Movers: Exxon Mobil, Amazon.com, Procter & Gamble, Sunpower
Exxon Mobil (XOM) posts better-than-expected $1.55, vs. $2.13 a year ago, fourth quarter EPS on 27% lower total revenue and other income.
Amazon.com (AMZN) posts $0.52, vs. $0.48 a year ago, fourth quarter EPS on 18% revenue rise (including forex). Street was looking for $0.39. Sees first quarter operating income of $125-$210 million, revenue of $4.53-$4.93 billion. Stifel Nicolaus reiterates buy; raises target price to $65.
Procter & Gamble (PG) posts $1.58, vs. $0.98, second quarter EPS despite 3.2% sales drop. Notes second quarter fiscal year 2009 EPS includes $0.63 gain from Folgers transaction completed during the second quarter. Sees third quarter organic sales growth of 2%-5%, $0.78-$0.86 EPS, incl. incremental Folgers-related restructuring charges. Sees fiscal year 2009 organic sales growth of 2%-5%, comfortable with current consensus EPS estimate of $4.29.
Sunpower (SPWRA) posts $0.70, vs. $0.39, fourth quarter non-GAAP EPS on 79% higher revenue. GAAP EPS was $0.35 vs. $0.06. Sees $2.20-$2.80 2009 non-GAAP EPS ($1.40-$1.90 GAAP) on $1.6B-$2.0B revenue. Sees 2009 production capacity of more than 450 megawatts.
Roche (RHHBY) announces it intends to commence a cash tender offer for all outstanding publicly-held shares of Genentech (DNA) at $86.50 per share. RHHBY currently owns 55.8% of DNA outstanding shares. The offer replaces the public proposal made by RHHBY on July 21, 2008 to acquire all of the publicly-held shares of DNA at $89 per share in cash by means of a negotiated merger.
Cybersource (CYBS) posts $0.19, vs. $0.15, fourth quarter non-GAAP EPS on 37% revenue rise. Sees first quarter revenue of about $60 million, $0.15 non-GAAP EPS, 2009 revenue of $258-$263 million, EPS of $0.72-$0.74.
Broadcom (BRCM) posts $0.32 fourth quarter GAAP loss, vs. $0.16 EPS, as impairment charges of goodwill and certain tangible assets of its mobile platforms business group, as well as in-process R&D charges offset 9.7% revenue rise. Sees Q1 revenue of $800-$875 million. Believes current economic slowdown will continue to hurt its business in Q1 as demand continues to decrease and settle into new levels and channel inventory adjusts accordingly. To cut workforce.
Monster Worldwide (MWW) posts $0.24, vs. $0.36, fourth quarter EPS from continuing operations on 16% revenue decline. Says weakening global economy significantly impacted hiring demand.
Digital River (DRIV) posts better-than-expected $0.48, vs. $0.56, fourth quarter non-GAAP EPS on 1% revenue drop. Street was looking for $0.44. Sees Q1 revenue of $96-$100 million, GAAP EPS of $0.37-$0.42, non-GAAP EPS of $0.48-$0.53.
Juniper Networks (JNPR) reports $0.25, vs. $0.22, fourth quarter EPS (GAAP) on 14% higher revenue. Non-GAAP EPS was $0.32 vs. $0.27. S&P believes fundamentals are worsening, as evidenced by Q1 guidance for about 12% sequential sales decline, reiterates sell. Credit Suisse cuts estimates, target.
PerkinElmer (PKI) posts $0.29, vs. $0.
44, fourth quarter GAAP EPS from continuing operations despite 3% revenue rise. On non-GAAP basis, posts $0.48 fourth quarter EPS. For 2009, expects organic revenue relative to '08 to be flat to down mid-single-digits and EPS to be down mid-single-digits to mid-teens on both a GAAP and non-GAAP basis. Also, PKI announces it plans to sell portion of its Specialty Lighting business. Thomas Weisel downgrades to market weight from overweight.
Honda Motor (HMC) posts 90% lower third quarter consolidated net income on 17% revenue drop. Notes decreased revenue in the automobile business and currency translation effects, although unit sales in motorcycle business increased. Sees fiscal year 2009 revenue down 16%, operating income down 85%.
Varian Medical Systems (VAR) posts $0.56, vs. $0.46, first quarter EPS from continuing operations on 13% higher revenue. Says, despite continuing turbulent financial times, VAR believes fiscal year 2009 revenues could grow by 10%-13% and EPS from continuing operations could grow to $2.59-$2.64. For the second quarter, sees revenue growth of 9%-10% with a slightly faster growth rate in operating earnings. Including higher expected tax rate, second quarter EPS from continuing operations should be in the range of $0.59-$0.62. S&P upgrades to hold from sell.
Affiliated Computer Services (ACS) posts better-than-expected $0.85 vs. $0.90 Q2 adjusted EPS despite 7% revenue growth. Street was looking for EPS of $0.79. Sees third quarter revenue growth of 7%-8%.
Chubb (CB) posts $1.58, vs. $1.60, fourth quarter operating EPS on 4% lower net written premiums, with about half the decline attributable to currency fluctuation. Street was looking for EPS of $1.52. Premiums were down 2% in U.S. and -8% outside U.S. (up 1% in local currencies). Expects 2009 operating EPS of $4.80-$5.20. 2009 net written premiums for the insurance business are expected to decline 1%-4%. S&P maintains strong buy.
Rio Tinto PLC (RTP) is in a deal to sell its undeveloped potash assets, largely comprising the Potasio Rio Colorado potash project in Argentina, and its Corumba iron ore mine in Brazil and the associated river logistics operations in Paraguay to Vale, the Brazilian mining company, for total cash consideration of $1.6 billion. Completion of Corumba transaction remains subject to receipt of relevant regulatory approvals, while no approvals are required in order to complete the potash transaction.
Honeywell International (HON) posts $0.97, vs. $0.91, fourth quarter EPS as lower costs, expenses offset 6.5% revenue decline. Reaffirms $3.20-$3.55 2009 EPS forecast.
Flowserve (FLS) announces that it now sees 2008 EPS somewhat above the high end of its previously announced 2008 target range of $7.20-$7.50 (including $40 million or $0.50 per share, in realignment costs). Says record bookings for 2008 were approximately $5.1 billion, up 19% year-over-year; backlog at December 31, 2008 was approximately $2.8 billion, the highest year end level in its history.
Harmonic (HLIT) posts $0.20, vs. $0.19, fourth quarter non-GAAP EPS on 11% sales rise. Sees first quarter sales of $72-$78 million (vs. fourth quarter's $96.9 million), non-GAAP gross margins and operating expenses, excluding charges for stock-based compensation and the amortization of intangibles, are anticipated to be in a range of 47%-49% and $30-$31 million, respectively.
Micrel (MCRL) posts $0.07, vs. $0.11, fourth quarter GAAP EPS on 15% revenue decline. Revenue decline was due to continued reduction in overall demand from customers in nearly all geographies. Says visibility into longer-term customer demand continues to be limited due to short order lead times. Sees first quarter revenue decline of 12%-17% sequentially, GAAP EPS of $0.01-$0.03.
Ametek (AME) posts $0.66, vs. $0.57, fourth quarter adj. EPS on 7% revenue rise. Sees $0.54-$0.58 first quarter EPS vs. $0.62 a year ago. Based on its current understanding of market conditions, which has a more than normal level of uncertainty, expects 2009 revenue to be down slightly from 2008, reflecting 2008 acquisitions, negative foreign currency headwinds, mid-single digit negative internal growth. Also sees $2.40-$2.60 2009 EPS.
WMS Industries (WMS) posts $0.41, (including $0.05 gain from settlement), vs. $0.27, second quarter EPS on 12% revenue rise. Reiterates its expectation for 10%-12% growth in fiscal year 2009 total revenues to $712-$728 million; initiates third quarter revenue guidance of $178-$185 million.