Movers: Wal-Mart, Home Depot, TJX, Goldman Sachs, Corning, Apple
Wal-Mart Stores (WMT) posts $0.70, vs. $0.62 a year ago, third quarter EPS from continuing operations on 1.5% total U.S. same-store sale rise (with fuel), 8.8% total company sales rise. It sees fourth quarter U.S. same-store store sales flat to up 2%, $0.99-$1.03 EPS from continuing operations, resulting in full year EPS of $3.13-$3.17 from continuing operations.
Home Depot (HD) posts $0.59, vs. $0.65 a year ago, third quarter EPS from continuing operations on 6.2% same-store sales drop, 3.5% total sales drop. It sees fiscal year 2008 EPS from continuing operations down by as much as 11% from last year.
TJX Companies (TJX) posts $0.54, vs. $0.48 a year ago, third quarter EPS from continuing operations on 3% same-store sales rise, 6% higher total sales. It raises fourth quarter EPS from continuing operations guidance to $0.58-$0.60, reflects the benefit of favorable foreign exchange rates, incl. $0.01 charge related to unauthorized computer intrusion.
Goldman Sachs Group (GS) shares are higher on reports that the company's CEO said at a New York financial services conference that GS maintains a short position in the sub-prime mortgage market and won't be taking any significant charges to write-off losses on its position.
Apple (AAPL) shares are seen higher on reports that China Mobil CEO is in talks with Apple to bring iPhone to China.
Corning (GLW) raises guidance for fourth quarter EPS, before special items, to $0.38-$0.40 from previous $0.36-$0.38 forecast. It now sees fourth quarter sales of $1.53-$1.56 billion, compared with prior guidance of $1.50-$1.55 billion. It attributes increased guidance to strong October results, November orders and operating performance in its Display Technologies business. S&P maintains strong buy.
Vodafone Group PLC (VOD) posts a 9% increase in first half fiscal year 2008 group revenue, adjusted earnings per share rise of 7.4%. It raises fiscal year 2008 group revenue, adjujsted operating profit, free cash flow guidance. It cites improved operational performance, better revenue generation, lower payments this year related to long standing tax issues.
Rio Tinto PLC (RTP) rises after S&P upgrades to hold from sell. S&P analyst Leo Larkin cites his expectation that BHP Billiton will sweeten its unsolicited offer to acquire RTP, even though S&P does not expect competing bids.
Bob Evans Farms (BOBE) posts $0.4,5 vs. $0.37 a year ago, second quarter EPS on 0.7% higher same-store sales, 3.3% higher total sales. It reaffirms fiscal year 2008 EPS forecast of $1.77-$1.84. KeyBanc Capital raises estimate, reiterates hold.
Bidz.com (BIDZ) posts $0.14, vs. $0.04 a year ago, third quarter EPS on 48% revenue rise. It sees fourth quarter revenue of $56-$58 million. It raises 2007 revenue guidance to $180-$182 million, gross margin expectation to about 27%-28%. It now sees 2007 pre-tax income of $18-$18.5 million. It sets 2008 guidance of $225-$230 million revenue and $0.47-$0.51 fully-taxed GAAP EPS. ThinkEquity raises target, keeps buy.
Countrywide Financial (CFC) says mortgage loan funding for the month of Oct. 2007 totaled $22 billion, a 48% decline from a year ago, average daily mortgage loan application activity decreased 34%, mortgage loan pipeline was $41 billion, vs. $61 billion for same period last year.
Bank of New York Mellon (BK) agrees to acquire ARX Capital Management, a leading independent asset mgmt business headquartered in Rio de Janeiro, Brazil, which has more than $2.6 billion in assets under management.
CIBC World upgrades Yahoo (YHOO) to sector outperform from sector perform.
In response to a letter sent from Sun Capital Securities Group, LLC which reiterated same terms of Sun's Sept. 18, 2007 proposal, Kellwood (KWD) concluded that Sun's unsolicited proposal significantly undervalues strength of KWD's expanded portfolio of brands and the company's opportunities for sales and EPS growth. KWD's Board therefore unanimously determined that the proposal was not in the best interests of KWD and its shareholders.
Baxter International (BAX) raises quarterly dividend by 30% to $0.2175.
ITT Corp. (ITT) sees $3.95-$4.10 2008 EPS (excluding special items), revenue in range of $9.5-$9.7 billion, buoyed by balanced organic growth, international Mortion Control acquisition.
US Bioenergy (USBE) posts better-than-expected $0.15 third quarter EPS vs. $0.12 in the second quarter.
Adobe Systems (ADBE) appoints its current president and COO, Shantanu Narayen, as its president and CEO, effective Dec. 1, 2007. Narayen replaces Adobe CEO Bruce Chizen. It expects fourth quarter revenue to be near high end of its target range of $860-$890 million. For fiscal year 2008, sees annual revenue growth of about 13%.