Earning Plays

[3xBuBu]

Wednesday, Sept. 10
Rockwell backs 2008 profit view of $4.05 to $4.10 a share(4:23 pm ET)
SAN FRANCISCO (MarketWatch) -- Rockwell Collins Inc. (COL: news, chart, profile) on Wednesday reaffirmed its fiscal 2008 net income outlook of $4.05 to $4.10 a share on revenue of $4.75 billion, despite strikes at two of its largeset customers, Hawker Beechcraft and Boeing. The company said if the Boeing strike lasts about 45 days, the impact of both strikes will result in a sales decline of about $40 million, of which $30 million is expected in the fourth quarter. In 2009, Rockwell Collins expects earnings between $4.35 to $4.55 a share and revenue of $5.05 billion to $5.1 billion. Analysts projected the company to report earnings of $4.10 a share on revenue of $4.77 billion in 2008 and earnings of $4.40 a share and $5.1 billion in revenue in the following year.
Franklin downgraded by Sandler O'Neill(11:12 am ET)
NEW YORK (MarketWatch) -- Franklin Resources (BEN: news, chart, profile) saw its stock downgraded by Sandler O'Neill & Partners on Wednesday to hold from buy. Sandler O'Neill also cut its Franklin earnings estimates for the fourth quarter, to $1.55 a share from $1.63 a share. It said the downgrade was due in large part to the stronger dollar. "Though we continue to believe [Franklin's] first-mover advantage in key overseas markets represents an important differentiating factor in the long run, our change in thinking largely reflects a more problematic assets under management/earnings growth story related to the ongoing rally in the dollar," said Sandler O'Neill in a research note. About 40% of Franklin's assets under management are in non-U.S. holdings. Sandler O'Neill also increased its projection for net outflows from Franklin funds in the fourth quarter, to $8 billion from $3 billion, pointing in part to poor performance of Franklin's four largest stock funds, Growth (FKGRX: news, chart, profile) , Foreign (TEMFX: news, chart, profile) , World (TEMWX: news, chart, profile) and Developing Markets (TEDMX: news, chart, profile) , all of which are in the bottom half of their peer groups.
Energy stocks move past worst trading day in years(9:38 am ET)
NEW YORK (MarketWatch) -- Energy stocks rebounded from bruising losses in the previous session in early action on Wednesday. The Amex Oil Index (XOI: news, chart, profile) rose 1% to 1,153, rising off a 52-week low. The Amex Natural Gas Index (XNG: news, chart, profile) rose 1.1% to 517. TPH Energy Research said Tuesday marked the worst day of trading among energy stocks in 14 years, with the Amex Oil Index down more than 6% in one day. Many names in the sector gave up more than 10%, on top of a 15% pullback in the past couple of weeks. Exploration and production stocks fell 9% for their worst one-day loss since 1995, TPH Energy Research noted. Money has been rotating out of energy stocks as the dollar strengthens and oil falls, and as hedge funds come under preassure to unwind positions.
Freeport-McMoRan cuts copper sales view by 1.6%(8:43 am ET)
NEW YORK (MarketWatch) -- Freeport-McMoRan Copper & Gold Inc. (FCX: news, chart, profile) on Wednesday reduced its 2008 sales outlook for copper because of a "smale-scale failure" at its Grasberg open pit in Indonesia. The mining giant's 2008 new estimated copper sales of 4.03 billion pounds are now 1.6% below previous estimates. Estimated gold sales of 1.2 million ounces are 200,000 ounces lower than previous estimates. The incident is not expected to affect the company's long-term mine plans for its PT Freeport Indonesia subsidiary, the company said. No one was injured in the incident. Freeport-McMoRan said it expects to report slightly better than expected third quarter performance from its South American operations.
Ike remains Category 1 hurricane as it moves through Gulf(8:05 am ET)
NEW YORK (MarketWatch) -- Ike remains a Category 1 hurricane on the Saffir-Simpson sale in the Gulf of Mexico near Cuba, but it could become a major hurricane as it moves into the central Gulf of Mexico, the National Hurricane Center said in its 8 a.m. ET update. At last check, the center of the storm was located over water, about 145 miles north of the western tip of Cuba, and 430 miles southeast of the mouth of the Mississippi River.
Lehman slashes annual dividend by 93%, saves $450 million(7:48 am ET)
NEW YORK (MarketWatch) -- Lehman Brothers (LEH: news, chart, profile) said it would cut its annual dividend to 5 cents a share, from 68 cents a share. The investment bank said the move would save about $450 million annually.
Stewart Enterprises net up; assesses bid, alternatives(4:12 am ET)
TEL AVIV (MarketWatch) -- Stewart Enterprises Inc., (STEI: news, chart, profile) the New Orleans provider of funeral-related products and services, reported fiscal third-quarter earnings rose 12% on 2.2% higher revenue. For the quarter ended July 31, net income reached $9.1 million, or 10 cents a share, from $8.1 million, or 8 cents a share, in the year-earlier period. Adjusted earnings were 10 cents a share against 7 cents. Weighted-average shares outstanding fell 10% to 92.4 million. Revenue rose to $130.4 million from $127.6 million. Profit margins widened in both the cemetery and funeral operations, the company said in a statement on Tuesday. Stewart also said a panel of its directors is assessing all strategic alternatives in light of Service Corp. International's (SCI: news, chart, profile) July proposal to buy Stewart for $11 a share. Service Corp. is the Houston provider of funeral-related products and services.
Kesa revenue up 14.4%, comparable sales drop(2:52 am ET)
LONDON (MarketWatch) -- U.K. electrical goods retailer Kesa Electricals (UK:KESA: news, chart, profile) said Wednesday that total group revenue rose 14.4% in the three months to the end of July, largely due to exchange rate moves. At constant exchange rates, total sales were up 3.3% and comparable sales across the business were down 4.7% for the period. Comparable sales at the group's U.K. Comet stores were down 9.9% and it said it now expects the division will make a loss in the first half of the fiscal year.
Sports Direct profit steady as markets remain difficult(2:39 am ET)
LONDON (MarketWatch) -- U.K. retailer Sports Direct International (UK:SPD: news, chart, profile) said Wednesday that trading conditions in the last 13 weeks haven't improved from the end of the last fiscal year, when the group said it was facing the toughest environment in its history. Sales in the 13 weeks to July 27 were broadly flat compared to a year earlier at 336 million pounds (4592 million) and profit was up less than 1% at 150 million pounds. Since the end of July, trading conditions have remained in line with the company's expectations, it added.
Next profit falls 13%, sees tough year ahead(2:32 am ET)
LONDON (MarketWatch) -- U.K. clothing and home furnishings retailer Next (UK:NXT: news, chart, profile) said Wednesday that its fiscal first-half net profit fell 13% to 123.3 million pounds ($217.2 million) as revenue slipped 2.4% to 1.5 billion pounds. The group said full-price comparable sales in the retail business were down 6%, while sales in its catalog business rose 2.2%. The company said it doesn't anticipate any return to growth in consumer spending in the medium term and is preparing for another tough year in 2009/10. It added its internal forecasts for full-year profit before tax remain in line with the market consensus. Most analyst forecasts for pretax profit lie in the range of 400 million pounds to 440 million pounds.
Key Tronic gets production pact from closely held Kaz(2:19 am ET)
TEL AVIV (MarketWatch) -- Key Tronic Corp., (KTCC: news, chart, profile) the Spokane Valley, Wash., provider of electronic-manufacturing services, said it expects to begin a new manufacturing program with Kaz Inc. in December and add more output from the company longer term. Closely held Kaz, Southborough, Mass., provides consumer, health-care, and home and garden products. When all Kaz manufacturing is at full output, it should add more than $25 million to annual revenue, Key Tronic said in a statement on Tuesday. Key Tronic said its primary manufacturing facility in Juarez, Mexico, would handle the Kaz work. For the year ended June 28, Key Tronic reported revenue of $204.1 million.
Tuesday, Sept. 9
Lehman to report expected results Wednesday 7:30 am ET(7:00 pm ET)
SAN FRANCISCO (MarketWatch) -- Lehman Brothers Holdings Inc. (LEH: news, chart, profile) said late Tuesday it will report its expected third-quarter results a week earlier than originally scheduled after shares of the firm fell about 45% in one day. Lehman said it will report at 7:30 am ET Wednesday and announce "key strategic initiatives."