Movers: Ford, Qualcomm, Dell, Black & Decker, Oshkosh
Ford Motor (F) posts $1.37 fourth quarter loss from continuing operations (excluding special items), vs. $0.23 loss, on 36% revenue decline. Says, based on current planning assumptions, it does not need a bridge loan from the U.S. government, barring a significantly deeper economic downturn or a significant industry event. Also says it remains on track for both its overall, North American Automotive pre-tax results to be breakeven or profitable in 2011, excluding special items, based on current planning assumptions.
Qualcomm (QCOM) posts $0.31 first quarter pro forma EPS, a year-over-year decline of 40%, as other-than-temporary impairments to its marketable securities portfolio offset 3% revenue rise. Says it's not providing EPS guidance due to volatility of financial markets. Sees second quarter pro forma revenue of $2.25-$2.45 billion, down 6%-14% year-over-year; operating income of $0.75-$0.85 billion, down 16%-26%.
Dell (DELL) says fourth quarter results will include expenses related to continued improvement in its competitive position, part of $3 billion in planned cost reductions by end of fiscal year 2011. Expects to recognize estimated pretax expense of $135 million to further optimize global mfg and distribution network and to reduce workforce. Separately, DELL will incur pretax, noncash expense of about $145 million related to stock-based compensation. Together the cost-reduction and stock-based compensation expenses will total about $0.11 per share.
Black & Decker (BDK) posts $0.97, vs. $1.06, fourth quarter EPS (excluding items) on 17% sales drop. Notes sales, margins below expectations. Expects demand in most of its markets will weaken further in 2009. Sees double-digit rate of organic sales decline for first three quarters of 2009, unfavorable impact from forex. Sees first quarter sales down about 20%, EPS of $0.05-$0.15; also sees $1.75-$2.25 2009 EPS.
Eastman Kodak (EK) posts preliminary $0.50 fourth quarter adjusted loss from continuing operations vs. $0.31 EPS on 24% revenue decline. Expects to reduce its worldwide employment by between 3,500-4,500 positions during 2009, approximately 14%-18% of its total workforce. In connection with restructuring actions, expects to incur charges against earnings in 2009 in range of $250M-$300M million, make payments from corporate cash in range of $225-$275 million.
Oshkosh (OSK) posts $0.28 first quarter loss, vs. $0.50 EPS, on 7.6% sales drop. Withdraws previous EPS estimates, will not be issuing new earnings estimates. Does not expect that EPS for remainder of FY 09 will be sufficient for company to avoid violating a financial covenant in its credit agreement. Says it commenced discussions with its lead banks to seek an amendment to its credit agreement in the second quarter of fiscal 2009. S&P maintains hold. KeyBanc downgrades to hold from buy.
Sepracor (SEPR) posts $0.92, vs. $0.72, fourth quarter non-GAAP EPS on 8.7% revenue rise. Announces corporate restructuring and 20% total workforce reduction plan aimed at reducing 2009 operating expenses. Sees 2009 non-GAAP EPS of $2.10-$2.70 on revenue of $1.15-$1.25 billion. S&P upgrades to buy from hold.
Smith International (SII) posts lower-than-expected $1.00, vs. $0.83, fourth quarter Non-GAAP EPS on 33% revenue rise. Street was looking for $1.02. Says 2009 business outlook involves a significant amount of uncertainty resulting from the global economic downturn and extremely tight credit markets.
Lam Research (LRCX) posts $0.09 second quarter loss, vs. $0.91 EPS, on 54% revenue decline. Shipments for December quarter were $226 million, vs. $345 million during the September quarter. S&P reiterates hold. Credit Suisse downgrades to underperform from neutral.
OptionsXpress Holidngs (OXPS) posts $0.32, vs. $0.44, fourth quarter EPS on 17% revenue drop. S&P cuts estimate, target, keeps hold.
Green Mountain Coffee Roasters (GMCR) posts $0.16, vs. $0.12, first quarter non-GAAP EPS on 56% revenue rise. Street was looking for EPS of $0.13. Says during the quarter, 357 million K-Cup portion packs were shipped system-wide by all Keurig licensed roasters, up 55% over the year-ago quarter. Raises 40%-45% fiscal year 2009 sales growth estimate to 43%-48%; $1.20-$1.30 non-GAAP EPS to $1.25-$1.35. Stifel Nicolaus downgrades to sell from hold.
Royal Caribbean Cruises Ltd. (RCL) posts $0.01, vs. $0.33, fourth quarter EPS on higher fuel expenses, lower net yields. Says booking began to suffer a substantial downturn in Sept. resulting in a Net Yield decline of 5.9% for the fourth quarter, below previous guidance of -4%. Says revenue outlook for 2009 remains weak; both ticket sales, onboard revenue have been hurt by general economic conditions. Expects Net Yields for 2009 will be down 9%-13% from 2008 and that EPS will be about $1.40.
Zimmer Holdings (ZMH) posts $0.75, vs. $1.12, fourth quarter EPS on higher operating expenses, 4% lower sales. Expects '09 revenues to increase between 1%-3% on a constant currency basis. Says adjusted EPS are expected to show negative growth in first three quarters with positive growth in fourth quarter; forecast $3.85-$4.00 2009 adjusted EPS. S&P cuts estimate, target, keeps hold.
Boston Scientific (BSX) posts $0.21, vs. $0.24, fourth quarter EPS (excluding items) on 7% lower net sales. Sees $0.15-$0.20 first quarter EPS (excluding items) on net sales of $1.95-$2.07 billion. Notes changes in the Cardiac Rhythm Mgmt market demand since its acquisition of Guidant, coupled with the recent disruptions in the credit and equity markets, have caused BSX to write down $2.7 billion of goodwill tied to the acquisition. This non-cash charge has no impact on BSX's debt covenants; its amount is subject to finalization during first quarter 2009.
Continental Airlines (CAL) posts $2.33 fourth quarter loss, vs. $0.33 loss, on 1.5% revenue drop.
Colgate-Palmolive (CL) posts $1.00, vs. $0.91, fourth quarter EPS (excluding restructuring charges) on 0.5% worldwide sales growth.
Newell Rubbermaid (NWL) posts $0.11, vs. $0.47, fourth quarter normalized EPS on 12% sales drop. Sees first quarter sales down in low to mid teens percentage range, normalized EPS of $0.07-$0.12. Sees 2009 sales down 10%-15% normalized EPS of $1.00-$1.25. Cuts quarterly dividend 50%.
Allstate (ALL) posts $0.97, vs. $1.24 a year ago, fourth quarter operating EPS on sharply lower investment income. S&P Ratings Services lowers its counterparty credit and financial strength ratings on ALL core property-liability and life insurance companies to 'AA-' from 'AA'.
Ryland Group (RYL) posts $1.40 fourth quarter loss per share, vs. $4.80 loss, despite a 39% drop in revenue, as inventory valuation adjustments and write-offs declined. S&P reiterates hold.
Eli Lilly (LLY) posts $1.07, vs. $0.90, fourth quarter non-GAAP EPS (excl. impact of Imclone acquisition) on 3% U.S. sales rise. Says EPS increase was driven by an improvement in gross margin as a percent of sales. Reconfirms 2009 EPS forecast of $4.35-$4.55, excluding estimated ImClone dilution.
Dun & Bradstreet (DNB) posts $1.85, vs. $1.74, fourth quarter GAAP EPS on 2% higher revenue. Excluding special gains and charges, posts $1.87 non-GAAP EPS. Sees 2009 EPS growth of 9%-12%, before items. Also raises its quarterly dividend to $0.34 from $0.30 per share.
Western Digital (WDC) posts $0.06, vs. $1.35, second quarter GAAP EPS on 17% lower revenue. Excluding restructuring charges and a tax benefit, non-GAAP EPS totaled $0.55. S&P reiterates hold.
Fairchild Semiconductor International (FCS) posts $0.06, vs. $0.33, fourth quarter adjusted EPS on 26% lower sales, lower gross margins. Says, as of today, company has about $205 million of backlog for first quarter; based on order patterns observed so far in January, FCS should post additional turns business in the quarter. Assuming company continues to record positive fill, it presently expects first quarter sales to be between $220-$245 million.
AutoNation (AN) posts $0.40, vs. $0.28, fourth quarter EPS from continuing operations despite 34% revenue decline, which attributable to lower vehicle sales. Posts $0.12 adjusted EPS from continuing operations. Street was looking for $0.11. Notes, in current quarter, the company had a net benefit from certain items of $48 million or $0.28/share, incl. net positive tax adj. of $0.18/share, gain on repurchase of sr. notes of $0.14/share, which offset by other items which had unfavorable impact of $0.04/share.
Airgas (ARG) posts $0.76, vs. $0.67, third quarter EPS on 6.9% higher net sales. For the fourth quarter, ARG sees $0.73-$0.76, a range similar to third quarter EPS. S&P maintains hold.
T. Rowe Price Group (TROW) posts $0.09 (including items), vs. $0.68, fourth quarter EPS on sharply lower net operating income, 30% lower net revenues. TROW notes investment advisory revenues were down 35% in fourth quarter, assets under mgmt decreased 20% since September., net cash outflows to investors in fourth quarter were less than 1% of assets under mgmt. Says the significant financial markets downturn and resulting investor concerns were responsible for the reductions in assets under management.
Ultratech (UTEK) posts $0.17, vs. $0.09, fourth quarter EPS on 11% sales rise. SAtreet was looking for $0.14.
Provident Financial Services (PFS) posts $0.13, vs. $0.08, fourth quarter EPS. Current quarter EPS missed Street consensus and reflects a significant increase in loan loss. Current quarter EPS below Street's EPS estimate.
LSI (LSI) posts $0.06, vs. $0.13, fourth quarter non-GAAP EPS on 18% lower revenue. On a GAAP basis, posts $0.94 fourth quarter loss vs. $2.87 loss. Sees first quarter revenue of $440-$500 million, GAAP loss of $0.10-$0.20, non-GAAP breakeven results to $0.07 loss.
Plexus (PLXS) posts $0.43, vs. $0.58, first quarter EPS on flat revenue. Sees fiscal year 2009 revenue of $375-$405 million, EPS of $0.17-$0.24, excl. restructuring charges, but including about 40.05 of stock-based comp expense. S&P downgrades to sell from buy.