|November 27, 2012|
|16:29 EDT||MMR, HPQ, ACAD, RAH, THO, MNST, CAG||On The Fly: Closing Wrap|
Stocks on Wall Street finished lower on the day, after a mixed session turned negative for all three major averages following comments from Senate Majority Leader Harry Reid. Reid said that he was disappointed with the most recent round of negotiations regarding the fiscal cliff and that little progress had been made... ECONOMIC EVENTS: In the U.S., non-defense capital goods orders excluding aircraft rose 1.7% in October, versus expectations for a 0.5% decline. Total durable goods orders were unchanged for the month, versus expectations for them to decline 0.7%. The S&P Case-Shiller 20-city home-price index gained 0.4% in September compared to the prior month. The Conference Board's consumer confidence index rose to 73.7 in November, beating expectations and hitting its highest level in almost five years. The Richmond Fed manufacturing survey for November registered +9, compared to expectations for it to slide to -9. In Europe, the region's finance ministers, the ECB and the IMF reached an aid deal on Greece, which is expected to help the nation reduce its debt-to-GDP ratio to 124% by 2020... COMPANY NEWS: ConAgra Foods (CAG) agreed to acquire Ralcorp Holdings (RAH) for $90.00 per share, or about $6.8B including the assumption of debt. Shares of Ralcorp shot up $18.57, or 26.44%, to $88.80 following the deal announcement and ConAgra also climbed $1.34, or 4.74%, $29.63 after the news... Hewlett-Packard (HPQ), in response to an open letter issued by Autonomy founder Mike Lynch, said it has evidence that Autonomy inflated its financial metrics and would take legal action on the matter when appropriate. Shares of HP traded lower on the session, down 38c, or 2.98%, to $12.36... MAJOR MOVERS: Among notable gainers were shares of Monster Beverage (MNST) up $6.08, or 13.26%, to $51.96 after Goldman said the FDA's response to Senator Durbin's letter on energy drinks was generally benign and encouraging. Also higher was ACADIA Pharmaceuticals (ACAD), up $3.13, or 136.09%, to $5.43 following its report of positive results from a trial of its treatment for Parkinson's disease psychosis, or PDP. Among the noteworthy losers was McMoRan Exploration (MMR), which slid another $1.47, or 15.23%, to $8.18 a day after the company provided an update on its Gulf of Mexico exploration results and indicated ongoing well difficulties. Also lower were shares of Thor Industries (THO), down $5.00, or 11.47%, to $38.60 after a disappointing Q1 report... INDICES: The Dow was down 89.24, or 0.69%, to 12,878.13; the Nasdaq was down 8.99, or 0.30%, to 2,967.79; and the S&P 500 was down 7.35, or 0.52%, to 1,398.94.
News For CAG;RAH;HPQ;MNST;ACAD;MMR;THO From The Last 14 Days
|November 24, 2015|
|15:23 EDT||HPQ||Notable companies reporting after market close |
Notable companies reporting after the market close, with earnings consensus, include HP Enterprise (HPE), consensus 52c... Hewlett-Packard (HPQ), consensus 45c... Veeva (VEEV), consensus 11c... Guess (GES), consensus 11c... Caleres (CAL), consensus 78c... TiVo (TIVO), consensus 8c.
|15:22 EDT||HPQ||Earnings Watch: Analysts more bullish on HP Inc. than HP Enterprise|
HP Inc. (HPQ) and HP Enterprise (HPE) are set to report fourth quarter earnings after the market close on Tuesday, November 24, with a joint conference call scheduled for 5:00 pm ET. On November 2, following its separation from HP, Hewlett Packard Enterprise debuted as a separately traded enterprise technology company with $53B in annual revenue. The call will feature HP Enterprise president and CEO Meg Whitman and CFO Tim Stonesifer as well as HP Inc. president and CEO Dion Weisler and CFO Cathie Lesjak. EXPECTATIONS: For HP Inc., analysts are looking for EPS of 45c on revenue of $12.86B, according to First Call. The consensus range for EPS is 39c-53c on revenue of $11.83B-$13.48B. For HP Enterprise, analysts are looking for EPS of 52c on revenue of $13.5B, according to First Call. The consensus range for EPS is 41c-61c on revenue of $13.04B-$13.81B. With its Q3 report, the combined company had expected combined Q4 EPS of 92c-98c. Also at that time, HP had narrowed its combined FY15 EPS forecast to $3.59-$3.65 from $3.53-$3.73. This compares to the current consensus estimate for the combined company of $3.63 per share. LAST QUARTER: On August 20, the combined HP reported Q3 EPS of 88c, topping the consensus estimate of 85c, on revenue of $25.3B, which missed a consensus estimate of $25.44B. HP said its Q3 personal systems revenue was down 13% from the prior year period, with total units down 11%, including Desktops units being down 20% and Notebooks units being down 3%. Enterprise Group revenue was up 2% year over year, with Industry Standard Servers revenue up 8%, Storage revenue down 2%, Business Critical Systems revenue down 21%, Networking revenue up 22% and Technology Services revenue down 9%. STREET RESEARCH: Among 33 analysts that cover HP Inc., 18 have Buy or equivalent ratings, 14 have Hold or equivalent ratings and one has a Sell or equivalent rating, according to Bloomberg data. Among 29 analysts that cover HP Enterprise, five have Buy or equivalent ratings, 23 have Hold or equivalent ratings and one has a Sell or equivalent rating, Bloomberg data shows. On November 3, Citi analyst Jim Suva downgraded HP Inc. to Neutral from Buy following the spin-out of HP Enterprise, the company's infrastructure business. Increasing competition may result in additional revenue and margin pressures and potential for increased investment, said Suva, who had a $14.50 price target on HP Inc. shares at the time of the note. On November 4, JPMorgan analyst Rod Hall downgraded HP Inc. to Neutral, citing the company's exposure to "structurally weak" end-markets following the spinoff of HP Enterprise. Hall would like to see data suggesting stabilization in PC demand before getting more constructive on the stock, he said, while setting a $14 target on the shares. That same day, Barclays analyst Mark Moskowitz upgraded HP Inc. to Equal Weight, saying the company's two main segments are "not disappearing" and can drive a "decent yield asset." He similarly set a $14 price target on HP Inc. shares. Moskowitz also started coverage of HP Enterprise with an Underweight rating, his firm's equivalent of a "sell." The company's revenue is at risk due to the cloud's impact on traditional IT, contends Moskowitz, who set a $13 price target on the stock. HP Enterprise could become more acquisitive, which could bring execution and cash flow risks, the analyst added. PRICE ACTION: Ahead of Tuesday's report, HP Inc. shares rose over 3.5% to $14.74, while HP Enterprise was nearly flat at $13.84.
|14:09 EDT||HPQ||HP Inc. technical notes ahead of results|
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|13:49 EDT||HPQ||Hewlett-Packard November weekly 14.5 straddle priced for 5.7% movement|
Hewlett-Packard (HPQ) November weekly 14.5 straddle priced for 5.7% movement into Q4
|11:01 EDT||HPQ||HP Inc. volatility elevated into Q4 and outlook |
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|November 23, 2015|
|10:00 EDT||HPQ||On The Fly: Analyst Upgrade Summary|
Today's noteworthy upgrades include: Abercrombie & Fitch (ANF) upgraded to Peer Perform from Underperform at Wolfe Research... Constellation Brands (STZ) upgraded to Outperform from Market Perform at Cowen... Dick's Sporting (DKS) upgraded to Buy from Hold at Canaccord... Encana (ECA) upgraded to Buy from Hold at Evercore ISI... Genomic Health (GHDX) upgraded to Buy from Neutral at UBS... HP Inc. (HPQ) upgraded to Buy from Hold at Maxim... Heritage Commerce (HTBK) upgraded to Buy from Hold at Sandler O'Neill... James River Group (JRVR) upgraded on improved outlook at BMO Capital... Kellogg (K) upgraded to Outperform from Neutral at Credit Suisse... KeyCorp (KEY) upgraded to Buy from Hold at Jefferies... Och-Ziff Capital (OZM) upgraded to Outperform from Market Perform at Keefe Bruyette... PBF Energy (PBF) upgraded to Buy from Neutral at Goldman... Panera Bread (PNRA) upgraded to Buy from Hold at Maxim... Parkway Properties (PKY) upgraded to Buy from Neutral at Mizuho... PepsiCo (PEP) upgraded to Neutral from Reduce at Nomura... Sanchez Energy (SN) upgraded to Buy from Accumulate at KLR Group... Sonoco (SON) upgraded to Outperform from Neutral at Macquarie... Synchrony (SYF) upgraded to Buy from Neutral at Sterne Agee CRT... Telecom Argentina (TEO) upgraded to Neutral from Sell at Goldman... Teva (TEVA) upgraded to Buy from Neutral at Goldman... TransAlta (TAC) upgraded to Sector Perform from Underperform at RBC Capital... Universal Insurance (UVE) upgraded to Outperform at Keefe Bruyette... Willis Group (WSH) upgraded to Hold from Sell at Deutsche Bank... YPF (YPF) upgraded to Buy from Neutral at Goldman.
|08:58 EDT||HPQ||HP Inc. upgraded to Buy, price target raised to $17 at Maxim|
As reported previously, Maxim analyst Nehal Chokshi upgraded HP Inc. to Buy from Hold, saying there is room for HP to raise its rate of free cash flow return to about 90% from between 50%-75% now. The analyst also sees potential for HP printing supplies to experience a temporary break amid a secular decline, chances for HP to successfully penetrate the multi-function copier market, and for its PC operating margins to expand. Chokshi raised his price target on HP shares to $17 from $14.50.
|08:22 EDT||HPQ||HP Inc. volatility elevated into Q4 and outlook |
HP Inc. November weekly call option implied volatility is at 52, December is at 34, January is at 31 compared to its 2-week range of 18 to 41, suggesting large near term price movement into the expected release of Q4 results on November 24.
|07:27 EDT||HPQ||HP Inc. upgraded to Buy from Hold at Maxim|
|06:09 EDT||HPQ||HP Inc. adds Titan to Engineered by HP Program|
HP Inc. announced the expansion of its Engineered by HP program, collaborating with the world's fifth largest watchmaker, Titan, to infuse technology seamlessly into the way consumers live, providing them with smart accessories that are productive and responsive, but not intrusive.
|November 20, 2015|
|16:35 EDT||CAG||Stocks follow worst week of year with one of best after Fed minutes give clarity|
Stocks ended the week with sharp gains, with the S&P rising over 3%, bouncing back from last week's equally sharp declines. The primary driver of the move appeared to be the Fed minutes, which provided further clarity that December's meeting is firmly on the table for the central bank to make its first rate hike in many years. MACRO NEWS: In the U.S., the minutes from the Fed's last FOMC meeting showed that most participants expect that rate hike conditions will be met by their December meeting. The Fed repeated its constant refrain, though, that the actual decision would depend on the implications for the medium-term outlook from recent economic data... The consumer price index rose 0.2% in October, as expected. When food and energy prices are stripped out, the "core" CPI also rose 0.2%, also matching the consensus forecast. Industrial production slid 0.2% in October, versus expectations for it to have risen 0.1%. Capacity utilization came in as expected at 77.5%. Housing starts fell 11.0% to a 1.06M pace in October, weaker than the expected rate of 1.16M. Building permits, however, rose 4.1% to a 1.15M rate, versus an expected rise of 3.8%. The Empire State index, which measures manufacturing in the N.Y. region, edged up to -10.74 in November, up from last month's -11.4, but below expectations for a -6.5 reading... In Europe, minutes from the most recent European Central Bank policy meeting showed that some participants called for more stimulus amid deflation risks, weak oil prices and a sluggish recovery in the regions' economy... In Asia, Japan's gross domestic product declined 0.8% in the third quarter, missing expectations for a 0.2% decrease and taking the nation's economy back into recession. Later in the week, the Bank of Japan maintained its current pace of monetary stimulus, as expected. Meanwhile, China's Securities Regulatory Commission has restarted initial public offerings for five companies to list on the Shanghai stock exchange and five in Shenzhen, ending a five-month freeze on IPOs. COMPANY NEWS: Shares of Wal-Mart advanced 3.5% on Tuesday after the world's largest retailer reported better than expected quarterly earnings and gave a fiscal year profit outlook that was higher than expected at the midpoint of the company's range. Another retail giant and fellow Dow member, Home Depot (HD), gained more than 4% that day after its own better than expected quarterly reports, which came on the heels of largely disappointing reports from other major retailers. Target (TGT), however, fell more than 4% on Wednesday after the retailer reported in-line quarterly sales and profits and narrowed the range of its fiscal year earnings view. Among others reporting earnings this week, TJX Companies (TJX) and Keurig Green Mountain (GMCR) rose immediately following their reports, while Kirkland's (KIRK) and Nimble Storage (NMBL) fell right after their own... The biggest U.S. health insurer said Thursday that it is considering pulling out of Obamacare due to losses it has suffered from its participation in the program and cut its profit outlook for this fiscal year, sending its shares and those of its industry peers lower. UnitedHealth (UNH) fell after trimming its fiscal 2015 earnings outlook, citing the Affordable Care Act, and stating that it is "evaluating the viability of the insurance exchange product segment." Aetna (AET), Humana (HUM), Anthem (ANTM) and Cigna (CI) all declined following their rival's announcement, though Aetna and Anthem followed the news up Friday morning by each reaffirming their fiscal 2015 earnings outlooks. Hospital stocks fell as well, with HCA Holdings (HCA), LifePoint (LPNT), Community Health (CYH) and Tenet (THC) all ending the Thursday lower by 6% or more... Square (SQ) rose 45% to close its first day as a publicly-traded company at $13.07 after pricing its initial public offering at $9 per share. Twitter (TWTR), which, like Square, claims Jack Dorsey as its CEO, advanced a bit following Square's public debut as well. Another high-profile tech company also gained in its first day of public trading, as Match Group (MTCH), the owner of dating app Tinder and other online dating services, climbed 22.8% to $14.74 after pricing its IPO at $12 per share... Bloomberg reported that Pfizer (PFE) is nearing an agreement to acquire Allergan (AGN) for $370 to $380 per share, citing people familiar with the matter. CNBC's David Faber then reported that deal talks are in the "final innings" and centered on an all stock transaction whereby Pfizer would offer 11-plus shares per Allergan share. Then, people close to the talks told Financial Times that the U.S. drugmaker is preparing to offer more than $380 per share for Allergan. Amid all these reports, Treasury Secretary Jacob Lew said that his department will release "targeted guidance" later this week meant to "deter and reduce further the economic benefits of corporate inversions" like the one being contemplated by the drugmakers. In other M&A news, Starwood Hotels & Resorts (HOT) found a buyer, but not the one that media reports had been foreshadowing. Starwood and Marriott (MAR) announced a deal under which the companies will combine in a cash and stock transaction valued at $12.2B to create the world's largest hotel company. Canadian Pacific (CP) and Norfolk Southern (NSC) both advanced after Canadian submitted a bid to acquire Norfolk, though the latter immediately criticized the offer as "low-premium." Airgas (ARG) surged about 30% after agreeing to be acquired by France's Air Liquide for $143 per share. Fairchild (FCS) jumped 8.5% after agreeing to be acquired for $20 per share by ON Semiconductor (ON)... Qualcomm (QCOM) dropped sharply after disclosing that Korea's Fair Trade Commission alleged the company does not "properly negotiate" aspects of its licenses and may be violating Korean competition law... SunEdison (SUNE) had another tough week, falling about 43% amid ongoing concerns regarding its liquidity and after quarterly filings revealed that several prominent hedge funds exited or trimmed their stakes in the company... ConAgra (CAG) gained 4% on Wednesday after announcing plans to separate into two independent public companies... Nike (NKE) advanced to close out the week after the footwear and sports apparel giant announced a two-for-one stock split, a $12B stock repurchase program and plans to boost its dividend... Chipotle Mexican Grill (CMG) dropped sharply after the Center for Disease Control announced that three additional states have reported people infected within the E. coli outbreak linked to the company's restaurants. INDEXES: The Dow gained about 3.35% to close at 17,823.81, the S&P 500 rose about 3.27% to close at 2,089.17, and the Nasdaq advanced about 3.58% to close at 5,104.92.
|November 19, 2015|
|09:00 EDT||HPQ||Aerohive sell-off unwarranted, says JMP Securities |
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|November 18, 2015|
|16:45 EDT||CAG||On The Fly: Top stock stories for Wednesday|
Stocks on Wall Street were higher from the opening bell onward despite housing starts data that was weaker than expected. Investors waited for the release of the FOMC minutes and saw what they had suspected; that the Fed was reinforcing its message that the December meeting is an option for the central bank to begin raising interest rates. The visibility on rates gave investors confidence, leading to a late-day rally that saw the averages close at their highs. ECONOMIC EVENTS: In the U.S., the minutes from the Fed's last FOMC meeting showed that most participants expect that rate hike conditions will be met by their December meeting. The Fed repeated its constant refrain, though, that the actual decision would depend on the implications for the medium-term outlook from recent economic data. Housing starts fell 11.0% to a 1.06M pace in October, weaker than the expected rate of 1.16M. Building permits, however, rose 4.1% to a 1.15M rate, versus an expected rise of 3.8%. COMPANY NEWS: Shares of Target (TGT) fell 4.3% to $69.78 after the retailer reported in-line quarterly sales and profits and narrowed the range of its fiscal year earnings view. Target, which guided for same-store sales in the new quarter to be up 1%-2%, added that it sees "indications of heavy inventory levels" at some competitors into the holiday season... Shares of Apple (AAPL) climbed 3.17% to $117.29 after Goldman Sachs added the stock to its Conviction Buy List, predicting that investors should begin to focus on the company's monetization and recurring revenue opportunities over the next year, which would be a boon to its valuation... Raymond James analyst Pavel Molchanov downgraded Exxon Mobil to Underperform, the firm's equivalent to a "Sell" rating, saying he expects a modest oil recovery in 2016 but that Exxon's limited leverage to oil prices will act as a hindrance during a recovery. Despite Molchanov predicting Exxon shares to be a source of funds for investors turning more constructive on oil in 2016, the stock rose about 1% to $80.74 today amid a rally in oil prices. MAJOR MOVERS: Among the notable gainers was Fairchild (FCS), which jumped $1.52, or 8.5%, to $19.40 after agreeing to be acquired for $20 per share by ON Semiconductor (ON), whose stock fell 7.9% to $9.89 after the news. Also higher were Canadian Pacific (CP) and Norfolk Southern (NSC), with the two railway operators advancing a respective 5.8% and 6.35% after Canadian submitted a bid to acquire Norfolk, though the latter immediately criticized the offer as "low-premium." Additionally, ConAgra (CAG) gained 4% to $40.93 after announcing plans to separate into two independent public companies. Among the noteworthy losers was Qualcomm (QCOM), which dropped $4.98, or 9.4%, to $48.00 after disclosing that Korea's Fair Trade Commission alleged the company does not "properly negotiate" aspects of its licenses and may be violating Korean competition law. Also lower was Sprint (S), which fell 9.3%, to $3.99 after announcing a 50% discount for new customers switching from competing wireless carriers. GoPro (GPRO) declined 5.1% to $19.81 after research firm Piper Jaffray noted that the company has been offering discounts on its cameras, including featuring them on "flash sale" sites, and cut its price target on the stock to $15 per share. INDEXES: The Dow rose 247.66, or 1.42%, to 17,737.16, the Nasdaq gained 89.19, or 1.79%, to 5,075.20, and the S&P 500 advanced 33.14, or 1.62%, to 2,083.58.
|09:10 EDT||CAG||ConAgra CEO sees ConAgra Brands retaining investment grade rating|
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|06:47 EDT||CAG||ConAgra volatility elevated into plans to separate into two public companies |
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|06:40 EDT||CAG||ConAgra to host conference call|
Conference call to discuss plans to separate into two independent public companies will be held on November 18 at 8:30 am. Webcast Link
|06:32 EDT||CAG||ConAgra announces plans to separate into two independent public companies|
ConAgra announced plans to pursue the separation of the company into two independent public companies: one comprising its robust consumer portfolio of brands and the other comprising its foodservice portfolio of frozen potato products. The consumer brands business will be renamed Conagra Brands and the frozen potato business will operate under the Lamb Weston name. Immediately following the transaction, which is expected to be completed in the fall of 2016, ConAgra Foods shareholders will own shares of both independent companies. The transaction is expected to be structured as a spin-off of the Lamb Weston business, tax-free to the Company and its shareholders. The two businesses operate in distinct markets and possess unique and compelling growth prospects and investment requirements. In addition, ConAgra Foods believes that the separation will result in other material benefits to the standalone companies, including: Greater management focus on the distinct businesses of consumer brands and foodservice frozen potato products; Increased flexibility, agility and resources to capitalize on their respective long-term opportunities and growth strategies; Tailored capital structures and financial policies and targets appropriate for each company's unique business profile; and The ability for investors to value the two companies based on their particular operational and financial characteristics and invest accordingly. Conagra Brands will be comprised primarily of the operations currently reported as the Company's Consumer Foods segment, which generated approximately $7.2Bin fiscal 2015 revenues, as reported. Following the separation, Lamb Weston's portfolio will consist of frozen potato, sweet potato, appetizer and other vegetable products, as well as a continued presence in retail frozen products under licensed brands and private brands. For fiscal 2015, Lamb Weston generated revenues of approximately $2.9B, as reported, and accounted for the significant majority of the Commercial Foods segment's fiscal 2015 operating profit of approximately $570M. The separation is expected to be tax-free to ConAgra Foods shareholders for federal income tax purposes. The transaction is currently targeted to be completed in the fall of 2016, subject to final approval by the Company's Board of Directors, other customary approvals and receipt of an opinion from tax counsel on the tax-free nature of the spin-off to the Company and its shareholders. Throughout the separation process, ConAgra Foods management will remain highly focused on driving strong business performance, and delivering on its previously announced $300M efficiency plan. ConAgra Foods today also reiterated its plans to utilize the net proceeds from the pending sale of its Private Brands business primarily for debt reduction.
|06:31 EDT||CAG||ConAgra announces plans to separate into two independent public companies|
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|November 17, 2015|
|07:47 EDT||ACAD||Leerink sees M&A accelerating for central nervous system assets|
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|November 16, 2015|
|15:53 EDT||CAG||JANA Partners reduces stakes in Rackspace, Qualcomm |
JANA Partners gave a quarterly update on its stakes in a filing this afternoon. NEW STAKES: Mattel (MAT), Zoetis (ZTS), and Aramark (ARMK). INCREASED STAKES: ConAgra Foods (CAG). DECREASED STAKES: Rackspace (RAX), Qualcomm (QCOM), Time Warner (TWX), Starz (STRZA), and Lions Gate (LGF). LIQUIDATED STAKES: Johnson Controls (JCI), Precision Castparts (PCP), AerCap Holdings (AER), United Rentals (URI), and HD Supply Holdings (HDS).