Today - Tuesday, December 10, 2013
7:56 AMAnalysis: WhiteWave Foods on right track with acquisition strategy
- Stifel Nicolaus weighs in on Buy-rated WhiteWave Foods (WWAV) after the company snapped up Earthbound Farms for a cool $600M.
- The investment firm sees $0.07 EPS accretion by 2014 from the merger with most of the synergies from the slightly disparate business coming from the back office.
- WhiteWave will continue on a path of "disciplined" acquisitions to boost top-line growth, says Stifel.
7:48 AMVolkswagen reports 3% rise in global sales for November| Comment!
7:40 AMFifth & Pacific sells Lucky
- Fifth & Pacific (FNP) announces it struck an agreement to sell Lucky Brand Jeans to P-E firm Leonard Green for $225M.
- The deal price reps a multiple of 7X trailing 12 months EBITDA for the brand.
- The retailer divested its Juicy Couture business in October and a sale of Lucky Brand has been widely expected.
7:18 AMLululemon higher after settling on new CEO
- Shares of Lululemon (LULU) gain in premarket trading after the retailer finally names a new CEO.
- The quick analyst take on the new hire is that the company has a no-nonsense exec that can rapidly guide a retailer viewed as foundering a bit.
- The loss of Chip Wilson as the Chairman could also be a case of addition by subtraction due to the distraction of his critique of customers' bodies.
- LULU +2.9% premarket.
7:11 AMPositive read on China auto demand| Comment!
7:09 AMNokia's Indian tax bill could reach $3.4B
- Nokia's (NOK) tax bill in India could hit $3.4B, a government official says, far higher than the $340M that has been at the center of a dispute so far.
- India has frozen Nokia assets in the country to ensure the company has enough money to pay the smaller bill, although the firm has gone to court to defend itself.
- Nokia needs access to the assets by Thursday so that it can complete the sale of its handset unit to Microsoft (MSFT), and it has set aside $350M for the purpose.
7:03 AMAnn backed by SunTrust to outperform
- Suntrust Robinson Humphrey reiterates a Buy rating after meeting with management from Ann (ANN) yesterday.
- The retailer appears to be clicking this holiday season with an on-trend assortment and a successful promotional strategy.
- A relatively clean inventory position indicates execs managed the weak traffic flow in malls during Black Friday well.
- A key point: SunTrust thinks Q4 margin guidance from Ann might end up being light as e-commerce contributes and promotions ease.
6:56 AMThe IATA forecasts strong growth in passenger demand
- The IATA forecasts airlines will see the total number of passengers served rise by 31% to 3.91B by 2017.
- The biggest increase in demand will be in the Middle East and Asia-Pacific regions.
- The U.S. will still have the largest domestic market by 2017, but China will narrow the gap as capacity increases significantly.
- Related stocks: AAL, UAL, DAL, RYAAY, CPCAY, SINGY, CEA, ZNH, CPA, GOL, LFL, DLAKF, AIDIF, QUBSF, JBLU, RJET, SAVE, ALK, HA, AIRYY, MLYAF, AFLYY.
4:19 AMGM continues to vacillate over Aussie ops
- GM (GM) hasn't yet decided whether to end production in Australia after 2016, the carmaker said today as it kept up the pressure on the country's government to provide more aid to the industry.
- The comments are in contrast to a report on Sunday that said that GM planned to halt manufacturing in Australia, where the company has been hit by the strong Aussie dollar.
- The government isn't best pleased and has repeatedly called on GM to clarify its plans.
- The fear is that if GM follows Ford in stopping production in Australia, Toyota also will, which could lead to the collapse of a sector that supports over 40,000 workers and 150 supplier companies.
3:17 AMLululemon appoints CEO; founder to step down as Chairman
- Lululemon Athletica (LULU) has named Laurent Potdevin as CEO to replace Christine Day, who said in June that she would leave the clothing retailer once it found a successor for her.
- Potdevin was most recently President of TOMS Shoes, while he has also worked at Burton Snowboards and LVMH.
- In addition, founder Dennis "Chip" Wilson is resigning as Chairman and is being replaced by Michael Casey, a former executive at Starbucks and the lead director on Lululemon's board.
- Wilson's departure comes after he caused a storm last month by saying that Lululemon's products were wrong for certain body shapes. (PR)
Monday, December 9, 2013
6:58 PMAvan Projects acquires controlling interest in Papa John's Indian franchisee| Comment!
5:50 PMPep Boys -12.4% AH on weaker-than-expected FQ3
- Pep Boys (PBY) shares plunge 12.4% in AH trading after the company missed expectations in FQ3.
- Revenue fell 0.5% Y/Y to $507M on the back of a 2.8% comparable sales decline (made up of a 0.5% service revenue increase and 3.6% merchandise decrease).
- CEO Mike Odell observed, "As the weather has turned colder, tire sales have started to improve, with mid-level price points and branded tires leading the way. Competitive pressures, however, continue to challenge sales of lower price point tires." The performance of 18 recently-acquired Service & Tire Centers in California "has been ahead of original projections," he added.
- Conference call at 8:30am ET tomorrow, PR
4:28 PMPVH -2.7% AH following Q3 beat, light FQ4 guidance
- PVH shares are down 2.7% AH following a FQ3 beat but ligher-than-expected FQ4 guidance.
- Revenue expanded 38% Y/Y to $2.26B, principally on the back of a $503M in revenue from the acquisition of Warnaco. The Tommy Hilfiger unit generated revenue growth of 10%, or $87M and pre-acquisition Calvin Klein businesses 19%, or $55M, partially offset by a 6% decrease, or $29M, in Heritage Brands.
- Calvin Klein comps jumped 3% Y/Y in North America but fell 1% internationally in FQ3. Tommy Hilfiger comps rose 3% in N.A. and 4% in Europe. Heritage Brands comps declined 3%.
- Management guides for Q4 EPS of $1.40-$1.60 (vs. analyst consensus of $1.54) and revenue of $2.08B (vs. $2.14B).
- Conference call at 9am ET tomorrow, PR
4:27 PMTreasury confirms GM exit, shares +1% AH
- The Treasury department confirms it has sold its remaining 31.1M GM shares. The department says it recouped $39B from its original investment.
- The sale will put an end to restrictions on executive pay, and could pave the way for dividend/buyback announcements.
- Previous: GM gains as Treasury exit could be imminent
3:45 PMBob Evans fires back at Sandell
- Management with Bob Evans Farms (BOBE +1.2%) contends the company undertook a detailed analysis of the suggested moves put forth by Sandell Asset Management before concluding they weren't in the best interest of shareholders.
- A plan to sell and then lease back properties would limit the restaurant chain's ability to be financially flexible.
- The company also reiterates that recent investments should pay off in the near future with margin expansion.