DeclinersShares of Advanced Micro Devices (NYSE:
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News) were lower following a report that the company could be replaced by rival Intel (NASDAQ:
INTC -
News) in certain Sun Microsystems' (NASDAQ:
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News) server products, according to The Wall Street Journal.
Aladdin Knowledge Systems (NASDAQ:
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News) said its fourth-quarter net income fell 6.9%, and the company expects fiscal 2007 earnings to range from 90 cents to $1.09 a share. The provider of network-security software products said fourth-quarter net income fell to $3.62 million, or 24 cents a share, from $3.88 million, or 26 cents a share, a year earlier. Revenue gained 12% to $24.3 million from $21.8 million. Excluding stock-based compensation costs, the Tel Aviv company earned $4.16 million, or 28 cents a share, in the latest fourth quarter. Analysts surveyed by Thomson Financial, on average, had been expecting Aladdin to earn 27 cents a share on revenue of $23.2 million for the final quarter of 2006. For 2007, Aladdin also expects revenue of $95 million to $102 million.
Bassett Furniture (NASDAQ:
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News) reported fourth-quarter earnings of $359,000, or 3 cents a share, down 83% from $2.07 million, or 18 cents a share, in the year-ago period.
Blair Corp. (AMEX:
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Boeing was downgraded to market perform from outperform at Wachovia Securities. The firm cited its belief that the commercial aircraft order cycle has peaked and told clients it's concerned about potential delays on the 787 program, citing contacts deep within Boeing's supply chain. Wachovia said it's been told that suppliers to the program are unhappy with the costs of maintaining schedule and are demanding more money. The broker said the negotiations could result in additional increases in R&D costs if the suppliers get their way.
Central Garden & Pet Co. (NASDAQ:
CENT -
News) shares fell after the Walnut Creek, Calif., seller of outdoor products and pet supplies forecast a loss of 12 to 14 cents a share for its fiscal first quarter ended in December. The company had previously projected breakeven results for the period. It attributed the lower view to a shift in seasonal purchases by lawn and garden retailers later in the quarter, higher than anticipated grain costs, and lower sales and a mix shift within its pet bird and small animal product categories.
Shares of Cisco Systems (NASDAQ:
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News) slipped after JMP Securities became the latest Wall Street firm to downgrade the networking giant. Analyst Samuel Wilson lowered his rating to market perform from market outperform, citing evidence that the communications equipment business has decelerated over the past month, as well as some concerns over share dilution. Wilson also believes that previous positive catalysts, such as evidenced that business was solid and "compelling" valuation, will be muted going forward. "Given that our bottoms up check into Cisco's business suggest that its business is good but not accelerating, we believe that Cisco's stock will trade in line with the overall market in the near-term," Wilson said. "Finally, with the recent move in Cisco's stock price over the past six months, we anticipate that shares outstanding may actually be trending upwards given the large number of options outstanding that are now in the money."
Compania Anonima Nacional Telefonos de Venezuela (NYSE:
VNT -
News) shares dropped following a move by Venezuelan President Hugo Chavez on Sunday said the government won't pay market price for the telecom in its move to nationalize the company.
The Cooper Cos. (NYSE:
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News) said it plans to refinance debt through a $650 million revolving credit line and a private offering of $350 million of senior notes due 2015. The Lake Forest, Calif., company said it plans to use funds to repay its $250 million term loan and all debt under its existing $750 million syndicated bank credit line. The new credit line will be unsecured and the terms and timing of the new financing will depend on market conditions and other factors.
Shares of Dell Inc. (NASDAQ:
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News) slumped after UBS cut its earnings and revenue outlook and price target for the PC maker, citing concerns over market share losses. "Checks indicate large PC share losses for Dell in the U.S. and Europe and we believe [fiscal] fourth-quarter revenue will be even weaker than we had originally expected," Analyst Benjamin Reitzes said in a research note. Reitzes lowered his fourth-quarter earnings estimate to 28 cents a share from 30 cents and his revenue forecast to a decline of 3% to $14.7 billion from $15.4 billion. For fiscal 2008, his earnings forecast was cut to $1.30 a share from $1.35 and his revenue projection was cut to 5% growth to $60 billion from $62 billion. While Reitzes' rating remains buy, his price target was cut to $26 from $27.
Dr Reddy's (NYSE:
RDY -
News) said third-quarter net profit more than tripled to $43 million from $14 million a year earlier. Sales jumped to $350 million from $134 million.
Eaton Corp. (NYSE:
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News) said fourth-quarter earnings rose to $241 million, or $1.59 a share, from $210 million, or $1.38 a share, a year earlier. Excluding charges for acquisition integration, the Cleveland industrial manufacturer said Monday that operating income rose to $1.66 a share from $1.43 a share a year earlier. Eaton said quarterly net sales climbed to $3.1 billion from $2.82 billion in the year-earlier period. Analysts polled by Thomson Financial, on average, expected quarterly earnings of $1.59 a share on revenue of $3.14 billion. Eaton Corp. also forecast earnings of $1.30 to $1.40 for the first quarter of 2007 and $6.05 to $6.25 for the full year. Operating earnings, which exclude charges to integrate recent acquisitions and joint ventures, should come in at $1.35 to $1.45 for the quarter and $6.30 to $6.50 for the year, Eaton said in a statement. A survey of analysts by Thomson First Call produced consensus earnings estimates of $1.58 for the quarter and $6.30 for 2007. The company's board also approved a 10% boost in the quarterly dividend, to 43 cents a share from 39 cents, payable Feb. 23 to stock of record Feb. 5. In addition, Eaton authorized a 10-million-share buyback to replace the 1.3 million shares remaining from a 10-million-share authorization approved in April 2005.
Greif Inc. (NYSE:
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News) said it plans to sell up to $300 million worth of senior notes due 2017. The Delaware, Ohio-based industrial packaging company plans to use the proceeds to fund the purchase of its 8 7/8 senior subordinated notes due 2012 and for general corporate purposes.
Independent Bank Corp. (NASDAQ:
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News) was downgraded to sell from neutral at FTN Midwest Research. The firm cited disappointing results from the company in the fourth quarter.
Intersil Corp. (NASDAQ:
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Mosaic (NYSE:
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News) was downgraded to neutral from buy at Banc of America Securities. The firm cited higher ammonia input costs for the move.
Nova Chemicals Corp. was downgraded to sell from hold at Citigroup Investment Research.
Packeteer (NASDAQ:
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News) shares slid after JMP Securities downgraded the company to market perform from market outperform.
Pfizer (NYSE:
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News) reported fourth-quarter net income more than tripled on nearly flat sales. Earnings were $9.45 billion, or $1.32 a share, compared with $2.73 billion, or 37 cents, in the year-earlier period. Revenue was $12.6 billion against $12.55 billion. The company reported that adjusted fourth-quarter earnings fell 12% to 43 cents a share. A survey of analysts by Thomson First Call produced a consensus estimate of 42 cents of profit on $12.26 billion of revenue. The drop in adjusted profit reflected "the timing of certain operating expenses in 2006," Pfizer said in a statement. Global pharmaceutical revenue was $11.7 billion, about even with the year-earlier quarter, and was $6.1 billion in the U.S., down 3%. The results reflected the loss of exclusivity of the depression and anxiety treatment Zoloft in the U.S. in June 2006, Pfizer said.
PetMed Express (NASDAQ:
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News) fiscal third-quarter earnings rose 3.1%, boosted by growth in retail new-order sales and retail reorder sales. The Pompano Beach, Fla., pet pharmacy had third-quarter earnings of $2.75 million, or 11 cents a share, compared with $2.67 million, or 11 cents, a year earlier. PetMed said sales for the quarter ended Dec. 31 rose 21% to $31.4 million from $25.9 million a year ago. Analysts surveyed by Thomson Financial expected, on average, earnings of 15 cents a share on revenue of $34 million.
Philips Electronics NV (NYSE:
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News) said fourth-quarter net profit more than doubled to 680 million euros ($882 million) from 332 million euros a year earlier, easily topping analysts' expectations for profit of 396 million euros. Revenue slipped to 8.13 billion euros from 8.19 billion, falling short of analysts' expectations for sales of 8.32 billion euros. Comparable sales rose 2%. Philips proposed to raise its annual dividend to 0.60 euros from 0.44 euros. The company also said it will raise its dividend pay-out ratio to a range of 40% to 50% from a previous range of 25% to 35% of continuing net income. Looking ahead, Philips said it's confident it can achieve its 2007 target of EBITA growth of at least 7.5% on sales growth of 5% to 6%.
Sears (NASDAQ:
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News) said Craig Monaghan, chief financial officer since September, will leave at the end of this month.
Semtech Corp. (NASDAQ:
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Sify Ltd. (NASDAQ:
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News) shares slumped after the India-based provider of Internet, network and e-commerce services reported third-quarter net earnings of $940,000, or breakeven per American Depositary receipt. In the same quarter last year, the company posted a net loss of $240,000, or breakeven per ADR. Sify reported revenue of $31.5 million, up 16% from $27.2 million last year.
Star Scientific (NASDAQ:
STSI -
News) shares dropped after the company said it plans to appeal a summary judgment against it in its patent infringement lawsuit against RJ Reynolds Tobacco Co. The company filed its suit in 2001, alleging that R.J. Reynolds had violated the company's process to reduce the level of nitrosamines - a carcinogenic toxin in tobacco. R.J. Reynolds is a unit of Reynolds American (NYSE:
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News).
Sunpower Corp. (NASDAQ:
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News) was downgraded to market perform from outperform at Piper Jaffray.
Take-Two Interactive said it's received a delisting notice from the Nasdaq Stock Market, citing the company's failure to file its Form 10-K for the fiscal year ended Oct. 31 with the Securities and Exchange Commission. The company said it will present its plans to regain compliance to the Nasdaq Listing Qualifications Panel by Jan. 25.
Tecumseh Products Co. (NASDAQ:
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News) named James Bonsall interim president and chief operating officer, a new position. In addition to his new role, Bonsall will continue as president of the company's engine and power train group and as managing director of AlixPartners.
Titan International (NYSE:
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News) said it may post a negative gross-profit margin for the fourth quarter and affirmed its sales forecast for all of 2007. The pressure on margin stems from Titan's effort to add off-the-road-tire capacity at its Freeport, Ill., and Des Moines, Iowa, tire facilities. That effort stems in turn from capacity constraints at its Bryan, Ohio, tire plant, Titan said in a statement. The company said that for 2006, its farm-tire business will be down at least $75 million from 2005. Titan still expects to report 2007 sales of $800 million to $825 million. Demand in January and February is "strong," Titan said. Titan also registered an offer with the Securities and Exchange Commission under which holders of its $81.2 million of 5.25% senior convertible notes due 2009 could convert the debt to common shares at an increased rate.
Tween Brands (NYSE:
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News) said Chief Operating Officer William May Jr. has resigned, effective today. The New Albany, Ohio-based retailer said it has named Kenneth Stevens as president and COO, effective Jan. 29. Additionally, the company said it plans to record a one-time after-tax charge of 2 cents to 3 cents a share during the fourth quarter for costs associated with May's separation agreement.
Westell Technologies (NASDAQ:
WSTL -
News) was downgraded to neutral from outperform at Cowen & Co. The firm cited a deteriorating outlook for the company's fundamentals.
Published by Michael Baron at MarketWatch
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