Movers: Hewlett-Packard, AMR, Border's, SLM, Moody's, Intuit
Hewlett-Packard (HPQ) posts $0.87, vs. $0.70 a year ago, second quarter non-GAAP EPS on 11% revenue rise. It sees third quarter revenue of $27.3-$27.4 billion, non-GAAP EPS of $0.82-$0.83; raises $113.5-$114.0 billion fiscal year 2008 revenue guidance to $114.2-$114.4 billion and sees fiscal year 2008 non-GAAP EPS of $3.54-$3.58. S&P reiterates buy. Banc of America cuts target.
AMR Corp. (AMR) announces significant reductions to its 2008 domestic flight schedule, including a fourth quarter mainline domestic capacity reduction of 11% to 12% from the previous year. Plans to retire 75 mainline, regional aircraft and unveil several revenue growth initiatives, as it responds to record fuel prices, growing concerns about the economy and a difficult competitive environment.
Borders Group (BGP) jumps 11% after the Wall Street Journal reported that its larger rival Barnes & Noble (BKS) is studying a possible bid.
SLM Corp. (SLM) is up 1.62 to 22.40 after the Wall Street Journal reports: Hoping to bolster a shaky student loan market, the Bush Administration will use U.S. Treasury funds to buy loans from private lenders and invest in special loan-backed trusts. With students and parents beginning to borrow for the 2008-2009 school year, the one-year effort is designed to pump liquidity into the student loan market and persuade private lenders to continue participating in the government's Federal Family Education Loan program, a crucial source of financial aid for many college students.
Moody's (MCO) shares fall nearly 9% after The Financial Times reports that the ratings agency mistakenly gave triple-A ratings to billions of dollars worth of debt products but didn't lower the ratings after a computer bug was discovered in early 2007. Moody's computer glitch involved a relatively new instrument, called constant-proportion debt obligations, according to media reports. Moody's said it was examining its ratings policies in European CPDOs in response to the story.
Intuit (INTU) announced record third-quarter revenue of $1.3 billion, a 15% increase over the year-ago quarter, and said earnings per share were up 28%. It said growth was driven by excellent performance in the consumer and professional tax segments.
Time Warner Cable (TWC) and Time Warner (TWX) agree to separate. TWX to exchange its 12.4% interest in TWC's TW NY Cable Holding for 80 million newly issued shares of TWC, upping its stake in TWC from 84% to 85.2%. TWC declares one-time dividend of $10.27 per TWC share; TWX to receive $9.25B from this dividend. TWX will convert its TWC Class B common shares into TWC common shares on one-for-one basis, and distribute its entire ownership stake in TWC to TWX stockholders. S&P maintains strong buy.
Analog Devices (ADI) posts $0.45, vs. $0.37 a year ago, second quarter EPS on 8.7% revenue rise. Sees third quarter revenue flat to up 3% sequentially, $0.43-$0.45 EPS from continuing operations.
Phillips-Van Heusen (PVH) posts better-than-expected $0.90, vs. $0.92, first quarter EPS on 6% higher revenues. Notes the latest quarter included $0.08 per share of start-up costs associated with PVH's Timberland wholesale sportswear business and Calvin Klein specialty retail stores. Sees second quarter EPS of $0.63-$0.66 on 4%-6% higher sales of $575-$585 million. For fiscal year 2009 (January) ups $3.30-$3.40 EPS guidance to $3.32-$3.41, reflecting PVH's "cautious view of 2008" and its "belief that the current difficult economic environment will continue throughout the year."
BJ's Wholesale Club (BJ) posts $0.29, vs. $0.21, first quarter EPS on 9.6% higher same-club sales, 12% higher total sales. Sees fiscal year 2009 EPS of $2.04-$2.14 vs. prior guidance of $1.98-$2.08.
Talbots (TLB) posts $0.03, vs. $0.10, first quarter GAAP EPS on 10% lower same-store sales, 5.4% lower total sales. Posts $0.21, vs. $0.14, first quarter EPS from ongoing core operations. Street was looking for $0.12.
Ross Stores (ROST) posts $0.60, vs. $0.48, first quarter EPS on 3% higher same-store sales, 10% higher total sales. Sees $0.43-$0.47 second quarter EPS on 1%-3% rise in same-store sales; now sees $2.19-$2.29 fiscal year 2009 EPS.
Charming Shoppes (CHRS) posts $0.01, vs. $0.22, first quarter EPS from continuing operations on 8% sales drop. Sees $0.02 second quarter loss to breakeven on $625-$640 million net sales.
Brown Shoe (BWS) posts $0.17, vs. $0.22, first quarter EPS on 2.1% lower sales.
McClatchy (MNI) says consolidated revenues in April 2008 decreased 14.6% and advertising revenues fell 14.8% compared with revenues in April 2007. Notes declines in print advertising were partially offset by a gain in online advertising revenues.
Solarfun Power Holdings (SOLF) posts RMB 2.21 first quarter earnings per ADS, vs. RMB 0.05 loss per ADS, on sharp revenue rise. Posts $0.32 earnings per ADS. Raises its previous guidance of 160 MW in shipments to a range of 160-180 MW.