BUZ INVESTORS Early movers which companies are making headlines before the bell:
Hasbro (HAS) reports revenue rose 2.2% in Q1 due to growth in Franchise Brands, Hasbro Gaming and Emerging Brands.
U.S. and Canada revenue up 2% to 451.6M.
International revenue flat at $345.3M, led by 16% growth in Latin America.
Entertainment and Licensing revenue expanded 24% to $52.7M.
Franchise brand revenue grew 2% to $423.6M and Partner brand revenue down 18% to $213M.
Hasbro gaming revenue increased 43% to $142.9M and Emerging brands rose 25% to $70.2M for the quarter.
Operating margin rate fell 110 bps to 9.2%.
HAS +2.57% premarket.
Halliburton (NYSE:HAL): Q1 EPS of $0.04 beats by $0.01.
Revenue of $4.28B (+1.9% Y/Y) beats by $20M.
Halliburton Company (HAL) announced today a loss from continuing operations of $32 million, or $0.04 per diluted share, for the first quarter of 2017. This compares to a loss from continuing operations for the fourth quarter of 2016 of $149 million, or $0.17 per diluted share. Adjusted income from continuing operations for the first quarter of 2017, excluding costs related to an early extinguishment of debt, was $34 million, or $0.04 per diluted share. This compares to adjusted income from continuing operations for the fourth quarter of 2016, excluding impairments and other charges and a class action lawsuit settlement, of $35 million, or $0.04 per diluted share.
North American consumer products organic sales dropped 3%, reflecting category softness, competitive activity and less promotion shipments.
Developing and emerging markets saw organic growth of 4% for the period.
Foreign currency exchange rates increased sales by 1%.
Segment revenue: Personal care: $2.25B (+2%); Consumer Tissue: $1.46B (-3%); K-C Professional: $768M (+1%).
Adjusted gross margin rate improved 30 bps to 36.9%.
Segment operating profit: Personal care: $481M (+7%); Consumer Tissue: $275M (-2%); K-C Professional: $146M (-3%).
Adjusted operating margin rate +30 bps to 18.6%.
FY2017 Guidance: Net sales: +1% to +2%; Organic sales: +1% to +2%; Tax rate: 30.7%; Adjusted EPS: $6.2 to $6.35.
KMB -0.43% premarket.
PPG Industries (NYSE:PPG) has submitted a revised proposal for a combination with Akzo Nobel (OTCQX:AKZOY).
“We are extending this one last invitation… to engage with us on creating extraordinary value and benefits for all of Akzo Nobel’s stakeholders,” PPG CEO Michael McGarry said in a statement.
The cash-and-stock transaction is now valued at €26.9B.
Under the terms, each share of FelCor Lodging (FCH +6.8%) will be converted into 0.362 shares of RLJ Lodging (RLJ -6.6%), and following the deal, RLJ shareholders will own about 71% of the combined company.
The merged company will have an enterprise value of $7B, with 160 hotels in 26 states. The deal is seen as accretive in year one, with expected cash G&A savings of about $12M, and roughly $10M of potential savings from stock-based compensation and capitalized cash G&A.
The combined company is expected to pay a $0.33 quarterly dividend (same as RLJ now pays).
Closing is expected before year-end.
TrueCar (NASDAQ:TRUE) announces a public offering of shares of 8.5M shares.
TrueCar expects to offer 1M shares of common stock in the offering and certain existing stockholders of the company are expected to offer 7.5M shares. The automotive pricing service firm will not receive any proceeds from the sale of the shares by the selling stockholders.
TRUE -1.31% premarket to $15.06.
While merger talk dominates speculation about the ultimate landing spot for Sprint (NYSE:S) — via a combo with fellow wireless underdog T-Mobile (NASDAQ:TMUS) — the company and its parent may be looking at other options.
AT&T’s (NYSE:T) $1.6B deal to acquire Straight Path Communications has Sprint parent SoftBank (OTCPK:SFTBY) rethinking the value of Sprint’s sizable spectrum holdings, Bloomberg reports, and even considering spinning the airwaves into a separate publicly traded company.
A deal’s still the most likely outcome, considering SoftBank shareholders are reluctant to provide Sprint with needed cash bailouts (though Sprint has improved liquidity to more than $11B), but now SoftBank likely believes it has a stronger hand via the spectrum. And Sprint thinks it could get overtures form cable firms, including Comcast (NASDAQ:CMCSA), Charter (NASDAQ:CHTR) and Altice (OTCPK:ATCEY).
“If the debt market starts to struggle as you are trying to refinance, the best case is your costs would skyrocket, the worst case is you can’t get funding,” says analyst Craig Moffett. “Either way there’s tremendous pressure on Masa (SoftBank chief Masayoshi Son) to get a deal done sooner rather than later.”
A gag order on merger talks in the wireless industry, forced by the lengthy government spectrum auction, will be lifted this coming Thursday.
According to a new press release, Netflix (NASDAQ:NFLX) intends to offer €1B aggregate principal amount of senior notes through an offering outside the U.S.
The company expects to use its net proceeds for general corporate purposes.
These may include content acquisitions, capital expenditures, investments, working capital and potential strategic transactions.
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