Earnings - 22nd Nov 2008

5:07PM Cooper Industries expects Q4 EPS to be below previous guidance range of $0.83-0.92 vs consensus $0.88 (CBE) 24.13 +1.32 : Co announces that it expects Q4 results to be below the previous guidance range of $0.83 to $0.92 earnings per share, exclusive of restructuring charges. Co says, "in the past few weeks we have seen business conditions worsen, driven by the unprecedented credit crisis and rapid appreciation of the U.S. dollar. Retail orders in certain businesses have declined significantly, as has quoting and shipping activity in light commercial and certain utility products. We also have seen some customers delay or re-quote projects and we anticipate further destocking of customer inventory levels as the quarter progresses. In the near-term, we expect unprecedented volatility and are reducing production levels to ensure we manage inventory levels, while maintaining customer service. The volatility in commodity prices also is creating a difficult pricing environment in some of our businesses, which impacts margins in the near-term. As a result, we felt it necessary to reduce current expectations and defer issuing new guidance until we have better visibility in terms of customer commitments and a more stabilized economic environment. Although it is difficult to forecast the length and depth of a downturn, we continue to implement contingency plans that will reduce our cost structure, including planned production shutdowns over the remainder of the year as well as the previously announced workforce reduction of 1,000 employees."

8:54AM Reliance Steel provides update, Oct better than expected, but operating environment has worsened thus far in November (RS) 12.63 : Co said, "We still are not comfortable providing earnings guidance, but our October results were solidly profitable and stronger than we had anticipated given the state of the economy. October sales were $918.2 million, our second highest monthly amount ever, with our tons sold per day down only 1.7% in October from September levels and our average selling price per ton down only 3.8%. Our FIFO gross profit margin deteriorated by 2.2% in October compared to September... Through the first two weeks of November, the operating environment has worsened from October levels. Mill price decreases have accelerated and have been more substantial than in October, leading us to further reduce prices to our customers and causing our customers to significantly curtail their purchasing as economic uncertainty persists. This has caused further deterioration in our gross profit margins as well as our operating income and net income amounts. However, the lower inventory costs and demand levels have allowed us to significantly reduce our working capital, which, along with our continued profitable operations, is producing a substantial amount of positive cash flow."
8:48AM TrimTabs estimates all equity mutual funds post outflow of $19.5 billion in week ended Wednesday, November 19th : TrimTabs Investment Research estimates that all equity mutual funds posted an outflow of $19.5 billion in the week ended Wednesday, November 19, versus an outflow of $31.8 billion in the previous week. Equity funds that invest primarily in U.S. stocks posted an outflow of $12.2 billion, versus an outflow of $21.3 billion in the previous week. Equity funds that invest primarily in non-U.S. stocks had an outflow of $7.2 billion, versus an outflow of $10.5 billion in the previous week. In addition, bond funds had an outflow of $13.0 billion, versus an outflow of $6.3 billion in the previous week, and hybrid funds had an outflow of $4.6 billion, versus an outflow of $2.2 billion in the previous week. Separately, TrimTabs reports that exchange-traded funds that invest in U.S. stocks posted an inflow of $6.7 billion, versus inflow of $3.9 billion in the previous week. ETFs that invest in non-U.S. stocks had an inflow $1.1 billion, versus an outflow $107 million in the previous week.

7:54AM AnnTaylor misses by $0.01, reports revs in-line (ANN) 5.35 : Reports Q3 (Oct) net of breakeven, $0.01 worse than the First Call consensus of $0.01; revenues fell 12.3% year/year to $527.2 mln vs the $531.9 mln consensus. Comparable store sales for the quarter declined 19.4% versus the prior year, with Ann Taylor down 24.8% and LOFT down 15.4%. The co indicated that it currently expects the weakness in consumer spending to persist through the fourth quarter and, as a result, it expects its fourth quarter top-line performance to be consistent with the trends experienced towards the latter part of the third quarter. Furthermore, the co indicated that it expects the competitive environment to remain highly promotional and, coupled with a fourth quarter receipt plan that did not anticipate the magnitude of the current softness, it expects gross margin to remain under significant pressure. Given the volatility and uncertainty heading into the fourth quarter, the co is not providing earnings per share guidance for the fourth quarter or the full year of fiscal 2008 at this time.

7:02AM J.M. Smucker beats by $0.01, beats on revs; reaffrims FY09 EPS in-line, revs in-line (SJM) 38.25 : Reports Q2 (Oct) earnings of $1.02 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $1.01; revenues rose 19.1% year/year to $843.1 mln vs the $796.1 mln consensus. Co reaffirms in-line guidance for FY09, sees EPS of $3.45-3.50, excluding non-recurring items, vs. $3.47 consensus; reaffirms FY09 revs of $3.8-4.0 bln vs. $3.85 bln consensus.

6:12AM Canadian Solar misses by $0.13, beats on revs; guides Q4 revs below consensus; guides FY08 revs below consensus (CSIQ) 3.78 : Reports Q3 (Sep) earnings of $0.41 per share, excluding stock-based compensation, $0.13 worse than the First Call consensus of $0.54; revenues rose 159.1% year/year to $252.4 mln vs the $248 mln consensus. Co issues downside guidance for Q4, sees Q4 revs of $70.0-85.0 mln vs. $270.06 mln consensus. Co issues downside guidance for FY08, sees FY08 revs of $650.0-750.0 mln vs. $901.87 mln consensus. Q308 gross margin was 15.5%, compared to 15.8% for Q208. Given the uncertainty of project and customers' financing coupled with softening solar market demand in Europe and USA at the year-end, co has shifted its short-term operational emphasis to preserving cash and minimizing risk from the credit environment. Based on this adjustment, Q4 shipments are estimated to be approx 20 - 25 MW. This will result in revenues of approx $70.0-85.0 mln, as noted above. Accordingly, CSIQ is returning to its previously stated May annual revenue estimate of $650.0-750.0 mln, as noted above. The co anticipates that it will have $40 mln available in unused credit lines by the end of Q4 and is actively negotiating more credit facilities with local banks. For FY09, CSIQ is maintaining its guidance of 500-550 MW with margins of 13-15%.