5:42 pm FedEx: Air Line Pilots Association announces FedEx
pilots have reached a tentative agreement with FedEx management on
an amended collective bargaining agreement (
FDX): The parties have been actively
negotiating since 2011. The new agreement is subject to review and
finalization of contract language. Terms of the tentative agreement
are not being released, as they first must be reviewed and approved
by the FedEx ALPA Master Executive Council (:MEC). If approved by
the FedEx MEC leadership, the TA will be subject to a ratification
vote of over 4,000 FedEx pilots. If ratified, the contract would
become amendable in 2021.
5:36 pm Freightcar America announces preliminary settlement of
retiree benefits litigation; to make a one-time cash payment of
$32.75 mln (
RAIL): Co announces it has reached a
preliminary settlement agreement with the United Steel Workers
International Union and other plaintiffs in connection with the
pending litigation relating to certain disputed retiree medical
coverage and life insurance benefits. Under the terms of the
preliminary settlement agreement, FreightCar America will make a
one-time cash payment of $32,750,000 in exchange for full and final
resolution of the matter. The preliminary settlement is subject to
the execution of definitive documentation and court approval.
5:18 pm Raptor Pharma to acquire Quinsair from Tripex
Pharmaceuticals for $68.4 mln upfront, reaffirms 2105 guidance (
RPTP):
The co announced that it has signed a definitive agreement with
Tripex Pharmaceuticals to acquire Quinsair, the first inhaled
fluoroquinolone approved for the management of chronic pulmonary
infections due to Pseudomonas aeruginosa in adults with cystic
fibrosis, expanding its portfolio of rare disease therapies.
Quinsair received marketing authorization by the European
Commission and Health Canada in March 2015 and June 2015,
respectively. Quinsair, a twice-a-day treatment, contains
levofloxacin, a proven antimicrobial active against a wide range of
gram negative and gram positive bacteria. Raptor plans to launch
Quinsair in Europe and Canada in the first half of 2016, and to
discuss the path to potential approval in the same indication in
the U.S with the FDA in 2016.
Under the terms of the agreement, Raptor will pay $68.4
million upfront, with up to $34.2 million of the closing
consideration payable in Raptor common stock at Raptor's election
plus contingent payments of up to $350 million associated with
development, regulatory and commercial milestones, a portion of
which is payable in Raptor common stock at Raptor's election, and a
single-digit royalty on future global net sales. In addition,
Raptor will have single-digit contingent obligations to two
additional parties involved in Quinsair's development. Raptor is
acquiring exclusive global rights and assets to develop,
manufacture and commercialize Quinsair.
With this acquisition, Raptor is reiterating its 2015 revenue
guidance of $80-90 million and also maintaining its 2015 guidance
for non-GAAP operating expenses, which exclude cost of goods and
non-cash expenses, such as stock-based compensation and
amortization of transaction-related intangible assets, of between
$115-125 million.
5:03 pm Oceaneering Intl names Alan R. Curtis as CFO (
OII):
Curtis joined Oceaneering in 1995 as a Financial Controller and
since December 2014 has served as Senior Vice President, Operations
Support
The co also announced the promotion of Eric A. Silva to Senior
Vice President, Operations Support.
The co further announced the promotion of Clyde Hewlett to
Chief Operating Officer.
5:02 pm Dominion Diamond reports Q2 sales and production
results: Diamond sales were $209.7 mln (
DDC):
Highlights:
Second quarter diamond sales were robust at $209.7 million
($277.3 million in Q2 fiscal 2015), despite a cautious market and a
time of seasonal weakness in demand.
During Q2 fiscal 2016, the Ekati Diamond Mine recovered 0.9
million carats from 1.0 million tonnes of ore processed (0.8
million carats from 1.1 million tonnes in Q2 fiscal 2015).
Misery Main pipe is still on track for first production in Q1
fiscal 2017.
5:01 pm Brinker increases quarterly dividend to $0.32/share from
$0.28/share; adds $250 mln to repurchase program (
EAT): With the additional amount, Brinker
will have approximately $567 million in available authorization as
of today's date.
4:56 pm Dillard's increases quarterly dividend to $0.07/share
from $0.06/share (
DDS):
4:49 pm America's Car-Mart misses by $0.34, beats on revs
(shares halted, will resume at 17:00 ET) (
CRMT):
Reports Q1 (Jul) earnings of $0.52 per share,
$0.34 worse thanthe Capital IQ Consensus Estimate
of $0.86; revenues rose 12.0% year/year to $142.69 mln vs the
$140.93 mln consensus.
Same store revenue growth was 8.9%
Allowance for credit losses at 23.8% of finance receivables at
July 31, 2015
Debt to equity of 45.3% and debt to finance receivables of
24.6%
4:44 pm Teradata adds $500 mln to its share repurchase program (
TDC): The company now has total Board of
Directors authorization of approximately $860 million when the new
$500 million authorization is combined with the $360 million still
remaining from the current outstanding authorization.
4:33 pm InterActiveCorp announces that Gary Swidler has been
appointed as Chief Financial Officer of its Match Group subsidiary
(
IACI): Co announced today that Gary Swidler
will join The Match Group as Chief Financial Officer. Swidler is
being appointed to this newly created group position in
anticipation of The Match Group's previously announced initial
public offering. Swidler joins The Match Group from Bank of America
Merrill Lynch, where he has been an executive at Bank of America
Merrill Lynch and its predecessors for nearly 18 years in various
capacities. Most recently, he served as a Managing Director where
he led the Financial Institutions Investment Banking Group.
4:33 pm Amazon to open a fifth Texas fulfillment center in San
Marcos (
AMZN):
4:33 pm Nordson misses by $0.09, misses on revs; guides Q4 EPS
below consensus (
NDSN):
Reports Q3 (Jul) earnings of $1.16 per share, excluding
non-recurring items,
$0.09 worse thanthe Capital IQ Consensus Estimate
of $1.25; revenues rose 0.9% year/year to $462.73 mln vs the
$476.27 mln consensus. Co issues
downside guidancefor Q4, sees EPS of $1.01-1.13,
excluding non-recurring items, vs. $1.22 Capital IQ Consensus
Estimate.
At the midpoint of guidance for the fourth quarter of fiscal
2015, total sales volume is expected in the range of down 7 percent
to down 3 percent compared to the prior year.Operating margin is
expected to be approximately 22 percent at this midpoint.
GAAP diluted earnings per share are expected to be in the range
of $1.00 to $1.12, inclusive of a $0.01 per share short term
purchase accounting charge related to the step-up in value of
acquired inventory. This outlook is also inclusive of an
unfavorable currency translation effect of approximately $0.14 per
share at current exchange rates.
4:31 pm Sysco names Nelson Peltz and Josh Frank from Trian Fund
Management to its Board effective Aug. 21, 2015 (
SYY): With the election of Peltz and Frank,
the Sysco Board of Directors expands to 12 members, 10 of whom are
independent. Peltz and Frank will be included in the company's
slate of nominees for election to the Board at the 2015 Annual
Meeting of Shareholders. Peltz will join the Corporate Governance
and Nominating Committee and Frank will join the Compensation and
Finance Committees of Sysco's Board.
4:30 pm Gilead Sciences: European Medicines Agency validates
co's marketing application for single tablet regimen containing
rilpivirine, emtricitabine and tenofovir alafenamide for HIV
treatment (
GILD): Co announces that its Marketing
Authorization Application for an investigational, once-daily single
tablet regimen that combines emtricitabine 200 mg, tenofovir
alafenamide 25 mg and rilpivirine 25 mg (R/F/TAF) has been fully
validated and is now under evaluation by the European Medicines
Agency. Emtricitabine and tenofovir alafenamide are marketed by
Gilead Sciences and rilpivirine is marketed by Janssen Sciences
Ireland UC, one of the Janssen Pharmaceutical Companies of Johnson
& Johnson (
JNJ). A fourth investigational TAF-based regimen
containing Gilead's TAF, emtricitabine and cobicistat, and
Janssen's darunavir (D/C/F/TAF) is also under development under a
separate licensingagreement.
4:30 pm Cinemark names Mark Zoradi to succeed Tim Warner as CEO
effective August 24, 2015 (
CNK): Warner has been named as Cinemark's
Executive Vice-Chairman. Cinemark Director Mark Zoradi most
recently served as the Chief Operating Officer of Dreamworks
Animation SKG (
DWA)
4:27 pm GigOptix announces a public offering of common
stock;size and terms not disclosed, but to include up to 282K
shares offered by certain officers and directors (
GIG): Co expects to use the net proceeds
from the offering of the shares which it is selling for potential
acquisitions for strategic growth, including the acquisition of
critical technologies and scalable businesses. The focus will be on
multiple attractive global targets, including entities that the
company has been tracking for the last couple of years.
4:21 pm The Fresh Market misses by $0.04, misses on revs; guides
FY16 EPS below consensus, revs below consensus; announces $200 mln
repurchase program (
TFM):
Reports Q2 (Jul) earnings of $0.36 per share, excluding
non-recurring items,
$0.04 worse thanthe Capital IQ Consensus Estimate
of $0.40; revenues rose 4.7% year/year to $442.1 mln vs the $458.6
mln consensus. Co issues
downside guidancefor FY16, sees EPS of $1.55-1.65,
excluding non-recurring items, vs. $1.84 Capital IQ Consensus
Estimate; sees FY16 revs of $1.84-1.88 bln vs. $1.94 bln Capital IQ
Consensus Estimate.
"Our second quarter results reflect
changes in our pricing and promotional investments, which
were less effective than anticipatedin a more challenging
macro environment. However, the financial health of the business
remains sound as we continue to deliver some of the strongest
adjusted EBITDA margins and returns on invested capital in the
industry."
In August, the Company's Board of Directors authorized a $200
million stock repurchase program.
4:15 pm Pioneer Power Solutions consolidates its dry-type
transformer production activities, to a new and larger facility
located in Reynosa, Mexico. (
PPSI):
The new facility will be near Pioneer's existing location in
Reynosa, which will be vacated by the second quarter of 2016. In
addition, production at Pioneer's facility located in Farnham,
Quebec, will be transitioned in stages to Reynosa, by June
2016.
The plant consolidation is anticipated to significantly reduce
Pioneer's manufacturing cost, make the Company more competitive in
its standard and custom product offerings, and assist Pioneer to
better serve its North American distribution, OEM and industrial
and commercial customers
4:15 pm Mentor Graphics beats by $0.22, beats on revs; guides
OctQ EPS below consensus, revs below consensus; raises FY16
guidance; stock halted, set to re-open at 16:40 ET (
MENT):
Reports Q2 (Jul) earnings of $0.36 per share, excluding
non-recurring items,
$0.22 better thanthe Capital IQ Consensus Estimate
of $0.14; revenues rose 8.0% year/year to $281.1 mln vs the $250.1
mln consensus.
Co issues
downside guidancefor Q3 (Oct), sees EPS of approx
$0.27, excluding non-recurring items, vs. $0.32 Capital IQ
Consensus Estimate; sees Q3 revs of approx $290 mln vs. $299.85 mln
Capital IQ Consensus Estimate.
Co raises guidance for FY16, sees EPS of approx $1.90,
excluding non-recurring items, vs. $1.89 Capital IQ Consensus
Estimate; sees FY16 revs of approx $1.285 bln vs. $1.28 bln Capital
IQ Consensus Estimate.
"Revenue was an all-time second quarter record and Mentor
exceeded non-GAAP earnings per share guidance for the 26th
consecutive quarter...Customer need for increased amounts of
software drove early renewal activity and the upside in the
quarter. Demand was strongest in both Design to Silicon and
Scalable Verification. During the quarter we added five new
emulation customers, including both a Top Ten chip company and a
start-up."
4:13 pm American Eagle announces the resignation of Chief
Marketing Officer Michael Leedy, effective September 15, 2015 (
AEO): Co stated that Chief Marketing
Officer, Michael Leedy, will step down from his position, effective
September 15, 2015, with a commitment to serve in an advisory role
if needed to ensure a smooth transition. The company has an active
search for a successor underway.
4:13 pm Salesforce.com beats by $0.02, beats on revs; guides Q3
EPS in-line, revs above consensus; guides FY16 EPS in-line, revs
above consensus (
CRM):
Reports Q2 (Jul) earnings of $0.19 per share, excluding
non-recurring items, $0.02 better than the Capital IQ Consensus
Estimate of $0.17; revenues rose 23.5% year/year to $1.63 bln vs
the $1.6 bln consensus.
Cash generated from operations for the fiscal second quarter
was $304 million, an increase of 24% year-over-year. Total cash,
cash equivalents and marketable securities finished the quarter at
$2.07 billion.
Deferred revenue on the balance sheet as of July 31, 2015 was
$3.03 billion, an increase of 29% year-over-year, and 33% in
constant currency. Unbilled deferred revenue, representing business
that is contracted but unbilled and off balance sheet, ended the
quarter at approximately $6.2 billion, up 24% year-over-year.
Billings were +19.4% y/y
Co issues
mixed guidance for Q3, sees EPS of $0.18-0.19,
excluding non-recurring items, vs. $0.18 Capital IQ Consensus
Estimate; sees Q3 revs of $1.69-1.70 bln vs. $1.68 bln Capital IQ
Consensus Estimate. Co issues
mixed guidance for FY16, sees EPS of $0.70-0.72,
excluding non-recurring items, vs. $0.71 Capital IQ Consensus
Estimate; sees FY16 revs of $6.660-6.625 bln (Prior $6.52-6.55 bln)
vs. $6.55 bln Capital IQ Consensus Estimate.
4:12 pm Brocade beats by $0.05, reports revs in-line; guides Q4
EPS in-line, revs in-line (
BRCD):
Reports Q3 (Jul) adj earnings of $0.27 per share,
$0.05 better thanthe Capital IQ Consensus Estimate
of $0.22; revenues rose 1.2% year/year to $551.8 mln vs the $550.53
mln consensus. Co reported Q3 Non-GAAP gross margin of 68.6% vs
67.2% last year.
Co issues
in-line guidancefor Q4, sees EPS of $0.23-0.25 vs.
$0.24 Capital IQ Consensus Estimate; sees Q4 revs of $565-585 mln
vs. $573.73 mln Capital IQ Consensus Estimate.
Guidance: "For Q4 15, we expect SAN revenue to be up 1% to 5%
Qtr./Qtr....We typically see stronger buying patterns from our OEM
partners in our fiscal Q4....We expect our Q4 15....IP Networking
revenue to be up 6.5% to 11% Qtr./Qtr., principally driven by our
IP growth initiatives....We expect our Global Services revenue to
be flat to up 1% Qtr./Qtr....We expect Q4 15 non-GAAP gross margin
to be between 67.5% to 68.5%"
4:11 pm Hewlett-Packard beats by $0.03, reports revs in-line;
guides Q4 EPS below consensus; separation on track (
HPQ):
Reports Q3 (Jul) earnings of $0.88 per share, excluding
non-recurring items,
$0.03 better thanthe Capital IQ Consensus of
$0.85; revenues fell 8% YoY (-2% ex-FX) to $25.35 bln vs the $25.45
bln consensus.
Personal Systems revenue was down 13% YoY with a 3.0% operating
margin. Commercial revenue decreased 9% and Consumer revenue
decreased 22%. Total units were down 11% with Notebooks units down
3% and Desktops units down 20%.
Printing revenue was down 9% YoY with a 17.8% operating margin.
Total hardware units were down 2% with Commercial hardware units
down 6% and Consumer hardware units flat. Supplies revenue was down
6%.
Enterprise Group revenue was up 2% YoY with a 13.0% operating
margin. Industry Standard Servers revenue was up 8%, Storage
revenue was down 2%, Business Critical Systems revenue was down
21%, Networking revenue was up 22% and Technology Services revenue
was down 9%.
Enterprise Services revenue was down 11% YoY with a 6.0%
operating margin. Infrastructure Technology Outsourcing revenue was
down 13%, and Application and Business Services revenue declined
7%.
Software revenue was down 6% YoY with a 20.6% operating margin.
License revenue was down 11%, support revenue was down 3%,
professional services revenue was down 8% and software-as-a-service
(SaaS) revenue was down 4%.
Co issues
downside guidancefor Q4, sees EPS of $0.92-0.98,
excluding non-recurring items, vs. $1.00 Capital IQ Consensus.
"I am very pleased that we have continued to deliver the
results we said we would, while remaining on track to execute one
of the largest and most complex separations ever undertaken."
4:11 pm AAC Holdings to hold a conference call tonight at 5:30
PM ET to comment on the California Legal case and preview its Q3
operations (
AAC): On the call, the Company will comment
on various matters, including:
Its plan to engage third-party industry experts to
independently review and assess its admission procedures, operating
policies and procedures, and its clinical care
Timeline of disclosures from 2013 to 2015 concerning the
California case
In previewing its Q3 earnings, the co disclosed the
following:
New admissions through August 15, 2015 are 932, up 5% from the
comparable first 45 days of the second quarter of 2015
Average daily residential census through August 15, 2015 is 545
compared with 539 in the second quarter of 2015
Outpatient visits through August 15, 2015 are 1,670, up 47%
from the comparable first 45 days of the second quarter of
2015
Bed count for the third quarter to date is 663 compared with
587 in the second quarter of 2015
The acquisition of 76-bed The Oxford Centre in Etta,
Mississippi and three outpatient facilities for $35 million was
completed on August 10, 2015, and the Company disclosed it will
pursue a significant expansion at this facility over the next 18
months
Construction of the Company's lab expansion in Brentwood,
Tennessee is completed and expected to begin processing samples by
the end of the week
Construction of the Company's 162-bed River Oaks facility
outside Tampa is completed, and the Company is applying for its
license; the facility is on track for an opening in the fourth
quarter of 2015
4:11 pm Closing Market Summary: Stocks Return to February Levels
Amid Global Worries (:WRAPX):
The stock market registered its third consecutive decline on
Thursday with the S&P 500 (-2.1%) slashing below its 200-day
moving average (2,078). The benchmark index slid to levels not seen
since early February while the Nasdaq Composite (-2.8%) displayed
relative weakness throughout the day.
The daylong selloff was brought on by a heightened sense of
uncertainty among investors, pulling the S&P 500 into the red
for 2015 (-1.1%). To be sure, some of the uncertainty (rate-hike
speculation, concerns about the global economy, plunging commodity
prices) had been brewing for a while, whereas today's session
reminded investors about ongoing concerns related to China and
Greece.
Overnight, China's Shanghai Composite tumbled 3.4% amid reports
the country's official GDP target could be lowered to 6.5% from
7.0%. Sellers maintained control despite a CNY120 billion injection
from the People's Bank of China into capital markets.
As for Greece, Prime Minister Alexis Tsipras resigned from his
post and called for a snap election, set for September 20, just
three days after the FOMC concludes its September meeting. It is
worth noting that there are indications Greece's minority parties
could try to form a coalition government, which would block the
September 20 vote.
All ten sectors ended the day in negative territory with
cyclical sectors pacing the retreat while two of four
countercyclical groups (consumer staples and utilities) posted
losses slimmer than 1.0% apiece. The rate-sensitive utilities
sector (-0.6%) ended ahead of its peers thanks to lower Treasury
yields (10-yr yield -4 bps to 2.08%). The utilities sector is the
only group that will enter the Friday session with a razor-thin
week-to-date gain (+0.02%) while the remaining nine groups hold
weekly losses between 0.9% (telecom services) and 5.4%
(energy).
The energy sector has paced this week's retreat, but the
growth-sensitive group finished today's session just behind the
broader market after showing some relative strength in the early
going. That brief strength coincided with an intraday gain in crude
oil, but the energy component retreated during the afternoon to end
the pit session little changed at $41.26/bbl.
Elsewhere among cyclical sectors, heavily-weighted consumer
discretionary (-2.8%) and technology (-2.5%) underperformed
throughout the day, which prevented the market from stringing
together a rebound, considering the two groups represent more than
30% of the entire market.
The top-weighted technology sector suffered from broad weakness
with large cap names like
Apple(AAPL 112.65, -2.36),
Google(GOOGL 679.48, -14.56),
Facebook(FB 90.56, -4.75), and
Microsoft(MSFT 45.75, -0.86) losing between 1.9%
and 5.0%. High-beta chipmakers also registered sharp losses with
the PHLX Semiconductor Index diving 3.8% with all 30 components
ending in the red.
Today's selloff invited above-average participation with more
than 900 million shares changing hands at the NYSE floor.
Economic data included Initial Claims, Existing Home Sales,
Leading Indicators, and Philadelphia Fed Survey:
Initial claims for the week ending August 15 were 277,000, up
from the prior week's downwardly revised level of 273,000 (from
274,000) while the Briefing.com consensus estimate expected a
reading of 272,000
The four-week moving average for claims increased by 5,500 to
271,500, but remains near multi-decade lows
Existing Home Sales for July increased 2.0% from June to an
annualized rate of 5.59 million units while the Briefing.com
consensus expected a reading of 5.42 million
Sales in July were at their highest level since February 2007
and were up 10.3% from the year-ago period, which marked the tenth
consecutive month in which existing home sales increased
year-over-year
The Leading Indicators report for July was down 0.2% while the
Briefing.com consensus expected an increase of 0.2%
The Philadelphia Fed Survey for August rose to 8.3 from 5.7
while economists polled by Briefing.com had expected an improvement
to 7.0
There is no economic data on tomorrow's schedule.
Nasdaq Composite +3.0% YTD
S&P 500 -1.1% YTD
Russell 2000 -2.6% YTD
Dow Jones Industrial Average -4.7% YTD
4:09 pm Targacept completes merger with Catalyst Biosciences;
combined co to be renamed Catalyst Biosciences and trade under
symbol CBIO effective tomorrow (
TRGT): Together with approximately $35
million net cash on Targacept's balance sheet, the combined company
has approximately $39 million in cash to advance its research and
development efforts, including the clinical development of CB 813d,
Catalyst's next-generation and long-acting coagulation Factor
VIIa.
4:08 pm ScanSource beats by $0.08, beats on revs; guides SepQ
EPS below consensus, revs in-line (
SCSC):
Reports Q4 (Jun) earnings of $0.66 per share, excluding
non-recurring items,
$0.08 better thanthe Capital IQ Consensus Estimate
of $0.58; revenues rose 13.0% year/year to $856.7 mln vs the $820.4
mln consensus. For Q1 (Sep), co sees EPS of $0.50-0.58, excluding
non-recurring items, vs. $0.73 Capital IQ Consensus Estimate; sees
Q1 revs of $820-880 mln vs. $876.7 mln Capital IQ Consensus
Estimate.
"Fiscal year 2015 was a year where we accomplished the
successful go-live for our SAP ERP global system in Europe,
completed strategic acquisitions of two value-added international
communications distributors, and returned cash to shareholders
through share repurchases."
4:08 pm Hennessy Advisors announces commencement of a self
tender offer, to purchase up to 1 mln shares of its common stock,
for a price of $25/share (
HNNA): Co intends to finance this
self-tender offer with an expansion of its current loan as well as
with a portion of available cash from its balance sheet
4:07 pm Gap reports Q2 results in-line with preannouncement;
reaffirms FY16 EPS guidance (
GPS):
Reports Q2 (Jul) earnings of $0.64 per share, excluding
non-recurring items,
in-linewith the Capital IQ Consensus of $0.64;
revenues fell 2.1% year/year to $3.9 bln vs the $3.97 bln
consensus.
Preannounced: EPS $0.63-0.64 vs. $0.66 consensus;
rev $3.9 bln vs. $3.97 bln consensus on Aug 10.
Q2 comps fell 2%.
Gap Global: negative 6 percent versus negative 5 percent last
year
Banana Republic Global: negative 4 percent versus flat last
year
Old Navy Global: positive 3 percent versus positive 4 percent
last year
Co
reaffirms guidancefor FY16, sees EPS of
$2.75-2.80, excluding non-recurring items, vs. $2.74 Capital IQ
Consensus Estimate.
4:07 pm Intuit beats by $0.06, misses on revs; guides Q1 EPS
in-line, revs below consensus; sees FY16 below consensus; to divest
Demandforce, QuickBase and Quicken (
INTU):
Reports Q4 (Jul) loss of $0.05 per share, excluding
non-recurring items,
$0.06 better thanthe Capital IQ Consensus Estimate
of ($0.11); revenues rose 7.2% year/year to $696 mln vs the $735.93
mln consensus.
Co issues
in-line guidancefor Q1, sees EPS of $0.03-0.04,
excluding non-recurring items, vs. $0.03 Capital IQ Consensus;
downsideQ1 revs of $660-680 mln vs. $776.13 mln
Capital IQ Consensus Estimate.
Co sees FY16 EPS of $3.40-3.45, excluding non-recurring items,
vs. $3.82 Capital IQ Consensus; sees FY16 revs of $4.53-4.60 bln
vs. $5.04 bln Capital IQ Consensus Estimate.
The co also announced its intent to divest Demandforce,
QuickBase and Quicken to focus on and invest in businesses that
strengthen the ecosystem and align with two strategic goals: to be
the operating system behind small business success, and to do the
nations' taxes in the U.S. and Canada.
"Divesting Demandforce, QuickBase and Quicken enables both
Intuit and these businesses to focus on meeting the needs of their
respective customers, while allowing Intuit to accelerate our
ability to deliver on our objectives," said Neil Williams, chief
financial officer. "We are confident about finding the right
outcome for each business. Until then, we will continue to sell and
support all of our current products; we will not waver in our
commitment to customers' success."
As a result of this decision, revenue in fiscal 2016 will
be reduced by ~$250 million and non-GAAP earnings per share will be
reduced by ~$0.10,as the co reports these held-for-sale
assets as discontinued operations."
4:06 pm Ross Stores beats by $0.01, beats on revs; maintains
cautious outlook for the second half (
ROST):
Reports Q2 (Jul) earnings of $0.63 per share,
$0.01 better thanthe Capital IQ Consensus Estimate
of $0.62; revenues rose 8.7% year/year to $2.97 bln vs the $2.94
bln consensus. "While we hope to do better, we are maintaining a
cautious outlook for the second half when we face more challenging
sales and earnings comparisons. In addition, the macro-economic and
retail landscapes remain uncertain."
Guidance for Q3:sees EPS of $0.48-0.50 vs. $0.50
Capital IQ Consensus Estimate. Sees Same Store Sales up 1% to 2% on
top of a 4% increase in the prior year.
Guidance for Q4 (Jan):sees EPS of $0.60-0.63 vs.
$0.65 Capital IQ Consensus Estimate. Sees Same Store Sales flat to
up 1% versus a 6% gain in the prior year.
Guidance for FY16:sees EPS of $2.40-2.45 vs. $2.45
Capital IQ Consensus Estimate.
4:05 pm Credit Acceptance Corp. completes a $300.2 mln
asset-backed non-recourse secured financing (
CACC): Pursuant to this transaction, the co
contributed loans having a net book value of approximately $375.5
million to a wholly-owned special purpose entity which will
transfer the loans to a trust, which will issue three classes of
notes
4:05 pm Ryman Hospitality announces Board authorization for a
$100 million share repurchase authorization, using cash on hand and
borrowings under its revolving credit line (
RHP):
4:05 pm Intrexon announces a public offering of common stock;
size and terms not disclosed (
XON): Co intends to use the net proceeds
from the offering for general corporate purposes as well as for
strategic acquisitions or investments.
4:05 pm Accuray misses by $0.02, reports revs in-line; guides
FY16 revs in-line (
ARAY):
Reports Q4 (Jun) loss of $0.07 per share,
$0.02 worse thanthe Capital IQ Consensus Estimate
of ($0.05); revenues fell 0.2% year/year to $101.8 mln vs the
$102.4 mln consensus.
Total gross profit margins expanded to 40 percent from 38
percent in the prior fiscal year fourth quarter.
Ending product backlog was $375.0 million, approximately 3
percent higher than backlog at the end of the prior fiscal year
fourth quarter, or a growth of 10 percent on a constant currency
basis.
Guidance:Co issues
in-line guidancefor FY16, sees FY16 revs of
$395-$410 mln vs. $405.91 mln Capital IQ Consensus Estimate.
Accuray expects fiscal 2016 adjusted EBITDA to be in the range of
$25 million to $35 million. This represents growth of 112-197% over
adjusted EBITDA in fiscal 2015, reflecting flat to moderately
improving gross margins and ongoing expense control.
4:05 pm New York & Co beats by $0.01, beats on revs (
NWY):
Reports Q2 (Jul) earnings of $0.03 per share, excluding
non-recurring items,
$0.01 better thanthe Capital IQ Consensus Estimate
of $0.02; revenues rose 4.3% year/year to $235.7 mln vs the $231.9
mln consensus.
For Q3 (Oct), co says net sales and comparable store sales are
expected to increase by a low to mid-single-digit percentage versus
last year.
Same store sales in Q2 (Jul) increased +3.8%.
4:03 pm Two Harbors Investment names Jeffrey Hurley as Managing
Director and Chief Technology Officer (
TWO): Prior to joining the company, Mr.
Hurley served as Managing Director, Head of Technology, at the
Canada Pension Plan Investment Board since 2011.
4:03 pm Fuwei Films reports Q2 EPS of RMB1.12 or $0.18 vs
RMB1.76 year ago; net sales -4.7% to RMB66.7 mln ($10.8 mln) (
FFHL):
4:03 pm Tuesday Morning misses by $0.09, misses on revs (
TUES): Reports Q4 (Jun) loss of $0.10 per
share, excluding non-recurring items,
$0.09 worse thanthe Capital IQ Consensus Estimate
of ($0.01); revenues rose 0.2% year/year to $213.03 mln vs the
$219.48 mln consensus. For the fourth quarter of fiscal 2015,
Tuesday Morning reported gross profit of $73.2 million and gross
margin of 34.4% compared to $74.7 million of adjusted gross profit
and adjusted gross margin of 35.2% in the fourth quarter of fiscal
2014. This reduction was primarily due to increased supply chain
freight costs, partially offset by reductions in markdowns.
Inventories at the end of the fourth quarter of fiscal 2015 were
$210.0 million compared to $207.7 million at the end of the fourth
quarter of fiscal 2014, up $2.3 million or 1.1%. The Company's
inventory turnover for the trailing five quarters is 2.6 turns,
consistent with our prior year trailing five quarter turnover of
2.6 turns.
4:02 pm Arbor Realty Trust closes a $350 mln commercial real
estate mortgage securitization (
ABR): An aggregate of approximately $268
million of investment grade-rated notes were issued and Arbor
retained an equity interest in the portfolio of approximately $82
million. The $350 million of collateral includes approximately $47
million of additional capacity to finance future loans for a period
of up to 120 days from the closing date of the Securitization.
4:02 pm Astec Industries announces a $30 mln agreement to build,
deliver and install the first production line of a new turnkey wood
pellet production facility (
ASTE): The $30 million agreement with
Highland Pellets, LLC includes the option to add additional
production lines, related equipment and installation services which
could bring the total order amount to $143 million. Astec expects
to deliver the first production line and related equipment no later
than early 2016.
4:01 pm Argan's Gemma Power Systems subsidiary receives an
Interim Notice to Proceed, to construct a 475 MW natural gas-fired
power plant in Middletown, OH, for NTE Energy (
AGX):
4:01 pm Constellium announces West Virginia Economic Development
Authority approval for a partial financing of its $35 million
investment in its Ravenswood plant (
CSTM): Co announced that the West Virginia
Economic Development Authority has approved partial financing of
its previously communicated investment of $35 million at its
Ravenswood plant. The $15 million, 15-year loan financing will
contribute to the installation of a new, 800 Kt furnace, primarily
dedicated to the manufacturing of advanced aluminium alloys. The
new equipment is due to start production mid-2016
4:01 pm Civitas Solutions announces that Executive Chairman
Edward Murphy has elected to retire at the end of the current
calendar year (
CIVI): Murphy's decision completes the
transition of the Company's executive leadership that began on
January 1, 2014 when Bruce F. Nardella succeeded Murphy as Chief
Executive Officer. Murphy has also informed the Company's Board of
Directors that he will not seek re-election as a Director at the
Company's 2016 annual meeting of stockholders scheduled for next
March.
3:50 pm Casella Waste prices its offering of $15 mln in Finance
Authority of Maine, Solid Waste Disposal Revenue Bonds Series 2015
at 5.125%, with maturity at 2035 (
CWST): The net proceeds of the Bonds will
enable Casella to finance or refinance the costs of certain of its
solid waste landfill facilities and solid waste collection,
organics and transfer, recycling and hauling facilities
3:36 pm Earnings Calendar (:SUMRX):
Today after the close look for the following companies to
report:
HPQ, GPS, ROST, CRM, SCSC, INTU, BRCD, NDSN, TFM, MENT, NWY,
TUES, JBSS, UEPS, CRMT, ARAY
Tomorrow before the open look for the following companies to
report:
DE, FL, HIBB, GMAN, DSKY
3:33 pm Treasury Market Summary (
BONDX):
Treasuries Rally on Global Risk Aversion
The Treasury complex rallied hard for a second straight day
after global equities were repriced lower on falling commodity
prices and Asian growth worries. The yield curve flattened sharply
with 10's and 30's making the big gains
Yield Check:
2-yr: +1 bp to 0.67%
5-yr: -2 bps to 1.49%
10-yr: -5 bps to 2.08%
30-yr: -6 bps to 2.75%
News:
Initial Jobless Claims for the week ended 8/15 edged higher to
277K from 274K in the prior week. The Briefing.com consensus
estimate was 272K
Continuing Jobless Claims for the week ended 8/8 fell to 2254K
from 2273K. The Briefing.com consensus was 2265K
Existing Homes Sales rose to their highest level since February
2007. For July, sales were 5.59 mln versus the Briefing.com
consensus of 5.42 mln and 5.49 mln in June
The Philadelphia Fed also surpassed expectations, rising to 8.3
in August from 7.0 in July. The Briefing.com consensus was for 5.7
After the Empire State index, released on Monday, cratered to
its lowest level since the recession, market analysts speculated
that the same weakness might show up in the Philly Fed. It did not
The details of the survey showed a deceleration in the pace of
expansion for the new orders index (to 5.8 from 7.1), but a strong
acceleration in shipments (to 16.7 from 4.4), the number of
employees (to 5.3 from -0.4), inventories (to 0.2 from -5.7), and
the average employee workweek (to 8.5 from 4.0) indexes
July Leading Indicators fell 0.2% in July, below the
Briefing.com consensus for a gain of 0.2% and the prior reading of
0.6%
The much weaker-than-expected level of building permits seen in
the July Housing Starts report accounted for the sharp difference
between the actual number and what was expected by economists as it
subtracted 0.54 percentage points from the LEI. (Note: the
consensus estimate was not redone between the time of the Housing
Starts report and the release of the LEI.)
The $16 bln 5-year TIPS auction (reopening) was met with solid
demand:
High yield: 0.305%
Bid-to-cover: 2.58
Indirect bid: 76.4% (largest on record)
Direct bid: 0.5%
Greek Prime Minister Alexis Tsipras resigned to set off an
election on September 20th. Greek law says that the largest
opposition party, New Democracy, gets three days to try to form a
government. Evangelos Meimarakis, New Democracy's leader, may try
to do so and thereby avoid an election
Commodities:
WTI crude: -0.48% to $41.07/bbl
Gold: +2.07% to 1,151.30/troy oz.
Copper: +2.00% to $2.3215/lb.
Currencies:
EUR/USD: +0.72% to $1.1202
USD/JPY: -0.34% to 123.51
Data Out Friday:
There are no market-moving events scheduled
3:31 pm Ecology and Environment is one of seven firms awarded a
three year, $90 mln shared capacity IDIQ MATO contract by the US
Army (
EEI): Co is one of seven firms awarded an
Indefinite Delivery/Indefinite Quantity, Multiple Award Task Order
Contract to provide Architect-Engineer services in support of the
Northwest Division of the U.S. Army Corps of Engineers' Hazardous,
Toxic, and Radioactive Waste and environmental missions. The
three-year contract includes one optional two-year extension period
and has a shared capacity of $90 million among the firms awarded
contracts.
3:28 pm SPX 500 poised for the lowest daily close in nearly 5
months; SPX now @ 2045.01 -34.60 (-1.66%) (
SPY):
Price is now well below the widely followed 200d moving
avg.
The Jul. daily close low stands @ 2046.68. Any close below that
challenges the Mar. 11, 2015 daily close @ 2040.24.
3:09 pm Penn Natl Gaming receives approval from the Nevada
Gaming Commission to complete its acquisition of Tropicana Las
Vegas; purchase completion expected on August 25, 2015 (
PENN):
3:02 pm FirstMerit Corp increases quarterly dividend to $0.17
from $0.16/share (
FMER):
3:01 pm First Financial prices its $120 mln offering of
subordinated notes due 2025 at 5.125% (
FFBC): Co intends to use the net proceeds
from the offering for general corporate purposes, including
potential stock repurchases and capital to support growth
2:57 pm Currency Market Summary (
BONDX):
Dollar Drops Against Safe Havens
The U.S. Dollar Index fell 0.36% to 96.02today in
response to lower Treasury yields which reduced the rate of return
on long-dollar carry trades. The Treasuries had not declined on the
basis of U.S. economic data, which was better than expected on
balance, but in response to declining U.S. equities which are
finally reacting to developments abroad
Existing Homes Sales rose to their highest level since February
2007. For July, sales were 5.59 mln versus the Briefing.com
consensus of 5.42 mln and 5.49 mln in June
The Philadelphia Fed surpassed expectations, rising to 8.3 in
August from 7.0 in July. The Briefing.com consensus was for 5.7
July Leading Indicators fell 0.2% in July, below the
Briefing.com consensus for a gain of 0.2% and the prior reading of
0.6%
EUR/USD: +0.69% to $1.1198
Germany's Producer Price Index showed no change in July after a
0.1% fall in June. The market had been expecting another decline
Greek Prime Minister Alexis Tsipras resigned following the lack
of Syriza support for the austerity measures he had agreed to with
Greece's creditors
The elections are to be on September 20th. The election, no
matter the result, may create concern about implementation of the
bailout agreement and, consequently, further money from the
European Stability Mechanism
GBP/USD: -0.06% to $1.5673
In the U.K., Retail Sales rose 0.1% m/m in July, worse than
expected but better than the 0.1% decline in June
USD/CHF: -0.40% to 0.9617
The Swiss trade surplus rose to a better-than-expected 3.741
bln francs in July from 3.509 bln francs in June
USD/JPY: -0.39% to 123.44
In Japan, the Reuters Tankan Index rose to 17 in August from 14
in July
USD/CAD: -0.15% to 1.3100
Canadian Wholesale Sales jumped 1.3% m/m in June, better than
both expectations and the 0.9% fall in May
AUD/USD: -0.23% to $0.7339
NZD/USD: +0.35% to $0.6623
2:54 pm Floor Talk (:TALKX):
The U.S. stock market has gotten hit hard today by a battery of
concerns that all tie back into a heightened feeling of uncertainty
that has promoted a risk-off disposition:
There is uncertainty about the Federal Reserve -- not just the
timing of the rate hike, but about the Federal Reserve's
credibility
There is uncertainty about the global economy -- tied up in the
recognition that commodity prices of just about every stripe have
been hit hard
There is uncertainty about the Greek bailout again -- wrapped
up in today's announcement that Prime Minister Tsipras has
submitted his resignation and is seeking a snap election
There is uncertainty about the market's behavior -- driven by
the stepped-up selling interest in former leaders (eg. Disney and
Apple), momentum stocks (eg. Netflix), the inability of the energy
sector (-1.7%) to find a bottom, and the financial sector (-1.7%)
rolling over
There is uncertainty about the U.S. economy -- linked to a
yield curve that continues to flatten despite all of the prior talk
about how the U.S. economy is gathering steam
The uncertainty and a general sense of concern about current
matters has manifested itself in the
CBOE Volatility Index(VIX 18.01, +2.76), which is
up 18% today and 40% for the week, and the outperformance of gold
(+2.2% at $1153.00/troy oz.) and gold mining stocks.
The test of investor confidence is on as the S&P 500,
trading above 2100 just three sessions ago, is now flirting with
2040, which is the bottom of the trading range that has held intact
since early February. The market either holds that line or another
wave of selling follows.
2:44 pm Community Bank increases its quarterly dividend to
$0.31/share, up from $0.30/share (
CBU):
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