>>> Bunge beats by $0.40, beats on revs; reaffirms earnings growth for FY16

Bunge beats by $0.40, beats on revs; reaffirms earnings growth for FY16
  • Reports Q2 (Jun) earnings of $0.79 per share, excluding non-recurring items, $0.40 better than the Capital IQ Consensus of $0.39; revenues fell 2.2% year/year to $10.54 bln vs the $9.96 bln Capital IQ Consensus.
  • "Second quarter earnings were better than expected due to strong performance in Grains and favorable soy processing mark-to-market, which pulled some earnings forward. Our Agribusiness team and footprint allowed us to manage through a period of significant volatility in both prices and margins. In Food & Ingredients, Milling results were higher in all regions, reflecting better market conditions in Brazil and operational and commercial improvements. Edible Oils grew volumes, but margins continued to be under pressure in Brazil and parts of Eastern Europe. Sugar & Bioenergy results came in as expected with an outlook for a strong second half of the year. Our performance improvement programs have delivered approximately $60 million of savings year-to-date toward the full year estimate of $125 million."
  • "We continue to expect earnings growth in 2016 with returns on capital well above WACC; however, second half earnings will be weighted to the fourth quarter coinciding with Northern Hemisphere harvests."
  • "We also expect the mark-to-market gains we benefitted from in the second quarter to largely reverse in the third quarter. "In Food & Ingredients, we expect 2016 segment EBIT to be $10 to $30 million higher than last year's adjusted result of $192 million, primarily driven by our operational and commercial excellence initiatives and recent acquisitions. We have lowered the range of our previous outlook to reflect the continued challenging conditions in certain Edible Oils markets. Milling is on track and should continue to benefit from a very competitive footprint. "In Fertilizer, there is no change to our outlook, and we continue to expect 2016 segment EBIT to be ~$30 million higher than last year's result of $5 million, driven by improved farmer economics in Argentina, which should result in increased purchases of crop inputs. "In Sugar & Bioenergy, we are entering the seasonally strong period of the year when ATR yields rapidly increase. Our sugarcane milling operations are trending well, and the segment remains on target to grow segment EBIT by $70 to $80 million, assuming normal weather patterns, compared to last year's adjusted loss of $22 million."

>>> Thermo Fisher beats by $0.02, reports revs in-line; reaffirms FY16 EPS guida

Thermo Fisher beats by $0.02, reports revs in-line; reaffirms FY16 EPS guidance, slighly lowers and guides FY16 revs in-line

  • Reports Q2 (Jun) earnings of $2.03 per share, $0.02 better than the Capital IQ Consensus of $2.01; revenues rose 6.2% year/year to $4.54 bln vs the $4.49 bln Capital IQ Consensus.
    • Life Sciences Solutions Segment - In the second quarter of 2016, Life Sciences Solutions Segment revenue grew 13% to $1.28 billion, compared with revenue of $1.13 billion in the second quarter of 2015. Segment operating margin was 28.9% versus 28.6% in 2015.
    • Analytical Instruments Segment - Analytical Instruments Segment revenue increased 2% to $794 million in the second quarter of 2016, compared with revenue of $777 million in the second quarter of 2015. Segment operating margin was 18.3% versus 18.0% in the 2015 quarter.
    • Specialty Diagnostics Segment - Specialty Diagnostics Segment revenue in the second quarter increased 4% to $851 million in 2016, compared with revenue of $817 million in the second quarter of 2015. Segment operating margin was 27.9% versus 27.8% in the 2015 quarter.
    • Laboratory Products and Services Segment - In the second quarter of 2016, Laboratory Products and Services Segment revenue grew 6% to $1.80 billion, compared with revenue of $1.69 billion in the second quarter of 2015. Segment operating margin was 15.5% versus 15.4% in the 2015 quarter.
  • Co issues guidance for FY16, sees EPS of $8.07-8.20 vs. $8.13 Capital IQ Consensus Estimate and versus prior guidance of $8.05 to $8.19; sees FY16 revs of $17.84-18.00 bln vs. $17.95 bln Capital IQ Consensus Estimate and versus its prior guidance of $17.86-18.04 bln.

>>> Praxair beats by $0.03, beats on revs; guides Q3 EPS below consensus; narrow

Praxair beats by $0.03, beats on revs; guides Q3 EPS below consensus; narrows FY16 EPS outlook
  • Reports Q2 (Jun) earnings of $1.39 per share, $0.03 better than the Capital IQ Consensus of $1.36; revenues fell 2.7% year/year to $2.67 bln vs the $2.61 bln Capital IQ Consensus.
  • Volume growth from new on-site projects, largely in Asia, Europe and South America, was offset by lower base business volumes in the Americas, due primarily to weaker industrial manufacturing activity in the United States and Brazil, and weaker demand in the upstream energy end-market in North America.
  • Co issues downside guidance for Q3, sees EPS of $1.35-1.42 vs. $1.44 Capital IQ Consensus Estimate.
  • Co updates guidance for FY16, sees EPS of $5.45-5.60 (Prior $5.35-5.70) vs. $5.56 Capital IQ Consensus Estimate.

(UBS) Moncler Spa - LFL beats but small EBIT miss due to one-offs

Moncler Spa - LFL beats but small EBIT miss due to one-offs
Q: How did the results compare vs expectations?
A: Adjusted EBIT of €59m was a €2m miss vs UBSe, impacted by higher than expected costs related
mainly to flagship stores not yet opened in H1 (€4m 1H16 vs €1m 1H15).
Q: What were the most noteworthy areas in the results?
A: H1 retail LFL +5% (UBSe +4%) was consistent across the two quarters and positive in all regions.
Inventory growth +2% reflects tighter management this year with a focus on ensuring full price sell-out.
FY17 store openings initially indicated at 9-11 (FY16 15).
Q: Has the company's outlook/guidance changed?
A: No, FY16 store and cost guidance remains consistent with prior indications.
Q: How would we expect investors to react?
A: Given we don't expect significant changes to FY16 estimates following this print we only expect a
limited reaction; September is the first important month for H2 Retail.

(UBS) Anheuser-Busch InBev - 2Q16 preview: UBS and Consensus looking for 2Q orga

Anheuser-Busch InBev - 2Q16 preview: UBS and Consensus looking for 2Q organic EBITDA c6%

UBSe 2Q organic EBITDA +5.8% vs consensus +6.1%
AB InBev reports 2Q earnings on 29th July at 6am UK/7am CET. We forecast Q2 organic sales +5.7%
(in line with consensus) and clean EBITDA of $4,057m (-1.3% below company compiled consensus
published today). At the normalized EPS line we forecast $1.07 (-9% yoy), in-line with consensus of
$1.08/share. See page 3 for our full detailed and divisional estimates vs consensus.
US vols & price/mix to improve sequentially, Mexico momentum to continue
We forecast US Shipments to Wholesalers flat in 2Q vs -1.2% in 1Q. For total North America,
consensus forecasts volumes -0.9% vs UBSe +1.2% driven by Canada. We expect US price/mix to
grow +1.9% organically, a 70bps acceleration on 1Q driven by positive mix (see our recent review of
the latest Nielsen data) and an easier comparative. For North America overall in 2Q, consensus
forecasts clean EBITDA +2.0% organically and reported margins +30bps yoy. We estimate North
America EBITDA to grow +4.4% organically yoy. In Mexico we forecast another strong quarter with
volume up 8%, in line with consensus. However we are below consensus on EBITDA given our
expectations of rising marketing costs as a % of sales and continued capacity constraints ahead of new
capacity coming in early 2017.
UBSe Brazil beer volumes +3% vs -10% in 1Q
We expect Brazil beer volumes to rebound to +3% vs -10% in 1Q, driven by an easier comparatives
and the absence of some technical which weighed on 1Q (weather, earlier Carnival). We note that
production data for Brazil shows industry volumes +3.2% in 2Q. See recent review of production and
weather trends by our LatAm team – better times are coming. For total LatAm North in 2Q, consensus
forecasts volumes +2.8%, price/mix +6.2% and organic EBITDA +9% (UBSe +6%).
Valuation: pro-forma P/E 19x 2018E, in line with Consumer Staples
AB InBev currently trades on a pro-forma PE of 19.3x 2018e, in line with the average of European
Consumer Staples.

(JPM) Moncler - This is good and better when diving in the details

Moncler reported H1 16 results after close on 27th July that came in +17% to
€346m Sales and adj EBITDA +10% to €78m, or in line and 3% below JPME
respectively. However, this included excess rent costs relating to upcoming
openings (€3m incremental) and ‘Retail excellence summit’ costs. Excl those,
adj EBITDA would have been +16% on our calcs, 2% higher than JPME. H1
is a small semester for Moncler arguably (80% of EBIT is derived in H2 for
this highly winter biased business) and the stock is up meaningfully YTD
(+21% vs sector -7%). But underlying costs better controlled than expected
and a valuation that remains undemanding for its growth profile make this
attractive still, in our view. Moncler trades on 18.1x CY16E earnings vs sector
on 17.3x on a faster growth profile. Some investors raise the risk of Private
Equity placing as Eurazeo last placed 5 days after a strong reporting (at €17.2)
and still has a 15.5% stake, an increasingly lower stake to swallow though.
 Underlying cost base better controlled than expected. Excl the excess
burdens detailed above, we calculate adj EBITDA margin would have been
23.8% or ‘only’ -20bps yoy vs JPME -60bps. The good news stemmed from
G&A, still growing at a fast pace of +16% yoy, but lower than the expected
20s% and GM expansion (+140bps yoy, channel mix driven) converging
with the S&D costs compression (-140bps excl one offs) instead of
undershooting as it did in FY15. We also note that D&A slowed down
meaningfully, a further boost to EBIT. These augurs well. We slightly
raised, and not cut, our FY16E and 17E on the back of these numbers.
 LFL came in better than expected at +5%, a strong achievement in light
of the significant comp base (+22% LFL in H1 15). Management stated that
there was no marked difference between Q1 and Q2 in the delivery of this
+5%, that all regions saw positive LFL and China was the best.
 Moncler is the last high space growth story in our luxury goods sector
universe. Space growth was c17% in H1 16 incl 6 store openings in H1 and
9 to come in H2. There was some confusion on the call as to whether space
growth might be decelerating more than expected in FY17E with mentions
of ‘8-11 stores’. But this, we understand, refers to the stores already secured
while the target remains c15 stores (same as in FY16E) underpinning our
11% space growth in FY17E. And we believe Moncler has the management
talent in place to manage this fast opening pace.