From Standard & Poor's Equity ResearchGOLDMAN SAYS CLOROX'S SALES BEAT ESTIMATES
Goldman Sachs analyst Andrew Sawyer says Clorox's (CLX) EPS fell short of estimates, sales were better-than-expected and gross margin was off. He says the stock is having a relief rally today after falling nearly 20% year-to-date.
Sawyer believes there are three points driving upside in stock today: 1) sales up 5% excluding acquisition, which better than feared; 2) company affirmed fiscal year 2008 guidance of $3.20-$2.28, vs. $3.27 consensus, and 3) the company provided initial $3.75-$3.90 fiscal year 2009 guidance, vs. $3.88 consensus.
He notes there were widespread fears that fiscal year 2009 estimates would have to come down more due to commodity inflation. Despite relief, he would still shy away from stock due to relatively slow sales growth and risk from rising commodities. He rates the stock neutral.
ROTH DOWNGRADES JDS UNIPHASE TO HOLD FROM BUY
Roth analyst Dave Kang says JDS Uniphase (JDSU) posts third quarter revenue of $383.9 million, non-GAAP EPS of $0.14 on tax benefit. He notes EPS would have been $0.11 without it. He says these results are below consensus estimates of $394.4 million and $0.14.
Kang points out that Test & Measurement revenue fell 14.3% quarter-to-quarter, due to several order pushouts. Also, non-GAAP gross margin declined to 42.5% from 46.3% in the second quarter.
He says the company guided for fourth quarter sales to be about $381-$403 million; consensus was looking for $405.8 million. He sees JDSU being hurt by weak economy and latest acquisitions of Westover's Fiber Division and ABNH being dilutive in the near term.
He cuts $0.60 fiscal year 2008 (June) EPS estimate to $0.55, $0.82 fiscal year 2009 to $0.65. He cuts price target to 15.60 from 18.
WEDBUSH MORGAN DOWNGRADES ELIZABETH ARDEN TO HOLD FROM BUY
Wedbush Morgan analyst Rommel Dionisio says Elizabeth Arden's (RDEN) third quarter results missed estimates. He notes overall fundamental momentum in North American and U.K. slowed considerably, likely due to weaker-than-expected fragrance sales.
With about two-thirds of full-year EPS coming from the December quarter, he believes current product pipeline won't be enough to reverse RDEN's slowing momentum. He notes the company's biggest product launch planned thus far for this year's holiday season is the Rocawear men's fragrance, which he does not see generating the same resonance with consumers as Britney Spears and Hilary Duff women's fragrances in prior years.
He cuts $1.68 fiscal year 2008 (June) EPS estimate to $1.33, $1.90 fiscal year 2009 to $1.67 and 23 price target to 16.