Markets & Finance

Movers: Intel, Yahoo, Bear Stearns, Ericsson, GM, EchoStar


Tuesday's stocks in the news

From Standard & Poor's Equity ResearchAfter the market close, Intel (INTC) reports third quarter EPS of $0.31, a penny above the Reuters Estimates consensus of $0.30. Revenues rose 15.6% from a year ago to $10.1 billion, vs. the $9.61 billion consensus. It issues higher guidance for the fourth quarter - it sees revenues of $10.5-11.1 billion, vs. $10.43 billion consensus. It sees fourth quarter gross margin 57% plus or minus a couple of points, vs. 55.1% consensus.

Yahoo (YHOO) reports third quarter EPS of $0.11, $0.03 better than the Reuters Estimates consensus of $0.08; revenues ex TAC rose 14.5% from a year ago to $1.28 billion, vs. the $1.24 billion consensus. It issues in-line guidance for the fourth quarter -- it sees revenues ex TAC of $1.31-1.45 billion, vs. $1.37 billion consensus.

IBM (IBM) reports third quarter EPS of $1.68 per share, matching the consensus estimate; revenues rose 6.6% from a year ago to $24.12 billion.

China CITIC Bank Corp. Ltd. is reportedly bidding to buy a stake in Bear Stearns (BSC).

Ericsson (ERIC) sees lower-than-expected third quarter sales of SEK43.5 billion, operating income of SEK5.6 billion, and a negative cash flow of SEK1.6 billion. It cites an unexpected shift in the business mix.

Genentech (DNA) posts $0.73, vs. $0.59 a year ago, third quarter non-GAAP EPS on 22% non-GAAP revenue rise. It continues to see 28%-32% rise in non-GAAP EPS for full-year 2007. But revenues are seen as below consensus view.

Bear Stearns downgrades General Motors (GM) to underperform from peer perform; recommends swapping into Ford (F) (rated outperform). Bear states that from Monday's conference call regarding the UAW agreement, it concluded that the 2008-09 benefits to EPS and cash flow appear to be less than it had expected.

D.R. Horton (DHI) reports a 48% drop in in September-quarter net sales orders. S&P maintains buy as it remains positive on DHI's ability to gain share when housing recovers.

EchoStar Communications (DISH) rises after The Street.com reports on its Web site that AT&T (T) has hired Goldman Sachs to advise it on the possible purchase of DISH.

Wells Fargo & Co. (WFC) posts lower-than-expected $0.68, vs. $0.64 a year ago, third quarter EPS on 10% revenue rise. It notes net credit losses in the third quarter were up $172 million from the second quarter.

KeyCorp (KEY) posts $0.57, vs. $0.74 a year ago, third quarter EPS from continuing operations on 1.9% drop in net interest income. It sees $0.68-$0.74 fourth quarter EPS.

Johnson & Johnson (JNJ) posts $0.88, vs. $0.94 a year ago, third quarter EPS as after-tax restructuring charge of $528 million offset 13% higher sales. It posts $1.06 non-GAAP EPS, which is ahead of Street views. It raises 2007 EPS guidance to $4.10-$4.13, excluding impact of in-process research and development charges, restructuring charges or other special items.

Forest Laboratories (FRX) posts $0.71, vs. $0.75 a year ago, second quarter EPS as $70 million licensing charge made in connection with Microbia agreement offset 8.5% revenue rise. It sees $3.10-$3.20 fiscal year 2008 EPS, which excludes the $70 million ($0.15 net of tax) licensing charge, as it was not included in prior guidance.

Lululemon Athletica (LULU) sees third quarter same-store sales up in mid-30% range vs. a year ago, compared with previous guidance of growth in mid- to high teens. It cites strong sales volumes, impact on sales of a strengthening Canadian dollar vs. U.S. dollar. It expects to exceed its $0.05-$0.06 previous third quarter EPS guidance.

Pinnacle Gas Resources (PINN) agrees to be acquired by Quest Resources (QRCP). Terms 0.6584 of a QRCP share per PINN share.

Saks (SKS) rises after Monday's Women's Wear Daily reported that SKS could be getting ready to entertain suitors. Sources indicated that the luxury retailer is opening the door to the possibility of a sale and may even have at least two interested buyers.

State Street (STT) posts $1.15, vs. $0.83 a year ago, third quarter EPS from operations on 48% revenue rise. Due to strong performance of recently acquired Investors Financial, now expects this year's dilution from acquisition to approximately $0.06 per share, reduced by more than half from its original outlook. S&P upgrades to buy from hold.

Delta Air Lines (DAL) posts $363 million, vs. $29 million a year ago, third quarter pre-tax income on 10% revenue rise. It posts $0.56 third quarter EPS. It sees 3%-5% fourth quarter operating margin, and 6%-7% for 2007.

E.W. Scripps (SSP) says its board of directors has unanimously authorized management to pursue a plan to separate the company into two publicly traded companies, one focused on creating national lifestyle media brands and the other on building market-leading local media franchises.

Steven Madden (SHOO) sees third quarter sales of about $113 million, vs. year ago's $123.2 million. It cites a decrease in wholesale revenues of approximately 6% for the quarter. It says net sales also include a decline in total retail sales of about 13% and a same-store sales decrease of about 15%. Now sees third quarter EPS of $0.50-$0.52, including items. It cuts 2007 guidance to annual sales decline of 9%-11% , EPS of $1.60-$1.70.

ValueClick (VCLK) cuts $155-$165 million third quarter revenue forecast to $156-$157 million on continued weakness in lead generation. It sees third quarter EPS within $0.16-$0.17 guidance. It cuts $645-$660 million 2007 revenue forecast to $635-$640 million. It sees 2007 adj-EBITDA at 25%-26% vs. prior guidance of 26%.

Adtran (ADTN) posts $0.31, vs. $0.33 a year ago, third quarter EPS on 6.7% decline in sales.

Tidewater (TDW) sees $1.54-$1.57 second quarter EPS vs. $1.71 consensus. It notes slightly higher vessel revenues, vessel operating costs, lower gains on asset sales when compared with results reported in the prior quarter.


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