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Intel Corporation (NASDAQ: INTC) posted third quarter earnings of $0.35 per share on $10.22 billion in revenue. Analysts expected the company to earn $0.34 EPS with $10.26 in revenue. Gross margins were 58.9%, up from Q2 and up from projections as its tax rate was 28.9% rather than the 33% projected. It also spent $2.1 billion to buy back 93 million shares.
Daily Archives: October 14, 2008
Intel Tries Moderating Targets Ahead (INTC)
Genentech Mixes Top-Line & Bottom-Line Numbers (DNA)
Genentech, Inc. (NYSE: DNA) today posted earnings of $0.81 per share and $3.408 billion in revenue. That’s below First Call estimates of $0.88 on $3.36 billion in revenue. For what this is worth, Genentech noted that earnings were affected by items.
The 52-Week Low Club (LEA)(PIR)(LVS)(ES)
Energysolutions (ES) Company cuts guidance. Plunges to $5.60 from 52-week high of $28.45.
Lear Corporation (LEA) Another victim of lower guidance. Falls to $3.77 from 52-week high of $36.99.
Pier 1 Imports (PIR) Retailer gets downgraded. Falls to $.96 from 52-week high of $8.25.
Las Vegas Sands (LVS) Casino business still being hit by economy. Drops to $12 from 52-week high of $148.76.
Douglas A. McIntyre
Cramer Talks Up Beaten Down Industrials (IR, SPW, EMR, GE)
Jim Cramer came on CNBC today in his old STOP TRADING segment with a brief trade idea, and it is an industrial trade idea to boot. He noted this morning that this was too much of a jump from Friday’s lows. Cramer noted that the Fed took the Great Depression off the table. The first stock Cramer noted was Ingersoll-Rand Company (NYSE: IR) which lowered estimates and the stock didn’t go down very much.
All Clear in InBev-Bud Merger Financing? (BUD)
Anheuser-Busch Companies Inc. (NYSE: BUD) has been seeing its stock whip around as though the company was not a being bought out. Its stock hit $64.00 early last Thursday, and by Friday it spent almost the entire trading day below $60.00. Yesterday’s rally took care of fears and the stock gapped up higher this morning. But since late morning there has been more selling pressure and the stock is now trading down over 2% at $62.50. The problem is that in mid-September the stock was above $67.00. It appears that there have been some building concerns over whether InBev will be able to line up the financing. And today we have an update.
As Time Warner (TWX) AOL Rumors Grow, Yahoo! (YHOO) Shares Fall
Finding someone who likes the idea of Yahoo! (YHOO) buying AOL is harder that finding snow in the Sahara. Yahoo!’s stock is off another 3.5% to $13.18 as the media speculates about whether the marriage will be announced tomorrow.
The two most unappealing pieces of any transaction are that AOL and YHOO rely on display advertising, which is having a tough time due to the economy, and no one can imagine how management could combine two so very complicated companies.
Bracing For a Cautious Intel (INTC)
Intel Corporation (NASDAQ: INTC) is set to report earnings for its third quarter right after the close. First Call estimates are earnings of $0.34 and $10.26 billion in revenue. The biggest issue today is not just going to be earnings but the guidance the company offers investors. Analysts already are lowering the bar for the chipmaker by reducing their forecasts.
Looking Beyond Genentech Earnings (DNA)
After today’s close, we are expecting the earnings report of of biotech giant Genentech, Inc. (NYSE: DNA). First Call estimates are for $0.88 EPS on $3.36 billion in revenue. Today is going to be a very important day for Genentech shareholders, but we don’t think the importance will shine around the actual earnings report. Unless there is some major guidance surprise, we don’t even think the focus will be there on that data. Today ultimately boils down to the status of its merger.
Our “Everyone Gets a Trophy” Economy
By John Tamny RealClearMarkets
"The ultimate result of shielding men from the effects of folly is to fill the world with fools." – Herbert Spencer
Any conversation with parents of school-aged children often turns to activities in the classroom and on the field. In U.S. schools today there’s a concerted effort afoot to make everyone as equal as possible. While various affirmative action programs have been around for decades to compensate for unequal abilities, in school seemingly no one loses anymore
6 Big Losers on a Strong Day (HAYZ, HSII, PEP, KO, RACK, RBS)
Traders and investors alike love to look for stocks that are going to run up with a strong market. Yesterday was a record DJIA point move and today we have at least buying strength at the open. But when traders see stocks that are weak in strong markets, they generally either stay away from those companies or they put on bets against them for days as the bad news is out. Imagine how they’d do if the market was down. Below is our list of big losers on a strong day.
The Market Turns Its Back On Big Tech (MSFT)(INTC)(ORCL)(DELL)
What they say about big tech must be true. IT spending at companies is falling as businesses cut back across every expense category they can find. Software and hardware upgrades are put off to the side for another year.
The anticipated contraction in capital spending and technology purchases probably has already hit the market. If so, third quarter earnings at firms including Microsoft (MSFT), Dell (DELL), Intel (INTC), and Oracle (ORCL) are going to be poor and guidance may be worse.
AIG tempts fate, SNL says what the Street is Thinking (AIG)
As most folks not living under a rock know at this point, Ed "mea culpa" Liddy, has formally responded to harsh public criticism over AIG’s tin-eared approach to frugal corporate spending. Posted on any and all available news sources, blogs, and bathroom walls, Liddy’s minions made a savvy PR move reminiscent of the 1970’s tobacco company warnings that say cigarettes are bad for your health. In his official AIG response, Liddy promised to mend AIG’s ways, to tighten belts and walk the straight and narrow. (Of course, it should be noted that he made this promise after receiving what now amounts to more than 4,000 negative stories: keywords "AIG + Party.") In particular, he apologized to the American taxpayers on hundreds of posts like this one in penitent fashion – note the single comment posted underneath this article from savvy corporate user "AIG Blog Relations."
Saturday Night Live’s "Weekend Update" shared its opinion on AIG’s shenanigans in last week’s episode. We think the Street will agree with their sentiment:
Domino’s Serves Partially Hydrogenated Earnings (DPZ)
Domino’s Pizza Inc. (NYSE: DPZ) is looking more and more troubled. The company has given a poor earnings report and it is facing much more important top-line issues. This is showing up in franchise-owned stores and its company-owned stores. So what happened on its earnings?
Phosphate Holdings Files To Sell $200 Million in Stock (PHOS)
Phosphate Holdings, Inc. (OTC-PHOS) looked like it was going to be an initial public offering, but this OTC company has filed to sell up to $200 million in common stock in a secondary offering. We normally wouldn’t cover this except that it is a larger OTC company and Goldman Sachs and Merrill Lynch are listed as the two underwriters.
J&J Earnings: Size Does Matter (JNJ)
Johnson & Johnson (NYSE: JNJ) is showing that some companies can get it right despite tough times. The company has beat earnings and is even raising its fiscal 2008 guidance. The consumer products and health care company posted earnings of $1.17 EPS compared to the First Call consensus of $1.11. It said that revenues rose 6.4% year over year to $15.92 billion, above the $15.69 billion consensus.
Johnson & Johnson (JNJ) Beats
The market needed Johnson & Johnson (JNJ) to come though with big numbers to show that the consumer goods and medical devices markets, which to a large extent depend on consumer healthcare, were OK.
JNJ delivered better than expected.
Johnson & Johnson announced sales of $15.9 billion for the third quarter of 2008, an increase of 6.4% as compared to the third quarter of 2007.
Net earnings and diluted earnings per share for the third quarter of 2008 were $3.3 billion and $1.17, respectively, up over 10%.
Douglas A. McIntyre.
Top Pre-Market Analyst Upgrades (AOC, BAC, CR, DOV, FSLR, HPT, MMM, MMC, MA, SPWRA, TROW, V, WU)
These are some of the top analyst upgrades we are seeing in early hours of pre-market trading this Tuesday morning:
- AON Corp. (AOC) Raised to Buy at Goldman Sachs
- Bank Of America (BAC) Raised to Strong Buy from Outperform at Raymond James
- Crane Co. (CR) Raised to Neutral from Sell at Goldman Sachs
- Dover Corp. (DOV) Raised to Buy at Goldman Sachs
- First Solar (FSLR) Raised to Market Perform at FBR
- Hospitality Properties Trust (HPT) Raised to Outperform at Wachovia
- 3M (MMM) Raised to Neutral from Sell at Goldman Sachs
- Marsh & McLennan (MMC) Raised to Buy at Goldman Sachs
- MasterCard (MA) Raised to Outperform at Morgan Keegan
- SunPower Corp. (SPWRA) Raised to Market Perform at FBR
- T. Rowe Price (TROW) Raised to Market Perform at KBW
- Visa Inc. (V) Raised to Buy at Piper Jaffray
- Visa (V) Raised to Outperform at Morgan Keegan
- Western Union (WU) Raised to Overweight at JP Morgan
Jon C. Ogg
October 14, 2008
Bad Start For Earnings: Pepsi (PEP) Tanks
The early wave of third quarter earnings stepped on a banana. Pepsi (PEP) numbers were awful and they cost a lot of people their jobs.
Globally, approximately 3,300 positions will be eliminated in connection with the productivity program, of which about 40 percent relate to the closing of up to six plants and other capacity rationalization actions.
While revenue rose from $10.2 billion to $11.2 billion, net income fell from $1.743 billion to $1.576 billion.
In the pre-market, Pepsi shares indicated that they would trade down at the open.
Douglas A. McIntyre
Time For Google (GOOG) To Dump Yahoo! (YHOO) Deal
Yahoo! (YHOO) needs the deal for Google (GOOG) to sell search advertising for the portal company more than Google needs it. The world’s largest search firm may make a modest sum off its commissions from the partnership, but given Google’s size it is not likely to have much of an effect.
On the other hand, Yahoo! was able to keep itself out of the clutches of Microsoft (MSFT) to some extent because it said that it could make several hundred million extra dollars by outsourcing part of its sales effort to its larger search rival.
Merck (MRK): More Trouble With Vioxx
A lot of people believe that Merck (MRK) knew a lot more about the dangers of its arthritis drug Vioxx than the company ever let on. Heart problems were apparently a by-product of using the treatment.
An affirmation of Merck’s possible guilt was the $4.85 billion that it paid to settle a number of Vioxx suits. But, the fun may not be over.
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