Movers: American Express, Verizon, Texas Instruments, Netflix
American Express (AXP) posts $0.21, vs. $0.73, fourth quarter EPS from continuing operations on 11% revenue drop. Notes consolidated provisions totaled $1.4 vs. $1.5 billion year-ago, which included a significant credit related charge. Notes it exceeded all of its funding requirements, in part by raising $6.2 billion through a new retail certificate of deposit program. S&P Ratings says its rating on AXP not affected by weak earnings report; it says the company continues to maintain adequate capital levels, and its funding and liquidity remain stable. S&P Equity Research maintains sell opinion on the stock.
Verizon Communications (VZ) posts $0.43, vs. $0.37, fourth quarter EPS on 3.4% operating revenue rise. Posts $0.61 non-GAAP EPS, which inline with Street. Says company added 303,000 net new FiOS TV customers, compared with 226,000 in fourth quarter 2007. S&P maintains buy.
Texas Instruments (TXN) posts $0.08, vs. $0.54 a year ago, fourth quarter EPS on 30% revenue drop. Notes fourth quarter 2008 EPS included $0.13 in restructuring charges. Plans to cut employment 12% through 1,800 layoffs, 1,600 voluntary retirements, departures. Sees first quarter revenue of $1.62-$2.12 billion, $0.11 loss per share to $0.03 EPS. Sees 2009 R&D expense of $1.5 billion, capex of $300 million. S&P downgrades to sell from hold.
DuPont (DD) posts $0.70 fourth quarter loss, vs. $0.60 EPS, on 16% revenue decline. Expects that global macroeconomic conditions for first quarter 2009 will be similar to fourth quarter 2008, with very weak demand in most of its key markets, excluding agriculture. Sees first quarter 2009 EPS of $0.50-$0.70. With weak industrial economic conditions expected to continue in 2009, cuts $2.25-$2.75 EPS forecast to $2.00-$2.50.
Amgen (AMGN) posts $0.91, vs. $0.76, fourth quarter GAAP EPS on flat revenues. Sees 2009 revenue of $14.8-$15.2 billion, 2009 adjusted EPS of $4.55-$4.75, excluding stock option expense, certain expenses related to acquisitions, restructuring charges and certain other items.
Delta Air Lines (DAL) posts $0.50 fourth quarter GAAP loss on higher operating costs, 7% higher operating revenue. Says its decision to reduce domestic capacity during 2008 mitigated the impact of the decline in demand it saw over the course of fourth quarter. Expects the worldwide economy to be difficult throughout 2009; however, if fuel prices remain at current levels, believes the benefit of lower fuel prices will more than offset the revenue decline.
Netflix (NFLX) posts $0.38, vs. $0.23, fourth quarter GAAP EPS on 19% revenue rise. Sees first quarter revenue of $387-$393 million, GAAP EPS of $0.25-$0.33, 2009 revenue of $1.58-$1.635 billion, GAAP EPS of $1.43-$1.59. Anticipates setting $175 million stock buyback.
Tellabs (TLAB) posts $0.03, vs. $0.01, fourth quarter GAAP EPS as a higher gross profit margin and reduce operating expenses offset a 13% drop in revenues. S&P maintains sell.
McKesson (MCK) posts $1.05 (excluding Average Wholesale Price litigation charge), vs. $0.68, third quarter EPS on 2.4% revenue rise. Sees $4.15-$4.30 FY 09 EPS (excluding AWP litigation charge). S&P, Jefferies, UBS Financial reiterate buy.
Energizer Holdings (ENR) posts $1.88, vs. $1.74, first quarter EPS despite 12% sales decline. Street was looking for $1.73 EPS. S&P, ST Robinson Humphrey maintain buy
Travelers Companies (TRV) posts better-than-expected $1.58, vs. $1.63, fourth quarter operating EPS on 11% lower total revenues. The Street was expecting operating EPS of $1.46. S&P maintains strong buy. S&P maintains strong buy
Jacobs Engineering Group (JEC) posts $0.94, vs. $0.79, first quarter GAAP EPS on 24% higher revenue. Notes first quarter fiscal year 2009 EPS include an after-tax gain of $0.04 from the sale of JEC's interest in a company that provides specialized operations and maintenance services. For fiscal year 2009, now sees $3.55-$3.90 EPS, compared with its previous view of $3.55-$4.05.
Siemens AG (SI) posts EUR 1.260 billion, vs. EUR 1.078 billion, first quarter income from operations on 6.7% revenue rise. Says achieving previously announced income targets for fiscal year 2009 has become even more ambitious due to market conditions. Total Sectors profit is targeted to reach EUR 8.0- EUR 8.5 billion in fiscal year 2009, provided that customers do not materially slow conversion of booked orders to revenue and pricing does not further diminish due to continued adverse market development. This outlook excludes impacts from legal and regulatory matters.
Hershey Company (HSY) posts $0.59, vs. $0.54, fourth quarter adjusted EPS on 2.6% revenue rise. Sees 2%-3% 2009 sales growth. Due to macroeconomic conditions, other factors, sees EPS from operations growth of 6%-8%, which below prior view.
VMware (VMW) posts $0.29, vs. $0.19, fourth quarter GAAP EPS on 25% revenue rise. Posts $0.36 non-GAAP EPS. Sees first quarter revenue of about $475M. Due to uncertain global economic conditions, VMW is not providing revenue guidance for the full year 2009.
CV Therapeutics (CVTX) - Astellas Pharma offers to buy CVTX for $16 per share in cash.
Bristol-Myers Squibb (BMY) posts $0.46, vs. $0.30, fourth quarter non-GAAP EPS from continuing operations on 3.8% higher sales. Sees 2009 non-GAAP EPS of $1.85-$2.00 on low single-digit revenue growth (mid-to-high single-digit growth excl. forex). Reaffirms guidance for non-GAAP EPS from continuing operations to grow at a minimum of 15% compounded annual growth rate from the 2007 base through 2010, without rebasing for the sale of the ConvaTec business and excluding items.
Lexmark International (LXK) posts $0.75, vs. $1.29, first quarter non-GAAP EPS on 17% revenue decline. Street was looking for $0.75. Sees $0.65-$0.75 first quarter non-GAAP EPS.
St. Jude Medical (STJ) posts $0.60, vs. $0.54, fourth quarter non-GAAP EPS on 11% sales rise. Sees $0.57-$0.59 first quarter EPS, 2009 EPS in the range of $2.48-$2.54.
Kinetic Concepts (KCI) posts $0.74, vs. $0.92, fourth quarter EPS as costs, expenses of $11.4 million, or $0.16/share, associated with the acquisition of LifeCell, restructuring charges of $5.7 million, or $0.08/share, offset 14% revenue rise. Posts $0.98 fourth quarter adjusted non-GAAP EPS. Street was looking for $0.83-$0.85. Sees $3.95-$4.10 2009 adjusted non-GAAP EPS (up 4%-8% year-over-year) on $2.00-$2.060 billion revenue (up 7%-9%).
New York Community Bancorp (NYB) posts $0.30, vs. $0.21, fourth quarter GAAP EPS on 31% higher net interest income. Says non-GAAP fourth quarter EPS was $0.27 vs. $0.21.
Equity Lifestyle Properties (ELS) posts breakeven fourth quarter results, vs. $0.19 EPS, $0.67 vs. $0.72 funds from operations (FFO) per share, as higher expenses and taxes offset a 21% rise in property operating revenues. Sees FFO of $1.03-$1.13 for first quarter, $3.45-$3.65 for 2009.
United States Steel (X) posts $2.65 (including $0.65 special items), vs. $0.29, fourth quarter EPS on flat revenue, lower operating expense. Expects first quarter operating loss as results continue to reflect extremely difficult global economic environment. Does not know when conditions will improve, but says it is well positioned to fully participate in a market recovery when it occurs.
CommScope (CTV) now sees $90-$95 million fourth quarter non-GAAP adjusted operating income, revenues of about $860-$865 million, vs. previous guidance of $80-$100 million adjusted operating income, excluding special items; $875-$925 million revenue. Says fourth quarter business conditions were difficult, and it expects further softening in first quarter.
Kilroy Realty (KRC) posts $0.18, vs. $2.01, fourth quarter EPS, $0.78 vs. $0.85 funds from operations per share despite a 3.9% rise in revenue from continuing operations. Notes fourth quarter 2007 EPS included net gains of about $61 million on the sale of properties.
Cooper Industries (CBE) posts $0.65, vs. $0.98, fourth quarter EPS from continuing operations on 1% lower revenue. Expects 2009 EPS from continuing operations to decline to $2.45-$2.80, with revenue declining in the range of 10%-15%. For first quarter, expects EPS from continuing operations of $0.45-$0.65 with revenues declining in the range of 10%-15%.
SL Green Realty (SLG) posts fourth quarter FFO $1.30, vs. $1.24, on 9.1% revenue rise.
Weyerhaeuser (WY) announces the closure of two Washington mills due to weak market conditions. The permanent shutdowns of the Aberdeen sawmill and the Pacific Veneer mill in Aberdeen will affect about 196 hourly and 25 salaried jobs, the company noted.