Movers: Fannie Mae, McDonald's, Anadigics, Merrill Lynch, Sprint Nextel
Fannie Mae (FNM) posts $2.54 second quarter loss, vs. $1.86 EPS a year ago, as credit-related expenses (provision for credit losses plus foreclosed property expense) offset 5.0% revenue rise. Cites challenging housing and mortgage market conditions, and credit performance. Slashes $0.35 dividend to $0.05. Says core capital of $47 billion has exceeded regulatory requirements. S&P upgrades to hold from sell.
McDonald's (MCD) posts 8% increase in July global comp-sales, 16% increase in its systemwide sales for its worldwide restaurants. Posts 6.7% rise in July U.S. comp-sales. S&P reiterates hold.
Anadigics (ANAD) now expects third quarter sales to be in the range of $62-$65 million, net loss on GAAP basis to be about $0.08-$0.10. Cites a decrease in produce demand from its wireless handset customers. Also, says it will delay the previously announced acceleration of investment in wafer capacity plans in Kunshan, China. Morgan Keegan downgrades to market perform from outperform.
Smart Balance (SMBL) posts $0.02 Q2 loss, vs. $0.65 loss, on 13% higher sales (on operating basis). Street was looking for breakeven. Notes lower gross profit margin for Q2 2008 vs. year ago as rate of selling price increases lagged rate of commodity cost increases, also notes impact of higher trade and promotion costs. Says gross profit as a percent of net sales will be lower in 2008 vs. 0207 as pricing actions are expected to continue to trail rising input costs.
Sprint Nextel (S) says it is no longer pursuing the private placement of cumulative perpetual convertible preferred stock, remains committed to paying down debt and strengthening its balance sheet. Reiterates forecast for free cash flow to improve substantially in the second half.
Merrill Lynch (MER) announces that effective Jan. 15, 2009, and through Jan. 15, 2010, it will offer to buy at par auction rate securities sold by it to its retail clients.
Beazer Homes USA (BZH) posts $2.85 third quarter loss from continuing operations, vs. $3.09 loss as lower home construction and land sales expenses offset 40% revenue decline. Street was looking for a loss of $2.01.
Crocs (CROX) posts $0.03, vs. $0.58, second quarter EPS on slight revenue decline, narrowed gross profit. Reiterates that it expects 2008 revenue to be down modestly compared to 2007 levels, with EPS of about breakeven.
99 Cents Only Stores (NDN) posts $0.02 first quarter loss per share, vs. $0.04 EPS, on slightly lower same-store sales, 4.1% higher total sales. It says first quarter sales grew more slowly than anticipated.
Longs Drug Stores (LDG) posts 3.5% lower July same-store sales, 1.6% lower total retail drug store sales.
MBIA Inc. (MBI) posts $7.14, vs. $1.61, second quarter EPS. Notes second quarter 2008 results driven primarily by $3.3 billion in pre-tax unrealized gains on insured credit derivatives due to wider spreads on credit default swaps on MBIA Insurance Corp. It resumes share buyback.
Hormel Foods (HRL) expects third quarter EPS to be in the range of $0.37-$0.39, cites higher than expected feed and fuel input costs at its Jennie-O Turkey Store segment. In the fourth quarter, it expects to see continued EPS pressure at Jennie-O Turkey Store from higher input costs as birds fed with higher grain prices make their way through the system. Adjusts 2008 EPS guidance to $2.22-$2.28, vs. previous guidance of $2.30-$2.40. S&P cuts estimate, target, reiterates hold.
Lithia Motors (LAD) posts $0.10, vs. $0.50, EPS from continuing operations on 19% lower revenue. Street was looking for $0.07 EPS. Current quarter excludes after-tax adjustment for asset impairments of $243.4 million and a net loss from discontinued operations of $2.2 million. Separately, announces that it has completed the sale of its Issaquah Chevrolet franchise to BPP Automotive Group. The GM franchise represented about $23.5 million in annual revenue for LAD. S&P reiterates hold.
Cogent Communications Group (CCOI) posts $0.12 second quarter loss, vs. $0.19 loss, on 19% rise in net services revenues. Sees $0.10-$0.15 Q3 loss, $55 million net revenue. Widens $0.20-$0.30 2008 loss estimate to $0.50-$0.60 loss, lowers net service revenue of $225-$230 million to more than $218 million.
Bottomline Technologies (EPAY) posts $0.11, vs. $0.14, fourth quarter non-GAAP EPS despite 11% revenue rise.
Gibraltar Industries (ROCK) posts $0.67, vs. $0.43, second quarter EPS from continuing operations on 6% sales rise. Raises 2008 EPS guidance to $1.50-$1.65, vs. previous guidance of $1.05-$1.25. Baird upgrades to outperform from neutral.
Lifepoint Hospitals (LPNT) posts $0.57, vs. $0.23, second quarter EPS on 4.1% revenue rise. Updates 2008 EPS guidance to $2.55-$2.70.