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Mario Randholm Blog. Mario is the founder of Randholm & Co. S.A.C., an investment management company dedicated to producing superior returns for its clients and employees by adhering to mathematical and statistical methods.
News
Futures indicate a lower opening for the market.
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Nissan to raise vehicle prices in India by about 4%, Economic Times reports – In India, Nissan will raise prices of its vehicles, including the Micra hatchback and Terrano SUV, by up to 4% next month to offset the impact of rupee depreciation and escalating input costs, reports the Economic Times. Reference
Alitalia able to net $412M in cash call, Reuters reports – The struggling Italian airline Alitalia has succeeded in netting the $412M it needs to keep flying over Christmas after a long drawn-out capital raising, sources say, reports Reuters. Top shareholder Air France-KLM, which has a 25% stake, was one of several investors to snub the rights offer and let their stakes be diluted. Reference
Siemens discussing metals technology unit sale, Bloomberg says – Siemens is contemplating selling its VAI metals technologies unit as CEO Joe Kaeser looks into revamping the company’s portfolio, according to Bloomberg, citing three people with knowledge of the matter. Reference
EBay’s Donahoe: Drone delivery a “fantasy,” Bloomberg reports – EBay (EBAY) CEO John Donahoe says the possibility of product deliveries with drones, as Amazon.com (AMZN) has prosposed, is a “long term fantasy,” reports Bloomberg. Reference
Midasplayer delays IPO until next year, NY Post reports – Midasplayer, the company behind popular mobile game Candy Crush Saga, has delayed its IPO on the Nasdaq until next year due to fears the game has been “too successful,” the New York Post reports. The company wants to develop other games to add to its portfolio before going public. Reference
Poland’s LOT, Boeing agree on compensation over Dreamliners, Reuters reports – The Polish flagship carrier LOT has agreed with Boeing on compensation for the faults that grounded its 787 Dreamliner jets, reports Reuters. There was no information on whether Boeing agreed to pay the compensation in cash or by lowering lease rates for the Dreamliners that LOT operates. Reference
Salesforce.com president leaving company, AllThingsD says – Salesforce.com President Hilarie Koplow-McAdams will become the chief revenue officer of New Relic, a fast-growing software monitoring company, New Relic announced, according to AllThingsD. The website said it had reported on September 30 that Koplow-McAdams was preparing to leave Salesforce. as part of leadership changes at the company. Reference
Nomura to hire bankers in U.S. as it looks to regain M&A rank, Bloomberg reports – Nomura Holdings (NMR), Japan?s biggest brokerage, expects to hire about 20 bankers in the U.S., as part of its effort to regain lost share of the world?s largest M&A advisory market, reports Bloomberg. The company will seek people to work on leveraged lending and building relationships with private-equity firms such as KKR (KKR), global investment banking head Kentaro Okuda said in an interview.Reference
St. Louis Fed’s Bullard now supports ‘small taper,’ Reuters reports – St. Louis Fed President James Bullard, sometimes seen as a bellwether for U.S. monetary policy, unexpectedly offered his voice to a growing contingent at the central bank that has argued for reducing the Fed’s bond buying at a meeting next week, reports Reuters.Reference
Brokerage Recommendations:
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Initiations:
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Earnings Summary:
| AZO | AutoZone reports Q1 EPS $6.29, consensus $6.28 – Reports Q1 revenue $2.1B, consensus $2.1B. |
| BRCM | Broadcom sees Q4 revenue $2B-$2.05B, consensus $1.98B – The Q4 revenue guidance is driven by better-than-expected revenue in each reportable segment, particularly in Infrastructure and Networking. Sees Q4 product gross margin improved for Q4 to down approximately 50-75 bps. Sees Q4 reduced guided sequential growth range for R&D to up approximately $30M-$50M. |
| BURL | Burlington Stores reports Q3 adjusted EPS (5c), consensus (6c) – Reports Q3 revenue $1.07B, consensus $1.05B. The increase in adjusted Q3 EPS was driven by reduction of income tax benefit of $6.5M and increased interest expense of $5.3M. |
| HDS | HD Supply sees FY13 adjusted EPS 52c-58c, consensus 52c – Sees FY13 revenue $8.5B-$8.58B, consensus $8.61B. Sees FY13 adjusted EBITDA $750M-$760M. |
| HITK | Hi-Tech Pharmacal reports Q2 adjusted EPS 71c, consensus 48c – Reports Q2 revenue $58.6M, consensus $57.97M. |
| JWA | John Wiley & Sons sees FY14 EPS $2.85-$2.95, consensus $2.92 – Sees FY14 adjusted revenue growth in low-single-digit range, consensus $1.76B. |
| KMG | KMG Chemicals sees FY14 revenue to exceed $350M, consensus $325.3M – The company said its revenue forecast was made while considering the acquisition of the UPC business. Projected FY14 restructuring charges remain targeted at $4M-$5M, partially offset by an estimated $2M-$3M of restructuring-related synergies and commercial benefits. In addition, incremental FY14 Cap-Ex of $2M are expected to be incurred to accomplish these plans. The company sees FY14 depreciation and amortization expense of approximately $15M, up approximately $7M from FY13. |
| LDOS | Leidos lowers FY14 EPS view to 85c-$1.10, from $1.80-$2.04 – Lowers FY14 revenue view to $5.65B-$5.80B from $5.85B-$6.10B. Consensus for FY14 is for EPS $1.54 and for revenue $5.83B. EPS includes a 16c positive net income impact for discontinued operations accounting treatment for planned divestitures. Lowers FY14 Cash flows from continuing operations of at least $150M, from of at least $325M. |
| OUTR | Outerwall sees FY13 core EPS $5.44-$5.59, consensus $4.98 – Sees FY13 revenue $2.30B-$2.32B, consensus $2.31B; Sees FY13 core EBITDA $475M-$485M; Sees FY13 free cash flow $160M-$178M. |
| PTRY | The Pantry reports Q4 EPS 6c ex-items, consensus 10c – Reports Q4 revenue $2.02B, consensus $1.98B. Comparable store merchandise revenue increased 2%. |
| TEVA | Teva sees FY14 EPS $4.80-$5.10 with exclusive Copaxone, $4.20-$4.50 with generic – Consensus $4.94. Sees FY14 net revenues $19.3B-$20.3B with generic Copaxone, $19.8B-$20.8B with exclusive Copaxone. Teva Pharmaceutical, in an effort to enhance investor understanding of the business performance of the company, and to provide more clarity and transparency regarding its projections for 2014, given the significant uncertainty concerning possible generic competition to Copaxone in the U.S., provides two alternative scenarios for its current non-GAAP financial outlook for the year: the “Generic Copaxone” scenario assumes the launch of at least two AP-rated generic competitors to Copaxone in the U.S. on June 1, 2014; and the “Exclusive Copaxone” scenario assumes no generic competition to Copaxone in the U.S. during 2014. Both scenarios assume the launch of Copaxone 40mg three-times-a-week in early 2014 and exclusive sales of the generic version of Pulmicort in the U.S. throughout 2014. The outlook provided is organic, and neither alternative includes the potential impact of any business development activities. |
| TOL | Toll Brothers reports Q4 EPS 54c, consensus 43c – Reports Q4 revenue $1.04B, consensus $1B. Reports Q4 backlog of $2.63B. |