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Morning Summary

Jayme Casey, Pat O'Donohue (203) 861-7650 | 2.23.2017

News

Global equity markets are trading either side of unchanged on below average volumes as investors digest a fresh batch of economic data and corporate earnings. The trading during the Asian hours was extremely quiet and the Nikkei finished unchanged for the second consecutive day. In China, the Shanghai could not keep its multi day winning streak alive, finishing down 0.3%. Traders appeared to be uninspired by the PBOC's relatively light capital injection that totaled only CNY50 bln. Across the pond, the major EU indices are also doing very little despite a very heavy dose of corporate results. The overall take aways were mixed, with strong numbers out of Barclays, Telefonica and Peugeot offset by likes of Veolia, Swiss Re and AXA. Macro related data also did little to drive price action, particularly as the Final Q4 German GDP came in line with estimates. French bonds advanced after a pact between independent presidential candidate Emmanuel Macron and centrist Francois Bayrou helped ease fears the country could elect a leader who favors leaving the European Union. US futures are little changed ahead of today’s Chicago Fed Nat Activity Index, claims data, House Price Index, KC Fed Manf Activity. Additionally, the Fed's Lockhart and Kaplan are scheduled to speak. Oil climbed back above $54 after an industry report showed US stockpiles fell. In M&A news, AGN has "no interest" in VRX, most likely not even "in pieces," CEO Brent Saunders said during an interview at Bloomberg headquarters in New York. In earnings related news, CHK beats by $0.01, beats on revs. CNK beats by $0.22, reports revs in-line, increases quarterly dividend to $0.29/share from $0.27/share. DNR beats by $0.01, beats on revs. FIT misses by $0.03, misses on revs, guides FY17 EPS in-line, revs below consensus. HPQ beats by $0.01, beats on revs and guides Q2 EPS in-line. HRL misses by $0.01, reports revs in-line and lowers FY17 EPS below consensus. IRM beats by $0.04, reports revs in-line and lowers FY17 guidance. KSS beats by $0.11, reports revs in-line, widens FY17 EPS guidance range and raises quarterly dividend 10% to $0.55/share. LB beats by $0.13, reports revs in-line and guides FY18 EPS below consensus. LHO reports FFO in-line, beats on revs. LKQ reports EPS in-line, misses on revs and guides FY17 EPS below consensus. NBR beats by $0.04, reports revs in-line. O beats by $0.02, beats on revs and guides FY17 FFO below consensus. PF reports EPS in-line, revs in-line and guides FY17 EPS above consensus. PSA beats by $0.58, beats on revs. RIG beats by $0.58, beats on revs. RRC beats by $0.14, misses on revs. SQ beats by $0.04, beats on revs, guides Q1 EPS above consensus, guides FY17 EPS above consensus, revs in-line. STWD beats by $0.03, misses on revs and guides FY17 EPS in-line. TSLA reports Q4 results, guides 1H17 production, Model 3 on track for initial production in July. In other news, AAL files mixed securities shelf offering. GILD granted orphan designation by the FDA for Epclusa for the treatment of pediatric chronic hepatitis C virus infection. PRU, facing regulatory scrutiny and a lawsuit over a sales relationship with WFC, said it may press its partner to cover costs after halting the offering in another sign the bank has yet to contain the full fallout of its bogus-account scandal. TIF pulls back in after JANA Partners filed a 13D confirming its 4.9% active stake. XOM disclosed the deepest reserves cut in its modern history as prolonged routs in oil and natural gas markets erased the value of a $16bn oil-sands investment and other North American assets, according to Bloomberg.

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TMT

Jared Mancuso, Sean Greeley (203) 861-7650 | 2.23.2017

News

ARRS Arris to acquire Ruckus Wireless and ICX switch business for $800M in cash from Broadcom..  ARRIS International Plc reports Q4 EPS $0.79 ex-items vs FactSet $0.70 ($30.70) Reports Q4Revenue $1.76B vs FactSet $1.70BOrder backlog $1.106B Q1 GuidanceEPS $0.36-0.40 ex-items vs FactSet $0.67

Revenue $1.435-1.485B vs FactSet $1.66

IMPV  Imperva Chairman and CEO Anthony Bettencourt discloses net sale of 34.9K shares -- Form 4

DMRC  DIgimarc reports Q4 EPS ($0.57) vs FactSet  Reports Q4:   Revenue $5.2M vs FactSet $5.5M

TSRA Tessera Holding Corp. reports Q4 EPS $0.45 ex-items vs FactSet $0.53  Revenue $70.1M vs FactSet $72.7MQ1 Guidance:

EPS ($0.15)-($0.09) ex-items vs FactSet $0.38

SQ  Square reports Q4 Adjusted EBITDA $29.8M vs FactSet $18.0M Reports Q4: EPS $0.05 ex-items vs year-ago ($0.05Adjusted revenue $191.9M vs FactSet $187.7MQ1 Guidance:Adjusted EBITDA $14M-$18M vs FactSet $13.33M  Adjusted EPS (diluted) $0.00-$0.02

Adjusted revenue $190M-$193M

AXTI  AXT Inc reports Q4 EPS $0.06 vs FactSet $0.03  Reports Q4:  Revenue $20.3M vs FactSet $19.1M

UCTT Ultra Clean Holdings reports Q4 EPS $0.36 ex-items vs FactSet $0.27   Reports Q4: Revenue $174.5M vs FactSet $173.1MGross margin 17.0% vs year-ago 12.9%

WB  Weibo Corporation reports Q4 EPS $0.34 vs FactSet $0.28 Reports Q4: Revenue $212.7M vs FactSet $206.9M  Adjusted EBITDA $78.2M vs FactSet $61.2M -- 2 estimatesMonthly active users ) in December 2016 grew 33% year over year to 313M, 90% of which were mobile users. Average daily active users in December 2016 grew 30% year over year to 139M. Q1 Guidance: Revenue $185M and $190M vs FactSet $184.2M

MITL  Mitel Networks reports Q4 non-GAAP EPS $0.22 vs FactSet $0.23 Reports Q4: Revenue $259.8M vs FactSet $296.7M  Adjusted EBITDA $42.7M vs FactSet $46.8M -- 2 estimates  Q1 Guidance: Revenue $210-230M vs FactSet $254.6M GAAP Gross Margin % 52.0% to 54.0%  Adjusted EBITDA % 6.5% to 10.5%Non-GAAP Net Income 2.0% to 5.0%

COMM CommScope reports Q4 EPS $0.61 ex-items vs FactSet $0.57 Reports Q4: Revenue $1.18B vs FactSet $1.17BQ1 Guidance: EPS $0.49-0.54 vs FactSet $0.59

Revenue $1.10-1.15B vs FactSet $1.17B

COGT Cogent Communications reports Q4 Adjusted EBITDA $37.7M vs FactSet $39.5M; raises dividend Reports Q4: EPS $0.09 vs year-ago $0.06

Revenue $115.6M vs FactSet $115.8M

W Wayfair reports Q4 non-GAAP EPS ($0.34) vs FactSet ($0.50) Reports Q4: Revenue $984.6M vs FactSet $970.2M

Adjusted EBITDA ($12.0M) vs FactSet ($26.2M)

Upgrades/ Downgrades

ARRS Arris to acquire Ruckus Wireless and ICX switch business for $800M in cash from Broadcom..  ARRIS International Plc reports Q4 EPS $0.79 ex-items vs FactSet $0.70 ($30.70) Reports Q4Revenue $1.76B vs FactSet $1.70BOrder backlog $1.106B Q1 GuidanceEPS $0.36-0.40 ex-items vs FactSet $0.67

Revenue $1.435-1.485B vs FactSet $1.66

IMPV  Imperva Chairman and CEO Anthony Bettencourt discloses net sale of 34.9K shares -- Form 4

DMRC  DIgimarc reports Q4 EPS ($0.57) vs FactSet  Reports Q4:   Revenue $5.2M vs FactSet $5.5M

TSRA Tessera Holding Corp. reports Q4 EPS $0.45 ex-items vs FactSet $0.53  Revenue $70.1M vs FactSet $72.7MQ1 Guidance:

EPS ($0.15)-($0.09) ex-items vs FactSet $0.38

SQ  Square reports Q4 Adjusted EBITDA $29.8M vs FactSet $18.0M Reports Q4: EPS $0.05 ex-items vs year-ago ($0.05Adjusted revenue $191.9M vs FactSet $187.7MQ1 Guidance:Adjusted EBITDA $14M-$18M vs FactSet $13.33M  Adjusted EPS (diluted) $0.00-$0.02

Adjusted revenue $190M-$193M

AXTI  AXT Inc reports Q4 EPS $0.06 vs FactSet $0.03  Reports Q4:  Revenue $20.3M vs FactSet $19.1M

UCTT Ultra Clean Holdings reports Q4 EPS $0.36 ex-items vs FactSet $0.27   Reports Q4: Revenue $174.5M vs FactSet $173.1MGross margin 17.0% vs year-ago 12.9%

WB  Weibo Corporation reports Q4 EPS $0.34 vs FactSet $0.28 Reports Q4: Revenue $212.7M vs FactSet $206.9M  Adjusted EBITDA $78.2M vs FactSet $61.2M -- 2 estimatesMonthly active users ) in December 2016 grew 33% year over year to 313M, 90% of which were mobile users. Average daily active users in December 2016 grew 30% year over year to 139M. Q1 Guidance: Revenue $185M and $190M vs FactSet $184.2M

MITL  Mitel Networks reports Q4 non-GAAP EPS $0.22 vs FactSet $0.23 Reports Q4: Revenue $259.8M vs FactSet $296.7M  Adjusted EBITDA $42.7M vs FactSet $46.8M -- 2 estimates  Q1 Guidance: Revenue $210-230M vs FactSet $254.6M GAAP Gross Margin % 52.0% to 54.0%  Adjusted EBITDA % 6.5% to 10.5%Non-GAAP Net Income 2.0% to 5.0%

COMM CommScope reports Q4 EPS $0.61 ex-items vs FactSet $0.57 Reports Q4: Revenue $1.18B vs FactSet $1.17BQ1 Guidance: EPS $0.49-0.54 vs FactSet $0.59

Revenue $1.10-1.15B vs FactSet $1.17B

COGT Cogent Communications reports Q4 Adjusted EBITDA $37.7M vs FactSet $39.5M; raises dividend Reports Q4: EPS $0.09 vs year-ago $0.06

Revenue $115.6M vs FactSet $115.8M

W Wayfair reports Q4 non-GAAP EPS ($0.34) vs FactSet ($0.50) Reports Q4: Revenue $984.6M vs FactSet $970.2M

Adjusted EBITDA ($12.0M) vs FactSet ($26.2M)

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Energy News

 (203) 861-7650 | 2.23.2017

News

WRD WildHorse Resource Corporation announces acquisition of additional Eagle Ford acreage for $15.6M total ($13.59) 

  • Signed purchase and sale agreements to acquire producing and non-producing assets in Burleson County, Texas for approximately $15.6M from multiple sellers. One transaction has closed and the other transactions are expected to close in April 2017.
    • The newly acquired assets consist of 10,535 net acres and 7 operated (9 non-operated) producing wells with combined production of approximately 1,200 gross (195 net) barrels of oil equivalent per day along with significant undeveloped leasehold. The properties are immediately contiguous and complementary to WRD’s existing East Texas Eagle Ford properties and will increase our working interest in over 188 gross locations in the Burleson Main and Burleson North areas.

 

KOS Kosmos Energy completes transaction with BP (BP.LN) in Senegal ($6.03) 

  • Transaction announced 19-Dec-16.

 

PBR PetroquímicaSuape and Citepe Sale Process ($10.76) 

  • Petrobras, in addition to the material fact disclosed on 31-Jan-17, informs that a Regional Federal Court issued a decision today to grant suspensive effect to Petrobras' appeal in the divestment project regarding the sale of Companhia Petroquímica de Pernambuco and Companhia Integrada Têxtil de Pernambuco .
  • With the favorable decision of the Court, Petrobras may continue with this divestment. The project is one of the five transactions which the contracts may be signed pursuant to the preventive order of the Brazilian Federal Accounting Court (TCU), as disclosed in the material fact announced on 20-Dec-16.


REN Resolute Energy 31-Dec reserves 60.3MMBoe vs year-ago 33.1MMBoe ($44.71) 

  • Update:
    • Average of nearly 14,200 Boepd during 2016, above high end of guidance
    • 2016 exit rate was more than 20,800 Boepd
    • Closed a new revolving credit facility with an initial borrowing base of $150M, up from $105M
    • Moody's upgraded credit rating to B3 from Caa2, with stable outlook
    • Closed previously-announced sale of New Mexico properties

 

BTUUQ ACCC issues statement on South32's (S32.AU) proposed acquisition of Peabody Energy's Metropolitan Collieries ($2.97) 

  • The ACCC is concerned that the proposed acquisition may substantially lessen competition in the supply of coking coal to Australian steelmakers.
  • The ACCC’s preliminary view is that coal suppliers outside the Illawarra region may not act as a strong competitive constraint on South32.
  • The ACCC’s final decision will be announced on 6-Apr.

 

GTLS Chart Industries elects current President and COO William Johnson to succeed Samuel Thomas as CEO -- 8-K ($38.51) 

  • Thomas will continue in this executive officer role as the company’s Executive Chairman until the company’s May 2018 Annual Meeting of Stockholders, at which time Thomas will retire from all positions with the company.
  • The transition is effective as of the 2017 annual meeting.

 

ERN Erin Energy CEO Segun Omidele resigned; effective 22-Feb ($3.55) 

  • Omidele also resigned from the board.
  • General Counsel Jean-Michel Malek will serve as Interim CEO, while the board conducts a search for a permanent replacement.


CLD Cloud Peak Energy prices 13.5M share offering at $5.10/share through Credit Suisse, J.P. Morgan and Jefferies ($5.68) 

 

WR Westar Energy reports Q4 EPS $0.38 vs FactSet $0.40; increases dividend ($53.25) 

  • Reports Q4:
    • Revenue $606.5M vs FactSet $651.6M
  • Dividend increase:
    • The board today declared a quarterly dividend of $0.40 per share
    • payable 3-Apr-17, record as of 9-Mar-17
      • The new dividend reflects a 5% increase over the company's previous quarterly dividend of $0.38 per share

 

UNT Unit Corp reports Q4 EPS $0.23 ex-items vs FactSet $0.07 ($25.38) 

  • Reports Q4:
    • Revenue $174.3M vs FactSet $167.3M
    • Adjusted EBITDA $80.7M vs FactSet $68.0M
    • Total equivalent production was 4.2 MMBoe, a decrease of 12% from Q4 of 2015 and unchanged from Q3 of 2016.
      • Liquids (oil and NGLs) production represented 47% of total equivalent production for the quarter.
      • Oil production for the quarter was 7,762 barrels per day, a decrease of 9% from Q4 of 2015 and an increase of 2% over Q3 of 2016.
      • NGLs production for the quarter was 13,790 barrels per day, a decrease of 4% from Q4 of 2015 and a 1% increase over Q3 of 2016.
      • Natural gas production for the quarter was 145,202K cubic feet (Mcf) per day, a decrease of 16% from Q4 of 2015 and essentially unchanged from Q3 of 2016.

 

APA Apache reports Q4 EPS ($0.06) ex-items vs FactSet $0.07 ($54.91) 

  • Reports Q4:
    • Adjusted EBITDAX $878M vs FactSet $916.0M
  • 2017 Outlook
    • Capital budget of $3.1B
      • The majority of the budgeted capital investment, ~65% or $2B, is being directed to growth opportunities in the Permian Basin, of which $500M will be for infrastructure at Alpine High.
      • Internationally, Apache will continue to invest at a level to sustain long-term free cash flow in Egypt and the North Sea.
        • Capital investment in these two regions is expected to total ~$900M and will primarily focus on low-risk development and step-out exploration opportunities.
    • Production will experience a brief decline before transitioning to a strong growth trajectory around mid-2017.
  • Longer Term Outlook:
    • Expects total company production to increase by ~10% annually from Q4 of 2016 to Q4 of 2018
      • Total Midland and Delaware basin production is projected to grow at an annual rate of more than 50% over this same time
      • Oil production growth from the Midland and Delaware basins expected annual rate of ~18%.
    • Apache also provided a preliminary view into 2018 capital, with an expected budget for the year of $3.2B.
      • Like 2017, the 2018 plan is expected to be heavily weighted toward investments in the Permian Basin.

 

FI Frank's International NV reports Q4 EPS ($0.18) ex-items vs FactSet ($0.13) ($12.52) 

  • Reports Q4:
    • Revenue $108.0M vs FactSet $108.2M
    • EBITDA $5.0M vs FactSet ($4.5M)

 

JASO JA Solar expects 2016 revenue to be CNY15-16B vs FactSet CNY16.3B ($5.20) 

  • Total module and cell shipments, including shipments to the company’s own downstream projects, are estimated in the range of 5.1 to 5.2 GW vs prior guidance 4.9-5.0 GW
  • The company expects to announce final results on 16-Mar-17

 

BWEN Broadwind Energy reports Q4 Adjusted EBITDA $2.5M vs FactSet $2.5M -- 2 estimates ($5.23) 

  • Reports Q4:
    • EPS $0.03
    • Revenue $48.2M vs FactSet $44.9M -- 2 estimates
    • The company booked $32.3M of net new orders in Q4 2016, up significantly from $5.0M of net new orders booked in Q4 2015. Towers and Weldments orders, which vary considerably from quarter to quarter, totaled $29.4M in Q4 2016, up substantially from $2.8M in Q4 2015. Gearing orders totaled $2.9M in Q4 2016, compared to $2.1M in Q4 2015.
  • Q1 Guidance:
    • Adjusted EBITDA ~$3M vs FactSet $3.8M
    • Revenue $54M-$56M vs FactSet $63.3M
  • FY Guidance (Dec 2017):
    • Adjusted EBITDA $14M-$16M vs FactSet $14.8M
    • Revenue $210M-$220M vs FactSet $251.9M

 

CHK Chesapeake Energy reports Q4 EPS $0.07 vs FactSet $0.07 ($5.92) 

  • Reports Q4:
    • EBITDA $385.0M vs FactSet $390.6M
    • Average daily production for the 2016 Q4 of approximately 574,500 barrels of oil equivalent (boe) consisted of approximately 90,400 bbls of oil, 2.562 bcf of natural gas and 57,100 bbls of NGL.
    • Average production expenses during the 2016 Q4 were $2.98 per boe, while G&A expenses (including stock-based compensation) during the 2016 Q4 were $1.28 per boe.

 

APLP Archrock Partners, LP reports Q4 Adjusted EBITDA $69.0M vs FactSet $67.1M ($17.70) 

  • Reports Q4:
    • Revenue $135.4M vs FactSet $137.6M
    • Distributable cash flow was $41.3M vs FactSet $44.5M
    • Gross margin was $84.0M, or 62% of revenue compared to $84.6M, or 62% of revenue, in Q3 of 2016 and $97.9M, or 61% of revenue, in Q4 of 2015.


AROC Archrock, Inc reports Q4 Adjusted EBITDA $75.2M vs FactSet $73.8M ($15.85) 

  • Reports Q4:
    • Revenue $193.8M vs FactSet $190.6M -- 1 estimate
    • EPS ($0.06) ex-items
    • Cash available for dividend was $11.5M in Q4 of 2016 compared to $17.2M in Q3 of 2016 and $14.9M in Q4 of 2015
  • Management comments:
    • "Archrock delivered strong gross margins and maintained reduced SG&A and capital expenditure levels in Q4 of 2016,” s
    • The work we accomplished in 2016, including improvements in field operating efficiencies, a 23% reduction in run-rate SG&A from Q1 of 2016, and over $135M in consolidated debt reduction, has positioned us to take advantage of growth opportunities in 2017 and beyond.”
    • “We believe the market is showing signs of a cyclical recovery in our business. Industry conditions are improving and we expect to leverage higher customer activity levels to drive increased orders in 2017.
    • "As a later cycle participant, we believe 2017 will be a transition year and we expect that our earnings will stabilize in the first part of the year and begin to recover in the later part of the year.”
    • “We continue to expect to benefit from the increasing demand for natural gas from LNG and pipeline exports, petrochemical feedstock and power generation.
    • "Our existing idle capacity as well as investment in our compression fleet will enable us to capitalize on opportunities as the predicted growth in U.S. natural gas production occurs”


DNR Denbury Resources reports Q4 EPS ($0.02) ex-items vs FactSet ($0.03) ($2.93) 

  • Reports Q4:
    • Revenue $234M vs FactSet $234.5M
    • Production averaged 60,685 BOE/d, as reported on 14-Feb
    • Adjusted cash flows from operations $53M vs year-ago $129M

 

CRZO Carrizo Oil & Gas reports Q4 EPS $0.44 ex-items vs FactSet $0.32 ($33.24) 

  • Reports Q4:
    • Revenue $143.8M vs FactSet $152.0M
    • Adjusted EBITDA $118.1M vs FactSet $107.1M
  • Q1 Guidance:
    • Total production (Boe/d) 44,400 - 45,667 vs FactSet 46.6K
  • FY Guidance (Dec 2017):
    • Total production (Boe/d) 48,500 - 49,967 vs FactSet 49.1K

 

CVEO Civeo Corp. reports Q4 adjusted EBITDA $17.7M vs 26-Jan guidance $16-22M ($3.26) 

  • Reports Q4:
    • Revenue $90.9M vs 26-Jan guidance $89-92M
    • EPS ($0.15)
  • Q1 Guidance:
    • Revenue $85-90M v. FactSet $93M - 1 estimate
    • EBITDA $16-19M v. FactSet $17.5M - 2 estimates
  • Reaffirms FY Guidance (Dec 2018):
    • Revenue $337-353M vs FactSet $366.2M - 1 estimate
    • EBITDA $60-65M vs FactSet $65.9M - 2 estimates
    • Capital expenditures $15-18M

 

RIG Transocean reports Q4 adjusted EPS $0.63 ($13.28) 

  • Reports Q4:
    • Revenue $974.0M vs FactSet $812.4M

 

SM SM Energy reports Q4 adjusted EBITDAX $186.2M vs FactSet $192.3M ($27.60)

  • Reports Q4:
    • Adjusted EPS ($0.31)
    • Revenue $379.9M vs FactSet $372.8M
  • 2017 operating plan:
    • Total capital spend ~$875M
    • Actual asset divestiture timing: Third-party operated Eagle Ford asset sale assumed to close at the end of February 2017 and the Divide County, North Dakota asset sale assumed to close at the end of Q2 of 2017
    • argets near 150% growth in Midland Basin production and near 50% improvement in the company's operating margin per Boe, for Q4 of 2017 compared with Q4 of 2016
    • three-year operating and financial plan that is expected to generate more than 15% production CAGR from retained assets for 2016-2019, while aligning expected capital expenditures and cash flow from operations beginning in 2019
  • 2017 guidance:
    • Production 40-43 MMboe
      • with oil approximately 29% of quarterly commodity mix through the year as new production begins to offset asset sales. Due to tp he timing of asset sales and development activity, total Company production will decline through Q3 of 2017.


NBR Nabors Industries reports Q4 EPS ($0.30) ex-items vs consensus ($0.33) ($15.44) 

  • Reports Q4:
    • Revenue $538.9M vs consensus $542.2M
    • Adjusted EBITDA $146.0M vs FactSet $145.6M
  • Management commentary:
    • We expect to accelerate NDS growth and deliver on our goal of fully automating our rigs and the drilling process through increased integration. We plan to complete the upgrading of our U.S. fleet into the most modern and capable in the industry. We believe 2017 will allow us to grow our U.S. and International rig counts, while making significant progress in pricing.


SUN Sunoco LP reports Q4 Adjusted EBITDA $154M vs FactSet $171.0M ($27.78) 

  • Reports Q4:
    • Distributable cash flow attributable to partners, as adjusted $63M
    • Revenue $4.31B vs FactSet $4.15B
    • capital expenditures for Q4 were $148.1M
  • Outlook:
    • Excluding acquisitions, SUN expects approximately $200M to be spent on growth capital and approximately $90M to be spent on maintenance capital for the full year 2017.

 

REN Resolute Energy 31-Dec reserves 60.3MMBoe vs year-ago 33.1MMBoe ($44.71) 

  • Update:
    • Average of nearly 14,200 Boepd during 2016, above high end of guidance
    • 2016 exit rate was more than 20,800 Boepd
    • Closed a new revolving credit facility with an initial borrowing base of $150M, up from $105M
    • Moody's upgraded credit rating to B3 from Caa2, with stable outlook
    • Closed previously-announced sale of New Mexico properties

 

ORIG Ocean Rig UDW reports Q4 adjusted EBITDA $242.7M vs FactSet $180.2M ($1.08) 

  • Reports Q4:
    • Revenue $355.4M vs FactSet $304.1M
    • EPS ($45.08)
      • Q4 2016 results include an impairment loss of $3,751.2M, or $45.56 per share, associated with the impairment of the book value of the company's drilling units.
    • Fleet wide utilization for Q4 of 2016 was 95.49%.
  • Restructuring Update
    • The company continues to explore and consider various strategic alternatives with its financial and legal advisors, which may include a possible restructuring of the company's debt. The company expects that any comprehensive deleveraging plan is likely to result in significant dilution to current shareholders and potential losses for other financial stakeholders. If a consensual solution cannot be reached among all stakeholders, the company will consider all available options including implementation of a restructuring plan through schemes of arrangement or under Chapter 11.
  • Recent Updates
    • On 6-Feb-17, the company reached an agreement with Premier Oil and Noble Energy to settle the disputed invoices related to the contract of the Eirik Raude against a total payment of $25.0M. This settles all claims by all parties.
    • On 10-Feb-17, the company reached an agreement with ConocoPhillips to terminate the contract of the Ocean Rig Athena. As part of the agreement, ConocoPhillips will pay a termination fee. The Ocean Rig Athena is presently en-route to its final lay-up location in Greece where the unit will be cold stacked.

 

RRC Range Resources reports Q4 EPS $0.23 ex-items vs FactSet $0.10 ($29.93) 

  • Reports Q4:
    • -GAAP revenues for Q4 2016 totaled $590M
  • Q1 Guidance:
    • 1.92 Bcfe per day with 30% to 32% liquids
  • 2017 Guidance:
    • To average 2.07 Bcfe per day. This equates to a year-over-year growth rate of 33% to 35%.

 

OAS Oasis Petroleum reports Q4 EPS ($0.08) ex-items vs FactSet ($0.12) ($13.66) 

  • Reports Q4:
    • Revenue $218.0M vs FactSet $206.9M
  • 2017 Guidance:
    • Production (Boepd) - 65,500 to 70,500
    • $605M total CapEx budget
    • Completing 76 gross (51.7 net) operated wells in 2017
    • Increasing rig count from two rigs in Wild Basin to four rigs running across the core
    • Investing $110M in OMS capital, focused on Wild Basin gathering systems, and connecting wells that come online outside of Wild Basin
  • Due to increased well performance and updated activity plans, the company is revising its 2017 and 2018 year-end exit rate guidance to 72,000 Boepd and over 83,000 Boepd, respectively. Production growth in 2017 and 2018 is expected to be within cash flow

 

RMP Rice Midstream Partners guides FY17 Adjusted EBITDA $185 -$200M vs FactSet $201.8M ($23.90) 

  • FY17 Guidance:
    • DCF $160 - $170M
    • We expect to increase our annual distribution by 20% while maintaining an average DCF coverage ratio of 1.35x - 1.45x over the course of the year.
  • 2017 Capital budget:
    • Capital budget of $315M to further develop gas gathering and water services assets
      • Gas Gathering and Compression $255M
      • Water Services $60M
    • Forecasted gathering throughput of 1,315 - 1,380 MDth/d, a 34% - 40% increase over 2016 throughput
    • Anticipated water volumes of 1,300 - 1,450M gallons
    • Forecasted 2017 annual distribution growth of 20%


RICE Rice Energy announces 2017 total E&P capital budget of $1.26B ($19.54) 
The company announced its 2017 capital budget and guidance. Estimated capital investments and financial guidance include:

  • $1,035B budget for drilling and completion activity in the Marcellus and Utica dry gas cores
  • Planned Marcellus wells to average 8,500 feet, cost $7.4M to develop ($875 per lateral foot), yield 18.4 Bcf EUR (2.16 Bcf/1000') and expected to generate 100% IRRs at strip pricing
  • Planned Utica laterals to average 10,500 feet (12% longer than 2016), cost $13.0M to develop ($1,235 per lateral foot), yield 24.5 Bcf EUR (2.33 Bcf/1000') and expected to generate 80% IRRs at strip pricing
  • $225M land budget to secure core acreage in Rice's existing focus areas
  • Forecasted 2017 net production of 1,290 - 1,355 MMcfe/d, a 59% increase from 2016
  • Approximately 90% of estimated 2017 production hedged at a weighted average NYMEX floor price of $3.24 per MMBtu
  • Rice Midstream Holdings LLC capital budget of $315M
  • Forecasted RMH gathering throughput of 1,125 - 1,185 MDth/d, a 59% - 67% increase over 2016 throughput


RICE Rice Energy reports Q4 EPS 0.37 ex-items vs FactSet $0.01 ($19.54) 

  • Reports Q4:
    • Revenue $284.0M vs FactSet $269.3M
    • Net production1,145 Mmcfe/d vs FactSet 1,004Mmcf/d
    • Adjusted EBITDAX $202.0M
    • Adjusted Net income $75.6M

 

CHK Chesapeake Energy reports Q4 EPS $0.07 vs FactSet $0.07 (5.92)

  • Reports Q4:
    • EBITDA $385.0M vs FactSet $390.6M
    • Average daily production for the 2016 Q4 of approximately 574,500 barrels of oil equivalent (boe) consisted of approximately 90,400 bbls of oil, 2.562 bcf of natural gas and 57,100 bbls of NGL.
    • Average production expenses during the 2016 Q4 were $2.98 per boe, while G&A expenses (including stock-based compensation) during the 2016 Q4 were $1.28 per boe.


OGE OGE Energy reports Q4 EPS $0.29 vs FactSet $0.36 ($34.95) 

  • FY Guidance (Dec 2017):
    • EPS $1.93-$2.09 vs FactSet $1.88


EE El Paso Electric reports Q4 EPS $0.14 vs FactSet $0.06; updates on Texas Rate Case Filing ($47.25) 

  • Texas Retail Rate Case Filing
    • On 13-Feb-17, the company filed with the City of El Paso, other municipalities incorporated in the company's Texas service territory and the PUCT in Docket No. 46831, a request for an increase in non-fuel base revenues of ~$42.5M.
    • The company invoked its statutory right to have its new rates relate back for consumption on and after 18-Jul-17, which is the 155th day after the filing.
    • The difference in rates that would have been billed will be surcharged or refunded to customers after the PUCT's final order in Docket No. 46831.
    • The PUCT has the authority to require the company to surcharge or refund such difference over a period not to exceed 18 months
  • FY17 Guidance:
    • As the outcome of the rate case discussed above could have a significant impact on the company's results of operations in 2017, the company has decided not to provide earnings guidance at this time


SJW SJW Corp reports Q4 EPS $0.67 vs FactSet $0.65 -- 1 estimate ($48.84) 

  • Reports Q4:
    • Revenue $79.3M vs FactSet $75.0M -- 1 estimate

 

WTR Aqua America reports Q4 EPS $0.28 vs FactSet $0.29 ($30.47) 

  • Reports Q4:
    • Revenue $196.8M vs FactSet $208.3M
  • Reaffirms FY Guidance (Dec 2017):
    • EPS $1.34-1.39 vs FactSet $1.38
    • Same-system operations and maintenance expenses increase of 1 to 2%
    • More than $450M in infrastructure improvements in 2017 for communities served by Aqua
    • More than $1.2B planned through 2019 in existing operations to improve and strengthen systems
    • Aqua Pennsylvania expected to file infrastructure investment charge in 2017 and rate case filing likely in 2018, with resolution expected in 2019
    • Total customer growth of 1.5 to 2%


OGS One Gas, Inc. reports Q4 EPS $0.80 vs FactSet $0.78 ($64.39) 

  • Reports Q4:
    • Net margin increased by $12.0M compared with Q4 2015
  • Guidance
    • On 17-Jan-17, the company announced that its 2017 net income is expected to be in the range of $152M to $162M, or $2.87 to $3.07 per diluted share.

Upgrades/ Downgrades

WRD WildHorse Resource Corporation announces acquisition of additional Eagle Ford acreage for $15.6M total ($13.59) 

  • Signed purchase and sale agreements to acquire producing and non-producing assets in Burleson County, Texas for approximately $15.6M from multiple sellers. One transaction has closed and the other transactions are expected to close in April 2017.
    • The newly acquired assets consist of 10,535 net acres and 7 operated (9 non-operated) producing wells with combined production of approximately 1,200 gross (195 net) barrels of oil equivalent per day along with significant undeveloped leasehold. The properties are immediately contiguous and complementary to WRD’s existing East Texas Eagle Ford properties and will increase our working interest in over 188 gross locations in the Burleson Main and Burleson North areas.

 

KOS Kosmos Energy completes transaction with BP (BP.LN) in Senegal ($6.03) 

  • Transaction announced 19-Dec-16.

 

PBR PetroquímicaSuape and Citepe Sale Process ($10.76) 

  • Petrobras, in addition to the material fact disclosed on 31-Jan-17, informs that a Regional Federal Court issued a decision today to grant suspensive effect to Petrobras' appeal in the divestment project regarding the sale of Companhia Petroquímica de Pernambuco and Companhia Integrada Têxtil de Pernambuco .
  • With the favorable decision of the Court, Petrobras may continue with this divestment. The project is one of the five transactions which the contracts may be signed pursuant to the preventive order of the Brazilian Federal Accounting Court (TCU), as disclosed in the material fact announced on 20-Dec-16.


REN Resolute Energy 31-Dec reserves 60.3MMBoe vs year-ago 33.1MMBoe ($44.71) 

  • Update:
    • Average of nearly 14,200 Boepd during 2016, above high end of guidance
    • 2016 exit rate was more than 20,800 Boepd
    • Closed a new revolving credit facility with an initial borrowing base of $150M, up from $105M
    • Moody's upgraded credit rating to B3 from Caa2, with stable outlook
    • Closed previously-announced sale of New Mexico properties

 

BTUUQ ACCC issues statement on South32's (S32.AU) proposed acquisition of Peabody Energy's Metropolitan Collieries ($2.97) 

  • The ACCC is concerned that the proposed acquisition may substantially lessen competition in the supply of coking coal to Australian steelmakers.
  • The ACCC’s preliminary view is that coal suppliers outside the Illawarra region may not act as a strong competitive constraint on South32.
  • The ACCC’s final decision will be announced on 6-Apr.

 

GTLS Chart Industries elects current President and COO William Johnson to succeed Samuel Thomas as CEO -- 8-K ($38.51) 

  • Thomas will continue in this executive officer role as the company’s Executive Chairman until the company’s May 2018 Annual Meeting of Stockholders, at which time Thomas will retire from all positions with the company.
  • The transition is effective as of the 2017 annual meeting.

 

ERN Erin Energy CEO Segun Omidele resigned; effective 22-Feb ($3.55) 

  • Omidele also resigned from the board.
  • General Counsel Jean-Michel Malek will serve as Interim CEO, while the board conducts a search for a permanent replacement.


CLD Cloud Peak Energy prices 13.5M share offering at $5.10/share through Credit Suisse, J.P. Morgan and Jefferies ($5.68) 

 

WR Westar Energy reports Q4 EPS $0.38 vs FactSet $0.40; increases dividend ($53.25) 

  • Reports Q4:
    • Revenue $606.5M vs FactSet $651.6M
  • Dividend increase:
    • The board today declared a quarterly dividend of $0.40 per share
    • payable 3-Apr-17, record as of 9-Mar-17
      • The new dividend reflects a 5% increase over the company's previous quarterly dividend of $0.38 per share

 

UNT Unit Corp reports Q4 EPS $0.23 ex-items vs FactSet $0.07 ($25.38) 

  • Reports Q4:
    • Revenue $174.3M vs FactSet $167.3M
    • Adjusted EBITDA $80.7M vs FactSet $68.0M
    • Total equivalent production was 4.2 MMBoe, a decrease of 12% from Q4 of 2015 and unchanged from Q3 of 2016.
      • Liquids (oil and NGLs) production represented 47% of total equivalent production for the quarter.
      • Oil production for the quarter was 7,762 barrels per day, a decrease of 9% from Q4 of 2015 and an increase of 2% over Q3 of 2016.
      • NGLs production for the quarter was 13,790 barrels per day, a decrease of 4% from Q4 of 2015 and a 1% increase over Q3 of 2016.
      • Natural gas production for the quarter was 145,202K cubic feet (Mcf) per day, a decrease of 16% from Q4 of 2015 and essentially unchanged from Q3 of 2016.

 

APA Apache reports Q4 EPS ($0.06) ex-items vs FactSet $0.07 ($54.91) 

  • Reports Q4:
    • Adjusted EBITDAX $878M vs FactSet $916.0M
  • 2017 Outlook
    • Capital budget of $3.1B
      • The majority of the budgeted capital investment, ~65% or $2B, is being directed to growth opportunities in the Permian Basin, of which $500M will be for infrastructure at Alpine High.
      • Internationally, Apache will continue to invest at a level to sustain long-term free cash flow in Egypt and the North Sea.
        • Capital investment in these two regions is expected to total ~$900M and will primarily focus on low-risk development and step-out exploration opportunities.
    • Production will experience a brief decline before transitioning to a strong growth trajectory around mid-2017.
  • Longer Term Outlook:
    • Expects total company production to increase by ~10% annually from Q4 of 2016 to Q4 of 2018
      • Total Midland and Delaware basin production is projected to grow at an annual rate of more than 50% over this same time
      • Oil production growth from the Midland and Delaware basins expected annual rate of ~18%.
    • Apache also provided a preliminary view into 2018 capital, with an expected budget for the year of $3.2B.
      • Like 2017, the 2018 plan is expected to be heavily weighted toward investments in the Permian Basin.

 

FI Frank's International NV reports Q4 EPS ($0.18) ex-items vs FactSet ($0.13) ($12.52) 

  • Reports Q4:
    • Revenue $108.0M vs FactSet $108.2M
    • EBITDA $5.0M vs FactSet ($4.5M)

 

JASO JA Solar expects 2016 revenue to be CNY15-16B vs FactSet CNY16.3B ($5.20) 

  • Total module and cell shipments, including shipments to the company’s own downstream projects, are estimated in the range of 5.1 to 5.2 GW vs prior guidance 4.9-5.0 GW
  • The company expects to announce final results on 16-Mar-17

 

BWEN Broadwind Energy reports Q4 Adjusted EBITDA $2.5M vs FactSet $2.5M -- 2 estimates ($5.23) 

  • Reports Q4:
    • EPS $0.03
    • Revenue $48.2M vs FactSet $44.9M -- 2 estimates
    • The company booked $32.3M of net new orders in Q4 2016, up significantly from $5.0M of net new orders booked in Q4 2015. Towers and Weldments orders, which vary considerably from quarter to quarter, totaled $29.4M in Q4 2016, up substantially from $2.8M in Q4 2015. Gearing orders totaled $2.9M in Q4 2016, compared to $2.1M in Q4 2015.
  • Q1 Guidance:
    • Adjusted EBITDA ~$3M vs FactSet $3.8M
    • Revenue $54M-$56M vs FactSet $63.3M
  • FY Guidance (Dec 2017):
    • Adjusted EBITDA $14M-$16M vs FactSet $14.8M
    • Revenue $210M-$220M vs FactSet $251.9M

 

CHK Chesapeake Energy reports Q4 EPS $0.07 vs FactSet $0.07 ($5.92) 

  • Reports Q4:
    • EBITDA $385.0M vs FactSet $390.6M
    • Average daily production for the 2016 Q4 of approximately 574,500 barrels of oil equivalent (boe) consisted of approximately 90,400 bbls of oil, 2.562 bcf of natural gas and 57,100 bbls of NGL.
    • Average production expenses during the 2016 Q4 were $2.98 per boe, while G&A expenses (including stock-based compensation) during the 2016 Q4 were $1.28 per boe.

 

APLP Archrock Partners, LP reports Q4 Adjusted EBITDA $69.0M vs FactSet $67.1M ($17.70) 

  • Reports Q4:
    • Revenue $135.4M vs FactSet $137.6M
    • Distributable cash flow was $41.3M vs FactSet $44.5M
    • Gross margin was $84.0M, or 62% of revenue compared to $84.6M, or 62% of revenue, in Q3 of 2016 and $97.9M, or 61% of revenue, in Q4 of 2015.


AROC Archrock, Inc reports Q4 Adjusted EBITDA $75.2M vs FactSet $73.8M ($15.85) 

  • Reports Q4:
    • Revenue $193.8M vs FactSet $190.6M -- 1 estimate
    • EPS ($0.06) ex-items
    • Cash available for dividend was $11.5M in Q4 of 2016 compared to $17.2M in Q3 of 2016 and $14.9M in Q4 of 2015
  • Management comments:
    • "Archrock delivered strong gross margins and maintained reduced SG&A and capital expenditure levels in Q4 of 2016,” s
    • The work we accomplished in 2016, including improvements in field operating efficiencies, a 23% reduction in run-rate SG&A from Q1 of 2016, and over $135M in consolidated debt reduction, has positioned us to take advantage of growth opportunities in 2017 and beyond.”
    • “We believe the market is showing signs of a cyclical recovery in our business. Industry conditions are improving and we expect to leverage higher customer activity levels to drive increased orders in 2017.
    • "As a later cycle participant, we believe 2017 will be a transition year and we expect that our earnings will stabilize in the first part of the year and begin to recover in the later part of the year.”
    • “We continue to expect to benefit from the increasing demand for natural gas from LNG and pipeline exports, petrochemical feedstock and power generation.
    • "Our existing idle capacity as well as investment in our compression fleet will enable us to capitalize on opportunities as the predicted growth in U.S. natural gas production occurs”


DNR Denbury Resources reports Q4 EPS ($0.02) ex-items vs FactSet ($0.03) ($2.93) 

  • Reports Q4:
    • Revenue $234M vs FactSet $234.5M
    • Production averaged 60,685 BOE/d, as reported on 14-Feb
    • Adjusted cash flows from operations $53M vs year-ago $129M

 

CRZO Carrizo Oil & Gas reports Q4 EPS $0.44 ex-items vs FactSet $0.32 ($33.24) 

  • Reports Q4:
    • Revenue $143.8M vs FactSet $152.0M
    • Adjusted EBITDA $118.1M vs FactSet $107.1M
  • Q1 Guidance:
    • Total production (Boe/d) 44,400 - 45,667 vs FactSet 46.6K
  • FY Guidance (Dec 2017):
    • Total production (Boe/d) 48,500 - 49,967 vs FactSet 49.1K

 

CVEO Civeo Corp. reports Q4 adjusted EBITDA $17.7M vs 26-Jan guidance $16-22M ($3.26) 

  • Reports Q4:
    • Revenue $90.9M vs 26-Jan guidance $89-92M
    • EPS ($0.15)
  • Q1 Guidance:
    • Revenue $85-90M v. FactSet $93M - 1 estimate
    • EBITDA $16-19M v. FactSet $17.5M - 2 estimates
  • Reaffirms FY Guidance (Dec 2018):
    • Revenue $337-353M vs FactSet $366.2M - 1 estimate
    • EBITDA $60-65M vs FactSet $65.9M - 2 estimates
    • Capital expenditures $15-18M

 

RIG Transocean reports Q4 adjusted EPS $0.63 ($13.28) 

  • Reports Q4:
    • Revenue $974.0M vs FactSet $812.4M

 

SM SM Energy reports Q4 adjusted EBITDAX $186.2M vs FactSet $192.3M ($27.60)

  • Reports Q4:
    • Adjusted EPS ($0.31)
    • Revenue $379.9M vs FactSet $372.8M
  • 2017 operating plan:
    • Total capital spend ~$875M
    • Actual asset divestiture timing: Third-party operated Eagle Ford asset sale assumed to close at the end of February 2017 and the Divide County, North Dakota asset sale assumed to close at the end of Q2 of 2017
    • argets near 150% growth in Midland Basin production and near 50% improvement in the company's operating margin per Boe, for Q4 of 2017 compared with Q4 of 2016
    • three-year operating and financial plan that is expected to generate more than 15% production CAGR from retained assets for 2016-2019, while aligning expected capital expenditures and cash flow from operations beginning in 2019
  • 2017 guidance:
    • Production 40-43 MMboe
      • with oil approximately 29% of quarterly commodity mix through the year as new production begins to offset asset sales. Due to tp he timing of asset sales and development activity, total Company production will decline through Q3 of 2017.


NBR Nabors Industries reports Q4 EPS ($0.30) ex-items vs consensus ($0.33) ($15.44) 

  • Reports Q4:
    • Revenue $538.9M vs consensus $542.2M
    • Adjusted EBITDA $146.0M vs FactSet $145.6M
  • Management commentary:
    • We expect to accelerate NDS growth and deliver on our goal of fully automating our rigs and the drilling process through increased integration. We plan to complete the upgrading of our U.S. fleet into the most modern and capable in the industry. We believe 2017 will allow us to grow our U.S. and International rig counts, while making significant progress in pricing.


SUN Sunoco LP reports Q4 Adjusted EBITDA $154M vs FactSet $171.0M ($27.78) 

  • Reports Q4:
    • Distributable cash flow attributable to partners, as adjusted $63M
    • Revenue $4.31B vs FactSet $4.15B
    • capital expenditures for Q4 were $148.1M
  • Outlook:
    • Excluding acquisitions, SUN expects approximately $200M to be spent on growth capital and approximately $90M to be spent on maintenance capital for the full year 2017.

 

REN Resolute Energy 31-Dec reserves 60.3MMBoe vs year-ago 33.1MMBoe ($44.71) 

  • Update:
    • Average of nearly 14,200 Boepd during 2016, above high end of guidance
    • 2016 exit rate was more than 20,800 Boepd
    • Closed a new revolving credit facility with an initial borrowing base of $150M, up from $105M
    • Moody's upgraded credit rating to B3 from Caa2, with stable outlook
    • Closed previously-announced sale of New Mexico properties

 

ORIG Ocean Rig UDW reports Q4 adjusted EBITDA $242.7M vs FactSet $180.2M ($1.08) 

  • Reports Q4:
    • Revenue $355.4M vs FactSet $304.1M
    • EPS ($45.08)
      • Q4 2016 results include an impairment loss of $3,751.2M, or $45.56 per share, associated with the impairment of the book value of the company's drilling units.
    • Fleet wide utilization for Q4 of 2016 was 95.49%.
  • Restructuring Update
    • The company continues to explore and consider various strategic alternatives with its financial and legal advisors, which may include a possible restructuring of the company's debt. The company expects that any comprehensive deleveraging plan is likely to result in significant dilution to current shareholders and potential losses for other financial stakeholders. If a consensual solution cannot be reached among all stakeholders, the company will consider all available options including implementation of a restructuring plan through schemes of arrangement or under Chapter 11.
  • Recent Updates
    • On 6-Feb-17, the company reached an agreement with Premier Oil and Noble Energy to settle the disputed invoices related to the contract of the Eirik Raude against a total payment of $25.0M. This settles all claims by all parties.
    • On 10-Feb-17, the company reached an agreement with ConocoPhillips to terminate the contract of the Ocean Rig Athena. As part of the agreement, ConocoPhillips will pay a termination fee. The Ocean Rig Athena is presently en-route to its final lay-up location in Greece where the unit will be cold stacked.

 

RRC Range Resources reports Q4 EPS $0.23 ex-items vs FactSet $0.10 ($29.93) 

  • Reports Q4:
    • -GAAP revenues for Q4 2016 totaled $590M
  • Q1 Guidance:
    • 1.92 Bcfe per day with 30% to 32% liquids
  • 2017 Guidance:
    • To average 2.07 Bcfe per day. This equates to a year-over-year growth rate of 33% to 35%.

 

OAS Oasis Petroleum reports Q4 EPS ($0.08) ex-items vs FactSet ($0.12) ($13.66) 

  • Reports Q4:
    • Revenue $218.0M vs FactSet $206.9M
  • 2017 Guidance:
    • Production (Boepd) - 65,500 to 70,500
    • $605M total CapEx budget
    • Completing 76 gross (51.7 net) operated wells in 2017
    • Increasing rig count from two rigs in Wild Basin to four rigs running across the core
    • Investing $110M in OMS capital, focused on Wild Basin gathering systems, and connecting wells that come online outside of Wild Basin
  • Due to increased well performance and updated activity plans, the company is revising its 2017 and 2018 year-end exit rate guidance to 72,000 Boepd and over 83,000 Boepd, respectively. Production growth in 2017 and 2018 is expected to be within cash flow

 

RMP Rice Midstream Partners guides FY17 Adjusted EBITDA $185 -$200M vs FactSet $201.8M ($23.90) 

  • FY17 Guidance:
    • DCF $160 - $170M
    • We expect to increase our annual distribution by 20% while maintaining an average DCF coverage ratio of 1.35x - 1.45x over the course of the year.
  • 2017 Capital budget:
    • Capital budget of $315M to further develop gas gathering and water services assets
      • Gas Gathering and Compression $255M
      • Water Services $60M
    • Forecasted gathering throughput of 1,315 - 1,380 MDth/d, a 34% - 40% increase over 2016 throughput
    • Anticipated water volumes of 1,300 - 1,450M gallons
    • Forecasted 2017 annual distribution growth of 20%


RICE Rice Energy announces 2017 total E&P capital budget of $1.26B ($19.54) 
The company announced its 2017 capital budget and guidance. Estimated capital investments and financial guidance include:

  • $1,035B budget for drilling and completion activity in the Marcellus and Utica dry gas cores
  • Planned Marcellus wells to average 8,500 feet, cost $7.4M to develop ($875 per lateral foot), yield 18.4 Bcf EUR (2.16 Bcf/1000') and expected to generate 100% IRRs at strip pricing
  • Planned Utica laterals to average 10,500 feet (12% longer than 2016), cost $13.0M to develop ($1,235 per lateral foot), yield 24.5 Bcf EUR (2.33 Bcf/1000') and expected to generate 80% IRRs at strip pricing
  • $225M land budget to secure core acreage in Rice's existing focus areas
  • Forecasted 2017 net production of 1,290 - 1,355 MMcfe/d, a 59% increase from 2016
  • Approximately 90% of estimated 2017 production hedged at a weighted average NYMEX floor price of $3.24 per MMBtu
  • Rice Midstream Holdings LLC capital budget of $315M
  • Forecasted RMH gathering throughput of 1,125 - 1,185 MDth/d, a 59% - 67% increase over 2016 throughput


RICE Rice Energy reports Q4 EPS 0.37 ex-items vs FactSet $0.01 ($19.54) 

  • Reports Q4:
    • Revenue $284.0M vs FactSet $269.3M
    • Net production1,145 Mmcfe/d vs FactSet 1,004Mmcf/d
    • Adjusted EBITDAX $202.0M
    • Adjusted Net income $75.6M

 

CHK Chesapeake Energy reports Q4 EPS $0.07 vs FactSet $0.07 (5.92)

  • Reports Q4:
    • EBITDA $385.0M vs FactSet $390.6M
    • Average daily production for the 2016 Q4 of approximately 574,500 barrels of oil equivalent (boe) consisted of approximately 90,400 bbls of oil, 2.562 bcf of natural gas and 57,100 bbls of NGL.
    • Average production expenses during the 2016 Q4 were $2.98 per boe, while G&A expenses (including stock-based compensation) during the 2016 Q4 were $1.28 per boe.


OGE OGE Energy reports Q4 EPS $0.29 vs FactSet $0.36 ($34.95) 

  • FY Guidance (Dec 2017):
    • EPS $1.93-$2.09 vs FactSet $1.88


EE El Paso Electric reports Q4 EPS $0.14 vs FactSet $0.06; updates on Texas Rate Case Filing ($47.25) 

  • Texas Retail Rate Case Filing
    • On 13-Feb-17, the company filed with the City of El Paso, other municipalities incorporated in the company's Texas service territory and the PUCT in Docket No. 46831, a request for an increase in non-fuel base revenues of ~$42.5M.
    • The company invoked its statutory right to have its new rates relate back for consumption on and after 18-Jul-17, which is the 155th day after the filing.
    • The difference in rates that would have been billed will be surcharged or refunded to customers after the PUCT's final order in Docket No. 46831.
    • The PUCT has the authority to require the company to surcharge or refund such difference over a period not to exceed 18 months
  • FY17 Guidance:
    • As the outcome of the rate case discussed above could have a significant impact on the company's results of operations in 2017, the company has decided not to provide earnings guidance at this time


SJW SJW Corp reports Q4 EPS $0.67 vs FactSet $0.65 -- 1 estimate ($48.84) 

  • Reports Q4:
    • Revenue $79.3M vs FactSet $75.0M -- 1 estimate

 

WTR Aqua America reports Q4 EPS $0.28 vs FactSet $0.29 ($30.47) 

  • Reports Q4:
    • Revenue $196.8M vs FactSet $208.3M
  • Reaffirms FY Guidance (Dec 2017):
    • EPS $1.34-1.39 vs FactSet $1.38
    • Same-system operations and maintenance expenses increase of 1 to 2%
    • More than $450M in infrastructure improvements in 2017 for communities served by Aqua
    • More than $1.2B planned through 2019 in existing operations to improve and strengthen systems
    • Aqua Pennsylvania expected to file infrastructure investment charge in 2017 and rate case filing likely in 2018, with resolution expected in 2019
    • Total customer growth of 1.5 to 2%


OGS One Gas, Inc. reports Q4 EPS $0.80 vs FactSet $0.78 ($64.39) 

  • Reports Q4:
    • Net margin increased by $12.0M compared with Q4 2015
  • Guidance
    • On 17-Jan-17, the company announced that its 2017 net income is expected to be in the range of $152M to $162M, or $2.87 to $3.07 per diluted share.
Morning Summary | TMT | Energy  | Healthcare  | Consumer  | Financial  | Industrial  | Global Trading Summary

Healthcare News

Patrick O'Donohue, Jared Mancuso (203) 861-7650 | 2.23.2017

News

INO Inovio reports positive data on DNA-based MERS, Zika vaccines ($6.60)

  • INO presented positive clinical data on Inovio’s DNA-based vaccines against MERS (Middle East Respiratory Syndrome) (GLS-5300) and Zika (GLS-5700) at the Coalition for Epidemic Preparedness Innovation (CEPI)’s 1st Scientific Meeting on “Vaccines Against Emerging Infections - A Global Insurance” in Paris, France.

PAVM PAVMed announces exchange offer ($5.49) 

  • PAVmed announced that the company intends to effectuate a registered exchange offer whereby PAVmed’s common stock will become exchangeable for units
  • Pursuant to the Exchange, each New Unit will be comprised of one share of common stock, identical to the currently outstanding common stock, and one newly-issued warrant .
  • Each holder of common stock will be entitled to receive one New Unit for each share of common stock tendered.
  • The Exchange will be available to all holders of the company’s outstanding common stock. Holders of common stock may tender all, some, or none of their common stock. Any shares of common stock which are not tendered shall remain outstanding and unmodified.

MYGN Myriad Genetics announces publication of new data on GeneSight Psychotropic Test ($18.80) 

  • Assurex Health, a wholly-owned subsidiary of Myriad, announced that new data on the use of the GeneSight Psychotropic test to deliver medication cost savings for mental health disorders was published in the journal Clinical Therapeutics.
  • The study, entitled: "Economic utility: Combinatorial Pharmacogenomics and Medication Cost Savings for Mental Healthcare in a Primary Care Setting" is a subanalysis from a previous prospective study analyzing cost savings for patients receiving combinatorial pharmacogenomic testing.
  • The current study compared savings among various types of health care providers (HCPs) and analyzed the cost of treatment decisions that were congruent with GeneSight test results (i.e., medication decisions in concordance with the patients’ test results) with those that were incongruent. 

RDHL RedHill Biopharma reports Q4 EPS ($0.07) vs FactSet ($0.06) ($9.42) 

  • Reports Q4:
    • Revenue $0.1M vs FactSet $0.0M
    • Cash Balance as of 31-Dec-16 was $66.3M, an increase of $8.2M compared to $58.1M as of 31-Dec-15 and an increase of $25.8M compared to $40.5M as of 30-Sep-16

ICPT Intercept Pharmaceuticals reports Q4 GAAP EPS ($4.84) vs FactSet ($3.72) ($122.79)

  • Reports Q4:
    • Revenue $13.8M vs FactSet $8.5M
      • $13.4M of net sales of Ocaliva
    • As of 31-Dec, Intercept had cash, equivalents and investment securities available for sale of ~$689.4M
  • FY Guidance (Dec 2017):
    • Non-GAAP adjusted operating expenses of $380-420M
  • Personnel Update
    • Intercept also announced that Jerry Durso has been appointed as COO
    • Durso has spent the majority of his career at Sanofi, where he most recently served as SVP, chief commercial officer of the global diabetes division from 2011 through 2015

IART Integra reports Q4 EPS $0.52 ex-items vs FactSet $0.52 ($43.26) 

  • Reports Q4:
    • Revenue $255.7M vs FactSet $257.4M
    • Adjusted EBITDA $66.5M vs FactSet $67.6M
  • FY Guidance (Dec 2017):
    • EPS $1.88-1.94 vs FactSet $1.93
    • Revenue $1.12-1.14B vs FactSet $1.11B
    • Guidance includes the Derma Sciences acquisition and organic sales growth to be between 7% and 8.5%

PDCO Patterson Companies reports Q3 adjusted EPS $0.58 vs FactSet $0.57 ($44.60)

  • Reports Q3:
    • Revenue $1.40B vs FactSet $1.43B
  • FY Guidance (Apr 2017):
    • Adjusted EPS $2.27-2.33 vs prior guidance $2.25-2.35 and FactSet $2.30
    • GAAP EPS $1.71-1.77 vs prior $1.65-1.75 

TXMD TherapeuticsMD, Inc. reports Q4 EPS ($0.12) vs FactSet ($0.12) ($5.67) 

  • Reports Q4:
    • Revenue $4.5M vs FactSet $5.9M

TFX Teleflex reports Q4 adjusted EPS $2.13 vs FactSet $2.09 ($184.01) 

  • Reports Q4:
    • Revenue $513.9M vs FactSet $502.4M
  • FY Guidance (Dec 2017):
    • Adjusted EPS $8.00-8.15 vs FactSet $7.88
    • Revenue +10-11.5% vs prior year's $1.87B, implying $2.05-2.08B vs FactSet $1.93B
      • Constant Currency Revenue +12.5-14.0%

SAGE Sage Therapeutics reports Q4 EPS ($1.50) vs FactSet ($1.21) ($61.93) 

  • Reports Q4:
    • Cash, cash equivalents and marketable securities as of 31-Dec-16 were $397.5M, compared with $186.8M at 31-Dec-15.
    • Phase 2 placebo-controlled study of SAGE-217 in major depressive disorder expected to begin in 1H 2017
    • First NMDA candidate, SAGE-718, planned to enter Phase 1 clinical testing in 1H 2017

NVCR Novocure announces departure of Chief Commercial Officer ($7.15) 

  • Novocure announced that its Chief Commercial Officer, Peter Melnyk, will be leaving the company to pursue other interests.
  • Melnyk will continue his employment with the company until 15-Mar-17 to ensure a smooth transition.
  • The company did not name a successor 

GEN Genesis Healthcare reports Q4 net income $22.5M ($3.83)

  • Reports Q4:
    • Unclear if reported net comparable to FactSet ($17.7M)
    • Revenue $1.40B vs FactSet $1.40B
    • Adjusted EBITDA $33.2M vs FactSet $53.2M
  • FY Guidance (Dec 2017):
    • Revenue $5.40-5.60B vs FactSet $5.64B
    • Adjusted EBITDA $542-573M 

COTV Cotiviti Holdings reports Q4 adjusted EPS $0.39 vs FactSet $0.34 ($36.56)

  • Reports Q4:
    • Revenue $167.9M vs FactSet $161.4M
    • Adjusted EBITDA $64.4M vs FactSet $60.1M
  • FY Guidance (Dec 2017):
    • Revenue $688-700M vs FactSet $683.6M
    • Adjusted EBITDA $266-272M vs FactSet $265.8M

CBLI Cleveland Biolabs reports Q4 EPS ($0.11) vs year-ago ($0.13) ($1.84)

  • Reports Q4:
    • Revenue $1.0M vs year-ago 1.3
    • As of 31-Dec-16, the company had $15.2M in cash, cash equivalents and short-term investments, which, based on the company's current operational plan, is estimated to fund operations for at least one year beyond the filing date of Form 10-K. 

CYH Community Health Systems announces retirement of CFO W. Larry Cash; J. Aaron to succeed ($9.12)

  • W. Larry Cash, President of Financial Services and CFO, will retire from his executive management position and the company’s board on 16-May-17, the date of the company’s 2017 annual meeting of stockholders.
  • Upon his retirement, Cash will enter into a consulting agreement with the company, under which he will advise the company’s management team on issues related to healthcare finance, management and operations.
  • Thomas J. Aaron, who currently serves as SVP–Finance at Community Health Systems, will be appointed CFO immediately following Cash’s retirement. 

INOV Inovalon Holdings reports Q4 EPS $0.05 ex-items vs FactSet $0.03 ($11.20) 

  • Reports Q4:
    • Revenue $96.1M vs FactSet $95.1M
    • EBITDA $14.3M vs FactSet $13.4M
  • FY Guidance (Dec 2017):
    • EPS $0.28-$0.31 vs FactSet $0.32
    • Revenue $440.5M-$455M vs FactSet $454.3M
    • EBITDA $105.2M-$112.5M vs FactSet $105.1M

BLUE bluebird bio reports Q4 EPS ($1.88) vs FactSet ($1.88) ($74.00) 

  • Reports Q4:
    • Revenue $1.6M vs FactSet $1.8M
    • Cash, cash equivalents and marketable securities as of 31-Dec-16 were $884.8M, compared to $865.8M as of 31-Dec-15, an increase of $19.0M, which was primarily driven by the December 2016 equity financing partially offset by cash used to fund operations.
  • Financial guidance:
    • bluebird bio expects that its cash, cash equivalents and marketable securities of $884.8M as of 31-Dec-16 will be sufficient to fund its current operations into H2 of 2019. 

CBMX CombiMatrix reports Q4 EPS ($0.22) vs FactSet ($0.39) -- 1 estimate ($4.05) 

  • Reports Q4:
    • Revenue $3.5M vs FactSet $3.3M -- 1 estimate

BEAT BioTelemetry reports Q4 adjusted EPS $0.23 vs FactSet $0.18 ($24.95) 

  • Reports Q4:
    • Revenue $54.0M vs FactSet $53.8M
    • Adjusted EBITDA $12.6M v. FactSet $11.9M 

ELGX Endologix reports Q4 EPS ($0.30) vs FactSet ($0.19) ($6.53) 

  • Reports Q4:
    • Revenue $47.5M vs FactSet $48.7M
    • EBITDA ($13.2M) vs FactSet ($11.0M)
  • FY Guidance (Dec 2017):
    • EPS ($0.76)-($0.70) vs FactSet ($0.70)
    • Revenue $193M-$200M vs FactSet $199.5M

CLVS Clovis Oncology reports Q4 EPS ($1.83) vs FactSet ($1.68) ($61.19)

  • Reports Q4:
    • Revenue $0.1M vs FactSet $0.1M
    • $266.2M in cash, cash equivalents and available for sale securities at 31-Dec-16 

AXGN AxoGen reports Q4 adjusted EPS ($0.10) vs FactSet ($0.09) ($10.50) 

  • Reports Q4:
    • Revenue $11.4M vs 9-Jan guidance of "at least $11.3M"
    • EBITDA ($2.6M) vs year-ago ($2.6M)
    • Gross margin 84.0% vs year-ago 81.9%
  • Reiterates FY Guidance (Dec 2017):
    • Revenue "at least" +40% vs prior year's $41.1M, implying $57.5M vs FactSet $57.0M
    • Gross margins will remain above 80%

Upgrades/ Downgrades

INO Inovio reports positive data on DNA-based MERS, Zika vaccines ($6.60)

  • INO presented positive clinical data on Inovio’s DNA-based vaccines against MERS (Middle East Respiratory Syndrome) (GLS-5300) and Zika (GLS-5700) at the Coalition for Epidemic Preparedness Innovation (CEPI)’s 1st Scientific Meeting on “Vaccines Against Emerging Infections - A Global Insurance” in Paris, France.

PAVM PAVMed announces exchange offer ($5.49) 

  • PAVmed announced that the company intends to effectuate a registered exchange offer whereby PAVmed’s common stock will become exchangeable for units
  • Pursuant to the Exchange, each New Unit will be comprised of one share of common stock, identical to the currently outstanding common stock, and one newly-issued warrant .
  • Each holder of common stock will be entitled to receive one New Unit for each share of common stock tendered.
  • The Exchange will be available to all holders of the company’s outstanding common stock. Holders of common stock may tender all, some, or none of their common stock. Any shares of common stock which are not tendered shall remain outstanding and unmodified.

MYGN Myriad Genetics announces publication of new data on GeneSight Psychotropic Test ($18.80) 

  • Assurex Health, a wholly-owned subsidiary of Myriad, announced that new data on the use of the GeneSight Psychotropic test to deliver medication cost savings for mental health disorders was published in the journal Clinical Therapeutics.
  • The study, entitled: "Economic utility: Combinatorial Pharmacogenomics and Medication Cost Savings for Mental Healthcare in a Primary Care Setting" is a subanalysis from a previous prospective study analyzing cost savings for patients receiving combinatorial pharmacogenomic testing.
  • The current study compared savings among various types of health care providers (HCPs) and analyzed the cost of treatment decisions that were congruent with GeneSight test results (i.e., medication decisions in concordance with the patients’ test results) with those that were incongruent. 

RDHL RedHill Biopharma reports Q4 EPS ($0.07) vs FactSet ($0.06) ($9.42) 

  • Reports Q4:
    • Revenue $0.1M vs FactSet $0.0M
    • Cash Balance as of 31-Dec-16 was $66.3M, an increase of $8.2M compared to $58.1M as of 31-Dec-15 and an increase of $25.8M compared to $40.5M as of 30-Sep-16

ICPT Intercept Pharmaceuticals reports Q4 GAAP EPS ($4.84) vs FactSet ($3.72) ($122.79)

  • Reports Q4:
    • Revenue $13.8M vs FactSet $8.5M
      • $13.4M of net sales of Ocaliva
    • As of 31-Dec, Intercept had cash, equivalents and investment securities available for sale of ~$689.4M
  • FY Guidance (Dec 2017):
    • Non-GAAP adjusted operating expenses of $380-420M
  • Personnel Update
    • Intercept also announced that Jerry Durso has been appointed as COO
    • Durso has spent the majority of his career at Sanofi, where he most recently served as SVP, chief commercial officer of the global diabetes division from 2011 through 2015

IART Integra reports Q4 EPS $0.52 ex-items vs FactSet $0.52 ($43.26) 

  • Reports Q4:
    • Revenue $255.7M vs FactSet $257.4M
    • Adjusted EBITDA $66.5M vs FactSet $67.6M
  • FY Guidance (Dec 2017):
    • EPS $1.88-1.94 vs FactSet $1.93
    • Revenue $1.12-1.14B vs FactSet $1.11B
    • Guidance includes the Derma Sciences acquisition and organic sales growth to be between 7% and 8.5%

PDCO Patterson Companies reports Q3 adjusted EPS $0.58 vs FactSet $0.57 ($44.60)

  • Reports Q3:
    • Revenue $1.40B vs FactSet $1.43B
  • FY Guidance (Apr 2017):
    • Adjusted EPS $2.27-2.33 vs prior guidance $2.25-2.35 and FactSet $2.30
    • GAAP EPS $1.71-1.77 vs prior $1.65-1.75 

TXMD TherapeuticsMD, Inc. reports Q4 EPS ($0.12) vs FactSet ($0.12) ($5.67) 

  • Reports Q4:
    • Revenue $4.5M vs FactSet $5.9M

TFX Teleflex reports Q4 adjusted EPS $2.13 vs FactSet $2.09 ($184.01) 

  • Reports Q4:
    • Revenue $513.9M vs FactSet $502.4M
  • FY Guidance (Dec 2017):
    • Adjusted EPS $8.00-8.15 vs FactSet $7.88
    • Revenue +10-11.5% vs prior year's $1.87B, implying $2.05-2.08B vs FactSet $1.93B
      • Constant Currency Revenue +12.5-14.0%

SAGE Sage Therapeutics reports Q4 EPS ($1.50) vs FactSet ($1.21) ($61.93) 

  • Reports Q4:
    • Cash, cash equivalents and marketable securities as of 31-Dec-16 were $397.5M, compared with $186.8M at 31-Dec-15.
    • Phase 2 placebo-controlled study of SAGE-217 in major depressive disorder expected to begin in 1H 2017
    • First NMDA candidate, SAGE-718, planned to enter Phase 1 clinical testing in 1H 2017

NVCR Novocure announces departure of Chief Commercial Officer ($7.15) 

  • Novocure announced that its Chief Commercial Officer, Peter Melnyk, will be leaving the company to pursue other interests.
  • Melnyk will continue his employment with the company until 15-Mar-17 to ensure a smooth transition.
  • The company did not name a successor 

GEN Genesis Healthcare reports Q4 net income $22.5M ($3.83)

  • Reports Q4:
    • Unclear if reported net comparable to FactSet ($17.7M)
    • Revenue $1.40B vs FactSet $1.40B
    • Adjusted EBITDA $33.2M vs FactSet $53.2M
  • FY Guidance (Dec 2017):
    • Revenue $5.40-5.60B vs FactSet $5.64B
    • Adjusted EBITDA $542-573M 

COTV Cotiviti Holdings reports Q4 adjusted EPS $0.39 vs FactSet $0.34 ($36.56)

  • Reports Q4:
    • Revenue $167.9M vs FactSet $161.4M
    • Adjusted EBITDA $64.4M vs FactSet $60.1M
  • FY Guidance (Dec 2017):
    • Revenue $688-700M vs FactSet $683.6M
    • Adjusted EBITDA $266-272M vs FactSet $265.8M

CBLI Cleveland Biolabs reports Q4 EPS ($0.11) vs year-ago ($0.13) ($1.84)

  • Reports Q4:
    • Revenue $1.0M vs year-ago 1.3
    • As of 31-Dec-16, the company had $15.2M in cash, cash equivalents and short-term investments, which, based on the company's current operational plan, is estimated to fund operations for at least one year beyond the filing date of Form 10-K. 

CYH Community Health Systems announces retirement of CFO W. Larry Cash; J. Aaron to succeed ($9.12)

  • W. Larry Cash, President of Financial Services and CFO, will retire from his executive management position and the company’s board on 16-May-17, the date of the company’s 2017 annual meeting of stockholders.
  • Upon his retirement, Cash will enter into a consulting agreement with the company, under which he will advise the company’s management team on issues related to healthcare finance, management and operations.
  • Thomas J. Aaron, who currently serves as SVP–Finance at Community Health Systems, will be appointed CFO immediately following Cash’s retirement. 

INOV Inovalon Holdings reports Q4 EPS $0.05 ex-items vs FactSet $0.03 ($11.20) 

  • Reports Q4:
    • Revenue $96.1M vs FactSet $95.1M
    • EBITDA $14.3M vs FactSet $13.4M
  • FY Guidance (Dec 2017):
    • EPS $0.28-$0.31 vs FactSet $0.32
    • Revenue $440.5M-$455M vs FactSet $454.3M
    • EBITDA $105.2M-$112.5M vs FactSet $105.1M

BLUE bluebird bio reports Q4 EPS ($1.88) vs FactSet ($1.88) ($74.00) 

  • Reports Q4:
    • Revenue $1.6M vs FactSet $1.8M
    • Cash, cash equivalents and marketable securities as of 31-Dec-16 were $884.8M, compared to $865.8M as of 31-Dec-15, an increase of $19.0M, which was primarily driven by the December 2016 equity financing partially offset by cash used to fund operations.
  • Financial guidance:
    • bluebird bio expects that its cash, cash equivalents and marketable securities of $884.8M as of 31-Dec-16 will be sufficient to fund its current operations into H2 of 2019. 

CBMX CombiMatrix reports Q4 EPS ($0.22) vs FactSet ($0.39) -- 1 estimate ($4.05) 

  • Reports Q4:
    • Revenue $3.5M vs FactSet $3.3M -- 1 estimate

BEAT BioTelemetry reports Q4 adjusted EPS $0.23 vs FactSet $0.18 ($24.95) 

  • Reports Q4:
    • Revenue $54.0M vs FactSet $53.8M
    • Adjusted EBITDA $12.6M v. FactSet $11.9M 

ELGX Endologix reports Q4 EPS ($0.30) vs FactSet ($0.19) ($6.53) 

  • Reports Q4:
    • Revenue $47.5M vs FactSet $48.7M
    • EBITDA ($13.2M) vs FactSet ($11.0M)
  • FY Guidance (Dec 2017):
    • EPS ($0.76)-($0.70) vs FactSet ($0.70)
    • Revenue $193M-$200M vs FactSet $199.5M

CLVS Clovis Oncology reports Q4 EPS ($1.83) vs FactSet ($1.68) ($61.19)

  • Reports Q4:
    • Revenue $0.1M vs FactSet $0.1M
    • $266.2M in cash, cash equivalents and available for sale securities at 31-Dec-16 

AXGN AxoGen reports Q4 adjusted EPS ($0.10) vs FactSet ($0.09) ($10.50) 

  • Reports Q4:
    • Revenue $11.4M vs 9-Jan guidance of "at least $11.3M"
    • EBITDA ($2.6M) vs year-ago ($2.6M)
    • Gross margin 84.0% vs year-ago 81.9%
  • Reiterates FY Guidance (Dec 2017):
    • Revenue "at least" +40% vs prior year's $41.1M, implying $57.5M vs FactSet $57.0M
    • Gross margins will remain above 80%
Morning Summary | TMT | Energy  | Healthcare  | Consumer  | Financial  | Industrial  | Global Trading Summary

Consumer News

Josh DiMarzo, Mark Waltos (203) 861-7650 | 2.23.2017

News

(SGC) Superior Uniform Group reports Q4 EPS $0.30 vs FactSet $0.26 -- 1 estimate ($16.79) 

  • Reports Q4:
    • Revenue $64.7M vs FactSet $64.6M -- 1 estimate
  • Comments/Outlook:
    • “Our updated guidance relative to net sales is as follows: Over the next three to five years on average, we expect organic growth in our uniform segment will exceed 6 percent, our promotional products segment will exceed 15 percent organic growth and our remote staffing solutions segment will generate growth of $3.0 million to $3.5 million per year."
    • "Overall, we expect average organic growth in excess of 8 percent. We intend to supplement our organic growth with acquisitions in the promotional products segment each year while continuing to pursue acquisitions in the uniform segment as they become available.”

(KEM) Follow-up: KEMET announces agreement to acquire NEC TOKIN ($8.46)

  • KEMET will host a conference call at 9:00 ET this morning- Thursday, 23-Feb-17, to discuss the acquisition
  • Participants in the United States should dial 1-800-416-8033, and participants outside the United States should dial 1-706-643-0979.
  • Participants should reference "KEMET Corporation" and Conference ID #77525020.

(KEM) KEMET announces agreement to acquire NEC TOKIN ($8.46) 

  • KEMET announced that, through its wholly owned subsidiary, KEMET Electronics Corporation, it has signed a definitive agreement and is targeting a closing date on or about 10-Apr-17 to complete the acquisition of NEC TOKIN Corporation from NEC Corporation
  • Upon closing, NEC TOKIN will change its name to TOKIN Corporation and become a wholly-owned subsidiary of KEMET.
  • To facilitate the acquisition, the company also announced that NEC TOKIN has entered into an agreement to sell its EMD division (Electromechanical Devices) to NTJ Holdings 1 Ltd., a special purpose entity that is owned by funds managed or operated by Japan Industrial Partners, Inc. for approximately ¥48.2B or approximately $422M, prior to adjustments for net debt at closing and subject to customary post-closing adjustments.
  • The proceeds of this transaction, after fees and taxes, will be used in part to repay the NEC intercompany debt resulting in an essentially debt-free balance sheet of NEC TOKIN once it is acquired by KEMET.
  • Under the terms of the definitive stock purchase agreement, KEC will pay to NEC the amount of ¥6.0B, or approximately $52.5M, plus one-half of the remaining amount which is determined to be the excess amount of net cash proceeds from the sale of the EMD business.
  • NEC TOKIN will also use a portion of the net cash proceeds from the sale of the EMD business to repay in full the outstanding indebtedness of NEC TOKIN that is owed to NEC, which is currently ¥25.4B, or approximately $222.4M.
  • Based on current estimates, after all payments to NEC (and net of taxes, fees and expenses), it will effectively result in a net cash inflow to NEC TOKIN and the company.

(LKQ) LKQ Corp reports Q4 EPS $0.39 ex-items vs FactSet $0.39 ($33.05)

  • Reports Q4:
    • Revenue $2.15B vs FactSet $2.26B
  • FY Guidance (Dec 2017):
    • EPS $1.80-$1.90 vs FactSet $2.01
    • Organic revenue growth for parts & services 4.0% to 6.0%
    • Cash flow from operations $610M to $640M
    • Capital expenditures $200M to $225M

(VC) Visteon reports Q4 Adjusted EBITDA $96M vs FactSet $90.8M ($94.48) 

  • Reports Q4:
    • Revenue $816.0M vs FactSet $794.2M
    • EPS $1.82 ex-items
  • FY Guidance (Dec 2017):
    • Adjusted EBITDA $355-370M vs FactSet $355.8M
    • Net income $155-170M
    • Electronics Product Group
      • Revenue $3.1-3.2B
      • Adjusted free cash flow $165-180M.

(JAKK) JAKKS Pacific reports Q4 EPS ($0.47) vs FactSet ($0.68) ($5.05) 

  • Reports Q4:
    • Revenue $167.0M vs FactSet $159.4M
    • EBITDA $4.0M vs FactSet ($2.6M)
  • FY Guidance (Dec 2017):
    • For 2017, the company expects higher net income, EPS and Adjusted EBITDA on lower net sales compared to 2016. The company also expects improved profitability in 2017 with a continued focus on building our base of evergreen brands and categories as well as entering new categories, creating a strong portfolio of new and existing licenses and developing owned IP and content.

(SWK) Stanley Black & Decker completes previously-announced sale of Mechanical Security stake to dormakaba (DOKA.SW) ($127.29)

  • Earnings impact:
    • 2017 EPS dilution from the transaction of $0.19 vs prior guidance $0.15-0.20
    • Combined with acquisition of Newell tools, expects net 2017 EPS accretion of $0.05 vs at least $0.05

(TSLA) WSJ's Heard on the Street column is cautious on Tesla ($273.51)

  • The column says that although Q4 sales beat estimates, the future would depend on whether Elon Musk's timeline to deliver Model 3 Sedan can materialize.

(TSLA) Tesla CFO Jason Wheeler to leave -- conference call ($273.51) 

  • Previous CFO, Deepak Ahuja will return and take over from Wheeler. Wheeler says he is going into public sector.

(TSLA) StreetAccount Metrics Recap - Tesla Q4 Earnings ($273.51) 

  • Revenue
    • Automotive $1.99B
    • Energy generation and storage $131.4M
    • Services and other $159.1M
  • Gross margin
    • Reported 19.1% vs 27.7% in Q3
    • Automotive 22.6% vs 29.4% in Q3
    • Non-GAAP automotive 22.2% vs 25.0% in Q3
  • Cash from operations ($448.2M)
  • Operating cash flow plus change in collateralized lease borrowing ($236.2M)

(TSLA) Tesla reports Q4 EPS ($0.69) ex-items vs FactSet ($0.53) ($273.51)

  • Reports Q4:
    • Revenue $2.28B vs FactSet $2.16B
  • FY Outlook:
    • Model 3 and solar roof launches are on track for H2
    • Expect to deliver 47,000 to 50,000 Model S and Model X vehicles combined in H1
    • Both GAAP and non-GAAP automotive gross margin should recover in Q1 to Q3 2016 levels and then continue to expand in Q2 2017.
    • For energy generation and storage business, plan to prioritize profitability and cash preservation over total MW deployed ahead of the solar roof launch.
    • On track to generate $500M in cash (including growth of non-recourse project financing) by 2019 and achieve the cost synergies committed to upon acquiring SolarCity.
    • Expect to invest $2-2.5B in capital expenditures ahead of the start of Model 3 production

(STLY) Stanley Furniture reports Q4 EPS ($0.02) vs year-ago $0.06 ($0.82)

  • Reports Q4:
    • Revenue $9.8M vs year-ago $13.8M
  • Management comments:
    • "As shipments from multiple vendors begin to service order backlog as expected in Q2, we should see an uptick in both sales and order rates. Cash should remain at or near current levels for H1, and we expect to utilize our secured credit facility only if we need additional net working capital to grow as we move into the latter part of the year. We expect to increase inventory turns and generate cash for the total year, and we expect modest profits beginning with Q2 results and for the total year."

(RGR) Sturm Ruger reports Q4 EPS $1.10 vs FactSet $0.91 -- 1 estimate ($50.30)

  • Reports Q4:
    • Revenue $161.8M vs FactSet $154.0M -- 1 estimate
    • Dividend:
      • The company also announced that its board declared a dividend of $0.44 per share for Q4, for shareholders of record as of 17-Mar-17, payable on 31-Mar-17.
      • This dividend is approximately 40% of net income.
  • Expects 2017 capital expenditures to total approximately $40M, as it continues to prioritize new product development.

(TILE) Interface announces COO Jay Gould will succeed Daniel Hendrix as CEO; effective 3-Mar ($17.80)

  • Hendrix will continue his involvement with the company remaining as Chairman of the Board of Directors.

(ICON) Iconix Brand reports Q4 EPS $0.38 ex-items ($9.18)

  • Reports Q4:
    • Unclear if comparable to FactSet $0.10
    • Revenue $87.1M vs FactSet $84.4M
  • FY Guidance (Dec 2017):
    • EPS $0.70-0.85 ex-items vs FactSet $0.97
    • Revenue to $350M to $365M vs FactSet $360.9M
    • Free cash flow in 2017 of approximately $105M to $125M.

(LDL) Lydall reports Q4 adjusted EPS $0.52 vs FactSet $0.68 ($59.55) 

  • Reports Q4:
    • Revenue $144.2M vs FactSet $145.5M -- 2 estimates
    • Adjusted gross margin of 22.4%, up 20 basis points
    • Adjusted operating margin of 8.4%, down 60 basis points
    • Adjusted EBITDA margin of 12.5%, up 20 basis points
  • Outlook/Management comments:
    • “Overall, demand in our end markets remains solid, and we are starting to see early signs of stabilization and improvement in the power generation and energy space where Technical Nonwovens has faced market weakness since early 2016. We are encouraged by improving order activity and increased backlog entering the year in these industrial filtration focused applications.
    • "We expect demand in our automotive segments to be steady with recent periods as we continue to benefit from the relative strength of the platforms we serve. In the Performance Materials segment, we expect improved demand to continue in our filtration markets, and in the insulation space, we are experiencing early signs of increased quoting activity in liquid natural gas and energy related applications.
    • "Operationally, a critical focus area for us is to ensure that the productivity improvements and corrective actions we have been putting in place in the Thermal/Acoustical Metals segment are executed effectively and sustained so that we are able to realize operating improvement. And finally, we remain focused on the integration of the Texel and Gutsche businesses, and I am pleased with our progress to date.”

(TILE) Interface reports Q4 EPS $0.28 ex-items vs FactSet $0.24 ($17.80)

  • Reports Q4:
    • Revenue $239.5M vs FactSet $248.7M
    • Orders from cont. ops 232,300 vs year ago 240,900

(CRI)  StreetAccount Metrics Recap – Carter Holdings Q4 Earnings ($83.58)

  • Key operating metrics:
    • Comps (total, incl. eCommerce)
      • Carters +5.4% vs FactSet +3.6%
      • OshKosh +5.8% vs FS +2.1%
      • Canada +10.9%
    • Comps (stores, ex. eCommerce)
      • Carters +0.1% vs FS (2.5%)
      • OshKosh +0.6% vs FS (3.0%)
      • Canada +6.9%
    • Gross margin 43.9% vs FS 43.1%
    • SG&A 30.0% vs FS 29.8%
    • Operating margin 15.2% vs FS 14.7% and year-ago 13.5%
    • Merchandise inventories $487.6M, +3.8% y/y - note sales growth was +8% during the quarter

(KSS) StreetAccount Metrics Recap – Kohl's Q4 Earnings ($41.78)

  • Key operating metrics:
    • Comps (2.2%) vs FactSet (2.1%)
    • Gross margin 33.4% vs FS 32.8% and year-ago 33.1%
    • SG&A 21.9% vs FS 21.9% and year-ago 20.9%
    • Operating margin 7.6% vs FS 7.1% and year-ago 8.5%
    • Merchandise inventories $3.80B, (6.0%) y/y - note sales growth was (2.8%) during the quarter
  • Additional FY guidance:
    • Gross margin +10-15 bp
    • SG&A dollars +0.5-2% and flat to +1.5% ex-53rd week in 2017
    • Capex $700M
    • Repurchase $350M in stock
  • Management comments:
    • “Sales results were weak for the quarter in total, driven by declines in brick and mortar traffic, and offset somewhat by strength in online demand. We saw improvement in merchandise margin, and our team continued to manage inventory and expenses extremely well. In 2017, we will accelerate our focus on becoming the destination for active and wellness with the launch of Under Armour in early March. We will also extend our efforts on improving our speed to market across all of our proprietary brands into all apparel areas and home.”

(KSS) Kohl's reports Q4 EPS $1.44 vs FactSet $1.33 ($41.78)

  • Reports Q4:
    • Revenue $6.21B vs FactSet $6.21B
  • FY Guidance (Jan 2018):
    • EPS $3.50-$3.80 vs FactSet $3.73
    • Comparable sales change of (2)% to 0% vs. FactSet (0.1%)

(W) Wayfair reports Q4 non-GAAP EPS ($0.34) vs FactSet ($0.50) ($41.26)

  • Reports Q4:
    • Revenue $984.6M vs FactSet $970.2M
    • Adjusted EBITDA ($12.0M) vs FactSet ($26.2M)

(CRI) Carter Holdings reports Q4 EPS $1.79 ex-items vs FactSet $1.67; raises dividend ($83.58) 

  • Reports Q4:
    • Revenue $934.2M vs FactSet $915.9M
    • Repurchased and retired 690,434 shares of its common stock for $61.3M at an average price of $88.79 per share
  • Q1 Guidance:
    • EPS ex-items $0.80 to $0.85 vs FactSet $1.14
    • Revenue decline in the low-single digit range vs FactSet +3.7%
  • FY Guidance (Dec 2017):
    • EPS ex-items growth of 8% to 10% vs FactSet +9.6%
    • Revenue growth of 4% to 6% vs FactSet +5.4%
  • Dividend:
    • Authorized a 12% increase ($0.04 per share) to its quarterly cash dividend, to $0.37 per share, for payment on 24-Mar-17, to shareholders of record at the close of business on 10-Mar-17

(CRI) Carter Holdings acquires Skip Hop Holdings ($83.58)

  • The company announced that it has acquired Skip Hop Holdings, Inc. , a global lifestyle brand for families with young children, from Fireman Capital Partners, a consumer-focused private equity firm.
  • The acquisition of Skip Hop is expected to be accretive to Carter’s fiscal 2017 adjusted EPS, excluding the impact of non-recurring transaction or integration-related expenses.
  • The transaction has been structured as an acquisition of all of the outstanding equity of Skip Hop. The total purchase price is $140M in cash consideration, subject to a working capital adjustment, plus a potential future payment of up to $10M contingent upon the achievement of certain fiscal targets in 2017.
  • J.P. Morgan Securities LLC acted as financial advisor to Carter's.

(JWN) StreetAccount Consensus Metrics Preview – Nordstrom Q4 Earnings ($45.35)

  • Scheduled to report Q4 earnings on 23-Feb after the close
    • FactSet and StreetAccount (23-26 estimates for EPS/revenue, 4-5 for margins):
      • Revenue $4.35B
      • EPS $1.15
      • Retail
        • Comps +0.4%
        • Gross margin 35.1%
        • SG&A 26.8%
      • Consolidated
        • SG&A 27.6%
        • Operating margin 8.3%
    • Current FY Guidance (Jan 2017):
      • Comps flat
      • EPS $2.85-2.95

(CAKE)  Cheesecake Factory guides Q1 EPS $0.71-0.74 vs FactSet $0.73 - conf call ($60.10) 

  • Q1:
    • Comps flat to +1% vs FactSet consensus +1.1%
    • Revenue $565M at midpoint of the range vs FactSet $580.2M
  • FY17 (Dec 2017):
    • EPS $2.95-3.07 vs prior $2.95-3.11 vs FactSet $3.05
      • Assumes wage rate inflation of ~5%
    • Comps maintained at +1-2% vs FactSet +1-2%
    • Tax Rate 23-24% unchanged
    • Capex $125-140M unchanged

(LB) L Brands reports Q4 EPS $2.03 ex-items vs FactSet $1.90 ($58.13)

  • Reports Q4:
    • Previously reported revenue of $4.489B on 2-Feb
  • Q1 Guidance:
    • EPS $0.20-0.25 vs FactSet $0.49
  • FY Guidance (Jan 2018):
    • EPS $3.05-3.35 vs FactSet $3.68

(PLKI) Popeyes Louisiana Kitchen reports Q4 adjusted EPS $0.48 vs FactSet $0.47 ($79.02) 

  • Reports Q4:
    • Revenue $61.0M vs FactSet $59.9M
    • Global comps +2.8%.
      • Domestic +3.0%
      • International +1.6%
  • Note PLKI was acquired by Restaurant Brands (QSR) yesterday

(SPTN) SpartanNash reports Q4 EPS $0.53 ex-items vs FactSet $0.48 ($38.87)

  • Reports Q4:
    • Revenue $1.83B vs FactSet $1.80B
    • Adjusted EBITDA $50.8M vs FactSet $51.1M
  • FY Guidance (Dec 2017):
    • EPS $2.26-2.35 vs FactSet $2.35
    • Capex $70-72M
  • Q1'17 Guidance:
    • Earnings to flat to slightly below the prior year due to the timing of New Year’s Day, which as previously mentioned will negatively impact first quarter sales and profits, the timing of the recognition of health care funding costs, unseasonably warm weather, and the seasonality of the Caito business, which is stronger in the summer months.

Upgrades/ Downgrades

(SGC) Superior Uniform Group reports Q4 EPS $0.30 vs FactSet $0.26 -- 1 estimate ($16.79) 

  • Reports Q4:
    • Revenue $64.7M vs FactSet $64.6M -- 1 estimate
  • Comments/Outlook:
    • “Our updated guidance relative to net sales is as follows: Over the next three to five years on average, we expect organic growth in our uniform segment will exceed 6 percent, our promotional products segment will exceed 15 percent organic growth and our remote staffing solutions segment will generate growth of $3.0 million to $3.5 million per year."
    • "Overall, we expect average organic growth in excess of 8 percent. We intend to supplement our organic growth with acquisitions in the promotional products segment each year while continuing to pursue acquisitions in the uniform segment as they become available.”

(KEM) Follow-up: KEMET announces agreement to acquire NEC TOKIN ($8.46)

  • KEMET will host a conference call at 9:00 ET this morning- Thursday, 23-Feb-17, to discuss the acquisition
  • Participants in the United States should dial 1-800-416-8033, and participants outside the United States should dial 1-706-643-0979.
  • Participants should reference "KEMET Corporation" and Conference ID #77525020.

(KEM) KEMET announces agreement to acquire NEC TOKIN ($8.46) 

  • KEMET announced that, through its wholly owned subsidiary, KEMET Electronics Corporation, it has signed a definitive agreement and is targeting a closing date on or about 10-Apr-17 to complete the acquisition of NEC TOKIN Corporation from NEC Corporation
  • Upon closing, NEC TOKIN will change its name to TOKIN Corporation and become a wholly-owned subsidiary of KEMET.
  • To facilitate the acquisition, the company also announced that NEC TOKIN has entered into an agreement to sell its EMD division (Electromechanical Devices) to NTJ Holdings 1 Ltd., a special purpose entity that is owned by funds managed or operated by Japan Industrial Partners, Inc. for approximately ¥48.2B or approximately $422M, prior to adjustments for net debt at closing and subject to customary post-closing adjustments.
  • The proceeds of this transaction, after fees and taxes, will be used in part to repay the NEC intercompany debt resulting in an essentially debt-free balance sheet of NEC TOKIN once it is acquired by KEMET.
  • Under the terms of the definitive stock purchase agreement, KEC will pay to NEC the amount of ¥6.0B, or approximately $52.5M, plus one-half of the remaining amount which is determined to be the excess amount of net cash proceeds from the sale of the EMD business.
  • NEC TOKIN will also use a portion of the net cash proceeds from the sale of the EMD business to repay in full the outstanding indebtedness of NEC TOKIN that is owed to NEC, which is currently ¥25.4B, or approximately $222.4M.
  • Based on current estimates, after all payments to NEC (and net of taxes, fees and expenses), it will effectively result in a net cash inflow to NEC TOKIN and the company.

(LKQ) LKQ Corp reports Q4 EPS $0.39 ex-items vs FactSet $0.39 ($33.05)

  • Reports Q4:
    • Revenue $2.15B vs FactSet $2.26B
  • FY Guidance (Dec 2017):
    • EPS $1.80-$1.90 vs FactSet $2.01
    • Organic revenue growth for parts & services 4.0% to 6.0%
    • Cash flow from operations $610M to $640M
    • Capital expenditures $200M to $225M

(VC) Visteon reports Q4 Adjusted EBITDA $96M vs FactSet $90.8M ($94.48) 

  • Reports Q4:
    • Revenue $816.0M vs FactSet $794.2M
    • EPS $1.82 ex-items
  • FY Guidance (Dec 2017):
    • Adjusted EBITDA $355-370M vs FactSet $355.8M
    • Net income $155-170M
    • Electronics Product Group
      • Revenue $3.1-3.2B
      • Adjusted free cash flow $165-180M.

(JAKK) JAKKS Pacific reports Q4 EPS ($0.47) vs FactSet ($0.68) ($5.05) 

  • Reports Q4:
    • Revenue $167.0M vs FactSet $159.4M
    • EBITDA $4.0M vs FactSet ($2.6M)
  • FY Guidance (Dec 2017):
    • For 2017, the company expects higher net income, EPS and Adjusted EBITDA on lower net sales compared to 2016. The company also expects improved profitability in 2017 with a continued focus on building our base of evergreen brands and categories as well as entering new categories, creating a strong portfolio of new and existing licenses and developing owned IP and content.

(SWK) Stanley Black & Decker completes previously-announced sale of Mechanical Security stake to dormakaba (DOKA.SW) ($127.29)

  • Earnings impact:
    • 2017 EPS dilution from the transaction of $0.19 vs prior guidance $0.15-0.20
    • Combined with acquisition of Newell tools, expects net 2017 EPS accretion of $0.05 vs at least $0.05

(TSLA) WSJ's Heard on the Street column is cautious on Tesla ($273.51)

  • The column says that although Q4 sales beat estimates, the future would depend on whether Elon Musk's timeline to deliver Model 3 Sedan can materialize.

(TSLA) Tesla CFO Jason Wheeler to leave -- conference call ($273.51) 

  • Previous CFO, Deepak Ahuja will return and take over from Wheeler. Wheeler says he is going into public sector.

(TSLA) StreetAccount Metrics Recap - Tesla Q4 Earnings ($273.51) 

  • Revenue
    • Automotive $1.99B
    • Energy generation and storage $131.4M
    • Services and other $159.1M
  • Gross margin
    • Reported 19.1% vs 27.7% in Q3
    • Automotive 22.6% vs 29.4% in Q3
    • Non-GAAP automotive 22.2% vs 25.0% in Q3
  • Cash from operations ($448.2M)
  • Operating cash flow plus change in collateralized lease borrowing ($236.2M)

(TSLA) Tesla reports Q4 EPS ($0.69) ex-items vs FactSet ($0.53) ($273.51)

  • Reports Q4:
    • Revenue $2.28B vs FactSet $2.16B
  • FY Outlook:
    • Model 3 and solar roof launches are on track for H2
    • Expect to deliver 47,000 to 50,000 Model S and Model X vehicles combined in H1
    • Both GAAP and non-GAAP automotive gross margin should recover in Q1 to Q3 2016 levels and then continue to expand in Q2 2017.
    • For energy generation and storage business, plan to prioritize profitability and cash preservation over total MW deployed ahead of the solar roof launch.
    • On track to generate $500M in cash (including growth of non-recourse project financing) by 2019 and achieve the cost synergies committed to upon acquiring SolarCity.
    • Expect to invest $2-2.5B in capital expenditures ahead of the start of Model 3 production

(STLY) Stanley Furniture reports Q4 EPS ($0.02) vs year-ago $0.06 ($0.82)

  • Reports Q4:
    • Revenue $9.8M vs year-ago $13.8M
  • Management comments:
    • "As shipments from multiple vendors begin to service order backlog as expected in Q2, we should see an uptick in both sales and order rates. Cash should remain at or near current levels for H1, and we expect to utilize our secured credit facility only if we need additional net working capital to grow as we move into the latter part of the year. We expect to increase inventory turns and generate cash for the total year, and we expect modest profits beginning with Q2 results and for the total year."

(RGR) Sturm Ruger reports Q4 EPS $1.10 vs FactSet $0.91 -- 1 estimate ($50.30)

  • Reports Q4:
    • Revenue $161.8M vs FactSet $154.0M -- 1 estimate
    • Dividend:
      • The company also announced that its board declared a dividend of $0.44 per share for Q4, for shareholders of record as of 17-Mar-17, payable on 31-Mar-17.
      • This dividend is approximately 40% of net income.
  • Expects 2017 capital expenditures to total approximately $40M, as it continues to prioritize new product development.

(TILE) Interface announces COO Jay Gould will succeed Daniel Hendrix as CEO; effective 3-Mar ($17.80)

  • Hendrix will continue his involvement with the company remaining as Chairman of the Board of Directors.

(ICON) Iconix Brand reports Q4 EPS $0.38 ex-items ($9.18)

  • Reports Q4:
    • Unclear if comparable to FactSet $0.10
    • Revenue $87.1M vs FactSet $84.4M
  • FY Guidance (Dec 2017):
    • EPS $0.70-0.85 ex-items vs FactSet $0.97
    • Revenue to $350M to $365M vs FactSet $360.9M
    • Free cash flow in 2017 of approximately $105M to $125M.

(LDL) Lydall reports Q4 adjusted EPS $0.52 vs FactSet $0.68 ($59.55) 

  • Reports Q4:
    • Revenue $144.2M vs FactSet $145.5M -- 2 estimates
    • Adjusted gross margin of 22.4%, up 20 basis points
    • Adjusted operating margin of 8.4%, down 60 basis points
    • Adjusted EBITDA margin of 12.5%, up 20 basis points
  • Outlook/Management comments:
    • “Overall, demand in our end markets remains solid, and we are starting to see early signs of stabilization and improvement in the power generation and energy space where Technical Nonwovens has faced market weakness since early 2016. We are encouraged by improving order activity and increased backlog entering the year in these industrial filtration focused applications.
    • "We expect demand in our automotive segments to be steady with recent periods as we continue to benefit from the relative strength of the platforms we serve. In the Performance Materials segment, we expect improved demand to continue in our filtration markets, and in the insulation space, we are experiencing early signs of increased quoting activity in liquid natural gas and energy related applications.
    • "Operationally, a critical focus area for us is to ensure that the productivity improvements and corrective actions we have been putting in place in the Thermal/Acoustical Metals segment are executed effectively and sustained so that we are able to realize operating improvement. And finally, we remain focused on the integration of the Texel and Gutsche businesses, and I am pleased with our progress to date.”

(TILE) Interface reports Q4 EPS $0.28 ex-items vs FactSet $0.24 ($17.80)

  • Reports Q4:
    • Revenue $239.5M vs FactSet $248.7M
    • Orders from cont. ops 232,300 vs year ago 240,900

(CRI)  StreetAccount Metrics Recap – Carter Holdings Q4 Earnings ($83.58)

  • Key operating metrics:
    • Comps (total, incl. eCommerce)
      • Carters +5.4% vs FactSet +3.6%
      • OshKosh +5.8% vs FS +2.1%
      • Canada +10.9%
    • Comps (stores, ex. eCommerce)
      • Carters +0.1% vs FS (2.5%)
      • OshKosh +0.6% vs FS (3.0%)
      • Canada +6.9%
    • Gross margin 43.9% vs FS 43.1%
    • SG&A 30.0% vs FS 29.8%
    • Operating margin 15.2% vs FS 14.7% and year-ago 13.5%
    • Merchandise inventories $487.6M, +3.8% y/y - note sales growth was +8% during the quarter

(KSS) StreetAccount Metrics Recap – Kohl's Q4 Earnings ($41.78)

  • Key operating metrics:
    • Comps (2.2%) vs FactSet (2.1%)
    • Gross margin 33.4% vs FS 32.8% and year-ago 33.1%
    • SG&A 21.9% vs FS 21.9% and year-ago 20.9%
    • Operating margin 7.6% vs FS 7.1% and year-ago 8.5%
    • Merchandise inventories $3.80B, (6.0%) y/y - note sales growth was (2.8%) during the quarter
  • Additional FY guidance:
    • Gross margin +10-15 bp
    • SG&A dollars +0.5-2% and flat to +1.5% ex-53rd week in 2017
    • Capex $700M
    • Repurchase $350M in stock
  • Management comments:
    • “Sales results were weak for the quarter in total, driven by declines in brick and mortar traffic, and offset somewhat by strength in online demand. We saw improvement in merchandise margin, and our team continued to manage inventory and expenses extremely well. In 2017, we will accelerate our focus on becoming the destination for active and wellness with the launch of Under Armour in early March. We will also extend our efforts on improving our speed to market across all of our proprietary brands into all apparel areas and home.”

(KSS) Kohl's reports Q4 EPS $1.44 vs FactSet $1.33 ($41.78)

  • Reports Q4:
    • Revenue $6.21B vs FactSet $6.21B
  • FY Guidance (Jan 2018):
    • EPS $3.50-$3.80 vs FactSet $3.73
    • Comparable sales change of (2)% to 0% vs. FactSet (0.1%)

(W) Wayfair reports Q4 non-GAAP EPS ($0.34) vs FactSet ($0.50) ($41.26)

  • Reports Q4:
    • Revenue $984.6M vs FactSet $970.2M
    • Adjusted EBITDA ($12.0M) vs FactSet ($26.2M)

(CRI) Carter Holdings reports Q4 EPS $1.79 ex-items vs FactSet $1.67; raises dividend ($83.58) 

  • Reports Q4:
    • Revenue $934.2M vs FactSet $915.9M
    • Repurchased and retired 690,434 shares of its common stock for $61.3M at an average price of $88.79 per share
  • Q1 Guidance:
    • EPS ex-items $0.80 to $0.85 vs FactSet $1.14
    • Revenue decline in the low-single digit range vs FactSet +3.7%
  • FY Guidance (Dec 2017):
    • EPS ex-items growth of 8% to 10% vs FactSet +9.6%
    • Revenue growth of 4% to 6% vs FactSet +5.4%
  • Dividend:
    • Authorized a 12% increase ($0.04 per share) to its quarterly cash dividend, to $0.37 per share, for payment on 24-Mar-17, to shareholders of record at the close of business on 10-Mar-17

(CRI) Carter Holdings acquires Skip Hop Holdings ($83.58)

  • The company announced that it has acquired Skip Hop Holdings, Inc. , a global lifestyle brand for families with young children, from Fireman Capital Partners, a consumer-focused private equity firm.
  • The acquisition of Skip Hop is expected to be accretive to Carter’s fiscal 2017 adjusted EPS, excluding the impact of non-recurring transaction or integration-related expenses.
  • The transaction has been structured as an acquisition of all of the outstanding equity of Skip Hop. The total purchase price is $140M in cash consideration, subject to a working capital adjustment, plus a potential future payment of up to $10M contingent upon the achievement of certain fiscal targets in 2017.
  • J.P. Morgan Securities LLC acted as financial advisor to Carter's.

(JWN) StreetAccount Consensus Metrics Preview – Nordstrom Q4 Earnings ($45.35)

  • Scheduled to report Q4 earnings on 23-Feb after the close
    • FactSet and StreetAccount (23-26 estimates for EPS/revenue, 4-5 for margins):
      • Revenue $4.35B
      • EPS $1.15
      • Retail
        • Comps +0.4%
        • Gross margin 35.1%
        • SG&A 26.8%
      • Consolidated
        • SG&A 27.6%
        • Operating margin 8.3%
    • Current FY Guidance (Jan 2017):
      • Comps flat
      • EPS $2.85-2.95

(CAKE)  Cheesecake Factory guides Q1 EPS $0.71-0.74 vs FactSet $0.73 - conf call ($60.10) 

  • Q1:
    • Comps flat to +1% vs FactSet consensus +1.1%
    • Revenue $565M at midpoint of the range vs FactSet $580.2M
  • FY17 (Dec 2017):
    • EPS $2.95-3.07 vs prior $2.95-3.11 vs FactSet $3.05
      • Assumes wage rate inflation of ~5%
    • Comps maintained at +1-2% vs FactSet +1-2%
    • Tax Rate 23-24% unchanged
    • Capex $125-140M unchanged

(LB) L Brands reports Q4 EPS $2.03 ex-items vs FactSet $1.90 ($58.13)

  • Reports Q4:
    • Previously reported revenue of $4.489B on 2-Feb
  • Q1 Guidance:
    • EPS $0.20-0.25 vs FactSet $0.49
  • FY Guidance (Jan 2018):
    • EPS $3.05-3.35 vs FactSet $3.68

(PLKI) Popeyes Louisiana Kitchen reports Q4 adjusted EPS $0.48 vs FactSet $0.47 ($79.02) 

  • Reports Q4:
    • Revenue $61.0M vs FactSet $59.9M
    • Global comps +2.8%.
      • Domestic +3.0%
      • International +1.6%
  • Note PLKI was acquired by Restaurant Brands (QSR) yesterday

(SPTN) SpartanNash reports Q4 EPS $0.53 ex-items vs FactSet $0.48 ($38.87)

  • Reports Q4:
    • Revenue $1.83B vs FactSet $1.80B
    • Adjusted EBITDA $50.8M vs FactSet $51.1M
  • FY Guidance (Dec 2017):
    • EPS $2.26-2.35 vs FactSet $2.35
    • Capex $70-72M
  • Q1'17 Guidance:
    • Earnings to flat to slightly below the prior year due to the timing of New Year’s Day, which as previously mentioned will negatively impact first quarter sales and profits, the timing of the recognition of health care funding costs, unseasonably warm weather, and the seasonality of the Caito business, which is stronger in the summer months.
Morning Summary | TMT | Energy  | Healthcare  | Consumer  | Financial  | Industrial  | Global Trading Summary

Financial News

John Fay, Brad Berger (203) 861-7650 | 2.23.2017

News

BCS-Barclays PLC reports in-line earnings results; misses on op income Reports FY16 EPS of GBP0.10 vs GBP0.10 Capital IQ consensus; Net operating income declined 6% YoY to GBP19.1 bln vs GBP21.1 bln consensus Return on average tangible shareholders' equity: 3.6% vs (0.7%) in FY15 Cost: income ratio: 76% vs 84% in FY15 Loan loss rate (bps): 53 vs 42 in FY15 Credit impairment charges increased 38% to £2,251m resulting in a 13bps increase in the loan loss rate to 58bps, including a £320m charge in Q316 following the management review of the UK and US cards portfolio impairment modelling, and a number of single name exposures The fully loaded CRD IV CET1 ratio increased to 12.4% (December 2015: 11.4%) reflecting an increase in CET1 capital of £4.5bn to £45.2bn, despite RWAs increasing by £7bn to £366bn Dividends A final dividend for 2016 of 2.0p per share will be paid on 5 April 2017, resulting in a total 3.0p dividend per share for the year Outlook and Guidance Barclays today announces the intention to close Non-Core early at 30 June 2017, at which point RWAs are expected to be approximately £25bn. The composition of the assets at that date are expected to consist primarily of residual derivatives, Italian mortgages and the ESHLA portfolio. Further information on the allocation of the residual Non-Core between Barclays UK and Barclays International will be provided on closure Loss before tax in 2017 generated by Non-Core operations is expected to be approximately £1bn, excluding fair value gains or losses on the ESHLA portfolio. A greater proportion of this loss is expected to occur in H117 reflecting continued exit costs The end-state CET1 capital ratio target has been revised to 150-200bps above the minimum regulatory level, providing 400-450bps buffer to the Bank of England stress test systemic reference points

OUT-OUTFRONT Media beats by $0.05, beats on revs; increases quarterly dividend  Reports Q4 (Dec) funds from operations of $0.56 per share, $0.05 better than the two analyst estimate of $0.51; revenues fell 0.3% year/year to $397.4 mln vs the $392.59 mln Capital IQ Consensus. "While we are seeing a slower start to the year than expected, the growth we anticipate in AFFO during 2017 supports our board of directors' decision to increase the quarterly dividend by 6% to $0.36 per share." Co increased its quarterly dividend to $0.36/share from $0.34/share.

SBRA-Sabra Healthcare REIT beats by $0.05, misses on revs Reports Q4 (Dec) funds from operations of $0.62 per share, $0.05 better than the Capital IQ Consensus of $0.57; revenues fell 7.5% year/year to $61.8 mln vs the $63.45 mln Capital IQ Consensus Sabra had another strong operational quarter. Skilled/Transitional EBITDAR coverage improved sequentially to a new high of 1.52x. Senior Housing EBITDAR coverage improved sequentially to 1.22x Skilled/Transitional occupancy improved sequentially 90 basis points to 88.2%. Skilled mix was essentially flat at 43.8%. Senior Housing occupancy was essentially flat sequentially at 89.4%. Genesis fixed charge coverage was flat at 1.24x, Holiday AL Holdings LP was flat at 1.17x and Tenet Health Care Corporation came in at 2.19x

ROIC-Retail Opportunity Investments beats by $0.01, beats on revs; guides FY17 FFO in-line; increases quarterly dividend 4.2% Reports Q4 (Dec) funds from operations of $0.27 per share, $0.01 better than the Capital IQ Consensus of $0.26; revenues rose 23.0% year/year to $63.1 mln vs the $60.66 mln Capital IQ Consensus. 5.5% increase in same-center cash net operating income (4Q'16 vs. 4Q'15). 33.1% increase in same-space cash rents on new leases (16.7% increase on renewals). 4.0x interest coverage (4th consecutive year-end at or above 4.0x). Co issues in-line guidance for FY17, sees FFO of $1.10-1.14 vs. $1.12 Capital IQ Consensus Estimate.
Dividend: On February 22, 2017, ROIC's board of directors declared a cash dividend of $0.1875 per share, payable on March 30, 2017 to stockholders of record on March 16, 2017. The $0.1875 per share dividend represents a 4.2% increase as compared to ROIC's previous dividend.

O-Realty Income beats by $0.02, beats on revs; guides FY17 FFO below consensus Reports Q4 (Dec) funds from operations of $0.77 per share, $0.02 better than the Capital IQ Consensus of $0.75; revenues rose 9.2% year/year to $287.84 mln vs the $271.72 mln Capital IQ Consensus. The company's portfolio of commercial real estate, owned primarily under 10- to 20-year net leases, continues to perform well and provides dependable rental revenue supporting the payment of monthly dividends. As of December 31, 2016, portfolio occupancy was 98.3% with 84 properties available for lease out of a total of 4,944 properties in the portfolio, as compared to 98.3% as of September 30, 2016, and 98.4% as of December 31, 2015. Economic occupancy, or occupancy as measured by rental revenue, was 98.9% as of December 31, 2016, as compared to 98.8% as of September 30, 2016, and 99.2% as of December 31, 2015. During the quarter ended December 31, 2016, same store rents on 4,045 properties under lease increased 0.9% to $223.67 million, as compared to $221.66 million for the same quarter in 2015. During 2016, same store rents on 4,045 properties under lease increased 1.2% to $888.51 million, as compared to $878.36 million for 2015. Co issues downside guidance for FY17, sees FFO of $3.00-3.06 vs. $3.07 Capital IQ Consensus Estimate.

AFH-Atlas Financial reports select prelim Q4 and year end results; anticipates book value to be in the range of $10.35 to $10.55 per common share diluted as at December 31, 2016, vs $10.15 at December 31, 2015 Co announced results for its fourth quarter and year ended December 31, 2016, which included reserve strengthening on higher than expected losses related primarily to significantly increased severity in light commercial auto within the Michigan market and pre-acquisition claims at Global Liberty.  In total, based on claim payment made through year-end 2016, Michigan claims for policy years 2010 through 2015 exceeded the amount that would have been proportionate by ~$23 million.  Gross Written Premium generated by the Company for the full year ended December 31, 2016 grew year over year by 7.6% to $225.1 million, of which Michigan business represented $9 million of the full year premium. To a lesser extent, the overall severity trend on smaller losses in other markets was also a consideration.  After the impact of taxes and of preferred share adjustments related to acquisition agreements, the impact on net income will be ~$17 million for the fourth quarter and year ended December 31, 2016. Atlas remains committed to its previously stated goal of exceeding P&C industry ROE by 500 to 1,000 bps going forward based on more recent accident years. Co's CEO stated, "While Atlas prides itself on disciplined and better-than-industry underwriting and conservative reserving, we did not anticipate the level of loss development in Michigan increasing dramatically over the past year. Our team is confident that we have addressed the issues at the heart of this problem, have taken appropriate steps, and will learn from it as part of our ongoing commitment to continuous improvement, which has always been a priority at Atlas. With respect to pre-acquisition related claims at Global Liberty, the transaction was structured to mitigate potential development. We have isolated any remaining exposure with a clear plan in place for remaining claims, and continue to feel very good about the strategic benefits and expected future profitability of this business. While the impact of our reserve strengthening is significant, we believe it is isolated and that our overall book of business is sound, as will be demonstrated going forward."

LHO-LaSalle Hotel reports FFO in-line, beats on revs Reports Q4 (Dec) funds from operations of $0.62 per share, in-line with the Capital IQ Consensus of $0.62; revenues fell 1.8% year/year to $289.5 mln vs the $286.31 mln Capital IQ Consensus. RevPAR increased 2.5% y/y to $193.10.  Hotel EBITDA Margin improved 42 bps to 32.1%. The company invested $102.1 million of capital in its hotels throughout the year, completing renovations at the Chaminade Resort and Conference Center in Santa Cruz, Gild Hall in New York City, Hotel Solamar in San Diego, Hotel Amarano Burbank, The Liberty Hotel in Boston, Lansdowne Resort in Lansdowne, VA, Hotel Palomar, Washington, DC, the Mason & Rook Hotel in Washington, DC, and the second phase of the rooms renovation at Westin Michigan Avenue in Chicago.

PGRE-Paramount Group misses by $0.02, misses on revs; guides FY17 FFO below consensus Reports Q4 (Dec) funds from operations of $0.18 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus of $0.20; revenues fell 2.2% year/year to $166.8 mln vs the $168.84 mln Capital IQ Consensus.  Co issues downside guidance for FY17, sees core FFO of $0.83-0.87, vs. $0.89 Capital IQ Consensus Estimate. FY17 guidance assumes: (i) an increase in Same Store Cash NOI of 6.0% to 9.0%, resulting in an incremental $0.08 per diluted share, (ii) an increase in Cash NOI of $0.08 per diluted share from the acquisition of One Front Street and 60 Wall Street, (iii) an increase in fee income, net of income taxes, of $0.01 per diluted share and (iv) a decrease in interest expense of $0.02 per diluted share, which includes the impact of repaying the mortgage debt at 1899 Pennsylvania Avenue and Liberty Place using the Waterview sales proceeds, partially offset by (v) a decrease in Cash NOI of $0.07 per diluted share from the disposition of Waterview, (vi) a decrease in lease termination income of $0.06 per diluted share, (vii) a decrease in non-cash straight-line rent and amortization of above and below-market lease revenue of $0.03 per diluted share, and (viii) an increase in non-cash general and administrative expenses of $0.02 per diluted share, resulting from the amortization of a new layer of equity grants.

CHSP-Chesapeake Lodging Trust beats by $0.02, beats on revs; guides Q1 FFO below consensus; guides FY17 FFO below consensus Reports Q4 (Dec) funds from operations of $0.48 per share, $0.02 better than the Capital IQ Consensus of $0.46; revenues fell 0.7% year/year to $145.13 mln vs the $142.52 mln Capital IQ Consensus. RevPAR: 0.6% decrease for the hotel portfolio over the same period in 2015.  Co issues downside guidance for Q1, sees FFO of $0.35-0.38 vs. $0.39 Capital IQ Consensus Estimate 22-Hotel Portfolio: Sees RevPAR (6.5-4.5%) 15-Hotel Portfolio: Sees RevPAR (4.0-2.0%) Co issues downside guidance for FY17, sees FFO of $2.10-2.20 vs. $2.33 Capital IQ Consensus Estimate 22-Hotel Portfolio: Sees RevPAR (3.5-1.5%) 15-Hotel Portfolio: Sees RevPar (1.0%)-1.0%

SRC-Spirit Realty Capital reports FFO in-line, revs in-line; guides FY17 FFO above consensus Reports Q4 (Dec) funds from operations of $0.21 per share, in-line with the Capital IQ Consensus of $0.21; revenues rose 2.8% year/year to $173.4 mln vs the $173.03 mln Capital IQ Consensus.  Co issues upside guidance for FY17, sees FFO of $0.89-0.91, excluding non-recurring items, vs. $0.88 Capital IQ Consensus Estimate. In addition, 72.0% of the investments associated with these fourth quarter acquisitions were in the retail sector, 22.2% in the industrial sector, and 5.8% in the office sector. These assets are leased to 19 different tenants in 12 different industries.
OCN-Ocwen Fincl beats by $0.08, misses on revs Reports Q4 (Dec) loss of $0.08 per share, excluding non-recurring items, $0.08 better than the two analyst estimate of ($0.16); revenues fell 10.6% year/year to $323.9 mln vs the $334.18 mln Capital IQ Consensus. The Company generated $475 million of Cash Flows from Operating Activities in 2016 and ended the year with $257 million of cash. At December 31, 2016, the Company had not yet paid various potential legal and regulatory settlement amounts expensed in 2016 totaling approximately $68 million.

AHT-Ashford Hospitality Prime beats Q4 estimates Q4 FFO $0.34 vs $0.33 Capital IQ Consensus Estimate; revs +7% to $94 mln vs $93.51 mln Capital IQ Consensus Estimate. Comparable RevPAR for all Hotels Not Under Renovation Increased 3.6%. "We enter 2017 well-positioned to execute on our refined strategy to align our portfolio with the luxury chain scale segment. We believe our core portfolio will be positioned to realize above average RevPAR growth over the long-term and will differentiate us relative to our REIT peers."

RLJ-RLJ Lodging Trust beats by $0.07, beats on revs Reports Q4 (Dec) funds from operations of $0.60 per share, $0.07 better than the Capital IQ Consensus of $0.53; revenues fell 1.4% year/year to $271.45 mln vs the $265.05 mln Capital IQ Consensus. Pro forma RevPAR decreased 0.3%, Pro forma ADR decreased 0.2%, and Pro forma Occupancy decreased 0.1% FY17 pro forma RevPAR expected between -1.0% and +1.0%

HT-Hersha Hospitality Trust reports FFO in-line, misses on revs; guides FY17 AFFO below consensus Reports Q4 (Dec) funds from operations of $0.52 per share, in-line with the Capital IQ Consensus of $0.52; revenues fell 9.5% year/year to $111.45 mln vs the $113.97 mln Capital IQ Consensus. RevPAR at the 43 comparable hotels increased 0.3% to $165.73 in fourth quarter 2016. The average daily rate for the comparable hotel portfolio increased 2.1% to $211.95, while occupancy decreased 136 basis points to 78.2%. Hotel EBITDA margins for the comparable hotel portfolio decreased 70 bps to 34.9%. Excluding Hyatt Union Square and The Sanctuary Beach Resort, which reported disproportionate margin deterioration due to renovations in connection with the re-concepting of the restaurants' food and beverage outlets, the Company's comparable EBITDA margins decreased 30 basis points.  2017 Outlook: Co sees FY17 AFFO of $2.08-2.31 vs. $2.40 Capital IQ Consensus Estimate. Comparable Property RevPAR Growth 0.0-2.0%, Comparable Property EBITDA Margins -1.0% to 0.0%; Adjusted EBITDA $162.0-172.0 mln.
Morning Summary | TMT | Energy  | Healthcare  | Consumer  | Financial  | Industrial  | Global Trading Summary

Industrial News

 (203) 861-7650 | 2.23.2017

News

(EVA) Enviva Partners reports Q4 results ($27.95)

  • Reports Q4:
    • Revenue $126.5M vs FactSet $116.6M
    • Adjusted EBITDA:
      • $22.8M
      • $22.2M, ex-Sampson drop-down prior to acquisition date
      • FactSet consensus $22.4M
    • Distributable cash flow:
      • $13.1M
      • $12.6M, ex-Sampson drop-down prior to acquisition date
  • Reaffirms FY Guidance (Dec 2017):
    • Net income $31-35M
    • Adjusted EBITDA $110-114M vs FactSet $117.0M

(AGI) Alamos Gold reports year-end Proven and Probable mineral reserves of 7.7M ounces of gold, +31% y/y ($8.03)

  • Measured and Indicated mineral resources decreased 14% to 9.3M ounces of gold5

(AGI) Alamos Gold reports Q4 EPS ($0.08), including items ($8.03)

  • Reports Q4:
    • EPS for the quarter includes an unrealized foreign exchange loss of $7.2M ($0.03 per share), foreign exchange losses recognized within deferred taxes of $8.6M ($0.03 per share) and various non-cash gains included in Other gains, totaling $1.9M ($0.01 per share).
    • FactSet consensus is $0.01 and may not be comparable.
    • Revenue $132.2M vs FactSet $129.8M
    • As previously reported, record quarterly production of 105,676 ounces of gold, including 44,662 ounces from Young-Davidson, 44,900 ounces from Mulatos and 16,114 ounces from El Chanate
  • Reaffirms FY Guidance (Dec 2017):
    • Reaffirms production guidance of 400,000 to 430,000 ounces of gold
      • Consolidated all-in sustaining costs are expected to decrease to $940 per ounce
      • Excluding El Chanate, all-in sustaining costs are expected to decrease to $890 per ounce in 2017

(HL) Hecla Mining Company reports Q4 EPS $0.03 ex-items vs FactSet $0.04 ($6.36)

  • Reports Q4:
    • Revenue $164.2M vs FactSet $162.2M
    • Adjusted EBITDA $65.1M vs FactSet $69.5M -- 2 estimates
    • Silver production o3.98 M ounces, +9%
    • Gold production of63.2K ounces, +5%
    • Silver equivalent production of 12.1M ounces, +108%
  • FY outlook:
    • Silver equivalent production46.5-49.4M oz
    • Capex $120-125M

(HEES) H&E Equipment reports Q4 EPS $0.35 vs FactSet $0.27 ($24.44) 

  • Reports Q4:
    • Revenue $244.3M vs FactSet $246.8M
    • Average time utilization (based on original equipment cost) 70.3% vs 72.0% a year ago
    • Average time utilization (based on units available for rent) 67.6% vs 69.3% last year
    • Average rental rates decreased 1.1% y/y
    • Dollar utilization was 34.3% vs 35.5% a year ago

(AAON) AAON reports Q4 EPS $0.21 vs FactSet $0.25 ($34.40)

  • Reports Q4:
    • Revenue $91.7M vs FactSet $100.5M -- 2 estimates

(ZBRA) Zebra Technologies reports Q4 non-GAAP EPS $1.93 vs FactSet $1.73 ($85.73) 

  • Reports Q4:
    • Reported revenue $942.0M vs FactSet $931.0M
    • Adjusted EBITDA $179.0M vs FactSet $178.5M
  • Q1 Guidance:
    • Non-GAAP EPS $1.20-1.40 vs FactSet $1.27
    • Adjusted revenue (2%) to +1% vs prior year's $852.0M, implying $835.0-860.5M
  • FY Guidance (Dec 2017)
    • The company expects low-single digit organic net sales growth for the full year 2017, excluding a 3 percentage point adverse impact from wireless LAN business sales, as well as an estimated 1 percentage point adverse impact from foreign currency translation. The company expects organic net sales growth to moderate through 2017 considering year-over-year comparisons.
    • Adjusted EBITDA margin is expected to be in the range of 18% to 19% for the full year 2017, an improvement compared to the full year 2016.
    • For the full year 2017, the company expects to make debt principal payments totaling at least $300M.

(SWK) Stanley Black & Decker completes previously-announced sale of Mechanical Security stake to dormakaba (DOKA.SW) ($127.29) 

  • Earnings impact:
    • 2017 EPS dilution from the transaction of $0.19 vs prior guidance $0.15-0.20
    • Combined with acquisition of Newell tools, expects net 2017 EPS accretion of $0.05 vs at least $0.05

(GMS) GMS Inc 6.95M-share secondary priced at $29.25/sh through Barclays, Credit Suisse, RBC Capital ($29.79)

  • The offering has been upsized to 6.95M from 6.0M

(CW) Insider transaction: Curtiss-Wright CFO Glenn Tynan discloses sale of 7.7K shares - Form 4 ($98.24)

  • Tynan beneficially owns 67.9K shares of common stock (all direct) following the transaction.

(DOOR) Masonite reports Q4 EPS $0.55 vs FactSet $0.62; approves new repurchase program ($68.50)

  • Reports Q4:
    • Revenue $481.0M vs FactSet $485.4M
    • EBITDA $60.6M vs FactSet $58.6M
  • FY Guidance (Dec 2017):
    • EPS $4.10-$4.60 vs FactSet $3.70
    • EBITDA $285M-$305M vs FactSet $288.3M
    • Masonite’s 2017 annual outlook assumes mid-single digit U.S. housing completions, low to mid-single digit growth in the U.S. repair, renovation and remodel market, continued strength in our U.K. Door-Stop International business and modest growth in the North American Architectural market. We anticipate both the U.K. and Canadian housing markets to be relatively flat. The company expects full-year 2017 net sales growth in the range of seven to nine percent. Excluding anticipated impacts of foreign exchange the company expects net sales growth of eight to ten percent.
  • Repurchase program:
    • The board approved a new share repurchase program pursuant to which the company intends to repurchase up to $200M of its outstanding common shares. This is in addition to the existing share repurchase authorization approved in February 2016, under which approximately $41M remained available for repurchases as of 1-Jan-17. The company expects to largely complete repurchases under both repurchase programs over the next two years, although neither program has a fixed expiration date. Assuming full utilization of the approximately $241M aggregate authorization under both repurchase programs through repurchases made at $68.55, the company’s 21-Feb-17 closing share price, an aggregate of approximately 3.5M shares, or 12% of total shares outstanding as of 1-Jan-17, could be repurchased.

(MCRN) Milacron Holdings reports Q4 Adjusted EBITDA $53.6M vs FactSet $46.3M ($17.86)

  • Reports Q4:
    • Non-GAAP EPS $0.47
    • Revenue $289.1M vs prior guidance $287M-$289M
  • FY Guidance (Dec 2017):
    • Adjusted EBITDA $219M-$225M vs FactSet $212.3M
    • Milacron forecasts 0% to 2% organic sales growth in 2017, which is in line with current market conditions.
    • Free Cash Flow before restructuring is forecasted to be between $95 million and $105 million.

(SBLK) Star Bulk Carriers reports Q4 EBITDA $15.6M vs FactSet $20.7M ($9.59)

  • Reports Q4:
    • Adjusted EPS ($0.29) vs year-ago ($0.56)
    • Revenue $63.2M vs FactSet $57.2M
    • Average Number of Vessels 67.8 vs year-ago 70.1
    • Daily TCE $8,202 vs year-ago $6,897
    • Fleet utilization 98.0% vs year-ago 97.7%

(AAL) American Airlines files mixed shelf of indeterminate amount ($46.32)

Upgrades/ Downgrades

(EVA) Enviva Partners reports Q4 results ($27.95)

  • Reports Q4:
    • Revenue $126.5M vs FactSet $116.6M
    • Adjusted EBITDA:
      • $22.8M
      • $22.2M, ex-Sampson drop-down prior to acquisition date
      • FactSet consensus $22.4M
    • Distributable cash flow:
      • $13.1M
      • $12.6M, ex-Sampson drop-down prior to acquisition date
  • Reaffirms FY Guidance (Dec 2017):
    • Net income $31-35M
    • Adjusted EBITDA $110-114M vs FactSet $117.0M

(AGI) Alamos Gold reports year-end Proven and Probable mineral reserves of 7.7M ounces of gold, +31% y/y ($8.03)

  • Measured and Indicated mineral resources decreased 14% to 9.3M ounces of gold5

(AGI) Alamos Gold reports Q4 EPS ($0.08), including items ($8.03)

  • Reports Q4:
    • EPS for the quarter includes an unrealized foreign exchange loss of $7.2M ($0.03 per share), foreign exchange losses recognized within deferred taxes of $8.6M ($0.03 per share) and various non-cash gains included in Other gains, totaling $1.9M ($0.01 per share).
    • FactSet consensus is $0.01 and may not be comparable.
    • Revenue $132.2M vs FactSet $129.8M
    • As previously reported, record quarterly production of 105,676 ounces of gold, including 44,662 ounces from Young-Davidson, 44,900 ounces from Mulatos and 16,114 ounces from El Chanate
  • Reaffirms FY Guidance (Dec 2017):
    • Reaffirms production guidance of 400,000 to 430,000 ounces of gold
      • Consolidated all-in sustaining costs are expected to decrease to $940 per ounce
      • Excluding El Chanate, all-in sustaining costs are expected to decrease to $890 per ounce in 2017

(HL) Hecla Mining Company reports Q4 EPS $0.03 ex-items vs FactSet $0.04 ($6.36)

  • Reports Q4:
    • Revenue $164.2M vs FactSet $162.2M
    • Adjusted EBITDA $65.1M vs FactSet $69.5M -- 2 estimates
    • Silver production o3.98 M ounces, +9%
    • Gold production of63.2K ounces, +5%
    • Silver equivalent production of 12.1M ounces, +108%
  • FY outlook:
    • Silver equivalent production46.5-49.4M oz
    • Capex $120-125M

(HEES) H&E Equipment reports Q4 EPS $0.35 vs FactSet $0.27 ($24.44) 

  • Reports Q4:
    • Revenue $244.3M vs FactSet $246.8M
    • Average time utilization (based on original equipment cost) 70.3% vs 72.0% a year ago
    • Average time utilization (based on units available for rent) 67.6% vs 69.3% last year
    • Average rental rates decreased 1.1% y/y
    • Dollar utilization was 34.3% vs 35.5% a year ago

(AAON) AAON reports Q4 EPS $0.21 vs FactSet $0.25 ($34.40)

  • Reports Q4:
    • Revenue $91.7M vs FactSet $100.5M -- 2 estimates

(ZBRA) Zebra Technologies reports Q4 non-GAAP EPS $1.93 vs FactSet $1.73 ($85.73) 

  • Reports Q4:
    • Reported revenue $942.0M vs FactSet $931.0M
    • Adjusted EBITDA $179.0M vs FactSet $178.5M
  • Q1 Guidance:
    • Non-GAAP EPS $1.20-1.40 vs FactSet $1.27
    • Adjusted revenue (2%) to +1% vs prior year's $852.0M, implying $835.0-860.5M
  • FY Guidance (Dec 2017)
    • The company expects low-single digit organic net sales growth for the full year 2017, excluding a 3 percentage point adverse impact from wireless LAN business sales, as well as an estimated 1 percentage point adverse impact from foreign currency translation. The company expects organic net sales growth to moderate through 2017 considering year-over-year comparisons.
    • Adjusted EBITDA margin is expected to be in the range of 18% to 19% for the full year 2017, an improvement compared to the full year 2016.
    • For the full year 2017, the company expects to make debt principal payments totaling at least $300M.

(SWK) Stanley Black & Decker completes previously-announced sale of Mechanical Security stake to dormakaba (DOKA.SW) ($127.29) 

  • Earnings impact:
    • 2017 EPS dilution from the transaction of $0.19 vs prior guidance $0.15-0.20
    • Combined with acquisition of Newell tools, expects net 2017 EPS accretion of $0.05 vs at least $0.05

(GMS) GMS Inc 6.95M-share secondary priced at $29.25/sh through Barclays, Credit Suisse, RBC Capital ($29.79)

  • The offering has been upsized to 6.95M from 6.0M

(CW) Insider transaction: Curtiss-Wright CFO Glenn Tynan discloses sale of 7.7K shares - Form 4 ($98.24)

  • Tynan beneficially owns 67.9K shares of common stock (all direct) following the transaction.

(DOOR) Masonite reports Q4 EPS $0.55 vs FactSet $0.62; approves new repurchase program ($68.50)

  • Reports Q4:
    • Revenue $481.0M vs FactSet $485.4M
    • EBITDA $60.6M vs FactSet $58.6M
  • FY Guidance (Dec 2017):
    • EPS $4.10-$4.60 vs FactSet $3.70
    • EBITDA $285M-$305M vs FactSet $288.3M
    • Masonite’s 2017 annual outlook assumes mid-single digit U.S. housing completions, low to mid-single digit growth in the U.S. repair, renovation and remodel market, continued strength in our U.K. Door-Stop International business and modest growth in the North American Architectural market. We anticipate both the U.K. and Canadian housing markets to be relatively flat. The company expects full-year 2017 net sales growth in the range of seven to nine percent. Excluding anticipated impacts of foreign exchange the company expects net sales growth of eight to ten percent.
  • Repurchase program:
    • The board approved a new share repurchase program pursuant to which the company intends to repurchase up to $200M of its outstanding common shares. This is in addition to the existing share repurchase authorization approved in February 2016, under which approximately $41M remained available for repurchases as of 1-Jan-17. The company expects to largely complete repurchases under both repurchase programs over the next two years, although neither program has a fixed expiration date. Assuming full utilization of the approximately $241M aggregate authorization under both repurchase programs through repurchases made at $68.55, the company’s 21-Feb-17 closing share price, an aggregate of approximately 3.5M shares, or 12% of total shares outstanding as of 1-Jan-17, could be repurchased.

(MCRN) Milacron Holdings reports Q4 Adjusted EBITDA $53.6M vs FactSet $46.3M ($17.86)

  • Reports Q4:
    • Non-GAAP EPS $0.47
    • Revenue $289.1M vs prior guidance $287M-$289M
  • FY Guidance (Dec 2017):
    • Adjusted EBITDA $219M-$225M vs FactSet $212.3M
    • Milacron forecasts 0% to 2% organic sales growth in 2017, which is in line with current market conditions.
    • Free Cash Flow before restructuring is forecasted to be between $95 million and $105 million.

(SBLK) Star Bulk Carriers reports Q4 EBITDA $15.6M vs FactSet $20.7M ($9.59)

  • Reports Q4:
    • Adjusted EPS ($0.29) vs year-ago ($0.56)
    • Revenue $63.2M vs FactSet $57.2M
    • Average Number of Vessels 67.8 vs year-ago 70.1
    • Daily TCE $8,202 vs year-ago $6,897
    • Fleet utilization 98.0% vs year-ago 97.7%

(AAL) American Airlines files mixed shelf of indeterminate amount ($46.32)

Morning Summary | TMT | Energy  | Healthcare  | Consumer  | Financial  | Industrial  | Global Trading Summary

Global Trading Summary

Chris Baggio, Ralph Mak, Mark Huttmann (203) 861-7650 | 2.23.2017

News

Asia

Last

Actual

%change

Mtd

Ytd

Nikkei 225

19,371.46

(8.41)

-0.04%

1.73%

1.35%

Shanghai

3,251.38

(9.84)

-0.30%

2.92%

4.76%

Hang Seng

24,114.86

(87.10)

-0.36%

3.23%

9.61%

Australia

5,784.66

(20.44)

-0.35%

2.91%

2.10%

Europe

Last

Actual

%change

Mtd

Ytd

EuroStoxx 50

3,342.76

3.24

0.10%

3.46%

1.58%

Germany

11,984.04

(13.85)

-0.12%

3.90%

4.39%

UK

7,294.26

(8.07)

-0.11%

2.75%

2.12%

France

4,902.03

6.08

0.12%

3.22%

0.82%

 

Market Holidays: Russia

 

Market commentary:

Stocks in Australia weakened for the 4th time in the past 5 sessions in range bound trading as investors continued to digest a heavy dose of earnings. The ASX 200 declined by 0.4%, led lower by utilities, materials, telcos, energy and healthcare stocks while discretionary, industrials, financials and technology stocks advanced. Materials were among the worst performers with BHP Billiton (BHP AU), Rio Tinto (RIO) and Fortescue Metals (FMG) all falling between 2 and 3% after China’s main steel lobby and the World Steel Association warned on the outlook for prices. Energy stocks were also weak despite higher oil prices. Origin Energy (ORG, -2.4) and Santos (STO, -2.2%) fell while Woodside Petroleum (WPL, +1%) bucked the trend. Discretionary names fared better with Invocare Ltd (IVC, +8.4%) and Crown Holdings (CWN, +7.9%) leading the gains on back of better earnings for the former and a buyback and CEO resignation following lackluster earnings for the latter. Market volumes were ~125% of the 20 day average, -5% from yesterday.

 

Stocks in Taiwan were unable to hold onto morning gains, continuing range bound trading of the past week. The Taiex Index fell 0.1% with healthcare, financials, consumer staples, materials and discretionary names leading the declines while telcos and real estate gained. Financials were among the worst performers, led lower by Yuanta Financial (2885 TT, -1.5%), First Financial Holding (2892, -0.8%) and Fubon Financial (2881, -0.7%). Technology stocks were mixed with gains in Quanta Computer (2382, +3.1%) and Largan Precision (3008, +1.4%) being offset by losses in Formosa Sumco Technology (3532, -4.8%) and Foxconn Technology (2354, -3%). Telcos fared better, led higher by Asia Pacific Telecom (3682, +1.9%), Chunghwa Telecom (2412, +1%) and Taiwan Mobile (3045, +0.9%). Market volumes were right around the 20 day average, little changed from yesterday.

 

Japanese stocks fell slightly for a second day in continued lackluster trading. The Nikkei 225 declined by 4 bps with financials, materials, real estate, discretionary and telcos leading the declines while energy, healthcare, utilities, staples and industrials advanced. Financials were the worst performers, led lower by Nomura (8604, -1.5%) and Daiwa Securities (8601, -1.3%) as persistent low volatility continues to suppress trading activity. Mega banks SMFG (8316, -1.6%) and Mitsubishi UFJ (8306, -1%) were also weak. Materials were led lower by Toho Zinc (5707, -2.7%), Dowa Holdings (5714, -1.9%) and Sumitomo Metal Mining (5713, -1.8%). Energy stocks were the best performers, led higher by Showa Shell (5002, +4.1%) after Jefferies reported that the Idemitsu Family may approve a merger between the tow entities. Inpex Corp (1605, +1.6%) also gained. Market volumes were just 90% of the 20 day average, -5% from yesterday.

 

Korean stocks gained for a 4th session after fluctuating between gains and losses for most of the day. The Kospi Index rose by 0.1% with gains in retailers and financials overcoming declines in materials, autos and industrials. Retailers were among the best performers, led higher by E-Mart (139480 KS, +4.1%) on back of positive comments from a local broker while Lotte Shopping was upgraded by Citi (023530, +1.7%). Banks were also strong with KB Financial (105560, +1%) and Hanwha Life (088350, +0.9%) leading the gains. Industrials were led lower by Hanjin Shipping (117930, -60%) with the company resuming trading for the first time in 3 weeks after filing for bankruptcy. Autos were also weak, led lower by Hyundai Motors (005380, -2.3%) and Kia Motors (000270, -1.3%). Market volumes were ~125% of the 20 day average, +40% from yesterday.

 

Hong Kong’s Hang Seng Index fell 0.36% as declines in staples, telecoms, energy and financials outweighed advances in discretionary names and real estate.  Shares of food producer Want Want China Holdings dropped nearly 5%, weighing on staples.  Heavyweight China Mobile fell 1.25% dragging telecoms lower and energy names fell across the board with PetroChina -1.6% underperforming the group.  The banking sector finished lower though performance was mixed in the group.  HSBC was the biggest drag falling 2.1% as shares went ex-div today.  New World Development +3.25% led a rally in real estate names after reporting a 52 percent increase in fiscal first-half earnings Wednesday.  Service shares also ended higher as casino operators advanced.  Sands China added 1.4% and Galaxy Entertainment rose nearly 2%.  Volumes ended at 95% of the 20 day average. 

 

European markets are trading near their opening levels with performance on most indices running +/- 0.40%. Spain and Sweden are outperforming with each higher by 0.35%.  The UK and Germany are each off 0.10% and France is higher by 0.10%. German March GFK consumer confidence numbers slightly missed expectations as did Italian December retail sales data.  Corporate results and political developments remain in focus with Barclays +1.7%, RSA Insurance +5.8% and BAE Systems +1.5% among notable names reporting. Bond yields across the region are mixed with France leading the outperformers following yesterday's political developments and Italy the underperformers as EU demands further fiscal adjustments.  Telecoms, real estate, industrials and energy names lead advancers while utilities, staples and health care names are lower.  The GBP is +0.25%, the EUR is flat and volumes are running at 108% of the 20 day average.  


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Sources:
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