GameStop Corp. (GME) raised its fourth-quarter per-share earnings by 2 cents to a range of $1.11 to $1.12 from previously raised guidance of $1.09 to $1.10. The Grapevine, Texas, video game and entertainment software retailer also raised its earnings estimate by 2 cents to $1.77 to $1.78 for the fiscal year ended Feb. 2. Preliminary fourth-quarter same-store sales are forecasted to have come in at 17.4%,above expectations.
This was announced at 10 am, after the market had already opened....unusual. The stock has jumped up 1.32 to $47.04.
Friday, February 15, 2008
More Merger Talk in Airline Industry...
United, Continental talks advance. United Airlines (UAUA) and Continental (CAL) are in advanced negotiations and could move quickly if and when Delta (DAL) and Northwest (NWA) strike a deal. The two must wait for DAL/NWA because Northwest can potentially block any deal involving Continental until it merges itself. Meanwhile, United is still considering a bid for Delta if Delta fails to close a deal with Northwest; the two discussed a tie-up last month.
I Love This....
Greenspan: Recession knocks at the door. Former Fed chairman Alan Greenspan says the U.S. is on the edge of recession, and that the odds of an economic downturn are greater than 50-50. Home prices will continue to fall, which has already begun to take a toll on consumer spending.
Wow...he's really going out on a limb here....50-50 chance???
Wow...he's really going out on a limb here....50-50 chance???
Wal-Mart Target Raised...
Wal-Mart Stores Inc. (WMT). The Bentonville, Arkansas-based retailer's price target was raised today to $55 from $54 by Lehman Brothers (LEH). Wal-Mart's 2008 earnings forecast was also raised ahead of the discount retailer's full-year and fourth quarter results next Tuesday. The broker said it now anticipates the company to earn $3.35 a share in 2008, up from a prior estimate of $3.30. It maintained its overweight stance on the stock.
Lehman said the company will benefit in 2008 from initiatives to improve profitability, returns and generate stronger cash returns. The broker added that it expects Wal-Mart's sales to receive a boost from tax rebates, which households are expected to receive in May. For the fourth quarter, Lehman expects the company to post earnings of $1 a share on revenue of $105.7 billion.
Lehman said the company will benefit in 2008 from initiatives to improve profitability, returns and generate stronger cash returns. The broker added that it expects Wal-Mart's sales to receive a boost from tax rebates, which households are expected to receive in May. For the fourth quarter, Lehman expects the company to post earnings of $1 a share on revenue of $105.7 billion.
Chipotle Earnings Jump 62%; Shares Fall
Chipotle Mexican Grill Inc.'s (CMG) fourth-quarter net income climbed 62% as the company continued double-digit percentage same-store sales growth.
But its shares fell 14% in after-hours trading as the results failed to meet Wall Street expectations.
The burrito restaurant chain reported net income of $17.5 million, or 53 cents a share, up from $10.8 million, or 33 cents a share, a year earlier. Results included a 1-cent tax charge.
Revenue jumped 31% to $288.9 million. Same-store sales grew 10.6% on an increase in customer visits.
Analysts' mean estimates were for earnings of 55 cents a share on revenue of $289 million, according to a poll by Thomson Financial.
So....they missed by a penny and they sell the stock off 15%.
But its shares fell 14% in after-hours trading as the results failed to meet Wall Street expectations.
The burrito restaurant chain reported net income of $17.5 million, or 53 cents a share, up from $10.8 million, or 33 cents a share, a year earlier. Results included a 1-cent tax charge.
Revenue jumped 31% to $288.9 million. Same-store sales grew 10.6% on an increase in customer visits.
Analysts' mean estimates were for earnings of 55 cents a share on revenue of $289 million, according to a poll by Thomson Financial.
So....they missed by a penny and they sell the stock off 15%.
Dryships Profits and Revenues Soar...
DryShips Inc. (DRYS) late Thursday reportedfourth-quarter net income of $195.2 million, or $5.37 per share, which includesa capital gain on the sale of one vessel of $31.5 million, 87 cents a share. Excluding the gain, the Greece-based marine transport company's profit wouldhave been $163.7 million, or $4.50 a share.
The mean estimate of analysts polled by Thomson Financial was for aper-share profit of $4.04 a share. Time charter equivalent revenue in the three months ended Dec. 31 rose to $223.5 million versus the consensus analyst estimate of $209 million. In the same period last year, DryShips earned $35.9 million, or $1.02 ashare, on revenue of $74 million.
The company's shares closed at $84.25. The stock traded up to $90 in the aftermarket.
The mean estimate of analysts polled by Thomson Financial was for aper-share profit of $4.04 a share. Time charter equivalent revenue in the three months ended Dec. 31 rose to $223.5 million versus the consensus analyst estimate of $209 million. In the same period last year, DryShips earned $35.9 million, or $1.02 ashare, on revenue of $74 million.
The company's shares closed at $84.25. The stock traded up to $90 in the aftermarket.
Priceline.Com 4Q Beats Views
Priceline.com's profit rises to $32.9 million, or 68¢ cents a share, as revenue increases to $334.9 million. Excluding one-time items, company reports profit of 96¢ a share. Analysts expected earnings of 84¢ on revenue of $329 million.
Priceline stock (PCLN) has been a great performer, doubling in the last year. It is currently down 20 points from its high hit in December and looks like it is getting ready to break out to higher ground.
Priceline stock (PCLN) has been a great performer, doubling in the last year. It is currently down 20 points from its high hit in December and looks like it is getting ready to break out to higher ground.
Buffet Quietly Buying Kraft Foods...
Berkshire Hathaway, the closely watched investment vehicle of billionaire Warren Buffett, discloses yesterday that it was quietly accumulating shares of Kraft Foods in 2007, amassing an 8.6% stake by the end of the year.
GMAC Majority Owner Warns of Trouble Ahead
GMAC LLC, the auto and mortgage lender owned by Cerberus Capital and General Motors Corp., may face "substantial difficulty" if credit markets do not improve, Cerberus founder Stephen Feinberg said. GMAC posted a $724 million fourth-quarter loss and was downgraded by Moody's Investors Service as borrowers increasingly fell behind on payments.
Are you kidding me??? GMAC has been having severe troubles for at least 9 months...They've been shutting offices down everywhere. This is no surprise...
Are you kidding me??? GMAC has been having severe troubles for at least 9 months...They've been shutting offices down everywhere. This is no surprise...
Thursday, February 14, 2008
Thursday's Market Summary....
U.S. Markets:
Dow -175.26 (-1.40%)
Nasdaq -41.39 (-1.74%)
S&P 500 -18.35 (-1.34%)
News That Moved the Market:
Stocks Fall As Bernanke Predicts Difficult Beginning to 2008. Markets sold off Thursday, as Fed Chairman Ben Bernanke acknowledged that growth in the coming quarters will be slower. Along with Treasury Secretary Paulson, Bernanke testified in front of Congress, saying growth should decrease in 2008, but the Fed and government would work hard to make sure that the rate cuts and economic stimulus will have their intended effects on the U.S. economy. Though none of what was said today was unexpected, it seemed like a good reason for many to take profits from the recent rally.
UBS Dives Into the Red. Swiss bank UBS (UBS, -8.2%) announced a $11.3 billion writedown, confirming the company's first full-year loss in 10 years. UBS added that it still has significant exposure to the mortgage market in the U.S. and more major writedowns were not out of the question.
FGIC Loses Aaa Rating. FGIC Corp., the fourth largest bond insurer, lost its Aaa bond insurance rating at Moody's. The company was about $4 billion short of the amount of capital needed. However, Moody's also said MBIA (MBI, +8.7%) and Ambac (ABK, +12.4%) are better positioned "from a capitalization and business franchise perspective" compared to FGIC, lessening fears other larger bond insurers will share FGIC's fate.
Comcast Brings Back Dividend. Comcast (CMCSA, +8.0%) surged higher after the company reported a 54% increased in earnings and its first dividend in 10 years. The company also sees revenue in 2008 rising 8%-10%.
Tomorrow Notable Earnings:
Abercrombie & Fitch Co.(ANF) Before Open
Economic Events:
8:30 AM: Empire State Mfg Survey
8:30 AM: Import and Export Prices
9:00 AM: Industrial Production
10:00 AM: Consumer Sentiment
Dow -175.26 (-1.40%)
Nasdaq -41.39 (-1.74%)
S&P 500 -18.35 (-1.34%)
News That Moved the Market:
Stocks Fall As Bernanke Predicts Difficult Beginning to 2008. Markets sold off Thursday, as Fed Chairman Ben Bernanke acknowledged that growth in the coming quarters will be slower. Along with Treasury Secretary Paulson, Bernanke testified in front of Congress, saying growth should decrease in 2008, but the Fed and government would work hard to make sure that the rate cuts and economic stimulus will have their intended effects on the U.S. economy. Though none of what was said today was unexpected, it seemed like a good reason for many to take profits from the recent rally.
UBS Dives Into the Red. Swiss bank UBS (UBS, -8.2%) announced a $11.3 billion writedown, confirming the company's first full-year loss in 10 years. UBS added that it still has significant exposure to the mortgage market in the U.S. and more major writedowns were not out of the question.
FGIC Loses Aaa Rating. FGIC Corp., the fourth largest bond insurer, lost its Aaa bond insurance rating at Moody's. The company was about $4 billion short of the amount of capital needed. However, Moody's also said MBIA (MBI, +8.7%) and Ambac (ABK, +12.4%) are better positioned "from a capitalization and business franchise perspective" compared to FGIC, lessening fears other larger bond insurers will share FGIC's fate.
Comcast Brings Back Dividend. Comcast (CMCSA, +8.0%) surged higher after the company reported a 54% increased in earnings and its first dividend in 10 years. The company also sees revenue in 2008 rising 8%-10%.
Tomorrow Notable Earnings:
Abercrombie & Fitch Co.(ANF) Before Open
Economic Events:
8:30 AM: Empire State Mfg Survey
8:30 AM: Import and Export Prices
9:00 AM: Industrial Production
10:00 AM: Consumer Sentiment
Bernanke Sees 'Sluggish' Growth But Pickup In Late '08
Fed Chairman Ben Bernanke keeps the door open to further interest rate reductions, saying downside risks to economic growth remain from housing, employment and credit markets. But he appears more upbeat on economy's prospects for later this year and next when combination of fiscal and monetary stimulus kicks in.
The market obviously hates this guy. Every time he speaks on TV they sell off the market. Before the meeting..the Dow was up 35-50 points. It is now down 138 points.
The market obviously hates this guy. Every time he speaks on TV they sell off the market. Before the meeting..the Dow was up 35-50 points. It is now down 138 points.
Abnormal Move: Wellcare
Wellcare (WCG) up 3.70 to $52.29
This has been a wild ride, but this stock is ticking higher on no news this morning. In the past two months, the stock has ticked up (like this) ahead of a contract renewal announcement...each time, filed on Friday after the close.
On Friday, January 11, after the close...the company reported a Medicare contract renewal in 5 states. The following Monday, the stock gapped up 5 and closed 10 points higher on the day. Could we get a repeat??
This has been a wild ride, but this stock is ticking higher on no news this morning. In the past two months, the stock has ticked up (like this) ahead of a contract renewal announcement...each time, filed on Friday after the close.
On Friday, January 11, after the close...the company reported a Medicare contract renewal in 5 states. The following Monday, the stock gapped up 5 and closed 10 points higher on the day. Could we get a repeat??
Jobless Claims Fall....
US weekly jobless claims fell 9,000 to 348,000. The number of people filing new claims for unemployment insurance fell for the second week in a row while the four-week moving average for initial claims rose to its highest level in over two years, the Labor Department said today.
Nvidia Revenues Surge...
Graphics chip-maker Nvidia Corp. (NVDA) posted a 58% jump in fiscal fourth-quarter net income, as a 37% surge in revenue offset rising costs. The fabless semiconductor company reported net income of $257 million, or 42 cents a share, for the quarter ended Jan. 27, compared with $163.5 million, or 27 cents a share, a year earlier. Excluding acquisition and stock-based compensation expense, earnings came to 49 cents a share. Revenue in the latest quarter rose to $1.2 billion from $878.9 million.
Analysts polled by Thomson Financial had expected the Santa Clara, Calif., company to post earnings, excluding items, of 47 cents a share on revenue of $1.19 billion.
NVDA is down 2.85 to $24.15 this morning. It was actually up to $27 yesterday after the close. Looks like an overreaction selloff to me.
Analysts polled by Thomson Financial had expected the Santa Clara, Calif., company to post earnings, excluding items, of 47 cents a share on revenue of $1.19 billion.
NVDA is down 2.85 to $24.15 this morning. It was actually up to $27 yesterday after the close. Looks like an overreaction selloff to me.
Goldman Downgrades Intel....
Shares of Intel Corp. slipped in premarket trading Thursday after Goldman Sachs removed the semiconductor giant's stock from its conviction buy list, citing concerns over the impact of macroeconomic issues on business demand.
Baidu Beats Estimates...
China's #1 search engine, Baidu.com (BIDU), said Q4 earnings grew 79%. EPS of $0.87 on revenue of $79.3M beat analyst estimates of $0.72 on $77.1M in revenue.
Looking ahead, Baidu sees Q1 2008 revenue of $73.1-75.1M, lower than the $77.9M analysts had been looking for. Shares gained almost 5% in AH trading.
Looking ahead, Baidu sees Q1 2008 revenue of $73.1-75.1M, lower than the $77.9M analysts had been looking for. Shares gained almost 5% in AH trading.
ValueClick Revenues Ahead of Estimates...
Internet ad firm ValueClick (VCLK) reported late Wed. Q4 EPS of $0.18, in line with estimates. Revenue of $183.1M was stronger than the $175.77M analysts expected. ValueClick predicted Q1 EPS of $0.15-0.16, lower than consensus of $0.18, and Q1 revenue of $166M-$170M vs. consensus estimates of $175.45M.
Shares were up strongly after the company announced it settled an FTC probe with a $2.9M payment, without conceding that it violated any law.
Shares were up strongly after the company announced it settled an FTC probe with a $2.9M payment, without conceding that it violated any law.
Back to the Northwest / Delta Deal....
Sources say Air France-KLM will take a stake on unknown size in a combined Delta Air Lines (DAL) and Northwest (NWA) in exchange for a board seat. Delta and Northwest have agreed on major terms, including keeping Delta's name and headquarters, sources say.
Comcast Beats....
Comcast (CMCSA), #1 U.S. cable operator, said Q4 profits jumped 54%. EPS of $0.20 on revenue of $8.01B beat consensus estimates of $0.17 on revenue of $7.9B.
Comcast said it will repurchase another $6.9B in shares by end of 2009; initiated an annual dividend of $0.25; and said 2008 free cash flow should grow at least 20%.
This stock has fallen from a high of $29 in July 07 to yesterday's close of $17.81. It is up to $19.04 premarket.
Comcast said it will repurchase another $6.9B in shares by end of 2009; initiated an annual dividend of $0.25; and said 2008 free cash flow should grow at least 20%.
This stock has fallen from a high of $29 in July 07 to yesterday's close of $17.81. It is up to $19.04 premarket.
Paulson Says US Will Avoid Recession...
Treasury Secretary Henry Paulson will tell Congress the U.S. economy is sound, despite expectations of significant housing market softness. The economy will continue to grow, albeit at a slower pace. Current initiatives may help mitigate the situation, "and we remain open to other good ideas as we move forward," he will say, according to prepared notes.
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