BUZ INVESTORS Market Open U.S. missile attack on Syria puts markets on edge. The order of the missile attack on Syria

Early movers Insight : TRV, VZ, DHI, DGX, BX, KEY, AXP, GM, SBUX, & more

Early movers Insight : TRV, VZ, DHI, DGX, BX, KEY, AXP, GM, SBUX, & more

BUZ INVESTORSS Early movers Insight Which companies are making headlines before the bell

BUZ INVESTORSS  Early movers Insight Which companies are making headlines before the bell

High cat losses ding Travelers quarter

Q1 core income of $614M or $2.16 per share vs. $698M and $2.33 a year ago. What used to be called “operating income” is now called “core income.” This year’s result was impacted by $318M in pretax catastrophe losses.

The combined ratio of 96% deteriorated from 92.3% a year ago; underlying combined ratio of 91.7% vs. 90% a year ago.

 Early movers Insight

Net investment income up 9% Y/Y.

Net written premiums up 5%; in personal insurance up 12% – which include the impact of auto rate increases.

Adjusted book value per share of $81.56 up 1% during quarter. 2.4M shares bought back during quarter for $286M.

Dividend is boosted to $0.72 per quarter, and anther $5B of repurchases is authorized.

Verizon misses by $0.01, misses on revenue

Verizon (NYSE:VZ): Q1 EPS of $0.95 misses by $0.01.

Revenue of $29.8B (-7.4% Y/Y) misses by $690M.

Shares +1.6% PM.

  • Consolidated: 84 cents in earnings per share (EPS) and adjusted EPS (non-GAAP) of 95 cents, excluding non-operational items, compared with EPS of $1.06 in 1Q 2016.
  • Wireless: Retail postpaid churn of 1.15 percent, with strong customer loyalty demonstrated by retail postpaid phone churn of less than 0.90 percent for the eighth consecutive quarter; intra-quarter improvement in net additions following the launch of Verizon Unlimited.
  • Wireline: Fios total revenue growth of 4.7 percent.


D.R. Horton up 0.9% after earnings beat, raised guidance

FQ2 net income of $229.2M or $0.60 per share vs. $195.1M and $0.52 one year ago.

Homes closed up 15% to 10,685 homes; up 18% in value to $3.2B.

Net sales orders up 14% to 13,991 homes; up 17% in value to $4.2B.

Backlog up 7% to 14,618 homes; up 9% in value to $4.4B.

Full-year fiscal 17 guidance is boosted: Revenues seen at $13.6B-$14B from $13.4B-$13.8B; homes closed to 44.5K-46K from 43.5K-45.5K. Guidance for pretax profit margin remains at 11.2-11.5%; home sales gross margin stays at around 20%, and cash flow from operations still at $300M-$500M.

Quest Diagnostics beats by $0.15, beats on revenue

Quest Diagnostics (NYSE:DGX): Q1 EPS of $1.33 beats by $0.15.

Revenue of $1.9B (+2.2% Y/Y) beats by $30M.

– First quarter diluted EPS of $1.16 on a reported basis, up 63.4% from 2016; and $1.33 on an adjusted basis excluding amortization, up 17.7% from 2016. Excess tax benefit associated with stock-based compensation increased diluted earnings per share by $0.11 in the quarter.

– Raises outlook for full year 2017 diluted EPS. Reported diluted EPS now expected to be between $4.73 and $4.88; and adjusted diluted EPS excluding amortization expense now expected to be between $5.45 and $5.60

Blackstone beats by $0.14, beats on revenue

Blackstone (NYSE:BX) today reported its first quarter 2017 results.
Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Blackstone reported outstanding results in the first quarter, marked by
strong returns across our major fund strategies as well as our best quarter for realizations on record. The result was a more than doubling of
revenue and earnings versus the prior-year period, and our second best quarterly distribution ever, at $0.87 per common unit. In total, we will have
distributed nearly $14 per common unit of value since the IPO, including $2.50 per year on average over the past three years(a), making Blackstone
consistently one of the highest yielding large-capitalization companies in the world.”
Blackstone issued a full detailed presentation of its first quarter 2017 results, which can be viewed at www.blackstone.com.
Blackstone has declared a quarterly distribution of $0.87 per common unit to record holders of common units at the close of business on May 1,
2017. This distribution will be paid on May 8, 2017.

KeyCorp beats by $0.04, beats on revenue

Noninterest expense, excluding merger-related charges, down 8% from 4Q16, resulting in a cash efficiency ratio of 60.4% in 1Q17

Significant progress on merger synergies; expect to achieve $450 million in acquisition cost savings by early 2018

Return on average tangible common equity, excluding merger-related charges, of 12.9% for 1Q17

AmEx +2.3% after earnings; analysts weigh in

A middle-of-the-roader on the stock, Morgan Stanley’s Betsy Graseck acknowledges improving revenue growth, but says American Express (NYSE:AXP) will likely need to continue paying for that growth with another boost in promotional offerings next year. She lifts her price target to $85 from $83.

Nomura’s Bill Carcache reiterates his Reduce rating and $63 price target. The stock should do well today, but he figures at least some of the beat was driven by non-recurring items like record Q4 investment spending, and unsustainable cuts in marketing and promotion.

Another bear on the name, RBC’s Jason Arnold says not to forget the boost to Q1 provided by a lower tax rate. Heated competition means marketing/rewards expense pressure isn’t going anywhere. He lifts his PT to $63 from $60.

A bull on AmEx, Bernstein’s Kevin St. Pierre says robust adjusted revenue growth bolsters his case, with 12%-plus EPS growth doable beyond this year. He lifts his PT to a Street-high $95.

Shares +2.3% premarket to $77.29.

GM ceases Venezuelan operations

General Motors (NYSE:GM) is ceasing its Venezuelan operations after its assets in the country were seized by public authorities.

“In addition, other assets of the company, such as vehicles, have been illegally taken from its facilities,” General Motors Venezolana said in a statement.

The action will cause “irreparable damage” to the unit, its 2,678 workers, 79 dealers and suppliers.

Stifel Nicolaus positive on Starbucks

Stifel Nicolaus upgrades Starbucks (NASDAQ:SBUX) to a Buy rating from Hold on a positive view for the chain’s comparable sales track.

The firm sees U.S. comparable sales growth of at least 5% to 6% for the next four quarters beginning in FQ3 after coffee giant turns in around a 3% gain for the current quarter. Global comparable sales are seen rising at a mid-single-digit pace this fiscal year.

Looking further down the road, Stifel thinks Starbucks can expand its ready-to-drink and packaged coffee/tea businesses.Like up on FACEBOOK

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BUZ INVESTORS Market Open U.S. missile attack on Syria puts markets on edge. The order of the missile attack on Syria

After-hours buzz: $QCOM, $CSX, $AXP & more

After-hours buzz: QCOM, CSX, AXP & more

BUZ INVESTORS After-hours buzz which companies are making headlines after the bell

BUZ INVESTORS  After-hours buzz which companies are making headlines after the bell

Qualcomm +2.9% after Q2 beats on top, bottom lines

Qualcomm (QCOM -0.1%) has turned up after hours, +2.9%, after it beat analyst expectations with Q2 revenues and profits.

Revenues rose 8% Y/Y to $6B, flat with the previous quarter, and net income rose 28% from last year (and 12% Q/Q).

Revenues by segment: QCT, $3.68B (up 10%); QTL, $2.25B (up 5%). Earnings before taxes, by segment: QCT: $475M (up 179%); QTL, $1.96B (up 5%).

After-hours buzz

Growth was solid “especially in the important automotive, networking and IoT growth areas,” says CEO Steve Mollenkopf.

Cash, equivalents and marketable securities were at $28.9B at quarter’s end, vs. a year-ago $30B.

Effective annual income tax rate estimated at 17% for the full year, and 13% for Q2 (15% non-GAAP).

For Q3, it’s guiding to revenues of $5.3B-$6.1B (ranging from a 12% decline to a 1% gain Y/Y) and non-GAAP EPS of $0.90-$1.15 (22% decline to 1% gain). Analyst consensus is for revenues of $5.91B and EPS of $1.10. Guidance is wide due to uncertainty over possible underpayments from Apple contract manufacturers.

CSX +2.5% as coal shipments help boost earnings

CSX +2.5% AH after comfortably beating Q1 earnings expectations on a 9.5% Y/Y increase in revenues to $2.87B, fueled in part by a 3% rise in coal shipments.

CSX says its intermodal business grew 1% during Q1, while the only segment to retreat during the period was its forest products unit, which contracted 1%.

Same store sales pricing improved 3.9%, reflecting gains across all major markets and led by temporal strength in export coal; overall core pricing gained 7% amid increased fuel recovery and a favorable product mix.

CSX says it is making adjustments throughout the company to improve asset utilization, achieve greater operations efficiency and reduce its cost structure under new CEO Hunter Harrison.

AmEx rises 2.2% after earnings beat

Excluding the Costco-related business, adjusted revenue was higher by 7% Y/Y in Q1. Provisions of $573M up 32%. Expenses of $5.5B up 1% thanks to higher rewards costs. ROE of 25.1% up from 23.6%. The tax rate dipped to 32% from 35%.

Adjusted for Costco, cardmember spending rose 8% Y/Y, with loans up 11%.

Management is confident they will deliver on the $5.60-$5.80 full-year EPS outlook.

Previously: American Express beats by $0.06, beats on revenue (April 19)

AXP +2.2% after hoursLike up on FACEBOOK

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