Movers: Macy's, ADC Telecom, BE Aerospace, Humana
Macy's (M) sees fiscal year 2010 same-store sales down 6%-8%, EPS of $0.40-$0.55, excluding restructuring-related costs. Sets companywide 7,000 position elimination, or about 4% of its total workforce; sees pre-tax costs of $400 million in cash, most of which are expected to be taken in fiscal year 2010. Commences tender offer to redeem $950M in debt that is maturing later in 2009. Cuts $0.1325 quarterly dividend to $0.05.
ADC Telecommunications (ADCT) sees first quarter sales of $240-$255 million, gross margins of around 29%, GAAP loss of $0.17-$0.23, vs. previous guidance of $255-$290 million sales, GAAP loss of $0.05-$0.17. Cites challenging macroeconomic environment, declining customer spending within telecom industry. Implements hiring freeze, workforce reductions. Terminates $200 million bank line of credit. Expects significant non-cash impairment charge in first quarter.
BE Aerospace (BEAV) posts $0.53, vs. $0.46, fourth quarter EPS (adjusted to exclude charges) on 14% sales rise. Says weakened global economy has caused rapid declines in global air travel and it is expected that air traffic will continue its decline in 2009. Says first quarter 2009 EPS, cash flow expected to be particularly weak. Sees first quarter adjusted EPS of $0.40. Sees 2009 revenues slightly higher compared with 2008 or about $2.25B; sees 2009 EPS slightly lower vs. 2008 at about $2.00, excluding AIT costs.
Humana (HUM) posts $1.03, vs. $1.43, fourth quarter EPS as higher stand-alone Prescription Drug Plan claim expenses and lower net investment income including $0.04 per share in other-than-temporary investment impairments in fourth quarter 2008 offset 18% revenue rise. Continues to see 2009 EPS of $5.90-$6.10 vs. $3.83 in 2008.
Mattel (MAT) posts $0.49, vs. $0.89, fourth quarter EPS on 11% sales drop.
Applied Materials (AMAT) expects a net loss in the range of $0.09-$0.11 for the first quarter, which includes charges that decreased earnings by $0.09, vs. previous guidance of breakeven to $0.04 EPS (excluding charges). Net sales for the quarter are expected to be down 35% from year-ago levels, and at the low end of previously provided target of down 25% to 35%.
Hitachi (HIT) sees fiscal year 2009 net loss of JPY700B. Expects to record JPY140B in losses from equity-related investments at its semiconductor-related affiliates, JPY150B in expenses on structural reforms, JPY80B in losses upon revaluation of its fixed assets and marketable securities, JPY330B in accumulated tax expenses. S&P Ratings places its 'A-' long-term corporate credit and LT senior unsecured debt ratings on HIT on CreditWatch with negative implications.
Cardinal Health (CAH) - Goldman downgrades CAH to neutral from buy.
NYSE Euronext (NYX) - Goldman reportedly downgrades NYX to sell from neutral and Nasdaq (NDAQ) to neutral from buy. Keefe Bruyette also reportedly downgrades NYX to market perform.
International Paper (IP) falls 1.42 to 7.70. Goldman downgrades IP to sell from neutral. Last week the company posted $0.21, vs. $0.69, fourth quarter EPS from continuing operations (before items) despite 21% sales rise.
Piper Jaffray Companies (PJC) posts $9.76 fourth quarter loss from continuing operations, vs. $0.37 EPS a year ago, on sharp revenue drop. Notes all of fourth quarter loss was attributable to a number of significant items that totaled $146.3 million after-tax, or $9.33 per share. Says operating conditions further deteriorated in fourth quarter affecting nearly all of its business.
MicroStrategy (MSTR) posts better-than-expected $1.13, vs. $1.47, fourth quarter EPS from continuing operations on flat revenue. Street was looking for $0.97 EPS.
Watson Pharmaceuticals (WPI) announces that the U.S. Federal Trade Commission (FTC) and the State of California have filed a lawsuit in U.S. District Court for the Central District of California alleging that WPI's 2006 patent lawsuit settlement with Solvay Pharmaceuticals Inc. related to AndroGel(R) 1% (testosterone gel) CIII is unlawful.
Rockwell Automation (ROK) posts $0.81, vs. $1.04, first quarter EPS from continuing operations on 11% revenue decline. Organic sales fell 5%, while currency translation contributed 6 percentage points to the total 11% decline. Given abrupt fall off in sales volume and increasing uncertainty, company says it preparing for fiscal year 09 revenue decline of 12%-17%, excluding effects of currency. Now sees EPS of $1.55-$2.25.
Corn Products International (CPO) posts $0.61 (including $0.09 negative impact from reimbursement of expenses in connection with the termination of the proposed merger with Bunge Limited (BG)), vs. $0.61, fourth quarter EPS on 1% sales rise. Sees 2009 EPS of $2.10-$2.60. Says its outlook for lower 2009 EPS is primarily due to anticipated reduced y/y co-product credits, particularly from corn oil, which would significantly increase net corn costs, foreign currency devaluations, and uncertainty over volumes and pricing strength.
General Growth Properties (GGP) enters into Amended and Restated Forbearance and Waiver Agreements with its syndicates of lenders for the '06 Senior Credit Agreement and the Secured Portfolio Facility which extend forbearance periods from today until March 15. Under the terms of the amended agreements, GGP agreed to certain addl restrictions and covenants, and the lenders agreed that certain possible future cross-defaults related to company's mortgage indebtedness will not cause immediate termination of the Forbearance Agreements.
SLM Corp. (SLM) announces that it has extended $26 billion in asset-back commercial paper facilities that continue to provide funding for the company's federally guaranteed and private education loans. Says the extension of these facilities provides liquidity for SLM while federal government finalizes its plans to implement the recently announced ABCP conduit provided by U.S.
Insituform Technologies (INSU) agrees to acquire Corrpro Companies Inc., in deal valued at about $91 million.