Earnings - 13th Oct 2008

5:18PM Rackable Systems lowers FY08 EPS and revs guidance below consensus (RACK) 8.74 +0.98 : Co lowers FY08 EPS to ($0.16)-(0.08) vs $0.00 First Call consensus, down from $0.01-0.16 prior guidance, lowers revs to $275-300 mln vs $349 mln consensus, down from $353.2-374.4 mln consensus. Co says, "The recent market downturn has been dramatic and has greatly impacted the timing of our customers' buying decisions. The swift decline of the economy caused a demonstrable slow down in corporate purchasing as we entered September. While we felt positive business momentum early in our third quarter, this abrupt financial and economic deterioration is impacting our ability to meet our previously provided FY08 outlook. RACk is well positioned to improve its competitive advantage. Our balance sheet is cash strong with no debt and we remain in a robust R&D cycle, delivering compelling new products every quarter. In addition, RACK has recently expanded its sales and service organizations to cover key new verticals, such as federal, oil and gas, media and entertainment and financial services."

4:44PM Wynn Resorts announces preliminary Q3 results (WYNN) 63.37 +7.13 : Co reports they had a solid Q3 in both Las Vegas and Macau but we have very little visibility on future earnings due to the global economic situation and the recently imposed travel restrictions in Macau. For its Wynn Las Vegas business, on a GAAP basis, operating (loss)/income for its Las Vegas property for Q3 of 2008 is expected to be in the range of ($2) mln to $2 mln, compared to $35.8 mln in the 2007 period due primarily to the EBITDA decline and a $12.5 mln increase in pre-opening expense. During the quarter, table games drop increased 11.6% from the comparable period in 2007 to $531.0 million. Table games hold decreased to 24.3% compared to 26.4% in 2007. Slot machine handle of $853.8 million was 11.9% below the comparable period of 2007. In its Wynn Macau business, on a GAAP basis, operating income for Wynn Macau for Q3 of 2008 is expected to be in the range of $57-63 mln, compared to $39.2 mln in the 2007 period. Table games turnover in the VIP segment increased 35.6% to $13.3 bln for the period, compared to $9.8 bln for Q3 of 2007. VIP table games win as a percentage of turnover (calculated before discounts and commissions) was 3.10%, slightly above the expected range of 2.7-3.0% and higher than the 2.96% in the comparable period of 2007. Table games drop in the mass market category was ~$568.8 mln during the period, a 19.7% increase from $475.4 million in the third quarter of 2007.

4:31PM Stanley Furniture misses by $0.01, misses on revs (STLY) 8.87 -0.08 : Reports Q3 (Sep) loss of $0.07 per share, excluding $0.27 in charges, $0.01 worse than the First Call consensus of ($0.06); revenues fell 25.5% year/year to $54.5 mln vs the $55.8 mln consensus. Co says, "Order rates over the last ten days have deteriorated significantly; however, we believe our mid-July guidance range for total year 2008 earnings before restructuring charges remains reasonable assuming there is some near term resolution of the credit crisis. However, management now expects total charges for the restructuring and related activities announced in Q3 for 2008 to range from $7-9 mln. This represents an increase of $1 mln from last quarter's estimate to account for a severance payment due to the resignation of our former president. Approximately $5.2 mln of these charges were recorded in Q3 of 2008. A portion of the remaining estimated charges may be recorded into 2009 depending upon the timing of the final disposition of assets associated with a plant closure. Management anticipates offering guidance for 2009 in conjunction with reporting 2008 total year results in late January 2009.

2:13PM Diebold reaffirms FY08 EPS guidance, sees FY08 EPS of $2.40-2.45 vs $2.43 First Call consensus (DBD) 27.50 -0.78 :

9:32AM Cincinnati Fincl reaffirms FY08 guidance; says as of Sept 30 its portfolio was valued at $10.4 bln (CINF) 21.72 : Co announces it posted a prelimary listing of its fixed-maturity and equity portfolio as of September 30, 2008. Subject to normal quarter-end reviews, the company's portfolio was valued at $10.4 bln at September 30, 2008, including approximately $350 mln of cash, compared with $10.7 bln at June 30, 2008. The September 30 portfolio listing does not reflect the October sale of Fifth Third shares, which generated realized gains to be included in results for the fourth quarter ending December 31, 2008. Third-quarter pretax realized gains and losses are expected to be approximately $135 mln. We expect net gains from investment sales and bond calls of approximately $275 mln to be partially offset by other-than-temporary impairment charges, as announced on September 16. Those charges now are estimated at a total of approximately $140 mln for the third quarter. "We expect the decline in full-year 2008 property casualty net written premiums could be slightly more than 5%. We also believe the full-year 2008 combined ratio might be modestly above 100% including up to 9%age points from catastrophe losses. Third-quarter catastrophe losses, net of reinsurance and favorable development from prior period events, now are estimated at approximately $60 mln to $65 mln. Finally, we continue to anticipate a decline in full-year investment income greater than 10%."

9:03AM Principal Fincl sees Q3 EPS of $0.92-0.97 vs $0.95 First Call consensus (PFG) 18.20 : Co also reports net income available to common stockholders to be in the range of $0.30-0.40 per diluted share. Net income available to common stockholders per diluted share reflects estimated net realized/unrealized capital losses of $140-170 mln after tax, and a loss of ~$5 mln after tax related to discontinuing the commercial mortgage backed securitization operations. As of September 30, 2008, the co's capital position improved from June 30, 2008 to ~$375 mln in excess of levels needed to maintain a "AA" rating. Given market conditions, co has built additional liquidity by increasing Principal Life Insurance Company's cash and cash equivalent holdings to ~$2.2 bln as of September 30, 2008, up from $1.4 bln as of June 30, 2008. Reflecting prudent capital management in a volatile market environment, in addition to reducing the common stock dividend, the company is suspending purchases of its common stock under the existing share repurchase program, effective immediately. Management is also exploring other sources of internally generated capital. Management has no current plans to raise equity capital for non-strategic reasons.

8:36AM Tesoro preannounces Q3 EPS of $1.70-$1.90 vs $0.64 First Call consensus (TSO) 8.36 : announced today that it expects third quarter 2008 earnings per share in the range of $1.70 to $1.90, which includes ~ $0.29 per share after-tax LIFO benefit. Additionally, the co announced that Bruce Smith, its Chairman, President and CEO, will file a Form 4 with the SEC reporting that Goldman Sachs sold 251,100 shares of TSO stock owned by him. The shares were sold in accordance with an existing margin agreement to meet a margin call. Depending on the direction of TSO's common stock price, further sales may be required.

7:54AM Fastenal beats by $0.01, reports revs in-line (FAST) 37.22 : Reports Q3 (Sep) earnings of $0.52 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.51; revenues rose 17.1% year/year to $625 mln vs the $624.2 mln consensus. An "expense related to this legal settlement lowered our bonus payout by approximately $1.8 million for the third quarter of 2008. After factoring in the reduction of our bonus payout, this legal settlement resulted in a pre-tax expense of approximately $8.2 million for the quarter, or just over $0.03 per share (after-tax)."

7:01AM White Mountains Ins. Grp. lowers Q3 book value expectation (WTM) : Co announces that it expects its adjusted book value per share at September 30, 2008 to be between $400-420, a reduction from $444 at June 30, 2008. The reduction is due mainly to a 5% drop in the value of invested assets during the quarter. The total return on fixed maturity investments, including mortgage-backed and asset-backed securities, was -2% to -3% for the quarter, compared to a return of -0.5% for the Lehman Aggregate Index. The total return on equity securities was between -13% and -15%, compared to -8.4% for the S&P 500.

6:59AM Coherent lowers Q4 revenue guidance (COHR) 29.58 : Co updated its revenue guidance for the fourth fiscal quarter ended September 27, 2008 to $141.0 million to $142.5 million (vs $155.91 mln two analyst estimate), as compared to its prior revenue guidance of $154 million to $157 million. The company cited delivery push outs and lower orders predominantly from the microelectronics market as the primary reasons for the lower guidance. The company also announced today another major component of its EBITDA initiative. The company's excimer laser site in Munich, Germany will be closed and the operations of the site will be consolidated into the company's existing operation in Goettingen, Germany. The resulting annual pre-tax savings are anticipated to be between $4.5-5.5 million, commencing in the fourth quarter of fiscal 2009. I

5:18AM Affymetrix announces preliminary Q3 revenue (AFFX) 5.44 : Co issues downside guidance for Q3 (Sep), sees Q3 (Sep) revs of $75.0 mln vs. $90.09 mln First Call consensus. Co reports global sales fell below expectations for the quarter driven by increased competition for academic research funding and continued softness in industrial spending.

2:09AM BE Aerospace comments on Q308 results; updates financial guidance (BEAV) 8.88 : Co issues upside guidance for Q3 (Sep), sees EPS of $0.58, excluding non-recurring items, vs. $0.54 First Call consensus. Co issues downside guidance for Q4 (Dec), sees EPS of approx $0.50, excluding non-recurring items, vs. $0.57 consensus. Co issues downside guidance for FY09 (Dec), sees EPS approx of $2.00, excluding non-recurring items, vs. $2.84 consensus; sees FY09 (Dec) revs of approx $2.5 bln vs. $2.88 bln consensus. "We expect to report excellent financial results for the third quarter of 2008, but the near-term outlook has significantly deteriorated," commented Amin J. Khoury, Chairman and Chief Executive Officer. "Global macroeconomic trends have become increasingly negative over the past couple of months. The weakened global economy, the impact of the high cost of energy on consumers, high jet fuel costs, and high ticket prices are negatively impacting global passenger air travel. In response to declining air travel, airlines are significantly reducing capacity and implementing tough cash conservation measures. The business jet industry has also begun to be negatively impacted by the weakened global economy, lower corporate profitability, high jet fuel costs, and difficulty in arranging new aircraft financing. These conditions are negatively impacting demand for our products. As such, the company is lowering its financial guidance for the remainder of 2008, 2009 and 2010." Commenting on the co's outlook, Mr. Khoury stated, "Airlines around the world are experiencing very substantial year-over-year traffic declines, and business jet cycles (takeoffs and landings) were down 18% in August (8% on a year-to-date basis). The impact of these changes in market conditions have resulted in more subdued expectations for demand for our products."
2:03AM Airbus selects B/E Aerospace galley systems for A350 XWB; program valued at over $1 bln (BEAV) : Co announces that Airbus has selected B/E Aerospace as its supplier of galley systems for the new A350 XWB aircraft; co values the award at more than $1.0 bln.