Jim Cramer Blog

American Eagle Outfitters Inc. (NasdaqGS:AEOS - News) said its fourth-quarter net income increased to $150.2 million, or 66 cents a share, from $107.5 million, or 47 cents a share, a year ago, helped by a higher merchandise margin. A Thomson Financial survey of analysts, on average, projected earnings of 66 cents a share for the quarter. Analysts' estimates usually exclude items. The Warrendale, Pa., retailer's revenue for the quarter ended Feb. 3 rose 27% to $973.4 million from $769.1 million, while quarterly same-store sales rose 14%. The company said due to the extra week in fiscal 2006, fourth quarter same-store sales are compared to a 14 week period ended February 4, 2006.
Conseco Inc. (NYSE:CNO - News) reported a large drop in fourth-quarter net income late Tuesday after the insurer was hit with significant losses in its long-term care business.
Copart Inc. (NasdaqGS:CPRT - News) reported second-quarter net earnings of $30.4 million, or 32 cents a share, up from $7.85 million, or 8 cents a share, during the year-ago period. Last year's results were adversely impacted by about $4.9 million as a result of the Gulf coast hurricanes. The Fairfield, Calif.-based provider of vehicle salvage disposition services posted revenue of $128.9 million vs. $125.1 million.
CV Therapeutics Inc. (NasdaqGM:CVTX - News) shares plunged after the biopharmaceutical company said its angina drug Ranexa was shown to be ineffective in treating patients with acute coronary syndrome.
Danaher Corp. (NYSE:DHR - News) said it now sees earnings of 75 to 77 cents a share in the first quarter. The company's previous outlook was for a profit of 72 to 77 cents a share in the March period. The current average estimate of analysts polled by Thomson Financial is for a profit of 77 cents a share in the first quarter. The company issued the forecast ahead of a presentation by H. Lawrence Culp at a conference in New York City sponsored by Citigroup.
EFJ Inc. (NasdaqGM:EFJI - News) shares tumbled after the Irving, Texas-based wireless company reported a fourth-quarter net loss of $7.79 million, or 30 cents a share. In the same quarter last year, the company posted a net profit of $15.4 million, or 59 cents a share. Revenue fell to $23.9 million from $29.8 million. Analysts polled by Thomson Financial were expecting a per-share loss of 8 cents on revenue of $31.3 million. Separately, EFJ forecast fiscal 2007 revenue of $185 million to $195 million and operating income of $7 million to $10 million.
Fairchild Semiconductor (NYSE:FCS - News) said it continues to expects a 3% to 6% decline in its first-quarter revenue. The outlook doesn't include the results of consolidating System General Corp.
Genesco Inc. (NYSE:GCO - News) reported fourth-quarter earnings of $35.3 million, or $1.35 a share, up from a year-ago profit of $31.3 million, or $1.15 a share. On a continuing operations basis, the Nashville, Tenn., footwear company said it earned $35.7 million, or $1.36 a share, in the latest quarter. This performance includes a gain of a penny per share from the recognition of gift card-related income and favorable litigation settlement. Sales rose in the latest three months to $476.9 million from $406.3 million in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a profit of $1.31 a share in the January period. Looking ahead, Genesco forecast earnings of $2.78 to $2.81 a share for the fiscal year ending Feb. 2, 2008 on sales of about $1.6 billion. For the first quarter, it sees earnings of 28 cents a share on sales of between $339 million and $341 million. Wall Street's current consensus estimates are for profits of $2.97 a share and 47 cents a share in the respective periods. The company said it expects the performance of its Underground Station Group and Hat World Group businesses to continue to be impacted by ongoing softness in the urban market in the first half of the year.
Jupitermedia Corp. (NasdaqGS:JUPM - News) terminated talks with Getty Images Inc. over a potential transaction between the two companies.
Goodrich Petroleum Corp. (NYSE:GDP - News) shares fell after the Houston-based company rescheduled the release of it fourth-quarter financial results to March 13 due to a delay in finalizing its year end 2006 independent reserve report.
Heelys Inc.'s (NasdaqGM:HLYS - News) fourth-quarter earnings rose sharply to $11.5 million, or 44 cents a share, from $1.44 million, or 6 cents a share, a year earlier. The Dallas maker of sports-related products said revenue for the quarter rose sharply to $71.1 million from $14.9 million. On average, analysts polled by Thomson Financial expected fourth-quarter earnings of 28 cents a share on revenue of $61 million. Analyst estimates typically exclude items.
Hypercom (NYSE:HYC - News), a Phoenix-based firm involved in electronic transactions, said it narrowed its fourth-quarter loss to $2.74 million, or 5 cents a share, from $10.6 million, or 20 cents a share. Hypercom's revenue fell 5% to $64.8 million on a decline in multi-lane product revenue. Analysts polled by Thomson Financial expected earnings of 2 cents a share on revenue of $61.7 million. It sees 2007 revenue between $284 million and $290 million.
Insmed Inc. (NasdaqGM:INSM - News) said it's restructuring its operations as a result of its litigation settlement with Tercica Inc. and Genentech Inc. , which was announced Tuesday. As a result, Richmond, Va.-based Insmed expects its workforce of 150 to be reduced by roughly 34%. The company said its sales and marketing group will be eliminated and production at its manufacturing site in Boulder, Colo., will be scaled back to reflect the reduced drug product requirement. The company expects the savings to allow it to fund its operations into the fourth quarter of 2007. As of Dec 31, Insmed had $24.1 million of cash on hand.
Plato Learning Inc. (NasdaqGM:TUTR - News) shares fell after the Minneapolis-based provider of computer-based educational products late Tuesday reported a fiscal first-quarter net loss of $4.53 million, or 19 cents a share, compared with a net loss of $3.2 million, or 14 cents a share, in the year-ago period. Revenue fell to $17 million from $23.5 million. The company expects fiscal 2007 revenue in the mid-$70 million range and for its net loss to approximate its 2006 net loss excluding restructuring, impairment and other charges.
Rocky Brands (NasdaqGS:RCKY - News) shares dropped after the Nelsonville, Ohio-based footwear company reported a fourth-quarter net loss of $77,875, or a penny a share. In the same quarter last year, Rocky Brands posted a net profit of $2.61 million, or 46 cents a share. Revenue fell to $70.6 million from $74.9 million. The company expects fiscal 2007 earnings per share growth of 35%, and revenue growth of 5%.
Westwood One Inc. (NYSE:WON - News) swung to a fourth-quarter loss of $488.6 million, or $5.68 a share, from net income of $22.5 million, or 25 cents a share, a year ago, on a goodwill impairment charge of $515.9 million in the latest period. Excluding items, the New York media company said Wednesday it earned $14.6 million, or 17 cents a share, for the final quarter of 2006. Net revenue decreased 12% to $129.8 million from $147 million. National commercial advertisement revenue declined 14% and local/regional commercial advertisement revenue fell 9.4%. Analysts polled by Thomson Financial expected, on average, fourth-quarter earnings of 10 cents a share and revenue of $125.8 million for the provider of sports, news and traffic updates to radio stations.
Weyerhaeuser (NYSE:WY - News) was downgraded by UBS to reduce from neutral due primarily to valuation. Analyst Richard Schneider said that based on fundamentals, the stock should be trading around $70 a share, as the company's wood products business is posting losses, homebuilding is declining and as its containerboard business is being hurt by higher wastepaper costs. The stock was down $1.65, or 1.9%, at $84.55 in pre-open trading. As of Tuesday's closing, the stock has gained 22% since the end of 2006, and reached an all-time high of $87.09 in intraday trading on Feb. 27. Schneider said the stock may be trading on expectations that the company will make moves to unlock shareholder value, with some pressuring the company to become a real estate investment trust.
Published By MarketWatch

Labels: AEOS, CNO, CPRT, CVTX, DHR, EFJI, FCS, GCO, GDP, HLYS, HYC, INSM, JUPM, RCKY, TUTR, WON, WY

Ambac (NYSE:ABK - News) was upgraded to overweight from equal-weight at Morgan Stanley
Andersons Inc. (NASDAQ:ANDE - News) was upgraded to buy from neutral at Banc of America Securities. The firm also lifted its price target on the stock to $52 from $44.
Bear Stearns (NYSE:BSC - News) said its fourth quarter net income rose 38% to a record $562.8 million, or $4 a share on total revenue of $4.47 billion. A year ago, the company earned $407 million, or $2.90 a share, on $3.18 billion total revenue. Analysts polled by Thomson Financial, on average, expected the company to earn $3.36 a share on revenue of $2.20 billion.
Cadence Design Systems (NASDAQ:CDNS - News) priced offerings of senior convertible notes worth a total of $500 million. The company said the initial conversion rate for both the 2011 notes and the 2013 notes is 47.2813 common shares per $1,000 in principal amount of notes for a conversion price of about $21.15.
Carrizo Oil & Co. (NASDAQ:CRZO - News) was initiated with an outperform rating at RBC Capital Markets.
Ciena Corp. (NASDAQ:CIEN - News) reported fiscal fourth-quarter earnings of $13.1 million, or 14 cents a share, up from a year-ago loss of $252.9 million, or $3.06 a share. Last year's results included a total charge of $222.3 million related to impairment of goodwill and long-lived assets. On an adjusted basis, excluding items, the Linthicum, Md., maker of optical networking products earned $14.6 million, or 16 cents a share, in the latest quarter. Revenue rose 35.3% in the three months ended Oct. 31 to $160 million from $118.2 million in the same period a year earlier. The average estimate of analysts polled by Thomson First Call was for a profit of 13 cents a share in the October period on revenue of $160 million. Looking ahead, Ciena said it expects low single-digit revenue growth in the first quarter on a sequential basis.
Costco Wholesale (NASDAQ:COST - News), the Issaquah, Wash., warehouse retailer, reported fiscal first-quarter net income rose 9.8% on 9.4% higher revenue. For the 12 weeks ended Nov. 26, Costco profit rose to $236.9 million, or 51 cents a share, from $215.8 million, or 45 cents, in the year-earlier period. Revenue reached $14.15 billion from $12.93 billion. Net sales rose 9% to $13.85 billion. Same-store sales -- revenue from stores open at least a year, eliminating the effects of acquisitions and divestitures -- rose 4%. A survey of analysts by Thomson First Call produced consensus estimates of 50 cents of profit on $14.06 billion of sales for Costco. The retailer also said it would take a second-quarter charge of $45 million as it increased the exercise price on certain stock options for more than 1,000 employees who are U.S. taxpayers. It said that it's making the changes in line with its internal stock-option inquiry and with a Nov. 30 ruling by the U.S. Internal Revenue Service. The company also said it would make payment to the employees to reduce the adverse tax effects of the move.
Cousins Properties Inc. (NYSE:CUZ - News) was upgraded to overweight from equal-weight at Lehman Bros. The firm also lifted its price target on the stock to $38 from $35.
Empire Resources (AMEX:ERS - News) said its board has declared a special dividend of 16 cents a share for the fourth quarter, in addition to its regular quarterly payout of 5 cents a share. The dividends are to be paid on Jan. 17 to shareholders of record on Dec. 29. The Fort Lee, N.J., distributor of semi-finished aluminum products also said its board plans to review its internal dividend policy on a quarterly basis.
First Potomac (NYSE:FPO - News) was upgraded to buy from neutral at Merrill Lynch.
Ford Motor (NYSE:F - News) was upgraded to neutral from sell at Merrill Lynch, which said the automaker's efforts to raise liquidity have been more successful than previously expected. Analyst John Murphy believes the next move by Ford's chief executive Alan Mulally will be to unveil a new operating plan at the Detroit auto show in mid-January. "It is tough to believe that a turnaround can be affected in short order, but clarity on Mulally's plan could be viewed positively by the market," Murphy said in a research note. "Furthermore, Ford's new liquidity position may allow it to be tougher or more creative in the course of negotiating a contract with the United Auto Workers in 2007."
GenVec (NASDAQ:GNVC - News) shares leapt after the Gaithersburg, Md.-based biopharmaceutical company said an independent data safety monitoring board has completed its interim analysis of safety data from the ongoing Phase II/III clinical trial with TNFerade in locally advanced pancreatic cancer. The DSMB recommended that the trial continue, GenVec said, and also supported the use of endoscopic ultrasonography as an alternative to percutaneous tumor administration. GenVec said it has provided its interim safety data to the Food and Drug Administration and is waiting for final clearance to move forward with EUS administration.
Great Wolf Resorts (NASDAQ:WOLF - News) was upgraded to buy from hold at A.G. Edwards.
Honeywell International (NYSE:HON - News) said it expects earnings of $2.85 to $2.95 a share for fiscal 2007, a performance that would represent growth of between 13% and 17%. It sees sales growing about 5% to $32.6 billion for 2007. The Morris Township, N.J., diversified technology and manufacturing products company sees 2007 cash flow from operations of between $3.2 billion and $3.4 billion for the year with free cash flow projected between $2.4 billion and $2.6 billion. The current average estimate of analysts polled by Thomson First Call is for earnings of $2.93 a share in fiscal 2007 on revenue of $32.75 billion. The Dow component also confirmed an outlook for earnings of $2.51 to $2.53 a share in fiscal 2006 on sales of roughly $31.2 billion. Wall Street's current consensus estimate for 2006 is for earnings of $2.52 a share on revenue of $31.15 billion.
Icos (NASDAQ:ICOS - News) issued a 2006 and 2007 financial forecast early Thursday, ahead of a planned December 19 special shareholders meeting where stockholders will vote on whether to accept partner Eli Lilly's takeover offer of $32 a share in cash. For the fourth quarter 2006, Icos sees earnings of 17 to 22 cents a share, with full-year earnings of 33 to 38 cents a share. Including taxes, Icos expects fourth quarter results of 26 to 34 cents a share, and 49 to 57 cents for the full year 2006. For 2007, Icos is expecting earnings per share of 78 to 94 cents a share. Including taxes, the 2007 range is earnings per share of $1.17 to $1.41. Icos and Lilly co-market the erectile dysfunction drug Cialis.
Insmed (NASDAQ:INSM - News) shares surged after the biopharmaceutical company said recent study results confirm that Iplex, a treatment for growth failure, allows more flexibility in handling and administration for patients and caregivers.
Input/Output Inc. (NYSE:IO - News) said it's received a contract to provide 14 of its land seismic imaging systems to Oil and Natural Gas Corp. Ltd., India's national oil company. The company said the deal is worth more than $50 million.
Journal Register Co. (NYSE:JRC - News) agreed to sign on to Google's Print Ad program, which allows current Google advertisers to buy ads in print newspapers. Journal Register said its flagship newspaper, the New Haven (Conn.) Register, will participate in the partnership. Financial terms were not disclosed. More than 50 major newspapers are currently a part of the Google program, including the New York Times, the Boston Globe, the Washington Post and the Seattle Times. Newspapers are seeking ways to increase print ad revenue, which has been on the decline for several years as more readers turn to the Internet for news and information, and several traditional newspaper advertisers have fallen on hard times.
Liberty Media Holding Corp. (NASDAQ:LCAPA - News) was upgraded to buy from hold at Deutsche Bank Securities.
LodgeNet Entertainment Corp. (NASDAQ:LNET - News) agreed with Liberty Media to purchase Ascent Entertainment Group Inc., which owns On Command Corp., for $380 million. The purchase will be paid at closing by issuing 2.05 million LodgeNet shares, and $332 million in cash.
Microsoft Corp. (NASDAQ:MSFT - News) and Hewlett-Packard (NYSE:HPQ - News) said they have entered a 3-year agreement to sell technology products and services. The companies said they would invest at least $300 million to cover their collaborative efforts.
Nuance Communications (NASDAQ:NUAN - News) was initiated with a buy rating at Citigroup Investment Research.
Pacer International (NASDAQ:PACR - News) was initiated with a buy rating at Key Banc Capital Markets.
PGT Inc. (NASDAQ:PGTI - News) was upgraded to buy from neutral at SunTrust Robinson Humphrey. The firm cited valuation.
Stanley Works (NYSE:SWK - News) agreed to acquire HSM Electronic Protection Services, a provider of security alarm monitoring services based in Lisle, Ill., for $545 million. Stanley expects the deal to close in early 2007. It anticipates the transaction will be neutral to earnings in 2007 before adding 20 to 25 cents a share to earnings by 2009, the third year, and 35 to 35 cents a share to earnings by 2011, the fifth year.
Suntech Power Holdings (NYSE:STP - News) was initiated with a buy rating at Jefferies & Co.
Supervalu (NYSE:SVU - News) said it now expects fiscal 2007 per-share earnings of $2.32 to $2.43, up from its previous range of $2.18 to $2.41. The Minneapolis-based supermarket operator also narrowed its 2007 pro forma view, saying it sees per-share earnings of $2.66 to $2.74. The previous pro forma earnings view was $2.62 to $2.80 a share for the year.
Thermo Fisher Scientific (NYSE:TMO - News) estimated fourth-quarter adjusted earnings at 52 cents to 54 cents a share and increased its estimates of adjusted earnings for 2006 and 2007. A survey of analysts by Thomson First Call produced a consensus estimate of 53 cents for the quarter. For 2006, Thermo Fisher expects to earn an adjusted $1.83 to $1.86 a share on revenue of $8.8 billion. Thermo Electron and Fisher Scientific merged early in November; the revenue estimate is pro forma, as if the two companies had been combined for the full year. First Call projects earnings of $1.81 for 2006. In 2007, the company expects to earn $2.35 to $2.45 a share, compared with its previous estimate of $2.27 to $2.37.
Topps Co. (NASDAQ:TOPP - News) was initiated with a buy rating at Morgan Joseph & Co. The firm set a price target on the stock of $11.
Shares in Worthington Industries (NYSE:WOR - News) jumped after Prudential Equity Group released a note late Wednesday speculating that the Columbus, Ohio-based steel processor would be a likely target for No. 1 steel maker Mittal Steel (NYSE:MT - News), the main subsidiary of Arcelor Mittal . Prudential analyst John Tumazos noted Mittal has made public statements indicating an interest in owning steel distribution assets in the U.S. Worthington "would effectively satisfy MT's requirements," said Tumazos, adding he had no inside information about any deal.
-MarketWatch

Labels: ABK, ANDE, BSC, CDNS, CIEN, COST, CRZO, CUZ, ERS, F, FPO, GNVC, HON, ICOS, INSM, IO, JRC, SVU, TMO, WOLF