Earnings - 6th Oct 2008

6:17PM Regis lowers Q1 EPS below consensus, reports Q1 revs below consensus, sees FY09 EPS below consensus (RGS) 25.10 -1.52 : Co lowers Q1 EPS to be near or slightly below the low end of the previously issued guidance range of $0.41-0.47 per share, vs $0.43 First Call consensus' co reported Q1 revs growth of 1.9% to $680 mln vs $699.1 mln consensus. Co issued downside guidance for FY09; co sees FY09 EPS of $1.77-2.03 vs $2.05 consensus. Co says, "In this difficult economic environment, we were able to show the stability of our service business as same-store service sales were positive 0.45. However, the bottom line is consumer behavior has changed, consumers are cutting back and, as a result, we are seeing a slow-down in spending and visitation patterns."

4:21PM Bank of America reports Q3 results below consensus; announces 50% dividend cut and $10 bln common stock offering (BAC) 32.22 -2.26 : Reports Q3 (Sep) earnings of $0.15 per share, $0.51 worse than the First Call consensus of $0.66; revenues rose 20.8% year/year to $19.9 bln vs the $20.67 bln consensus. Lower earnings in the third quarter compared with a year earlier were driven by a significant increase in provision expense, as credit costs continued to rise, partially offset by advances in various income categories largely as a result of the acquisition of Countrywide Financial Corporation on July 1, 2008 and LaSalle Bank... The company also announced two initiatives to raise capital, targeting an 8% Tier 1 capital ratio. The company intends to sell common stock with a target of raising $10 bln. In addition, the Board of Directors has declared a quarterly dividend on common stock of $0.32 to be paid on December 26, 2008 to shareholders of record on December 5, 2008. Assuming the current number of issued and outstanding shares, the reduction from $0.64 paid in recent quarters would add more than $1.4 bln to capital each quarter. "These are the most difficult times for financial institutions that I have experienced in my 39 years in banking... We believe it is prudent to raise capital to very substantial levels in this uncertain environment. Both economic and financial market conditions have changed significantly in the last two months. We were willing to operate at capital levels over the short-term that were good, but not at our targeted levels, given projections two months ago. We now believe it is important to be at or near our 8% Tier 1 capital ratio target given the recessionary conditions and outlook for still weaker economic performance which we expect to drive higher credit losses and depress earnings... Our goal is to resume dividend increases from the new level as soon as our earnings performance warrants.... Increased loss and delinquency trends first experienced in the home equity and homebuilder portfolios have now spread into the first mortgage, unsecured consumer lending and credit card portfolios. Deterioration has been more pronounced in California and Florida, which have been hit harder by home price depreciation and rising unemployment than in other markets. Commercial losses in sectors other than real estate and small business also increased, but remain below normalized ranges." The company added almost $2 bln to the allowance for loan and lease losses during the quarter through provision. The additions were mainly for consumer loans, including the unsecured consumer lending, credit card and residential mortgage portfolios. Nonperforming assets were $13.36 bln or 1.42% of total loans, leases and foreclosed properties, compared with $9.75 bln, or 1.13%, at June 30, 2008 and $3.37 bln, or 0.43%, at September 30, 2007. Countrywide added $259 mln in operating earnings to Bank of America this quarter, which was accretive to earnings per share by $0.06... Chief Executive Officer Kenneth D. Lewis and Chief Financial Officer Joe L. Price will discuss third quarter 2008 results in a conference call at 5 p.m. EDT today.

12:20PM Perficient reaffirms Q3 revenue guidance, sees revs of $56.3-60.6 mln, including reimbursed expenses, vs $58.80 mln First Call consensus (PRFT) 5.80 -0.38 : Co reaffirms the previously disclosed guidance for third quarter 2008 services and software revenue, including reimbursed expenses, to be in the range of $56.3-60.6 mln, comprised of $55.1-58.1 mln of revenue from services including reimbursed expenses and $1.2-2.5 mln of revenue from sales of software. The guidance range of services revenue including reimbursed expenses would represent services revenue growth of 7.0-12.8% over the third quarter of 2007.

9:04AM Shaw Group awarded EPC contract worth approx $400 mln for 500-megawatt natural gas combined cycle electric generating plant by NV Energy (SGR) 22.77 : Co announces that the Fossil/Nuclear segment within its Power Group has been awarded an engineering, procurement and construction contract by NV Energy, a wholly owned subsidiary of Sierra Pacific Resources (SRP), for the continuing construction of a new 500-megawatt combined cycle, natural gas-fired power plant. The combined cycle plant will be built at the existing Harry Allen Generating Station north of Las Vegas, Nevada. The value of SGR's EPC contract is approx $400 mln and will be included in the company's first quarter fiscal 2009 backlog of unfilled orders. The project, which is expected to employ more than 600 people during peak construction, is scheduled for completion in 2011.

8:50AM IDEX Corp lowers Q3 revenue and EPS guidance below consensus (IEX) 28.84 : Co lowers Q3 EPS guidance to $0.52-$0.53, excluding restructuring expenses, vs First Call consensus of $0.55 and prior guidance of $0.53-$0.56. Co projects Q3 revs of $365 mln vs $384.6 mln consensus. This is an increase of 9% from the prior-year period versus the previous guidance of 14-16%. As previously announced, IEX has commenced the cessation of manufacturing operations in the Dispensing segment's Milan, Italy facility. In addition, IEX has initiated company-wide plans which include management and administrative workforce reductions as well as an additional facility consolidation. The projected savings in costs and operating expenses resulting from these restructuring activities is expected to be $13-$14 mln annually beginning in 2009. The company expects these actions to result in non-recurring severance and non-severance related charges totaling approx $14 mln over the second half of 2008. These costs are inclusive of the estimated $5-$6 mln of costs relating to the Milan, Italy facility.

8:31AM Double-Take software lowers Q3 guidance (DBTK) 8.75 : CO announces preliminary results for 3Q08. Based on preliminary financial data, the co now expects third quarter revs to be in the range of $23.8-24.0 mln (consensus $25.89 mln), compared to its previous guidance of $25.7-26.3 mln. The co expects net income per diluted share to be $0.10-0.11 (consensus non-GAAP $0.15) per share and adjusted, non-GAAP net income per diluted share to be $0.14 to $0.15 per share. Previous guidance for adjusted, non-GAAP net income per diluted share was $0.15 to $0.16 per share. "In the latter part of September customers delayed closings on a number of expected deals in both Europe and in the American regions. This apparent push of business is atypical for Double-Take and has not been experienced to such extent previously in the US market," said Dean Goodermote, Chairman and CEO of Double-Take Software, Inc. "The deals in question generally were our larger opportunities, and were across multiple verticals; though we did experience specific issues with some financial institutions and companies in the Houston area affected by hurricane Ike.

8:30AM A-Power Energy receives contract for 50 2.7MW wind turbines with China National Automation Control System (APWR) 6.41 : Co announces that it has signed its second sales contract with China National Automation Control System for the sale of 50 2.7 MW wind turbines. This is in addition to the previously announced contract with CACS for five 2.7MW units. These units are expected to be delivered by July, 2009. "We are currently in late-stage discussions to sign additional contracts with CACS and the other parties that had signed letters of intent with A-Power in Q1 2008, which in aggregate provide for an additional 325 wind turbines. In addition, we are in discussions with a number of new potential buyers. Based on these discussions, we expect to announce additional contracts over the coming months for both our 2.7MW and 750kW wind turbine units."

8:02AM Netflix guides Q4 revenue lower, EPS up slightly; expects Q3 net income and EPS to be "comfortably within its previous guidance range" (NFLX) 28.97 : Co expects net income and EPS will be comfortably within its previous guidance, which was GAAP net income of $16-$21 mln, and GAAP EPS of $0.26-$0.34 (consensus $0.32). Netflix ended the third quarter with approximately 8.672 mln subscribers, just below the low end of its previous guidance of 8.675 mln to 8.875 mln subscribers. Subscribers grew 23 percent year-over-year from 7,028,000 total subscribers at the end of the third quarter of 2007 and 3 percent sequentially from 8,411,000 subscribers at the end of the second quarter of 2008. For Q4 the co now sees ending subscribers of 8.95-9.25 mln, down from 9.1-9.7 mln. Co sees revs of $353-$359 mln (vs $364.8 mln consensus), down from $357-$367 mln. Finally the co sees GAAP EPS of $0.30-$0.38 (vs consensus of $0.32), increased slightly from $0.29-$0.37

7:30AM STEC Inc expects revenue and diluted non-GAAP EPS to be at high end of previous gidance range (STEC) 6.55 : Co announced that based on the Company's preliminary review of its anticipated financial performance for the third quarter of 2008, which showed strong performance in the Enterprise-Storage and Ultra-Mobile Personal Computing markets, it now expects to report third quarter 2008 revenue and diluted non-GAAP earnings per share to be at the high end of its previous guidance range of $61-63 mln and $0.10-0.11, respectively (vs $62.34 mln/$0.11 First Call consensus), initially announced on August 4, 2008.

7:05AM AgFeed Industries affirms 2008 earnings guidance; announces $10 mln share buyback (FEED) 5.67 : Co announces a $10 mln share buy back program. The co also confirms that it is not aware of any negative development within the co that may impact its financial performance and normal business operations. Based on preliminary financial results from its 3rd quarter ended September 30, 2008, FEED expects to report record 3rd quarter earnings by early November. The co also affirms its 2008 earnings guidance of adjusted earnings per share of $1.10 (vs $1.00 consensus). The co also announced that members of its mgmt have also agreed to enter into one year share lock up agreements with the Company. AgFeed's management and board members have not sold one single share of the Company's stock since the inception of the Company.

6:32AM Ceradyne receives $2.37 bln XSAPI/ESAPI body armor 5 year ID/IQ (CRDN) 32.96 : Co announces that it has received an ID/IQ contract for both its XSAPI and ESAPI personal ceramic armor plates from the U.S. Army RDECOM, Aberdeen Proving Grounds, Maryland. The total amount of this contract is approximately $2.37 bln and covers a period of approximately five years. Simultaneously, Ceradyne received the first delivery order for First Article Testing valued at $943,000 scheduled for shipment by November 2008. This initial FAT order is for both XSAPI and ESAPI armor plates.

6:16AM MasTec increases guidance for 2008 and issues guidance for CY09 (MTZ) 12.03 : Co issues upside guidance for FY08 (Dec), sees EPS of $0.92-0.95 vs. $0.91 First Call consensus; sees FY08 (Dec) revs of $1.375-1.395 bln vs. $1.21 bln consensus. Co issues mixed guidance for FY09 (Dec), sees EPS of $1.05-1.15 vs. $1.08 consensus; sees FY09 (Dec) revs of $1.95-2.0 bln vs. $1.34 bln consensus. After the end of Q208, MTZ acquired the Nsoro wireless business and its expectations were not included in its previously issued guidance. MasTec now expects Nsoro revenue in Q3, which includes two months of operating results, to be $35 to $40 mln and the co expects it to contribute $40 to $45 mln in revenue in Q408. Additionally, MasTec initially indicated that it expected this acquisition to be accretive in 2009, but now expects it to be slightly accretive in 2008 as well. The Wanzek acquisition (Briefing.com note: See 06:17 comment), which was announced today, is expected to close in Q408. 2008 Guidance assumes an October close and two months of operating results in the fourth quarter. Co expects this acquisition to contribute incremental revenue of approx $50 mln in Q4 and for the transaction to be slightly accretive in 2008.

4:07AM Micrus Endovascular issues upside revenue guidance for Q209 (MEND) 13.25 : Co issues upside guidance for Q2 (Sep), sees Q2 (Sep) revs of $20.5-20.8 mln vs. $18.92 mln First Call consensus. "Revenues for the three months ended September 30, 2008 will be at record levels, which is particularly significant as the fiscal second quarter historically is the most challenging of the year, owing to summer vacations, combined with a historical cyclical procedural downturn," said John Kilcoyne, Chairman and CEO. "Revenues increased year-over-year and sequentially across geographic regions, including North America and Europe, with a notable rebound in procedure volume and associated revenues in the United Kingdom compared with Q109. Following approval from the Japanese regulatory agency in July to market our Cerecyte microcoil product line, sales to our exclusive Japanese distributor Goodman Co., Ltd. were approx $3 mln for the quarter and we commend Goodman for this successful launch. In contrast, we did not report revenues from Japan during Q208. Even excluding Q209 revenues from Japan, our year-over-year total revenues grew approx 22% to 24%," he added.