Movers: Apple, Honda, Morgan Stanley, Adobe, Xilinx
Apple (AAPL) falls 6.63 to 88.80 after the company says this year is the last year the company will exhibit at Macworld Expo, and that Philip Schiller, Apple's senior vice president of Worldwide Product Marketing, will deliver the opening keynote for this year's conference. Oppenheimer downgrades to perform from outperform. S&P reiterates strong buy.
Honda Motor (HMC) cuts 550 billion yen fiscal year 2009 operating income forecast to 180 billion yen, 485 billion yen net income forecast to 185 billion yen (both consolidated). Cuts third quarter dividend by 50% from 22 yen to 11 yen.
Morgan Stanley (MS) posts $2.24 fourth quarter loss from continuing operations, vs. $3.61 loss a year ago, on net revenues of $1.8 billion, compared with negative $0.4 billion in last year's fourth quarter. Street was looking for fourth quarter loss of $0.34. Notes Asset Management experienced a pre-tax loss of $1.8 billion, driven primarily by markdowns in principal investments and lower assets under management.
Adobe Systems (ADBE) posts $0.46, vs. $0.38 a year ago, fourth quarter GAAP EPS on slight revenue rise. Posts non-GAAP EPS of $0.60, vs. Street's view of $0.58. Sees first quarter GAAP EPS of $0.30-$0.35 on revenue of $800-$850 million.
Xilinx (XLNX) sees third quarter sequential sales decline of about 6%-10% due to much weaker-than-anticipated sales in the month of December from a broad base of end markets. This is a revision from previous sales guidance of up 2% to down 2% sequentially.
General Mills (GIS) posts $1.09, vs. $1.14, second quarter EPS on 8.3% sales rise. Notes second quarter fiscal year 2009 including $0.49 net reduction related to mark-to-market valuation, $0.22 gain from the sale of Pop Secret. Reaffirms 2009 input cost inflation estimate of 9%, says forex translation now expected to reduce fiscal year 2009 reported sales, EPS for the year. Despite this, raises $3.81-$3.85 fiscal year 2009 EPS guidance to $3.83-$3.87 before any impact from mark-to-market valuation and excluding the Pop Secret gain.
Newell Rubbermaid (NWL) reduces guidance for fourth quarter normalized EPS to $0.06-$0.10 from $0.29-$0.34; for 2008 normalized EPS to $1.17-$1.21 from $1.40-$1.45. Sees fourth quarter sales declining in low-teens percentage range. Also says an 8%-10% reduction of salaried workforce that began in 2008 will continue in 2009, and it will implement a wage and salary freeze, temporary shutdowns at number of manufacturing facilities to reduce inventory levels.
Hovnanian Enterprises (HOV) posts $5.79 fourth quarter loss, vs. $7.42 loss, as smaller write-downs offset 48% revenue decline. For fourth quarter, deliveries were 2,294 homes, excluding unconsolidated joint ventures, a decrease of 42% from fourth quarter fiscal year 2007. Net contracts in fourth quarter fell 56%.
Joy Global (JOYG) posts $1.11, vs. $0.64, fourth quarter EPS on 40% revenue rise. Gives guidance for fiscal year 2009 revenues of $3.5-$3.7 billion and EPS of $3.60-$4.00.
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