Movers: Costco, Disney, Electronic Arts, Ticketmaster
Costco Wholesale (COST) expects second quarter EPS to be substantially below the current First Call consensus earnings estimate of $0.70. Says general economic conditions have negatively affected its sales, primarily in non-foods, and merchandise margins. Given the uncertainties surrounding the economy, including consumer behavior, says it will not provide earnings guidance for rest of this fiscal year. Posts 2% drop in total January comp store sales. S&P reiterates hold.
Walt Disney (DIS) posts $0.45, vs. $0.63 a year ago, first quarter EPS on 8% revenue decline. Current Q included a gain on the sale of investment in 2 pay t.v. services in Latin America, which resulted in a benefit of $0.04 per share. Street was looking for EPS of $0.51. Consumer Products and Interactive Media segments posted revenue gains in first quarter, but Media Networks, Parks & Resorts, and Studio Entertainment posted declines. S&P maintains hold.
Electronic Arts (ERTS) posts $0.56, vs. $0.90, non-GAAP third quarter EPS on flat revenue. Street was looking for $0.88. As a part of overall cost reduction program, co. reducing workforce by about 11% (1,100 people), closing 12 facilities, narrowing its product portfolio, cutting other variable costs. Sees fiscal year 09 non-GAAP loss of about $0.35 on about $4.1B revs, fiscal year 2010 non-GAAP EPS of about $1.00 on $4.3 billion revenues.
Live Nation (LYV) and Ticketmaster (TKTM) are close to a merger, people familiar with the matter said, in a deal that would consolidate two of the most powerful forces in the music industry under one roof. The combined company would be called Live Nation Ticketmaster, and would merge the world's biggest concert promoter with the world's dominant ticketing and artist-management company. The resulting firm would be able to manage everything from recorded music to ticket sales and tour sponsorship: WSJ.
Kraft Foods (KFT) posts $0.11, vs. $0.38, fourth quarter EPS as final costs related to its restructuring program, unrealized mark-to-market losses related to commodity hedging activities offset 6.2% revenue rise. Posts $0.43 fourth quarter EPS (excluding items). Street was looking for $0.44. Expects 2009 organic revenue growth of approximately 3%, down from previous est. of at least 4%, GAAP EPS of $1.88 vs. $2.00 prior forecast, reflecting greater-than-anticipated negative impact from currency, pension costs.
Clorox (CLX) posts better-than-expected $0.62, vs. $0.65, second quarter EPS despite 2.5% sales rise. Street was looking for $0.57. Updates fiscal year 2009 outlook, now sees 3%-5% sales growth, 50 bps to 100 bps gross margin improvement; maintains $3.60-$3.75 EPS forecast.
Yum Brands (YUM) posts $0.43, vs. $0.44, fourth quarter GAAP EPS despite 37% revenue rise. Looking ahead, expects EPS excluding special items to fall in first quarter 2009; for the 2009 year, sees $2.10 EPS, excluding items.
Textron (TXT) says it has drawn the balance of $3 billion committed bank credit lines available to the company and its commercial finance subsidiary, Textron Finl Corp (TFC).
Wynn Resorts (WYNN) says it will reduce pay for all salaried employees at Wynn Las Vegas, reduce work weeks for fully-time hourly employees, eliminate 2009 bonus accruals and suspend its employer match to the 401(k) contributions. S&P reiterates sell. KeyBanc downgrades WYNN to underweight from hold.
Alcatel-Lucent (ALU) posts $0.81 adjusted fourth quarter loss per ADS, vs. $0.03 loss, on 5.3% revenue drop. Notes fourth quarter '08 incl. impairment charge of EUR 934M for goodwill and other intangible assets not related to the Lucent combination. Reiterates 2009 guidance: expects global telecommunications equipment and related services market to be down 8%-12% at constant currency in 2009; continues to anticipate adj. operating profit around break-even in 2009.
Time Warner (TWX) posts $4.47 fourth quarter loss from continuing operations, vs. $0.28 EPS, on 2.7% revenue drop. Notes net impact of items was to decrease fourth quarter '08's results by $4.70 per share, fourth quarter 2007's by $0.01. Sees 2009 adjusted EPS from continuing ops to be around flat compared to adj. EPS of $0.66 in 2008, which reflects impact of approximately $250 million in restructuring charges that TWX anticipates incurring in 2009, related to restructurings at AOL and Warner Bros. S&P maintains hold.
Ryder System (R) posts $1.09, vs. $1.18, fourth quarter GAAP EPS on 18% lower revenue. Sees $2.60-$3.30 2009 EPS. Says its expected earnings decline is driven by a significant increase in annual pension expense of $0.69. Also, says it anticipates lower commercial rental and used vehicle sales results, and a negative impact from automotive industry production declines.
Sara Lee (SLE) posts $0.21, vs. $0.22, Q2 non-GAAP EPS on 2% lower sales. Sees $0.72-$0.79 fiscal year 09 EPS, which includes $0.21 per share of contingent sale proceeds received in first quarter of fiscal year 2009 from sale of its tobacco business, and $0.22 impact from significant items. Notes guidance does not include any additional significant items that may occur during the remainder of the year.
Advent Software (ADVS) posts $0.34, vs. $0.18, fourth quarter non-GAAP EPS on 25% higher total revenue. Sees total revenue of $68M-$70M for first quarter, $280M-$290M for 2009. For 2009, also sees GAAP operating margin of 15%-16%, operating cash flow of $77M-$82M, capital expenditures of $12M-$14M.
Fiserv (FISV) posts $0.85, vs. $0.69, fourth quarter adjusted EPS from continuing operations on 24% revenue rise. EPS a penny shy of Street view. Company says it is disappointed with internal revenue growth in its financial segment, which was hurt by lower home equity processing and discretionary license revenue. Sees 2009 adjusted EPS from continuing operations of $3.61-$3.75 on adjusted internal revenue growth of flat to 4%.
Leggett & Platt (LEG) posts $0.03, vs. $0.21, fourth quarter adjusted EPS from continuing operations on 15% revenue decline. Sees 2009 EPS from continuing operations of $0.60-$1.00 on sales of $3.2B-$3.6B. Street was looking for fourth quarter EPS of $0.08 and 2009 EPS of $0.92.
Silicon Laboratories (SLAB) posts $0.14, vs. $0.68, fourth quarter GAAP EPS on sharply lower revenues. Expects first quarter sequential revenue decline of 20%-25%.
Radisys (RSYS) posts $0.12, vs. $0.18, fourth quarter non-GAAP EPS on 11% lower revenue. Street was looking for $0.09 EPS. Sees $0.05-$0.11 first quarter non-GAAP EPS on first quarter revenue of $73M-$79M.
Bally Technologies (BYI) posts $0.59, vs. $0.42, second quarter EPS on slight revenue rise, widened operating margin.
Jack Henry & Associates (JKHY) posts $0.33, vs. $0.32, Q2 EPS as a lower number of shares outstanding offsets a 1% drop in revenue.
Genomic Health (GHDX) posts $0.08 fourth quarter loss, vs. $0.21 loss, on 62% higher revenue. Sees 2009 net loss of $7M-$14M, revenue of $148M-$160M.
Lifetime Brands (LCUT) announces that, in light of current economic conditions, it has determined to suspend paying a cash dividend. Says it will review this decision as circumstances may warrant.
Wolverine World Wide (WWW) posts $0.49, vs. $0.49, fourth quarter EPS as impact of forex contributed to 3.2% revenue decline. Street was looking for $0.45. Sees $1.16B-$1.24B revenue, $1.77-$1.97 EPS (excl. items).
Snap-On (SNA) posts $1.01, vs. $0.98, fourth quarter EPS as lower costs offset 10% sales decline. Says it does not, as a general practice, furnish quarterly sales or EPS projections, but in light of certain factors and current conditions, believes first quarter sales, EPS will be lower than year ago results.
Polo Ralph Lauren (RL) posts $1.05, vs. $1.08, third quarter EPS on 1% lower revenue. The Street was expecting EPS of $0.86. RL says due to the deterioration in the economic environment, now expects fiscal year 2009 net revenues to be flat-to-down low single digits, vs. prior guidance of low-single-digit increase. Now expects fiscal year 2009 EPS in the range of $3.85-$4.00, vs. prior guidance of $4.00-$4.10.