8:55AM Marathon Oil misses by $0.04, beats on revs (MRO) : Reports Q1 (Mar) earnings of $0.34 per share, excluding non-recurring items, $0.04 worse than the First Call consensus of $0.38; revenues fell 42.8% year/year to $10.36 bln vs the $8.94 bln consensus. Co said they "also announced the signing of agreements to sell a portion of our Permian Basin production assets for $301 million. Including these most recent agreements, we have announced asset sales with transaction values totaling approximately $1.6 billion since launching our asset review and divestiture program in March 2008. It's anticipated this program will generate $2 to $4 billion on a pretax basis, with additional announcements expected by mid-2009."
8:49AM Apache beats by $0.30, beats on revs; acquires nine oil and gas fields from MRO (APA) 69.83 : Reports Q1 (Mar) earnings of $0.65 per share, $0.30 better than the First Call consensus of $0.35; revenues fell 48.7% year/year to $1.63 bln vs the $1.56 bln consensus. Apache today also announced an agreement to acquire nine Permian Basin oil and gas fields with current production of 3,500 barrels of oil equivalent per day from Marathon Oil for $187.4 mln. Apache produced 548,279 barrels of oil equivalent (boe) per day in the first quarter, up from 518,162 boe per day in Q4 of 2008. Natural gas production rose to 1.6 billion cubic feet (Bcf) per day compared to 1.5 Bcf per day in Q4. Liquid hydrocarbon production increased to 277,547 barrels per day from 261,609 barrels per day in Q4. Apache's equivalent production declined 2 percent from the first quarter of 2008, which was before production was curtailed by a pipeline explosion at the Varanus Island hub in Australia and two Gulf of Mexico hurricanes.
8:47AM Helmerich & Payne misses by $0.06, beats on revs (HP) 33.58 : Reports Q2 (Mar) earnings of $0.97 per share, ex-item, $0.06 worse than the First Call consensus of $1.03; revenues rose 9.9% year/year to $520.3 mln vs the $501.8 mln consensus. Co states, "It is clear now that the energy industry is suffering the worst cyclical downturn since 1981. The rig count has fallen by more than half in response to dramatic customer spending reductions. The Company entered the downturn with the highest percentage of contractual protection in our history. We are well positioned to navigate the challenging market environment that has caught most of us by surprise. Conditions may continue to worsen until more visibility emerges regarding commodity price fundamentals. Customers will return to the drill bit once improving prices encourage them to do so. At that time, our brand leadership, asset quality and organizational strength will continue to offer customers distinctive performance and service."
8:37AM Corinthian Colleges beats by $0.06, beats on revs; guides JunQ above consensus (COCO) 15.83 : Reports Q3 (Mar) earnings of $0.29 per share, $0.06 better than the First Call consensus of $0.23; revenues rose 23.8% year/year to $346.4 mln vs the $333.2 mln consensus. Co issues upside guidance for Q4 (Jun), sees EPS of $0.23-0.25 vs. $0.21 consensus; sees Q4 revs of $341-346 mln vs. $324.4 mln consensus. Total student population at March 31 was 84,722 up 17.8% yr/yr.
8:27AM Covidien correction: Beats by $0.22, ex items (COV) 33.95 : Earlier we incorrectly reported that COV has missed consensus. We have deleted the original comment. Reports Q2 (Mar) adjusted earnings of $1.07 per share, excluding non-recurring items, $0.22 better than the First Call consensus of $0.85; revenues rose 11.3% year/year to $2.7 bln vs the $2.65 bln consensus. Second-quarter gross margin of 56.2% was up 3.8% from the prior-year period. Q2 adjusted gross margin, excluding Oxy ER, was 51.8% versus 52.4% last year. The decline was largely due to unfavorable foreign exchange. With the sales of Oxy ER completed, guidance now excludes Oxy ER. Covidien estimates that total co operational growth will be in the range of 4% to 7% for 2009. Total Covidien net sales are now expected to be down 3% to flat. The co expects no change to its previously communicated sales growth rates for Medical Devices (-3% to flat vs 2008) or Medical Supplies (up 2% to 5% vs 2008). Sales of Imaging Solutions are now anticipated to be -9% to -6% below 2008, while sales of Pharmaceutical Products are expected to be up 5% to 8% versus 2008. The operating margin is projected to be in the 19% to 20% range.
8:06AM Exxon Mobil misses by $0.03, beats on revs (XOM) 68.44 : Reports Q1 (Mar) earnings of $0.92 per share, $0.03 worse than the First Call consensus of $0.95; revenues fell 45.2% year/year to $64.03 bln vs the $54.03 bln consensus. Upstream earnings were $3,503 million, down $5,282 million from the first quarter of 2008. Lower crude oil realizations reduced earnings approximately $4.4 billion while lower natural gas prices decreased earnings about $500 million. Higher operating expenses reduced earnings about $300 million. During the first quarter of 2009, Exxon Mobil Corporation purchased 107 million shares of its common stock for the treasury at a gross cost of $7.9 billion. These purchases included $7.0 billion to reduce the number of shares outstanding, with the balance used to offset shares issued in conjunction with the company's benefit plans and programs.
8:01AM Art Technology beats by $0.02, beats on revs (ARTG) 3.11 : Reports Q1 (Mar) earnings of $0.05 per share, $0.02 better than the First Call consensus of $0.03; revenues rose 14.8% year/year to $41.9 mln vs the $40.7 mln consensus.
7:40AM Pride Intl beats by $0.01, misses on revs (PDE) 23.84 : Reports Q1 (Mar) earnings of $0.87 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.86; revenues rose 1.7% year/year to $549.3 mln vs the $555.4 mln consensus. Co said, "We are encouraged by the improvement in crude oil prices since the February 2009 lows and believe we are now experiencing a more sustainable trading range with growing expectations for long-term strengthening. At the same time, instability in the capital markets along with its impact on general economic conditions and energy demand continue to present uncertainty. We remain confident in the long-term fundamental strength of the offshore drilling industry, especially in the deepwater segment where geologic success rates, the application of new technologies and emerging deepwater frontiers are supporting a strong long-term growth outlook".
7:40AM Noble Energy beats by $0.15, misses on revs (NBL) 60.27 : Reports Q1 (Mar) earnings of $0.59 per share, excluding non-recurring items, $0.15 better than the First Call consensus of $0.44; revenues fell 57.0% year/year to $441 mln vs the $598.2 mln consensus. Noble Energy continues to constrain investments in U.S. natural gas developments. As a result, total capital expenditures for the year are being managed at approximately $1.4 billion, which represents the lower end of the Company's original capital guidance. Second quarter 2009 volumes are now expected to range from 204 to 212 MBoe/d. The adjusted guidance assumes lower volumes in the North Sea and Israel, as well as in the deepwater Gulf of Mexico related to further hurricane delays impacting Ticonderoga. Other updated guidance metrics include the following:
7:37AM Spirit Aerosystems beats by $0.05, beats on revs; guides FY09 EPS in-line, revs above consensus (SPR) 12.22 : Reports Q1 (Mar) earnings of $0.45 per share, $0.05 better than the First Call consensus of $0.40; revenues fell 14.4% year/year to $887 mln vs the $859.5 mln consensus. Co issues mixed guidance for FY09, sees EPS of $2.15-2.35 vs. $2.16 consensus; sees FY09 revs of $4.25-4.35 bln vs. $4.19 bln consensus. During the first quarter of 2009, Spirit gradually returned to full-rate production following a Machinists' strike at The Boeing Company. Spirit continued to utilize a reduced work week schedule early in the first quarter and returned to full work weeks as the quarter progressed. As a result, first quarter 2009 ship set deliveries to Boeing were 30 units below pre-strike delivery levels, resulting in a revenue reduction of $256 million and a reduction in earnings per share of $0.18.
7:32AM Dominion beats by $0.09, beats on revs; guides Q2 EPS above consensus; reaffirms FY09 EPS guidance (D) 29.61 : Reports Q1 (Mar) earnings of $0.97 per share,$0.09 better than the First Call consensus of $0.88; revenues rose 9.8% year/year to $4.78 bln vs the $4.12 bln consensus. Co issues upside guidance for Q2, sees EPS of $0.61-0.66 vs. $0.59 consensus. Co reaffirms guidance for FY09, sees EPS of $3.20-3.30 vs. $3.21 consensus... For Q1, drivers that compared favorably to guidance include higher contributions from the producer services business; favorable weather in the electric service territory; and lower interest expense. Factors that compared negatively to guidance include storm damage and service restoration charges in the regulated electric business and a higher effective income tax rate... For Q2, drivers expected to compare favorably to 2008 include higher contributions from the merchant generation, producer services and gas transmission businesses. Expected offsets include lower contributions from the regulated electric generation business, including a return to normal weather, a heavier-than-normal planned outage schedule and reduced financial transmission rights (FTR) and wholesale margins; and higher interest expense.
7:32AM Celgene beats by $0.01, reports revs in-line; reaffirms FY09 EPS guidance, revs guidance (CELG) 42.40 : Reports Q1 (Mar) earnings of $0.44 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.43; revenues rose 29.9% year/year to $601.1 mln vs the $602.1 mln consensus. Co reaffirms guidance for FY09, sees EPS of $2.05-2.15 vs. $2.05 consensus; sees FY09 revs of $2.6-2.7 bln vs. $2.64 bln consensus.
7:32AM Cummins beats by $0.03, misses on revs, issues 2009 guidance (CMI) 33.49 : Reports Q1 (Mar) earnings of $0.26 per share, $0.03 better than the First Call consensus of $0.23; revenues fell 29.7% year/year to $2.44 bln vs the $2.65 bln consensus. Based on the first quarter results and company forecasts for the remainder of the year, Cummins today revised its sales and earnings guidance downward for 2009. The company now expects 2009 sales to be slightly more than 30% lower than 2008 and anticipates EBIT of 5% of sales for the year, excluding the restructuring charge.
7:29AM Lancaster Colony beats by $0.07, misses on revs (LANC) 44.29 : Reports Q3 (Mar) earnings of $0.56 per share, excluding non-recurring items, $0.07 better than the First Call consensus of $0.49; revenues rose 6.5% year/year to $246 mln vs the $250 mln consensus. Co said, "In our food group, future trends in consumer demand remain uncertain but we expect to see continuing benefits from lower material costs and current retail pricing. The later Easter this year may also add modestly to fourth quarter sales volumes. While candle sales may also increase in the coming months, our candle operations typically experience a seasonally slow period in our fourth quarter."
7:23AM GrafTech Intl beats by $0.03, misses on revs (GTI) 8.56 : Reports Q1 (Mar) earnings of $0.04 per share, excluding non-recurring items, $0.03 better than the First Call consensus of $0.01; revenues fell 53.8% year/year to $134 mln vs the $153.3 mln consensus. Co says, "The majority of our customer base has very limited or no visibility to Q3 and Q4 of 09 operating rates. Given current global economic conditions, which continue to be extremely volatile and uncertain, our ability to project full year guidance is very limited. We continue to expect '09 to be very challenging for both of our business segments. Q1 results came in better than expected and we generated a small profit. We believe second quarter results will be similar to those in Q1; however, a second quarter loss is possible given the variability in customer demand. Historically, the third quarter is a weaker quarter as many of our European customers schedule plant shutdowns during the summer months. Given current economic conditions, it is possible that these planned production shutdowns could be extended, adversely impacting demand for our products in 3Q09. While a high degree of uncertainty around forward looking projections remains, we expect a marginal improvement in the second half of the year results as customers should have largely completed inventory destocking initiatives. In addition, the anticipated benefit of higher graphite electrode selling prices should be realized, offset in part by higher raw material costs."
7:19AM Watson Pharm beats by $0.09, beats on revs; guides FY09 EPS above consensus, revs in-line (WPI) 31.14 : Reports Q1 (Mar) earnings of $0.58 per share, ex-items, $0.09 better than the First Call consensus of $0.49; revenues rose 6.5% year/year to $667.4 mln vs the $638 mln consensus. Co issues mixed guidance for FY09, sees adjusted EPS of $2.40-$2.52 vs. $2.27 consensus; sees FY09 revs of $2.65 bln vs. $2.68 bln consensus. Co states, "Based on our first quarter results and our view for the remainder of the year, we are raising our outlook for 2009, a clear signal that we remain confident in the growth prospects of each of our divisions, and are optimistic that execution on our business plans will continue to generate increasing value for shareholders."
7:17AM Neutral Tandem beats by $0.04, beats on revs; guides FY09 revs above consensus (TNDM) 26.09 : Reports Q1 (Mar) earnings of $0.27 per share, $0.04 better than the First Call consensus of $0.23; revenues rose 45.8% year/year to $38.2 mln vs the $36.4 mln consensus. Co issues upside guidance for FY09, sees FY09 revs of $158-165 mln vs. $157.9 mln consensus. The increase in Q1 revenue was primarily related to an increase in the number of minutes carried over its network and expansion into additional geographical markets. Billed minutes increased 52.7% yr/yr to 19.7 bln minutes.
7:13AM Cardinal Health beats by $0.02, beats on revs; guides FY09 EPS in-line (CAH)34.49 : Reports Q3 (Mar) earnings of $0.97 per share, $0.02 better than the First Call consensus of $0.95; revenues rose 8.9% year/year to $24.94 bln vs the $24.01 bln consensus. Co issues in-line guidance for FY09, sees EPS of $3.50-3.60 vs. $3.53 consensus. The year-over-year earnings decline was primarily driven by a deferral in hospital capital spending affecting the company's Clinical and Medical Products segment, an additional reserve associated with the costs to remediate certain models of the company's Alaris infusion pump products, the negative impact on sales from a hold on shipping certain Alaris products and the negative effect of foreign exchange rates. The earnings decline was partially offset by a lower tax rate, due to a tax refund claim filed during the quarter.
7:12AM NRG Energy beats by $0.25, beats on revs (NRG) 17.18 : Reports Q1 (Mar) earnings of $0.70 per share, $0.25 better than the First Call consensus of $0.45; revenues rose 27.3% year/year to $1.66 bln vs the $1.18 bln consensus. The increase in income from continuing operations was driven by $271 mln in unrealized mark-to-market gains in the current quarter compared with $160 mln in unrealized MtM losses in 1Q08. "While the current business environment remains challenging, NRG's core business model--based on extensive baseload hedging, a cash-efficient first lien collateralization program and a diversified group of suppliers and trading counterparties--remains robust, enabling NRG to reaffirm its 2009 adjusted EBITDA guidance, with the exception of adjusting for the pending MIBRAG sale. Adjusted EBITDA guidance is now set at $2,175 mln and cash flow from operations at $1,475 mln. Free cash flow guidance after capital expenditures and net portfolio investments in repowering projects is expected to decrease by $36 mln, primarily due to initiating the construction of the Langford project."
7:10AM Capella Education beats by $0.04, reports revs in-line (CPLA) 53.52 : Reports Q1 (Mar) earnings of $0.49 per share, $0.04 better than the First Call consensus of $0.45; revenues rose 17.0% year/year to $76.4 mln vs the $76.5 mln consensus. For Q2, enrollment is expected to grow by 20.5% to 21.5% and revs by 19% to 20% YoY (which calculates to roughly $78.5-$79.2 mln vs $76.5 mln consensus). The operating margin is anticipated to be approximately 15% to 16% of total revenue for the second quarter of 2009.
