Today - Tuesday, June 2, 2015
- Ten environmental groups today filed suit at the San Francisco-based 9th U.S. Circuit Court of Appeals against the U.S. government to overturn the approval of Royal Dutch Shell's (RDS.A, RDS.B) plan for Arctic offshore drilling.
- The Bureau of Ocean Energy Management last month signed off on Shell's exploratory drilling plan in the Chukchi Sea, which calls for two drill rigs and a support flotilla that includes spill response vessels.
- The environmental groups say federal regulators' review of the Shell drilling plan was cursory; Shell says its plans are arguably the most scrutinized in North American history after pursuing exploratory drilling off Alaska for eight years.
- After a few months of talks, News Corp. (NWS, NWSA) and Twenty-First Century Fox (FOX, FOXA) have reached a deal to move into a joint headquarters at the World Trade Center site.
- The two will set up in a new 99-story skyscraper, 2 World Trade Center, to be built at 200 Greenwich St.
- It's the fourth and last tower planned for the site, and the News Corp./Fox space would include TV studios at the base, along with newsrooms and office space for employees across both companies' businesses.
- The move will put a button on a transformation of lower Manhattan over the past decade, as information, media and tech companies have set up there, including Condé Nast, The Daily News, Time Inc. and others.
- Chevron Phillips Chemical, the joint venture of Chevron (NYSE:CVX) and Phillips 66 (NYSE:PSX), says it is considering a second “megaproject” in the U.S. that would take advantage of low natural gas prices for making plastics and other materials.
- JV CEO Peter Cella says the company is on schedule to begin producing ethylene in mid-2017 at its $6B project near Houston, and he is looking globally for a place to build the next ethylene and derivatives plants, given the multiyear timeline to complete major projects.
- Plants that use low cost gas from shale formations will help U.S. production of basic chemicals increase for the next four years, starting with a 3.1% rise this year and peaking at 6% in 2018, according to the American Chemistry Council; Cella made his remarks at today's annual meeting of the group.
- A day after Boris Teksler officially took over as CEO, Unwired Planet (NASDAQ:UPIP) states it has given Teksler options to buy 5.05M shares; that's equal to nearly 5% of UPIP's current share count.
- The options sport an exercise price of $0.6797 (matching yesterday's close), and will expire in 10 years. A third of the options will vest after one year, and the rest in quarterly installments over the following two years.
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- Though it beat FQ3 revenue estimates (while missing on EPS), Guidewire (NYSE:GWRE) forecasts FQ4 revenue of $119.3M-$123.3M, below a $123.6M consensus. A strong dollar is expected to have a $10M impact. EPS guidance of $0.23-$0.28 is in-line with a $0.25 consensus.
- Business performance: FQ3 license revenue +4% Y/Y to $33.3M; maintenance revenue +17% to $12.2M; services +1% to $40M. Rolling 4-quarter term license/maintenance revenue +26% to $208.9M. Guidewire expects 20% or greater FY16 (ends July '16) term license revenue growth.
- Financials: GAAP operating expenses +19% Y/Y to $54.2M - R&D spend totaled $24.6M, sales/marketing $18.8M, and G&A $10.9M. The deferred revenue balance rose 9% Y/Y to $63.8M. Guidewire ended FQ1 with $550M in cash/short-term investments, and no debt.
- GWRE -1% AH to $46.95.
- FQ3 results, PR
- Disney's (NYSE:DIS) latest line of toys marks a change from the status quo, as the company has designed them in-house rather than merely licensing out its media properties.
- The activity-oriented Playmation line features a package of high-tech wearables (and is initially centered on Marvel's Avengers, including an Iron Man glove).
- They're not Uncle Walt's playsets, though, using infrared, Bluetooth and motion sensors to operate together, with those from other children as well as action figures which will interact with the wearables. A companion app offers extra "missions," but no screens are required for play.
- The sets are up for pre-order in July and go on sale in October starting at $120. "Hulk Hands" will follow in November.
- Annual sales are being projected at $500M just from the Avengers-themed line, and surpassing $1B as it's expanded to Disney's other brands (get ready for Star Wars and Frozen Playmation toys coming over the next two years).
- Partner Hasbro (NASDAQ:HAS) will make and distribute the line for Disney.
- Chevron (NYSE:CVX) pays a ~$940K fine for a fatal 2014 explosion at one its Pennsylvania gas wells that state regulators say may be the largest amount paid for a single incident.
- The state's Department of Environmental Regulation says CVX supervisors at the well site were preoccupied with paperwork and did not properly oversee the work done by Cameron International (NYSE:CAM) contractors, one of whom was killed when natural gas escaping from a well exploded.
- CVX paid a reported $5M to the deceased man's family to settle their wrongful death lawsuit.
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- Affimed (NASDAQ:AFMD) initiated with Outperform rating and $14 (26% upside) price target by Oppenheimer.
- Prothena (NASDAQ:PRTA) initiated with Buy rating and $58 (36% upside) price target by UBS.
- ATyr Pharma (Pending:LIFE) initiated with Overweight rating by JP Morgan.
- Adaptimmune (Pending:ADAP) initiated with Outperform rating by Cowen & Co.
- CoLucid Pharmaceuticals (Pending:CLCD) initiated with Buy rating and $15 (63% upside) price target by Stifel Nicolaus.
- Collegium Pharmaceuticals (Pending:COLL) initiated with Buy rating and $20 (14% upside) price target by Jefferies.
- Fate Therapeutics (NASDAQ:FATE) initiated with Outperform rating and $10 (67% upside) price target by Leerink Swann.
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- Globalstar (NYSEMKT:GSAT) finished up 4.5% today, recovering some ground from yesterday's 13% decline on Microsoft's opposition to its Terrestrial Low Power Service petitions.
- The company today says it's hired Yippy (OTCPK:YIPI), a tiny cloud-services provider, to provide private cloud services via Globalstar's satellite network.
- The two will build a solution using Yippy's EASE 360 platform, with an end goal of "more closely aligning the user's satellite experience with terrestrial applications," says Globalstar CEO Jay Monroe.
- Guess (NYSE:GES) reports North American retail store comps fell 3.8% in Q1.
- Segment revenue: Europe -14% to $137.4M, North America Retail -6% to $214.25M Asia -9% to $64.04M, North American Wholesale -13% to $37.28M, Licensing +1% to $25.87M.
- Operating margin by segment: Europe -2.7%, North America Retail -3.4%, Asia +7.2%, North American Wholesale 18.1%, Licensing 89.0%.
- Store count -30 Y/Y to 1,667.
- Guidance: Fossil expects full-year EPS of $0.80-$1.02 vs $0.75-$0.95 prior and $0.87 consensus.
- Previously: Guess beats by $0.09, misses on revenue
- GES -0.3% after hours.
- Stocks tipped slightly lower late in today's session, failing to hold early gains as investors remained cautious ahead of Friday's jobs report and a looming deadline for Greece and its lenders to find a solution to the debt crisis.
- The energy sector (+0.5%) outperformed, supported by a 1.7% rally in crude oil and a 1.5% decline in the Dollar Index.
- Utilities were far and away the day's worst performing group (-1.3%) after long-dated U.S. Treasury debt yields rose to two-week highs.
- Treasury prices fell throughout the day, with the benchmark 10-year note settling just above its worst level of the day, with its yield gaining 8 bps at 2.26%.
- Investor participation totaled only 712M shares changing hands at the NYSE floor, but it was a slight improvement from yesterday.
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