>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: VGGL +8.3%, DRI +3.7%, GIS +1.6%

M&A news: ASH +5% (to separate into two independent, publicly traded companies), TRXC +4.9% (acquired the surgical robotics division of SOFAR S.p.A., in a cash and stock transaction with total consideration of $99.8 million), SLH +3.2% (Bloomberg reporting that IHS Inc (IHS) is considering making bid for SLH above the $55.85 per share offer from Vista Equity Partners)

Other news: WFT +14.4% (decides not to pursue its previously announced public offerings of ordinary shares and mandatorily exchangeable subordinated notes), CORE +3.2% (to replace TTC in the S&P SmallCap 600)

Analyst comments: VBLT +17.2% (initiated with a Buy at Chardan Capital Markets; tgt $25), CNAT +9% (initiated with a Buy at H.C. Wainwright; tgt $15), CPST +8.3% (initiated with a Buy at H.C. Wainwright (Rodman & Renshaw); tgt $1)

>>> ConAgra beats by $0.05; revs +1.1%; guides FY16 EPS below consensus (42.40)

ConAgra beats by $0.05; revs +1.1%; guides FY16 EPS below consensus

Reports Q1 (Aug) earnings of $0.45 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.40; revenues rose 1.1% year/year to $2.79 bln may not compare to the $3.67 bln consensus.
  • Co issues downside guidance for FY16, sees EPS of in line with last year or ~$2.18, excluding non-recurring items, vs. $2.23 Capital IQ Consensus Estimate.
  • Co will offer more details on fiscal 2016 EPS guidance once it is further along with the process of divesting the private label operations, determining associated SG&A reduction targets, and finalizing investment levels for the remaining segments.
  • Despite strong fundamentals and expectations for continued margin expansion, comparable operating profits for the Consumer Foods segment in Q2 are expected to be negatively impacted by foreign exchange, as well as a planned increase in marketing investment.
  • Profits for the Commercial Foods segment are expected to post an increase in profitability year-over-year in the fiscal second quarter.
  • The divestiture process for the private label operations is proceeding as planned, and the company expects to have an announcement on the outcome of this process later this fall.
  • Co will assess opportunities to increase the dividend after it is further along with the strategic plan outlined at the end of fiscal 2015.

>>> US Early premarket gappers

Early premarket gappers
Gapping up: WFT +16.4%, VGGL +10.8%, TRXC +6.7%, SLH +3.3%, CORE +3.1%, NRG +2.8%, AZO +2.6%, GIS +1.6%, TTC +1.3%, DRI +1.3%, GCO +0.8%, RHT +0.5%

Gapping down: WGBS -9.2%, BBL -5%, SDRL -4.9%, THO -4.6%, BHP -4.2%, RIO -4.2%, FCX -4%, NMFC -3.9%, ITCI -3.6%, MRD -3.6%, CBK -3.6%, FIT -3.3%, RDS.A -3.3%, PBR -3.2%, BP -3.2%, GSK -3.1%, SAN -3%, TOT -3%, GPRO -2.9%, STO -2.7%, SJM -2.6%, MOS -2.6%, NVS -2.5%, NFLX -2.3%, WYNN -2.3%, X -2.3%, UL -2.3%, DB -2.2%, SCMP -1.1%

(Valores) Oi Shareholder Asks Brazil CVM to Reassess Merger W/PT: Valor

The asset management company Polo Capital asked the Securities and Exchange Commission (CVM) to reassess their understanding of the merger between Hi and Portugal Telecom (PT). The management, which has common shares Hi, says the events from the loss of € 897 million from the Portuguese tele box, applied in Rioforte, bankrupt holding company of the...

see pdf for the full article

>>> General Mills beats by $0.10, misses on revs; reaffirms FY16 outlook but rai

--> GIS +1.6% in pre open

General Mills beats by $0.10, misses on revs; reaffirms FY16 outlook but raises FX headwind

  • Reports Q1 (Aug) earnings of $0.79 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus Estimate of $0.69; revenues fell 1.4% year/year to $4.21 bln vs the $4.25 bln consensus, FX reduced net sales growth by 5 percentage points.
    • On a constant-currency basis, net sales grew 4 percent, including 2 points of growth contributed by the Annie's business acquired in Oct 2014. Pound volume was 2 percent above year-ago levels.
    • Net price realization and mix contributed 2 points of net sales growth. Adjusted gross margin increased 290 basis points due to improved net price realization and savings from cost-reduction initiatives.
  • General Mills reiterated its full-year growth targets for 2016, which current General Mills reiterated its full-year growth targets for 2016, which currently exclude any impact from the proposed Green Giant divestiture:
    • Net sales in constant currency are expected to essentially match the 2015 levels that included a 53rd week. Total segment operating profit is expected to grow at a low single-digit rate in constant currency.
    • Constant-currency adjusted diluted EPS is expected to grow at a mid single-digit rate from the base of $2.86 earned in fiscal 2015. At current exchange rates, the company estimates a 9-cent headwind from FX in 2016 (up from $0.04), which comes to EPS of $2.92-2.94 vs. $2.96 Capital IQ Consensus.

>>> FactSet beats by $0.01, reports revs in-line; guides Q1; acquires Portware

--> FDS No pre open indication for now

FactSet beats by $0.01, reports revs in-line; guides Q1; acquires Portware

  • Reports Q4 (Aug) earnings of $1.48 per share, $0.01 better than the Capital IQ Consensus of $1.47 vs. $1.46-1.48 guidance; revenues rose 9.7% year/year to $261.8 mln vs the $261.75 mln consensus.
  • Co issues guidance for Q1, sees EPS of $1.46-1.48 vs. $1.49 Capital IQ Consensus Estimate; sees Q1 revs of $265-259 mln vs. $265.92 mln Capital IQ Consensus Estimate.
    • The lapse in the U.S. Federal R&D tax credit on December 31, 2014, reduced each end of the GAAP diluted EPS range by $0.02 compared to the recently completed fourth quarter.
    • If the U.S. Federal R&D tax credit is re-enacted by Nov 30, 2015, diluted EPS would range between $1.51 and $1.53. FactSet would also recognize an income tax benefit of $0.14 per share if the R&D tax credit could be retroactively applied to previous periods.
  • Co has agreed to acquire all the issued and outstanding membership interests of Portware, LLC for cash consideration of $265 million. Portware is an award-winning, multi-asset execution management system ("EMS") that is trusted by the world's largest asset managers.

>>> Darden Restaurants beats by $0.10, reports revs in-line; raises FY16 EPS abo

--> DRI +1.3% pre open

Darden Restaurants beats by $0.10, reports revs in-line; raises FY16 EPS above consensus; Q1 comps +3.4%;

Reports Q1 (Aug) earnings of $0.68 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus Estimate of $0.58; revenues rose 5.7% year/year to $1.69 bln vs the $1.67 bln consensus. Q1 Same-restaurant sales increased 3.4% for the quarter.
  • Co issues raised guidance for FY16, sees EPS of $3.15-3.30 from $3.05-3.20 vs. $3.13 Capital IQ Consensus Estimate. Co reaffirms FY16 U.S. same-restaurant sales growth at 2.0% to 2.5%.