>>> US Gapping Down

Gapping down
In reaction to disappointing earnings/guidance: YELP -20.4%, DATA -12.4%, VDSI -10.2%, GIGA -9.8%, TWTR -9.8%, AKAM -9%, ATML -6.4%, MDCO -5.3%, BBOX -5.1%, SLCA -5%, CNHI -4.7%, CG -3.9%, IPHI -3.1%, DORM -2.7%, BDC -2.6%, MA -2.3%, HA -1.7%, AFL -1.7%, GTI -1.6%, CBZ -1.4%, RES -1.3%, GIB -1.2%, DXYN -1.1%, Q -1%, ETN -0.9%, LVLT-0.8%, SNCR -0.6%, SPWR -0.5%, EW -0.5%


Other news: SFY -13.7% ( Retains Lazard to Advise as to Strategic Alternatives Related to Its Capital Structure ), ZGNX -4.2% ( announces a public offering of 3.8 mln common stock shares), PPP -2.2% (reported a fatal accident involving an employee at its San Dimas mine in Mexico; normal operations continue as co and local authorities investigate the incident), V -1% (in symp with MA results)

Analyst comments: MDXG -1.6% (downgraded to Buy at Needham), POT -0.7% (downgraded to Mkt Perform from Outperform at Raymond James ), ADM -0.5% (downgraded to Neutral from Buy at Citigroup)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: NHTC +23.7%, ( increases dividend by 33% to $0.04 per share, authorizes $15 mln share repurchase) STLY +19.8%, RUBI +16.5%, CALX +14.3%, AIZ +9.6%, MTSI +8.6%, BBSI +8.5%, BWLD +8%, PNRA +7.8%, RSYS +7.4%, MVIS +7.4%, CLF +7.1%, VIV +6.5%, ATRC +5.9%, FCF +5.5%, WNC +5.1%, NVMI +4.9%, CETV+4.4%, SONS +4.4%, BLDP +4.3%, NUVA +4.1%, (reached a definitive settlement with the US DOJ; co will pay $13.5 mln, plus fees and accrued interest in settlement ), CTXS +3.8%, (Citrix Systems enters into an agreement with Elliott Management Corporation; appoints Elliott's Jesse Cohn to the Board; announces the impending retirement of CEO Mark Templeton; co initiates a CEO search process ), GILD +3.7%, MILL +3.6%, WOOF +3.3%, ACCO +3.1%, AMED +3%, RGR +2.9%, TRU +2.6%, ANTM +2.5%, X +2.4%, GD +2.2%, STRZA +2.2%, BCS +2.1%, STNG +2.1%, MNDO +2.1%, IP +2%, NGD +1.9%, IACI +1.7%, HLT +1.5%, HURN +1.3%, MO +1.2%, NCR +1%, CRI +1%, APC +0.9%, PAG +0.9%

M&A news: CYT +27.6% (Solvay (SVYZY) to acquire Cytec for $75.25 per share in cash)


Other news: NHTC +23.4% (increased quarterly dividend by 33% and authorized $15 mln share repurchase; co also reported earnings), OGEN +19% (announced positive data for multiple compounds from its Mutacin 1140 lantibiotic platform ), MNGA +7% (announces that a major waste to energy company has placed multiple orders), GALE +5.6% (announced the product launch for Zuplenz (ondansetron) Oral Soluble Film in the United States), ARNA +4.9% (initiates a Phase 2 proof-of-concept clinical trial of APD334 in ulcerative colitis), ARIA +2.2% (PDL BioPharma enters into a revenue interest assignment agreement, to provide ARIAD Pharmaceuticals (ARIA) with up to $200 million in financing, in exchange for royalties on Iclusig), STO +1.5% (cont strength)

Analyst comments: SALT +4.5% (upgraded to Buy from Hold at Deutsche Bank), AKS +3.8% (upgraded to Outperform from Neutral at Macquarie ), YRCW +3.6% (upgraded to Strong Buy from Mkt Perform at Raymond James), DDD +2% (upgraded to Neutral from Underperform at Longbow), AMZN +1% (upgraded to Buy from Hold at Stifel), WFC +0.5% (upgraded to Buy from Neutral at Guggenheim
)

>>> Twitter: Color on Qtr ( UBS, GS, ML Note ...Axiom, Pivot, BRean)

Twitter: Color on Qtr 

  • Axiom Capital notes it is maintaining Hold rating on Twitter following the 2Q earnings report. Revenues and EBITDA were above consensus expectations, core MAUs were above flat growth estimate, and full year guidance was raised. The report refuted bearish forecasts that called for a decline in user growth and a possible reduction in guidance. The good news stopped there. On the call management stated that: 1) product enhancements such as Instant Timelines and logout experiences have had little impact on growing audience, 2) engagement (DAU/MAU) declined to 44% from 48% in the prior year, and 3) investors should not expect sustained meaningful growth in MAUs until marketing efforts kick in. No meaningful update on the CEO search was provided but we believe the board should act fast and preferably with someone outside of Twitter.
  • Pivot Research notes TWTR reported solid 2Q15 business trends featuring revenue growth of 63% and adjusted EBITDA margins of 24%, both above guidance. Management's expectations for limited user growth were poorly received by investors, but firm continues to believe that the company's current user base remains more than sufficient for Twitter to continue building out the strong niche. Raises tgt to $42 from $41; reiterates Buy rating.
  • Brean Capital notes Twitter reported a better-than-expected quarter last night, with both revenues and EBITDA substantially beating guidance and consensus estimates. MAU's ex SMS Fast were in line, with the co. highlighting that MAU scale growth will not occur until they do a better job of attracting mass market users and simplifying the product, causing some selling/reversal in the after-market. During the post earnings callback, the company addressed the market misinterpreting long-term MAU commentary, which was about becoming a billion user platform, as short-term guidance. In fact, the company said that they were not guiding for short-term MAU's, but that Q3 MAU's were showing a slight uptick vs. Q2'15 at this point in the quarter. Reiterating Buy rating.
Shares of TWTR hit an all time low in after hours ($31.39) but have bounced back to $33.

>>> Hess beats by $0.20, beats on revs

Hess beats by $0.20, beats on revs

Reports Q2 (Jun) loss of $0.52 per share, $0.20 better than the Capital IQ Consensus Estimate of ($0.72). Co reported revenues of $1.936 bln may not compare to $1.635 bln
  • Oil and gas production increased to 391,000 barrels of oil equivalent per day compared to 319,000 boepd in the second quarter of 2014. Capital and exploratory expenditures totaled $1.1 billion in the second quarter down from $1.3 billion in the prior-year quarter

>>> Hospira beats by $0.05, reports revs in-line

Hospira beats by $0.05, reports revs in-line

Reports Q2 (Jun) earnings of $0.85 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.80; revenues rose 4.2% year/year to $1.18 bln vs the $1.18 bln consensus.
  • Given the announcement early in Q1 that Hospira and Pfizer (PFE) had entered into a merger agreement, the company is not providing annual projections for 2015.
  • "Hospira continues to see good momentum across our product lines, resulting in strong sales and profitability in the first half of the year...Complementing our strong financial performance is our continued progress on many fronts, including new generic injectable product launches, advancements in our on-market biosimilars and related pipeline, and execution of our Device Strategy."

>>> Humana beats by $0.04; guides Q3 EPS in-line; reaffirms FY15 EPS guidance; a

Humana beats by $0.04; guides Q3 EPS in-line; reaffirms FY15 EPS guidance; as previously announced, being acquired by AET

Reports Q2 (Jun) earnings of $1.67 per share, $0.04 better than the Capital IQ Consensus Estimate of $1.63.
  • Co issues in-line guidance for Q3, sees EPS of $2.15 vs. $2.16 Capital IQ Consensus Estimate.
  • Co reaffirms guidance for FY15, sees EPS of $7.75 vs. $7.77 Capital IQ Consensus Estimate.
  • On July 3, 2015, the company announced it entered into a definitive agreement with Aetna Inc. (AET) under which Aetna will acquire all outstanding shares of Humana for a combination of cash and stock. Under terms of the agreement, Humana stockholders will receive $125 in cash and 0.8375 of an Aetna common share for each Humana share.

>>> Early premarket gappers

Early premarket gappers
Gapping up: CYT +25.9%, NHTC +21.1%, STLY +19.8%, OGEN +19%, RUBI +17.1%, NGD +17%, CALX +14.3%, AIZ +9.6%, BWLD +9.5%, BBSI +8.5%, PNRA +7.9%, RSYS +7.4%, ATRC +5.9%, WNC +5.1%, CETV +4.9%, CTXS +4.8%, BLDP +4.3%, NUVA +4.1%, GILD +4%, ACCO +3.1%, AMED +3%, RGR +2.9%, TRU +2.6%, STO +2.5%, ANTM +2.4%, BCS+2.1%, GG +1.7%, AKS +1.7%, IACI +1.7%, ESRX +1.6%, HLT +1.5%, MO +1.5%, PYPL +1.3%, HURN +1.3%, AMZN +1%, NCR +1%, APC +0.9%

Gapping down: YELP -20.3%, SFY -13.7%, VDSI -10.1%, GIGA -9.8%, TWTR -9.2%, AKAM -7.7%, ZGNX -5.7%, BBOX -5.1%, CG -3.9%, IPHI -3.1%, RRC -2.8%, SLCA -2.4%, X -2.4%, PPP -2.2%, AFL -2.1%, MT -1.8%, CRI -1.8%, HA -1.7%, CBZ -1.4%, GIB -1.2%, RIG -1.1%, Q -1%, SPWR -0.5%

>>> General Dynamics beats by $0.22, beats on revs; Raises FY15 EPS guidance abo

General Dynamics beats by $0.22, beats on revs; Raises FY15 EPS guidance above consensus

Reports Q2 (Jun) earnings of $2.27 per share, $0.22 better than the Capital IQ Consensus Estimate of $2.05; revenues rose 5.5% year/year to $7.88 bln vs the $7.68 bln consensus. Co issues upside guidance for FY15, sees EPS of $8.70-8.80 vs. $8.61 Capital IQ Consensus Estimate.

Backlog
General Dynamics' backlog remained steady at the end of second-quarter 2015, with funded backlog at $55.4 billion and total backlog of $70 billion. Aerospace backlog increased by seven percent in the quarter, with strong order activity across the product line. Information Systems and Technology also had several notable orders in the quarter leading to higher backlog. Estimated potential contract value, representing management's estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $25.6 billion. Total potential contract value, the sum of all backlog components, was $95.6 billion at the end of the quarter.

>>> CNH Industrial misses by $0.06, misses on revs; reaffirms sales, lower margi

--> -4%

CNH Industrial misses by $0.06, misses on revs; reaffirms sales, lower margin guidance (
Reports Q2 (Jun) adj. earnings of $0.11 per share, €0.06 worse than the Capital IQ Consensus of $0.17; revenues fell 21.9% year/year to $6.96 bln vs the $7.48 bln consensus.
  • Full year guidance updated as follows: net sales of Industrial Activities in the range of $26-27 billion, with operating margin of Industrial Activities between 5.6% and 6.0% (from 6.1-6.4%) and net industrial debt at the end of 2015 between $2.0 billion and $2.2 billion.