Today - Monday, August 3, 2015
- Lexicon Pharmaceuticals (NASDAQ:LXRX) is up 19% premarket on increased volume in response to its announcement that its Phase 3 clinical trial, called TELESTAR, evaluating telotristat etiprate in patients with carcinoid syndrome met its primary efficacy endpoint.
- The 105-subject, randomized, double-blind, placebo-controlled study assessed telotristat etiprate, a tryptophan hydroxylase (TPH) inhibitor, in carcinoid syndrome patients with metastatic neuroendocrine tumor inadequately controlled by the current standard-of-care (SOC), somatostatin analogs.
- The primary endpoint was the change from baseline in the number of daily bowel movements (BMs) over 12 weeks. Study participants who added telotristat etiprate (250 mg and 500 mg doses) to SOC treatment experienced a statistically significant reduction in daily BMs versus placebo (p<0.001). Complete results will be presented at a future medical conference.
- Lexicon has commercialization rights in the U.S., Canada and Japan. Ipsen (OTCPK:IPSEY) has the commercialization rights in all other territories.
- Tyson Foods (NYSE:TSN) reports chicken revenue fell in Q2 as prices fell 5.3%.
- Beef revenue was up 2.8% to $4.31B as a slip in volume was offset by higher pricing. High cattle costs cut into profit for the beef segment.
- Pork revenue -31.7% to $1.207B on a 28% plunge in prices.
- Prepared foods revenue +101% to $1.81B on strong volume and a double-digit increase in pricing.
- Tyson says it will start buying back stock in FQ4 with it ahead of schedule on hitting leverage ratio targets.
- Guidance: Tyson sees a 3% increase in protein production in FY16. The company lowers its FY15 EPS outlook to $3.10-$3.20 vs. $3.30-$3.40 prior and $3.44 consensus.
- Previously: Tyson Foods misses by $0.12, misses on revenue (Aug. 03 2015)
- TSN -7.55% premarket to $40.92.
7:24 AM| Comment!
- Genesee & Wyoming (NYSE:GWR) reports Freight revenue increased 18.6% to $375.67M.
- Revenues by operations: North America & European: $310.98M (-4.5%); Australian: $66.81M (-19.6%); U.K./European: $164.43M.
- Average revenues per carload was $500.
- G&W's traffic increased 47.3% to 750,887 carloads.
- Adjusted operating margin decreased 822 bps to 18.41%.
- Q2 results
Friday, July 31, 2015
- After five weeks of closure, the Athens stock exchange will reopen on Monday, after what seems like a geological time frame's worth of developments in Greek solvency.
- After the government's compromise with creditors, investors say it will take some time, likely months, before the companies there can raise money internationally.
- “The Greek crisis has had an adverse impact on all sectors of the economy,” said Apostolos Gkoutzinis of law firm Shearman & Sterling.
- The Luxembourg stock exchange lifted a suspension on trading of Greek bonds a week ago.
- GREK +2.6% today, though still down 21.7% over the past three months. The National Bank of Greece (NYSE:NBG) gained 6% today (and is down 19.9% over the past month).
- Related tickers: OTC:ALBKY, OTC:BPIRY, OTC:EGFEY
- Previously: IMF drops bombshell on Greece (Jul. 31 2015)
- Previously: Greece, creditors begin talks to secure bailout deal (Jul. 28 2015)
- For the second quarter in a row, LinkedIn (NYSE:LNKD) fell hard post-earnings. Evercore and Avondale Partners downgraded to neutral ratings, while various other firms defended the company.
- Evercore's Ken Sena notes LinkedIn's 2H15 sales (officially guided above consensus) were guided down if one excluded an accounting benefit related to the Lynda.com acquisition. "The reasons for the company’s more conservative outlook have mostly to do with limited visibility on its Marketing Solutions line, where it continues to make a transition away from higher-priced premium display to feed-based and more performance-based ads."
- Though Sena thinks the ad transition can be managed, he declares "the combination of another FY effective guide down, a steep deceleration in the company’s 2Q sequential user growth (measured on unique visitors), and margins showing compression (with and without Lynda) leads [Evercore] to move to the sidelines on shares." He also compared LinkedIn's ad challenges to Twitter's.
- BGC's Colin Gillis, on the other hand, considers ad concerns overblown in light of the strong performance of LinkedIn's Sponsored Updates ads. "[D]isplay advertising is approximately 3% of overall revenue, and in our view its low quality revenue ... The irony is that the marketing solutions business that contains display advertising is the only business segment that accelerated its growth in the June quarter, growing at 32% YoY compared to 24% growth in the June 2014 quarter."
- Jefferies' Brian Pitz also sees reasons to stay bullish. "The company is still early in large market opportunities, including Sales Navigator, Lead Accelerator, Bizo and Lynda ... The company saw dramatic improvements in Sales Navigator customer satisfaction as well as higher than expected customer renewal at the higher Sales Navigator prices implemented this year.”
- Q2 results/Q3 guidance, details, CC transcript
- Giants Exxon Mobil (XOM -4.5%) and Chevron (CVX -4.9%) finished significantly lower at the close after each attempted a midday rally, in the wake of earnings misses marked by the continuing crude supply glut and price pressure.
- Oil ETFs fared not much better today: USO -3.2%, OIL -3.7%.
- Producers have key differences that make for advantages and disadvantages, like Chevron's downstream cushion. Exxon's edge over Chevron, Liam Denning notes: M&A. Its stock is down just 19% over the past year while the sector has tumbled 47%.
- As oil's selling point -- big cash distribution -- gets squeezed, Exxon is in relatively good shape. It's still raising its dividend, and it's cut its projected Q3 buybacks to just $500M (vs. zero for Chevron, Shell and BP).
- Exxon says it shops worldwide, but the U.S. may be a more natural hunting ground. Possible targets? According to Wolfe Research's Paul Sankey, Pioneer Natural Resources (PXD -2.4%) and Hess (HES -2.2%).
- ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
- Previously: ConocoPhillips -3.3% as dividend gets scrutiny out of earnings (Jul. 31 2015)
- Previously: Chevron -1.8% as earnings tumble, paced by $2.2B upstream loss (Jul. 31 2015)
- Previously: Exxon Mobil off 1.8% premarket after lowest profit since 2009 (Jul. 31 2015)
- Down sharply this morning in response to its FQ4 miss and soft FQ1 guidance, Synaptics (NASDAQ:SYNA) managed to close up 0.1%. Likely helping: The company guided on its earnings call (transcript) for FY16 (ends June '16) revenue to rise 20%-25%, above a 19.3% consensus. (hat tip: SA commenter Philip Marlowe).
- Also: Multiple analysts defended Synaptics, arguing the FQ1 guidance (blamed on LCD driver weakness) shouldn't be taken as a sign of Apple share loss. Stifel's Kevin Cassidy thinks supply chain inventory issues are the culprit, and Pac Crest's John Vinh predicts Synaptics' LCD drivers will retain their sole-sourced status with the iPhone 6S.
- When asked by Needham's Rajvindra Gill about squaring the LCD driver outlook with a pending iPhone refresh, CEO Rick Bergman downplayed the magnitude of the expected sales decline, albeit without getting specific. "Specifically around [display drivers] there's various product cycles and customer ramps and so on that impact that business. And some of those were favorable in our fiscal Q4 and in Q1, they're down. Now, down is a relative term. It's relatively a small decrease in the grand scheme of things, but it is a little bit lower than what we saw in Q4. And again, we depend on certain customer ramps, inventories, where we are in the [bill of materials], and so forth."
- Regarding the company's just-launched TDDI (integrated touch controller/display driver) ICs, Bergman cautioned design wins could take longer to ramp than for standard touch controllers, but added TDDI could provide a lift in the second half of FY16. CFO Wajid Ali stated TDDI gross margins should be higher than LCD driver GMs.
- Enterprise Products Partners (NYSE:EPD) sold off for the second day, -2%, after a huge miss on revenues yesterday ($7.09B, more than 26% off a consensus expectation of $9.7B).
- Revenues fell by 43%, and analysts had baked in a 20% revenue decline. But costs and expenses fell 45% as well, to $6.4B.
- Shares fell 1.9% yesterday after earnings, bringing the two-day decline to 3.8%.
- Stifel Nicolaus cut its price target on the shares to $34, from $38. Shares closed today at $28.33. But Wunderlich's Jeff Birnbaum said the results were "satisfying," maintaining a Buy rating on one of his top picks coming into earnings season.
- "While not huge growth, it comes despite a tough macro backdrop, particularly for natural gas gathering and processing," he writes. "With [more than] $8.3B in new projects set to enter service by YE17, we believe it can continue its 6% distribution growth and 1.3x distribution coverage with potential upside should commodities rebound over time or additional M&A opportunities materialize."
- Though Control4 (NASDAQ:CTRL) beat Q2 estimates, it guided for Q3 EPS of $0.10-$0.16 vs. a $0.16 consensus.
- Revenue guidance is a little better: Q3 revenue of $44M-$47M vs. a $44.9M consensus, and 2H15 revenue growth of 12%-18% vs. a 16.1% consensus.
- On the earnings call (transcript), the home automation tech provider suggested an online ad campaign will weigh on Q3 EPS. Sales/marketing spend rose 22% Y/Y in Q2 to $7.8M.
- North American revenue rose 24% Y/Y in Q2 to $44.6M, and international revenue 20% to $9.8M. 143 dealers were added, raising the active dealer count to 3,421.
- Shares had rallied strongly ahead of earnings.
- Q2 results, PR
- AppliedMicro (NASDAQ:AMCC) rallied to $6.21 today after beating FQ1 estimates and guiding on its earnings call (transcript) for FQ2 revenue of $39M (+/- $2M) and EPS of -$0.03 (+/- $0.02). That's close to a consensus of $39.2M and -$0.03, and better than feared given the light calendar Q3 outlooks offered by many other chipmakers with strong networking/telecom exposure.
- Also: AppliedMicro said it landed over 20 new "end-customer engagements" during FQ1 for its X-Gene ARM server CPUs - clients are said to include several large financial institutions and a major Asia-Pac data center operator. A second-gen CPU (X-Gene 2) is undergoing customer evaluation, and a 3rd-gen product that will rely on an advanced 16nm FinFET manufacturing process (presumably TSMC's) has reached the tape-out stage.
- FQ1 book-to-bill was above 1. Strong demand for AppliedMicro's X-Weave Ethernet/OTN connectivity chips (100G-capable) partly offset soft PowerPC processor sales.
- FQ1 results, PR
- Alliance Resource Partners (ARLP -1.7%) says it's completed acquiring the rest of the White Oak Resources equity interests that it didn't already own, and has updated production and financial guidance accordingly.
- The move means an Alliance unit takes operating control of White Oak Mine No. 1 in Illinois, producing 6M tons/year of high-sulfur coal.
- The company now guides to coal production of 42.8M-43.5M tons for the year, and sales volumes of 42.7M-43.8M tons.
- It also sees 2015 revenues (excluding transportation) of $2.37B-$2.41B -- above consensus of $2.36B -- and full-year EBITDA of $765M-$795M (in line) and net income of $405M-$435M.
- Alliance paid $50M at closing and may owe contingent consideration in the future. The company will hold a conference call to talk about the guidance on Monday at 11 a.m. ET.
- In addition to beating Q2 estimates, Web.com (NASDAQ:WWWW) used its earnings call (transcript) to guide for Q3 revenue of $138.5M-$140M and 2015 revenue of $554M-$558M, favorable at the midpoints to consensus estimates of $138.6M and $554.7M.
- Q3 and full-year EPS guidance is at $0.59-$0.61 and $2.36-$2.42 vs. consensus estimates of $0.61 and $2.38. 2015 free cash flow guidance has been hiked by $15M to $115M.
- Subscribers rose by 21K Q/Q to 3.32M, and ARPU by $0.16 to $13.91. For now, the company is sticking to a net subscriber add target range of 10K-15K.
- Shares rallied to $24.89 today, making new 52-week highs in the process.
- Q2 results, PR
- In addition to slightly missing Q2 revenue estimates (while posting in-line EPS), Brightcove (NASDAQ:BCOV) has guided for Q3 revenue of $32.9M-$33.4M (below a $33.8M consensus) and full-year revenue of $132.5M-$133.5M (below a $134.7M consensus).
- The online video hosting/monetization service provider blamed its Q2 sales weakness on "the timing of certain customer renewals." It also reported seeing "some softness in our European markets," while adding North America and Japan were healthier.
- Notably, Brightcove's total and premium customer counts respectively fell by 174 and and 17 Q/Q in Q2 to 5,404 and 1,847. The company's recurring dollar retention rate was 88%, below a low-to-mid 90s target range. On the bright side, average revenue per premium customer rose by $1K Q/Q and $4K Y/Y to $64K.
- Shares made a new 52-week low of $4.81 before rebounding a bit to close at $5.47.
- Q2 results, PR
- Discovery Communications (NASDAQ:DISCA) finished up 2.5% following an upgrade from UBS to Neutral, from a previous Sell.
- Analyst Doug Mitchelson boosted the firm's price target on Discovery, to $33 from $30.50. Shares closed today at $33.02.
- Earlier this month, Pivotal Research downgraded shares to Hold with a lower price target of $35. Most analysts maintain Hold ratings on the stock, and consensus price targets came to just over $39, implying 18% more upside from today.
- The broadcaster is coming off its best month ever -- thanks to Shark Week. Total daytime ratings for Discovery Channel were up 61% Y/Y with help from the big fish. That's against cable ratings that in general fell 11% Y/Y.
- Previously: Shark Week leads Discovery to cable ratings win (Jul. 14 2015)
- Previously: Discovery enjoying some best-ever numbers entering Shark Week (Jul. 07 2015)
- Previously: Discovery Communications up as Nomura boosts target (Jul. 07 2015)
- Murphy Oil (NYSE:MUR) fell consistently into the close to finish -6.2% today as Oppenheimer downgraded the stock to Perform, from Outperform.
- The firm also pulled its $55 price target, "as we expect the deficit spending to continue into 2017 and beyond at average crude oil prices below $80/b," writes analyst Fadel Gheit.
- Shares closed yesterday at $34.97 after rising 2.3% in the wake of earnings where it posted a net loss narrower than expected. UBS pulled its Sell rating on the results.
- "We expect MUR to face a cash flow deficit of $1.6B this year and $900M next year, which will be funded from $1.3B cash on hand and additional borrowing," said Oppenheimer's Gheit.
- A10 Networks (NYSE:ATEN) surged to $6.51 today after beating Q2 estimates and guiding on its earnings call (transcript) for Q3 revenue of $48M-$52M and EPS of -$0.08 to -$0.12, favorable at the midpoints to a consensus of $49.3M and -$0.12.
- Thanks in part to easier comps, the midpoint of the Q3 revenue guidance range implies 15% Y/Y growth - a notable improvement from Q2's 5%.
- Enterprise revenue rose by just $100K Y/Y in Q2 to $27.5M, while service provider revenue rose by $2.3M to $20M. A major deal with an unnamed service provider customer (14% of Q2 revenue) provided a lift.
- Q2 results, PR
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