Movers: HP, 3Com, PepsiCo, AT&T, Crocs, KKR Financial
Hewlett-Packard (HPQ) posts $0.86, vs. $0.65 a year ago, first quarter non-GAAP EPS on 13% revenue rise. The company raises its outlook: it now sees second quarter revenue of $27.7-$27.9 billion and non-GAAP EPS of $0.83-$0.84; fiscal year 2008 revenue of $113.5-$114 billion and EPS of $3.50-$3.54. It cites anticipated cost reductions and share gains in key markets.
3Com (COMS) and affiliates of Bain Capital Partners, LLC and Huawei Technologies have withdrawn their joint filing to Committee on Foreign Investment in U.S. (CFIUS) concerning parties' proposed merger deal. The parties remain committed to continuing talks. On Sept. 28, 2007, COMS Board of Directors unanimously approved a definitive merger agreement under which the company would be acquired by affiliates of Bain Capital Partners, LLC for about $2.2 billion in cash.
AT&T (T) falls after Credit Suisse downgrades Telecom Services group to market weight from overweight; cuts AT&T and Verizon (VZ) to neutral from outperform. It cites potential wireless price war and macroeconomic weakness
TJX Companies (TJX) posts $0.64, vs. $0.52 a year ago, fourth qurarter adjusted EPS from continuing operations on 4% same-store sales rise, 7.7% total sales rise. It sees $0.40-$0.41 first quarter EPS from continuing operations, $2.20-$2.25 for fiscal year 2009. S&P maintains buy.
Encysive Pharmaceuticals (ENCY) agrees to be acquired by Pfizer (PFE) in $195 million deal. Terms: $2.35 for each ENCY share.
KKR Financial Holdings LLC (KFN) falls after the Financial Times reports that KKR, the listed affiliate of private equity group Kohlberg Kravis Roberts & Co, has delayed repayment of billions of dollars of commercial paper for the second time and begun a new round of talks with creditors.
PepsiCo (PEP) expects 2008 EPS of at least $3.72 (unchanged from its previous guidance), 2008 cash from operating activities to be approximately $7.6 billion, capital spending to be about $2.7 billion. PEP also plans to repurchase about $4.3 billion in shares during 2008.
Crocs (CROX) posts $0.45, vs. $0.26 a year ago, fourth quarter EPS on 99% revenue rise. Gross profit was 56% of revenue, vs. 57.7% in year ago quarter; margins hurt by air-freight costs. Sees first half 2008 revenue rise of about 50%; reiterates previously issued growth targets for 2008 and expects revenues of approximately $1.16 billion and EPS of $2.70.
Whole Foods Market (WFMI) posts $0.28 (including $0.08 negative impact from Wild Oats deal), vs. $0.38 a year ago, first quarter EPS as narrowed gross margin offset 9.3% higher same-store sales, 31% higher total sales. Reaffirms fiscal year 2008 comp guidance of 7.5%-9.5% growth. S&P keeps buy; cuts fiscal year 2008 EPS estimate.
DealerTrack Holdings (TRAK) posts $0.25, vs. $0.23 a year ago, fourth quarter cash EPS on 33% revenue rise. It sees 2008 revenue of $270-$276 million, $1.14-$1.18 cash EPS, which is below Street's $1.29. Guidance includes about $0.10 per share cost related to outstanding patent litigation.
Garmin Ltd. (GRMN) posts $1.39, vs. $0.82 a year ago, fourth quarter GAAP EPS on 99% rise in revenue. It expects 2008 EPS to exceed $4.40, overall revenue to exceed $4.5 billion. Sets 5 million share buyback.
Kindred Healthcare (KND) posts $0.46 (including $0.05 net charges), vs.
$0.54 a year ago, fourth quarter EPS on 5.8% revenue decline. Reaffirms 2008 guidance of $1.25-$1.35 EPS, sees about $4.2 billion revenue. Expects $0.22-$0.27 first quarter EPS.
Limelight Networks (LLNW) posts $0.08 fourth quarter GAAP loss per share, vs. $0.25 loss a year ago, on 32% revenue rise. Posts $4.9 million adjusted EBITDA, $0.01 non-GAAP EPS (basic). It sees first quarter revenue of $30-$32 million, non-GAAP EPS of $0.02-$0.03 (basic). It sees first quarter adjusted EBITDA of $2-$4 million. Oppenheimer reportedly downgrades to perform from outperform.
Watson Pharmaceuticals (WPI) posts $0.34 fourth quarter GAAP EPS, vs. $4.80 loss per share a year ago, on 1.0% rise in revenue. Sees $1.68-$1.78 2008 GAAP EPS on net revenue of $2.5 billion.
A.C. Moore Arts & Crafts (ACMR) posts 15% lower fourth quarter same-store sales, 10% total sales drop. Says it in process of finalizing its 2007 financial information and prior financial statements requiring restatement.
Sharper Image (SHRP) files for bankruptcy court protection.
Cyberonics (CYBX) posts $0.04 third quarter loss per share, vs. $0.76 loss a year ago, despite 7.4% revenue drop. Sets 1 million share buyback.
Tween Brands (TWB) posts $1.00 (including charge), vs. $0.86 fourth quarter EPS a year ago, on 8% same-store sales rise, 16% total sales rise. Sees first quarter EPS of $0.35-$0.40. CFO Paul Carbone resigns.
Transocean (RIG) posts $4.17, vs. $2.92 a year ago, fourth quarter EPS on 75% operating revenue rise. Notes reported results include about one month from GlobalSantaFe's operations and the impact of recording GlobalSantaFe's assets and liabilities at fair market value, as required by GAAP. Separately announces one of its drillships received a 3-year contract extension from Anadarko Petroleum, commencing in June 2010. Estimated contract revenues that could be generated over the contract period are about $586 million.
Suntech Power Holdings (STP) posts $0.29, vs.$0.20 a year ago, fourth quarter GAAP EPADS on 82% revenue rise. It sees first quarter revenues of $370-$380 million, non-GAAP consolidated gross margin slightly higher than fourth quarter 2007, which takes into account seasonally slow quarter due to shorter month of February, Chinese New Year holidays, which were somewhat worsened by severe weather conditions.
Nutrisystem (NTRI) posts $0.33, vs. $0.54 a year ago, fourth quarter EPS from continuing operations as product transition costs, stock-based compensation expenses offset 3% revenue rise. Sees first quarter adjusted EBITDA of $18-$22 million on revenue of $200-$210 million, 2008 adjusted EBITDA of $125-$135 million on revenue of $690-$710 million. Broadpoint reportedly downgrades to neutral from buy.
Chiquita Brands International (CQB) posts $0.67 fourth quarter loss per share, vs. $0.98 loss a year ago, on 6% sales rise. It expects improved year-over-year performance in sales and operating income in 2008, primarily due to contract and market price increases, including fuel-related surcharges, and the benefits of its business restructuring.
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