>>> Tyson Foods beats by $0.03, misses on revs; guides FY15 revs below consensus

Tyson Foods beats by $0.03, misses on revs; guides FY15 revs below consensus

Reports Q2 (Mar) earnings of $0.75 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.72; revenues rose 10.5% year/year to $9.98 bln vs the $10.09 bln consensus. "Our fiscal second quarter is seasonally challenging, but we came in above our projections due to strong performances by our Prepared Foods and Chicken segments."
  • Co issues guidance for FY15, sees FY15 revs of approx $41 bln vs. $42.18 bln Capital IQ Consensus Estimate.
  • "In fiscal 2015, we expect domestic protein production (chicken, beef, pork and turkey) to increase approximately 2% from fiscal 2014 levels. Grain supplies are expected to increase in fiscal 2015, which should result in lower input costs as well as decreased costs for cattle and hog producers. The following is a summary outlook for each of our segments, as well as an outlook on sales, capital expenditures, net interest expense, liquidity and share repurchases. Our accounting cycle results in a 53-week year in fiscal 2015 as compared to a 52-week year in fiscal 2014. Accordingly, the outlook is based on a 52-week year."

--> Conf call : Tyson Foods reaffirmed FY15 EPS $3.30-3.40 vs $3.38 Capital IQ Consensus


Tyson Foods (TSN 40.50) is trading lower this morning after reporting first quarter results and issuing guidance for the full year.

The company reported second quarter adjusted earnings of $0.75 per share, beating expectations (year/year adjusted earnings rose 25%). On the top line, revenues rose 10.5% year/year to $9.98 billion, which fell just a little short of expectations.

Overall, the company came in above expectations on strong performances in its Prepared Foods and Chicken segments.

During the quarter, chicken, pork and prepared foods margins all improved year/year. Chicken prices were flat year/year, however, feed ingredient costs came in lower, helping boost operating income.

Meanwhile, margins for beef and international weakened. Sales volume fell in both segment. Average sales prices fell in the brief segment, while average sales prices rose in its international segment.

Overall, beef and chicken made up about 68% of total company sales (beef 40%, chicken 28%). Prepared foods made up 18% and pork made up 12%. The company said, "Our fiscal second quarter is seasonally challenging, but we came in above our projections due to strong performances by our Prepared Foods and Chicken segments."

Looking ahead, Tyson expects to see revenue in fiscal year 2015 of approximately $41 billion, which falls short of expectations.

"In fiscal 2015, we expect domestic protein production (chicken, beef, pork and turkey) to increase approximately 2% from fiscal 2014 levels. Grain supplies are expected to increase in fiscal 2015, which should result in lower input costs as well as decreased costs for cattle and hog producers. The following is a summary outlook for each of our segments, as well as an outlook on sales, capital expenditures, net interest expense, liquidity and share repurchases. Our accounting cycle results in a 53-week year in fiscal 2015 as compared to a 52-week year in fiscal 2014. Accordingly, the outlook is based on a 52-week year."

>>> US Gapping down

Gapping down In reaction to disappointing earnings/guidance: DCI -2%, KOS -1.9%, MGM -1.9%, BWP -1.7%, HYH -1.7%, WBK -1.3%, SYY -1.3%, ARCC -1.2%, NMM -0.8%, D -0.6%, HSIC -0.5%

M&A news: SYT -6.8% (pulling back following M&A speculation on Friday)

Other news: NBG -4.8% (little progress in Greece negotiations over the wkend), EMES -4.5% (CFO departs for personal reasons), VALE -2.1% (modest pull back following last week's advances), ARP -1.8% (files for $600 mln mixed securities shelf offering), CNHI -1.6% (small pull back following recent strength last week), ADPT -1.6% (proposed common stock offering of 2.1 mln shares), STM -1% (cont weakness)

Analyst comments: ANF -2.1% (initiated with a Underperform at RBC Capital Mkts), SCTY -1.2% (downgraded to Neutral from Outperform at Robert W. Baird), BUD -0.5% (downgraded to Underperform from Outperform at Credit Agricole)

>>> US Gapping up

Gapping up In reaction to strong earnings/guidance: ARRY +13.9%, SCOK +6.9%, BSFT +4.9%, ON +4.8%, CTSH +4.4%, PETS +3.3%, DO +2.5%, RLGY +2.5%, CMCSA +1.7%, BRK.B +1.1%, EXAS +1%, CVC +0.5%

M&A news: CYNI +24.9% (entered into a definitive agreement to be acquired by Ciena (CIEN) for approximately $4.75 per share of Cyan common stock), FRM +19.1% (has received a written non-binding indication of interest from a strategic acquiror for a transaction in which all Furmanite stockholders would receive cash for their shares, at a substantial premium to current market prices), NYT +4.4% (Michael Bloomberg may bid $5 bln for NYT, according to Fox Business)

Other news: IMNP +4.9% (Immune Pharma and STC Biologics announce strategic partnership to accelerate development of NanomAbs), BLRX +4.7% (successful completion dose escalation stage in its ongoing Phase 2 study of BL-8040), NETE +3.4% (entered into a Securities Purchase Agreement to offer and sell 5,500 shares of newly-issued Series A Convertible Preferred Stock having an aggregate offering price of $5.5 mln; also announced 2 other financings), ARRS +2.8% (Arris and Tivo announce partnership on an integration of TiVo software and cloud-based services with ARRIS set-top boxes), ALU +2.6% (in symp with NOK, which was upgraded today), TIVO +2.1% (Arris and Tivo announce partnership on an integration of TiVo software and cloud-based services with ARRIS set-top boxes), CTIC +1.7% ( Baxalta Incorporated discloses 8.7% passive stake in 13G filing), MDR +1.1% (received a large contract amendment from Al-Khafji Joint Operations for a platform in the Hout field), TSLA +0.9% (Edison International (EIX) teams up with Tesla for battery storage projects), WYNN +0.7% (Macau Gaming Inspection and Coordination Bureau reports April gross gaming rev -39% YoY)

Analyst comments: CBYL +9% (initiated with a Outperform at Wedbush; tgt $21), QTM +3.4% (upgraded to Outperform from Market Perform at Northland Capital), WLL +3% (upgraded to Overweight from Equal-Weight at Morgan Stanley), NOK +2.5% (upgraded to Buy at Kepler), JD +2% (target raised to $44 at Oppenheimer), WETF +1.5% (upgraded to Outperform from Mkt Perform at Keefe Bruyette), TWTR +1.4% (upgraded to Hold from Sell at Stifel), LNKD +1.4% (upgraded to Buy from Hold at Argus), WFM +1.1% (target raised to $65 at Oppenheimer), AMZN +0.8% (target raised to $525 at Oppenheimer)

>>> PartnerRe Reaffirms Commitment to Merger with AXIS Capitalm, rejects $130/sh

PartnerRe Reaffirms Commitment to Merger with AXIS Capitalm, rejects $130/share proposal From Exor 

- PartnerRe has rejected the unsolicited proposal by EXOR S.p.A. to acquire PartnerRe at a price of $130 per share. The Company further reaffirmed its commitment to the planned merger with AXIS Capital Holdings Limited (AXIS Capital) (NYSE:AXS) and announced enhanced merger terms that allow PartnerRe to pay a one-time special dividend of $11.50 per common share to PartnerRe common shareholders prior to the closing of the amalgamation agreement between PartnerRe and AXIS Capital.

- The PartnerRe Board noted that throughout the course of negotiations, EXOR maintained its $130 per share proposal, and indicated that due diligence on PartnerRe would be confirmatory only and that there would be no price improvement. Despite numerous attempts by the PartnerRe Board to negotiate on price, EXOR stated that $130 per share was its best and only offer.

- The PartnerRe Board concluded from these negotiations and analysis that the EXOR proposal does not properly or adequately value PartnerRe, as it does not fully recognize the strength of its balance sheet and the value of its franchise Further, the PartnerRe Board determined that superior value is created through the enhanced merger terms with AXIS Capital, and the substantial long-term value potential of the combination with AXIS Capital. - Source TradeTheNews.com

(BFW) PartnerRe Rejects Exor Offer, Ends Talks, to Pay Special Div.

BUS 05/04 10:30 PartnerRe Reaffirms Its Commitment to the Merger with AXIS Capital
BFW 05/04 10:32 *PARTNERRE REJECTS $130/SHR PROPOSAL FROM EXOR
BN 05/04 10:32 *PARTNERRE:MADE NUMEROUS ATTEMPTS TO NEGOTIATE ON PRICE W/ EXOR
BN 05/04 10:31 *PARTNERRE REJECTS $130/SHR PROPOSAL FROM EXOR
BN 05/04 10:30 *PARTNERRE: REJECTS EXOR PROPOSAL, TERMINATES TALKS
BN 05/04 10:30 *PARTNERRE REJECTS EXOR PROPOSAL & TERMINATES TALKS
BN 05/04 10:30 *PARTNERRE HOLDERSEE TO GET SPECIAL DIV 11.50 PER COMMON SHARE
BN 05/04 10:30 *PARTNERRE HOLDERS TO GET SPECIAL DIV $11.50/SHR ON CLOSING
BN 05/04 10:30 *PARTNERRE HOLDERSEE TO GET SPEICAL DIV
BFW 05/04 10:30 *PARTNERRE REAFFIRMS COMMITMENT TO MERGER WITH AXIS CAPITAL
BN 05/04 10:30 *PARTNERRE REPORTS ENHANCED MERGER TERMS
BN 05/04 10:30 *PARTNERRE REAFFIRMS COMMITMENT TO MERGER WITH AXIS CAPITAL
BN 05/04 10:30 *PARTNERRE REAFFIRMS COMMITMENT TO MERGER W/ AXIS CAPITAL
PartnerRe Rejects Exor Offer, Ends Talks, to Pay Special Div.
2015-05-04 10:33:21.759 GMT


By Andrew Cinko
(Bloomberg) -- PartnerRe reject unsolicited proposal by
EXOR (worth $130/shr); to pay special div. $11.50/shr.
Statement:Link
Link to Company News:{3343895Z BH <Equity> CN <GO>}
Link to Company News:{AXS US <Equity> CN <GO>}
Link to Company News:{EXO IM <Equity> CN <GO>}
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For Related News and Information:
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First Word newswire: {NH BFW<GO>}

To contact the editor responsible for this story:
Andrew Cinko at +1-609-279-4533 or
cinko@bloomberg.net

(Kepler-Cheuvreux) Nokia - Upgrade from Reduce to Buy, TP from €6 to €9

* Upgrade from Reduce to Buy, TP lifted from EUR6 to EUR9

We upgrade the stock from Reduce to Buy to align our rating with our positive view on the combined Nokia/Alcatel-Lucent entity. We lift our TP from EUR6 to EUR9. The shares have dropped by more than 20% since the announcement of the merger project with Alcatel-Lucent, and the riskreward is now becoming fairly attractive with massive 50% upside ahead.

* Networks impacted by multiple negative factors in Q1
Nokia delivered weak margins in networks in Q1 (only 3.2%, down 610bps YOY) due to multiple negative factors coming altogether in Q1, including: 1) lower software sales (down 500bps YOY in the mix, due to lower core
networking and software sales in Japan and the US); 2) the short-term impact of strategic entry deals, particularly in China (large upfront costs but good long-term margins); 3) lower margins in services due to a negative mix (more network rollouts) and a big impact on system integration due to significantly lower very high-margin business coming from one specific customer; 4) higher opex due to a stronger US dollar and investments in new technologies (4G, 5G, Cloud); and 5) more challenging market conditions.

* Networks margin to gradually rebound in coming quarters
CEO Suri seems confident about improving margins materially in the coming quarters and reaching the mid-point of long-term margin guidance in networks this year (close to 9.5% vs. 12.2% last year) as: 1) some negative impacts in Q1 should gradually ease by H2 (higher capacity upgrades, lower impact from strategic entry deals, lower opex increase, higher SI sales thanks to large deal wins); 2) sales should remain strong in coming quarters (+4% LFL this year, as the group still has a high win rate); 3) the group has just launched an expanded software up-sell programme targeting its top 100 customers to boost software revenue; and 4) an acceleration of cost cutting (discretionary and overhead, COGS, R&D). We have cut our networks margin estimate to 9.5% this year (vs. 10.5% previously) and have materially increased the contribution from technologies. We have lifted EPS by 7-8% over 2015-17E.

* Upgrade from Reduce to Buy, TP lifted from EUR6 to EUR9
We upgrade the stock from Reduce to Buy to align our rating with our positive view on the combined Nokia/Alcatel-Lucent entity (see our note from 16 April). The new entity will have leading positions in key markets and benefit from an excellent products-geo fit, larger scale effects, a credible synergies target and relatively limited execution risk. We lift our TP up from EUR6 to EUR9 (18- 20x our EUR0.55 EPS for 2017, discounted back today). Accordingly, we remove Nokia from our Least Preferred Stocks in the sector.