>>> Morgan Stanley beats by $0.08, beats on revs

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Morgan Stanley beats by $0.08, beats on revs
  • Reports Q1 (Mar) earnings of $0.55 per share, $0.08 better than the Capital IQ Consensus of $0.47; revenues fell 21.3% year/year to $7.79 bln vs the $7.63 bln Capital IQ Consensus.
  • Institutional Securities net revenues were $3.7 billion reflecting challenging market conditions in Fixed Income & Commodities sales and trading and underwriting, with strength in Equity sales and trading and M&A advisory.
  • Wealth Management net revenues were $3.7 billion and pre-tax margin was 21%.3 Results reflect strong growth in net interest income offset by weakness in transactional revenues. Fee based asset flows for the quarter were $5.9 billion.
  • Investment Management reported net revenues of $477 million reflecting losses in private equity and real estate and stable asset management fees. Assets under management or supervision were $405 billion at the end of the quarter.
  • Compensation expense of $3.7 billion decreased from $4.5 billion a year ago driven by lower revenues. Non-compensation expenses of $2.4 billion compared with $2.5 billion a year ago.
  • The annualized return on average common equity was 6.2% in the current quarter.
  • At March 31, 2016, book value and tangible book value per common share were $35.34 and $30.44,17 respectively, based on approximately 1.9 billion shares outstanding.
  • "The first quarter was characterized by challenging market conditions and muted client activity. Against that backdrop, our businesses delivered stable results. While we see some signs of market recovery, global uncertainties continue to weigh on investor activity."

>>> Hasbro beats by $0.14, beats on revs

Hasbro beats by $0.14, beats on revs
  • Reports Q1 (Mar) earnings of $0.38 per share, $0.14 better than the Capital IQ Consensus of $0.24; revenues rose 16.5% year/year to $831.2 mln vs the $779.23 mln Capital IQ Consensus.
  • First quarter 2016 revenues grew 28% in the U.S. and Canada segment and 13% in the International segment; Absent the negative impact of foreign exchange, International segment revenues increased 22%

>>> PepsiCo beats by $0.08, misses on revs; reaffirms FY16 guidance (103.77)

PepsiCo beats by $0.08, misses on revs; reaffirms FY16 guidance
  • Reports Q1 (Mar) earnings of $0.89 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.81; revenues fell 2.9% year/year to $11.86 bln vs the $12 bln Capital IQ Consensus. Organic revenue grew 3.5%. Foreign exchange translation had a 4.5-percentage-point unfavorable impact and the Venezuela deconsolidation had a 2-percentage-point unfavorable impact on reported net revenue.
    • Core gross margin expanded 130 basis points and core operating margin increased 165 basis points. Margin expansion reflects the implementation of effective revenue management strategies and previously announced productivity initiatives, partially offset by a 65 basis point increase in advertising and marketing expense as a percentage of sales. Core constant currency operating profit increased 12%.
  • Co reaffirms guidance for FY16, sees EPS of $4.66 vs. $4.71 Capital IQ Consensus; ~4% organic revenue growth, excluding the impact of the 53rd week; Based on current foreign exchange market consensus rates, foreign exchange translation to negatively impact reported net revenue growth by 4 percentage points; The 53rd week to contribute ~1 percentage point to reported net revenue growth; Low-single-digit raw material deflation excluding the impact of transaction-related foreign exchange. Including the impact of transaction-related foreign exchange, raw materials are expected to have low-single-digit inflation; The benefit of a 53rd week will be reinvested in certain productivity and growth initiatives; Productivity savings of ~$1 billion.

>>> Apple runs secret car lab in Berlin with 15-20 employees, report says


Apple runs secret car lab in Berlin with 15-20 employees, report says

Adding to rampant rumor and speculation surrounding Apple's "Project Titan" automotive initiative, a new report claims the company is operating a secret car lab out of Germany's capital city tasked with imagining, and realizing, vehicles of the future.

Citing sources familiar with the matter, Frankfurter Allgemeine Zeitung, better known as F.A.Z., reports Apple's shadowy Berlin facility is staffed by about 15 to 20 "top-class" employees from the German automotive industry.

While the report failed to mention names, the small team is comprised of young professionals with diverse backgrounds in engineering, software, hardware and sales. Held back by managers at traditional car companies, these "progressive thinkers" reportedly operate the lab as an incubator for ideas on future vehicles, studying potential manufacturing partnerships, governmental issues and sales concerns relevant to Germany, among other topics.

The publication echoes previous rumors claiming Apple's first car will be electric, but adds initial versions will lack self-driving capabilities, as such computer-assisted technology is still in development. Since Apple does not have a dealership network in place, the company is said to be looking into a vehicle-sharing model similar to BMW's DriveNow electric car service, which was recently suspended in San Francisco due to parking permit regulations.

Finally, the report claims Apple will contract with Magna Steyr's Austrian arm for final manufacturing. Identical claims were floated when "Apple Car" rumors first gained traction in early 2015.

When reached for comment, an Apple representative offered the usual boilerplate response, saying "Apple does not comment on rumor or speculation."

In an exclusive report detailing Apple's automotive project last year, AppleInsider revealed "Titan" was operating out of a top secret facility close to the company's campus in Cupertino, Calif. Subsequent reports estimate Apple's stateside team now consists of well over 1,000 employees, including a number of high-profile industry hires. However, AppleInsider sources in February said executives were disappointed with the group's slow progress, prompting a temporary hiring freeze.