In more fallout from Brazil's political scandal, the brother owners of meatpacking giant JBS (JBSAY -3.9%) have resigned under pressure from senior posts at the company.
Joesley Batista has resigned as chairman of the board, and brother (and CEO) Wesley Batista resigned his vice chairmanship.
Wesley will remain as CEO and keep a seat on the board, but be replaced by his father, Jose Batista Sobrinho, as vice chairman. Taking over the chairman spot is former Procter & Gamble executive Tarek Farahat.
The Batistas were wrapped up in a plea bargain deal that accused the country's president, Michel Temer, of endorsing witness bribery -- but the company may yet face charges or a fine.
DragonWave (DRWI +5%) has slid 29.3% in postmarket trading late on a pre-holiday Friday after posting Q4 earnings that significantly missed Street estimates.
The company swung to a gross profit, and narrowed its net loss to shareholders to $3.9M, still deeper than forecast.
Our results in Q4 reflect the difficult operating conditions," says CEO Peter Allen, adding that the firm's been working on a credit restructuring and has engaged Alvarez & Marsal Canada to help find "strategic alternatives in relation to short term liquidity requirements.
Carlos Slim is looking to sell a minority stake in Telesites (TSSLF +3.8%), the towers company spun off from telecom America Movil (AMX +1.6%), Reuters reports.
Slim and his family own about 61% of Telesites shares, and he's talking to private equity, sovereign wealth funds and infrastructure funds about taking a chunk of the operator, which has had trouble diversifying its business beyond America Movil and its mobile unit Telcel.
Telesites is capitalized at about 38.52B pesos (about $2B).
Thinly traded micro cap Endocyte (NASDAQ:ECYT) jumps 16% after hours on light volume on the heels of its announcement that updated data on top candidates EC1456 and EC1169 will be presented at ASCO.
EC1456: results from a two-part Phase 1 study, EC1456-01. Part A (dose escalation phase) involves 87 patients with advanced solid tumors and Part B (expansion phase) six patients with FR-positive non-small lung cancer as of the May 18 cutoff. Preliminary data on the first patient enrolled in the ovarian surgical study, EC1456-02, will also be presented (Abstract #2576).
EC1169: results from a two-part Phase 1 (same design as EC1456-01) in patients with metastatic castration-resistant prostate cancer. Data includes 24 taxane-exposed patients in Part A and 16 taxane-naive patients in Part B (Abstract #5038).
Sarepta Therapeutics (SRPT -3.9%) underscores its volatile nature as it sells off over 21% from its intermediate high of $37.41 touched on May 19.
Investors are hitting the sell button in apparent response to a lawsuit filed against the FDA by journalist and NYU professor Charles Seife. It seems the agency is reticent to disgorge internal documents related to its controversial approval of DMD med Exondys 51 (eteplirsen) that he requested under the Freedom of Information Act. His complaint accuses the regulator of dragging its feet in responding to his request, filed in December, before finally rejecting it.
Seife sought emails between top officials, including former Commissioner Robert Califf, that mention the company, Duchenne and other keywords, in addition to correspondence between Califf and editors at the journal Annals of Neurology which published a study in 2013 providing evidence of eteplirsen's effectiveness. Just before the FDA approved the drug, Califf called for a retraction of the study, funded by Sarepta, calling it "misleading."
An FDA spokesperson stated that the agency "does not comment on pending or ongoing litigation."
Nvidia (NASDAQ:NVDA) shares are up on news that SoftBank (OTCPK:SFTBY) is interested in increasing its investment in the GPU design company, according to sources close to the matter. No specifics are provided.
SoftBank snagged a $4B stake in Nvidia on Wednesday. The increase would reportedly happen over time as SoftBank begins to work closely with Nvidia.
Bristow (BRS -2.5%) is downgraded to Market Perform from Outperform with a $7 price target, whacked in half from a previous $14, at Cowen, which anticipates continued cash consumption that will be needed absent a meaningful recovery in offshore drilling.
Cowen models a significant reduction to cash flow estimates, which now have BRS consuming cash through FY 2020, with the company needing to successfully defer capex and refinance or obtain new financing to support liquidity in 2020.
The BRS share price already has been cut nearly in half since reporting a larger than expected FQ4 loss.
Thinly traded nano cap TRACON Pharmaceuticals (TCON +14%) is up on an 80% surge in volume, although the stock is still mired in a long-term downtrend.
Yesterday after the close, it announced four ASCO poster presentations on its lead candidates TRC105 and TRC102.
TRC102 (methyloxyamine HCl): Phase 1 data (with temozolomide) in solid tumors and lymphomas (Abstract #2518)
TRC105 (carotuximab): Phase 1 data (with bevacizumab) in brain cancer (#2023); biomarker modulation (in combo with anti-VEGF therapy) (#11546); Phase 3 data (with pazopanib) in angiosarcoma (#TPS11081).
TRC105 is an antibody that binds to a protein called endoglin which is overexpressed on proliferating endothelial cells that play an essential role in angiogenesis (formation of new blood vessels).
TRC102 is a small molecule inhibitor of the DNA base excision pathway, which causes resistance to certain chemo agents.
Bank of America Merrill Lynch upgrades Veeva Systems (NYSE:VEEV) to Buy from Neutral and pushes the price target from $48 to $70. Analyst Brad Sills cites the 27% billings growth over the prior two quarters in his belief that cloud product Vault will become a multibillion-dollar sales generator.
Sills expects the Commercial segment to grow mid-teens on geographic expansions and utilization of current and launching customer contracts.
Canaccord analyst Richard Davis also raises the price target from $48 to $70 and maintains his Buy rating. Davis writes that Veeva is “firmly in the top decile of companies we track in terms of our confidence in the firm’s execution, hitting numbers, sustaining growth and that increasingly in vogue thing called profitability."
Sina will distribute one Weibo Class A ordinary share to the holder of each 10 Sina ordinary shares, it said; Sina ordinary holders that settle through DTC will get Class A ordinary shares represented by Weibo American Depositary Shares.
That will trim Sina's equity stake to 46% from 49% (and its voting power to about 72%, from a previous 74%).
The move is payable around July 10 to shareholders of record at the close June 7.
Inseego (NASDAQ:INSG) is off 4.7% to its session low, just 6% above the 52-week low it hit last week.
That's part of a two-day decline of 6.4% after news that the Committee on Foreign Investment in the United States has extended a review into the company's sale of Novatel Wireless to Jade Ocean Global.
The 30-day review period has been extended into an investigation period that could stretch to 45 days, but Inseego believes it will wrap up by July 10.
The company forecast a full-year net profit of ¥59B ($530M) up from ¥24.9B last year and beating the consensus estimate of ¥41.9B Sharp hopes to achieve an operating profit of ¥150B by the fiscal year ending in March 2020.
Sharp hasn’t reported in net profit in four years but has undergone restructuring in the wake of Foxconn’s $3.8B acquisition last year. The return to profit will allow Sharp to move forward with more growth investments similar to the recent $1B investment in SoftBank’s Vision Fund.
Nano cap CytRx (CYTR +8.4%) builds on yesterday's 21% move on slightly higher volume. Shares have rallied 56% since the company announced positive late-stage data on aldoxorubicin in treatment-resistant soft tissue sarcoma.
Nano cap Zosano Pharma (NASDAQ:ZSAN) perks up 6% premarket on average volume. Yesterday, interim CEO John Peter Walker bought 73,716 common shares at an average price of $1.36 and CFO and Chief Business Officer Georgia Erbez purchased 68,000 shares at $1.32.
The company's lead product candidate is M207 for the treatment of migraine. It reported positive results from a Phase 3 study in February.
Cheetah Mobile's (NYSE:CMCM) investment in Beijing OrionStar Technology is about $40M for a 29.6% equity interest.
Also China-based, Cheetah Mobile creates popular mobile applications including Battery Doctor and CM Security that attract about 600M daily active users around the world.
Cheetah is entitled to a future warrant to subscribe to a new equity interest in OrionStar with a value of up to $62M and 51.7% equity interest if exercised in full. The warrant becomes available two years after closing the current investment.
Jinko Solar (NYSE:JKS) -6.1% premarket after being slammed by two downgrades, at Morgan Stanley and Citigroup, following the stock's 41% run-up YTD and 24% during the past week.
Morgan Stanley downgrades JKS two notches to Underweight from Overweight with a $16.40 price target, cut from $19.40, expecting Q1 earnings to decline more than 50% below Wall Street estimates mainly due to lower margins and ASPs, and slow cost reductions given high polysilicon prices and OEM fees.
Stanley thinks the next 12-18 months will be difficult for China solar names, noting increased new capacity coming online, and believes a majority of manufacturers will struggle to reach breakeven in H2 2017 and 2018.
Also, Citigroup cuts shares to Sell from Neutral with a $15 price target, trimmed from $15.50, as investors have priced in an "overly bullish outlook," and the firm expects sales declines and margin contraction in Q3 as China's rush installation ends.
Thinly traded micro cap Albireo Pharma (NASDAQ:ALBO) slumps 37% premarket, albeit on only 800 shares, in response to the pricing of its public offering of 2.2M shares of common stock at $20.50. Underwriters over-allotment is an additional 330K shares. Closing date is May 30.
Yesterday's close was $19.14 so the 37% drop is a significant overreach.
CLNE says it will provide L.A. Metro with its Redeem brand of RNG, the first renewable and commercially available vehicle fuel made entirely from 100% organic waste.
The contract starts with a one-year pilot to provide Redeem to one of Metro’s 11 compressed natural gas stations, which CLNE operates and maintains (every station provides fuel for ~200 CNG buses), with an option to supply the entire fleet of 2,200 natural gas buses for four more years.
Trillium Therapeutics (NASDAQ:TRIL) prices its public offering of 2.75M shares of common stock at $5.00 and 3.25M shares of Series II Non-Voting Convertible First Preferred stock at $5.00. Gross proceeds should be ~$30M. Closing date is June 1.
Net proceeds will fund early-stage studies of SIRPαFc (TTI-621), working capital and general corporate purposes.
TPI Composites (NASDAQ:TPIC) -9.1% premarket after disclosing that GE will not extend its supply agreement for wind turbine blades from the company’s manufacturing facility in Taicang, China, beyond the end of this year.
TPIC says it will remain an outsourced supplier for GE and continue to execute on its contracts with GE in the U.S. and Mexico.
In an investor presentation released after the GE news, TPIC says existing contracts provide for ~$4.2B in revenue through 2023.
Vanda Pharmaceuticals (NASDAQ:VNDA) initiated with Buy rating and $18 (29% upside) price target by H.C. Wainwright. Analyst cites "solid base business" with Fanapt and Hetlioz and "substantial upside" with pipeline. Shares are up 3% premarket but only on 40 shares.
BioDelivery Sciences (NASDAQ:BDSI) initiated with a Buy rating and $4 (82% upside) price target by H.C. Wainwright. Analyst cites "revitalized organization" with a "differentiated growth driver." Shares are up 5% premarket on light volume.
Immunomedics (NASDAQ:IMMU) initiated with Outperform rating and $15 (101% upside) price target by Cowen and Company. Analyst cites compelling Phase 2 data for IMMU-132 for triple negative breast cancer that should make it the standard of care. Shares are up 4% premarket on average volume.
Zoetis (NYSE:ZTS) initiated with Buy rating and $71 (13% upside) price target by C.L. King.
Marvell Technology Group (NASDAQ:MRVL) Q1 report beat EPS and revenue estimates. Other key metrics include 60.4% gross margin and $1.65B cash and short-term investments.
Notable event after Q1 closed: Sale of LTE thin-modem business to ASR Microelectronics for $45M. Product line will be reclassified in Q2 to discontinued operations.
Q2 guidance includes revenue of $585M-$615M, which straddles the consensus of $591.67M and includes $5M associated with LTE thin-modem business sale. Low end of EPS range of $0.26-$0.30 comes in $0.01 above consensus. Gross margin expected at 61% with $215M-$220M in operating expenses.
Marvell Technology shares are down 2.8% aftermarket.
Veeva Systems' (NYSE:VEEV) Q1 beats consensus estimates for EPS and total revenue, and subscription revenues were up 33% to $127.3M.
Q2 guidance includes $163M-$164M in total revenues compared to $160.2M consensus and $0.20 EPS, which is one cent above consensus. FY 2018 guidance has revenue between $665M and $669M, above the consensus $658.7M, and EPS between $0.82 and $0.84, which puts the low end two cents over consensus.
Deckers Outdoor (NASDAQ:DECK) shoots higher after turning a surprise profit in FQ4.
Gross margin as a percentage of sales improved 70 bps to 43.0% of sales as the retailer took its foot off the promotional pedal.
Direct-to-consumer sales rose 3% to $150M to help offset a 6% drop in wholesale revenue to $219M. By brand, UGG held up the best with a 1.1% decline, compared to the double-digit drops for Sanuk and Teva.
Deckers guides for FQ1 EPS of -$1.65 to -$1.75 vs. -$1.75 consensus and full-year EPS of $3.95 to $4.15 vs. $3.79 consensus.
Targa Resources (NYSE:TRGP) -3.5% AH after announcing plans to construct a new natural gas liquids pipeline to transport volumes from the Permian Basin and its North Texas system to its fractionation and storage complex in the NGL market hub at Mont Belvieu, Tex.
TRGP says the capacity of the Grand Prix pipeline will be ~300K bbl/day, expandable to 550K bbl/day and is expected to be in service in Q2 2019.
To help fund the deal, TRGP launches a 17M-share public offering, with an underwriters option to purchase up to an additional 2.55M common shares; proceeds also may be used to repay outstanding borrowings under its credit facilities, redeem senior notes and for general corporate purposes
In business customers, its average monthly service revenue per customer grew to $426 from a year-ago $385; monthly business service revenue churn increased to 0.7%, from 0.4%. For mid-market and enterprise customers, ARPU was $4,494, up from $4,083.
Overall service margin came to 83%; product margin was -9%, and overall gross margin was 77%.
For fiscal 2018, it's guiding to total revenue of $296M-$300M (17-19% Y/Y increase, and above consensus for $294.4M); of that, service revenues of $280M-$285M, up 19-21% Y/Y. It's forecasting non-GAAP pretax net income of $21M-$26M vs. $24M consensus, and an effective tax rate of about 36%.
Health Canada conditionally approves Intercept Pharmaceuticals' (NASDAQ:ICPT) Ocaliva (obeticholic acid) for the treatment of primary biliary cholangitis (PBC) when used in combination with ursodeoxycholic acid (UDCA) in adults who fail to respond adequately to UDCA or as monotherapy in adult patients unable to tolerate UDCA.
The approval is conditional pending the results of clinical trials to confirm its treatment benefit.
Trillium Therapeutics (NASDAQ:TRIL) commences a public offering of common stock and Series II Non-Voting Convertible Preferred Stock. Prices, volumes and terms have yet to be announced. Net proceeds will fund clinical trials, working capital and general corporate purposes.
Credit Suisse upgrades NetApp (NTAP +3.5%) from underperform to neutral with a price target of $37.00, up from $35. Analyst Kulbinder Garcha writes that NetApp’s downside is limited and that management remains confident the company can improve performance despite a weak short-term guidance. Credit Suisse raises FY18 from $2.70 to $2.95 and initializes $3.23 for FY19 EPS.
FBN Securities raises NetApp to outperform from sector perform and bumps up price target by $5 to $50. Analyst Shelby Seyrafi writes that flash storage sales and the strong leadership of CEO George Kurian could hold off competition from Pure Storage.
Meanwhile, FBN Securities upgrades NTAP to outperform from sector perform also citing the flash sales growth and FCF yield.
The deal sets up renewals of carriage agreements on the former Cablevision's Optimum system for Viacom's nets, including Nickelodeon, Comedy Central, MTV, VH1, BET, Spike/The Paramount Network and others.
It also puts Viacom channels back on Suddenlink, which dropped them more than two years ago, before it was purchased by Altice.
Meanwhile, Viacom has pursued advanced advertising initiatives with its Viacom Vantage offerings and will work to combine that with Altice's multi-screen ad platforms and analytics.
Oceaneering (OII -4.9%) reaches an agreement with an unnamed "major international oil and gas company" to provide remotely operated vehicle services and equipment for projects located offshore of Newfoundland and Labrador in Canada.
OII says the scope of work under the agreement includes subsea construction, inspection, maintenance and repair services on existing and future infrastructure.
Ad-tech firm SITO Mobile (NASDAQ:SITO) is off 3.4% today after it and five of its six board members have been sued by a shareholder saying they're squatting after being voted out of their seats.
Stephen Baksa, a former boardmember of the company, is seeking validation of new directors other than Brent Rosenthal after filing a definitive consent solicitation in which he claims the other five directors were voted out by a 58% margin.
The company's proxy says it believed Baksa's notice may not comply with bylaws, and recommends its own candidates.
Elliott's elected nominees are Christopher Ayers, CEO of specialty steel wire ropes maker WireCo WorldGroup; Carlyle Group's Operating Executive Elmer Doty; and Patrice Merrin, a Glencore board member.
ARNC nominees David Hess, the company's interim CEO, and Ulrich Schmidt, former Spirit AeroSystems CFO, also were elected to the board.
Paul Singer's hedge fund struck a deal with ARNC on Monday to end its battle for control of the company's board.