Movers: Sears, Home Depot, Alcoa, Gemstar-TV Guide
Sears Holdings (SHLD) says Kmart same-store sales decreased 3.9%, Sears domestic same-store sales decreased 4.0%. It says if current sales trends continue through the rest of the second quarter, it sees $1.06-$1.32 second-quarter EPS. The retailer sets an additional $1 billion stock buyback.
Home Depot (HD) says that due to the announced sale of HD Supply and weaker conditions in housing market, it now sees fiscal year 2008 EPS down 15%-18% and same-stores sales down in the mid-single digits. The retailer sees $2.30-$2.36 fiscal year 2008 EPS.
Alcoa (AA) posts second-quarter EPS from continuing operations of $0.81, vs. $0.85 a year ago, as higher costs and expenses offset a 3.4% revenue rise. S&P cuts estimates and reiterates sell. The stock is also trading on LBO speculation, according to CNBC.
JP Morgan upgrades General Motors (GM) and Ford (F) to overweight; adds GM to its Focus List.
D.R. Horton (DHI) expects to post a third-quarter loss as the "challenging" housing market continues. It posts third-quarter net sales of 8,559 homes ($2.0 billion), vs. 14,316 homes ($3.8 billion) for the year-ago period. It says inventory levels of new and existing homes remained high.
Gemstar-TV Guide (GMST) board authorizes the company and its advisors to explore strategic alternatives to maximize shareholder value, which may include a sale of the company.
WD-40 (WDFC) posts third-quarter EPS of $0.44, vs. $0.42 a year ago, on a 6.2% revenue rise. It sees $1.70-$1.75 fiscal year 2007 EPS on 7%-9% revenue growth, which reflects the impact of the company's move to open direct operations in China. S&P maintains hold opinion.
DepoMed (DEPO) plunges 59% after the company says its experimental drug gabapentin, intended to treat nerve pain caused by shingles, failed to meet the main goal of a Phase 3 clinical trial.
Scotts Miracle-Gro (SMG) rises after JP Morgan upgrades to overweight from neutral.
Cheesecake Factory (CAKE) posts 16% higher second-quarter total revenues, 1.1% higher comp restaurant sales. It maintains its new restaurant opening target for fiscal year 2007 of as many as 21 new restaurants.
Chattem (CHTT) posts second-quarter EPS of $0.77 (including SFAS 123R, other item), vs. $0.52 a year ago, on a 42% revenue rise. It raises fiscal year 2007 EPS forecast to $3.00-$3.19 (excluding SFAS 123R, other item).
International Speedway (ISCA) posts second-quarter EPS of $0.35, vs. $0.58 a year ago, despite a 5.5% revenue rise. It revises fiscal year 2007 guidance to $810-$820 million revenue and $2.80-$2.90 non-GAAP EPS. It sets $100 million increase to its share buyback program.
Physicians Formula (FACE) falls after the cosmetics maker widens its $0.01-$0.04 second-quarter loss forecast to $0.04-$0.07 loss on 5%-9% sales drop. It cuts $0.67-$0.72 2007 EPS forecast to $0.58-$0.67.
Pepsi Bottling Group (PBG) posts second-quarter EPS of $0.70, vs. $0.61 a year ago, on 7.1% revenue rise. It raises $1.90-$1.98 2007 adjusted EPS guidance to $2.02-$2.07.
Akamai Technologies (AKAM) will be added to the S&P 500 index after close of trading on July 11, replacing Biomet, which is being acquired.