>>> US Early premarket gappers

Early premarket gappers
Gapping up: PIP +26.7%, ADHD +11.5%, DRYS +8.2%, RE +8.1%, JLL+7.8%, PMD +7.2%, MFIN +7.1%, HQY +6.4%, GLBS +6.2%, ACM+5.7%, NOV +5.3%, ALSN +5.1%, AVXL +4.9%, FN +4%, GPS +2.7%,PAHC +2%, NOK +1.9%, EMR +1.8%, CHD +1.4%, CAT +1.1%, BIIB+1%, CNC +1%, QSR +0.8%, RIO +0.7%, NVDA +0.6%, TWO +0.6%

Gapping down: GIGA -26.6%, KTOV -24.3%, AUPH -8.1%, KORS-6.7%, YRCW -4.8%, FMC -4.4%, KN -4.3%, ALLT -3.4%, ARWR-3.2%, BP -3.2%, MAC -2.9%, HLI -2.6%, TEVA -2.5%, LMNX -2.4%,KGC -2.2%, AM -2.1%, AUY -2%, TLLP -2%, STO -1.9%, BMI -1.8%,AU -1.7%, CLLS -1.6%, ABX -1.4%, HMY -1.4%, GFI -1.4%, ING-1.4%, NEM -1.2%, CS -1.1%, GAIN -1.1%, GDX -1%, EBAY -0.9%,GOLD -0.8%, SLV -0.7%, AG -0.7%, FOXA -0.7

>>> Michael Kors reports EPS in-line, misses on revs; guides Q4 EPS and revenue

--> -7.95% Pre mkt 50k sgares traded

Michael Kors reports EPS in-line, misses on revs; guides Q4 EPS and revenue below consensus (41.28)

  • Reports Q3 (Dec) earnings of $1.64 per share, in-line with the Capital IQ Consensus of $1.64; revenues fell 3.2% year/year to $1.35 bln vs the $1.37 bln Capital IQ Consensus. Retail net sales increased 9.2% to $836.7 million driven primarily by 193 net new store openings since the end of the third quarter of fiscal 2016, including 143 stores associated with the Company's recent acquisitions of the previously licensed operations in Greater China and South Korea.
  • Comparable sales decreased 6.9% vs. mid-single digit decline guidance. On a constant currency basis, retail net sales increased 10.0%, and comparable sales decreased 6.4%. Wholesale net sales decreased 17.8% to $473.1 million and on a constant currency basis, wholesale net sales decreased 17.5%. Licensing revenue decreased 22.9% to $43.0 million.
  • Total revenue in the Americas decreased 7.4% to $983.8 million on a reported basis and decreased 7.5% on a constant currency basis. European revenue decreased 7.0% to $256.7 million on a reported basis, and decreased 2.7% on a constant currency basis. Revenue in Asia increased 89.1% to $112.3 million on a reported basis, and increased 84.0% on a constant currency basis, largely driven by the Company's recent acquisitions of the previously licensed operations in Greater China and South Korea.
  • Gross profit decreased 3.1% to $805.7 million, and as a percentage of total revenue was 59.6%. Foreign currency translation and transaction favorably impacted gross profit margin by ~30 basis points. This compares to gross margin of 59.5% in the third quarter of fiscal 2016.
  • Operating margin -400 bps to 25.3% vs. 25% guidance.
  • Co issues downside guidance for Q4, sees EPS of $0.68-0.72 vs. $0.94 Capital IQ Consensus Estimate; sees Q4 revs of $1.035-1.055 bln vs. $1.11 bln Capital IQ Consensus, which includes a planned reduction in wholesale shipments, and a comparable sales decrease in the low-teens range. The Company expects operating margin to be ~14.0%.

>>> Mauser Group to be acquired by Stone Canyon Industries for $2.3 bln in cash

Mauser Group to be acquired by Stone Canyon Industries for $2.3 bln in cash

Stone Canyon Industries announced that it entered into a definitive purchase agreement to acquire Mauser Group N.V., a global supplier of rigid packaging products and services for industrial use, from Clayton, Dubilier & Rice. SCI, through its subsidiary BWAY Corp., is the leading North American manufacturer of rigid metal and plastic containers. The all-cash transaction is valued at $2.3 billion.
  • Mauser had a planned IPO for this week

>>> PreMArket Indications

RBC PRE-MKT INDICATIONS:
*AUTOS: -1% TOYOTA (-2.26%) post weak earnings, GEELY (-3.61%).
*BELLWAY: +1% trading update, H1 housing completions +6.5%, FY volume growth 5%.
*BNP: -1% Q4 net miss, CET1 ratio in line, IB better, French retail banking weak.
*BP: -3% Q4 net income $400M v $567.7M cons, Macondo '17 payment guid higher.
*CAIXABANK: -2% placing of CRITERIA CIXA 5.3% stake @ €3.36 per share.
*FIRSTGROUP: 0% Q3 trading in line, FY outlook confirmed.
*GEA GROUP: +2% Q4 orders 3% ahead, op results broadly in line, outlook in line.
*HANNOVER RUE: +2% '16 net income beat €1.17B v €1.07B consensus.
*HMB: +1% positive read from GAP (+2.36%) after hours on better sales data.
*MUNICH RE: +1% Q4 preliminary earnings miss €0.5B v €0.625B consensus, div ahead.
*NESTE: +1% Q4 rev beat €3.42B v €3.02B consensus, dividend ahead.
*PANDORA: -2% Q4 sales in line, Q1 cautious, FY'17 guidance conservative.
*RENTOKIL: +1% acquired ALLGOOD PEST in US, $26M revs.
*SHANKS GROUP: 0% Q3 trading in line with H1, Commercial Division performed well.
*SPEEDY HIRE: +2% Q4 group LFL +10.6%, recovery plan on track, upgrading FY guidance.
*STATOIL: -3% Q4 results miss, lower production & higher exploration write-offs.
*TALANX: +2% FY net income ahead €900M v FY'15 €734M, dividend ahead.

ML calls

ST MODWEN - EPRA NAV +3.2% v +2.1% from May. Strong perf in resi biz (338)..+5%
FIRSTGROUP - Beats across the group. CEO expects good progress for yr (107).+3%
DCC - Q3 op profit strongly ahead of '16. Making an acq in Norway (6550)....+3%
GEA - Q4 3% miss but solid guide & buyback likely to support stock (38)...+2-3%
NESTE - 4Q rev EU3.42b v est EU3.02b, adj net EU228m v EU197m est (33.56)...+2%
RENTOKIL - Announce a small acqusition of Allgood Pest Solutions (236.1)....+2%
KLEPIERRE - Net current cash flow per shr +6.8%, ahead of guidance (35.4)...+1%
BELLWAY - Completions up 6.5% to 4,462, with a margin of 'around 22%' (2540)+1%
HANNOVER RE - Surprise positive pre-announcement. NI €1.17bn v €950m (103)..+1%
MINERS - Copper u/c, Iron Ore fut +3% with BHP OZ +0.19%, RIO OZ +0.4%....+0.5%
PLAYTECH - Buys Eyecon for Total Consideration of GBP50m. Small +ve (880).+0.5%
UBS - We UPGRADE to Neutral, taking our PO to CHF 17. Sector weak (15.82)...u/c
MUNICH RE - Modest miss with v high Q4 combined ratio will weigh (173.2)..-1-2%
STATOIL - Mixed. EBIT weak on intl. Cashflow also looks light to us (153.7).-2%
BP - Miss on NI, $400m v $570m. Expect higher prodn YoY for '17 (464)....-2-3%
BNP - Revs & capital inline but big (21%) miss in domestic retail (58.2)....-3%
PANDORA - Inline. LFL stable but FY guidance more conservative v cons (845).-4%

CS
AMS -1-2% Q4 in line, Q1 guidance disappointing
Bellway +2% Customer demand continues to be robust, help to buy
strong
BNP -1-2% Net EU1.44B est EU1.63B, div slightly light
BP -1-2% Bottom Line $400m vs street at $540m, downstream weak
Cramo -3% 4Q sales EU192.9m vs est. EU197.5m
Daimler +0.5% China Heavy Duty truck sales jumped +122% y/y
Daetwyler -1% FY16 EBIT 1% light, net profit impacted by one off
DCC +1-2% Trading inline with expectations
First Grp M/P North America benefitting from fx, FY unchanged
Fiat M/P Investigation results sent to the Paris prosecutor
Gea Group +2-3% 3% beat on orders, buyback for as much as Eu450m
Hannover Re +1% Net profit 1.17bn cons at 1.1bn, raised guidance last
week
Klepierre +1-2% Scandinavia and Spain better, net cash better
Miners UNCH Copper -0.20%, Brent -0.60%, Iron Ore +3.40%, China
-0.40%
Munich Re -1-2% Q4 Net at 500m cons 600m, Op profit 800m cons 918m
Neste M/P 4q Op profit 262mln cons 265mln
Oerlikon M/P Investing CHf55m in a new US production centre
Pandora +3% FY16 EBITDA DK7.92bn vs cons DK7.90bn, guidance fine
Playtech M/P Acquisition of Eyecon for £50m
Plus500 M/P Revs slightly ahead $327.9m vs cons $323.54
Rentokil M/P Acquisition - Allgood Services of Georgia
Sanoma -1-2% Q4 numbers inline BUT DIVIDEND SLIGHTLY LIGHT
Statoil -2-3% Bottom line 1664m vs 1869 cons, capex guidance higher
UK Hbuilders +1-2% Government pledging to fix Britain's broken housing
market
Volvo +0.5% China Heavy Duty truck sales jumped +122% y/y
Volkswagen +0.5% China Heavy Duty truck sales jumped +122% y/y

MF
*BNP-Q4 Net 1.55b(1.63),Lifts Divi to €2.7,pledges higher p/out..........-2% 
*HANNOVER RE-2016 Ebit 1.69b(1.601),Net 1.17b,Gross Prem 16.4b...........+1% 
*AMS-FY Sales 549.9m(547.2),Ebit 97.1m(95.9),NP 102.9m(93.4),o/lk poor...-1% 
*PRISA-Blackstone interested in Prisa's Santillana - El Conf'd...........+0.5% 
*STATOIL-Net -$40m(618),Divi 22c(22),Adj Operating Pft $1.66b............-2% 
*DEUT TELEKOM-Seeks to divest its Romanian Unit(9m t/o €718m)............-0.5% 
*GAS NATS-To run strategic review of Italian Assets woth €700m...........+0.25% 
*METRO-Shareholders agree to split as CEO promises faster action.........-2%
*GEA-Q4 Ord Intake 1.223b(1.17).Sales 1.293b(1.31),Ebitda 214m(196)......+2% 
*MUNICH RE-NI 500m(630),OP 800m(927.6),Gross Prems 12.1b(12.22)..........-1%
*PANDORA-FY16 Rev 20.3b(20.3),Ebitda 7.92b(7.9),Divi 9,B/B 1.8b..........+2% 
*TALANX-Sees '17 Net around 800m(845),FY Net above 900m(857).............+1.5% 
*DAETWYLER-FY Ebit 146m(147.7),NP 57.6m(74.3),FY17 Margin 11-14%(13.8)...+1% 
*JENOPTIK-Rev 685m(691),Ebit 68m(66),Margin <10%(9.6),o/lk better........+1% 
*KLEPIERRE-FY Net current cash flow €2.31,Divi 1.82......................+1%

(CS) Hennes & Mauritz (HMB SS)

Addressing the pushback 
■ Following the surprising 4Q results last week, and the optimistic tone taken by management as it enters the "Exciting development phase" of multi-channel growth, we remain cautious on both near-term execution and H&M's long-term prospects. 
■ While S/S comps are very soft, H&M first needs to clear record levels of Y/E inventory (128 days) through what is the smallest quarter of the year. In our view a clean inventory position at 1Q (105 days) would require a 14% Q/Q inventory reduction. Our forecast of markdown reduction in 2Q may prove optimistic. 
■ Collect at store (finally being trialled in the UK) is not a magic bullet for many retailers, particularly at H&M's price points, given high levels of cannibalisation and incremental cost of picking and transport. To be accretive we believe that H&M needs in-store picking, but the RFID required will not be rolled out before at least 2018, and probably beyond. 
■ Branding and Merchandising seem increasingly disconnected: Communication seems to focus on endless clearance and low price points, and there seems to be very little that is aspirational about the brand, at a time when it seems to be squeezed between Primark and Zara in key markets. 
■ The current CS HOLT® default gives a warranted price of SKr279, however as an eCap stock this implies a 10 year fade in asset growth and little decline in CFROI®. Fundamentally we disagree with management's strategy of targeting double digit sales and space growth, given that store numbers have grown 76% in the past 5 years. Without slowing store growth to stabilise the platform, reduce cannibalisation and de-emphasise weaker markets, margins and returns will remain under pressure. On 19x PER the shares do not reflect our forecast of 5Y EPS growth of 8.4%.

>>> What to look at today - 7th of February 2017

Dow -0.09% S&P -0.21% Nasdaq -0.06% Russell -0.83%
US Market closed naer the flat line in a quiet session. 10-yr yield closed five basis points lower at 2.41% as the Trump administration's timing of corporate tax reform and increased infrastructure spending, two factors that fueled the post-election rally, remains unclear. On the earnings front, Hasbro spiked 14.1%, while Tyson Foods, Sysco, and Newell Brands lost between 2.6% and 5.7%. consumer discretionary (-0.3%) and consumer staples (-0.4%). The industrial space (+0.1%) was the only other sector to finish in the green.At the opposite end of the leaderboard was the energy space (-0.9%) amid a poor performance from crude oil. The energy component finished 1.5% lower at $53.01/bbl. US After Hours NOV +6%, ALSN +5%, FN +4%, GPS +2% higher following earnings/guidance/SSS, shipper momentum continues ... FMC -5%, YRCW -5%, KN -4% lower following earnings/guidance. Asia indices little changed, tracking mixed sentiment in US session, where investor flows sought the safety of US treasuries; After market close, Fed's Harker (voter) said March rate hike possibility is still on the table, reiterating commitment to raise rates 3 times this year. PBOC has once again skipped reverse repo operations after a 10bp increases in offer rates on Friday, claiming liquidity is ample.

Nikkei -0.35% Hang Seng -0.01% CSI -0.38% Shanghai -0.31%

Eur$ 1.0695 CNH 6.8202 CNY 6.8764 JPY 111.86 GBP 1.2440 CHF 0.9955 RUB 59.1256 WTI$ 53.11 +0.17%

S&P -0.04% EuroStoxx -0.65% Dax -0.52% SMI -0.27%

Macro :
- Abe Says GPIF Can Make Its Own Call on U.S. Infra Investment

Keep an eye on :
- AAPL US : Cook Says Apple ’Discretely’ Acquired French Cos.: Le Figaro
- BNP FP : BNP Paribas Posts Profit That Misses Estimates, Plans Cost Cuts, BNP’s 50% Dividend Payout Will Depend on Regulatory Changes: CFO
- CABK SM : Criteria Caixa Sells CaixaBank Shares at EU3.3572/Shr: Filing
- CABK SM : CaixaBank Added to Conviction Buy at Goldman, Santander Removed
- ALCLS FP : Cellectis Gets IND Approval for Gene-Edited Allogeneic CAR-T
- DB1 GY : Deutsche Boerse Supervisory Board Has ‘Full Confidence’ in CEO
- DB1 GY : Deutsche Börse to Sell LCH.Clearnet as Remedy for EC Approval
- DTE GY : Deutsche Telekom Seeks to Divest Its Romanian Unit: Boersen-Z.
- FCA IM : French Ministers Say Investigation Into Fiat Emissions Complete
- GAS SM : Gas Natural Said to Run Strategic Review of Italian Assets: Rtrs
- GEA GY : GEA Group FY Revenue, Op. Ebitda in Line With October Forecasts
- GEA GY : GEA Plans to Buy Back Shares for as Much as 450 Million Euros
- HNR1 GY : Hannover Re Says Full-Year Profit Rose 1.7% to About EU1.17B
- JNJ US : J&J Will ‘Vigorously’ Defend Breast Implant Lawsuits
- JEN GY : Jenoptik 2016 Revenue About EU685M; Net Debt Cleared
- MONC IM : Buy Moncler Before Patent Box Accord Is Released, Macquarie Says
- MUV2 GY : Munich Re 4Q Preliminary Profit Falls; Raises Dividend Payout
- PNDORA DC : Pandora FY Net Beats Estimates; Buys Back DKK1.8b of Own Shares
- PAR FP : Paref Says It Got Firm Offer From Fosun for EU75/Shr
- STL NO : Statoil 4Q Adj. Net Loss $40M Misses Est. $618M Profit; 22c Div
- STL NO : Statoil 4Q Total Output 2,095MBOE/Day Versus 2,046 Year Earlier
- TEF SM : Telefonica likely to keep O2 IPO on ice through UK spectrum auction
- TKA GY : Thyssenkrupp Is Potential Beneficiary From Steel M&A: Macquarie
- TRI FP : Trigano Chairman Feuillet Has No Desire to Sell Company: Figaro
- VOW3 GY : VW Might Cap Executive Compensation at EU10 Mln: Handelsblatt

>>> Europe : Brokers Upgrades & Downgrades - 7th of February 201

>>> Up
*Aker BP Raised to Buy at SEB Equities, PT NOK180
*Bankia Raised to Neutral at Goldman
*Berendsen Raised to Outperform at RBC, PT 950p
*Cairn Energy Raised to Buy at Deutsche Bank, PT 275p
*CaixaBank Raised to Buy at Goldman
*Nokia Raised to Overweight at Morgan Stanley
*Nordea Raised to Reduce at AlphaValue
*TGS Raised to Hold at SEB Equities, PT NOK200
*ThyssenKrupp Raised to Outperform at Macquarie

>>> Down
*Banco Popular Cut to Underweight at CaixaBank, PT EU0.80
*Bankinter Cut to Sell at Goldman
*PhotoCure Cut to Hold at Norne Securities, PT NOK50
*Premier Oil Cut to Hold at Deutsche Bank
*SKF Cut to Hold at Berenberg, PT SEK175
*Telefonica Deutschland Cut to Underperform at Macquarie, PT EU3
*Uniper Cut to Hold at SocGen, PT EU13.60
*Zurich Ins. Cut to Reduce at Commerzbank, PT CHF275

>>> PT Change


>>> Initiation
*Philips Rated New Hold at Berenberg, PT EU27
*SCA Resumed Overweight at JPMorgan, PT SEK315

>>> Call
>> Stock
*SANTANDER REMOVED FROM CONVICTION LIST AT GOLDMAN, STAYS BUY