Apple Inc. (NasdaqGS:
AAPL -
News) Chief Operating Officer Tim Cook reiterated that the company remains on track to release its iPhone mobile-phone product in June, and that Apple expects to sell 10 million of the devices in 2008.
Audible Inc. (NasdaqGM:
ADBL -
News) reported a fourth-quarter net loss of $700,000, or 3 cents a share, compared with a net loss of $2.18 million, or 9 cents a share, in the year-ago period. Revenue at the Newark, N.J.-based provider of Internet audio content rose to $23.3 million in the latest quarter from $18.3 million a year ago. The stock was upgraded to buy from hold at Jefferies & Co.
BEA Systems (NasdaqGS:
BEAS -
News) was upgraded to peer perform from underperform at Bear Stearns.
CDC Corp. (NasdaqGM:
CHINA -
News) lifted its financial outlook for 2007, saying it now expects adjusted net income of $57 million to $62 million, above its prior forecast of $55 million to $60 million. The company expects revenue of $415 million to $420 million for the year, a boost from its previous estimate of $401 million to $411 million.
Ciena (NasdaqGS:
CIEN -
News) was upgraded to overweight from neutral by J.P. Morgan, as the broker said the recovery in the optical market is greater than it first expected.
Deckers Outdoor Corp.'s (NasdaqGS:
DECK -
News) preliminary fourth-quarter results indicate net income nearly doubled to $23.5 million, or $1.82 a share, from $12.1 million, or 94 cents a share, a year earlier. The Goleta, Calif., maker of outdoor footwear and apparel said net sales increased 37% to $124.4 million from $91 million a year ago.
Dollar Thrifty Automotive Group (NYSE:
DTG -
News) reported a fourth-quarter loss of $2.7 million, or 11 cents a share, down from a year-ago profit of $8.2 million, or 31 cents a share. The latest results include 10 cents a share in transition costs related to the outsourcing of information technology services and a charge of 5 cents a share from a decrease in the fair value of derivatives, while last year's performance reflects a gain of 11 cents a share from an increase in the fair value of derivatives. Revenue rose 11.5% in the three months ended Dec. 31 to $392.8 million from $352.4 million in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a loss of a penny per share in the December period. The company said the latest results reflect a very strong pricing environment, as well as significantly higher vehicle depreciation and interest costs compared to last year. Looking ahead, the Tulsa, Okla., car rental company sees earnings of $2.50 to $2.90 a share in 2007. Wall Street's current consensus estimate is for a profit of $2.62 a share for the year.
Dollar Tree Stores Inc.'s (NasdaqGS:
DLTR -
News) fiscal fourth-quarter net income rose to $97.6 million, or 96 cents a share, from $86.5 million, or 81 cents a share, a year ago. A Thomson Financial survey of analysts, on average, predicted earnings of 94 cents a share for the quarter. Analysts' estimates usually exclude items. The Chesapeake, Va., discount retailer's net sales for the quarter ended Feb. 3 rose 22% to $1.32 billion from $1.08 billion a year ago, boosted by an extra sales week in the current quarter. The company expects first-quarter earnings of 32 cents to 35 cents a share on sales of $935 million to $955 million.
Dycom Industries Inc. (NYSE:
DY -
News) shares rose after the Palm Beach Gardens, Fla.-based engineering and construction services provider reported fiscal second-quarter net earnings of $5.59 million, or 14 cents a share, up from $3.87 million, or 10 cents a share, in the year-ago period. Revenue rose to $258.3 million from $237.1 million. Analysts polled by Thomson Financial were expecting a per-share profit of 13 cents on revenue of $253.4 million. Dycom forecast fiscal third-quarter earnings from continuing operations of 23 cents to 28 cents a share on revenue of $275 million to $295 million. Analysts are looking for a per-share profit of 24 cents on revenue of $275 million.
Goodyear Tire & Rubber Co. (NYSE:
GT -
News) plans to record a charge of $65 million in the first quarter of 2007 for changes to its benefit and pension plans. The Akron, Ohio-based tire maker said, among other changes, current and future salaried retirees will contribute more toward the cost of their medical benefits and that the company would freeze its defined benefit pension plan for current salaried employees, replacing it with 401(k) retirement accounts. The changes will be phased in over a two-year period, and Goodyear expects savings of $80 million to $90 million in 2007, $100 million to $110 million in 2008, and $80 million to $90 million in 2009 and beyond.
Hospira (NYSE:
HSP -
News) reported a nearly 80% jump in fourth quarter profit Wednesday on higher product volumes, higher prices and favorable currency exchange. The company earned $47.4 million, or 30 cents a share, on the period - up from $26.6 million, or 16 cents. On an adjusted basis, Hospira said it would have earned 43 cents a share, vs. 32 cents in the last three months of 2005. Revenue came in at $706.5 million, a gain of 9.3%. The average estimate of analysts polled by Thomson Financial was for Hospira to earn 38 cents a share on $674 million in revenue.
Kenneth Cole Productions Inc. (NYSE:
KCP -
News) reported fourth-quarter net earnings of $7.99 million, or 39 cents a share, up 6.9% from $7.48 million, or 37 cents a share, in the year-ago period. Revenue in the quarter ended Dec. 31 rose to $122.4 million from $119.8 million.
King Pharmaceuticals (NYSE:
KG -
News) reported fourth-quarter earnings of $37 million, or 15 cents a share, up from a year-ago loss of $95 million, or 39 cents a share. Excluding items, such as charges from asset impairment and an arbitration settlement, the company earned $98.8 million, or 41 cents a share, in the latest quarter. Revenue rose in the three months ended Dec. 31 to $512.9 million from $423.3 million in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a profit of 37 cents a share in the December period on revenue of $480.6 million.
Komag (NasdaqGS:
KOMG -
News) shares rose after American Technology Research analyst Shaw Wu lifted his rating on the hard-disk maker's stock to neutral from sell. Wu said Komag is benefitting from more sales to its largest customer, Seagate Technology , which accounts for 37% of Komag's revenue. However, Wu warned that Komag faces other fundamental challenges as it deals with rising costs and competition involving a shift to newer disk-recording technologies.
L-3 Communications (NYSE:
LLL -
News) was upgraded to neutral from underweight by J.P. Morgan, with the brokerage saying the stock should have limited downside given its high free cash flow yield. "We believe 2007 could be a more challenging year for defense stocks, and given L-3's more modest valuation, we no longer expect it to underperform the group," the broker said.
Leap Wireless International (NasdaqGS:
LEAP -
News) shares advanced after the San Diego-based provider of wireless communications services reported a fourth-quarter net loss of $39.4 million, or 60 cents a share. In the same quarter last year, the company posted a net profit of $4.95 million, or 8 cents a share. Revenue rose to $315.5 million from $228.9 million. Analysts polled by Thomson Financial were expecting a per-share loss of 35 cents on revenue of $316 million. Leap said it added 262,000 net new customers in the fourth quarter, and expects to add 260,000 to 320,000 net new customers in the first quarter.
Martha Stewart Living Omnimedia (NYSE:
MSO -
News) said fourth-quarter net income jumped to $16.2 million, or 31 cents a share, from $2.9 million, or 6 cents a share in the year-ago period. Total revenue rose to $97 million from $84.6 million. Analysts, on average, expected it to earn 25 cents a share on revenue of $95 million, according to Thomson Financial. For 2007, the company is expecting revenue in the range of $330 million to $340 million, operating income in the range of $5.5 million to $8.5 million and adjusted EBITDA in the range of $32 million to $35 million, including an investment of $8 million in "Blueprint" magazine.
Medical Action Industries (NasdaqGS:
MDCI -
News) was upgraded to buy from neutral at Sidoti & Co.
Merck & Co. (NYSE:
MRK -
News) said it expects its first-quarter profit will be 63 to 67 cents a share, excluding restructuring charges related to site closures and position eliminations, and targets reported first-quarter earnings per share of 58 cents to 64 cents. Whitehouse Station, N.J.-based Merck cited early revenue trends across Merck's range of products. The company also raised its anticipated 2007 earnings forecast range to $2.55 to $2.65 a share, excluding items related to site closures and position eliminations, and its full-year 2007 reported earnings range to $2.40 to $2.55 a share. Analysts, on average, expect it to earn 60 cents a share for the first quarter and $2.62 a share for the year, according to Thomson Financial. Merck said its forecasts do not reflect the establishment of any reserves for any potential liability relating to the Vioxx litigation.
Midwest Air Group Inc. (AMEX:
MEH -
News) , citing its own growth forecasts, urged its shareholders again Wednesday to reject a takeover offer from AirTran Holdings Inc. "AirTran's low-cost carrier business model is in trouble. By virtually any metric, AirTran's business is deteriorating," according to a letter Midwest sent to its shareholders.
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