Earning Plays

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Monday, Jan. 12
CSX expects fourth-quarter earnings of 63 cents a share(5:02 pm ET)
SAN FRANCISCO (MarketWatch) -- CSX Corp. (CSX: news, chart, profile) late Monday said it expects fourth-quarter earnings to be about 63 cents a share, including a noncash impairment charge of around 27 cents a share related to the write-down of its investment in The Greenbrier resort in West Virginia. Excluding one time items, earnings are likely to be about 90 cents a share. Revenue is projected to total $2.7 billion on the back of higher yields and fuel recovery, the transportation company said. Analysts surveyed by FactSet Research are forecasting the company to earn $1 a share on revenue of $2.76 billion in the fourth quarter. CSX plans to release its operating results after the market closes on Jan. 20.
Alcoa swings to loss as demand, sales slump(4:14 pm ET)
SAN FRANCISCO (MarketWatch) - Alcoa Inc. (AA: news, chart, profile) swung to an expected fourth quarter loss Monday as it took hefty restruturing charges to deal with weak global demand for aluminum. Alcoa said it lost $1.2 billion, or $1.49 a share. In the year-earlier period, the aluminum giant earned $632 million, or 75 cents a share. Sales fell to $5.7 billion from $7 billion. Alcoa is in the midst of cutting 15,000 jobs, curbing more production, and slashing its capital budget to make it through the downtrodden economy. Alcoa shares have lost 68% in value over the past year, making it one of the worst performers among the 30 components that make up the Dow Jones Industrial Average. The stock closed at $10.06 on Monday.
S&P downgrades Waddell & Reed to sell(4:04 pm ET)
NEW YORK (MarketWatch) -- Standard & Poor's on Monday downgraded its recommendation on asset manager Waddell & Reed Financial (WDR: news, chart, profile) to sell from hold. Matthew Albrecht, S&P analyst, said he sees a year-on-year fall in assets under management of more than 25%, "led by equities, and pressure on the management fee rate." He added, "We look for lower average asset balances to pressure results throughout 2009." Albrecht also cut earnings estimates per share "following sharp equity market declines" to $1.38 from $1.51 in 2008 and to $1.18 from $1.60 for 2009. Waddell & Reed will announce its fourth-quarter results on Jan. 27. Shares of Waddell & Reed were down 7.4% in late trading Monday, at $15.22.
Energy stocks retreat on falling crude prices(9:36 am ET)
NEW YORK (MarketWatch) -- Hess Corp. (HES: news, chart, profile) led the Amex Oil Index (XOI: news, chart, profile) into the red on Monday morning as petroleum producers felt the sting of lower oil prices. Hess Corp. fell 3.7% to $53.44. Integrated oil giant BP (BP: news, chart, profile) dipped 2.4% to $45.99. The Amex Oil Index dropped 1.6% to 963. The Amex Natural Gas Index (XNG: news, chart, profile) dropped 1.3% to 384. Crude futures fell $2.57 to $38.26.
Constellation to sell off low-end spirits(9:34 am ET)
CHICAGO (MarketWatch) -- Constellation Brands (STZ: news, chart, profile) is selling a raft of its low-end spirits brands to New Orleans-based Sazerac for $334 million, the alcohol behemoth said Monday. The deal, which is expected to produce after-tax proceeds of about $210 million, includes $274 million in cash and $60 million in financing and will help Constellation pay down debt. Among the brands it is getting rid of are Barton, Skol, Mr. Boston, Fleischmann's, Chi-Chi's pre-mixed cocktails and Montezuma tequila, with total volume of 10 million cases and revenue of $200 million a year. The company, which is also the world's largest wine producer, will keep its Svedka vodka, Black Velvet Canadian whisky and Paul Masson Grande Amber brandy brands, which have combined annual volume of about 5 million cases.
Landry's scraps plan to go private, to refinance debt(8:12 am ET)
NEW YORK (MarketWatch) -- Landry's Restaurants Inc. (LNY: news, chart, profile) said Monday it's cancelling a plan to go private and instead will pursue alternative financing for $400 million in senior notes. The Houston eatery chain cited "unusual circumstances" with its lead lenders Jefferies Funding LLC, Jefferies & Company, Inc., Jefferies Finance LLC and Wells Fargo Foothill and the Securities and Exchange Commission. The company expects the closing of the refinancing will occur prior to the end of February 2009. "We felt that it was in the best interests of our stockholders to terminate the Merger Agreement in order to maintain the alternative financing," the company said. Landry's shares closed at $12.35 on Friday, close to the buyout offer of $13.50 a share from the company's CEO, Tilman J. Fertitta.
Average U.S. retail gasoline prices edge up toward $1.80(7:50 am ET)
NEW YORK (MarketWatch) -- Average U.S. retail gasoline prices rose to $1.79 a gallon over the weekend, according to the AAA Daily Fuel Gauge Report. A month ago, gasoline sold for $1.66 a gallon. A year ago, it sold for $3.08 a gallon.
Aladdin Knowledge Systems agrees to buyout at 20% premium(7:09 am ET)
NEW YORK (MarketWatch) -- Aladdin Knowledge Systems Ltd. (ALDN: news, chart, profile) on Monday said it will be acquired by an investor group lead by Vector Capital, a private equity firm specializing in the technology industry, in a transaction valued at approximately $160 million. Aladdin shareholders will receive $11.50 a share in cash, a 20% premium over the stock's closing price of $9.60 a share on Friday. Aladdin's announced on Jan. 5 that it was in continuing discussions with Vector Capital regarding a possible strategic transaction. Wells Fargo (WFC: news, chart, profile) has committed to provide debt financing in support of the acquisition.
UBS shares drop after report of heavy losses(4:36 am ET)
LONDON (MarketWatch) -- Shares in Swiss banking giant UBS (UBS: news, chart, profile) (CH:002489948: news, chart, profile) fell around 5% Monday after the SonntagsZeitung newspaper reported Sunday that the firm may report a fourth-quarter loss of around 8 billion Swiss francs ($7.2 billion). The result in the final quarter would take the bank's losses for the year to over 20 billion francs, the newspaper said. UBS reported a small profit for the third quarter, but warned at the time that the last few months of 2008 would be tough as previous gains on the value of its own debt were reversed and weak global markets limited its ability to earn fees from wealthy clients.
EpiCept to end drug-discovery efforts, cut 65% of jobs(1:38 am ET)
TEL AVIV (MarketWatch) -- EpiCept Corp., (EPCT: news, chart, profile) the Tarrytown, N.Y., drugmaker, said on Monday that it is ending its drug-discovery activity, cutting 65% of its workforce, and focusing on registering Ceplene for marketing in the U.S. and Canada and on clinical-development programs. The company will cut most of the jobs immediately and the rest over six months, taking a first-quarter charge of $2.5 million to close a San Diego facility. The moves will save at least $5.5 million a year, EpiCept said. The company said it would offer its proprietary drug-discovery technology for sale or seek a partner for it. Ceplene, a drug that's been cleared for marketing in Europe, treats acute myeloid leukemia.
Friday, Jan. 9
CVS Caremark shares fall 10% on 2009 outlook(10:05 am ET)
SAN FRANCISCO (MarketWatch) -- CVS Caremark Corp. (CVS: news, chart, profile) shares fell 10% early Friday after the big drug-store chain projected a 2009 profit below Wall Street's expectations. It also warned its same-store sales growth for the first quarter will slow. For 2009, CVS said it will earn $2.53 to $2.61 a share, before certain charges, compared to current analysts' estimate of $2.68 a share, according to FactSet Research. For the first quarter, CVS said same-store sales -- a gauge of retail health -- will grow between 1% to 3%, below the average analyst estimate of 3.1%. It said earnings before charges will be in the range of 53 cents to 55 cents a share. CVS stuck by its 2008 profit outlook. At last check, CVS shares traded at $26.26, a loss of $3.08.
Builder stocks fall after KB Home results, job report(10:04 am ET)
BOSTON (MarketWatch) -- Home-builder shares were down in early dealings Friday after the Labor Department said the economy shed more than a half-million jobs in December, capping a year in which the U.S. saw its biggest job loss since 1945. KB Home (KBH: news, chart, profile) shares lost as much as 10% on Friday morning after the company said its quarterly revenue fell by more than half and warned the housing market could worsen in 2009. The iShares Dow Jones U.S. Home Construction Index Fund (ITB: news, chart, profile) , and ETF tracking builder stocks, was down about 6% in recent action. Lennar Corp. (LEN: news, chart, profile) shares lost 20%.
Retail gasoline prices up 10 cents in past week to $1.78(9:17 am ET)
NEW YORK (MarketWatch) -- Average U.S. retail gasoline prices rose to $1.78 a gallon, up from $1.68 a gallon a month ago, according to the AAA Daily Fuel Gauge Report. A year ago, gasoline sold for $3.10 a gallon.
Stryker sees double-digit gains in 2009 earnings per share(9:13 am ET)
NEW YORK (MarketWatch) -- Medical products maker Stryker Corp. (SYK: news, chart, profile) said it expects 2008 adjusted earnings of $2.82 to $2.84 a share. Wall Street analysts expect 2008 earnings of $2.83 a share, according to a survey by FactSet Research. The Kalamazoo, Mich. company said fourth-quarter revenue rose 3.6% to $1.72 billion, in line with analyst targets. Stryker expects adjusted 2009 earnings of $3.12 to $3.22 a share, compared to the analyst target of $3.15 a share. "Despite great uncertainty in the global economy and continued pressure on hospital capital expenditure budgets, we believe the strength of our global franchises combined with our focus on cost controls will allow us to deliver solid top line growth and double-digit EPS gains in 2009," Stryker said.
KB Home reports narrower quarterly loss(8:14 am ET)
BOSTON (MarketWatch) -- KB Home (KBH: news, chart, profile) before Friday's opening bell reported a fourth-quarter net loss of $307.3 million, or $3.96 a share, compared with a loss of $772.7 million, or $9.99 a share, in the year-earlier period. The home builder said total revenue dropped to $919 million from $2.07 billion. "Housing market and general economic conditions in 2009 are expected to remain difficult or possibly worsen as the timing of any meaningful recovery for the home-building industry remains uncertain," said Jeffrey Mezger, KB Home's chief executive, in the earnings release.
R.R. Donnelley lowers FY2008 adjusted earnings view(6:44 am ET)
LONDON (MarketWatch) -- R.R. Donnnelley & Sons Co. (RRD: news, chart, profile) , a provider of print products and services, cut its 2008 adjusted earnings guidance to the range of $2.80 to $2.90 a share, compared to an earlier forecast of $3.08 to $3.11 a share. The new guidance is based in expected revenue for the year of $11.5 billion. R.R. Donnelley sees fourth-quarter adjusted earnings at 51 cents to 61 cents a share and revenue of roughly $2.7 billion. The company said it plans to continue to pay the present quarterly dividend of 26 cents a share. It also cautioned investors that because of the uncertainty in the global economic climate, it doesn't plan to provide earnings guidance for 2009 at its Feb. 25 conference call.
Greenbrier Cos. swing to $3.3 mln. first-quarter loss(6:35 am ET)
LONDON (MarketWatch) -- Rail transportation equipment maker The Greenbrier Cos. (GBX: news, chart, profile) on Friday said it swung to a first-quarter net loss of $3.3 million, or 20 cents a share, compared to net earnings of $2.6 million, or 16 cents a share, in the same period of the previous year. First-quarter results included a 4-cent, non-cash charge for "interest and foreign-exchange expense." Consensus expectations were for earnings of 15 cents a share, according to a survey of seven analysts by FactSet Research. The company said first-quarter revenues were $256 million, down $30 million from the first quarter of the previous year. Greenbrier CFO Mark Rittenbaum said the company has sufficient liquidity to meet business needs and little exposure to near-term debt rollovers. The Lake Oswego, Ore.-based company also said it would pay a quarterly cash dividend of 4 cents a share.
Home Inns sees quarterly revenue at low end of guidance(6:32 am ET)
LONDON (MarketWatch) -- Chinese hotel chain Home Inns & Hotels Management Inc. (HMIN: news, chart, profile) on Friday warned that the global economic downturn had led to reduced business travel activities in China and a contraction in revenue per available room in the fourth quarter. RevPar fell 9% in that quarter and comparable RevPar dropped 0.9% compared to the same period a year earlier. As a result, the company now expects fourth-quarter revenue at the lower end of its previously forecast range of 535 million yuan ($78 million) to 555 million yuan.
Integra Lifesciences warns on dollar rise, hospital spending(6:23 am ET)
LONDON (MarketWatch) -- Integra LifeSciences (IART: news, chart, profile) said 2008 and 2009 earnings and revenue will be below previous guidance. Revenue in 2008 is seen between $654 million and $655 million, or 1% below prior guidance. Earnings per share and adjusted earnings per share will be lower than previous guidance, which the company blamed on a rapid strengthening of the U.S. dollar and a contraction in hospital capital spending. It now seens 2009 revenue between $720 million and $740 million, against a prior view of $735 million to $755 million. Adjusted earnings per share are seen between $2.20 and $2.40 a share, compared to $2.35 to $2.55 it previously saw.
Colfax unveils 2009 guidance and preliminary 2008 figures(6:15 am ET)
LONDON (MarketWatch) -- Colfax Corp. (CFX: news, chart, profile) , a provider of engineered fluid handling products and systems, said it expects fiscal 2009 earnings to be in the range of 80 cents to 87 cents a share and adjusted net earnings of between $1.10 and $1.17 a share, excluding the impact of asbestos-related items. The company sees organic sales growth excluding the impact of exchange-rate fluctuations and acquisitions, in the range of 1% to 3%. Colfax sees 2008 sales at roughly $605 million, up 19%.
Postbank again warns of loss for 2008(5:24 am ET)
LONDON (MarketWatch) -- Deutsche Postbank (DE:800100: news, chart, profile) said Friday that it will post a "significant" loss for 2008 after completely eliminating equity holdings from its investment portfolio in the fourth quarter. The announcement reiterated a warning in November that its earnings would be hit hard in the short-term by plans to slash risk and unwind its investments. The bank said Friday that its actions would stabilize its Tier 1 capital ratio and significantly improve its risk profile. Shares in the bank fell 2.9% in early Frankfurt trading.
BBA Aviation shares jump after reduction in net debt(3:21 am ET)
LONDON (MarketWatch) -- Shares in BBA Aviation (UK:BBA: news, chart, profile) rose 10.1% in early London trading after the aviation services and system support group said underlying net debt at the end of 2008 is likely to be lower than expected thanks to a continued focus on cash generation. The group said trading performance for the year as a whole will be in line with market expectations. BBA said it has around 200 million pounds ($304 million) of undrawn facilities available going into 2009 and that most of its banking facilities are committed until 2012.
Natixis shares drop after report of heavy losses(3:17 am ET)
LONDON (MarketWatch) -- Shares in France's Natixis (FR:012068: news, chart, profile) dropped 4.4% in early Paris trading after Les Echos newspaper reported the investment banking group could report a loss of between 1.5 billion euros ($2.1 billion) and 2 billion euros for 2008. The losses mean the bank could also need a further capital injection, the report added.
Misys sees profit growth as finance chief departs(2:38 am ET)
LONDON (MarketWatch) -- U.K. software and services provider Misys (UK:MSY: news, chart, profile) said Friday that it expects revenue for the six months to Nov. 30 "to exceed high teens growth" and adjusted operating profit for the period to exceed the 35 million pounds ($53 million) it reported a year earlier. Pro forma comparable revenue growth, which removes the impact of the acquisition of Allscripts Healthcare Solutions, will be in the mid-single digits, the company said. Total order intake is also expected to be up slightly from 198 million pounds a year earlier. Misys also said that its Chief Financial Officer Jim Malone has resigned by mutual agreement and will step down from the board with immediate effect. James Gelly has been appointed as acting chief financial officer.