Early movers: FB, TSLA, ABC, LB, CHD, REGN, AIG, M & more
BUZ INVESTORS Early movers 4/5 which companies are making headlines before the bell
Facebook Reports First Quarter 2017 Results
First Quarter 2017 Operational and Other Financial Highlights
- Daily active users (DAUs) – DAUs were 1.28 billion on average for March 2017, an increase of 18% year-over-year.
- Monthly active users (MAUs) – MAUs were 1.94 billion as of March 31, 2017, an increase of 17% year-over-year.
- Mobile advertising revenue – Mobile advertising revenue represented approximately 85% of advertising revenue for the first quarter of 2017, up from approximately 82% of advertising revenue in the first quarter of 2016.
- Capital expenditures – Capital expenditures for the first quarter of 2017 were $1.27 billion.
- Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $32.31 billion at the end of the first quarter of 2017.
- Headcount – Headcount was 18,770 as of March 31, 2017, an increase of 38% year-over-year.
Early movers 4/5
Tesla First Quarter 2017 Update
Record vehicle production, deliveries and revenue in Q1
• Model 3 on track for initial production in July
• Completed transition to internally developed Autopilot software
• Q1 Automotive gross margin improved to 27.4% (GAAP) and 27.8% (non-GAAP)
• $4.0 billion of cash on hand heading into Q2
• Q1 GAAP and Non-GAAP loss from operations improved from Q4
AmerisourceBergen beats by $0.09, misses on revenue
Second Quarter GAAP Quarterly Results
- Revenue: In the second quarter of fiscal 2017, revenue was $37.1 billion, up 4.1 percent compared to the same quarter in the previous fiscal year, reflecting a 4.0 percent increase in Pharmaceutical Distribution Services revenue and a 6.0 percent increase in revenue within Other.
- Gross Profit: Gross profit in the fiscal 2017 second quarter was $1.3 billion, a 16.8 percent increase over the same period in the previous fiscal year, primarily driven by a LIFO credit of $86.5 million in the current year quarter versus a LIFO expense charge of $92.4 million in the prior year period. The change in LIFO is driven by lower expected brand inflation and greater generic deflation for fiscal year 2017 in comparison to those expectations at March 31, 2016 for the prior fiscal year. Gross profit as a percentage of revenue was 3.38 percent, an increase of 37 basis points from the prior year quarter.
- Operating Expenses: In the second quarter of fiscal 2017, operating expenses were $631 million, compared to $125 million in the same period last fiscal year. Prior year’s operating expenses included $504 million of Warrants income. Distribution, selling, and administrative expenses of $522 million were relatively flat compared to the prior year period.
- Operating Income: In the fiscal 2017 second quarter, operating income was $625 million versus $950 million in the prior year period. The decline in operating income was driven by the $504 million of Warrants income in the prior year quarter.
- Interest Expense, Net: In the fiscal 2017 second quarter, net interest expense of $37 million was up 3.7 percent versus the prior year quarter.
- Tax Rate: The effective tax rate for the second quarter of fiscal 2017 was 30.6 percent versus 34.1 percent in the prior year second quarter. Our tax rate was approximately 2.0 percent lower than expected due primarily to a greater than anticipated benefit from share-based compensation resulting from a high number of stock option exercises in the current quarter, which was partially offset by certain unfavorable discrete tax items.
- Diluted Earnings Per Share: Diluted earnings per share was down 30.6 percent to $1.86 in the second quarter of fiscal year 2017 compared to $2.68 in the previous fiscal year’s second quarter, driven primarily by the decrease in net income.
- Diluted Shares Outstanding: Diluted weighted average shares outstanding for the second quarter of fiscal year 2017 were 221.2 million, a 1.9 percent decline versus the prior fiscal year second quarter due to share repurchases, net of stock option exercises.
Comparable sales fall at L Brands
Total sales were down 2% to $719.6M.
L Brands expects to report Q1 EPS of $0.30.
LB +1.15% premarket to $53.72.
Church & Dwight Reports Q1 Reported EPS of $0.51; Adjusted EPS of $0.52 Exceeds Q1 Outlook
2017 First Quarter Results 2017 Full Year Outlook
- Reported sales growth +3.3%; Organic +2.3%
- Reported and Organic sales growth of approximately +3%
- Reported Gross Margin +90 bps; Adjusted +110 bps
- Reported Gross Margin +60 bps; Adjusted +40 bps
- Reported Operating Margin +130 bps; Adjusted +170 bps
- Reported EPS $1.75-$1.77 flat; Adjusted +8.5%
- Reported EPS growth of 18.6%; Adjusted 20.9%
- Cash from operations $650MM
Regeneron Pharmaceuticals, Inc. (REGN)
– First quarter 2017 EYLEA global net sales(1) increased 12% to $1.34 billion versus first quarter 2016
– FDA approved Dupixent® (dupilumab) Injection for adults with moderate-to-severe atopic dermatitis
– Positive Phase 2 results in dupilumab eosinophilic esophagitis study
– Biologics License Application for Kevzara® (sarilumab) accepted with a target action date of May 22, 2017
AIG Reports First Quarter 2017 Results
FIRST QUARTER FINANCIAL SUMMARY*
Three Months Ended
($ in millions, except per share amounts) 2017 2016 Net income (loss)$1,185 $(183)Net income (loss) per diluted share (a)$1.18$(0.16)After-tax operating income$1,367$765After-tax operating income per diluted share (a)$1.36$0.64Return on equity6.3
Adjusted return on equity9.6
4.5%Normalized return on equity (b)8.1
8.3%Core:Adjusted return on attributed equity – Core10.2
6.8%Normalized return on attributed equity – Core (b)8.7
9.0%Book value per common share, excluding accumulated other comprehensive income $74.58 $73.40
Macy’s and Tailored Brands to end partnership
The pairing didn’t generate the level of revenue anticipated by the retailers.
The Tuxedo Shops at Macy’s will continue to take new reservations until June 1.
Tailored Brands plans to take charges of about $17M to account for the costs of winding down the JV.
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