>>> Verizon misses by $0.02, reports revs in-line

Verizon misses by $0.02, reports revs in-line

Reports Q3 (Sep) earnings of $0.89 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.91; revenues rose 4.3% year/year to $31.59 bln vs the $31.59 bln consensus.
  • Wireless Highlights: Added 1.53 million net retail connections; retail postpaid churn of 1.00%; 106.2 mln total retail connections; 100.1 mln total retail postpaid connections. Saw a 4.8% YoY increase in service revenues and a 4.6% YoY increase in retail service revenues; 31.9% operating margin; 49.5% segment EBITDA margin.
  • Wireline Highlights: Saw a 4.5% YoY increase in consumer revenues, the ninth consecutive quarter of more than 4% growth; consumer ARPU (average revenue per user) up 10.3%. Saw a 13.4% increase in FiOS revenues; 162,000 FiOS Internet and 114,000 FiOS Video net additions.
  • "We have great confidence heading into the fourth quarter, as Verizon continues to deliver consistently strong operating and financial results. We see continued, healthy customer demand for wireless and broadband services, and we are encouraged by the growth we are starting to see in the areas of video delivery and machine-to-machine. Our cash generation remains strong, and last month we were pleased to announce board approval of a quarterly dividend increase for the eighth consecutive year."

>>> Graphic Packaging misses by $0.03, misses on revs; adjusted EBITDA increased

Graphic Packaging misses by $0.03, misses on revs; adjusted EBITDA increased 8.8% y/y to $190.6 mln

Reports Q3 (Sep) earnings of $0.17 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus Estimate of $0.20; revenues fell 9.7% year/year to $1.05 bln vs the $1.07 bln consensus.
  • Q3 Adjusted EBITDA increased to $190.6 mln vs $175.2 mln in the prior year.
  • Q3 Adjusted EBITDA margin was 18.2% vs 15.1% in the prior year.

>> Lockheed Martin beats by $0.05, misses on revs; guides FY14 ~in-line; FY15 sa

Lockheed Martin beats by $0.05, misses on revs; guides FY14 ~in-line; FY15 sales above estimates

Reports Q3 (Sep) earnings of $2.76 per share, $0.05 better than the Capital IQ Consensus Estimate of $2.71; revenues fell 2.1% year/year to $11.11 bln vs the $11.27 bln consensus.

Co issues in-line guidance for FY14, raises EPS to ~$11.15 from $10.85-11.15 vs. $11.12 Capital IQ Consensus; sees FY14 revs of ~$45 bln from $44-45.5 bln vs. $44.82 bln Capital IQ Consensus.

The Corporation expects 2015 net sales will decline at a low single digit rate from 2014 levels (consensus at $44.5 bln) and that total business segment operating margin will be in the 11.5 percent to 12.0 percent range. The Corporation's preliminary outlook for 2015 assumes the U.S. Government continues to support and fund its key programs, consistent with the continuing resolution funding measure through Dec. 11, 2014, and the U.S. Government approves budget legislation for government fiscal year (GFY) 2015 consistent with the President's proposed budget.

>>> US Early premarket gappers

Early premarket gappers
Gapping up: ILMN +8.2%, WERN +4.6%, CE +4.5%, HLX +3.6%, RCL +2.4%, NXPI +2.3%, ING +2.3%, MT +2.3%, DANG +2%, AAPL +2%, MU +1.9%, STLD +1.9%, TSL +1.7%, MBLY +1.6%, RFMD +1.5%, BP +1.5%, AG +1.5%, DB +1.5%, UTX +1.5%, ABBV +1.4%, MGM +1.4%, AOS +1.4%, AOS +1.4%, CCL +1.3%, TXN +1.3%, CDNS +1.1%, CDNS +1.1%, BRCM +1%, MPW +1%,ELS +0.9%,

Gapping down: RNO -38.6%, IBIO -20.6%, CVM -16.5%, PBR -8.4%, GLF -8%, RMBS -6.9%, KALU -6.8%, UCTT -6.3%, ARMH -5.8%, PT -5.5%, CMG -4.3%, PKG -2.5%, TRN -2.4%, XRS -1.8%, ENTA -1.7%, CYS -1.6%, REN -1.4%, GSK -1.3%, PHG -1%, IHG -1%, ZION -0.9%, BRO -0.9%, IBM -0.8%

>>> ROBIN HOOD WRAP Day 1: Einhorn Long SUNE, Chanos Short Petrobras

ROBIN HOOD WRAP Day 1: Einhorn Long SUNE, Chanos Short Petrobras
Below is a recap of long, short ideas given on 1st day of Robin Hood conf in NYC. Day 2 of Robin Hood starts at 8:10am with presentation by Glenview’s Larry Robbins.
  • Einhorn: reiterates long SunEdison, says long TerraForm; says he owns warrants on Greek banks Alpha Bank, Piraeus Bank SA; betting on declines in French sovereign debt
    • Link to Bloomberg News story
  • Nikolayevsky: recommends long Ezcorp
  • Chanos: recommends shorting Petrobras
    • Link to Bloomberg News story
  • Tudor Jones: Paul Tudor Jones Said to See U.S. Stocks Beating Globe in 2014
  • Astenbeck’s Hall: Astenbeck’s Hall Said to Forecast Oil Prices Remaining Depressed
  • Knighthead’s Wagner: American Airlines ‘Attractive Investment,’ Wagner Says
  • Union Square’s Fred Wilson: Union Square’s Wilson Said to Recommend Shorting Netflix, EBay

(HSBC)Global Chemical : How to survive the fall? Buy Growth at low cost

What do chemical investors care about?
* In this report we investigate in some detail the key issues raised by investors. These are mainly focused
on the prospects for growth in 2015, both organic and via acquisitions, the impact of alternative
production technologies and capacity growth, as well as the impact of the falling oil price, leading to the
risk of destocking.
Growth is slowing
With little acceleration in global GDP growth in 2015, coupled with geopolitical tensions, we expect
underlying chemical output to average around 2-3% in 2015. This will be higher for those companies
exposed to developing Asian economies or those adding capacity.
Falling oil price = destocking?
One of the biggest surprises of the summer has been the sharp collapse in the oil price. For the chemical
industry, the falling oil price should lead to destocking as customers run down inventories. We show that
inventories through the chemical chain are relatively low compared to history and that current chemical
prices are in line with the oil price given the historic relationship. In our view, when a destocking period
comes, it may not be as severe as in Q4 2011.
Does alternative production technology really pose a risk?
The threat of oversupply is something the chemical sector has been living with for the last two years.
In petrochemicals we are seeing more focus on alternative technologies such as coal-to-chemicals,
propane dehydrogenation, on-purpose butadiene as well as naphtha crackers using more ethane feedstock.
The chemical feedstock slate has become more complex over the last six years and in this report we look
at some of the key issues around feedstocks and alternative technologies to understand the potential
impact on all chemical producers.
Turning on a sixpence
As we have seen with the sector in past, the outlook can change very quickly. To become more
constructive we would need to see a pick-up in global growth, a recovery in the oil price, the phasing of
supply to be pushed further out or the alternative technologies to have ramping-up or yield problems.
In this scenario, unit costs would fall, boosting margins across the chemical industry.
Where to invest?
With limited visibility over the demand outlook for the next 12-18 months, we believe investors should
look for those companies that continue to see growth either through exposure to end-markets or capacity