Movers: Boeing, Alcoa, International Paper, Costco, Chevron
Boeing (BA) announces six-month delay in its planned initial deliveries of the 787 Dreamliner due to continued challenges completing assembly of the first airplanes. It says deliveries of the strong-selling Dreamliner are now slated to begin in late November or December 2008, versus an original target of May 2008. First flight is now anticipated around the end of first quarter 2008.
Compellent Technologies (CML) rises 6.29 to 23.10 in its IPO of 6 million shares priced at $13.50 per share.
Alcoa (AA) posts lower-than-expected third quarter EPS from continuing operations of $0.64, vs. $0.62 a year ago, on 3.2% revenue decline. It cites the weakening U.S. dollar, higher petroleum costs, and market softness in North America. Its board increases authorization to repurchase shares to 25% of outstanding shares, up from previously authorized 10%. S&P cuts estimate; keeps hold. Bear Stearns cuts estimates.
International Paper (IP) says third quarter EPS will be less than analysts' consensus estimates due to lower land sales than previously estimated in the quarter. It continues to expect EPS will exceed the second quarter's $0.52.
Costco Wholesale (COST) posts $0.83, vs. $0.75 a year ago, fourth quarter EPS on 5% same-store sales rise and 3% total sales rise.
Chevron (CVX) says third quarter net income is expected to be "significantly below" the record $5.4 billion earned in the second quarter of 2007. It cites a sharp decline in refined-product margins for the downstream business and the impact of nonrecurring items.
Valero Energy (VLO) expects third quarter EPS from continuing operations of $1.30-$1.40, excluding special items. It notes lower throughput margins primarily due to substantially higher feedstock costs resulting from increased premiums for light sweet crude oils and narrower discounts for sour crude oils and other feedstocks.
Petsmart (PETM) sees third quarter same-store sales growth below original low-to-mid single digit forecast. It now sees $0.17-$0.20 third quarter EPS, which includes previously announced impact of $0.04 to exit the State Line Tack business. It now sees fiscal year 2008 EPS of $2.02-$2.07 (down from previous view of $2.08-$2.10).
Monsanto Company (MON) posts $0.39 fourth quarter loss per share, vs. $0.27 loss a year ago on reported basis, as certain charges offset 13% total sales rise. It sees fiscal year 2008 EPS guidance, both on reported and ongoing basis, is in the range of $2.20-$2.40.
IRobot (IRBT) sees revenue for the third quarter between $63-$64 million, citing slower than expected production ramp up by new contract manufacturer.
EBay (EBAY) says it has extended the ability of its community members to connect through commerce with the launch of eBay Neighborhoods, a collection of micro-communities built around common interests and passions.
MGM Mirage (MGM) bBoard approves development of a major resort casino project at Renaissance Pointe in Atlantic City, New Jersey. The new resort will have a budget in the $4.5-$5 billion range, not including value of the land and associated costs.
J.C. Flowers & Co., on behalf of itself and its partners Bank of America (BAC), JP Morgan (JPM), and Friedman Fleischer and Lowe, announce that its offer to amend the terms of the proposed acquisition of SLM Corp. (SLM) was allowed to expire without discussion
Cadbury Schweppes (CSG) says Cadbury Schweppes Americas Beverages will become an independent company following completion of proposed spin-off from CSG.
Stanley Furniture (STLY) plans to cut 250 associates over next two to four months. It plans to record pre-tax restructure and impairment charge of about $6 million, or $0.39 per share, with earnings impact expected to occur in the fourth quarter of 2007 and first quarter of 2008.
Shaw Group (SGR) posts $0.67 third quarter EPS, vs. $0.21 loss a year ago, on 31% revenue rise.
Helen of Troy (HELE) posts $0.56, vs. $0.35 a year ago, second quarter EPS on 7.3% sales rise. It cuts $680-$690 million fiscal year 2008 sales guidance to $660-$680 million, revises $2.00-plus EPS guidance to $1.90-$2.10, which includes $0.24 from tax settlement.
99 Cents Only Stores (NDN) posts 6.1% higher second quarter same-store sales, 11% higher total sales. But due to short term operating margin and execution issues, says it will report a loss in the second quarter.