>>> Exxon Mobil beats by $0.03, misses on revs

Exxon Mobil beats by $0.03, misses on revs
  • Reports Q3 (Sep) earnings of $0.63 per share, $0.03 better than the Capital IQ Consensus of $0.60; revenues fell 12.9% year/year to $58.68 bln vs the $60.6 bln Capital IQ Consensus
  • Earnings results reflect lower refining margins and commodity prices
  • Upstream earnings were $620 million in the third quarter of 2016, down $738 million from the third quarter of 2015
    • Lower liquids and gas realizations decreased earnings by $880 million, while volume and mix effects increased earnings by $80 million
    • All other items, including lower expenses partly offset by unfavorable foreign exchange effects, increased earnings by $60 million
    • On an oil-equivalent basis, production was down compared with the third quarter of 2015
    • Volumes for the quarter declined 3% to 3.8 million oil-equivalent barrels per day compared with a year ago, due to unplanned downtime, primarily in Nigeria, and field decline partially offset by increased production from recent project start-ups.
  • Downstream earnings were $1.2 billion, down $804 million from the third quarter of 2015
    • Weaker margins, mainly in refining, decreased earnings by $1.6 billion while favorable volume and mix effects increased earnings by $170 million
    • All other items increased earnings by $580 million, including lower maintenance expenses and gains from divestments in Canada
    • Petroleum product sales of 5.6 million barrels per day were 203,000 barrels per day lower than the prior year mainly due to divestment of the Torrance, California, and Chalmette, Louisiana, refineries

>>> US Early premarket gappers

Early premarket gappers
Gapping up: DAIO +19.1%, VCRA +10.9%, SMCI +10.9%, VCRA +10.9%, AMCC +10.3%, OSIS +9.4%, GIMO +9%, SNY +8%, BHI +7.7%, CRUS +7.7%, LOGM+6.7%, GSB +6.4%, NSIT +5.6%, HBI +5.3%, BBU +5.1%, ACTG +4.7%, NGD +4.5%, CYTK +4.2%, CBI +3.9%, AERI +3.7%, SHOR +3.7%, PXLW +3.1%, BIDU+2.8%, CY +2.8%, HUN +2.8%, CLD +2.6%, SYK +2.5%, ENVA +2.2%, WFT +2.1%, EGO +2.1%, DECK +2%, GOOG +2%, EMN +2%, HSY +2%, SKYW +1.9%, IART+1.8%, FTNT +1.8%, LPNT +1.8%, POWI +1.6%, UBS +1.6%, AZPN +1.5%, EXPE +1.5%, AZPN +1.5%, SGEN +1.1%, HIG +1%, SLB +0.8%

Gapping down: SNMX -37.7%, STON -31.5%, YRCW -18%, CEMP -17.3%, NVO -16.2%, DRYS -14.1%, MCK -13.3%, SYNA -11.4%, CENX -11%, NSR -11%, MLNX-9.5%, TDOC -8.1%, HTBK -7.1%, KONA -7%, ARAY -6.5%, CAH -6.4%, EHTH -5.8%, ABC -5.7%, ATEN -5.5%, BOFI -5.1%, DRAD -5.1%, ASGN -4.7%, AMZN-4.4%, BGS -3.9%, LITE -3.6%, BUD -3.5%, MOH -2.9%, RBS -2.7%, ABEV -2.6%, TLGT -2.3%, SPCB -2.3%, AUY -2.2%, OII -2.2%, AMGN -1.7%, AMGN -1.7%,XRX -1.5%, SIMO -1.2%, APO -0.8%, INT -0.7%, FLEX -0.6%, TOT -0.6%

>>> Novo Nordisk on the tape

*NOVO CFO:PRIME BASAL INSULIN IMPACT IN U.S. HAS ’BEEN REALISED’
*NOVO EXECUTIVES SPEAK TO ANALYSTS ON A CONFERENCE CALL
*NOVO CFO SAYS NEGATIVE PRICING ENVIRONMENT IS 2-3% BEYOND 2017
*NOVO SEES U.S. PRESSURE ON MONDERN INSULIN
*NOVO ALSO SEES U.S. PRESSURE ON HUMAN GROWTH HORMONES

(SkyNews) Mystery Chinese predator swoops for upmarket housebuilder Cala

Mystery Chinese predator swoops for upmarket housebuilder Cala
A mystery Chinese bidder has approached Cala Group’s shareholders about a potential £600m takeover, Sky News learns
One of Britain's biggest housebuilders has been approached about a takeover by a mystery Chinese predator ahead of a Government push to deliver 1 million new homes by 2020.

Sky News has learnt that privately-owned Cala Group, which describes itself as the UK's most upmarket major homebuilder, is in early-stage talks with the potential buyer.

Cala's shareholders - Legal & General and Patron Capital, a specialist real estate investor - have engaged Lazard, the investment bank, to advise them on the talks, although people close to the situation cautioned that they may not lead to a deal.

The Chinese buyer, which is understood not to be Vanke Group, the country's biggest residential developer, is said to be being advised by KPMG.

Cala, which this month reported strong financial results for the year ended 30 June, could be worth more than £600m in any transaction, according to analysts.

If a deal does take place, it would represent a vote of confidence in the UK housebuilding sector, as well as underlining the opportunity for overseas buyers to acquire British companies more cheaply since the plunge in the value of sterling after June's EU referendum.

L&G and Patron took control of Cala in 2013 in a deal valuing the company at £210m, and it has made a series of acquisitions since then.

They have considered a stock market flotation of the company, and that remains an option depending upon the fate of the takeover discussions, according to insiders.

The approach to Cala has emerged just weeks after Sajid Javid, the Communities and Local Government Secretary, pledged in his speech to the Conservative Party conference that ministers would deliver 1 million new homes by the end of the decade.

He said a £3bn Home Builders Fund would help to deliver 225,000 new houses, with a white paper on housing to be published by the end of the year setting out further steps to address the UK's poor construction record.

Cala's operations are concentrated outside London and the south-east, and focused on areas in the Home Counties, Cotswolds, and around Aberdeen, Edinburgh and Glasgow.

Alan Brown, Cala's chief executive, said the results reflected strong momentum, and he brushed off the impact of the UK's vote to leave the European Union.

"In the 13 weeks since the EU referendum result, and although still early days, the group saw positive trading with total enquiry levels and reservation rates up 9% and 46% respectively while website users have also risen by 32% on the equivalent period last year," he said.

"Sales prices have also remained stable while cancellation rates have actually reduced slightly."

Cala declined to comment on the takeover talks, but said through a spokesman: "Thanks to the quality of our brand and strong financial and trading performance, from time to time we may find ourselves the subject of speculation but from our perspective it is very much business as usual."

L&G and Patron refused to comment.

>>> Hershey Foods beats by $0.11, reports revs in-line; guides FY16 EPS above co

--> HSY indicated +1.97% very thin volume
Hershey Foods beats by $0.11, reports revs in-line; guides FY16 EPS above consensus, revs in-line
  • Reports Q3 (Sep) earnings of $1.29 per share, $0.11 better than the Capital IQ Consensus of $1.18; revenues rose 2.2% year/year to $2 bln vs the $1.99 bln Capital IQ Consensus. Unfavorable foreign currency exchange rates a 0.2 point headwind.
  • Co issues guidance for FY16, sees EPS of $4.28-4.32 including acq dilution from $4.24-4.28 vs. $4.26 Capital IQ Consensus Estimate; sees FY16 revs of +1% to ~$7.459 bln vs. $7.45 bln Capital IQ Consensus Estimate.
  • "Throughout 2016, our top priority has been to restore consistency across the business. Against a backdrop of continued snacks competition, we experienced improvements in key aspects of our business. Our brands responded positively to the marketplace investments we discussed last quarter, which is why we continue to believe that candy, mint and gum is an attractive category capable of solid growth over the long term when supported with the right mix of customer and consumer marketing.

>>> Phillips 66 beats by $0.17; lowers FY16 capex guidance & expects FY17 capex

--> no pre open indications

Phillips 66 beats by $0.17; lowers FY16 capex guidance & expects FY17 capex guidance of $3 bln
  • Reports Q3 (Sep) earnings of $1.05 per share, excluding non-recurring items, $0.17 better than the Capital IQ Consensus of $0.88.
    • Midstream third-quarter earnings were $75 mln, compared with $39 mln in the second quarter of 2016.
    • Chemical third-quarter earnings were $101 mln, compared with $190 mln in the second quarter of 2016.
    • Refining third-quarter earnings were $177 mln, compared with $149 mln in the second quarter of 2016.
    • Marketing earnings and Other were $228 mln, an increase of $29 mln from the prior quarter.
  • "Our earnings during the third quarter reflect the benefit of our diversified portfolio. We generated $1.2 bln in cash from operations and a Phillips 66 Partners equity offering," said Greg Garland, chairman and CEO of Phillips 66. "This year we are delivering record operational excellence results, managing costs, executing our major projects and maintaining disciplined capital allocation. We have lowered our forecasted 2016 capital expenditures to approximately $3 bln."
  • Phillips 66 continues to expand its Beaumont Terminal, with 2 mln barrels of additional crude storage to be commissioned in the fourth quarter and 1.2 mln barrels of additional products storage expected to be available by mid-2017.
  • Phillips 66 capital expenditures for 2016 are expected to be approximately $3 bln, reduced from the $3.9 bln budgeted for 2016. This reduction primarily reflects Midstream project cancellations and deferrals, as well as the impact of project financing. Capital expenditures for 2017 are expected to be less than $3 bln. Additional information on the 2017 capital budget will be provided in December.