Green Mountain hits the heights on Coke partnership. Green Mountain's (GMCR) shares soared 45% premarket on news that Coca Cola (KO) will acquire a 10% holding in Green Mountain for $1.25B as part of a 10-year partnership in which it will exclusively sell Coke-branded pods for use with the upcoming Keurig Cold single-serve beverage system. The machine will make "carbonated drinks, enhanced waters, juice drinks, sports drinks and teas." While Green Mountain's shares soared, those of Soda Stream (SODA) fell 1.9%.
Sony swings to profit; to sell PC ops, spin off TV business. Sony (SNE) swung to a net profit of ¥27B ($257M) in FQ3 from a loss of ¥10.8B a year earlier as revenue rose to ¥2.41T from ¥1.95T. However, the company surprisingly forecast a fiscal-year loss of ¥110B due to a major restructuring. Sony intends to spin off its flagship, but loss-making, TV business into a separate wholly owned unit, and to sell its struggling Vaio PC operations to restructuring specialists Japan Industrial Partners. In addition, Sony intends to cut 5,000 jobs.
Twitter sinks after Timeline views drop. Twitter's (TWTR) Q4 earnings beat Street predictions but shares plummeted 18.9% premarket after Timeline views fell 7% on quarter to 148B. On the earnings call, CEO Dick Costolo admitted that Twitter needs to become easier for new users to grasp, although he also said that Timeline views are an incomplete picture of engagement. Twitter made an adjusted profit of $9.7M in Q4 vs a loss of $271,000 a year earlier, EPS was $0.02, and revenue more than doubled to $242.7M.
Top Stock News
Disney's profit soars 33% as "Frozen" heats up Studio revs. Disney's (DIS) FQ1 net profit jumped 33% to $1.84B as earnings surpassed expectations, with EPS coming in at $1.04 and revenue climbing 8.6% to $12.31B. Sales grew solidly across Disney's different divisions, while close to half of the company's profit was derived from Media Networks, led by ESPN once again. The films "Frozen" and "Thor: The Dark World" helped studio revenue leap 23% to $1.89B. Shares were +3.4% premarket.
AstraZeneca profit hit by patent expirations. AstraZeneca's (AZN) Q4 core EPS dropped 28% to $1.23 but beat consensus as revenue slipped 4% to $6.84B and topped forecasts. Adjusted profit fell 26% to $1.98B, with AstraZeneca's earnings dragged down by patent expirations on key drugs. The loss of IP protection will continue to hurt the company, and it forecasts that 2014 revenue will decline by a low-to-mid single-digit percentage and that EPS will decline "in the teens." Shares were -3.6% premarket.
Sanofi profit jumps to €1.81B but revenue falls. Sanofi's (SNY) Q4 adjusted, or "business net profit" rose 17% to €1.81B but was slightly below consensus of €1.82B, while net sales dropped 0.8% to €8.46B. Earnings were boosted by a double-digit increase in sales of Lantus, Sanofi's blockbuster diabetes drug, revenue growth at its Genzyme rare-diseases unit, and a gradual recovery in Brazil and China. Cost cuts also helped. However, falling sales from Sanofi's vaccines and animal health units, and currency fluctuations, hurt the firm's performance. Shares were -1.45% premarket.
Vodafone FQ3 revenues fall but top consensus. Vodafone's (VOD) FQ3 sales dropped 3.6% to £10.98B but beat forecasts of £10.86B ($17.91B). Organic group service revenue fell 4.8%, with Europe tumbling 9.6%. Vodafone's performance was hurt by price competition in Germany and the U.K., as well as by weak southern European markets. However, the company said "the shift to 4G is gaining momentum," so it's optimistic that its "revenue performance will begin to improve." Shares were +2.9% in London.
Credit Suisse Q4 almost flat, misses forecasts. Credit Suisse's (CS) Q4 net profit edged up to 267M Swiss francs ($296M) from 263M francs a year earlier, but came in well below consensus of 448M francs. Earnings were kept down by provisions of 339M francs over mortgage litigation at its investment bank and 175M francs for a U.S. investigation into offshore accounts in Switzerland. However, core pretax income climbed 11% to 1.32B, while Credit Suisse's return on equity was 9%. Shares were -1.8% premarket.
Green Mountain net income rises 28%. Almost lost in the fizz over the deal with Coca Cola (KO), Green Mountain Coffee Roasters (GMCR) reported yesterday that FQ1 net profit jumped 28% to $138.2M. Adjusted EPS was $0.96 and exceeded analyst projections, while revenue rose 3% to $1.38B but undershot forecasts. Pack sales increased 8% to $931M and helped to offset a dip in brewer and accessories revenue. Green Mountain expects sales growth in the high single digits in FY14.
Top Economic & Other News
One in six men in prime working age don't have jobs. The WSJ profiles men in their prime working years of 25-54 who don't have jobs. The proportion is around 17%, or 10M people, which compares with 6% in the early 1970s, 13% in 2007 and 20% in 2009. One reason for the trend is the slow recovery from the recession, but another, economists say, is that many people are unable to keep up with the way technology and globalization are changing the labor market. A further problem is that many jobs that are available don't pay enough for men to take them.
Top Ideas: Movers and Great Calls
1) On Friday, Matt Gravitt cited numerous red flags at Galena Biopharma (GALE) in a detailed, heavily read and highly-commented article. Shares are -21.4% since. Read article »
2) Weighing Machine called out the operational turnaround at disposable medical supply manufacturer Medical Action Industries (MDCI) back in early November; after a huge earnings beat yesterday, the stock is +39% to date. Read article »
Top Ideas To Watch
1) Shares of chip vendor Ambarella (AMBA) fell sharply yesterday in the wake of tech expert Ashraf Eassa's short call on the stock on Tuesday, when he argued that a strong bull run had moved shares from undervalued to overvalued. Read article »
2) Natural-gas fueling provider Clean Energy Fuels (CLNE) declined as well, as contributor Upside showed that the company's leveraged bet on liquefied natural gas is facing significant headwinds amidst a changing market. Read article »
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In Asia, Japan -0.2% to 14155. Hong Kong +0.7% to 21423. China closed. India flat at 20267.
In Europe, at midday, London +0.8%. Paris +1.2%. Frankfurt +1.1%.
Futures at 6:20: Dow +0.45%. S&P +0.5%. Nasdaq +0.5%. Crude +0.4% to $97.80. Gold +0.1% to $1258.60.
Ten-year Treasury Yield flat at 2.68%
Today's economic calendar:
Chain Store Sales
7:30 Challenger Job-Cut Report
8:30 International Trade
8:30 Initial Jobless Claims
8:30 Productivity and Costs
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
Notable earnings before today's open: AAP, ADS, AET, AINV, ALR, AMAG, AMSC, AOL, AZN, BCE, BDC, BR, CFX, CMI, CS, CSL, DNKN, DO, EXC, FLO, FOXA, GBDC, GM, GPK, HCLP,HERO, HLSS, INGR, IT, K, KKR, MDSO, MMS, MNK, MPW, MSCI, MWIV, MWW, NBL, NGD, NILE, NJR, NU, NUS, NVDQ, NYT, ODFL, OZM, PENN, PPL,PRGO, PTEN, RFP, RSTI, SALE, SBH, SEE, SIAL, SMG, SNA, SNE, SPH, SPR, TDC, TEVA, TW, USG, VMC, WEC
Notable earnings after today's close: AAN, ACET, ADNC, AIV, ASYS, ATHN, ATVI, AVNW, BEBE, BKH, BRKS, BYI, CATM, DCT, ECHO, ECOM, EGOV, ELON, ENH, EXPE, FET, FTI, FWM, G, HME,IMPV, LCI, LGF, LNKD, LSCC, MITK, NBIX, NCR, NFG, NTGR, NUAN, ONNN, OPEN, OUTR, PDM, PM, RSG, SREV, THRX, TPX, UBNT, VRSN, WWWW
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