Airline stocks are flying high today asdecent updates from the likes of United Continental (UAL) and American Airlines (AAL) lift competitors like Delta Air Lines (DAL) and Southwest Airlines (LUV) as well.
LM Otero/Associated Press
Evercore ISI’s Duane Pfennigwerth and Raymond Wong explain why investors like the update from American Airlines…
American published its March traffic and 1Q16 investor update this morning. March quarter passenger unit revenue is expected to decline 7-8% y/y vs. initial guidance of down 6-8%, slightly better than our recently revised down 7.8% estimate at the midpoint. We now model total revenue decline (including cargo, other) of 4% y/y in 1Q16 vs. down 4.5% previously. Pre-tax margin guidance was unchanged at 12-14% vs. our 12% estimate. Higher 2016 mainline non-fuel unit cost growth guidance (3-5% y/y vs. 1-3% prior) is impacted by the inclusion of profit sharing, accelerated flight attendant raises (to 1H from 2H) and slightly lower capacity growth guidance. Better fuel efficiency and lower net interest expense offset these impacts in the March quarter.Netting it all out our 1Q16 EPS estimate improves to $1.20 from $1.12 previously; full-year EPS declines to $5.35 from $5.49. American plans to report its 1Q16 results on Friday, April 22nd.
Top Industrial Conglomerate Comp anies To Own For 2016: Petroleo Brasileiro S.A.- Petrobras(PBR)
Petroleo Brasileiro S.A. primarily engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. The company?s Exploration and Production segment involves in the exploration, production, development, and production of oil, liquefied natural gas (LNG), and natural gas in Brazil. This segment supplies its products to the refineries in Brazil, as well as sells surplus petroleum and byproducts in domestic and foreign markets. Its Supply segment engages in the refining, logistics, transportation, and trade of oil and oil products; export of ethanol; and extraction and processing of schist, as well as holds interests in companies of the petrochemical sector in Brazil. The Gas and Energy segment involves in the transportation and trade of natural gas produced in or imported into Brazil; transportation and trade of LNG; and generation and trade of electric power. In addition, the segment has interests in natural gas transportation and d istribution companies; and thermoelectric power stations in Brazil, as well engages in fertilizer business. The Distribution segment distributes oil products, ethanol, and compressed natural gas in Brazil. The International segment involves in the exploration and production of oil and gas, as well as in supplying, gas and energy, and distribution operations in the Americas, Africa, Europe, and Asia. Further, the company involves in biofuel production business. Petroleo Brasileiro was founded in 1953 and is based in Rio de Janeiro, Brazil.
- [By Ben Levisohn]
Should oil prices recover, we believe that deepwater drilling activity growth should lag growth in US shale activity, as project economics is generally better in US shales, and E&Ps involved in US shales are generally quicker to react. Deepwater activity is largely comprises a handful of companies (Petrobras (PBR), Statoil (STO), Total (TOT), Shell (RDS.A), BP (BP), ONGC, ExxonMobil (XOM) and Chevron (CVX)) and it is unlikely that these companies can meaningfully increase their rig demand in a short period of time to absorb the current oversupply. Thus, should oil prices rise in 2018, rig demand may increase, but likely not enough to tighten the market, given that supply equaling 43% of current working rig count is stacked and new supply equaling 25% of working rig count is under-construction and should be entering the market in the coming years. As a result, while we expect some improvement in rig utilization owing to rig retirements, it will unlikely be strong enough to meaningfully improve rates in 2018 above spot levels. Any demand increase in the interim could slow rig retirements materially, and be self-defeating. We thus are Sell rated on Transocean, Atwood and Noble.
Top Industrial Conglomerate Companies To Own For 2016: Infinity Pharmaceuticals, Inc.(INFI)
Infinity Pharmaceuticals, Inc., a drug discovery and development company, discovers, develops, and delivers medicines to patients with difficult-to-treat diseases. Its lead product candidate includes IPI-145, an oral inhibitor of the delta and gamma isoforms of phosphoinositide-3-kinase (PI3K) for the treatment of hematologic malignancies. The company is developing DYNAMO, which is in Phase II study to evaluate the safety and efficacy of IPI-145 dosed at 25 mg; CONTEMPO that is in the Phase Ib/II study of IPI-145 in combination with obinutuzumab or rituximab in patients with untreated follicular lymphoma; BRAVURA, which is in Phase III study to evaluate the safety and efficacy of IPI-145 plus rituximab and bendamustine; and FRESCO that is in Phase II study to evaluate the safety and efficacy of IPI-145 plus rituximab. It is also developing DYNAMO+R, which is in Phase III randomized study to evaluate IPI-145 dosed at 25 mg in c ombination with rituximab, a monoclonal antibody treatment; DUO that is in randomized Phase III monotherapy study evaluating IPI-145 dosed at 25 mg in patients with relapsed or refractory chronic lymphocytic leukemia (CLL); and SYNCHRONY, which is in the Phase Ib study of IPI-145 in combination with obinutuzumab in CLL patients. In addition, the company is conducting a Phase Ib/II trial of IPI-145 in combination with venetoclax, a B-cell lymphoma 2 inhibitor; and developing IPI-549 that is in Phase I study for patients with various solid tumors, including melanoma and non-small cell lung cancer. The company has collaboration and license agreement with AbbVie Inc. to develop and commercialize IPI-145 in oncology; and development and license agreement with Intellikine, Inc. to discover, develop, and commercialize pharmaceutical products targeting the delta and/or gamma isoforms of PI3K. Infinity Pharmaceuticals, Inc. is headquartered in Cambridge, Massachusetts.
- [By Lisa Levin]
Infinity Pharmaceuticals Inc. (NASDAQ: INFI) shares dropped 70 percent to $1.32. Infinity announced plans to cut 21 percent of the workforce. The company also reported that DYNAMO Phase 2 monotherapy study evaluating the efficacy and safety of duvelisib met its primary endpoint.
5 Best Supermarket Stocks For 2016: Carnival Corporation(CCL)
Carnival Corporation operates as a leisure travel and cruise company in North America, Europe, Australia, and Asia. It offers cruises under the Carnival Cruise Line, Princess Cruises, Holland America Line, and Seabourn brands in North America; and Costa, AIDA, P&O Cruises (UK), Cunard, and P&O Cruises (Australia) brands in Europe, Australia, and Asia. The company operates 99 cruise ships. It also owns Holland America Princess Alaska Tours, a tour company in Alaska and the Canadian Yukon, which owns and operates 11 hotels or lodges, approximately 300 motor coaches, and 20 glass-domed railcars. In addition, the company is involved in the leasing of cruise ships. It sells its cruises primarily through travel agents and tour operators. Carnival Corporation was incorporated in 1972 and is headquartered in Miami, Florida. Carnival Corporation operates as a subsidiary of Carnival Corporation & Plc.
- [By Monica Gerson]
Analysts are expecting Carnival Corp (NYSE: CCL) to have earned $0.32 per share on revenue of $3.63 billion in the latest quarter. Carnival shares gained 0.68 percent to $50.00 in after-hours trading.
- [By Ben Levisohn]
With cruise lines getting killed following the Brexit vote, Susquehanna’s Rachael Rothman and Elena Shen don’t see Carnival (CCL) taking any chances with its guidance when it reports earnings tomorrow. They explain why:
- [By Monica Gerson]
Carnival Corp (NYSE: CCL) is expected to report its quarterly earnings at $0.32 per share on revenue of $3.63 billion.
Paychex, Inc. (NASDAQ: PAYX) is projected to report its quarterly earnings at $0.50 per share on revenue of $751.20 million.
Top Industrial Conglomerate Companies To Own For 2016: Gulfport Energy Corporation(GPOR)
Gulfport Energy Corporation engages in the exploration, development, and production of oil and natural gas properties. Its principal properties are located in the Louisiana Gulf Coast, in west Texas in the Permian Basin and in western Colorado in the Niobrara Formation. The company also holds acreage position in the Alberta oil sands in Canada; and interests in entities that operate in southeast Asia, including the Phu Horm gas field in Thailand, as well as leasehold interests in the Utica Shale in eastern Ohio. As of December 31, 2011, it had 19.4 million barrels of oil equivalent of proved reserves. The company is headquartered in Oklahoma City, Oklahoma.
- [By Ben Levisohn]
Wells Fargo’s David Tameron and team note that oil exploration & production stocks are “trading well ahead of historical levels” but they find some stocks–includingApache (APA), Anadarko Petroleum (APC), and Gulfport Energy (GPOR)–that still trade at attractive valuations. They explain:
Top Industrial Conglomerate Companies To Own For 2016: Sony Corp Ord(SNE)
Sony Corporation designs, develops, manufactures, and sells electronic equipment, instruments, and devices for consumer, professional, and industrial markets worldwide. The company offers consumer products and devices, including televisions, video cameras, compact digital cameras and interchangeable single-lens cameras, Blu-ray Disc players/recorders, DVD-video players/recorders, home theaters and audio systems, and portable audio and car audio products. It also provides charged coupled devices, complementary metal-oxide semiconductor image sensors, system LSIs, small- and medium-sized LCD panels, and other semiconductors; and components, such as batteries, optical disk drives, chemical products, audio/video/data recording media, storage media, and optical pickups. In addition, the company develops, produces, markets, and distributes games, such as PlayStation3, PlayStation Portable, and PlayStation 2 hardware and related software; and PCs and flash memory digital audio pl ayers, as well as manufactures broadcast- and professional-use products, Blu-ray discs, DVDs, and CD discs. Further, it produces and distributes motion pictures and television programs, and home entertainment; creates and distributes digital content; operates television networks and studio facilities; and develops entertainment products, services, and technologies. Additionally, the company engages in the music publishing business, as well as provision of various financial services, including insurance, savings products, loans, and credit financing services; and a network service business and an advertising agency business. It also involves in research, development, design, production, marketing, sales, distribution, and servicing mobile phones, accessories, services, and applications. The company was formerly known as Tokyo Tsushin Kogyo Kabushiki Kaisha and changed its name to Sony Corporation in 1958. Sony Corporation was founded in 1946 and is based in Tokyo, Japan.
- [By Christopher Freeburn]
Here are four things to know about Grand Theft Auto V:
It is available for both Sony‘s (SNE) Playstation 3 and Microsoft‘s (MSFT) Xbox 360 consoles. It is set in a fictionalized urban landscape based on Los Angeles. It offers three main characters, unlike prior editions, which focused on one. Rockstar Games will launch an online version — Grand Theft Auto Online — next month.
Nintendo Still Wont Make a Cash Grab for Mobile Games
Yesterday, Amazon (AMZN) said that it had sold out its pre-orders of Grand Theft Auto V for Xbox consoles, though some copies for the Playstation were still available.
- [By Demitrios Kalogeropoulos]
Don’t write offNintendo’s (NASDAQOTH: NTDOY ) chances for a strong holiday season just yet. Yes, even with a year’s head start, the company’s next-generation Wii U has been badly trailing sales of current-gen consoles from Microsoft (NASDAQ: MSFT ) andSony (NYSE: SNE ) . But that could be set to change soon.
Top Industrial Conglomerate Companies To Own For 2016: NCI Building Systems, Inc.(NCS)
NCI Building Systems, Inc., incorporated on December 23, 1991, is a manufacturer and marketer of metal products for the nonresidential construction industry. The Company provides metal coil coating services for commercial and construction applications, servicing customers. The Company design, engineers, manufactures and markets metal components and engineered building systems in the industry. The Company operates in three segments, including metal coil coating, metal components and engineered building systems. The metal coil coating segment consists of cleaning, treating, painting and slitting continuous steel coils before the steel is fabricated for use by construction and industrial users. The metal components segment products include metal roof and wall panels, doors, metal partitions, metal trim, insulated panels and other related accessories. The engineered building systems segment includes the manufacturing of main frames, Long-Bay Systems and value-added engineering and drafting. The Company consists of a family of companies operating 38 manufacturing facilities spanning the United States and Mexico.
Metal Coil Coating
The Companys Metal coil coating segment consists of cleaning, treating and painting various flat-rolled metals, in coil form, as well as slitting and embossing the metal, before the metal is fabricated for use by various industrial users. The Company cleans, treats and coats both heavy gauge (hot-rolled) and light gauge metal coils for its other operating segments and for third party customers, who utilize them in applications, including construction products, heating and air conditioning systems, water heaters, lighting fixtures, ceiling grids, office furniture, appliances and other products. The Company provides toll coating services under which the customer provides the metal coil and provides only the coil coating process.
The Company operates six metal coil coating facilitie s located in six United States. Two of its facilities coat h! ot-rolled, heavy gauge metal coils and four of its facilities coat light gauge metal coils. The Company process metal coils to supply substantially all the coating requirements of its own metal components and engineered building systems operating segments. The Company also process metal coils to supply customers in different industries.
The Company sells its products and processes to Original Equipment Manufacturer (OEM) customers who utilize pre-painted metal, including other manufacturers of engineered building systems and metal components. The Companys customer base also includes steel mills, metal service centers and painted coil distributors who in-turn supply manufacturers of engineered building systems, metal components, lighting fixtures, ceiling grids, water heaters, appliances and other manufactured products.
The Metal components segment include metal roof and wall systems, metal partitions, metal trim, doo rs and other related accessories. These products are used in new construction and in repair and retrofit applications for industrial, commercial, institutional, agricultural and rural uses. Metal components are used in construction applications, including purlins and girts, roofing, standing seam roofing, walls, doors, trim and other parts of traditional buildings, as well as in architectural applications and engineered building systems. The Companys metal components consist of individual components, including secondary structural framing, metal roof and wall systems and associated metal trims. The Company sells directly to contractors or end users for use in the building industry, including the construction of metal buildings. Specific component products the Company manufactures include metal roof and wall systems, purlins, girts, partitions, header panels and related trim and screws. The Company is focused on developing and marketing new products, such as its Insulated Panel Systems (IPS), Eco-ficientTM panel systems, SoundwallT! M, Nu-Roo! fTM system and Energy Star cool roofing.
Engineered Building Systems
The Companys engineered building systems consist of engineered structural members and panels that are fabricated and roll-formed in a factory. These systems consist of structural framing, secondary structural members (purlins and girts) and metal roof and wall systems or conventional wall materials manufactured by others, such as masonry and concrete tilt-up panels. Engineered building systems consist of three systems: Primary structural framing, Secondary structural framing and Metal roof and wall systems.
Primary structural framing, fabricated from heavy-gauge plate steel, supports the secondary structural framing, roof, walls and all externally applied loads. Through the primary framing, the force of all applied loads is structurally transferred to the foundation. Secondary structural framing is designed to the primary structural framing and transfer applied load s from the roof and walls to the primary structural framing. Secondary structural framing consists of gauge, roll-formed steel components called purlins and girts. Metal roof and wall systems not only lock out the weather but may also contribute to the structural integrity of the overall building system. Roof and wall panels are fabricated from light-gauge, roll-formed steel in many architectural configurations. Accessory components complete the engineered building system. These components include doors, windows, specialty trims, gutters and interior partitions. The Company operates eight facilities for manufacturing and distributing engineered building systems throughout the United States and Monterrey, Mexico.
- [By Monica Gerson]
NCI Building Systems Inc (NYSE: NCS) posted upbeat results for its second quarter on Tuesday. NCI Building Systems shares rose 1.24 percent to $16.30 in the after-hours trading session.