Earnings - 11th Sept 2008

4:37PM China Precision Steel announces preliminary results for FY08 above street ests (CPSL) 4.96 +0.62 : China Precision Steel expects to report record revs for FY08 of $87.7 mln, an increase of 62.6% from $54.0 mln in revenues in fiscal year 2007, and ahead of consensus of $75.41 mln. The co's revs growth is attributable to increased sales of high-carbon, cold-rolled products, subcontracting income and exports of low-carbon, hard rolled products. Gross profit for the year is expected to be a record $22.5 mln, an increase of 49.6% from $15.0 million in fiscal 2007. Gross margin is expected to be 25.6% in FY08, compared to 27.9% in fiscal 2007.

8:36AM Campbell Soup beats by $0.01, reports revs in-line (CPB) 37.58 : Reports Q4 (Jul) earnings of $0.26 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.25; revenues rose 12.8% year/year to $1.72 bln vs the $1.72 bln consensus. "Consistent with our long-term target growth rate, we expect to deliver adjusted net earnings per share growth between 5 and 7 percent from the fiscal 2008 adjusted base of $2.09... In fiscal 2009, we expect our continuing operations, excluding the negative impact of one less week in the fiscal year and recent divestitures, to deliver sales growth in excess of our long-term target range of between 3 and 4 percent. We expect to deliver EBIT growth, excluding items impacting comparability, slightly below our long-term target growth rate of between 5 and 6 percent, reflecting the impact of one less week in the fiscal year, higher marketing spending behind increased innovation in the U.S. and increased investment spending in Russia and China."

8:01AM CSX Corp increases 2008 and long-term financial guidance (CSX) 54.85 : The co now expects FY08 earnings per share of $3.65-3.75, an increase from previous guidance that targeted the upper end of the $3.40-3.60 range (consensus $3.57). CSX is increasing 2008 capital spending to ~ $1.75 bln and expects free cash flow before dividends of ~ $1 bln this year. Based on the strong momentum that is expected to continue beyond 2008, the co also is raising the following long-term guidance through 2010: Compound annual growth in operating income of 15-20% over the 2008 base, compared to the prior guidance of 13-15% over the 2007 base; Compound annual growth in earnings per share of 20-25% over the 2008 base, compared to the prior guidance of 18-21% over the 2007 base; and -- Operating ratio in the high 60's for 2010, compared to the prior target of the low 70's.

7:58AM WW Grainger reports that Aug '08 daily sales grew 7% vs. Aug '07 (GWW) 88.39 : Co reports sales results for the month of Aug 2008. Daily sales grew 7% vs Aug 2007. Sales benefited by approx 1% point due to Lab Safety's acquisition of Highsmith. Sales were negatively affected by approx 2% points due to a decline in sales of seasonal products. There were two less selling days in August 2008 (21) vs August 2007 (23).

7:32AM Lululemon Athletica beats by $0.05, misses on revs; reaffirms FY09 EPS guidance, revs guidance (LULU) 18.00 : Reports Q2 (Jul) earnings of $0.18 per share, $0.05 better than the First Call consensus of $0.13; revenues rose 47.7% year/year to $85.5 mln vs the $88.2 mln consensus. Co reaffirms guidance for FY09, sees EPS of $0.68-0.71 vs. $0.71 consensus; sees FY09 revs of $380-385 mln vs. $404.94 mln consensus. Co reaffirms long-term growth targets of net rev growth of approx 25% and EPS growth in excess of 25%.