>>> BMW CEO poised to shake up top team - report - Reuters News

BMW CEO poised to shake up top team - report - Reuters News

26-MAY-2016 16:03:49
BERLIN, May 26 (Reuters) - BMW BMWG.DE plans to appoint new finance and purchasing chiefs as Chief Executive Harald Krueger builds a younger management team to lead the German carmaker into the future, a monthly magazine reported on Thursday.

Krueger, a 50-year-old who took over a year ago from Norbert Reithofer, wants to replace finance chief Friedrich Eichiner with Nicolas Peter, unidentified company sources told Germany's Manager Magazin.

BMW declined to comment.

Krueger also wants to install a new purchasing chief and other executive changes are possible, with the supervisory board due to decide by the end of the summer, the magazine said.

Earlier this month, BMW reported lower quarterly operating profit, hit by adverse currency moves and pressure on the prices of limousines as drivers in the United States in particular switch to sport-utility vehicles (SUVs).

Peter, 54, is currently head of sales in Europe. Eichiner will turn 62 shortly before the 2017 annual shareholders meeting. He had already extended his contract beyond the firm's usual age limit of 60 for management board executives.

Purchasing head Klaus Draeger, 59, is also leaving due to his age, but a decision has not yet been taken on his successor, although a favourite is Markus Duesmann, the magazine said.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: TDW -21.3%, PSTG -17.7%, ANF -11%, NTAP -7.4%, CHS -5.2%, PLKI -4.2%, RUBI -3.9%, IGLD -3.4%, UHAL -3.4%, BLOX -2.9%, DEST -2.3%, MOV -1.9%, DDC -0.7%

M&A news: ASX -2.5% (Advanced Semi and Siliconware Precision Industries (SPIL) agree to promote plans for the establishment of a holding company)


Other news: PRGN -44.7% (receives notice of non-compliance due to equity being below $2.5 mln, co has 45 days to submit plan to regain compliance), OVAS -24% (prices 7.150 mln share public offering at $7.00/share), ALDX -10% (commences common stock offering), WBMD -4.4% (to offer $300 mln convertible notes due 2023 in a private placement), RUBI -3.9% (CFO Todd Tappin to pursue other opportunities, effective immediately)

Analyst comments: N/A

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: LGF +13.9%, PVH +7.4%, DLTR +7.3%, BURL +6.1%, IGT +5.4%, CPRT +5.3%, DG +4.6%, WSM +3.6%, TLYS +3.5%, MIXT +3%, HEI +1.7%, TSL +1.7%, SIG +1.5%, COST +1.4%, SAFM +1%, GES +0.9%, HPQ +0.8%, MOD +0.8%

M&A news: SPIL +14.4% (Advanced Semi (ASX) and Siliconware Precision Industries (SPIL) agree to promote plans for the establishment of a holding company)


Select metals/mining stocks trading higher: MT +9.3%, X +6%, CLF +5.2%, FCX +3.2%, AUY +2.3%, VALE +2.2%, SBGL +2%, AU +2%, BHP +1.8%, AA +1.5%, GOLD +1%, ABX +0.9%,

Select oil/gas related names showing strength: CHK +6%, PEIX +4.8%, BCEI +4.6%, MRO +2.3%, PBR +1.8%

Other news: FLXN +20.1% (receives 'positive' guidance from FDA on new drug application submission for Zilretta), EBIO +11.9% (Boxer Capital discloses 9.96% passive stake), NVET +9.5% (reports positive results from NV-02 Pilot Field Study; NV-02 Pivotal Study plans underway), CEMP +4.3% (announces successful results in the Phase 2 CABP Trial conducted by Japanese partner, FUJIFILM Holdings (FUJIY)), NFLX +3.7% (favorable commentary on Wednesday's Mad Money), TWX +2% (FT report that an Apple (AAPL) executive had proposed the idea last year of buying Time Warner), BABA +2% (rebounding with YHOO), YHOO +1.7% (rebounding with BABA)

Analyst comments: INFY +2.2% (upgraded to Buy from Neutral at Goldman), JACK +1.4% (upgraded to Outperform from Neutral at Robert W. Baird), ADM +1.2% (upgraded to Buy from Neutral at Citigroup), SHPG +1.1% (initiated with a Buy at Stifel), TEAM +0.8% (initiated with an Outperform at Oppenheimer)

>>> US Early premarket gappers

Early premarket gappers

Gapping up: LGF +13.9%, NEPT +13%, EBIO +11.9%, MT +8.4%, PVH +7.1%, PEIX +6.6%, CPRT +5.3%, CLF +5.2%, BCEI +4.9%, BURL +4.7%, CEMP +4.3%, WSM +3.6%, TLYS +3.5%, DG +3.4%, DG +3.4%, X +3.1%, MIXT +3%, BHP +2.4%, CHK +2.3%, FCX +2.2%, SBGL +2%, YHOO +2%, VALE +2%, AU +2%, TWX +1.9%, BABA +1.7%, HEI +1.7%, AUY +1.6%, COST +1.6%, ABX +1.4%, GOLD +1.3%, AA +1.3%, GDX +1.2%, TSL +1.1%, SHPG +1%, MOD +0.8%, APIC +0.7%

Gapping down: PRGN -46.5%, OVAS -25.2%, TDW -23.9%, PSTG -15.6%, ALDX -10%, NTAP -7.4%, PLKI -5.3%, SIG -4.9%, WBMD -4.8%, RUBI -3.9%, RUBI -3.9%, LYG -3.4%, UHAL -3.4%, BLOX -2.9%, SAN -1.6%, CS -1.3%, GES -0.9%, HSBC -0.7%, DDC -0.7%

(Bernstein) maintains positive stance on UPS, FDX

Bernstein maintains positive stance on UPS, FDX 
- Firm notes Amazon's explosive growth and increasing independence from UPS and FDX have investors worried if the market for the national carriers will shrink.
- In a range of scenarios where e-commerce sales grow at 8-12% per year for the next ten years, and Amazon grows at 17-22%, the demand for e-commerce deliveries by the national carriers should still yield a reasonable range of 7-10% growth. 
- Firm thinks it highly likely that the domestic parcel market will remain a GDP + grower for UPS and FDX, front end loaded, and believe that the outsized demand for online retail will present pricing opportunities in the years ahead.

FT : Apple executive proposed bid for Time Warner

Apple executive proposed bid for Time Warner

A top Apple executive raised the prospect of the iPhone maker buying Time Warner at a meeting with the owner of HBO, CNN and Warner Brothers, according to three people who were briefed on it.

Eddy Cue, who oversees critical Apple businesses such as the iTunes store, Apple Music and iCloud, broached the idea of a bid at a meeting at the end of last year with Olaf Olafsson, Time Warner’s head of corporate strategy, the people said.

The meeting at the media group’s Manhattan headquarters had been arranged to discuss other commercial relationships between the two companies, such as the potential inclusion of Time Warner’s cable channels in a future Apple video streaming service.
Discussions about Apple buying Time Warner did not get beyond a preliminary stage and never included Tim Cook, Apple’s chief executive, nor his Time Warner counterpart, Jeff Bewkes, people familiar with the matter said.

Apple and Time Warner declined to comment.

The fact that Apple considered bidding for one of the world’s most prominent media companies — Time Warner has a market capitalisation of almost $60bn — underlines the tech group’s growing desire to offer its own content.
It also points to Apple’s willingness to consider new areas of growth as sales of its key device, the iPhone, enters a phase of slower growth and its cash pile mounts to $216bn.

The company, which earlier this month invested $1bn in Didi Chuxing, Uber’s main competitor in the China, has already begun to produce content. It recently commissioned a video series about the app economy and a scripted series starring and produced by Dr Dre, the hip hop star, for the Apple Music streaming service.

However, these are small steps compared with peers such as Amazon and Netflix, which are spending billions of dollars a year on original series and movies.

Apple intends to ramp up its spending on original content to “several hundred million dollars a year”, according to people familiar with the matter. It has also not ruled out acquiring a media company, a person close to Apple told the Financial Times.

Time Warner would be an obvious fit. The company and Walt Disney are the only leading media players that do not have dual share structures and controlling family shareholders. Comcast, 21st Century Fox, CBS and Viacom are all controlled by founders and their families, potentially making it harder to launch a takeover.

Time Warner also has highly sought-after assets: HBO, which produces Game of Thrones, Silicon Valley and Veep; Warner Bros, Hollywood’s largest producer of films and television shows; and Turner, which owns several cable channels and holds the rights to NBA basketball.
The company received an unsolicited offer from Rupert Murdoch’s 21st Century Fox just two years ago. On the day of the bid, the cash and stock offer valued it at about $86 a share, but Time Warner rejected it. Time Warner shares closed at $73.36 on Wednesday.

It is not clear Apple will revive its interest in Time Warner but bankers say the tech company has recently been considering a range of potential media targets. “They’ve been on the lookout for content assets for several months,” said one that has worked with Apple.

Several bankers said Apple was more likely to go after a streaming company such as Netflix than a pure content player, as it would make it easier for Apple’s services to continue to offer a wide range of content makers.

>>> Signet Jewelers beats by $0.01, misses on revs; guides Q2 EPS in-line; reaff

Signet Jewelers beats by $0.01, misses on revs; guides Q2 EPS in-line; reaffirms FY17 EPS guidance, lowers comps

  • Reports Q1 (Apr) earnings of $1.95 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $1.94; revenues rose 2.9% year/year to $1.58 bln vs the $1.61 bln Capital IQ Consensus.
  • Same store sales increased 2.4% vs. +3-4% guidance, compared to an increase of 3.6% in the first quarter Fiscal 2016, driven primarily by strong sales in select branded bridal and diamond fashion jewelry. Ecommerce sales in the first quarter Fiscal 2017 were $80.1 million, or 5.1% of sales, up $3.2 million, or 4.2%, compared to $76.9 million in the first quarter Fiscal 2016. Overall, average transaction value ("ATV") was higher and number of transactions were lower due to merchandise mix.
  • Co issues in-line guidance for Q2, sees EPS of $1.49-1.54, excluding non-recurring items, vs. $1.53 Capital IQ Consensus; comps +1-2%.
  • Co reaffirms guidance for FY17, sees EPS of $8.25-8.55, excluding non-recurring items, vs. $8.41 Capital IQ Consensus; lowers comps to +2-3.5% from +3-4.5%.
  • Zale acquisition integration progressing well; synergies remain on-target.
  • Repurchased over 1.1 million shares in first quarter for $125.0 million.
  • Signet also announced that its Board of Directors has authorized management to conduct a strategic evaluation of the Company's credit portfolio. Goldman Sachs has been engaged as the Company's financial advisor in this process. Signet will consider a full range of options with respect to its credit operations and update investors as appropriate. Q1 credit metrics improved sequentially and in-line with expectations.

>>> Dollar General beats by $0.08, reports revs in-line

Dollar General beats by $0.08, reports revs in-line

  • Reports Q1 (Apr) earnings of $1.03 per share, $0.08 better than the Capital IQ Consensus of $0.95; revenues rose 7.0% year/year to $5.27 bln vs the $5.28 bln Capital IQ Consensus.
  • Same-store sales in the 2016 first quarter increased 2.2% over the 2015 first quarter resulting from increases in both customer traffic and average transaction amount.
    • Same-store sales increases were driven by positive results in both the consumables category and certain of the non-consumables categories, with sales of consumable merchandise outpacing sales of non-consumable merchandise.
    • Within the non-consumables categories, growth in same-store sales was due to seasonal and home products.
    • The net sales increase also was positively affected by sales from new stores, partially offset by sales from closed stores.