepted a £32 billion cash and shares bid in 2014 from US rival AbbVie worth around 5300p per share before a clampdown on tax inversion deals scuppered the takeover.
The shares now languish at 4284.5p, up another 63.31p, or 1.5%, today after gaining ground yesterday, valuing the firm at £39 billion. Shire declined to comment on the speculation.

>>> Boeing beats by $0.24, misses on revs; raises FY17 EPS above consensus, reaf

Boeing beats by $0.24, misses on revs; raises FY17 EPS above consensus, reaffirms FY17 revs guidance
  • Reports Q2 (Jun) earnings of $2.55 per share, excluding non-recurring items, $0.24 better than the Capital IQ Consensus of $2.31; revenues fell 8.1% year/year to $22.74 bln vs the $22.97 bln Capital IQ Consensus.
  • Co issues guidance for FY17, raises EPS to $9.80-10.00 from $9.20-9.40, excluding non-recurring items, vs. $9.40 Capital IQ Consensus; reaffirms FY17 revs of $90.5-92.5 bln vs. $92 bln Capital IQ Consensus Estimate. Operating cash flow guidance increased by $1.5 billion to $12.25 billion on solid execution and a cash tax benefit from accelerating pension funding in the third quarter of 2017. Additionally, capital expenditures guidance decreased by $300 million to $2.0 billion. reflecting planned production rates and timing of commercial and defense aircraft deliveries. Backlog grew to $482 billion, including $27 billion of net orders during the quarter

>>> NextEra Energy beats by $0.10, reports revs in-line; reaffirms FY17 EPS guid

NextEra Energy beats by $0.10, reports revs in-line; reaffirms FY17 EPS guidance; reaffirms FY18 EPS guidance
  • Reports Q2 (Jun) earnings of $1.86 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus of $1.76; revenues rose 15.4% year/year to $4.4 bln vs the $4.44 bln Capital IQ Consensus.
  • Co reaffirms guidance for FY17, sees EPS of $6.35-6.85, excluding non-recurring items, vs. $6.71 Capital IQ Consensus Estimate.
  • Co reaffirms guidance for FY18, sees EPS of $6.80-7.30, excluding non-recurring items, vs. $7.22 Capital IQ Consensus Estimate.
  • Reaffirms EPS expectations for FY20 of $7.85-8.45 vs $6.19 in FY16.
    "NextEra Energy achieved strong second-quarter results, while continuing to deliver on our overall objectives for 2017," said Jim Robo, chairman and chief executive officer of NextEra Energy. "NextEra Energy's second-quarter adjusted earnings per share increased more than 11 percent, primarily driven by new investments at both FPL and NextEra Energy Resources. During the quarter, FPL executed on its innovative and cost-effective approach of advancing affordable, reliable clean energy infrastructure across Florida. In line with this strategy, construction is underway on eight 74.5-megawatt solar energy centers across FPL's service territory, and construction remains on track at our state-of-the-art, natural gas-fueled Okeechobee Clean Energy Center. FPL also is moving forward with plans to modernize the Lauderdale Plant in Dania Beach by building a highly fuel-efficient energy center at the site. By continuing to execute on major capital initiatives to deliver on our outstanding customer value proposition, FPL grew regulatory capital employed by more than 10 percent versus the comparable period. At NextEra Energy Resources, we are well-positioned to capitalize on one of the best environments for renewables development in our history and remain encouraged by the improvement in costs, efficiencies and advancements in battery storage toward providing customers with firm renewable power. The Energy Resources team built on the origination success with which we started the year, signing more than 631 megawatts of additional wind and solar power purchase agreements and adding an additional 200 megawatts to our repowering backlog. Overall, we believe we have one of the best organic growth opportunity sets in our industry, and, as I've said previously, we will be disappointed if we are not able to deliver financial results at or near the top of our 6 to 8 percent adjusted earnings per share growth range through 2020."

>>> General Dynamics beats by $0.02, misses on revs; guides FY17 EPS in-line

General Dynamics beats by $0.02, misses on revs; guides FY17 EPS in-line
  • Reports Q2 (Jun) earnings of $2.45 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $2.43; revenues fell 1.3% year/year to $7.67 bln vs the $7.76 bln Capital IQ Consensus.
    • General Dynamics' total backlog at the end of second-quarter 2017 was $58.6 billion. There was order activity across the Gulfstream product portfolio and strong demand for defense products, including another quarter of a book-to-bill ratio (orders divided by revenue) greater than one-to-one in the Information Systems and Technology group. The estimated potential contract value, representing management's estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $24.4 billion. Total potential contract value, the sum of all backlog components, was $83 billion at the end of the quarter.
  • Co raises guidance for FY17, sees EPS of $9.70-9.75 (Prior $9.50-9.55), excluding non-recurring items, vs. $9.80 Capital IQ Consensus Estimate.
    • Briefing.com Note: It is not clear if the guidance is comparable to the estimate as there appears to be one outlier of $10.74.

>>> Hess misses by $0.15, beats on revs; co raises 2017 production guidance, low

Hess misses by $0.15, beats on revs; co raises 2017 production guidance, lower CapEx (45.37)
  • Reports Q2 (Jun) loss of $1.46 per share, $0.15 worse than the Capital IQ Consensus of ($1.31); revenues fell 3.2% year/year to $1.23 bln vs the $1.19 bln Capital IQ Consensus
  • Oil and gas production exceeded guidance; total production was 294,000 barrels of oil equivalent per day (boepd), excluding Libya; Bakken production was 108,000 boepd
  • The Corporation's average realized crude oil selling price, including the effect of hedging, was $45.95 per barrel in the second quarter of 2017, up from $41.95 per barrel in the year-ago quarter
  • The average realized natural gas liquids selling price in the second quarter of 2017 was $14.85 per barrel, versus $9.03 per barrel in the prior-year quarter, while the average realized natural gas selling price was $3.19 per mcf, compared with $3.58 per mcf in the second quarter of 2016
2017 Revised Full Year Guidance:
  • Net production guidance, excluding Libya, increased to 305,000 to 310,000 boepd, the upper end of previous guidance, even with the loss of 8,000 boepd of production associated with the sale of our enhanced oil recovery assets in the Permian Basin scheduled to close August 1st
  • E&P capital and exploratory expenditures are projected to be $2.15 billion, down from original guidance of $2.25 billion

>>> Rockwell Automation beats by $0.11, beats on revs; updates FY17 outlook (16

Rockwell Automation beats by $0.11, beats on revs; updates FY17 outlook
  • Reports Q3 (Jun) earnings of $1.76 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus of $1.65; revenues rose 8.5% year/year to $1.6 bln vs the $1.58 bln Capital IQ Consensus.
  • Co updates guidance for FY17, sees EPS of $6.60-6.80 (Prior $6.45-6.75), excluding non-recurring items, vs. $6.66 Capital IQ Consensus Estimate; sees FY17 revs of ~$6.29 bln (+~7%) (Prior +4.5-7.5%) vs. $6.27 bln Capital IQ Consensus Estimate.
  • "I am pleased to see broad-based sales growth across regions and industries. Growth was led by double-digit increases in Asia Pacific and Latin America. The U.S., our largest market, was up 10 percent, including the contribution from acquisitions. Transportation, food and beverage, and semiconductor were strong."

>>>Baxter beats by $0.06, reports revs in-line; guides Q3 EPS above consensus, r

Baxter beats by $0.06, reports revs in-line; guides Q3 EPS above consensus, revs above consensus; raises FY17 EPS above consensus, revs above consensus (62.09)
  • Reports Q2 (Jun) earnings of $0.63 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $0.57; revenues rose 0.8% year/year to $2.61 bln vs the $2.59 bln Capital IQ Consensus.
  • Co issues upside guidance for Q3, sees EPS of $0.58-0.60 vs. $0.56 Capital IQ Consensus Estimate; sees Q3 revs growth of 6% YoY, which calculates to ~$2.71 bln vs. $2.59 bln Capital IQ Consensus Estimate.
  • Co raises guidance for FY17, sees EPS of $2.34-2.40, excluding non-recurring items, up from $2.20-2.28, vs. $2.27 Capital IQ Consensus Estimate; sees FY17 revs growth of 5%, which calculates to ~$10.67 bln vs. $10.37 bln Capital IQ Consensus Estimate