FMC Technologies (FTI +5.6%) trades just shy of 52-week highs after Q1 earnings and revenues beat expectations.
Subsea technologies achieved a record backlog in the quarter, totaling $1.9B of FMC's total inbound orders of $2.6B; total company backlog stands at $7.8B, including subsea technologies backlog of $6.8B.
Revenues in the surface technologies segment were $479.5M, up 14% Y/Y, driven by volume growth in the international surface wellhead and North American fluid control businesses.
Sees FY 2014 EPS of $2.55-$2.75 vs. analyst consensus estimate of $2.65.
A day after getting crushed thanks to a Q1 miss, Medidata (MDSO +4.8%) is higher following an upgrade to Buy from B. Riley. The firm's PT is $49.
In spite of the Q1 miss, Medidata reiterated its full-year outlook on yesterday's CC (transcript), and also reported billings rose 43% Y/Y to $90M (exceeded revenue of $76.6M, +21% Y/Y). Analysts pressed the company on platform deal activity, services margin pressure, and the demand environment among biotech clients.
Nabors Industries (NBR +2.3%) marches higher despite reporting Q1 earnings that were cut in half from the previous year, as weather-related interruptions in its completion services segment overshadowed an otherwise solid performance by its drilling operations.
The weather impact was concentrated in completion services operations, which posted a $33.6M loss; the results also were affected by the expiration of a significant long-term contract.
CEO Anthony Petrello said market activity and pricing are strengthening, as higher than expected customer cash flows and moderating rig productivity are translating into incremental rig demand.
Argus lowers its FY 2014 EPS estimate, expecting the next two quarters to be challenging for NBR due to the launch of new rigs by competitors, but the firm sees earnings growing over the longer term and recommends the stock for investors with a time horizon of six months or longer (Briefing.com).
NuStar Energy (NS +0.9%) reports a mixed Q1 earnings picture but says Q1 distributable cash flow from continuing operations available to limited partners was $1/unit, vs. $0.73/unit DCF in the year-ago quarter; EBITDA from continuing operations was $126.7M vs. $94.1M a year ago.
Expects Q2 EPU and EBITDA results and coverage ratio to exceed year-ago results; sees higher EBITDA in its pipeline and fuels marketing segments due to increased pipeline throughputs and improved results in bunkering operations.
Backs FY 2014 pipeline segment EBITDA $40M-$60M higher than 2013, and expects to start covering distributions in H2 and for FY 2014.
Following a Q1 revenue beat, EMC has slightly upped its full-year revenue guidance to $24.575B from a prior $24.5B. But EPS guidance has been lowered by $0.05 to $1.90. The consensus is at $24.51B and $1.94.
After rising 11% Y/Y in Q4, product revenue fell 3% in Q1 to $3.01B. Services revenue (driven by product revenue) rose 9% to $2.47B, after growing 10% in Q4.
EMC's core Information Storage ops (67% of revenue) saw sales fall 3% Y/Y (product sales -7%) after growing 10% in Q4, thanks largely to a 22% drop in high-end storage sales (a high-margin business) to $940M. Unified storage and backup/recovery sales +4% to $1.44B, other storage -12% to $830M.
Emerging Storage (inc. Atmos, Isilon, and flash storage) remains a bright spot, with sales growing 81% to $81% to $470M. RSA Security +5% to $244M, Pivotal (still waiting for its IPO) +41% to $49M.
North American sales were flat at $2.99B, and EMEA grew 8% to $1.59B. But Asia-Pac fell 2% to $720M, and Latin America 11% to $180M.
Gross margin -30 bps Y/Y to 62.8%, higher SG&A spend contributed to a 270 bps drop in op. margin to 20.5%. $390M was spent on buybacks in Q1; EMC still expects to repurchase $2B worth of shares in 2014.
EMC is off thanks to its EPS guidance cut and VMware's (VMW -6.8%) soft bookings. VMware blames delays in closing enterprise license agreements (ELAs) as it holds "deeper conversations" about expanded deals.
Dow Chemical (DOW) +2.3% premarket after Q1 earnings rose 65% Y/Y, beating estimates, on a slight revenue rise and a boost from lower costs.
DOW says adjusted EBITDA margin expanded more than 60 bps Y/Y to 16.6%, with increases in all operating segments except feedstocks and energy; margins grew despite a $300M-plus increase in purchased feedstocks and energy, due to continued emphasis on productivity and cost-control actions.
Sales in DOW's performance plastics segment gained 3%, largely due to price increases; excluding the impact of divestitures, the growth was 6%.
Sales breakdown: automotive +11% to $5.62B, building efficiency -5.2% to $3.3B, power solutions flat at $1.6B.
Johnson Controls updates its guidance to account for the sale of its Automotive Electronics unit. Expects FY EPS from continuing ops of $3.10-3.18 vs $3.15-3.30 prior and consensus of $3.24. Forecasts Q3 EPS of $0.81-0.84 vs consensus of $0.86.
Johnson Controls reiterates that it expects FY free cash flow of $1.6B and to improve margins in all three of its businesses.