Movers: Freddie Mac, Fannie Mae, Darden, Chico's, Big Lots
Freddie Mac (FRE) reports its total mortgage portfolio has increased at an annualized rate of 8.7% year-to-date and 4.2% in July.
Fannie Mae (FNM) reports that its gross mortgage portfolio grew at a compound annualized rate of 14.4% in July.
Darden Restaurants (DRI) expects first quarter EPS from continuing operations of $0.57-$0.59, including anticipated integration costs and purchase accounting adjustments (of about $0.03) related to its acquisition of RARE Hospitality in October 2007. Anticipates first quarter combined U.S. same-restaurant sales at Red Lobster, Olive Garden and LongHorn Steakhouse to decline 1.1%. Now expects combined full-year U.S. same-restaurant sales growth in fiscal year 2009 of flat to up 1%, total sales growth of 12-13%, EPS from continuing operations growth of 55-10%.
Chico's FAS (CHS) posts better-than-expected $0.04, vs. $0.22, second quarter EPS on 16% lower same-store sales, 7.1% lower total sales. Street was looking for $0.03. Although anticipates negative comps for the fall season, expects to see an improvement in trends and believes it will be profitable in the second half of fiscal year 2009.
Big Lots (BIG) posts $0.32, vs. $0.21, second quarter EPS from continuing operations on 2.8% same-store sales rise, 1.9% total sales rise. Sees $0.15-$0.19 third quarter EPS from continuing operations and $1.02-$1.09 for the fourth quarter. Raises fiscal year 2009 EPS from continuing operations guidance to $1.90-$2.00.
EOG Resources (EOG) and other natural gas producers are seen higher on worries about Hurricane Gustav and after Bernstein Research said outlook for natural gas prices is more favorable than the outlook for crude oil prices. Bernstein also upgrades EOG to outperform from underperform.
Daktronics (DAKT) posts $0.24, vs. $0.17 a year ago, first quarter EPS on 33% revenue rise. Says order for the quarter were up over 15%, not including the recently announced contract for the New Meadowlands Stadium, which is expected to exceed $45 million. All domestic business units benefited from order growth.
Sanderson Farms (SAFM) posts $0.18 third quarter loss per share, vs. $1.51 EPS a year ago, as weak economic conditions, higher fuel and feed costs offset 18% sales rise.
New York Times Co. (NYT) reports that July total revenues from continuing operations decreased 10.1%, while advertising revenues fell 16.2% and circulation revenues fell 0.5%.
Oppenheimer downgrades Broadcom (BRCM) to perform from outperform, sees deceleration beginning in the fourth quarter that could affect BRCM's multiple for several quarters.
Jefferies downgrades Marvell Technology Group (MRVL) to hold from buy.
Corinthian Colleges (COCO) posts $0.06 fourth quarter EPS from continuing operations, vs. $0.02 loss, on 18% revenue rise. Sees first quarter fiscal year 2009 start growth of 4%-6%, revenue of $285-$290 million and EPS of $0.06-$0.08, which pertains to continuing operations and excludes any charges.
Sees fiscal year 2009 start growth of 7%-9%, revenue of $1.21-$1.25 billion and EPS of $0.58-$0.63 from continuing operations, excluding charges.
Greenfield Online (SRVY) says its Board of Directors has determined that the takeover proposal it received from a Fortune 100 "strategic buyer," pursuant to which SRVY's stockholders would receive $17.50 per share in cash, constitutes a superior proposal to Quadrangle Group LLC's offer. The offer from the strategic buyer is not contingent on the receipt of financing.
American Eagle Outfitters (AEO) posts $0.29, vs. $0.37, second quarter EPS on 9% same-store sales drop, 2% total sales drop. Says August month-to-date same-store sales are down 6%. Sees third quarter EPS of $0.31-$0.36 vs. $0.45 last year, reflecting view that business environment remains challenging through the second half.
General Motors (GM) - Reuters reports that GM has received interest from two separate investors from the Gulf Arab region to buy its Hummer brand.
Rio Tinto PLC (RTP) posts $5.39, vs. $2.51, first half 2008 EPS on sharply higher consolidated sales revenue. Posts $6.91 billion, vs. $3.25 billion, first half 2008 net profit. Notes underlying earnings rose to $5.47 billion from $3.53 billion.
Smithfield Foods (SFD) posts $0.09 first quarter loss, vs. $0.41 EPS, as high input, sharply higher feed costs offset 20% revenue rise.
Anadarko Petroleum (APC) announces that its Board of Directors has authorized a share repurchase program of up to $5 billion. APC also says it plans on increasing its capital expenditures in 2009 and beyond to accelerate the value of its "substantial unbooked resource potential."
Coach (COH) announces that its Board of Directors has authorized the repurchase of up to $1 billion of its outstanding common stock by June 26, 2010.
Charming Shoppes (CHRS) announces that it has entered into a definitive agreement to sell its non-core misses apparel catalogs (collectively, "Crosstown Traders") to Orchard Brands, a portfolio company of Golden Gate Capital, for $35 million in cash. Also announces that it has entered into agreement for sale of the misses apparel catalog credit card receivables for about $40 million in cash to Alliance Data Systems Corp.