Markets & Finance

Movers: Lehman Brothers, Molson Coors, Hewitt, Cablevision, Archer-Daniels-Midland, P&G


Stocks in the news on Tuesday

From Standard & Poor's Equity ResearchCNBC reports that Lehman Brothers (LEH) is considering selling its entire investment management business, including private equity and hedge fund stakes, rather than just its Neuberger Berman business, as the bank looks to raise capital.

Molson Coors Brewing (TAP) posts $0.93, vs. $0.97, second quarter non-GAAP EPS (underlying after-tax income) as higher special charges, increased energy and commodity inflation in all markets, higher effective tax rate for the second quarter offset 4.8% sales rise.

WSJ reports Dish Network (DISH) Monday posted the first quarterly subscriber losses ever reported by a major U.S. satellite-TV provider. The results highlight a strategic problem that is prompting Chairman and Chief Executive Charles Ergen to weigh another attempt to merge with rival DIRECTV GROUP (DTV), people familiar with the matter say. S&P maintains hold on DISH.

Hewitt Associates (HEW) posts $0.48, vs. $0.43 a year ago, third quarter EPS on 7.0% revenue rise. Sees mid to high-single digit FY 08 revenue growth, $1.90-$2.00 underlying EPS.

Cablevision Systems (CVC) announced today that its board of directors has authorized co. to take all actions necessary or desirable to evaluate and establish a policy with respect to regular quarterly dividends or stock buybacks as promptly as practicable. As part of this strategic review, the board also authorized CVC to explore the spin-off of one or more businesses and other potential strategies.

Archer-Daniels-Midland (ADM) posts lower-than-expected $0.58, vs. $1.47, fourth quarter EPS on 78% revenue rise. Street was looking for $0.67. Notes second quarter fiscal year 2007 includes after-tax gains on asset sales of $0.95 per share.

Procter & Gamble (PG) posts $0.92, vs. $0.67, fourth quarter EPS on 10% revenue rise. Sees $4.18-$4.25 fiscal year 2009 GAAP EPS, which including an estimated $0.50 gain from Folgers sale, $0.12 investment in incremental restructuring.

Rackable Systems (RACK) posts $0.12 second quarter non-GAAP loss, vs. $0.02 EPS, on 7.5% revenue decline, narrowed gross margin. Sees 2008 revenue of $353-$374 million non-GAAP gross margin is projected to be in the range of 18%-21%. positive non-GAAP EPS. Merriman reportedly downgrades to neutral from buy.

Haverty Furniture Companies (HVT) posts $0.11 second quarter loss, vs. $0.06 loss, on 13% lower same-store sales, 10% lower total sales. For the month of July, posts 10% lower same-store sales, 7.3% lower total sales. Notes that after the July sales release, it will no longer be reporting monthly sales results.

Interline Brands (IBI ) posts $0.34, vs. $0.37, second quarter EPS on slightly lower sales. Notes on a relative basis, profitability in the second half of 2008 will be higher than in first half 2008 due to a seasonally stronger third quarter and fourth quarter. Sees $0.41-$0.46 third quarter EPS. For 2008, sees EPS of $1.40-$1.50, which includes one-time costs of $0.02 to amend certain stock option and employment agreements with William Sanford, and $0.04 related to operational initiatives. Baird downgrades to neutral from outperform.

Pioneer Natural Resources (PXD) posts weaker-than-expected $1.32, vs. $0.30, second quarter EPS on 50% higher revenue. Raises its 2008 production growth target to 18%-20% from 14%. Expects 2009 discretionary cash flow to rise by about 50% and earnings to double from 2008 levels based on current commodity prices and costs.

Bankrate (RATE) posts $0.39, vs. $0.35, second quarter adjusted operating EPS on 73% revenue rise. As previously announced on July 7, 2008, RATE lowered its 2008 annual guidance as a result of softness in display advertising. The company expects annual revenue to be between $164-$169 million and adjusted EBITDA of $54-$58 million. Jefferies cuts price target to $35 from $54. Also cuts estimates and reiterates hold.

UBS reportedly initiates coverage on Apple (AAPL) with buy.

UBS reportedly upgrades AIG (AIG ) to buy from neutral.

Health Net (HNT) posts $0.74 (adjusted), vs. $0.80, second quarter EPS despite 11% revenue rise. Reducing '08 EPS guidance to $1.97-$2.03, which includes charges taken in the first half of 2008 and the remaining $60-$70 million in pretax operations strategy charges HNT expects to take in third quarter and fourth quarter. Excluding these charges, HNT expects EPS of $2.85-$2.95, vs. previous guidance of $3.45-$3.55.

Emergency Medical Services (EMS) posts $0.43, vs. $0.35, second quarter EPS on 11% revenue rise. Raises $1.57-$1.63 2008 EPS forecast to $1.70-$1.75, $225-$230 million adjusted EBITDA to $227-$232 million.

Tenet Healthcare (THC) posts $0.03 second quarter loss, vs. $0.06 loss, on 6.3% revenue rise.

Rudolph Technologies (RTEC) posts $0.06 second quarter loss (including $0.03 charge) vs. $0.19 EPS, on 19% revenue decline. Sets 3 million share buyback.

Emerson Electric (EMR) posts $0.82, vs. $0.71, third quarter EPS from continuing operations on 14% revenue rise. Based on strong results for first three quarters of fiscal year 2008 and continued solid order trends, now expects fiscal year 2008 EPS from continuing operations in the range of $3.05-$3.10, vs. earlier forecast of $3.00-$3.10. Says fiscal year 2008 reported sales are still expected to be approximately $25 billion, an increase of 11%-13% over year ago sales of $22.1 billion.

Covidien Ltd. (COV) posts $0.72, vs. $0.64, third quarter non-GAAP EPS (excluding items) on 14% revenue rise.

Leapfrog Enterprises (LF) posts $0.32 second quarter loss, vs. $0.44 loss, on 22% sales rise. Sales aided by Tag reading system and Leapster2 and Didj.


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