Stocks in the news Tuesday
From Standard & Poor's Equity ResearchFord Motor (F) agrees to sell a portion of its ownership stake in Mazda Motor Corp., reducing its ownership ration from 33.4% to just over 13%. Sales of Mazda shares will net Ford about $540 million.
Hewlett-Packard (HPQ) announces preliminary results for fourth quarter, including non-GAAP EPS of $1.03 on revenue of $33.6 billion, a year-over-year increase of 19% (16% when adjusted for currency). Excluding the impact of the EDS acquisition, HPQ's revenue grew 5% (2% adjusted for forex). Street was looking for fourth quarter EPS of $1.00. Sees first quarter non-GAAP EPS of $0.93-$0.95 on revenue of $32-$32.5 billion, $3.88-$4.03 fiscal year 2009 non-GAAP EPS on rev. of $127.5-$130 billion. S&P reiterates strong buy.
Yahoo (YHOO) announces its Board of Directors has initiated a search for a new CEO, as Jerry Yang, co-Founder of YHOO, has decided to return to his former role as Chief Yahoo! upon the appointment of his successor as CEO, and he will also continue to serve on the Board. S&P reiterates buy. Needham maintains hold.
Home Depot (HD) posts $0.45, vs. $0.60 a year ago, third quarter EPS on 8.3% same-store sales drop, 6.2% total sales drop. Street was looking for $0.38-$0.39. Given continued softness in housing, home improvement markets, negative macro economic conditions, co. now believes fiscal year 2009 sales could be down as much as 8%; expects EPS from continuing operations will decline by about 24%, consistent with previous guidance.
Saks (SKS) posts $0.31 third quarter loss (includes $0.18 in charges for after-tax items), vs. $0.14 EPS (includes$0.03 in charges for after-tax items), on 11.5% lower comparable-store sales, 12.3% lower total sales.
Medtronic (MDT) posts $0.67, vs. $0.58, second quarter non-GAAP EPS on 12% revenue rise. Street was looking for $0.71. MDT says that based upon year to date results and anticipated $300-$400 million negative revenue impact in the second half of fiscal year 2009 from current exchange rates, now projects fiscal year 2009 revenue of $14.6-$15 billion, adjusted from previous guidance of $15-$15.5 billion. Now sees fiscal year 2009 EPS of $2.90-$2.98, down from previous view of $2.94-$3.02.
ON Semiconductor (ONNN) says it's withdrawing from its joint proposal with Microchip Technology (MCHP) to acquire Atmel (ATML). ONNN cites unforeseen deterioration in the semiconductor market since it announced its proposal, as well as unprecedented weakness in the financial markets.
MEMC Electronic Materials (WFR) says it now anticipates fourth quarter revenue to be about $500 million, plus or minus $25 million, with gross margin of approximately 48%, plus or minus two percentage points, and operating expenses of approximately $27 million, vs. previous guidance of $540-$600 million in revenue with gross margin of over 50% and operating expenses of approximately $41 million. S&P cuts estimates, target; keeps hold.
Corning (GLW) Down 1.09 to 7.92 GLW expects fourth quarter sales to be below its guidance range of $1.1B-$1.2B, and EPS to be at low end or below its guidance range of $0.20-$0.28. Says retail environment and the LCD supply chain are both extremely uncertain. As a result, since display business is a significant contributor to GLW's overall results, co. is unable to offer revised guidance for fourth quarter and full-year '09 at this time.
Host Hotels & Resorts (HST) says that as result of worsening economy, which is significantly slowing travel, revises fourth quarter and full-year 2008 comparable hotel RevPAR guidance, and withdrawing its remaining 2008 guidance. Although market conditions continue to be volatile, HST expects comparable hotel RevPAR will decline 9%-11% in fourth quarter and decline about 3% for full year.
Chiquita Brands International (CQB) rises after BB&T Capital upgrades CQB to buy from hold.
DHT Maritime (DHT) posts $0.31, vs. $0.23, third quarter EPS on 55% revenue rise. Raises quarterly dividend by $0.05 to $0.30.
Alpha Natural Resources (ANR) and Cliffs Natural Resources (CLF) terminate previously announced definitive merger agreement, under which CLF would have acquired all outstanding shares of ANR. CLF will pay ANR $70 million. ANR will dismiss litigation filed against CLF, with prejudice.
Pepsi Bottling Group (PBG) announces multiyear initiative designed to enhance the company's operating capabilities. Says restructuring program expected to result in annualized pre-tax savings of $150-$160 million upon completion. Says compay now anticipates comparable EPS of $2.20-$2.26, due primarily to recent economic events, namely weakening of forex, higher than expected interest cost on co.'s recent bond issuance.
Genentech (DNA) says it has issued a Dear Healthcare Provider letter to inform dermatologists and neurologists of a 2nd case of progressive multifocal leukoencephalopathy (PML) which resulted in the death of a 73-year old woman who had received Raptiva (efalizumab) for approximately four years for treatment of chronic plaque psoriasis. DNA is working with FDA to determine appropriate next steps.