Movers: Mosaic, Con-Way, Marriott, Micron
Mosaic Company (MOS) posts lower-than-expected $2.65, vs. $0.69, first quarter EPS on sharply higher sales. Street was looking for $2.94. Company notes momentum has slowed in Phosphates business near-term due to soft seasonal demand, higher customer inventory levels, falling raw material costs. Merrill reportedly downgrades to underperform from buy.
Con-Way (CNW) cuts $3.00-$3.40 2008 EPS guidance to $2.60-$2.80. Cites weak demand for freight transportation services. S&P reiterates hold; cuts estimates and target. Stifel downgrades to hold.
Marriott International (MAR) posts $0.26, vs. $0.31 a year ago, third quarter EPS from continuing operations on 1% lower comparable company-operated REVPAR in North America (NA), 1% higher total revenue. Posts $0.34 third quarter adjusted EPS from continuing operations. Street was looking for $0.32. Given current soft economic climate in NA, weakening markets outside NA, expects worldwide and NA REVPAR to decline. Also expects worldwide comparable systemwide REVPAR to be flat for 2009, comparable company-operated REVPAR in NA at best to decline 3%. Sees $1.48-$1.60 fiscal year 2009.
Micron Technology (MU) posts $0.27 fourth quarter non-GAAP loss per share, vs. $0.18 loss a year ago, on despite slightly higher net sales. Implements 20% reduction in salary compensation for MU senior executives.
Take-Two Interactive Software (TTWO) says its board has determined it is in the best interest of holders to continue operating and building the company as an independent company.
Brush Engineered Materials (BW) expects 2008 EPS of $1.15-$1.30, below Street estimates. Says it has seen new widespread weakness in global consumer electronics, telecom and automotive markets which is affecting expected demand from both Specialty Engineered Alloys and Engineered Materials Systems segments.
Constellation Brands (STZ) posts $0.45, vs. $0.33 a year ago, second quarter EPS on 7.2% higher net sales. Sees $1.68-$1.76 fiscal year 2009 EPS.
Embarq (EQ), the fourth-largest U.S. phone company by customers, put itself up for sale in recent weeks, but its plans were thwarted when the credit crunch made it difficult for potential acquirers to raise capital, people familiar with the situation said: WSJ. S&P maintains buy.
Standard Microsystems (SMSC) posts $0.38, vs. $0.39, second quarter GAAP EPS on slight revenue decline. Posts $0.46 non-GAAP EPS, which is a penny below consensus. Says current financial market crisis has caused a sharp drop in visibility and uncertainty in demand planning for the H2 fiscal year 2009. Names Christine King as President, CEO, effective Oct. 20, succeeding Steven Bilodeau, who is retiring.
Molex (MOLX) now expects first quarter revenue of $840-$845 million, compared with its prior outlook of $860-$880 million, EPS of $0.25-$0.29 (including estimated restructuring charge of approximately $0.06) vs. prior outlook of $0.35-$0.40 (including $0.01 estimated restructuring charge). Cites reduced demand primarily from the telecom/data infrastructure and automotive markets. Notes industrial, consumer electronic markets are also below company's original outlook.
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