Monthly Archives: July 2007

Cramer Goes To War (LMT, ATK, RTN)

On tonight’s MAD MONEY on CNBC, Jim Cramer said that he thinks defense and aerospace is becoming the seventh bull market.  He thinks that the recent huge contract to Saudi Arabia for military orders will be a big win.  Saudi Arabia gets $20 Billion in defense and over $30 Billion is being granted to Israel in US defense grants.  Cramer also thinks Democrats would spend a lot on defense to look strong and we spend more than anyone else by far for defense.  Cramer gave Lockheed Martin (NYSE:LMT) last week.  He’s got two more great US defense contractor plays for the sector:

The first play is Alliant Tech (NYSE:ATK) as the largest bullet manufacturer and is in big into projectiles of all sorts.  He thinks it is cheap at 1.3-times growth and he thinks numbers could come up with an upside surprise because of its share buyback plan.  This reports Thursday, so Cramer noted to only put on a half position so you don’t have the earnings exposure as bad.  Alliant was my number one defense stock for the BAIT SHOP in takeover candidates (see post here), although I haven’t updated that position in a while.

Cramer’s favorite defense play is Raytheon (NYSE:RTN) because it is the most leveraged name to defense spending, and because it is the cheapest according to his growth rate over P/E analysis.  He isn’t looking for a buyout or anything, but it won two big contracts in June that will help with visibility.  It also raised fiscal guidance and has a great balance sheet with debt retirement and share buybacks.

Jon C. Ogg
July 31, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: July 31, 2007 – 5:52 pm in Cramer, Defense, , , , , , ,

Analysts Close To Assigning Blackstone Ratings (BX)

If you have followed the Blackstone Group L.P. (NYSE:BX) units on a post-IPO basis, then you will know it is almost impossible to cover without noting how the listed unit has traded lower and lower.  But let’s get past the past the potential taxation changes that may be imposed and the obvious credit crunch that all private equity firms are facing.  The ‘underwriter’s quiet period’ is basically up, so brokerage firms that participated in the underwriting of the IPO can begin initiating coverage of the units with their equivalents of "Buy, Sell, or Hold."

Underwriters have not been able to let their analysts at the brokerage firms initiate coverage because of those quiet period dates creating a coverage blackout.  A contact at Banc of America has said the quiet period ends today for research analysts and a call into John Ford at Blackstone yielded the same answer.  Unfortunately, telephone calls into syndicate desks at other underwriters gave mixed results and it wouldn’t be surprising if some of the reports with coverage initiation from brokerage firm analysts don’t make it out until next week.

It will be interesting to see is just how the "initiations of coverage" will come out from the slew of analysts that were in the syndicate.  Bear Wagner, a Bear Stearns Cos. specialist operation, is the listed NYSE specialist.  Morgan Stanley and Citigroup were the lead underwriters; and the list of co-managers was huge: Merrill Lynch, Lehman, Credit Suisse, ABN AMRO, Deutsche Bank, J.P.Morgan, Lazard, Banc of America, Bear Stearns, UBS, Goldman Sachs, Wells Fargo, Nikko Citigroup, and SEB Enskilda.  This doesn’t mean that all of the underwriters will start coverage on the same day and it doesn’t mean they will all line up with Buy or Hold ratings.  If post-IPO trading history is static then there could be many mixed analyst calls, but frankly making ANY prediction or assumption on something unique as a private equity analyst rating is something that hasn’t really had many comparisons. 

When these analyst reports and ratings start coming out, you can probably bet that Blackstone will again command much of the media time.  Interestingly enough, this may be what has acted as a floor over the last few days.  Shares hit their lows back on last Thursday and have managed to stay above those lows during the weak markets since then.  Stay tuned Wednesday, because this could easily be one of the focal stocks that gets much of the media attention again.  Blackstone itself is also in its own current quiet period ahead of its upcoming earnings report.

Jon C. Ogg
July 31, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: July 31, 2007 – 4:43 pm in Analyst Calls, Brokerage Firms, Financial Stocks, IPOs, Private Equity, Research, , , , , ,

SiRF Technology Goes Its Own Way (SIRF, NVT)

SiRF Technology Holdings Inc. (NASDAQ:SIRF), a Global Positioning Systems chip maker, isn’t following quite the same lead of NAVTEQ (NYSE:NVT) in after-hours trading.  It is possible that the street read the GAAP EPS headline number rather than the non-GAAP, although the revenues look a tad light.

The company posted $0.23 non-GAAP EPS on revenues of $70.6 million, and gross margins of 54.6%.  Unfortunately, Wall Street was looking for $0.23 EPS on $71.5 million in revenues.  The share calculation was up to 56.5 million shares from the prior 56 million shares from Q2 2006.

Total cash, cash equivalents and short-term investments were $211.0 million at June 30, 2007, compared with $170.2 million at December 31, 2006. Long-term investments were $2.0 million at June 30, 2007, compared with $26.4 million at December 31, 2006.  Shares are down about 7% in after-hours trading, and unfortunately that will put shares within 10% of its 52-week lows.  We’ll have to see how this trades tomorrow morning when it is more liquid before passing any final judgement.

Jon C. Ogg
July 31, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: July 31, 2007 – 4:00 pm in Earnings, Transports, , , , ,

MySpace And Facebook: No Traffic In Asia

comScore came out with a little study on the geographic spread of the users of social networking sites. Perhaps the most striking point is that the two largest properties, MySpace (NWS) and Facebook, have relatively few visitors in Asia.

MySpace had over 114 million unique visitors in June, up 72% over the course of a year.

Facebook had over 52 million uniques up a fairly astonishing 270%.

But, to Asia. Only 8% of MySpace’s viisitors and 7% of Facebook’s users are from Asia. Given the importance of the region, those number are very light

Smaller social network Friendster has 88% of its visitors in Asia. Maybe Baidu will buy them.

Douglas A. McIntyre

Posted on: July 31, 2007 – 3:46 pm in Uncategorized,

NAVTEQ Guides Itself Up Wall Street

Earnings per share were $0.41 diluted, compared to $0.25 in the second quarter of 2006; Revenue in the quarter rose 49% over the second quarter of 2006 to $202.3 million.  First Call estimates were only $0.27 EPS & $180.25M revenues.

Judson Green, President & CEO: "Our exceptional second quarter results and strong first half performance give us great momentum as we enter the second half of the year…. We are particularly excited by the surging growth we have seen in maps for portable devices and the relative stability of our automotive business despite unfavorable car sales trends in our core geographies."

Revenue from NAVTEQ’s Europe, Middle East & Africa (EMEA) operations totaled $117.6 million in the quarter.  The company is RASING GUIDANCE:  For the fiscal year 2007, NAVTEQ expects revenue of $780 million to $795 million and earnings per diluted share of $1.45 to $1.50 (FIRST CALL ESTIMATES ARE Fiscal 2007 $1.33 EPS & $747.8M revenues). These ranges assume an effective worldwide tax rate of approximately 29%, an average U.S. dollar/euro exchange rate of $1.35, and average diluted shares outstanding of approximately 99.6 million on a full year basis.

This is higher guidance for the year, although if you do the math it looks like most of the gains are coming from this quarter just reported.  Traders are giving this the thumbs up vote with a gain of more than 6% in after-hours trading.

Jon C. Ogg
July 31, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: July 31, 2007 – 3:43 pm in Earnings, Transports, , ,

Whole Foods Posts Whole Earnings (WFMI, OATS)

Whole Foods Market, Inc. (Nasdaq:WFMI) has posted $0.35 EPS diluted on sales of $1.51 billion.  The organic food grocer saw 14% ending square footage growth and a 7.0% increase in comparable store sales on top of a 9.9% increase in the prior year. The negative impact on comparable store sales growth of Easter shifting from the third quarter last year to the second quarter this year was approximately 76 basis points in the quarter. Identical store sales (excluding four relocated stores and two major expansions) increased 5.8%.

The short version is that consensus estimates are $0.33 EPS on $1.54 Billion in revenues.  The company also said it spent $100 million in share buybacks and still has another $100 million that can be spent for repurchases.  The Company also expanded its existing $100 million revolving credit line to $200 million during the quarter.  Whole Foods plans 18 to 20 new store completions this year.

For fiscal year 2007, on a 52-week to 52-week basis, the Company expects total sales growth of 13% to 17% and comparable store sales growth of 6% to 8%.  For fiscal year 2007, the Company expects operating income before pre- opening and relocation costs as a percentage of sales to be in line with its 5.9% results year to date.  Longer term, the Company’s goal is to reach $12 billion in sales in fiscal year 2010.

Shares are now trading up 9% in after-hours trading, and you can bet there is some short covering.  The Mackey blogging issues mostly came up after the cut-off date here on these results, although that is still being deemed more of a stock and corporate issue rather than a brand issue.  The company has said it  expects to receive a court ruling bythe middle of August regarding its proposed buyout of Wild Oats (NASDAQ:OATS).  John Mackey is also the one giving the quotes in the press release, so it doesn’t look like he’s planning on going away any time soon.  So far this report is being very well received despite the ongoing issues over the last month. 

Jon C. Ogg
July 31, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: July 31, 2007 – 3:27 pm in Earnings, Food, , , , ,

Chipotle Mexican Grill (CMG) Will Host A Party All Night

Chipotle Mexican Grill (CMG) quarterly revenue increased 33.9% to $274.3 million on comparable restaurant sales increased 11.6%. Net income rose 85.1% to $20.0 million and diluted earnings per share increased 81.8% to $0.60.

The analysts that follow the stock were looking for EPS of $0.45 on revenues of $262.9 million

For the full year 2007, management is updating its expectations for comparable restaurant sales by increasing the forecast to the high single to low double digit range.

Management also continues to expect the following for 2007:

  • 110 – 120 new restaurant openings
  • Non-cash stock compensation expense of approximately $8.0 to $8.5 million which includes 10 months of expense for the 2007 grants
  • An effective tax rate of approximately 38.0%
  • Diluted weighted average common shares outstanding of approximately 33.25 million

Investors began the party early. CMG shares traded up 7.5% after hours to $95, well above the 52-week high.

Douglas A. McIntyre

Posted on: July 31, 2007 – 3:13 pm in Uncategorized

NYSE Euronext: The Stock Everyone Loves to Hate

Posted by Thomas Catino

Ant&Sons

NYSE Euronext Inc. (NYX) is the stock everyone loves to hate. With major market indices recently hitting 52-week highs, NYSE Euronext shares are instead well off their highest level in the past year – $112.00. Market share has declined to 64%…continued
Posted on: July 31, 2007 – 1:48 pm in Uncategorized,

CV Therapeutics Earnings Overshadows Takeover Spec

Posted by Thomas Catino

Ant&Sons

Shares of CV Therapeutics Inc. (CVTX) are slumping, down $.60, or 5.52%, to $10.26 on moderate volume. It’s been a volatile ride for the stock that is continuing this morning after the company posted…continued
Posted on: July 31, 2007 – 1:45 pm in Uncategorized,

American Home Mortgage Reopens For Trading, Under $2.00 (AHM)

American Home Mortgage (NYSE:AHM) has finally repoened after being closed for a day and a half.  Indications were going around the street have been noted as lows as an implied $1.00 to $2.50, but shares are under $2.00… Shares were halted all of Monday, but it had traded down 45% in pre-market activity yesterday morning after the news release.

Yesterday the shares were halted because it said that margin calls were going to prevent it from being able to pay a dividend.  Today the news is that the secondary mortgage market disruption and credit risk concerns are preventing it from being able to borrow.

The Company said it has received and paid very significant margin calls in the last three weeks and has substantial unpaid margin calls pending.  American Home saidf it is now unable to borrow on its credit facilities and was unable to fund its lending obligations yesterday of approximately $300 million. It does not anticipate funding approximately $450 to $500 million today.  It also retained Milestone Advisors and Lazard to assist in evaluating its strategic options and advising with respect to the sourcing of additional liquidity including the orderly liquidation of its assets.

Yesterday we even noted how this may bury the company, but you never know who may step up to the plate.  It wouldn’t be too much of a shock if the company gets an NYSE delisting notice soon.  Subprime woes continue, and then some.

Jon C. Ogg
July 31, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: July 31, 2007 – 1:14 pm in Financial Stocks, , ,

Cramer Calls Under Armour & Crocs (UA, CROX, NKE)

On today’s TheStreet.com video, Jim Cramer again pushed Under Armour (NYSE:UA).  The stock is up big after earnings from this morning.  He noted how he was critical at its last earnings report, but this quarter they overdelivered big on an under-promise.  It is one to own for back to school and for Christmas and isn’t one you can really worry about the actual stock price.  Cramer even noted, "Under Armour is the next Nike (NYSE:NKE)!". He thinke their clothing is now a required outfit for sport teams.  Under Armour shares are putting in new all-time highs up over 15% on the day.  For unbridled growth Cramer said you can go listen to the Crocs (NASDAQ:CROX) call.  It too is putting in another 52-week high today with its shares up over the $60.00 handle.  That’s up 300% over the last year.  When you look at the last earnings report, it’s just too hard to not give the company credit.

Jon C. Ogg
July 31, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: July 31, 2007 – 12:46 pm in Apparel, Cramer, Earnings, , , , , , , ,

Is Online News Faltering? (CBS)(NWS)(NYT)(WPO)(TWX)(DJ)

A look at traffic patterns for online news sites indicates that there is a decline in consumers using the internet as a source of mainstream news.

Using information from website tracking service Alexa, most of the large news websites have six month declines. CNN.com has a six month downward trend. It three month average ranking among all websites on the internet is 76. But, over the last week, that has dropped to 85, which is part of a steady decline which was only interrupted in mid-April.

MSNBC is also down over the last six months. Its three month traffic average puts it 10,508 among all sites, but for the most recent week its average is 16,958.

FoxNews.com has been moving down over the same period, but its three month average is 599 and its one week average is 551, a slight improvement.

Among newspaper websites, the trend is also down. Washingtonpost.com’s Alexa ranking is down over the last six months, but has been stable more recently. Its three month average ranking among all websites is 616, down 123 spots. But, the last week the ranking was 604.

NYTimes.com has a three month rank of 185, down 41 spots. And, its rank for the last week is 229.

WSJ.com is at 1,043 as a three month average. That is down 85 spots. Its number for the last week is 1,110.

CBSnews.com sits at 2,462, off 421 spots. This week its place was 3,166.

Some of this is clearly due to the time of year. News consumption is likely to be lower in the summer. But, many of these sites also posted declines from February to May.

If the decline is indeed a move away from using large news company websites for information, where have the people gone? Probably not back to print newspapers and the TV set. It may simply be that the appetite for news is dropping overall.

The trend would be particularly troubling for newspaper companies. They are banking that revenue from the internet can help offset declines in print advertising. They need web audiences for their sites to grow, and grow quickly.

Douglas A. McIntyre

Posted on: July 31, 2007 – 12:40 pm in Uncategorized, , , , , ,

Global Positioning Earnings Onslaught (GRMN, NVT, SIRF, TRMB)

It is rare that one sub-sector has all of the key components reporting earnings within the same 24 hour period, but that is the case with the "GPS" or global positioning stocks.  Tonight we have earnings from Timble (TRMB), NAVTEQ (NVT) and SiRF Tech (SIRF).  Tomorrow morning is Garmin (GRMN).  If you are in outside sales, the military, shipping, or do lots of driving then you know the addiction to these.  Particularly since a research analyst just yesterday and Jim Cramer recently called NAVTEQ (NVT) a buyout candidate.  These reports are all after reports that TomTom agreed to Buyout NAVTEQ’s rival TeleAtlas for some $2.6 Billion. Keep in mind that these have experienced significant gains and are all considered hi-beta names.  Here are the earnings previews with some brief notes:

NAVTEQ (NYSE:NVT) reports after today’s close: $0.27 EPS & $180.25M revenues; next quarter $0.26 EPS & $181.4M revenues; Fiscal 2007 $1.33 EPS & $747.8M revenues.  Shares within 10% of recent yearly highs and up over 100% from year lows.  40+ P/E ratio, recently noted as takeover candidate.

Trimble Navigation (NASDAQ:TRMB) reports after today’s close: $0.30 EPS & $311.7M revenues; next quarter $0.26 EPS & $293.4M revenues; Fiscal 20067 $1.12 EPS & $1.19 Billion revenues.  TRMB within 6% of 52-week highs and up over 60% from lows.  Almost $4 Billion market cap and 36+ P/E ratio.

SiRF Tech (NASDAQ:SIRF) reports after today’s close: $0.23 EPS & $71.5M revenues; next quarter $0.28 EPS & $81.4M revenues; Fiscal 2007 $1.06 EPS & $315.5M revenues.  Just recently in new collaboration with Intel pre-market; stock well off of highs because of prior guidance; still massive P/E ratio because of items, but has only a 22.6 forward P/E ratio if it hits estimates.

Garmin Ltd. (NASDAQ:GRMN) reports Wednesday morning before the open: $0.73 EPS & $645.7M revenues; next quarter $0.67 EPS & $601M revenues; Fiscal 2007 $2.90 EPS & $2.62 Billion revenues. Stock already above most analyst targets because of outperformance; shares within 1% of all-time highs (52-week) with an $18.7 Billion market cap; Forward P/E close to 30.

Jon C. Ogg
July 31, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: July 31, 2007 – 11:48 am in Earnings, Technology Companies, Transports, Wireless, , , , , , , , , ,

Chipotle Ready To Serve Earnings (CMG)

Chipotle Mexican Grill (NYSE:CMG) posts earnings after the close today.  The analysts that follow the stock are looking for EPS of $0.45 on revenues of $262.9 million according to First Call.  The estimates for Q3 are $0.46 EPS and $272.4 million.  As a reminder, Chipotle has a history of exceeding earnings estimates and based on its strong performance you can imagine that Wall Street is going to demand another "beat expectations and raise guidance" today.

The stock performance has been amazing.  Shares are within 6% of all-time highs since coming public and are up about 75% over the last year.  Analysts are now mixed on the stock as most Wall Street price targets have been met or exceeded.  On a static basis, options traders are braced for a move of up to $4.60 or so in either direction based on mid-morning prices today. 

A wildcard is of course wholesale food prices, and the spike in avocadoand corn prices are no secret.  It has a secured meat supplyarrangement (or has in the past) so you’ll know where to look today.  It has been a while since Cramer backed the stock, but he definitely increased the cult following in the stock.  The other wildcard is the large short interest since the 4.34 million shares in June that rose a tad to 4.36 million in July.  That is close to 15% of its float and represents more than 10 days average trading volume.  With shares this close to a high and the stock being so leveraged, the shorts could get squeezed hard if this one posts another significant ‘beat and raise’ for the quarter and its outlook.  We’ll know in about 5 hours.

Jon C. Ogg
July 31, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: July 31, 2007 – 10:47 am in Earnings, Food, ,

Downgrade Makes RadioShack Sound Like AbacusShack (RSH)

RadioShack Corp. (NYSE:RSH) is down again pre-market, this time on an analyst downgrade.  Citigroup has slashed its rating from what was already a cautious "Hold" down to the ugly "SELL" rating.  Part of the problem: those darn cell phone sales are slow and pressuring the company’s business.  The outlet is losing market share as well.  Unfortunately, having only a couple or few choices in cell phone providers in each market and with all of them selling direct it seems customers are more interested in signing up directly with a provider store that has all of their phone choices on the spot.

The prior target from Citigroup had been $32.00, but the new target is now $20.00 after this sell rating.  We noted yesterday how RadioShack is still shrinking.  RadioShack has already given back half of its post-implosion gains from last year to this year.  It seems as though the easy money that was to be made off of Julian Day stepping into the company has been made.  Now the company has to really show what it is worth to continue driving gains rather than riding off its first turnaround efforts.

Julian Day is a stallion, that isn’t in question.  But the easy money off of him has come and gone.  Shares are down close to $10.00 from the highs just in the last month, and it’s hard to tie a 30% drop merely to the weak market of last week.  Shares are gapping down over 2% to just under $25.00 in pre-market trading.

Jon C. Ogg
July 31, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: July 31, 2007 – 8:09 am in Analyst Calls, Consumer Electronics, , , ,

Whole Foods Ready For Earnings As FTC Hearing Begins (WFMI, OATS)

Whole Foods Market, Inc. (NASDAQ:WFMI) and Wild Oats Markets, Inc. (NASDAQ:OATS) today are in a preliminary injunction hearing to begin today that will end tomorrow to decide whether to approve the U.S. Federal Trade Commission’s application for an injunction to block the proposed merger between the two companies. Whole Foods Market and Wild Oats Markets have consented to a temporary restraining order pending the hearing.  On last look Whole Foods received 58% of Wild Oats shares in tender at the $18.50 per share buyout.  The FTC complaint and attempt to block the merger was filed on June 7, 2007.  Both Whole Foods and Wild Oats are challenging the FTC’s opposition to the merger.

Also, today after the close will be the earnings report for Whole Foods.  Here is our full preview from yesterday.  The short version is that consensus estimates are $0.33 EPS on $1.54 Billion in revenues.  We also had another article yesterday noting how Wild Oats may need to restructure its entire cost structure if the company is not acquired.

Jon C. Ogg
July 31, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: July 31, 2007 – 7:50 am in Earnings, Food, Mergers and Buy Outs, Regulation, , , , , ,

Pre-Market Stock News (July 31, 2007)

(ADP) Automatic Data Processing $0.35 EPS vs. $0.36 est.
(AEP) American Electric Power $0.64 EPS vs $0.58 est.
(APC) Anadarko Petroleum $1.08 EPS vs $0.80 est.
(BEAV) BE Aerospace $0.39 EPS vs $0.37 est.; raised guidance.
(CAM) Cameron $1.02 EPS vs $0.95 est.
(CBS) CBS $0.54 EPS vs $0.51e; light revenues.
(CCJ) Cameco trading up 3% on "Clarification"of forward sales commitments and guidance clarification.
(COH) Coach $0.42 EPS vs $0.41 est.
(CVH) Coventry Health $0.96 EPS vs $0.95 est.
(DD) DuPont accelerating a $5 Billion share buyback plan.
(ETR) Entergy $1.32 EPS vs $1.31 est.
(GAS) NICOR $0.40 EPS vs. $0.38 est.
(GM) GM $2.48 EPS vs $1.13 estimate.
(GSK) GlaxoSmithKline panel recommends 22 to 1 to keep Avandiaa available to patients in U.S.
(HC) Hanover Compressor $0.23 EPS vs $0.18 est.
(HR) HEalthcare Realty $0.40 EPS vs $0.41 est.
(IACI) IAC/Interactive $0.31 EPS vs. $0.33 est.; weakness partly from ticket miss at Ticketmaster.
(IMB) Indymac $0.60 EPS vs $0.56 est.
(JNJ) J&J announced restructuring; will have layoffs; reaffirmed 2007 guidance.
(LCAV) LCA Vision $0.36 EPS vs $0.46 est.
(MAS) MASCO $0.50 EPS vs $0.49 est.
(MEDX) Medarex said Valortim may enhance ability to block anthrax spores from dewveloping into bacteria.
(MS) Morgan Stanley will IPO its MSCI analytics and index unit.
(NMX) NYMEX $0.60 EPS vs $0.58 est.
(NNI) Nelnet $0.44 EPS vs $0.49 est.
(OLED) Cambridge Display Tech being acquired for $12.00 per share by Sumitomo Chemical.
(PER) Perot Systems $0.18 EPS vs. $0.19 est.
(PMI) PMI Group $0.95 EPS vs $1.15 est.
(RJET) Republic Airways $0.46 EPS vs $0.50 est.
(SAH) Sonic Auto$0.65 EPS vs $0.64 est.
(SMG) Scotts-Miracle Gro $1.98 EPS vs $1.99 est.
(SINT) SI International $0.38 EPS vs $0.38 est.
(SIRI) SIRIUS -$0.09 EPS vs -$0.10 est.; R$226.4M vs. $228M est.; raised FY2007 revenue guidance; spent $108 per new subscriber; added 561K subscribers to end with over 7 million.
(SUNW) Sun Microsystems traded up 10% after $0.09 EPS vs $0.05 estimate.
(TKR) Timken $0.73 EPS vs $0.72 est.
(TOPP) Topps special meeting over offers has been delayed to August 30.
(TSYS) TeleComm Systems awarded $3.5M Army contract.
(UA) Under Armour $0.11 EPS vs $0.03 est.; raised guidance.
(WEC) Wisconsin Energy $0.49 EPS vs $0.37 est.
(WMI) Waste Management $0.56 EPS vs. $0.52 est.

Jon C. Ogg
July 31, 2007

Posted on: July 31, 2007 – 7:28 am in Pre-Market Activity

Pre-Market Analyst Calls (July 31, 2007)

ABM raised to Overweight at Lehman.
ARP cut to Neutral at Sun Trust Robinson Humphrey.
BLDR cut to Mkt Perform at Pip[er Jaffray.
CCJ raised to Outperform at CIBC.
CE raised to Buy at Citigroup.
DHT cut to Neutral at JPMorgan.
ETP cut to Reduce at UBS.
EXC raised to Buy at UBS.
FELE cut to Underperform at Baird.
FPL raised to Outperform at Wachovia.
GCI raised to Outperform at BEar Stearns.
GYMB raised to Outperform at FBR.
IVAC cut to Mkt Perform at Piper Jaffray.
IVGN cut to Peer Perform at BEar Stearns.
KNOL raised to Buy at Jefferies.
MRT raised to Outperform at RBC.
MTG cut to Peer Perform at Bear Stearns.
NVTL cut to Underweight at JPMorgan.
OPTM cut to Hold at Jefferies.
PSO raised to Equal Weight at Lehman.
RSH cut to Sell at Citigroup.
SFL raised to Overweight at JPMorgan.
UL cut to Underperform at Credit Suisse.
VSEA raised to Neutral at Credit Suisse.
VZ raised to Buy at UBS.
WRES started as outperform at RBC.

Jon C. Ogg
July 31, 2007

Posted on: July 31, 2007 – 6:53 am in Analyst Calls, , , ,

IAC Interactive (IACI): Bad News All Around

IACI (IACI) released second quarter 2007 results , reporting $1.5 billion in revenue, a 6% rate of growth over the prior year, and $136 million in Operating Income Before Amortization, compared to $165 million in the year ago period. Adjusted EPS was $0.31, compared to $0.32 in the year ago period.

Operating income fell 33% to $54.4 million.

On a segment basis, revenue at the big retailing operation, which includes HSN, was up only 1% to $701.4 million. Operating income for the division fell 31% to $34.5 million.

Revenue in the transaction segment, which includes TicketMaster, was up 2% to $441.9 million. Operating income fell 36% to $48.5.

The media and advertising segment, which includes Ask.com, had revenue growth of 33% to $174 million. But, the segment had a loss of $10.7 million.

It looks like the small conglomerate is not doing very well.

Douglas A. McIntyre

Posted on: July 31, 2007 – 6:46 am in Uncategorized,

CBS (CBS): No Good News

CBS (CBS) revenues of $3.4 billion for the second quarter of 2007 decreased 3% from $3.5 billion for the same quarter last year. Operating income before depreciation and amortization ("OIBDA") of $859.4 million and operating income of $749.9 million for the second quarter of 2007 remained flat with $858.9 million and $750.3 million, respectively, for the same prior-year period.

On an adjusted basis, excluding tax benefits from income tax settlements in both years and the pre- tax gain and related tax effect of station divestitures, net earnings from continuing operations increased 9% to $393.1 million for the second quarter of 2007 from $360.8 million.

Radio operating income fell 18% to $179 million.

Nothing to write home about.

Douglas A. McIntyre

Posted on: July 31, 2007 – 6:32 am in Uncategorized,