>>> Diebold misses by $0.21, misses on revs; lowers FY16 EPS, revs guidance

Diebold misses by $0.21, misses on revs; lowers FY16 EPS, revs guidance
  • Reports Q1 (Mar) loss of $0.05 per share, $0.21 worse than the Capital IQ Consensus of $0.16; revenues fell 11.3% year/year to $509.6 mln vs the $536.1 mln Capital IQ Consensus.
  • Co lowers guidance for FY16, sees EPS of $1.45-1.60 (Prior $1.55-1.70) vs. $1.59 Capital IQ Consensus Estimate; sees FY16 revs of $2.38-2.42 bln (-2% to flat vs. Prior guidance for relatively flat) vs. $2.44 bln two analyst estimate.

>>> US Early premarket gappers

Early premarket gappers
Gapping up: STJ +28.3%, AEZS +9.9%, DLB +9.5%, FB +9.4%, EXTR +9.1%,ANIK +7.8%, NTGR +6.8%, TTMI +6.8%, PPC +6.7%, CVEO +6.3%, RNG +6.2%,MDVN +5.7%, INUV +5.3%, YNDX +4.7%, BGC +4.1%, ASGN +3.7%, CSH +3.5%,ACTG +3.4%, NVO +3.2%, SPRT +3.2%, CSGP +3.1%, SBGL +3%, F +3%, ELY+2.9%, HMY +2.8%, VRX +2.8%, HBI +2.6%, INSY +2.6%, CRR +2.3%, NEFF+2%, DB +2%, HTCH +1.9%, MAR +1.8%, GG +1.8%, PYPL +1.6%, SIMO +1.6%,AMID +1.4%, AG +1.4%, GDX +1.4%, CATM +1.3%, ALGT +1.3%, VIV +1.3%,DNKN +1.3%, USCR +1.1%, SNDK +1.1%, NEM +1%, SLV +1%, KIM +1%, CAB+1%, CAKE +0.9%, LQ +0.9%, RGLD +0.9%, ABX +0.8%, GLD +0.8%, SQNS+0.8%, MT +0.7%, RIO +0.7%, HY +0.7%, NEU +0.6%

Gapping down: OCN -19.7%, INFN -12.7%, OSIS -10.9%, MSTR -9.5%, WLL-9.2%, SGI -8.7%, OTEX -8.6%, PRXL -8.6%, CAVM -8.2%, VSLR -7.2%, GNC-6.8%, SJW -6.7%, LOCK -6.1%, EVEP -5.6%, X -5.5%, TS -5.3%, FIX -5%, POT-5%, LLNW -4.9%, LYG -4.4%, RCII -4.2%, ABT -4.2%, FSLR -4.1%, ABT -3.6%,BUD -3.5%, WLL -3.5%, XLNX -3.4%, FSLR -3.3%, ORLY -3.3%, VRTX -3%, AR-3%, BKCC -2.7%, TER -2.3%, VAR -2.2%, SAN -2.1%, CHK -2%, HSBC -2%,TMO -2%, AA -1.7%, ARMH -1.7%, SPWR -1.5%, DOW -1.5%, TYL -1.3%, BCS-1.2%, BKFS -1.2%, ORC -1.2%, CIT -1.2%, RXDX -1.1%, RXDX -1.1%, TROV-1.1%, AZN -1.1%, TILE -0.9%, LOGI -0.8%, CGI -0.7%, NE -0.7%, JKS -0.6%,DXCM -0.6%, KRA -0.6%, TAL -0.6%, FENG -0.5%

>>> ConocoPhillips beats by $0.09

ConocoPhillips beats by $0.09
  • Reports Q1 (Mar) loss of $0.95 per share, $0.09 better than the Capital IQ Consensus of ($1.04)
  • Production for the first quarter of 2016 was 1,578 thousand barrels of oil equivalent per day (MBOED), a decrease of 32 MBOED compared with the same period a year ago.
    • Normal field decline and impacts from dispositions exceeded growth from major projects and development programs, improved well performance, and the impact of lower prices on royalties and production sharing contracts
    • When adjusted for 66 MBOED from dispositions and downtime, production increased 34 MBOED, or 2%
  • During the quarter, APLNG loaded 11 cargoes from Train 1 in Australia. Lower 48 transitioned from 13 operated rigs at year-end 2015 to three operated rigs in April. Drilling continued at CD5 and Drill Site 2S in Alaska with production continuing to ramp up from both projects. In the Gulf of Mexico, the Melmar exploration well was plugged and abandoned as a dry hole. The exploration and appraisal program continues in Senegal
Outlook:
  • The company has reduced its 2016 capital expenditures guidance from $6.4 billion to $5.7 billion, primarily driven by reduced deepwater exploration activity, deferrals and lower costs across the portfolio.
  • The company expects to meet its previously stated full-year 2016 production guidance of ~1,525 MBOED, in line with 2015 production adjusted for 64 MBOED for the full-year impact of 2015 dispositions. Second-quarter 2016 production guidance is 1,500 to 1,540 MBOED, which reflects significant planned turnaround activity during the quarter
  • Integrated oil peers: CVX, XOM, RDS.A, TOT; ETFs: XLE, XOP.

>>> Potash reports EPS in-line, beats on revs; guides Q2 EPS below consensus; gu

Potash reports EPS in-line, beats on revs; guides Q2 EPS below consensus; guides FY16 EPS below consensus
  • Reports Q1 (Mar) earnings of $0.15 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.15; revenues fell 27.4% year/year to $1.21 bln vs the $1.1 bln Capital IQ Consensus.
  • Co issues downside guidance for Q2, sees EPS of $0.15-0.25 vs. $0.29 Capital IQ Consensus Estimate.
  • Co issues downside guidance for FY16, sees EPS of $0.60-0.80 vs. $0.92 Capital IQ Consensus Estimate.
    • "In response to weaker demand, we curtailed production and have lowered our expectations for 2016 potash sales volumes to a range of 8.3-8.8 million tonnes. The combination of lower volumes and weaker prices -- reflecting the decline during the first quarter -- has reduced expectations for our full-year potash gross margin, which is now forecast at $0.5-$0.7 billion. Similarly challenging market conditions have caused us to lower our combined nitrogen and phosphate gross margin guidance to a range of $0.6-$0.8 billion in 2016."
  • Weaker prices -- primarily for potash and nitrogen -- and lower offshore potash sales volumes negatively impacted performance for the quarter, with gross margin of $234 million, cash provided by operating activities of $188 million and earnings before finance costs, income taxes, depreciation and amortization, termination benefit costs and certain impairment charges (adjusted EBITDA) of $385 million, all well below 2015's respective totals.
  • The absence of new contracts in China, limited demand from India and cautious buying patterns in spot markets reduced global potash deliveries in the first quarter. This weaker demand environment, combined with increased competitive pressures, pushed spot prices lower -- most notably in North America -- although they stabilized late in the quarter as signs of strengthening demand began to emerge ahead of the key application season.
  • Lower global energy costs and new nitrogen capacity pressured prices for all nitrogen products, keeping them below those realized in first-quarter 2015, although urea and UAN prices displayed seasonal strength in the US as buyers prepared for the spring planting season.

>>> Time Warner Cable beats by $0.05, reports revs in-line (209.19)

Time Warner Cable beats by $0.05, reports revs in-line
  • Reports Q1 (Mar) earnings of $1.81 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $1.76; revenues rose 7.2% year/year to $6.19 bln vs the $6.14 bln Capital IQ Consensus; the highest first-quarter organic revenue growth in the last 8 years -- driven by accelerated growth in Residential Services and strong growth in Business Services.
  • Adjusted OIBDA was up 8.2% for the first quarter -- the highest first-quarter organic Adjusted OIBDA growth in the last 6 years. Operating Income increased 5.6% to $1.1 billion for the first quarter and reflects higher depreciation expense from "TWC Maxx" and other capital investments.
  • Strong first-quarter residential subscriber performance: Customer relationship net additions of 236,000; Video net additions of 21,000; High-speed data net additions of 314,000; Voice net additions of 178,000.
  • TWC is merging with Charter (CHTR); TWC common stock will be converted into the right to receive ither (i) $100 in cash and shares of New Charter Class A common stock equivalent to 0.5409 shares of Charter Class A common stock or (ii) $115 in cash and shares of New Charter Class A common stock equivalent to 0.4562 shares of Charter common stock.

>>> Air Products beats by $0.01, misses on revs; guides Q3 EPS in-line; raises F

Air Products beats by $0.01, misses on revs; guides Q3 EPS in-line; raises FY16 EPS above consensus
  • Reports Q2 (Mar) earnings of $1.82 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $1.81; revenues fell 5.9% year/year to $2.27 bln vs the $2.37 bln Capital IQ Consensus, on unfavorable currency and lower energy pass-through of three percent each. Volumes were unchanged, as Industrial Gases -- Asia growth continued while most other segment volumes were lower. Pricing overall was flat despite higher pricing in Industrial Gases -- Americas and Industrial Gases -- Europe, Middle East and Africa (EMEA).
  • Co issues in-line guidance for Q3, sees EPS of $1.87-1.92, excluding non-recurring items, vs. $1.90 Capital IQ Consensus Estimate.
  • Co issues upside guidance for FY16, raises EPS to $7.40-7.55 from $7.25-7.50, excluding non-recurring items, vs. $7.41 Capital IQ Consensus Estimate.

>>> Bunge beats by $0.65, misses on revs; updates outlook

Bunge beats by $0.65, misses on revs; updates outlook
Reports Q1 (Mar) earnings of $1.41 per share, $0.65 better than the Capital IQ Consensus of $0.76; revenues fell 17.5% year/year to $8.92 bln vs the $10.12 bln Capital IQ Consensus. Outlook:
  • "In Agribusiness, demand for our core products is strong. The USDA is forecasting global soy meal and oil demand each to grow 7% this year, which should be supportive of soy processing margins. Softseed processing margins should improve later in the year with the arrival of new crop seed supplies. Recent weather related changes to crop production in South America could present increased opportunities for our assets in the Northern Hemisphere. However, we expect headwinds in the second quarter as South American farmers and markets adjust to a scenario of lower production."
  • "In Food & Ingredients, we expect 2016 results to be higher year-over-year, driven by our operational excellence initiatives and recent acquisitions. We are cautiously optimistic that the improved volumes and margins we are currently seeing in our Brazilian operations will continue. We expect results to be weighted to the second half of the year."
    "In Fertilizer, improved farmer economics in Argentina, due to the weaker peso and the removal of export taxes on grains, should result in increased purchases of crop inputs later in the year."
  • "In Sugar & Bioenergy, our sugarcane crop is developing well, and considering our sugar price hedges and the Brazilian ethanol pricing outlook, we continue to expect 2016 to be a year of growth in earnings and cash flow. Similar to past years, results will be seasonally weak until the second half of the year."

>>> Dow Chemical beats by $0.06, reports revs in-line

Dow Chemical beats by $0.06, reports revs in-line
Reports Q1 (Mar) earnings of $0.89 per share, $0.06 better than the Capital IQ Consensus of $0.83; revenues fell 13.5% year/year to $10.7 bln vs the $10.66 bln Capital IQ Consensus. Outlook:
  • Volume rose 4%, excluding the impact of divestitures and acquisitions. Growth in North America (up 6%), Europe, Middle East, Africa and India (up 4%) and Asia Pacific (up 3%) more than offset a decline in Latin America (down 4%). Volume grew in the emerging geographies, as results in Greater China (up 5%) and India (up 13%) reflected solid consumer-driven demand in these regions.
  • Says remains on track with DuPont (DD) and Dow Corning transaction
  • "Looking ahead, we expect continued strength in the consumer driven end-markets where we have demonstrated a narrower and deeper focus, especially in our materials businesses that provide innovative products to the packaging, transportation and infrastructure markets. We see strong demand signals in North America, gradual recovery in Europe and ongoing sustainable urbanization in China, all of which are driving the need for Dow's unique products, underscoring our innovation, market access and integration -- enabling us to grow faster in our selected market sectors. We believe pockets of volatility will persist, including near-term geopolitical and economic uncertainty, most notably in Brazil. In this environment, we continue to control what we can control: implementing disciplined self-help and productivity actions; advancing our innovation agenda; and progressing our strategic growth investments. Our teams remain squarely focused on delivering on our three priorities: meeting our financial commitments, and quickly closing the Dow Corning and DowDuPont transactions. We remain committed to flawless operational, commercial and project execution to deliver value for our customers and enhanced returns for our shareholders."

>>> St. Jude Medical: Abbott (ABT) to acquire St. Jude Medical for $46.75 in cas

St. Jude Medical: Abbott (ABT) to acquire St. Jude Medical for $46.75 in cash and 0.8708 shares of Abbott common stock, representing total consideration of ~$85/share
  • At an Abbott stock price of $43.93, this represents a total transaction equity value of $25 bln. The acquisition of St. Jude Medical is expected to be accretive to Abbott's adjusted earnings per share in the first full year after closing and increasing thereafter, with ~21 cents of accretion in 2017 and 29 cents in 2018. The combination is anticipated to result in annual pre-tax synergies of $500 mln by 2020, including both sales and operational benefits. One-time deal-related costs and integration costs will be provided at a future date. St. Jude Medical's net debt of ~$5.7 bln will be assumed or refinanced by Abbott. Abbott intends to fund the cash portion of this transaction with medium- and long-term debt.
  • The transaction, which has been approved by the boards of directors of St. Jude Medical and Abbott, is subject to the approval of St. Jude Medical shareholders and the satisfaction of customary closing conditions, including specified regulatory approvals. The transaction is expected to close in the fourth quarter of 2016.
  • Separate Equity Issuance to Balance Capital Structure: Separately, Abbott expects to issue $3 bln of common stock in the secondary market to rebalance its capital structure, with timing to be determined. Financing for the St. Jude Medical transaction and the previously announced Alere Inc. acquisition contemplates financing capacity to close both transactions. These transactions are expected to be immediately accretive to adjusted earnings per share.
  • Abbott will conduct a special conference call today at 7 a.m. Central time (8 a.m. Eastern time) to provide an overview of the transaction.
  • Due to St. Jude Medical's entry into the Merger Agreement, its Annual Shareholder Meeting, which is currently scheduled for May 4, 2016, has been cancelled and will be rescheduled at a later date.