Markets & Finance

Sherwin-Williams Falls on Court Verdict

Posted on February 22, 2006

Sherwin-Williams (SHW

) shares moved lower Thursday after the company was found liable in a Rhode Island lead paint case. S&P downgraded the shares to hold from buy. FTN Midwest downgraded the shares to neutral from buy. Credit Suisse suspended its rating.

Viacom (VIA.B

) posts 37 cents vs. 42 cents fourth quarter earnings per share (EPS) from continuing operations (excluding items) despite a 9% revenue rise. It sees double-digit 2006 revenue growth, and $1.95 to $2 EPS from continuing operations.

Earthlink (ELNK

) expects subscriber decreases in the second and third quarter as well as growth in the fourth quarter. It also estimates about 5.3 million subsriptions by year-end 2006, about level with 2005. It sees $310 million to $315 million first quarter revenue and 2006 revenue of about $1.3 billion.

Host Marriott (HMT

) posts 19 cents vs. 15 cents fourth quarter EPS on a 9.7% revenue rise. It sees 99 cents to $1.01 first quarter EPS and $1.44 to $1.54 in 2006.

Checkpoint Systems (CKP

) postpones its fourth quarter 2005 EPS release from Feb. 23 to Mar. 2 to provide additional time for management, which must review appropriate accounting treatment of certain non-recurring tax items. Independent accountants still have to complete their audit of the firm.

Toll Brothers (TOL

) posts 98 cents vs. 66 cents fourth quarter EPS on a 35% revenue rise.

Pattersoncos (PDCO

) posts 39 cents vs. 36 cents third quarter EPS on a 7% sales rise. It sees 40 cents to 42 cents fourth quarter EPS and cuts its $1.44 to $1.46 fiscal year 2006 EPS forecast to between $1.42 to $1.44.

Community Health Systems (CYH

) posts 54 cents vs. 46 cents fourth quarter EPS from continuing operaitons on a 17% revenue rise. It sees 55 cents to 57 cents first quarter EPS from continuing operations. It plans to buy two hospitals from Baptist Health System in Alabama.

Marvel Entertainment (MVL

) posts 26 cents vs. 27 cents fourth quarter EPS as higher costs, expenses, and a charge offset a 17% sales rise. It raises 37 cents to 52 cents 2006 EPS on $270 million to $300 million revenue guidance to 44 cents to 55 cents EPS on $320 million to $350 million.

Chiquita Brands (CQB

) posts 45 cents fourth quarter loss vs. 61 cents EPS as higher operating costs, including $23 million of costs from flooding in Honduras and consolidation of fresh-cut fruit facilities, offset a 30% sales rise.

JLG Industries (JLG

) posts 52 cents vs. 17 cents second quarter EPS on a 40% sales rise. It projects fiscal year 2006 revenue growth will be at the upper end of the previously announced 20% to 25% range; it raises $2.15 to $2.25 EPS estimates to $2.35 to $2.45.

Group 1 Automotive (GPI

) posts 66 cents vs. 47 cents fourth quarter EPS as improved gross margin offset a 1.1% revenue drop. It sees $3.15 to $3.45 2006 EPS. It also sets a 13 cents quarterly dividend.

Novatel Wireless (NVTL

) posts breakeven fourth quarter vs. 17 cents EPS (GAAP) despite a 46% revenue rise.

Oneok (OKE

) posts $2.30 vs. 90 cents fourth quarter EPS on an 85% revenue rise.

Pharmion (PHRM

) posts lower-than-expected 15 cents vs. 8 cents fourth quarter EPS (pro forma) on a 9.6% revenue rise. It sees 2006 sales in line with 2005 and says that on April 1, COO Judith Hemberger will retire.

Symbol Technologies (SBL

) posts 9 cents vs. 11 cents fourth quarter EPS on a 2.6% revenue decline. It sees 8 cents to 9 cents first quarter EPS, including legal expenses, on sequentially flat revenue.

Amedisys (AMED

) posts weaker-than-expected 45 cents vs. 39 cents fourth quarter EPS on an 85% rise in net service revenue. It maintains $2.33 to $2.43 2006 EPS guidance. Chief Financial Officer Gregory Browne resigns.

Limited Brands (LTD

) posts $1.28 vs. 87 cents fourth quarter EPS (including items) on 3% higher same-store sales and 6% higher net sales. It sees roughly flat first quarter earnings vs. a year ago and $1.40 to $1.50 fiscal year 2007.

Kos Pharmaceutic (KOSP

) posts 53 cents vs. $1.15 fourth quarter EPS as one-time items, higher costs, and expenses offset a 42% revenue rise. It sees reduced operating margins in 2006. It also sees 5 cents to 10 cents first quarter GAAP loss and $1.70 to $1.80 in 2006 reported EPS.

Express Scripts (ESRX

) posted 75 cents vs. 53 cents fourth quarter EPS on an 18% revenue rise. It sees $3.10 to $3.22 2006 EPS, including stock options.

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