Gapping down
In reaction to disappointing earnings/guidance: AKAM -18.6%, TWTR -10.6%, GNMK -9.6%, KKR -7.9%, (announces $500 mln buyback; sets quarterly distribution at $0.16/unit), BGFV -5.4%, LYG -4.4%, BKFS -3.8%, SMED -3%, BBOX -2.6%, STO -2.6%, HSY -2.6%, RUBI -2.5%, CMC -2.3%, KTCC -1.8%, VRSK -1.7%, (is exploring strategic alternatives for its healthcare data analytics business, Verisk Health ), WBA -1.7%, SNCR -1.3%, ESRX -1.2%, CARB -1.2%, GILD -1.1%, GRMN -1.1%, LMAT -1%, SKT -0.8%
M&A news: RAD -8.1% (after 40%+ move higher yesterday on WSJ report that Walgreens Boot Alliance is near a deal to acquire Rite Aid; WBA/RAD confirmed news after the close), WBA -1.8% (jumped 6% yesterday on WSJ report that Walgreens Boot Alliance is near a deal to acquire Rite Aid; WBA/RAD confirmed news after the close)
Other news: MCUR -66.7% ( Announces Results for Phase III Clinical Trial of CureXcell(R) in Diabetic Foot Ulcers; Trial did did not meet its primary endpoint, did not meet the secondary endpoints), ICPT -11% (announces results of Phase 2 Trial of OCA in NASH patients in Japan), FRED -3.7% (late boost following analyst comments suggesting potential takeover), HCLP -3.1% (cont weakness), BA -1.6% (loss of Long Range Strike-Bomber contract to Northrop Grumman), LMT -0.7% (loss of Long Range Strike-Bomber contract to Northrop Grumman)
Analyst comments: YELP -3.9% (initiated with a Sell at ROTH Capital; tgt $17.50), CMI -2% (downgraded to Underweight from Equal-Weight at Morgan Stanley), MRVL -2% (downgraded to Sell from Neutral at Citigroup), HIG -0.5% (downgraded to Neutral from Overweight at Atlantic Equities
)
In reaction to disappointing earnings/guidance: AKAM -18.6%, TWTR -10.6%, GNMK -9.6%, KKR -7.9%, (announces $500 mln buyback; sets quarterly distribution at $0.16/unit), BGFV -5.4%, LYG -4.4%, BKFS -3.8%, SMED -3%, BBOX -2.6%, STO -2.6%, HSY -2.6%, RUBI -2.5%, CMC -2.3%, KTCC -1.8%, VRSK -1.7%, (is exploring strategic alternatives for its healthcare data analytics business, Verisk Health ), WBA -1.7%, SNCR -1.3%, ESRX -1.2%, CARB -1.2%, GILD -1.1%, GRMN -1.1%, LMAT -1%, SKT -0.8%
M&A news: RAD -8.1% (after 40%+ move higher yesterday on WSJ report that Walgreens Boot Alliance is near a deal to acquire Rite Aid; WBA/RAD confirmed news after the close), WBA -1.8% (jumped 6% yesterday on WSJ report that Walgreens Boot Alliance is near a deal to acquire Rite Aid; WBA/RAD confirmed news after the close)
Other news: MCUR -66.7% ( Announces Results for Phase III Clinical Trial of CureXcell(R) in Diabetic Foot Ulcers; Trial did did not meet its primary endpoint, did not meet the secondary endpoints), ICPT -11% (announces results of Phase 2 Trial of OCA in NASH patients in Japan), FRED -3.7% (late boost following analyst comments suggesting potential takeover), HCLP -3.1% (cont weakness), BA -1.6% (loss of Long Range Strike-Bomber contract to Northrop Grumman), LMT -0.7% (loss of Long Range Strike-Bomber contract to Northrop Grumman)
Analyst comments: YELP -3.9% (initiated with a Sell at ROTH Capital; tgt $17.50), CMI -2% (downgraded to Underweight from Equal-Weight at Morgan Stanley), MRVL -2% (downgraded to Sell from Neutral at Citigroup), HIG -0.5% (downgraded to Neutral from Overweight at Atlantic Equities
)
Smartphone Shipments Reach Second Highest Level for a Single Quarter as Worldwide Volumes Reach 355.2 Million in the Third Quarter - IDC
Vendors shipped a total of 355.2 million smartphones worldwide in the third quarter of 2015 (3Q15), up 6.8% from the 332.6 million units in 3Q14, marking the second highest quarter of shipments on record. The 3Q15 shipments were slightly below IDC's previous forecast of 363.8 million units, largely due to slightly lower than expected iPhone shipments, as well as Android flagship introductions from several top-tier OEMs with price points outside the consumer sweet spot.
Samsung once again remained the overall leader in the worldwide smartphone market with 84.5 million units shipped, up 6.1% from last year. Samsung remained focused on premium handsets with the launch of two new flagship devices, the Galaxy S6 edge + and Note5. Beating Apple to the punch with an untraditional August launch for the Note series (and new S6 edge +), Samsung saw stronger than normal September shipments as the new iPhone was yet to be released. Outside of the key flagship models, sub-$200 devices (Galaxy Core/Grand Prime, J-Series) drove a majority of shipments in many key emerging markets.
Apple's newest iPhones helped drive third quarter shipments of 48.0 million units, up 22.2% from the 39.3 million units last year. With a record-breaking 13 million iPhone 6S and 6S Plus units shipped during launch week, the two new models continue to capture upgraders and Android converts alike in many key markets such as China and the United States. The arrival of the new "S" models brings a new Rose gold color to the table along with Force Touch, improved camera, and a faster processor. Older iPhone 5S, 6, and 6 Plus models also sold vigorously during the quarter thanks to recent price cuts across all models. Apple's recently launched upgrade plan should also help drive handset upgrades in developed markets where smartphone saturation continues to increase.
Huawei shipped 26.5 million units, up an impressive 60.9% from last year. Huawei once again focused its efforts on the mid-to-high range as nearly a third of the quarterly shipments were in this price range. Devices like the Honor 6 Plus and Ascend P8 helped grow the mid-to-high range 25% from last year according to Huawei. Despite the rapid growth in China and Europe, Huawei will need to focus on the United States where its presence remains relatively low. The recent launch of the new premium Nexus 6P device could signal that Huawei is finally ready to seriously compete in the U.S.
Lenovo continued to fight its way to the top of the smartphone market with help from its acquired assets in Motorola. In the third quarter, combined shipments of Lenovo and Motorola-branded smartphones reached 18.8 million, which was up 11.1% from a year ago. Lenovo-branded smartphones have predominantly been a China play, although recently growth has taken off in Middle East & Africa, as well as Central & Eastern Europe. Motorola's strong markets continue to be North America and Latin America, where its variants of Moto X, G, and E hit on attractive price tiers.
Xiaomi shipped 18.3 million smartphones in 3Q15, bringing its 2015 total to 52.1 million. While the company continues its pursuit of branching off into Southeast Asia, India, and Brazil, China still remains the sweet spot for the company. Within China, Xiaomi launched the Redmi Note 2, Redmi 2A+, as well as the Mi 4c in the third quarter. The Redmi Note 2 was the most popular model among Chinese consumers and drove volumes through Xiaomi's retail location known as the Mi Home
Gapping up
In reaction to strong earnings/guidance: VCRA +22.2%, CLD +18.1%, SSE +14.2%, INFN +13.4%, PEGA +9.4%, SLCA +9.2%, SONS +6.4%, WNC +6.3%, CSS +6%, BBSI +5.2%, AAC +5%, WCIC +4.5%, LVLT +4.3%, TRU +4.2%, BSX +4%, BLDP +4%, MDLZ +4%, ZLTQ +3.9%, CKH +3.8%, IPHI +3.6%, RGC +3.1%, VDSI +3.1%, GNRC +3.1%, EXAC +2.9%, NOV+2.9%, BXMT +2.8%, LFUS +2.8%, NSC +2.8%, NVMI +2.6%, RSYS +2.2%, RRTS +2.2%, ATRC +2.1%, GD +2.1%, HLT +1.9%, VLO +1.9%, VLO +1.7%, ETH +1.5%, AAPL +1.4%, NMIH +1.3%, CNI +1.1%, (will purchase common shares under specific share repurchase plans during the term of its Normal Course Issuer Bid for up to $33 mln common shares )
M&A news: CBI +14% (to sell all outstanding equity interests in its nuclear construction business to Westinghouse Electric Company LLC for $229 mln; co will incur $1.0-1.2 bln charge; provided mixed Q3 guidance), DMND +5.8% (to be acquired by Snyder's-Lance (LNCE) for ~$1.91 bln), BT +3.2% (The Competition and Markets Authority has provisionally cleared BT's anticipated acquisition of EE Limited), BUD +1.5% (SABMiller plc and Anheuser-Busch InBev (BUD) announce an extension of deadline for BUD to make a formal offer from today until November 4)
Select metals/mining stocks trading higher: AG +3.6%, SAND +2.2%, NEM +1.8%, GFI +1.4%, GDX +1.4%, ABX +1.3%, CLF +1.1%
Other news: WGBS +6.3% (receives a notice of patent grant and allowance for methods and systems utilizing multi-well chips), NOC +5.2% ( awarded Air Force contract for the Long Range Strike Bomber, also reported earnings), ABCB +4% (to replace MKTX in the S&P SmallCap 600), CORE +2.9% (signed a five year supply agreement to service ~900 7-Eleven stores in three western regions), RRTS +2.2% (following 40%+ move lower yesterday), ASML +2.2% (AAPL supplier), SWKS +2.1% (AAPL supplier), ARMH +1.9% (AAPL supplier), GHL +1.8% (CEO disclosed purchase of 202.5K shares, worth total of $5.04 mln ), HUN +1.2% (authorizes an accelerated share repurchase agreement to repurchase $100 mln of its common stock), GPRO +1.2% (slightly higher pre-mkt following yesterday's decline)
Analyst comments: BABA +1.1% (target raised to $95 at RBC Capital Mkts), AIXG +0.5% (upgraded to Hold at Kepler)
In reaction to strong earnings/guidance: VCRA +22.2%, CLD +18.1%, SSE +14.2%, INFN +13.4%, PEGA +9.4%, SLCA +9.2%, SONS +6.4%, WNC +6.3%, CSS +6%, BBSI +5.2%, AAC +5%, WCIC +4.5%, LVLT +4.3%, TRU +4.2%, BSX +4%, BLDP +4%, MDLZ +4%, ZLTQ +3.9%, CKH +3.8%, IPHI +3.6%, RGC +3.1%, VDSI +3.1%, GNRC +3.1%, EXAC +2.9%, NOV+2.9%, BXMT +2.8%, LFUS +2.8%, NSC +2.8%, NVMI +2.6%, RSYS +2.2%, RRTS +2.2%, ATRC +2.1%, GD +2.1%, HLT +1.9%, VLO +1.9%, VLO +1.7%, ETH +1.5%, AAPL +1.4%, NMIH +1.3%, CNI +1.1%, (will purchase common shares under specific share repurchase plans during the term of its Normal Course Issuer Bid for up to $33 mln common shares )
M&A news: CBI +14% (to sell all outstanding equity interests in its nuclear construction business to Westinghouse Electric Company LLC for $229 mln; co will incur $1.0-1.2 bln charge; provided mixed Q3 guidance), DMND +5.8% (to be acquired by Snyder's-Lance (LNCE) for ~$1.91 bln), BT +3.2% (The Competition and Markets Authority has provisionally cleared BT's anticipated acquisition of EE Limited), BUD +1.5% (SABMiller plc and Anheuser-Busch InBev (BUD) announce an extension of deadline for BUD to make a formal offer from today until November 4)
Select metals/mining stocks trading higher: AG +3.6%, SAND +2.2%, NEM +1.8%, GFI +1.4%, GDX +1.4%, ABX +1.3%, CLF +1.1%
Other news: WGBS +6.3% (receives a notice of patent grant and allowance for methods and systems utilizing multi-well chips), NOC +5.2% ( awarded Air Force contract for the Long Range Strike Bomber, also reported earnings), ABCB +4% (to replace MKTX in the S&P SmallCap 600), CORE +2.9% (signed a five year supply agreement to service ~900 7-Eleven stores in three western regions), RRTS +2.2% (following 40%+ move lower yesterday), ASML +2.2% (AAPL supplier), SWKS +2.1% (AAPL supplier), ARMH +1.9% (AAPL supplier), GHL +1.8% (CEO disclosed purchase of 202.5K shares, worth total of $5.04 mln ), HUN +1.2% (authorizes an accelerated share repurchase agreement to repurchase $100 mln of its common stock), GPRO +1.2% (slightly higher pre-mkt following yesterday's decline)
Analyst comments: BABA +1.1% (target raised to $95 at RBC Capital Mkts), AIXG +0.5% (upgraded to Hold at Kepler)
Early premarket gappers
Gapping up: VCRA +22.2%, CLD +18.1%, SSE +14.2%, INFN +13.1%, PEGA +9.4%, CBI +7.8%,SONS +6.4%, WNC +6.3%, NOC +5.9%, BBSI +5.2%, AAC +5%, WCIC +4.5%, TRU +4.2%, ABCB+4%, BSX +4%, BLDP +4%, CKH +3.8%, ATML +3.2%, RGC +3.1%, CORE +2.9%, EXAC +2.9%,BXMT +2.8%, HOT +2.8%, VDSI +2.7%, ZLTQ +2.6%, NVMI +2.6%, VLO +2.4%, RRTS +2.2%, RSYS+2.2%, RRTS +2.2%, ATRC +2.1%, NCR +1.9%, GHL +1.8%, IPHI +1.8%, SKYW +1.6%, AAPL +1.6%,WBA +1.4%, NMIH +1.3%, CNI +1.1%
Gapping down: MCUR -71.6%, AKAM -18.5%, TWTR -10.5%, GNMK -9.6%, RAD -7.8%, KKR -6%,BGFV -5.4%, AFL -4.7%, BKFS -3.8%, FRED -3.7%, STO -3.1%, SMED -3%, BBOX -2.6%, RUBI-2.5%, NBR -2.2%, VRSK -1.7%, BA -1.6%, XOMA -1.5%, GILD -1.3%, LMT -1.2%, CARB -1.2%,LMAT -1%, GRMN -0.9%, NUVA -0.7%, FSP -0.7%, TRMK -0.7%
Gapping up: VCRA +22.2%, CLD +18.1%, SSE +14.2%, INFN +13.1%, PEGA +9.4%, CBI +7.8%,SONS +6.4%, WNC +6.3%, NOC +5.9%, BBSI +5.2%, AAC +5%, WCIC +4.5%, TRU +4.2%, ABCB+4%, BSX +4%, BLDP +4%, CKH +3.8%, ATML +3.2%, RGC +3.1%, CORE +2.9%, EXAC +2.9%,BXMT +2.8%, HOT +2.8%, VDSI +2.7%, ZLTQ +2.6%, NVMI +2.6%, VLO +2.4%, RRTS +2.2%, RSYS+2.2%, RRTS +2.2%, ATRC +2.1%, NCR +1.9%, GHL +1.8%, IPHI +1.8%, SKYW +1.6%, AAPL +1.6%,WBA +1.4%, NMIH +1.3%, CNI +1.1%
Gapping down: MCUR -71.6%, AKAM -18.5%, TWTR -10.5%, GNMK -9.6%, RAD -7.8%, KKR -6%,BGFV -5.4%, AFL -4.7%, BKFS -3.8%, FRED -3.7%, STO -3.1%, SMED -3%, BBOX -2.6%, RUBI-2.5%, NBR -2.2%, VRSK -1.7%, BA -1.6%, XOMA -1.5%, GILD -1.3%, LMT -1.2%, CARB -1.2%,LMAT -1%, GRMN -0.9%, NUVA -0.7%, FSP -0.7%, TRMK -0.7%
Arrow Elec misses by $0.06, reports revs in-line; guides Q4 EPS below consensus, revs below consensus
- Reports Q3 (Sep) earnings of $1.40 per share, excluding non-recurring items, $0.06 worse than the Capital IQ Consensus of $1.46; revenues rose 1.5% year/year to $5.7 bln vs the $5.75 bln Capital IQ Consensus.
- Co issues downside guidance for Q4, sees EPS of $1.75-1.91 vs. $2.02 Capital IQ Consensus Estimate; sees Q4 revs of $6.15-6.55 bln vs. $6.67 bln Capital IQ Consensus Estimate.
- "Both our global components and enterprise computing solutions businesses continued to experience strong demand in Europe, while our Americas businesses broadly performed as we had anticipated. In Asia, the economic deterioration was worse than we expected..."
Mondelez Int'l beats by $0.01, reports revs in-line; reaffirms guidance; creates Chief Commercial and Growth roles
- Reports Q3 (Sep) earnings of $0.42 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.41; revenues fell 17.8% year/year to $6.85 bln vs the $6.88 bln Capital IQ Consensus.
- Organic rev +3.7%, +17.4% in LatAm, +3.1% in Asia Pac, +6.3% EMEA, -1.6% Eu, +0.6% N. Am.
- Reaffirms FY15: Double digit constant FX adj. EPS growth, Organic net rev +3%, adj. operating margin ~14%
- Reaffirms FY16 adj. operating income margin 15-16%.
- Mondelez International also announced that it has named Mark Clouse, 47, to the newly created position of Chief Commercial Officer (CCO), and Tim Cofer, 46, as Chief Growth Officer (CGO), as the company continues to sharpen its focus on cost savings, growth and commercial execution.
EU Luxury Stocks Don’t Price in Risk of Recession
The prospect of more subdued global GDP growth is the “big elephant in the room” that may affect luxury growth in 2016, Exane says in note.
- Global GDP growth consensus of 3.4% suggests luxury industry would expand 5% in 2016; however, GDP growth consensus falling
- FX may become “trickier” for European luxury cos.
- Sees more limited retail space growth possibilities and softer price inflation for sector; luxury cos. need to adapt to “new normal” growth of 3%-5% vs recent 7%-8%; this requires more cash discipline, focus on efficiency, smarter M&A
- Luxury stock prices have moderated, aren’t pricing in “tail risk” of global recession
- In “high quality” stocks prefers Richemont (outperform) over LVMH, which is cut to neutral
- In “high beta” prefers Kering (outperform) over Swatch, cuts to neutral
- “Defensives” such as Hermes, Luxottica look pricey
- Cuts PTs on Burberry, Hugo Boss, Kering, Luxottica, LVMH, Prada, Swatch
Hess beats by $0.17, beats on revs
- Reports Q3 (Sep) loss of $1.03 per share, $0.17 better than the Capital IQ Consensus of ($1.20); revenues fell 38.3% year/year to $1.69 bln vs the $1.67 bln Capital IQ Consensus.
- Oil and gas production increased to 380,000 barrels of oil equivalent per day (boepd) compared to 318,000 boepd in the third quarter of 2014
- Oil and gas production in the Bakken was 113,000 boepd, up from 86,000 boepd in the year-ago quarter
- Completed sale of 50% interest in Bakken Midstream, resulting in $3 billion of cash proceeds E&P capital and exploratory expenditures totaled $849 million in the third quarter, down from $1,371 million in the prior-year quarter.
Preliminary 2016 Guidance
- E&P capital and exploratory expenditures are expected to be $2.9 billion to $3.1 billion, down approximately 27 percent from 2015 forecasted E&P capital and exploratory expenditures of $4.1 billion
- Oil and gas production is forecast to be in the range of 330,000 to 350,000 boepd compared to projected production of 370,000 to 375,000 boepd in 2015, and 360,000 boepd in the fourth quarter of 2015
General Dynamics beats by $0.15, beats on revs
- Reports Q3 (Sep) earnings of $2.28 per share, $0.15 better than the Capital IQ Consensus of $2.13; revenues rose 3.1% year/year to $7.99 bln vs the $7.84 bln Capital IQ Consensus.
- General Dynamics' total backlog at the end of third-quarter 2015 was $68.7 billion. The Aerospace group continued to experience steady demand in the quarter with order activity for each of the products in the Gulfstream portfolio. Also, each of the defense businesses had significant orders in the quarter. The estimated potential contract value, representing management's estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $25.5 billion. Total potential contract value, the sum of all backlog components, was $94.3 billion at the end of the quarter.