Seeking Alpha
  • Today - Thursday, April 24, 2014

  • 2:48 AM
    • AstraZeneca (AZN) core EPS of $1.17 misses by $0.06.
    • Revenues flat at $6.42B, topping consensus of $6.32B. Sales +3% at constant exchange rates (CER).
    • Core operating profit tumbles 11% to $1.95B.
    • Net profit halves to $504M from $1.01B, with earnings hurt by charges of $967M related to restructuring, amortization and other factors.
    • Sales breakdown: Brilinta $99M (+94% CER), diabetes $347M (+106%), respiratory $1.27B (+12%), emerging markets $1.42B (+11%) and Japan $537M (+13%).
    • AstraZeneca affirms its 2014 guidance, saying it expects core EPS to fall "in the teens" at CER and revenue to drop in the low-to-mid single digits on a percentage basis. (PR)
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  • 2:25 AM
    • Alstom (ALSMY, AOMFF) hasn't been informed of any takeover offer, the French industrial group said today.
    • Alstom was responding to a Bloomberg report that GE (GE) is in talks to buy the company for $13B.
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  • Wednesday, April 23, 2014

  • 4:38 PM
    • Along with its FQ2 results, Apple (AAPL) has announced a 7:1 stock split. Split-adjusted trading will start on June 9.
    • The company's buyback authorization has been raised by $30B to $90B, and its quarterly dividend hiked by 8% to $3.29 (2.5% yield).
    • Shares remain halted. They'll resume trading at 4:45PM ET.
    | 50 Comments
  • 4:33 PM
    • Apple (AAPL): FQ2 EPS of $11.62 beats by $1.44.
    • Revenue of $45.65B beats by $120M.
    • 43.7M iPhones (above expectations), 16.35M iPads (below expectations), 4.1M Macs.
    • Expects FQ3 revenue of $36B-$38B vs. a $37.8B consensus.
    • Shares halted.
    • CC at 5PM ET. Press Release.
    | 89 Comments
  • 4:20 PM
     
    • Stocks rested on the seventh day following six straight sessions of gains, after new home sales data showed a surprisingly sharp decline.
    • "The U.S. recovery remains in fits and starts," Peter Boockvar said after new home sales slumped 14.5% in March, the worst sales month since July.
    • In a mixed bag of earnings reports, Boeing +2.4% after beating estimates and raising its full-year core earnings outlook, AT&T -3.7% as earnings fell from a year ago,
    • Although Gilead Sciences (+1.3%) enjoyed a big earnings beat, Amgen and Biogen reported below-consensus results. taking down most of the other major biotechs and other Nasdaq names along.
    • Treasurys posted modest gains, with the 10-year yield falling 3 bps to ~2.69%.
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  • 4:05 PM
    • Qualcomm (QCOM): FQ2 EPS of $1.31 beats by $0.09.
    • Revenue of $6.37B (+4% Y/Y) misses by $110M.
    • 188M MSM chip shipments, in-line with guidance of 180M-195M.
    • Expects FQ3 revenue of $6.2B-$6.8B and EPS of $1.15-$1.25 vs. a consensus of $6.59B and $1.25, and MSM chip shipments of 198M-213M.
    • Expects FY14 revenue of $26B-$27.5B and EPS of $5.05-$5.25 vs. a consensus of $26.8B and $5.13. EPS guidance was previously at $5-$5.20.
    • Shares -2.6% AH.
    • Press Release
    | 4 Comments
  • 12:46 PM
    • Though investors aren't thrilled with AT&T's (T -3.3%) Q1 wireless numbers, Wells Fargo (Outperform) calls them "big time solid." The firm notes net adds and churn were better-than-expected, and thinks Q1 results suggest the telco's 2014 guidance is "quite achievable."
    • Morgan Stanley (Equal-Weight) is less charitable: It estimates 500K of AT&T's 625K postpaid net adds came from tablets, and notes cheaper Mobile Share plans - launched following intense price competition and promotional efforts from T-Mobile (TMUS -3%) - led wireless service revenue growth to fall.
    • Canaccord observes strong uptake for Next upgrade plans boosted subscriber adds, but expects the trend to moderate. The firm has cut its 2014 EPS estimate to $2.69 from $2.78 (consensus is at $2.71).
    • On the CC (transcript), management talked up the ability of Next adoption to lower subsidy expenses, and mentioned U-verse revenue is now on a ~$14B/year run rate.
    • Strong U-verse growth has narrowed AT&T's wireline revenue declines, albeit while pressuring margins. The company promises wireline margins (-110 bps in Q1 to 10%) will improve in 2016.
    | 2 Comments
  • 10:19 AM
    • The seasonally adjusted new home sales pace of 384K in March is 14.5% below that of February and 13.3% lower than a year ago. It's the slowest pace since July, and 14.5% is the 3rd-largest decline in 20 years. The median sales price of $290K is up 12.6% Y/Y. The supply of new homes on the market is 6 months at the current sales pace, up from 5 months in February.
    • Homebuilder ETFs: ITB -1.7%, XHB -1.2%.
    • Toll Brothers (TOL -1.6%), Lennar (LEN -1.9%), Hovnanian (HOV -1.5%), Pulte (PHM -1.6%), KB Home (KBH -3.3%), Beazer (BZH -2.4%), Ryland (RYL -2.6%)
    • The 10-year Treasury yield dips two basis points to 2.69%. TLT +0.4%, TBT -0.8%
    • Full report
    | 18 Comments
  • 10:00 AM
     
    | 13 Comments
  • 9:45 AM
     
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  • 9:16 AM
    • HBO (TWX) plans to license shows to a streaming service for the first time with a new deal with Amazon (AMZN).
    • The Sopranos will be available as soon as May 21, while current shows such as Girls will air after a three-year window.
    • The companies also announce that HBO GO will be available on Fire TV, with a stated goal to launch before the end of the year.
    | 14 Comments
  • 8:42 AM
    • Northrop Grumman (NOC) net profit +18% to $579M, including $51M tax benefit.
    • Segment operating income $757M vs $748M; margin 12.9% vs 12.3%.
    • Sales breakdown: Aerospace Systems -3% to $2.42B; Electronic Systems -4% to $1.64B; Information Systems -6% to $1.58B; Technical Services -3% to $697M.
    • Upgrades 2014 EPS guidance to $8.90-9.15 vs prior outlook of $8.70-9.00 and consensus of $8.93; revenue outlook unchanged at $23.5-23.8B vs forecast of $23.72B. (PR)
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  • 7:56 AM
    • Boeing (BA) net profit -13% to $965M.
    • Core operating earnings +12% to $2.095B; margin 10.2% vs 9.9% a year earlier.
    • Boeing Commercial Airplanes revenues +19% to $12.74B; operating profit +23% to $1.5B, margin 11.8% vs 11.4%; deliveries 161 planes vs 137 planes. Booked 235 net orders, backlog over 5,100 airplanes valued at $374B.
    • Boeing Defense, Space & Security revenues -6% to $7.63B; operating earnings -6% to $778M, margin 10.2% vs 10.3%.
    • Increases 2014 core EPS guidance to $7.15-7.35 from $7.00-7.20 prior to reflect the benefit of a tax settlement that Boeing will recognize in Q2. Consensus is for $7.38. Expects revenue of $87.5-90.5B vs forecasts of $90.09B; deliveries of 715-725 commercial jets.
    • Shares +1.9% premarket. (PR)
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  • 7:26 AM
    • Portugal has sold €750M in 10-year bonds at a yield of 3.5752%, representing the return of the country to international debt markets after a hiatus following its €78B bailout in 2011.
    • Portugal's offering comes after Greece sold €3B in five-year bonds earlier this month.
    • "The story is the same as the rest of Europe," writes Joe Wiesenthal. "The market believes that governments have an implied backstop from the ECB, preventing default."
    • ETF: PGAL
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  • 7:12 AM
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  • 4:59 AM
     
    • Asian stocks trade mixed and European shares are mainly lower, with a strong showing on Wall Street yesterday helping to boost sentiment, but with disappointing PMI data out of China and France dampening the mood.
    • Japan +1.1%, Hong Kong -1%, China -0.3%, India +0.5%.
    • Euro Stoxx 50 -0.3%, London flat, Paris -0.4%, Frankfurt -0.3%, Milan -0.2%, Madrid +0.2%.
    • U.S. stock futures: Dow, S&P and Nasdaq flat.
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  • 4:36 AM
    • The Bank of England's Monetary Policy Committee voted unanimously, as expected, to keep interest rates at 0.5% and against more quantitative easing at a meeting earlier this month, the minutes of the meeting show.
    • Meanwhile, the U.K.'s Public Sector Net Borrowing dropped to £4.86B in March from £7B in February and was well below consensus of £9.1B. (PR)
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK
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  • 4:29 AM
    • Lockheed Martin (LMT) has won an order from Australia for 58 F-35 Joint Strike Fighters in a deal worth $11.6B, making the country one of the largest international customers for the plane.
    • The booking will increase Australia's fleet of F-35s to 72, and the government has retained an option to buy another 18 aircraft.
    • The deal comes as Lockheed Martin faces governmental budget restrictions across the world, which has prompted countries to cut back their orders for the F-35.
    | 1 Comment
  • 4:17 AM
    • Eurozone flash manufacturing PMI has increased to 53.3 in April from 53 in March and topped consensus that was also 53.
    • Services has risen to a 34-month high of 53.1 from 52.2 and vs 52.4.
    • Composite output has climbed to a 35-month high of 54 from 53.1 and vs 53.1.
    • Manufacturing output has increased to 56.5 from 55.6.
    • The growth was led by Germany, while France stabilized.
    • The data indicates that eurozone GDP is on course to rise 0.5% in Q2 following 0.4% growth in Q1.
    • The bloc experienced a return to job creation, says Markit, suggesting that companies believe "that the recovery has legs and is looking increasingly sustainable." However, Markit warns of "growing fears that deflationary pressures are intensifying."
    • The euro rises further, having gained a boost from German PMI, and is +0.25% at $1.3839. (PR)
    • ETFs: FXE, VGK, EUO, FEZ, ERO, IEV, EU, EPV, EZU, HEDJ, DRR, FEU, FEP, UPV, EUFX, ULE, ADRU, FEEU, URR, EURL, EURZ, DBEU, FIEU
    | 1 Comment
  • 3:44 AM
    • German flash manufacturing PMI has increased to 54.2 in April from 53.7 in March and topped consensus of 54.
    • Services has risen to 55 from 53 and vs 53.4.
    • Manufacturing output has climbed to 58.8 from 57.
    • Composite output has grown to to 56.3 from 54.3.
    • "A combination of increased activity, rising new orders and further employment growth across both the manufacturing and service sectors suggest companies will remain in expansion mode during the coming months," says Markit. The data indicates that "the economy is set to build on the foundation of last quarter's solid growth."
    • However, Markit warns that price data points to an "increasing risk of deflationary pressures."
    • The DAX is flat after being lower earlier, while the euro has recovered from prior losses, particularly after French PMI data, and is +0.05% at $1.3814. (PR)
    • ETFs: EWG, BUND, EWGS, DBGR, GERJ, DXGE, BUNL, FGM, BUNT, GGOV, HEWG
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