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Monday, Dec. 8
CORRECT: Broadcom cuts view, citing recent 'cancellations'(7:34 pm ET)
SAN FRANCISCO (MarketWatch) -- Chip maker Broadcom Corp. said late Monday that it's lowering guidance for its current fourth quarter, citing "significant pushouts and cancellations" by customers. Broadcom (BRCM: news, chart, profile) said that it now expects between $1.05 billion and $1.1 billion in revenue for the quarter including the acquisition of Advanced Micro Devices Inc.'s (AMD: news, chart, profile) digital-TV business, compared with prior guidance of between $1.17 billion and $1.24 billion excluding the acquisition. In addition, Broadcom said it now expects its gross margin to be down between 105 and 130 basis points sequentially, compared with a prior forecast of gross margin falling between 50 and 75 basis points. (Corrects revenue figures).
Pep Boys third-quarter net loss narrows(6:11 pm ET)
SAN FRANCISCO (MarketWatch) -- Pep Boys-Manny, Moe & Jack (PBY: news, chart, profile) late Monday reported its third-quarter net loss narrowed to $7.3 million, or 14 cents a share, from a loss of $28 million, or 54 cents a share, in the same quarter last year. Net loss a year ago included a $50-million in pre-tax costs for an inventory write down, asset impairment and increased legal reserves, the company said. Revenue fell to $464.2 million from $528.8 million.
Danaher cuts fourth-quarter adjusted earnings outlook (4:56 pm ET)
SAN FRANCISCO (MarketWatch) -- Danaher Corp. (DHR: news, chart, profile) late Monday cut its fourth-quarter adjusted earnings outlook to $1.03 to $1.10 a share from its previous forecast of $1.17 to $1.25 a share. For 2008, the company expects adjusted earnings of $4.15 to $4.22 a share. "Global economic conditions have continued to deteriorate over the last several weeks impacting many of our customers as well as a number of our businesses. In addition, the strengthening of the dollar against other global currencies has created additional headwinds that will negatively impact our financial results," Chief Executive H. Lawrence Culp said in a statement.
FedEx cuts full-year profit outlook(4:42 pm ET)
SAN FRANCISCO (MarketWatch) -- FedEx Corp. (FDX: news, chart, profile) late Monday cut its full-year profit outlook to $3.50 to $4.75 a share as demand for its package-delivery services has weakened in the global economic slowdown. FedEx, of Memphis, Tenn., had expected to earn between $4.75 to $5.25 a share for its fiscal year that ends in May. On the upside, FedEx said it will make $1.58 a share for the quarter that ended Nov. 30, better than the $1.54 analysts had targeted, according to a FactSet Research survey.
Altera lowers fourth-quarter sales outlook (4:25 pm ET)
SAN FRANCISCO (MarketWatch) -- Altera Corp. (ALTR: news, chart, profile) said late Monday it now projects fourth-quarter sales to fall 9% to 12% from the third quarter compared with its previous outlook of 1% growth to 3% decline. The company is experiencing slower-than-expected sales across all segments, particularly in the computer and storage and consumer market segments. Altera also forecast a gross of margin of about 69%, up from around 68% previously stated.
Energy stocks rise as Chesapeake Energy rallies(9:38 am ET)
NEW YORK (MarketWatch) -- Natural gas shares led gains in the energy sector on Monday after Chesapeake Energy (CHK: news, chart, profile) scrapped plans to issue stock and announced a healthy cash position. The Amex Natural Gas Index (XNG: news, chart, profile) jumped 7.8% to 362. The Amex Oil Index (XOI: news, chart, profile) rose 3.8% to 892. Chesapeake Energy rose 28% to $14.54.
MetLife to beat Wall Street earnings target (7:11 am ET)
NEW YORK (MarketWatch) -- MetLife (MET: news, chart, profile) said it expects fourth-quarter net income of $1.50 to $2.55 a share, including investment gains of up to $1.8 billion. The results reflect, "relatively modest credit losses and substantial derivative gains," the New York-based insurer said. Analysts surveyed by FactSet Research forecast earnings of 80 cents a share, on average. With an 11% expected increase in top line results for 2008, MetLife's core businesses continued to perform extremely well during the year, despite strong economic headwinds," said C. Robert Henrikson, chairman, president and chief executive officer of MetLife. "We are well positioned for the future, though clearly we are not immune from several market factors impacting our bottom line results this quarter."
Alvarion to cut 110, or 11%, of jobs, pare manager salaries(6:50 am ET)
TEL AVIV (MarketWatch) -- Alvarion Ltd., (ALVR: news, chart, profile) the Tel Aviv provider of wireless-broadband solutions, said it would cut 110, or 11%, of its jobs, cut management salaries and reduce other expenses. The company said it would take a $3 million charge for the initiatives, which are designed to save about $15 million of costs annually. Excluding the charge, the company affirmed the outlook it provided in early November. So far in the fourth quarter, customers haven't canceled or pushed out orders, "but we see lengthening sales cycles, and we remain cautious about the potential effect of the economic climate on WiMAX-related spending decisions as we move through next year," President and Chief Executive Tzvika Friedman said in a statement on Monday.
Friday, Dec. 5
Chesapeake Energy down 12% as natural gas shares swoon(11:02 am ET)
NEW YORK (MarketWatch) -- Chesapeake Energy Corp. (CHK: news, chart, profile) fell 12% to $10.42 a share as a leading decliner among shares of natural gas producers on Friday. The Amex Natural Gas Index (XNG: news, chart, profile) swooned more than 7% to 312 as the laggard among major energy indexes.
Energy stocks retreats with broad market(9:40 am ET)
NEW YORK (MarketWatch) -- Energy stocks retreated along with the broad market and crude oil prices after the worst monthly U.S. job loss in 34 years. The Amex Oil Index (XOI: news, chart, profile) fell 1.4% to 832. The Amex Natural Amex (XNG: news, chart, profile) dropped 3% to 327. Among energy stocks in the spotlight, U.S. listed shares of Sinopec (SNP: news, chart, profile) fell 18 cents to $59.98. PetroChina (PTR: news, chart, profile) rose 87 cents to $79.67. China plans next month to raise tax on regular gasoline by five fold and diesel fuel tax by eight fold, in a move to take advantage of falling crude prices and encourage energy conservation, state-run media reported.
Sonoco cuts earnings outlook(8:38 am ET)
NEW YORK (MarketWatch) -- Sonoco (SON: news, chart, profile) on Friday lowered its fourth-quarter net income target to 48-52 cents a share from 60-64 cents a share. Analysts expected earnings of 61 cents a share, according to a survey by FactSet Research. "While sales volume and profitability have held up in our Consumer Packaging segment so far in the fourth quarter of 2008, our businesses that serve industrial markets are seeing a much larger than expected decline in volume and reduced profitability as a result of significantly slowing global economic conditions," Sonoco said.
CMI cutting 500 jobs, or 3.5% of work force(8:13 am ET)
NEW YORK (MarketWatch) -- Cummins Inc. (CMI: news, chart, profile) said Friday it would cut 500 jobs, 3.5% of the Columbus, Ind. manufacturer's work force. The maker of power generation and fuel systems cited deterioration in the U.S. economy and many other key markets around the world.
Brown-Forman posts rise in quarterly profit, raises outlook(7:14 am ET)
NEW YORK (MarketWatch) -- Brown-Forman Corp. (BF.B: news, chart, profile) said Friday its fiscal second-quarter profit rose to $143 million, or 94 cents a share, from $129 million, or 83 cents a share, in the same quarter a year before. However, analysts had expected earnings on average of 96 cents a share, according to a FactSet Research survey. Revenue for the quarter was $935 million compared to $893 million in the year-ago period. The makers of Jack Daniel's and Southern Comfort liquor and other products also raised its profit forecast for fiscal 2009 to between $3.00 and $3.20 a share, due to an estimated 12 cents a share net gain on the expected sale of Bolla and Fontana Candida.
Johnson Outdoors swings to loss(6:28 am ET)
LONDON (MarketWatch) -- Johnson Outdoors (JOUT: news, chart, profile) said it swung to a fourth-quarter ending Oct. 3 loss of $74.6 million, or $8.18 a share, after recording asset impairment charges and a deferred tax asset valuation allowance. It earned $900,000, or 10 cents a share, in the prior-year quarter. Sales slipped to $81.8 million from $87.3 million, with marine eletronics revenue down on weak boat markets and diving and watercraft revenue also falling. It added it was intensifying efforts to reduce operating costs, working capital and capital spending by more than $30 million combined, including by reducing its headcount by 7%.
Big Lots' third-quarter earnings fell 15%(6:11 am ET)
LONDON (MarketWatch) -- Closeout retailer Big Lots (BIG: news, chart, profile) said third-quarter net income fell 15% to $12.2 million from $14.3 million earned in the year-earlier quarter. Earnings from continuing operations came in at 15 cents a share compared to 14 cents a share a year earlier. Revenue for the period fell 0.9% to $1.02 billion. Same-store sales fell 0.2%. In the fourth quarter the retailer said it expects earnings from continuing operations in the range of 90 cents to 99 cents a share.
U.K. builder Berkeley reports 10% profit fall(2:26 am ET)
LONDON (MarketWatch) -- U.K. builder Berkeley Group (UK:BKG: news, chart, profile) said profit in the first half to Oct. 31 dropped 10% to 57 million pounds ($84 million), while revenue rose 2.5% to 452.6 million pounds. The builder, which didn't take any land write-downs, said sales reservations are down 55% from their historic average. It sold 968 units at an average price of 399,000, compared to 1,630 units at an average price of 245,000, as it sold more Central London sites and fewer affordable units. But it warned it's increasingly difficult to secure forward sales while there is uncertainty over the banks' future lending criteria and valuation metrics. "Until resolved, this uncertainty will result in a lower level of production, as Berkeley has always looked to match supply to demand on its sites," the company said.
Thursday, Dec. 4
Novell reports fourth-quarter net loss of 5 cents a share (4:30 pm ET)
SAN FRANCISCO (MarketWatch) -- Novell Inc. (NOVL: news, chart, profile) late Thursday reported a fourth-quarter net loss of $16.3 million, or 5 cents a share, compared with a net loss of $17.9 million, or 5 cents a share, in the same quarter a year earlier. The company reported a loss of 5 cents a share from continuing operations. Revenue slid marginally to $244.7 million from $244.9 million, the provider of open source software for businesses said. Analysts surveyed by FactSet Research had forecast earnings of 4 cents a share on revenue of $247.8 million. The company is targeting no less than 10% operating margin, on an adjusted basis, in fiscal 2009.
Guess profit rises 11% on solid sales growth (4:29 pm ET)
SAN FRANCISCO (MarketWatch) -- Clothing and apparel maker Guess? Inc. (GES: news, chart, profile) reported late Thursday fiscal third-quarter 2009 net income of $64 million, or 69 cents a share, up from $58.3 million, or 62 cents, a year ago. Revenue for the three months ended Nov. 1 rose 12.5% to $527.9 million. Analysts polled by FactSet Research had predicted the Los Angeles-based company would turn in a profit of 63 cents a share on $515 million in sales. The company said it sees earnings of $2.27 to $2.32 a share for the fiscal year ending Jan. 31, 2009, compared with analysts' estimates of $2.41. Guess shares rose 10 cents, or 0.7%, to close at $13.96 ahead of the report. They surged another 2.9% in after-hours trade.
Starbucks warns won't hit Wall Street earnings target(12:12 pm ET)
SAN FRANCISCO (MarketWatch) -- Starbucks (SBUX: news, chart, profile) Chief Financial Officer Troy Alstead said Thursday the coffee-shop chain is facing deteriorating comparable store-sales and the company won't meet Wall Street's profit target for the current quarter of 21 cents a share. Speaking to analysts in New York, Alstead didn't indicate what Starbucks will earn for the December quarter. He said sales at stores open at least one year have fallen 9% since the quarter began Sept. 29. While store traffic had perked up in October, sales weakened in November, he explained. The CFO said it was "too early" to predict fiscal first-quarter sales. And he said it wouldn't be "prudent" to give full-year profit targets. Starbucks did tell analysts it plans to cut an additional $200 million in costs over the next year, raising its expense-plan cuts to $400 million. Starbucks shares rose almost 2% to $8.78 in midday trading.
Safeway forecasts store traffic to improve in 2009(10:23 am ET)
SAN FRANCISCO (MarketWatch) -- Safeway Inc. (SWY: news, chart, profile) , one of the nation's largest grocery-store chains, on Thursday forecast its 2009 earnings will be in the range of $2.34 to $2.44 a share. Wall Street expects $2.36 a share, according to a FactSet Research analyst survey. Safeway said identical store sales, a key barometer of the supermarket chain's health, should be between 2% and 3%, excluding sales at its gas pumps. This signals that Safeway expects to improve store traffic despite the weak economy. For 2008, Safeway is targeting identical store sales growth of 1% to 2%. The grocer is in the midst of cutting corporate costs and prices for its food. Safeway operates 1,738 stores in the U.S. and Canada. Its regional chains include Vons, Randalls, Genuardi's and Dominick's. Safeway shares rose more than 2% in early trading. The stock is down 35% for the year.
Energy stocks move into the red(9:37 am ET)
NEW YORK (MarketWatch) -- Energy stocks fell with both the broad market and crude oil futures on Thursday. The Amex Oil Index (XOI: news, chart, profile) dropped 1.8% to 878. The Amex Natural Gas Index (XNG: news, chart, profile) declined 1.7% to 370. Exxon Mobil (XOM: news, chart, profile) fell 1% to $78.09. A spokesman for Exxon Mobil's Mobil Producing Nigeria said Thursday one person was killed during an attack of a convoy in the southern Nigerian state of Akwa Ibom. "The victim is not an MPN employee and his identity cannot be ascertained at this time," the company said, according to a report by AFP. Separately, shares of Murphy Oil (MUR: news, chart, profile) dropped 27 cents to $40.23. The company drew an upgrade to neutral from underweight at JP Morgan.
Ross same-store sales sink 2% in November, beat estimates(8:59 am ET)
NEW YORK (MarketWatch) -- Ross Stores Inc. (ROST: news, chart, profile) said Thursday its November sales at stores open at least one year fell 2%. Analysts, on average, had expected the same-store sales to fall 4.1%, according to Thomson Reuters. Total sales for the four weeks ended Nov. 29 rose 4% to $568 million.
Nordstrom same-store sales sink 15.9% in November(8:47 am ET)
NEW YORK (MarketWatch) -- Nordstrom Inc. (JWN: news, chart, profile) said Thursday its November sales at stores open at least one year fell 15.9%. Analysts, on average, had expected the same-store sales to fall 17.9%, according to Thomson Reuters. Total sales for the four weeks ended Dec. 1 fell 12.1% to $707 million. The company said that due to the timing of the Thanksgiving holiday, its results for November 2008 were negatively impacted due to one less week of holiday shopping compared with November 2007.
Viacom to lay off 850, or 7% of work force(8:47 am ET)
NEW YORK (MarketWatch) -- Viacom Inc. (VIA: news, chart, profile) , (VIAB: news, chart, profile) on Thursday said it would book a charge of $400 million to $450 million, or 42-48 cents a share, in its fourth quarter as it lays off about 850 employees or 7% of its work force. The New York-based media company said it's suspending senior management salary increases in 2009. The staffing and compensation actions and write-downs are expected to result in pre-tax savings of $200 million to $250 million in 2009. "We are moving rapidly to adapt to the challenges presented by the current economic environment," the company said.
Target sees December same-store sales declines(8:45 am ET)
NEW YORK (MarketWatch) -- Target Corp. (TGT: news, chart, profile) said Thursday it expects December sales at stores open longer than one year to show a mid-single digit to low double-digit decline. The discount retailer said the month's results will reflect the challenging and volatile economic environment.
Chico's reports 15.4% drop in sales (8:44 am ET)
NEW YORK (MarketWatch) -- Chico's FAS Inc. (CHS: news, chart, profile) said Thursday its November sales at stores open at least one year fell 15.4%, the exact figure predicted by analysts, according to Thomson Reuters. Net sales for the four weeks ended Nov. 29 fell 11.3% to $118.5 million.
Kohl's Corp. November same-store sales down 17.5%(8:41 am ET)
NEW YORK (MarketWatch) -- Kohl's Corp. (KSS: news, chart, profile) said Thursday that sales at stores open at least a year fell 17.5% in November, compared to the target for a loss of 16.6% in a survey of Wall Street analysts by Thomson Reuters. Total sales dipped 13.7% to $1.75 billion. "November sales results were as expected, affected by both lower traffic than last year, and a significant sales shift due to a later Thanksgiving," the Menomonee Falls, Wis. retailer said. "Post-Thanksgiving results have been significantly stronger than our prior trend, driven by planned strong promotion."
J.C. Penney November same-store sales fall 11.9%(8:36 am ET)
NEW YORK (MarketWatch) -- J. C. Penney Company Inc. (JCP: news, chart, profile) said Thursday that comparable store sales decreased 11.9% for the four-week period ended Nov. 29. Wall Street analysts surveyed by Thomson Reuters expected a decline of 12.7%. Total company sales in November decreased 11.5% to $1.8 billion. "Black Friday shopping at JCPenney was strong across all areas of the country with customers responding well to the company's gift assortment and strong value proposition," the Plano, Texas company said.
TJX same-store sales down 12% in November (8:25 am ET)
NEW YORK (MarketWatch) -- TJX Cos. (TJX: news, chart, profile) said Thursday its November sales at stores open at least one year fell 12%, with a 6% decline on a constant currency basis. Analysts, on average, had expected the same-store sales to fall 8.4%, according to Thomson Reuters. Total sales for the four weeks ended Nov. 29 fell 9% to $1.6 billion.
CORRECT: Abercrombie same-store sales down 28%(8:26 am ET)
NEW YORK (MarketWatch) -- Abercrombie & Fitch Co. (ANF: news, chart, profile) said Thursday that sales at its stores open at least a year dropped 28%, compared to the target of 25.6% in a survey of analysts by Thomson Reuters. Total November sales dropped 24% to $267.3 million. (Corrects estimate figure.)