Earnings - 20th July 2009

5:04PM Packaging Corp beats by $0.12, beats on revs; guides Q3 EPS above consensus (PKG) 18.07 +0.27 : Reports Q2 (Jun) earnings of $0.28 per share, excluding $0.79 Iin tax credits, $0.12 better than the First Call consensus of $0.16; revenues fell 10.8% year/year to $549.4 mln vs the $535.2 mln consensus. Co says "our sales volumes are expected to be higher in the third quarter, but some market-related mill downtime is still likely. Prices are expected to be lower as a result of previously published changes in prices for containerboard, and recycled fiber costs are expected to be significantly higher." Considering these items, and excluding any income from alternative fuel mixture tax credits co issues upside guidance for Q3, sees EPS of $0.24 vs. $0.12 consensus.

4:37PM Texas Instruments beats by $0.02, beats on revs; guides Q3 EPS and revs above consensus (TXN) 23.61 : Reports Q2 (Jun) earnings of $0.20 per share, $0.02 better than the First Call consensus of $0.18; revenues fell 26.7% year/year to $2.46 bln vs the $2.41 bln consensus. EPS includes $0.05 in restructuring charges (consensus appears to include this charge as well). Co issues upside guidance for Q3, sees EPS of 0.29-0.39 vs. $0.27 consensus; sees Q3 revs of 2.5-2.8 vs. $2.52 bln consensus. For the full year of 2009, TI expects approximately the following: R&D expense: $1.5 bln; Capital expenditures: $300 mln; Depreciation: $900 mln. Compared with the prior quarter, operating profit increased in the Analog, Embedded Processing and Other segments primarily due to higher revenue. "After sharp inventory corrections in our markets during the prior two quarters, our revenue levels are beginning to more closely reflect end demand... As it will likely take some time before the economy strengthens, we have aligned our operations and expenses to be consistent with the weak environment. As a result, we are seeing healthy trends in our profitability... Analog was the biggest driver of sequential growth this quarter with all three major businesses contributing. Of particular note, our High-Volume Analog & Logic business is now showing early signs of progress from our efforts over the past couple of years to reinvigorate growth... Operationally, TI performed well. Despite low visibility at the start of the quarter, our factories were able to respond to a surge in demand resulting in 18 percent sequential growth in revenue. At the same time, TI inventory again declined, and by working with our distributors we were able to further reduce channel inventory by about 10 percent... Looking ahead, we expect solid sequential growth in the third quarter. As end demand trends remain uncertain, we will keep our operations flexible so we can quickly respond to our customers' needs."

4:11PM Edwards Lifesci beats by $0.03, beats on revs; raises FY09 EPS guidance, reaffirms FY09 revs guidance (EW) 68.11 +0.11 : Reports Q2 (Jun) earnings of $0.79 per share, excluding non-recurring items, $0.03 better than the First Call consensus of $0.76; revenues rose 2.4% year/year to $335.5 mln vs the $329.8 mln consensus. Co issuesguidance for FY09, raises EPS of $3.00-3.06, excluding non-recurring items, from $2.93-3.03, vs. $3.00 consensus; underlying sales growth estimate of 10 to 12 percent for 2009 remains unchanged, sees FY09 revs of $1.36-1.38 bln vs. $1.29 bln consensus. "With the continued adoption of our transcatheter heart valves, we remain confident that we will reach more than $100 million in sales outside of the U.S. this year. Additionally, we continue to make progress towards bringing this exciting technology to U.S. patients as we approach completion of our PARTNER trial enrollment."

4:09PM JDA Software beats by $0.17, beats on revs (JDAS) 16.44 +0.43 : Reports Q2 (Jun) earnings of $0.47 per share, excluding items, $0.17 better than the First Call consensus of $0.30; revenues rose 8.4% year/year to $99.5 mln vs the $86.2 mln consensus. Co also reported Q2 software licenses up 77% Year-Over-Year and adjusted EBITDA up more than 40%.

7:04AM N. American Galvanizing reports Q2 EPS of $0.13 vs $0.20 a year ago; revs declined 18% YoY to $18.1 mln (no ests) (NGA) 6.01 : Second quarter 2009 volumes were 2.9% lower than volumes in the second quarter of 2008. The current economic downturn has negatively affected overall demand for galvanizing from the Company's customer base, which represent numerous markets including petrochemical, highway and transportation, energy, utilities, communications, irrigation, pulp and paper, waste water treatment, food processing, recreation, and the manufacture of original equipment. First half 2009 volumes were 7.1% higher than volumes in the first half of 2008.

7:03AM Johnson Controls beats by $0.06, misses on revs (JCI) 21.52 : Reports Q3 (Jun) earnings of $0.25 per share, excluding non-recurring items, $0.06 better than the First Call consensus of $0.19; revenues fell 29.3% year/year to $6.98 bln vs the $7.4 bln consensus. The co said that it is bidding on approx 2,700 projects worth approx $800 mln that are directly attributable to the American Reinvestment and Recovery Act (ARRA) stimulus package. To date, Johnson Controls has been awarded contracts totaling approx $25 mln under the ARRA. However, the co continues to see delays of projects where customers are waiting to determine their eligibility to receive funding. Johnson Controls said that while stimulus-related projects are being awarded at a slower than expected pace, it continues to believe the stimulus program will have a meaningful positive impact on financial performance in the second half of fiscal 2010.

7:02AM Astec Industries misses by $0.06, misses on revs (ASTE) 25.73 : Reports Q2 (Jun) earnings of $0.34 per share, $0.06 worse than the First Call consensus of $0.40; revenues fell 32.0% year/year to $188.8 mln vs the $216.2 mln consensus. The Company's backlog at June 30, 2009 was $133.6 million compared to $267.9 million at June 30, 2008 for a 50.1% decrease. Co says, "During the second quarter, we saw a pick-up in demand for the mobile asphalt paving group business and continued strength of the asphalt group business. However, the other businesses continue to be weak. The underground business, which primarily serves the energy and residential business, has turned very weak. Despite the lower volumes and revenues, we were able to maintain profitability and saw a slight improvement in our gross margins over the first quarter." "Although the stimulus package funds allocated to roads and bridges were only 3.5% of the total stimulus package, it has been helpful for the asphalt and mobile asphalt paving segments of our business. We anticipate that the impact of the stimulus package will continue to be beneficial over the next 18 months. With the current backlog and incoming orders, we believe revenue in the third quarter will be generally consistent with second quarter revenues. Revenues could vary dependent upon permitting of jobs, customer financing arrangements and whether or not jobsites are ready to accept our equipment. International sales continue to be strong, accounting for 33.7% of the year-to-date volume."