Tag Archives: technology

SPY, IPU: Big ETF Outflows

Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF ( SPY ), where 10,450,000 units were destroyed, or a 1.2%

Biogen Q1 Earnings Beat Estimates, But Sales Miss; Stock Climbs

Big-cap biotech Biogen ( BIIB ) reported a mixed first quarter Thursday morning, and its depressed stock rose in early trading. Biogen posted Q1 earnings of $4.79 a share excluding one-time items, up 25% from the year-earlier quarter and 32 cents above analysts’ consensus, according to Thomson Reuters. Revenue rose 7% to $2.73 billion, about $20 million below Wall Street’s average estimate. Biogen did not change its full-year guidance of $11.1 billion to $11.4 billion in revenue. The shortfall came mainly in sales of multiple-sclerosis drugs, which is also Biogen’s core business. Oral drug Tecfidera grew 15% to $946 million, about $15 million short of consensus, according to Evercore ISI. Interferon products Avonex and Plegridy together sold $670 million, down 11% from Q1 2015 and more than $50 million below consensus. “The shortfall was increased by $40 million in channel inventory reduction, but also included the effect of further rebates to payers in an increasingly competitive category,” wrote Leerink analyst Geoffrey Porges in a research note. “The company’s reported EPS of $4.79 beat consensus … as the company trimmed their R&D expenses more than anticipated.” Biogen’s competition in MS comes mainly from Novartis ( NVS ) and Sanofi ( SNY ), and it might soon get more competition from Roche ‘s ( RHHBY ) ocrelizumab, which is nearing an FDA filing after performing well in clinical trials. Analyst Max Jacobs of Edison Investment Research was more blunt, calling Biogen’s Q1 “an awful quarter” that will likely bring a guidance reduction down the road. “While operating expense control helped save the quarter from an earnings standpoint, management will likely be under pressure from investors to do something drastic to right the ship,” he wrote in a research note. Biogen stock was nonetheless up 4% in early trading on the stock market today , near 277. It’s still down more than 40% from its lifetime high, hit in March 2015, as the company’s MS franchise first started showing weakness last year.

SunEdison Files For Bankruptcy To ‘Right-Size’ Its Balance Sheet

Beleaguered solar developer SunEdison ( SUNE ) filed for Chapter 11 bankruptcy reorganization early Thursday after securing $300 million in debtor-in-possession financing, the company said in a press release . The move had been expected. SunEdison stock, which crashed spectacularly in the second half of 2015, was up a fraction in early trading on the stock market today , at 35 cents. SunEd yieldcos — companies created to hold solar assets — TerraForm Power ( TERP ) and TerraForm Global ( GLBL ) stocks were up a respective 7% and 8%. The SunEdison bankruptcy doesn’t include those yieldcos. SunEd CEO Ahmad Chatila described the Chapter 11 filing as a reorganization that will let SunEd “right-size” its balance sheet and reduce debt. As of Sept. 30 — SunEd’s last financial filing — the company had wracked up $11.7 billion in debt amid a rampant M&A spree that ended with its failed attempt to buy solar installer Vivint Solar ( VSLR ) for an initial $2.2 billion. “Our decision to initiate a court-supervised restructuring was a difficult but important step to address out immediate liquidity needs,” Chatila said in a statement. Restructuring will allow SunEdison to become a “more streamlined and efficient operator” as it sheds non-core assets and takes advantage of its technological and intellectual assets, Chatila said. Meanwhile, SunEdison will continue ongoing projects and pay for products procured after the Chapter 11 filing. Employees will still receive a wage and benefits. SunEdison representatives wouldn’t comment on media inquiries, instead directing reporters to the company’s new restructuring website .