Movers: Costco, Yahoo, WaMu, Boeing, EMC, VMware
Costco Wholesale (COST) sees fourth quarter EPS well below current First Call consensus estimate of $1.00. S&P cuts estimates, target; reiterates hold. JP Morgan downgrades to neutral from overweight.
Yahoo (YHOO) posts $0.10, vs. $0.12 a year ago, second quarter non-GAAP EPS as higher operating expenses offset 5.9% higher revenues. S&P reiterates hold.
Washington Mutual (WM) reports, excluding $3.24 per share reduction to earnings due to capital issuance, $3.34 second quarter loss per share, vs. EPS of $0.92 a year ago. It expects remaining cumulative losses in its residential mortgage portfolios to be toward upper end of range it disclosed in April. Moody's places WM ratings under review for downgrade. DBRS downgrades Issuer and Seniro Debt ratings of WM to BBB from BBB (high).
Boeing (BA) posts $1.16 (including previously disclosed charge of $0.22), vs. $1.35, second quarter EPS on flat revenue. Results affected by previously disclosed charge for Airborne Early Warning & Control program, lower profitability due to mix and timing in Commercial Airplanes. It sees $5.70-$5.85 2008 EPS on $67-$68 billion revenue.
EMC Corp. (EMC) posts $0.24, vs. $0.20, second quarter non-GAAP EPS on 18% revenue rise. Sees 2008 non-GAAP EPS of $1.04 (excluding items).
VMware (VMW) posts $0.23, vs. $0.16, second quarter EPS on 54% revenue rise. Sees 42%-45% '08 revenue growth. Targets third quarter revenue of about $462-$468 million and GAAP operating margin of 11%-13%. Baird says guidance below consensus; cuts estimate, keeps neutral.
AT&T (T) posts $0.76, vs. $0.70, second quarter adjusted EPS on 4.7% revenue rise.
E*Trade Financial (ETFC) posts $0.24 second quarter loss from continuing operations, vs. $0.36 EPS, on 20% total revenue decline. Provision for loan losses increased by $85 million quarter-to-quarter, driven primarily by increase in home equity-related charge-offs. Total allowance for loan losses increased to $636 million, as provision exceeded charge-offs by $70 million during second quarter. ETFC increased its allowance for loan losses across all 3 categories of its loan portfolio. Says current economic environment may impede its expectations to return to profitability from continuing operations this year. S&P downgrades to sell from hold.
ADC Telecommunications (ADCT) currently expects sales from continuing operations for fiscal year 2008 to be in the range of $1.500-$1.520 billion, vs. previous guidance of $1.520-$1.540 billion. It sees third quarter sales 3%-5% lower than second quarter of fiscal year 2008, and fourth quarter sales to be around third quarter level. It sees fiscal year 2008 GAAP EPS from continuing operations of $0.18-$0.26. S&P downgrades to hold from buy. Baird downgrades to neutral from outperform.
C.H. Robinson Worldwide (CHRW) posts lower-than-expected $0.52, vs. $0.47, second quarter EPS on 23% revenue rise. Street was looking for $0.55. Says its truckload gross profit margins continue to be compressed in first part of July. S&P reiterates buy. JP Morgan downgrades to neutral from overweight
Whirlpool (WHR) posts better-than-expected $1.53, vs. $2.00, Q2 EPS as higher material and oil-related costs, lower U.S. industry unit volume, and an increase in restructuring costs offset 4.6% revenue rise. Continues to expect 2008 EPS from continuing operations of $7.00-$7.50. S&P maintains buy.
WellPoint (WLP) posts $1.44, vs. $1.35, second quarter EPS on 2.6% revenue rise. Now sees $5.42-$5.57 2008 EPS, including net realized investment losses of $0.06 per share. S&P reiterates sell.
Sterling Financial (STSA) posts better-than-expected $0.23, vs. $0.54, second quarter EPS as an increase in the provision for credit losses, higher non-interest expenses and other factors offset a 6% rise in net interest income.
Philadelphia Consolidated Holding (PHLY) agrees to be acquired by Tokio Marine Holdings (TKOMY) in a $4.7 billion deal. Terms: $61.50 cash per PHLY share. Separately, PHLY posts $0.73 vs. $1.27 second quarter EPS as higher loss and loss adj. expenses offset 5.8% revenue rise.
Intuitive Surgical (ISRG) posts $1.28, vs. $0.79, second quarter EPS on 56% revenue rise. S&P keeps buy.
Carter's (CRI) posts better-than-expected $0.10, vs. $0.13, second quarter adjusted operating EPS on 17% higher same-store sales, 4.8% higher total sales. S&P maintains hold.