FT : EasyJet says demand for travel is lower after Paris attacks

EasyJet says demand for travel is lower after Paris attacks

EasyJet has warned that revenues could continue to be impacted by weak travel demand following the terrorist attacks in Paris and the bombing of a Russian passenger jet in Egypt.
The British low-cost airline on Tuesday said the Paris attacks in November resulted in a drop-off in demand in the three months to December 31, offsetting a strong performance in October.

While forward bookings for the second quarter are showing a “marked improvement” compared with November and December, easyJet said it expected revenue per seat to decline by mid-single digits because of the continuing impact of Egypt and Paris.
The warning sent shares in Europe’s second-largest low-cost airline down as much as 4.3 per cent, with trading down 2.70 per cent at 1,587p by mid-morning.
EasyJet reported a 3.7 per cent decline in revenue per seat, on a constant currency basis, in the first quarter. The airline said 2 per cent of that was down to the attacks in Paris, while 1.5 per cent resulted from the cancellation of flights to Sharm el-Sheikh over concerns that a bomb caused the crash of Russia’s Metrojet.
“The company has given a disappointing revenue outlook, with Paris/Egypt booking effect expected to continue through Q2, to the extent that unit revenues could actually worsen sequentially this quarter,” said Oliver Sleath, analyst at Barclays.
However, easyJet said a lower fuel bill and a tighter focus on costs will enable it to meet market forecasts for full-year pre-tax profit of £738m, up from its record profit of £686m achieved in 2015.
Carolyn McCall, chief executive at easyJet, said the airline will consolidate its low-fare strategy with a “relentless focus on cost reduction which is already delivering”. She added: “This will ensure that easyJet continues to win and continues to increase revenue, profit and dividends.”

Cost per seat excluding fuel, at constant currency, is expected to be between flat and a 1 per cent increase for the full year, compared with its previous estimate of a 2 per cent rise. It expects to save between £75m and £85m in fuel costs in the first half of the year.
Overall the low-cost airline saw a 8.1 per cent growth in the number of passengers carried to 16.1m in the first quarter, with load factor increasing by 0.6 percentage points to 90.3 per cent.
It comes after most European airlines reported strong summer profits, following buoyant demand and low fuel prices. Even legacy carriers such as Lufthansa and Air France-KLM that have been hit by strikes have posted better than expected results thanks to strong summer bookings.

>>> Procter & Gamble beats by $0.06, reports revs in-line; guides FY16 EPS below



From: LAURENT CHEKROUN (MAKOR SECURITIES LO) At: Jan 26 2016 13:11:54
Subject: >>> Lockheed Martin beats by $0.09, beats on revs; guides FY16; will to separate
--> PG +0.2%

Procter & Gamble beats by $0.06, reports revs in-line; guides FY16 EPS below consensus
  • Reports Q2 (Dec) earnings of $1.04 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $0.98; revenues fell 8.5% year/year to $16.91 bln vs the $16.94 bln Capital IQ Consensus, including a negative eight percentage point impact from FX and three percentage point impact from the Venezuela deconsolidation and minor brand divestitures.
    • Organic sales increased two percent as a three percent pricing benefit more than offset a two percent reduction in organic shipment volume. Organic sales were in-line or higher in all five reporting segments. All-in and organic volume declined three percent and two percent, respectively. Pricing increased net sales in all five business segments and increased total net sales by three percent.
  • Co issues downside guidance for FY16, sees EPS of down 3-8% to ~$3.46-3.65, excluding non-recurring items, vs. $3.75 Capital IQ Consensus. P&G now expects foreign exchange will have a 10%, or a negative $0.37 per share, impact on Core EPS growth for the year. This is seven percentage points, or $0.26 per share, greater than the impact the Company expected at the beginning of the fiscal year. P&G said it is maintaining its guidance for constant currency Core EPS growth of mid-to-high single digits, with its current outlook at the low end of this range.
  • P&G said it is maintaining its outlook for organic sales growth of in-line to up low-single digits versus fiscal 2015. The Company expects all-in sales to be down high-single digits in fiscal 2016, now including a negative seven percentage point foreign exchange impact and a two to three percentage point drag from the combined impacts of the Venezuela deconsolidation and minor brand divestitures. P&G increased its outlook for Adjusted Free Cash Flow Productivity from 90% to 100% of adjusted net earnings for the fiscal year. The Company continues to expect to retire shares at a value of ~$8 to $9 billion dollars through a combination of direct share repurchases and shares that will be exchanged in the Duracell transaction.

>>> Lockheed Martin beats by $0.09, beats on revs; guides FY16; will to separate

--> PG +0.2%

Procter & Gamble beats by $0.06, reports revs in-line; guides FY16 EPS below consensus
  • Reports Q2 (Dec) earnings of $1.04 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $0.98; revenues fell 8.5% year/year to $16.91 bln vs the $16.94 bln Capital IQ Consensus, including a negative eight percentage point impact from FX and three percentage point impact from the Venezuela deconsolidation and minor brand divestitures.
    • Organic sales increased two percent as a three percent pricing benefit more than offset a two percent reduction in organic shipment volume. Organic sales were in-line or higher in all five reporting segments. All-in and organic volume declined three percent and two percent, respectively. Pricing increased net sales in all five business segments and increased total net sales by three percent.
  • Co issues downside guidance for FY16, sees EPS of down 3-8% to ~$3.46-3.65, excluding non-recurring items, vs. $3.75 Capital IQ Consensus. P&G now expects foreign exchange will have a 10%, or a negative $0.37 per share, impact on Core EPS growth for the year. This is seven percentage points, or $0.26 per share, greater than the impact the Company expected at the beginning of the fiscal year. P&G said it is maintaining its guidance for constant currency Core EPS growth of mid-to-high single digits, with its current outlook at the low end of this range.
  • P&G said it is maintaining its outlook for organic sales growth of in-line to up low-single digits versus fiscal 2015. The Company expects all-in sales to be down high-single digits in fiscal 2016, now including a negative seven percentage point foreign exchange impact and a two to three percentage point drag from the combined impacts of the Venezuela deconsolidation and minor brand divestitures. P&G increased its outlook for Adjusted Free Cash Flow Productivity from 90% to 100% of adjusted net earnings for the fiscal year. The Company continues to expect to retire shares at a value of ~$8 to $9 billion dollars through a combination of direct share repurchases and shares that will be exchanged in the Duracell transaction.

>>> Lockheed Martin beats by $0.09, beats on revs; guides FY16; will to separate

Lockheed Martin beats by $0.09, beats on revs; guides FY16; will to separate/combine Information Systems & Global Solutions segment with LDOS
  • Reports Q4 (Dec) earnings of $3.01 per share, $0.09 better than the Capital IQ Consensus of $2.92; revenues rose 3.1% year/year to $12.92 bln vs the $12.39 bln Capital IQ Consensus.
  • Co issues downside guidance for FY16, sees EPS of $11.45-11.75 vs. $12.25 Capital IQ Consensus Estimate; sees FY16 revs of $49.5-51.0 vs. $49.66 bln Capital IQ Consensus Estimate.
  • Co separately announced an agreement to separate and combine its realigned Information Systems & Global Solutions (IS&GS) business segment with Leidos Holdings (LDOS) in a tax-efficient Reverse Morris Trust transaction, unlocking $5 billion in estimated enterprise value for Lockheed Martin stockholders.
    • Subject to regulatory approvals, the $5 billion transaction includes a $1.8 billion one-time special cash payment to Lockheed Martin, which the Corporation intends to use to repay debt, pay dividends, and/or repurchase its stock.
    • LMT stockholders will receive approximately 50.5% (approximately 77 million shares) of the outstanding equity of Leidos on a fully diluted basis with an estimated value of $3.2 billion. Leidos' existing shareholders will continue to hold the remaining approximately 49.5% of the outstanding shares of Leidos.

>>> Corning beats by $0.03, beats on revs; updates Q1, FY16 guidance; sees mid-t

Corning beats by $0.03, beats on revs; updates Q1, FY16 guidance; sees mid-to-high single-digit % QoQ LCD glass volume decline in Q1 
  • Reports Q4 (Dec) earnings of $0.34 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.31; revenues fell 4.0% year/year to $2.4 bln vs the $2.33 bln Capital IQ Consensus.
  • "We expect the first quarter to be the weakest of 2016, and we anticipate growth will recover in subsequent quarters. We are encouraged with the moderation of LCD glass price declines, and we expect this trend will continue into 2016. We are sustaining market leadership in all of our businesses."
  • Corning provided the following expectations for its business segments in Q1:
    • Display Technologies: In the first quarter, Corning anticipates that panel maker utilization will continue to decline, which will reduce inventory levels in the supply chain. As a result, the overall glass market and Corning's LCD glass volume are expected to decline by a mid-to-high single- digit percentage sequentially. Corning's LCD glass price decline is expected to be moderate, achieving what will be one of the lowest first-quarter declines in five years.
  • For the full year, Corning expects moderate sequential price declines to continue, and its glass volume to grow by a mid-single-digit percentage year over year, in line with total glass demand growth. Corning expects global television unit sales will grow by a low single-digit percentage, and the average screen size will increase by at least 1.5 inches. The company expects panel maker utilization to increase as the year progresses, and retail LCD glass area demand to be up by a high single-digit percentage in 2016.
  • During January, Corning took advantage of the stronger yen to extend its hedges. Corning is now hedged for ~70% of its projected yen exposure for the period 2016 through 2022 at a blended rate significantly below the recent spot prices.

>>> Coach beats by $0.02, reports revs in-line; maintains FY16 sales guidance, r

Coach beats by $0.02, reports revs in-line; maintains FY16 sales guidance, raises operating income outlook
  • Reports Q2 (Dec) earnings of $0.68 per share, $0.02 better thanthe Capital IQ Consensus of $0.66; revenues rose 4.5% year/year to $1.27 bln vs the $1.28 bln Capital IQ Consensus. This included a contribution of $13 million or $0.05 per share from Stuart Weitzman.
  • Inventory declined 2% on a consolidated basis and 9% for the Coach brand.
  • Outlook: COH is maintaining its FY16 constant currency revenue growth and operating margin guidance for the Coach brand, while raising its consolidated operating income outlook based on second quarter results.
    • Coach brand revenues for Fiscal 2016 are still expected to increase by low-single digits in constant currency on a 52-week basis. However, based on current exchange rates, foreign currency is now expected to negatively impact overall Fiscal 2016 revenue growth by 225-250 basis points.
    • Coach brand operating margin for Fiscal 2016 is still estimated to be in the mid-to-high teens with some shift between the gross margin and expense ratio from previous annual guidance.
    • Overall, the Stuart Weitzman business is now projected to negatively impact consolidated gross margin and operating margin by about 70 basis points and approximately 20 basis points, respectively -- an improvement from previous guidance.
  • Taken together with its projection for the Coach brand, the company is raising its operating income outlook for Coach, Inc. for Fiscal 2016.

>>> Johnson & Johnson beats by $0.02, reports revs in-line; guides FY16 EPS abov

--> JNJ no pre market

Johnson & Johnson beats by $0.02, reports revs in-line; guides FY16 EPS above consensus, revs below consensus
  • Reports Q4 (Dec) earnings of $1.44 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $1.42; revenues fell 2.4% year/year to $17.81 bln vs the $17.86 bln Capital IQ Consensus. Operational sales results increased 4.4% and the negative impact of currency was 6.8%. Domestic sales increased 8.0%. International sales decreased 11.7%, reflecting operational growth of 1.2% and a negative currency impact of 12.9%. Ex-acquisitions, divestitures and hepatitis C sales, on an operational basis, worldwide sales increased 7.8%, domestic sales increased 13.4% and international sales increased 2.9%.
    • Worldwide Consumer sales of $13.5 billion for the full-year 2015 represented a decrease of 6.8% versus the prior year, consisting of an operational increase of 2.7% and a negative impact from currency of 9.5%. Domestic sales increased 2.5%; international sales decreased 11.9%, which reflected an operational increase of 2.7% and a negative currency impact of 14.6%.
    • Worldwide Pharma sales of $31.4 billion for the full-year 2015 represented a decrease of 2.7% versus the prior year with an operational increase of 4.2% and a negative impact from currency of 6.9%. Domestic sales increased 5.2%; international sales decreased 12.0%, which reflected an operational increase of 3.0% and a negative currency impact of 15.0%.
    • Worldwide Medical Devices sales of $25.1 billion for the full-year represented a decrease of 8.7% versus the prior year consisting of an operational decrease of 1.4% and a negative currency impact of 7.3%. Domestic sales decreased 1.0%; international sales decreased 14.8%, which reflected an operational decrease of 1.7% and a negative currency impact of 13.1%.
  • Co issues guidance for FY16, sees EPS of $6.43-6.58, excluding non-recurring items, vs. $6.40 Capital IQ Consensus; sees FY16 revs +2.3-3.5% to $70.8-71.5 bln (+4.5-6% adj.) vs. $71.99 bln Capital IQ Consensus.