- Reports Q1 (Mar) earnings of $1.41 per share, excluding non-recurring items, $0.13 better than the Capital IQ Consensus of $1.28; revenues fell 11.7% year/year to $16.27 bln vs the $17.02 bln Capital IQ Consensus.
- RoE 5.0% compared to 12.6% in prior year.
- Book value, excluding AOCI other than FCTA, was $50.52 per share, down 5 percent from $53.31 at March 31, 2016.
- MetLife's first quarter 2017 operating ROE, excluding AOCI other than FCTA, was 11.3 percent, and the company's operating tangible ROE was 13.8 percent.
- Reports Q1 (Mar) earnings of $0.30 per share, excluding non-recurring items, $0.17 better than the Capital IQ Consensus of $0.13; revenues rose 2.7% year/year to $3.54 bln vs the $3.56 bln Capital IQ Consensus.
- The company reaffirmed its full year targets for adjusted EBITDA of at least $1.35 billion for 2017 and at least $1.575 billion for 2018.
- The company also reaffirmed its 2017-2018 cumulative free cash flow target of approximately $900 million, including at least $350 million of free cash flow generated in 2017.
- Reports Q1 (Mar) earnings of $0.05 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of ($0.00); revenues rose 3.3% year/year to $1.04 bln vs the $0.99 bln Capital IQ Consensus as record sales volumes were partially offset by lower average selling prices across all segments
- Highest sales volume for any quarter in company's history, 4.75 million tons
- Largest production volume for any quarter in company's history
- Additionally, exports of ammonia and UAN were significantly higher year-over-year as the co continues to leverage its North American platform and develop a global portfolio of customers in order to optimize the overall businessAverage selling prices in Q1 of 2017 were lower than average selling prices in Q1 of 2016 due to greater global nitrogen supply availability
- The average selling price for ammonia was $307 per ton in Q1 of 2017 compared to $362 per ton in Q1 of 2016.
- The average selling price for urea was $248 per ton in Q1 of 2017 compared to $256 per ton in Q1 of 2016
- The average selling price for UAN was $171 per ton in Q1 of 2017 compared to $213 per ton in the first quarter of 2016
- CF believes nitrogen demand remains strong during the spring application season for nitrogen-consuming crops, including the ~90 million acres of corn expected to be planted in the United States
- Wet and cold weather in the Midwest that lasted from March into late April stopped field work and delayed ammonia applications there, with activity having accelerated more recently. Additionally, upgraded products such as urea and UAN will be required to make up for ammonia not applied during the fall or early spring application seasons
- The global nitrogen supply surplus continues to pressure marginal producers in China and other regions. Chinese urea production costs are estimated to be $15-$20 per metric ton higher than the middle of 2016 due primarily to higher anthracite coal prices
- Published operating rates in China during the first quarter averaged 57%, and there have been significantly lower Chinese urea exports so far this year. Urea exports from China during the first quarter were ~1.2 million metric tons, the lowest quarterly volume since the second quarter of 2013. CF continues to expect 5-6 million metric tons of total urea exports from China in 2017, a decline of up to 44 percent compared to 2016 and up to 64 percent compared to 2015
- CF anticipates this uneven pricing environment to continue through 2017, with a spring increase possible before prices return to seasonally low levels during the summer
Closing Market Summary: S&P 500 Posts First Loss of the WeekThe major averages held modest losses throughout Wednesday's session, but a late-afternoon uptick left the S&P 500 (-0.1%) just short of its unchanged mark. The Dow (unch) eked out a small win while the tech-heavy Nasdaq (-0.4%) and the domestically-oriented Russell 2000 (-0.6%) underperformed.
While there were some flaws in Apple's (AAPL 147.06, -0.45) latest earnings report--the number of iPhone units sold was below expectations, iPad unit sales fell below 10 million for the first time in six years, and sales in China were down 14.0% year-over-year--the tech giant largely overcame those concerns to end just a step below the broader market. The company's above-consensus earnings and upcoming iPhone 8 release helped keep losses in check.
With Apple not performing at the top of its game, the top-weighted technology sector (-0.1%) turned to Alphabet (GOOGL 948.45, +11.36) and chipmakers for support. GOOGL finished higher by 1.2% while the PHLX Semiconductor Index added 0.3% on First Solar's (FSLR 33.91, +3.59) better than expected earnings/revenues and upbeat guidance. FSLR shares spiked 11.8%.
Lightly-weighted sectors like real estate (-1.3%), telecom services (-0.6%), and materials (-1.0%) populated the bottom of the day's leaderboard with the weakness in the materials group owed to the commodity market's poor performance; gold (-0.8%), silver (-1.4%), and copper (-4.2%) all settled with solid losses. However, crude oil was able to eke out a win despite the EIA reporting a smaller than expected draw for the week ended April 28 (0.9 million actual vs 2.0 million consensus). The energy sector made the most of the relatively upbeat performance, adding 0.3%.
Media names weighed on the consumer discretionary sector (-0.6%) in today's session after Hulu announced a new live TV service for $40/month. Twenty-First Century Fox (FOX 28.35, -1.50) showed the widest decline, losing 5.0%, while Dow component Walt Disney (DIS 111.62, -2.75) tumbled 2.4%. The remaining laggards--health care and utilities--closed with losses of 0.4% and 0.5%, respectively.
On the flip side, the consumer staples (+0.1%) and financials (+0.6%) spaces outperformed. The consumer staples group received some help from Mondelez International (MDLZ 45.03, +1.29) and Estee Lauder (EL 91.30, +3.82), both of which beat earnings estimates. Meanwhile, the financial sector benefited from Allstate's (ALL 84.93, +3.10) better than expected earnings and revenues. The industrial sector (+0.1%) was the last sector to finish in positive territory.
The FOMC voted unanimously to leave the fed funds target range unchanged at 0.75%-1.00%, as expected, with the accompanying policy statement providing little new information. The market still expects the Fed to raise rates at its June meeting with the CME FedWatch Tool assigning an implied probability of 70.7% to said event. Treasuries settled generally lower with the 2-yr yield (1.29%) and the 10-yr yield (2.31%) adding three basis points apiece.
Market participants received a number of economic reports on Wednesday, including April ADP Employment Change, the April ISM Services Index, and the weekly MBA Mortgage Applications Index:
- The ADP National Employment Report showed an increase of 177,000 in April (consensus 170,000) while the March reading was revised lower to 255,000 from 263,000.
- The ADP reading precedes Friday's more influential Employment Situation Report for April, which the consensus expects will show the addition of 180,000 nonfarm payrolls. The Employment Situation Report for March indicated that nonfarm payrolls increased by 98,000.
- The ISM Services Index for April rose to 57.5 from an unrevised reading of 55.2 in March while the consensus expected an uptick to 55.8.
- The key takeaway from the report is that the non-manufacturing side of the economy, which accounts for a much larger slice of GDP than the manufacturing sector does, continues to hum along in an expansion mode, with new order activity driving the acceleration in April.
- The weekly MBA Mortgage Applications Index decreased 0.1% to follow last week's 2.7% increase.
Tomorrow, investors will receive a slew of economic data, including March Trade Balance (consensus -$44.4 billion), Initial Claims (Briefing.com consensus 246,000), and the preliminary reading of first quarter Productivity (consensus 0.1%) and Unit Labor Costs (consensus 2.6%) at 8:30 ET and March Factory Orders (Briefing.com consensus 0.4%), which will cross the wires a little later at 10:00 ET.
- Nasdaq Composite +12.8% YTD
- S&P 500 +6.7% YTD
- Dow Jones Industrial Average +6.1% YTD
- Russell 2000 +2.5% YTD
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- Like other digital pay TV services, Hulu Live doesn’t have all of the local affiliate deals it needs at launch. That means subscribers in some cities may not be able to watch programming carried by their local broadcast stations live, though they could watch it after it airs. Hulu thinks most of those deals will get done in the coming months.
- If Hulu doesn’t get those deals done by next fall, it may impact its ability to deliver NFL games — for some people, the main reason to pay for TV.
- Like other digital pay TV services, Hulu will let viewers watch shows on demand — but in most cases it won’t let them fast-forward through commercials. If you want the equivalent of the DVR you can get with traditional TV, which does let you skip past commercials and anything else you want, Hulu will sell that to you, with 200 hours worth of storage, for an extra $15 a month.