Markets & Finance

Lexmark Sinks after Lowered Guidance


Shares of Lexmark (LXK) moved sharply lower Tuesday after the company cut its third quarter earnings per share guidance to between 40 cents and 50 cents (excluding the estimated impact of a previous workforce reduction), and now expects a 4% to 5% revenue decline. S&P reiterated its hold on the stock.

BP (BP) estimated that the third quarter impact from hurricanes on its replacement cost profit (before interest and tax) will be more than $700 million. The company's production will be lower in the third quarter.

Qwest Communications (Q) said it has full corporate support technologically and operationally to bid positions on the U.S. General Services Administration's Networx Universal and Enterprise contracts, worth more than $40 billion in total.

ValueVision Media (VVTV) said it sees $10 million of consolidated net loss for the third quarter on 5% sales growth. The company cited deteriorating consumer sentiment and high gasoline prices. JP Morgan reportedly downgraded the stock to neutral from overweight.

Goodyear Tire & Rubber (GT) implemented temporary reductions in production at its North American tire facilities due to disruptions in the supply of certain raw materials due to Hurricane Rita.

PartnerRe (PRE) estimated that the total net impact of Gulf Coast hurricanes and flooding in Central Europe, adjusted for reinstatement premiums, will be between $560 million and $590 million on a pre-tax basis.

Martin Marietta Materials (MLM) said it sees better-than-expected $1.61 to $1.66 third quarter earnings per share (including a 17 cents benefit). The company cited continued strong aggregates pricing, solid volume, and good cost management. The comapny sees $3.80 to $3.95 2005 earnings per share.

Cytogen (CYTO) withdrew its previously provided revenue guidance of about $20 million for 2005, as it now expects actual results to be lower than this forecast.

Clorox (CLX) said it sees 41 cents to 47 cents second quarter earnings per share from continuing operations on a 1% to 3% sales rise. The company cited rapidly rising energy-related costs driven by impacts of recent hurricanes and sees $2.91 to $3.06 fiscal year 2006 earnings per share.

The Food and Drug Administration approved Abbott Laboratories' (ABT) Humira for reducing the signs and symptoms of active arthritis in patients with psoriatic arthritis, and as a first-line treatment for patients with moderate to severe rheumatoid arthritis (RA).

Goodrich Petroleum (GDP) estimated that its third quarter production volumes will exceed 21,500 Mcfe per day produced in the second quarter despite the shut-in of production due to hurricanes. The company sees third quarter natural gas hedging-activity losses of about $30 million, and expects a tax benefit of $10.5 million.

TOO (TOO) raised its 41 cents to 43 cents third quarter earnings per share, citing stonger back-to-school sales.

Nu Skin Enterprises (NUS) cut its third quarter earnings per share guidance to 24 cents to 26 cents, and it expects revenue to be up about 2%. The company noted that its third quarter revenue will be negatively impacted by weaker-than-expected results in Mainland China, Japan, and the U.S.

Walgreen (WAG) posted 7.7% higher same-store September sales and 11% higher total sales. The company noted comparable sales excluding stores closed seven or more consecutive days from the impact of Hurricanes Katrina and Rita.

Amsurg (AMSG) cut its third quarter earnings per share to 30 cents (excluding an estimated 2 cents to 5 cents of property losses from Hurricane Katrina). S&P maintained its hold opinion on the stock. Legg Mason cut its estimates.

Sun Microsystems (SUNW) shares rose further following news Monday that Google (GOOG) and Sun Microsystems are holding a press conference today at 10:30 a.m. PDT to discuss a collaborative effort.

Continental Airlines (CAL) said that despite adverse impact from Hurricanes Katrina and Rita, as well as continued record high jet fuel prices, the airline expects to report modest profit for the third quarter due to relatively strong performance during July and August.

ValueVision Media (VVTV) said it sees $10 million of consolidated net loss for the third quarter on 5% sales growth. The company cited deteriorating consumer sentiment and high gasoline prices. JP Morgan reportedly downgraded the stock to neutral from overweight.

SupportSoft (SPRT) said it sees $13 million of third quarter total revenue. Although the company was disappointed with results, it did close several significant million-dollar transactions this quarter.

Symbion(SMBI) said there has been no news, but its stock is likely weaker today due to the third quarter preannouncement by its peer Amsurg (AMSG); the company also cited a downgrade by Jefferies, which changed its opinion to hold from buy on valuation but maintained a $27 price target.

AirTran Holdings (AAI) said September traffic grew by 55% on 30% more capacity. Bear Stearns upgraded the stock to outperform from peer perform.

AMR(AMR) Posted a September load factor of 76.2%, an increase of 2.8 points from the same period last year.

Fox & Hound Restaurant Group (FOXX) Signed a letter of intent to be acquired by Levine Leichtman Capital Partners for $14.00 per share cash.

Weider Nutrition International (WNI) Posted 18 cents vs. 14 cents first quarter earnings per share on a 9.9% sales rise.

Lifeway Foods (LWAY) said its third quarter sales grew 26% to about $5.19 million from $4.14 million a year earlier.

Mylan Laboratories (MYL) Received final approval from the Food and Drug Administration for its Abbreviated NDA for Amlodipine Besylate Tablets (a generic version of PFE's Norvasc tablets), used to treat hypertension and angina.

Amtech Systems (ASYS) said it got two new orders for its Tempress brand diffusion furnaces totaling $1.2 million. The company said orders are from customers that produce solar cells in China and the German research institute.

Crown Castle International (CCI) said it is evaluating alternatives for its investment in Crown Castle Australia, which may include leveraging recap or the sale of part or all of its interest in a transaction involving an Australian initial public offering or private sale.


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