Jim Cramer Blog

AZZ Inc. (NYSE:AZZ - News), a manufacturer of electrical products and provider of galvanizing services, said that it's expecting to produce fiscal 2008 earnings in a range of $2.70 to $2.80 a share. Sales are expected in a range of $275 million to $2.85 million. The estimates assume that domestic markets will continue to be strong, that the company will continue to penetrate international markets and that zinc and other commodity prices will be less volatile. Galvanizing margins are expected in a range of 18% to 22%, while electrical and industrial operations are expected to produce margins in a range of 11% to 13%.
CACI International (NYSE:CAI - News) was downgraded to neutral from buy at Banc of America Securities.
Coldwater Creek Inc. (NASDAQ:CWTR - News) lowered its outlook for fiscal fourth quarter per-share income to a range of 16 cents to 17 cents. Previously, the women's-apparel company said it was looking for 26 cents to 27 cents. Coldwater cited slower-than-expected customer traffic throughout the holiday season.
Digi International Inc. (NASDAQ:DGII - News) first-quarter net income rose to 15 cents a share from 9 cents in the year-earlier period. Revenue rose to $41.8 million from $33.4 million.
Enterra Energy Trust (NYSE:ENT - News) reported a cash distribution of 6 cents per trust unit to be paid on Feb. 15. This payout represent a reduction from the 12 cents per trust unit the company distributed in each of the past six months. Enterra attributed the reduction to significantly weaker commodity prices, capital market uncertainty stemming from recent tax changes proposed by the Canadian government and early conversion of debentures to trust units.
E-Trade Financial Corp. (NASDAQ:ETFC - News) fourth-quarter net income jumped 37%, as customers traded more and stored more cash and investments with the discount broker.
Fortune Brands (NYSE:FO - News) was downgraded to neutral from overweight at J.P. Morgan. The firm cited a 20% gain in the share price since the end of June and the weak outlook for home and hardware sales and operating margins. The broker also told clients it believes margin expansion in the spirits and wine division is also limited as it thinks Fortune will increase investment in its newly acquired Allied brands.
General Electric Co. (NYSE:GE - News) reported fourth-quarter net income doubled to 64 cents a share, in line with estimates. Revenue rose a stronger-than-expected 11% to $44.62 billion. In addition, GE agreed to buy Abbott Laboratories' (NYSE:ABT - News) in-vitro and point-of-care diagnostics businesses for $8.13 billion in cash.
Hythiam (NASDAQ:HYTM - News) shares slid after the Los Angeles-based provider of health management services said late Thursday it has agreed to acquire Comprehensive Care Corp. for $9 million in cash and 708,066 shares of stock. The deal is expected to close in the first half of 2007.
IBM (NYSE:IBM - News) reported an 11% rise in fourth-quarter profit, helped by higher sales in its key global services division and more demand in its software business, although the stock fell due to meager sales growth for the company's hardware business.
Irvine Sensors Corp. (NASDAQ:IRSN - News) shares slumped after the Costa Mesa, Calif.-based developer of miniaturized infrared and electro-optical cameras said it was unable to file its Form 10-K for the fiscal year ended Oct. 1, 2006, by the yesterday's deadline. The company did not provide a reason for the delay in filing its 10-K.
Lamar Advertising (NASDAQ:LAMR - News) was downgraded to neutral from buy at Banc of America Securities.
Lubrizol (NYSE:LZ - News) was downgraded to neutral from overweight at J.P. Morgan.
Nuveen Investments (NYSE:JNC - News) said fourth-quarter net income for the three months ended Dec. 31 rose 15% to $50.2 million, or 60 cents a share, from $43.5 million, or 53 cents a share in the year-ago period. Revenue rose 24% to $195.6 million. Analysts surveyed by Thomson First Call forecast earnings of 61 cents a share, on average.
Shares of Rite Aid (NYSE:RAD - News) fell after Goldman Sachs downgraded the drugstore chain to sell from neutral, citing concerns over valuation and challenges integrating its Eckerd acquisition. "Shares of dramatically outperformed over the past several months on optimism over Eckerd's turnaround potential," Heinbockel said in a research note. He said the stock's strong gains leave it trading at the same valuation as the faster-growing and less leveraged CVS-Caremark combination. "As a result, we see a potential correction of 10% to 15% sometime in the first half of 2007," Heinbockel said. The stock was last down 3.1% at $5.95, but was still up 24% over the past four months. Heinbockel raised his stock price target to $5.45 from $4.54.
Stanley Works (NYSE:SWK - News) was downgraded to underweight from neutral at J.P. Morgan. The firm said the company's recent acquisition run has diluted returns and increased integration risk, particularly regarding Bostitch.
SunTrust Banks (NYSE:STI - News) said net income rose 1% to $523.6 million, or $1.46 a share, from $518.5 million, or $1.43, a year ago. Analysts, on average, forecast earnings of $1.46 a share, according to Thomson First Call. Quarterly revenue increased 3% to $2.07 billion from $2 billion, while non-interest income gained 11% to $882.6 million from $797.9 million, the Atlanta bank said.
Textron Inc. (NYSE:TXT - News) updated its fourth-quarter outlook Thursday night. The Providence, R.I. defense and aerospace company said it had "incurred additional costs related to its Bell Helicopter H-1 program." It now expects earnings from continuing operations to exceed previous guidance of $1.35 to $1.45 a share. That median still fell short of analysts' average estimates of $1.46 a share, as polled by Thomson Financial. The company said strong financial performance at Cessna and other units during the fourth quarter should more than offset additional H-1 costs.
TRW Automotive Holding Corp. (NYSE:TRW - News) was downgraded to sell from neutral at Goldman Sachs.
Washington Post Co. (NYSE:WPO - News) raised its annual dividend 5% to $8.20 a share from $7.80 a share.
Westlake Chemical Corp. (NYSE:WLK - News) was downgraded to reduce from neutral at UBS. The firm lowered its price target on the stock to $36 from $32.

Labels: ABT, CAI, CWTR, DGII, ENT, ETFC, FO, GE, HYTM, IBM, IRSN, JNC, LAMR, LZ, RAD, STI, SWK, TRW, TXT, WPO

CHANGE IN RATINGS
Arbitron (ARB - commentary - Cramer's Take - Rating) upgraded at Bear: ARB was upgraded from Peer Perform to Outperform at Bear Stearns. Company is making progress in its PPM rollout, which should help drive the stock.
CACI International (CAI - commentary - Cramer's Take - Rating) downgraded at Wachovia: CAI was downgraded to Market Perform at Wachovia. Sudden departure of the CFO increases concern about the company's near-term direction.
Gol Airlines (GOL - commentary - Cramer's Take) coverage resumed at Morgan Stanley: Morgan Stanley resumes coverage of Gol Airlines with an overweight rating and a $37 price target.
Level 3 (LVLT - commentary - Cramer's Take - Rating) rated new Outperform at Credit Suisse: Credit Suisse is initiating coverage on LVLT with an Outperform rating. Believes company will continue to see strong demand driven by higher data usage. Sets $7.50 target price.
MetLife (MET - commentary - Cramer's Take - Rating) upgraded at UBS: MET upgraded to Buy rating from Neutral at UBS. Price target lifts to $71 from $64. 2007 eps estimates bumps to $5.27 from $5.23.
Tidewater (TDW - commentary - Cramer's Take - Rating) coverage initiated at Goldman Sachs: Goldman is initiating coverage on TDW with a Sell rating. See lower utilization and declining dayrates for company's old fleet. Price target at $43.
United Surgical (USPI - commentary - Cramer's Take - Rating) downgraded at Deutsche: USPI was downgraded from Buy to Hold at Deutsche Bank. $31 price target. Do not expect the company to receive a better takeover offer before next month.
STOCK COMMENTS / EPS CHANGES
Boeing (BA - commentary - Cramer's Take - Rating) numbers raised at UBS: BA numbers raised at UBS. Price target jumps to $82 from $76. 2007 eps estimates lift to $4.85 from $4.80. Reiterates Reduce rating.
Conoco Phillips (COP - commentary - Cramer's Take - Rating) price target cut at Goldman: Goldman is cutting its target on COP to $76 from $83 after company reported disappointing year-end reserve data. Believe data supports long-term strength in oil prices, and that Conoco fundamentals remain strong. Maintain Buy rating.
Genentech (DNA - commentary - Cramer's Take - Rating) price target raised at Goldman: Goldman is upping its target on DNA to $102 from $95 due to strong sales of Lucentis, Rituxan and Avastin. Company guidance was above both Goldman and consensus estimates. Maintained Buy rating.
Guitar Center (GTRC - commentary - Cramer's Take - Rating) estimates cut at Piper: Piper is cutting its 2007 estimates on GTRC to $2.74 a share due to lower expectations for top-line growth following weak Q4 sales. Maintained Outperform rating.
j2 Global (JCOM - commentary - Cramer's Take - Rating) numbers lowered: JCOM numbers lowered at Jefferies. Price target drops to $27 from $28. 2007 eps estimates lowered to $1.50 from $1.57. Reiterates Hold rating.
Urban Outfitters (URBN - commentary - Cramer's Take - Rating) numbers raised at Piper: Piper is raising its target price on URBN from $17 to $28 to reflect improved earnings outlook. Maintained Market Perform rating.
Waters (WAT - commentary - Cramer's Take - Rating)numbers raised at UBS: WAT numbers raised at UBS. Price target jumps to $57 from $52. 2007 eps estimates lift to $2.60 from $2.54. Reiterates Neutral rating.
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Labels: ARB, BA, CAI, COP, DNA, GOL, GTRC, JCOM, LVLT, MET, TDW, URBN, USPI, WAT