Jim Cramer Blog

Affiliated Computer Services Inc. (NYSE:ACS - News)reported second-quarter earnings of 72 cents a share, compared with 81 cents a share, in the year-earlier period. This year's quarter included 9 cents a share in legal and other expenses related to the company's stock- option inquiry. Shares outstanding fell to 100.2 million from126.9 million. The Dallas provider of outsourcing and information technology services reported revenue rose 5.9% to $1.43 billion.

Alcatel-Lucent (NYSE:ALU - News) said it may cut up to 1,468 jobs in France by the end of 2008, or about 12% of its workforce in the country. The company had previously targeted cutting 12,500 jobs worldwide.
Alpha Natural Resources (NYSE:ANR - News) said fourth-quarter earnings rose to $63.3 million, or 98 cents a share, from $12.4 million, or 20 cents a share, a year earlier. The results for the quarter ending Dec. 31 include a 5 cents-a-share charge related to stock-based compensation, an 8 cents-a-share charge for the buyout of a supply contract and an 86 cents-a-share tax benefit. Revenue fell 8.4% to $458 million from last year's $499.7 million, amid a 5.7% decline coal revenue and a 23% drop in freight and handling revenue. The Abingdon, Va. coal producer said it may need to take additional steps to rationalize production if coal prices don't improve.
American Capital Strategies Ltd. (NasdaqGS:ACAS - News)said fourth-quarter net operating income rose to $113 million, or 76 cents a share, from $91 million, or 80 cents a share, during the same period in the prior year. The weighted average shares of common stock outstanding for the quarter rose to 148.4 million from 112.6 million in the prior year. Analysts polled by Thomson Financial had expected per-share income of 77 cents for the recent quarter. The asset manager said quarterly interest and dividend income rose to $202 million from $127 million in the prior year. Also, American Capital's board has declared a first-quarter dividend of 89 cents per share, up 11% from the dividend during the same period in the prior year. The dividend is payable April 2 to holders as of March 2.
Applied Materials (NasdaqGS:AMAT - News) reported its quarterly profit nearly tripled from a year earlier as it sold more machines that make chips used in consumer electronics.
Asia Satellite Telecommunications Holdings Ltd. (NYSE:SAT - News) said its majority shareholders proposed to acquire shares they don't already own for HK$2.22 billion. The company said in a statement that Modernday Ltd., jointly owned by CITIC Group and General Electric Capital Corp., plans to offer HK$18.30 a share in cash for 121.4 million Asia Satellite shares, equivalent to a 31.1% stake. The offer price represents a 30.7% premium over the stock's last traded price of HK$14.0 Friday morning, before its trading suspension.
Bear Stearns (NYSE:BSC - News) was upgraded to outperform from neutral at Credit Suisse. The firm also lifted its price target to $190 from $172. "Bear Stearns is a well run franchise. Returns may lag peers in the most favorable of markets but prove more resilient in a downturn. That, plus a less than 2 times book value valuation and a history of above-average book value growth... the risk/reward is right."
Ciena Corp. (NasdaqGS:CIEN - News) was upgraded to buy from hold at Citigroup.
Corillian Corp. (NasdaqGS:CORI - News) shares jumped after the company agreed to be acquired by CheckFree (NasdaqGS:CKFR - News) for $245 million. The deal values Corillian shares at $5.15 each, compared to their close on Tuesday at $3.45. CheckFree expects the transaction to close on or by June 1. It plans to finance the acquisition through a combination of existing cash balances and revolving debt. CheckFree anticipates the deal will be dilutive to GAAP earnings in the current fiscal year as well as fiscal 2008, and modestly dilutive to underlying earnings over the same period.
Crown Castle International Corp. (NYSE:CCI - News) was upgraded to buy from neutral at Banc of America Sec., which cited expectations that growth will accelerate heading into 2008. Analyst David Barden also raised his stock price target to $42 from $36. Barden thinks the expected growth will come from "ongoing quality service-based competition among large wireless carriers," as well as from new initiatives such as T-Mobile's 4G network build out and, and from expansion from emerging carriers.
DaimlerChrysler (NYSE:DCX - News) shares rose after the company unveiled a restructuring plan that calls for the elimination of about 13,000 jobs within its Chrysler group. The company also said fourth-quarter profit dropped 40% to 577 million euros ($749 million), while revenue slipped 2% to 40.66 billion euros. While Chrysler Group swung to a 124 million euro operating loss, Mercedes Group's operating profit rose to 1.3 billion euros from 1 million euros during the quarter. Its truck division more than tripled its operating profit, and its financial services operating profit improved 15%. It expects a "significant" increase in profitability between 2007 and 2009, a slight rise in 2007 unit sales and 2007 revenue at least level with last year's 151.6 billion euros.
Deere & Co. (NYSE:DE - News) posted a rise in fiscal first-quarter net income of just 1.2%, although sales of agricultural equipment rose nearly 10%. The Moline, Ill., heavy-equipment maker had net income of $238.7 million, or $1.04 a share, for the quarter ended Jan. 31, up from $235.9 million, or 99 cents a share, a year earlier. Year-ago income from continuing operations was $223.9 million, or 94 cents a share. Analysts polled by Thomson Financial expected, on average, earnings of 79 cents a share in the recently ended first quarter. Net sales in the latest quarter rose 5.2% to $4.42 billion from $4.2 billion. Looking ahead, Deere said it expects sales to be up slightly for full-year 2007 and to increase approximately 5% for the second quarter. Net income is forecast to be around $1.4 billion for the year. Analysts are expecting full-year net income of $1.4 billion, or $6.29 a share. For the fiscal second quarter, Deere said it expects earnings of $525 million to $550 million. Wall Street is looking for second-quarter income of $506.8 million, or $2.26 a share, according to Thomson Financial analysts. Deere is expected to get a boost from surging corn prices sparked by ethanol demand, despite the company forecasting flat revenue and earnings falling 20% in 2007.
Dollar-Thrifty Automotive Group (NYSE:DTG - News) shares rose following a report that the company could merge with Vanguard Car Rental, a private firm that owns the National and Alamo car rental brands. The New York Times said the parties were in early talks on a deal that could be worth more than $3 billion.
ESpeed Inc. (NasdaqGM:ESPD - News) reported fourth-quarter net earnings of $3.25 million, or 6 cents a share, compared with $290,000, or a penny a share, in the same period last year, boosted by higher revenue from Software Solutions and fully electronic transactions. The developer of electronic marketplaces and trading technology said revenue rose 18.3% to $44.7 million from $37.8 million. For the first quarter, ESpeed expects per-share operating earnings of 3 cents to 4 cents excluding items, on operating revenue of $40 million. For 2007, the company sees per-share operating earnings of 5 cents to 7 cents a share excluding items, on operating revenue of about $152 million. ESpeed added that it sees lower revenue and net income for 2007 due to the expiration of the Wagner patent on Feb. 20, after which the company will no longer receive revenue from this source.
E-Trade Financial Corp (NasdaqGS:ETFC - News) said its clients'daily average revenue trades, or DARTs, rose 16.7% in January from year-ago levels, to 174,529. U.S. DARTs climbed 14.8% and international DARTs rose 28.1%, the firm said. The company's total retail client assets increased 1.7% from the December quarter, to $198.3 billion. End of period margin debt balances fell 1.3% from the prior quarter to $6.9 billion, with average margin debt balances dipping 2.2% to about $6.9 billion.
Favrille (NasdaqGM:FVRL - News) shares rose after the company signed an agreement with Bayer Schering Pharma's unit Berlex. The focus of the agreement will be on studying the use of Favrille's active immunotherapy, FavId, in conjunction with Berlex's growth factor Leukine in patients with B-cell non-Hodgkin's lymphoma.
First Solar Inc. (NasdaqGM:FSLR - News)shares surged after the Phoenix maker of solar modules reported fourth-quarter profit of 12 cents a share, compared with a loss of 14 cents in the year-earlier period. Revenue nearly quadrupled to $52.7 million from $13.6 million. Analysts polled by Thomson Financial were expecting a per-share loss of 5 cents. First Solar went public last November.
FoxHollow Technologies (NasdaqGS:FOXH - News) said the fourth-quarter net loss widened, as the company recorded lease termination charges, to $4.85 million, or 18 cents a share, from a net loss of $160,000, or a penny a share, during the same period in the prior year. Analysts polled by Thomson Financial had expected a per-share loss of 9 cents. The medical devices developer said quarterly revenue rose to $44.5 million from $41.9 million in the prior year, while Wall Street was looking for $45 million. For fiscal 2007, FoxHollow sees revenue of $205 million to $215 million, with a per-share result ranging from breakeven to income of 20 cents. Analysts are looking for annual revenue of $207 million.
Garmin Ltd. (NasdaqGS:GRMN - News) shares jumped after the maker of global-positioning navigation and communication gear reported fourth-quarter earnings that more-than-doubled from a year ago. Before the market opened, Garmin said it earned $180.3 million, or 82 cents a share, up from $87.1 million, or 40 cents a share in the year-ago-quarter. Revenue also nearly doubled to $611.2 million from $319.3 million a year ago. Analysts surveyed by Thomson Financial had forecast Garmin to earn 58 cents per share revenue of $525 million. Garmin also forecast a 2007 fiscal-year profit of $2.70 a share on $2.5 billion in revenue.

Published By Michael Baron of MarketWatch