Wednesday's stocks in the news
From Standard & Poor's Equity ResearchThe Wall Street Journal reports that Google (GOOG) is in talks with Verizon Wireless (VZ) and Sprint (S) about offering handsets tailored to its new operating system.
Alcatel-Lucent (ALU) posts €0.11 third quarter loss, vs. €0.23 EPS (pro forma) a year ago, on 11% revenue drop. It sees "solid ramp up" in fourth quarter revenues from the third quarter. It sees acceleration of its ongoing headcount targets into 2008 with incremental reductions of about 4,000 by 2009.
Cerberus Capital Management LP officially withdrew its $6.2 billion offer for Affiliated Computer Services (ACS) on Tuesday, amid shareholder irritation over how the company's directors handled the $62-per-share approach, according to people familiar with the matter, reports the Wall Street Journal.
MasterCard (MA) posts $2.31 (including a $0.51 gain), vs. $1.42 third quarter EPS on 20% net revenue rise. It sets $750 million Class A stock buyback.
Garmin (GRMN) posts $0.88, vs. $0.56 a year ago, third quarter EPS on 79% revenue rise. It notes operating margin declined 30 basis points from year-ago quarter; sees more significant margin compression in the fourth quarter. It sees 2007 revenue exceeding $2.9 billion and EPS above $3.40. It plans to make a bid for all outstanding shares of Tele Atlas N.V.
Newmont Mining (NEM) posts third quarter EPS of $0.88, vs. $0.44 a year ago, on 49% higher revenue. S&P raises estimates, target, reiterates hold.
McKesson (MCK) posts $0.82, vs. $0.66 a year ago, second quarter EPS from continuing operations on 9.2% revenue rise. It raises fiscal year 2008 EPs view to $3.22-$3.37. S&P reiterates strong buy. Citigroup reportedly upgrades to buy from hold.
Jones Apparel Group (JNY) posts better-than-expected $0.51, vs. $0.59 a year ago, third quarter adjusted EPS from continuing operations on 8.7% lower same-store sales, 4.6% lower total sales. It posts $3.97 third quarter EPS. It maintains 2007 adjusted EPS from continuing operations forecast of $1.20-$1.25.
MicroStrategy (MSTR) posts third quarter EPS of $1.51, vs. $1.27 a year ago, on 23% revenue rise. Roth Capital raises estimates, target, keeps buy.
Transocean (RIG) posts $3.24, vs. $0.96 a year ago, third quarter EPS on 50% revenue rise.
Kraft Foods (KFT) posts $0.44, vs. $0.56, third quarter EPS (excluding items) on 9.8% higher revenue. Organic revenue grew 6.2%. Company still sees $1.80-$1.82 2007 EPS (excluding items).
Visteon (VC) posts narrower-than-expected $0.84 third quarter loss per share, vs. $1.38 loss a year ago, despite 1.3% revenue drop. It sees 2007 free cash flow of negative $200 million to negative $260 million. It expects to be free cash flow positive in 2009.
Websense (WBSN) posts $0.24 non-GAAP third quarter EPS on 10% revenue rise. Non-GAAP net income fell 3% from a year ago. It sees fourth quarter non-GAAP EPS of $0.20-$0.23, $1.10-$1.17 for 2008.
Lodgenet Entertainment (LNET) posts $0.15 third quarter loss (excluding acquisition charge) vs. $0.12 EPS as higher costs offset 86% revenue rise. It sees 2007 non-GAAP loss of $0.78-$0.92 on revenue of $484-$490 million. Bear Stearns downgrades to peer perform from outperform.
Chipotle Mexican Grill (CMG) posts third quarter EPS of $0.62, vs. $0.36 a year ago, on 12% higher same-restaurant sales, 36% higher total revenue. It expects 2007 same-restaurant sales increase in low double-digit range. It expects 2008 comps in low to mid single-digit range.
Clorox (CLX) posts first quarter EPS of $0.76, vs. $0.73 a year ago, on 6.9% sales rise. It agrees to acquire Burt's Bees for $925 million. It anticipates that the transaction will dilute its fiscal year 2008 EPS by about 10-15 cents, and that it will be slightly accretive in fiscal year 2009.
Commscore (CTV) posts $0.81 vs. $0.64 (adjusted) third quarter EPS on 10% sales rise. It sees fourth quarter revenue of $420-$440 million (vs. third quarter's $513.6 million), up approximately 7%-12% year-over-year, operating income increase of 20%-40%. It cuts 2007 sales guidance to $1.89-$1.91 billion from $1.90-$1.94 billion. For 2008, it expects "modest" sales and operating income growth assuming relative stability in the business environment and raw material costs.
FEI Co. (FEIC) posts $0.31 vs. $0.18 third quarter EPS from continuing operations on 26% sales rise. Bookings in the quarter totaled $153.3 million, up 3% year-over-year. It sees fourth quarter sales of $147-$153 million and EPS of $0.23-$0.27.
Equinix (EQIX) posts $0.12 third quarter EPS vs. $0.18 loss per share a year ago, on 41% sales rise. As previously announced, it sees 2007 revenue of $416-$417.5 million, including approximately $38 million anticipated from Europe. For 2008, it sees revenue of $625-$640 million, including $150-$160 million anticipated from Europe.
Wyndham Worldwide (WYN) posts $0.75, vs. $0.56 a year ago, third quarter adjusted EPS on 16% revenue rise. Based on third quarter performance, sees $2.02-$2.13 2007 adjusted EPS on $43.4-$4.48 billion in revenue. For 2008 it forecasts revenue of $4.8-$4.9 billion.