Markets & Finance

Movers: Citigroup, Mastercard, Visa, Merck, Energizer, Gildan Activewear


Tuesday's stocks in the news

From Standard & Poor's Equity ResearchCitigroup (C) said it will sell at least $3 billion in common stock to shore up its capital position. Citi shares fell 3% to $25.52 in after-hours trading.

Mastercard (MA) posts $3.38, vs. $1.57, first quarter GAAP EPS on 29% higher net revenue. Says currency fluctuations (driven by movement of the euro and the Brazilian real relative to the U.S. dollar) contributed 5.1% of the increase in net revenue for quarter.

Visa (V) posts $0.52 second quarter adjusted EPS (Class A) on revenue of $1.5 billion. It says its financial outlook over the next three years includes the following metrics: annual net revenue growth of 11%-15%; annual adjusted operating margin in the low 40% range; annual adjusted EPS growth of 20% or greater; and annual free cash flow in excess of $1 billion.

Biogen Idec (BIIB) and Genentech (DNA) announce that a Phase II/III study of Rituxan(R) (rituximab) for systemic lupus erythematosus (SLE, commonly called lupus) did not meet its primary endpoint defined as the proportion of Rituxan treated patients who achieved a major clinical response (MCR) or partial clinical response (PCR) measured by BILAG, a lupus activity response index, compared to placebo at 52 weeks.

Energizer Holdings (ENR) posts $1.03, vs. $1.14, second quarter EPS as higher costs offset 30% sales rise.

Merck & Co. (MRK) receives a Not Approvable action letter from the FDA for its New Drug Application (NDA) for MK-0524A for the treatment of primary hypercholesterolemia or mixed dyslipidemia. Also reaffirms '08 financial guidance. Bear Stearns trims estimates, but keeps outperform.

Fresh Del Monte Produce (FDP) posts $1.07, vs. $0.84 a year ago, first quarter EPS (excluding items) on 7% sales rise. Says gross profit for the first quarter decreased due to a $10.2 million negative impact for forex as compared to last year, as currencies in its producing countries strengthened against the dollar.

Under Armour (UA) posts $0.06, vs. $0.20 a year ago, first quarter EPS as higher costs, expenses offset 27% revenue rise. Cuts $108.5-$110.5 million 2008 income from operations forecast to $103.5-$104.5 million.

Temple-Inland (TIN) posts $0.05 first quarter non-GAAP loss per share, vs. $0.15 EPS a year ago, on 5.9% revenue decline. S&P cuts estimate, target; keeps hold.

Fair Isaac (FIC) posts $0.36, vs. $0.37 a year ago, second quarter EPS from continuing operations as charge related to workforce reduction offset 1.3% revenue rise. Sees second half fiscal year 2008 revenue from continuing operations of approximately $380 million and EPS of about $0.74. S&P cuts estimates, maintains hold.

LCA-Vision (LCAV) posts $0.37, vs. $0.54 a year ago, first quarter EPS on 8% lower same-store sales, 12% lower adjusted sales. Says procedure volume was 44,159 compared with 59,101. Also notes that attended exams did not keep pace with the growth in scheduled exams.

Questar (STR) posts $1.05, vs. $0.86, first quarter EPS. The company grew natural gas, oil and natural gas liquids (NGL) production 13% to 39.5 billion cubic feet of natural gas equivalent (Bcfe) compared to 34.9 Bcfe for the 2007 period. Raises 2008 EPS view to $3.25-$3.40 from $3.05-$3.20. Also raises E&P 2008 production range to 166-169 Bcfe from previous guidance of 160-163 Bcfe. S&P maintains buy.

Microchip Technology (MCHP) posts $0.42, vs. $0.37, fourth quarter non-GAAP EPS on slightly higher revenue. Sees $0.43-$0.45 first quarter non-GAAP EPS on 2%-6% higher sales vs. fourth quarter levels. Sets $0.33 quarterly cash dividend. S&P reiterates hold.

JDA Software Group (JDAS) posts $0.33, vs. $0.28, first quarter non-GAAP adjusted EPS on 3.5% revenue rise. Results ahead of $0.30 consensus view.

Gildan Activewear (GIL) cuts $0.42 second quarter EPS guidance to $0.35 due to lower-than-projected unit sales growth in activewear as result of shortfall in production for Dominican Republic textile facility, write-down of inventories of discontinued retail product-lines pursuant to rationalization of the company's product-mix within the sock category, additional costs incurred to service mass-market retailers during integration of retail information systems. Cuts $1.85-$1.90 fiscal year 2008 EPS forecast to $1.45-$1.50.

McGraw-Hill Companies (MHP) posts $0.25, vs. $0.40, first quarter EPS on 6.1% revenue drop. Says if current trends in financial markets continue for balance of year, it would expect 2008 EPS of $2.65-$2.75. (McGraw-Hill is the parent company of BusinessWeek and Standard & Poor's.

Office Depot (ODP) posts better-than-expected $0.29, vs. $0.59, first quarter non-GAAP EPS on 3.2% lower sales.

Wausau Paper (WPP) posts $0.06 first quarter non-GAAP loss per share, vs. $0.05 EPS, on slightly lower revenues. Notes shipments decreased 8% to 208,000 tons due primarily to reduced Printing & Writing volumes associated with the December 2007 closure of its Groveton, NH paper mill. Expects non-GAAP second quarter results to improve to breakeven levels (excluding timberland sales gains and charges related to the Groveton mill closure).

Valero Energy (VLO) posts $0.48 (including $0.12 benefit), vs. $1.82 first quarter EPS from continuing operations as higher operating costs offset 49% higher operating revenue.

Daimler AG (DAI) posts €1.29, vs. €1.89, first quarter EPS on flat revenue. Posts €1.98 billion, vs. €3.29 billion first quarter EBIT. Expects total revenue to increase moderately in 2008 vs. 2007's €99.4 billion.

Corning (GLW) posts $0.44 (excluding special item), vs. $0.40 first quarter EPS on 24% sales rise. Current results exclude a non-cash credit of $327 million pretax, after-tax related to the pending Pittsburgh Corning Corporation bankruptcy proceeding. Sees $0.47-$0.50 second quarter EPS (excluding special item) on $1.71-$1.75 billion sales. S&P maintains strong buy.

Archer-Daniels-Midland (ADM) posts $0.80, vs. $0.56 a year ago, third quarter EPS on 64% revenue rise.

Lear (LEA) posts $1.00, vs. $0.64 a year ago, first quarter EPS as lower costs offset 12% revenue decline. Expects 2008 net sales of approximately $15.5 billion, compared with prior guidance of $15.0 billion.

CBS Corp. (CBS) posts $0.36, vs. $0.28, reported first quarter EPS despite flat revenues. Sees operating income growth of 3%-5% for 2008, excluding stock-based compensation expense and restructuring charges. Also raises quarterly dividend by 8% to $0.27. S&P maintains sell.

TheStreet.com (TSCM) posts $0.07, vs. $0.11 a year ago, first quarter EPS as higher operating costs offset 31% revenue rise.

Heidrick & Struggles International (HSII) posts $0.38, vs. $0.53 a year ago, first quarter EPS as higher operating expenses offset 6.9% revenue rise. Reiterates 2008 expectation of net revenue of $650-$670 million, representing growth of 5%-8% over 2007.

Campbell Soup (CPB) announces plans to sell its Australian snack foods business and close a plant in Canada in a move to cut costs and focus on core businesses. Expects to incur pre-tax charges and implementation costs of about $230 million related to these initiatives, primarily in the third quarter and fourth quarter of fiscal year 2008 (July). Says future savings from these actions should have a "modestly favorable impact on earnings and cash flow" beginning in fiscal year 2009.

Covance (CVD) posts $0.73 (excluding gain on sale), vs. on 15% revenue rise. Says favorable market conditions gives company increased confidence in its ability to deliver low-to-mid-teens revenue growth and a 20% annual growth in EPS to $3.18 in 2008.

Martha Stewart Living Omnimedia (MSO) posts $0.08 first quarter loss per share, vs. $0.23 loss a year ago, on 2% revenue rise. Notes first quarter revenue was led by increased advertising revenue across all three of its ad-supported platforms -- Publishing, Broadcasting and Internet -- as well as on-target performance in Merchandising.

TravelZoo (TZOO) posts $0.07 first quarter loss per share, vs. $0.25 EPS a year ago, as the cost of expansion in the Asia-Pacific region and Europe offsets a 6.1% revenue rise.


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