Stocks in the news Monday
From Standard & Poor's Equity ResearchHumana (HUM) posts better-than-expected $1.24, vs. $1.28 a year ago, second quarter EPS as higher costs offset 14% revenue rise. It sees $1.45-$1.50 third quarter EPS, raises $4.10-$4.35 2008 EPS guidance to $4.30-$4.40. Separately, HUM buys PHP Cos. Inc. (d/b/a Cariten Healthcare) from Knoxville, Tenn.-based Covenant Health for about $245 million cash.
Motorola (MOT) names Dr. Sanjay Jha as co-chief executive officer of MOT and CEO of the company's Mobile Devices business, effective immediately. Jha will be responsible for overseeing all aspects of the company's Mobile Devices business. It says Greg Brown will also serve as co-chief executive officer of MOT, has been named CEO of the company's Broadband Mobility Solutions business, which consists of the Home & Networks Mobility and Enterprise Mobility Solutions businesses. S&P views hiring of Jha as positive, maintains hold.
Charlotte Russe Holding (CHIC) says Patti Johnson resigns as CFO. Len Mogil, currently interim CEO, assume the additional position of interim CFO. Roth Capital downgrades to sell from hold.
Dish Network (DISH) posts $0.73, vs. $0.50, Q2 EPS on 5.6% revenue rise. Notes it lost approximately 25,000 net subscribers during Q2, ending Q2 with about 13.79 million subscribers.
Freightcar America (RAIL) posts $0.08 Q2 loss, vs. $0.93 EPS, on 28% sales drop. Notes combination of sharp increase in input costs, specifically steel and aluminum, and pricing pressures has reduced margins. Due to increases in raw material costs on certain fixed price railcar contracts in backlog, the company's current estimated cost to complete some contracts is expected to exceed contractual sales price.
Simtek (SMTK) agrees to be acquired by Cypress Semiconductor (CY) for approximately $46 million (including the value of SMTK shares held by CY). Terms: $2.60 per share for each SMTK share held.
HSBC Holdings PLC (HBC) posts first half pretax profit of $10.247 billion, down 28% from year ago period. Tier 1 capital ratio was 8.8%. Results include loan impairment charges and credit risk provisions of $10.058 billion.
Louisiana-Pacific (LPX) suspends $0.15 per share quarterly dividend pending improvement of overall market.
Yahoo (YHOO) announces that at the company's annual meeting of stockholders, stockholders reelect all of YHOO's nominees to the Board of Directors. At a meeting of the YHOO directors immediately following the Annual Meeting, Board appoints Carl Icahn to fill board seat vacated by Robert Kotick, whose resignation from Board became effective immediately following Annual Meeting.
Standard Motor Products (SMP) posts breakeven second quarter non-GAAP EPS, vs. $0.32 EPS a year ago, on slight sales decline.
Nissan Motor (NSANY) says sales of Nissan and Infiniti vehicles took an 8.4% share of the U.S. market in July, a 2 percentage-point gain over June and the highest monthly market share in at least 28 years.
Church & Dwight (CHD) posts $0.66, vs. $0.59, second quarter EPS on 8.0% organic revenue rise. Sees 3%-4% 2008 organic revenue growth. Due to its solid first half performance, the success of new product launches, gross margin increase, raises 2008 EPS (before charges) estimate to $2.83-$2.85 from $2.77.
PeopleSupport (PSPT) agrees to be acquired by Aegis BPO in a $250 million deal. Terms: $12.25 cash per PSPT share. PSPT posts $0.06 second quarter loss, vs. $0.16 EPS, despite 6% revenue rise.
InterContinentalExchange (ICE) posts $1.19, vs. $0.75, second quarter EPS on 44% revenue rise. Quarterly volume exceeds 126 million futures and OTC contracts, up 44%. Sets $500 million stock buyback.
Cooper Tire & Rubber (CTB) posts $0.38 second quarter loss from continuing operations, vs. $0.25 EPS a year ago, as sharply lower gross profit offset 5.8% sales rise. It says current macroeconomic conditions in North America have created intense challenges for CTB, and raw material costs have continued to climb globally and show no signs of declining in the near term. Says macro economic environment have caused it to be guarded in expectations of profitability for 2008, and to reduce its capital expenditure plans for the year.