Earnings - 20th Oct 2009

6:07PM Tupperware beats by $0.12, beats on revs; guides FY09 EPS above consensus, revs above consensus; guides FY10 EPS above consensus (TUP) 44.01 -0.26 : Reports Q3 (Sep) earnings of $0.54 per share, excluding non-recurring items, $0.12 better than the First Call consensus of $0.42; revenues rose 0.2% year/year to $514 mln vs the $486.2 mln consensus. Co issues upside guidance for FY09, sees EPS of $2.84-2.89 vs. $2.73 consensus; sees FY09 revs growth of 5-6%, which equates ~$2.27-2.29 bln vs. $2.06 bln consensus. Co issues upside guidance for FY10, sees EPS of $3.33-3.43, excluding non-recurring items, vs. $3.20 consensus; co sees FY10 revs growth of 6-8% in local currency, and with a 6% benefit from foreign exchange is an increase of 12-14% reported.

4:34PM Cymer beats by $0.19, beats on revs; guides Q4 revs above consensus (CYMI) 38.85 -0.12 : Reports Q3 (Sep) earnings of $0.36 per share, $0.19 better than the First Call consensus of $0.17; revenues fell 16.5% year/year to $92.3 mln vs the $82.2 mln consensus. Co issues upside guidance for Q4, sees Q4 revs to be comparable to Q3 revs, which equates to ~92.3 mln vs. $90.62 mln consensus. Co said, "In Q3, we responded to increased demand that resulted in Q3revenue increasing almost 50%, as compared to the prior quarter. In Q4, we anticipate maintaining this increased level of demand for light sources and Installed Base Products."

4:33PM Walter Energy beats by $0.18, beats on revs (WLT) 65.87 -0.05 : Reports Q3 (Sep) earnings of $0.45 per share, $0.18 better than the First Call consensus of $0.27; revenues fell 9.9% year/year to $278.3 mln vs the $222.8 mln consensus.Co says "Our third quarter performance illustrates the strong demand for our high quality coking coal... We continue to see improving market conditions for our product and we are on track to achieve sales of approximately 3.5 mln tons in the second half. This performance supports our plan to produce and sell approximately 8 mln tons in 2010, with the startup of the Mine No. 7 East longwall in early January 2010." The Company expects to ship 126,000 tons of hard coking coal at 2008-2009 carryover pricing of approximately $315 per metric ton in the fourth quarter 2009. Coking coal production is expected to be between 1.4 and 1.5 mln tons in the fourth quarter, with production costs expected to average between $65 and $70 per ton. "We expect continued improvement in market conditions for the remainder of 2009, Moving into 2010, we are seeing increasing demand for premium mid- and low-vol coals from our key product destinations, as well as Asia, with port constraints in Australia continuing to make high-quality coking coals a scarce resource." Walter Coke is expecting improved sales and a return to profitability in the fourth quarter 2009, driven primarily by increased orders from the domestic steel industry. Capital expenditures were $14.9 mln in the third quarter, totaling $67.3 mln for the year. The Company expects full-year capital expenditures of approximately $85 mln. sales of approximately 3.5 mln tons in the second half. This performance supports our plan to produce and sell approximately 8 mln tons in 2010, with the startup of
the Mine No. 7 East longwall in early January 2010."

4:10PM Gilead Sciences beats by $0.11, beats on revs (GILD) 46.12 -0.69 : Reports Q3 (Sep) earnings of $0.78 per share, $0.11 better than the First Call consensus of $0.67; revenues rose 31.4% year/year to $1.8 bln vs the $1.75 bln consensus. 3Q Drug Sales and First Call Consensus: Truvada $620.6 mln vs. $625 mln consensus; $605.3 mln vs. $604 mln First Call Consensus; Viread $169.7 mln vs. $158 mln First Call Consensus; Amibsome $77.0 mln vs. $72 mln Consensus

4:09PM Seagate Tech beats by $0.11, beats on revs; guides Q2 revs above consensus (STX) 15.55 +0.00 : Reports Q1 (Sep) earnings of $0.58 per share, excluding non-recurring items, $0.11 better than the First Call consensus of $0.47; revenues fell 12.2% year/year to $2.66 bln vs the $2.62 bln consensus. Seagate Tech reports gross margin 24.5% vs 23.3% consensus. Co issues upside guidance for Q2, sees Q2 revs of $2.75-2.85 bln vs. $2.75 bln consensus. For the December quarter, the company is planning for the overall industry demand for disk drives to be 153-160 million units. Gross margin as a percent of revenue to be near the high end of the company's targeted range of 22-26% (consensus calls for 23.2%). During the first fiscal quarter, STX reduced short-term borrowings and long-term debt by approximately $465 mln primarily with the maturity of its $300 mln floating rate senior notes and by paying down its revolving credit facility by $150 mln. "At a time when economic conditions remained challenging we are very pleased with the company's financial performance, delivering strong revenues, margins and cash generation... The company has returned to its operating model well ahead of our expectations of six months ago and now expects to sustain gross margin of 22-26%. Although mission critical enterprise demand in particular has yet to recover to historical levels, we benefitted from our time-to-market product delivery to customers integrating our notebook, desktop and enterprise drives." While visibility has improved throughout the calendar year, the ongoing uncertainty in global economic conditions makes it difficult to predict product demand and other related matters, which makes it more likely that Seagate's actual results could differ materially from current expectations.

4:08PM Cree beats by $0.08, beats on revs; guides Q2 EPS above consensus, revs above consensus (CREE) 41.16 +0.05 : Reports Q1 (Sep) earnings of $0.30 per share, excluding non-recurring items, $0.08 better than the First Call consensus of $0.22; revenues rose 20.5% year/year to $169.1 mln vs the $164.5 mln consensus. Cree reports gross margin 43.6% vs 40% consensus and co guidance. Co issues upside guidance for Q2, sees EPS of $0.28-0.30, excluding non-recurring items, vs. $0.23 consensus; sees Q2 revs of $180-190 mln vs. $173.18 mln consensus. Targeted non-GAAP earnings exclude expenses related to the amortization of acquired intangibles of $0.02 per diluted share, and stock-based compensation expense of $0.06 per diluted share. "We are benefitting from continued LED lighting adoption and high factory utilization and are well positioned for solid growth in Q2. As a result of the recent equity offering, we have the balance sheet to invest in the growth of our business as we look to continue to lead the LED lighting revolution."

4:08PM SanDisk beats by $0.49, beats on revs (SNDK) 21.47 +0.01 : Reports Q3 (Sep) earnings of $0.75 per share, excluding non-recurring items, $0.49 better than the First Call consensus of $0.26; revenues rose 13.8% year/year to $935.2 mln vs the $787.9 mln consensus. SanDisk reports gross margin 46.6% vs 31.3% consensus. Co says, "We are encouraged by improved industry fundamentals and our increasingly diversified global markets, which bode well for further growth in Q4 and in 2010."

8:12AM Peabody Energy beats by $0.26, beats on revs; guides FY09 EPS above consensus (BTU) 43.37 : Reports Q3 (Sep) earnings of $0.49 per share, excluding non-recurring items, $0.26 better than the First Call consensus of $0.23; revenues rose 24.6% year/year to $1.67 bln vs the $1.42 bln consensus. Co issues raises/issues upside guidance for FY09, sees EPS of $1.60-1.80, excluding non-recurring items, vs. $1.48 consensus; co also raises FY09 EBITDA guidance to $1.2-1.3 bln vs the $1.14 bln consensus. Given the high rate of deliveries to satisfy U.S. customer commitments, the co is targeting '09 sales of approximately 190 mln tons in the United States and 21-23 mln tons in Australia. Total co sales are expected to be 235-245 mln tons, including Trading and Brokerage contributions. For 2010, growing demand in the Pacific is driving higher Australia sales projections of 24 to 27 mln tons, or 15% above 2009's targets, with minimal capital required. In the United States, BTU is targeting '10 volumes of 185 to 195 mln tons, in line with '09's expectations and 5-15 mln tons lower than 2008. Peabody's 2010 PRB volumes are expected to decline up to another 5 mln tons from 2009's estimated 138 mln tons, and approximately 20-25 mln tons below peak operating levels in late 2008. Third quarter 2009 sales volumes totaled 63.5 mln tons, compared with 65.6 mln tons in the prior year period. U.S. sales reflect planned Powder River Basin (PRB) reductions. Australia sales of 6.5 mln tons were 30% above the second quarter due to higher seaborne thermal volumes and record metallurgical coal shipments. Australian metallurgical coal exports were 2.7 mln tons, nearly triple the pace of 1H09. U.S. revenues per ton increased 11% over the third quarter of last year due to higher realized prices in both the Midwestern and Western regions. Peabody's third quarter realized revs for Australia averaged $82 per ton, including $125 per ton for seaborne metallurgical coal and $72 per ton for seaborne thermal coal. Compared with the second quarter of 2009, Australian realized prices increased 33% due to a larger mix of seaborne metallurgical coal. 3Q09's Australian revs per ton were below year-ago levels due to lower annual pricing for seaborne coal contracts that began April 1.

8:04AM Precision Castparts misses by $0.09, misses on revs (PCP) 104.72 : Reports Q2 (Sep) earnings of $1.54 per share, $0.09 worse than the First Call consensus of $1.63; revenues fell 27.6% year/year to $1.3 bln vs the $1.39 bln consensus. "From a top-line perspective, overall sales declines seem to be bottoming out in the second quarter. Aerospace destocking is slowing, and our schedules show that we are closing the gap between orders and aircraft build rates. A gradual ramp begins in the third quarter, although some of our customers appear to be holding off orders as they approach their fiscal year ends. By the fourth quarter, we start to see schedules firming up and aligning more closely with current aircraft build rates beginning in March and carrying through the first quarter of fiscal 2011 and beyond. In addition, oil and gas and chemical processing orders are getting some traction and showing gradual sales upside in the third and fourth fiscal quarters. As sales increase, we have every expectation of driving those volumes across our improved cost structure and of aggressively leveraging every opportunity for upside performance."

8:02AM Cirrus Logic beats by $0.01, reports revs in-line; guides Q3 revs above consensus (CRUS) 5.86 : Reports Q2 (Sep) earnings of $0.11 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.10; revenues rose 4.5% year/year to $55.7 mln vs the $55.7 mln consensus. Co issues upside guidance for Q3, sees Q3 revs of $58-62 mln vs. $53.96 mln consensus. Gross margin is expected to be between 52 percent and 54 percent; and combined R&D and SG&A expenses are expected to range between $23 million and $25 million, which include approximately $2 million in share-based compensation and amortization of acquisition-related intangibles expenses. Gross margin for the quarter was 52 percent, down from 56 percent in the quarter a year ago and flat compared to 52 percent reported for the previous quarter.

7:38AM Caterpillar beats by $0.58, misses on revs; guides FY09 EPS above consensus; guides FY10 revs in-line (CAT) 57.85 : Reports Q3 (Sep) earnings of $0.64 per share, $0.58 better than the First Call consensus of $0.06, revenues fell 44% YoY to $7.3 bln vs $7.47 bln First Call consensus. Co issues guidance for FY09, sees EPS of $1.85-2.05 vs. $1.49 consensus; sees FY09 revs of $32-33 bln vs. $33.07 bln consensus. Co sees FY10 revs up 10-25% from midpoint of FY09 guidance; equates to ~$35.75-40.625 bln vs $33.14 bln First Call consensus, in part driven by the end of dealer inventory reductions which significantly impacted sales in 2009. "We are pleased with this quarter's profit given the severe economic environment and with our sales well below end-user demand as dealers continue to aggressively draw down inventories... During the quarter, our primary focus continued to be on trough management and operational execution. We lowered production as dealers continued to cut inventories, we reduced costs, maintained positive price realization, lowered inventory, delivered positive operating cash flow and improved our financial position... We believe the third quarter marked the low point for Caterpillar sales and revenues in what has been the toughest recession since the 1930s. We are seeing encouraging signs that indicate a recovery may be underway... However, the world economy is still facing significant challenges. There is uncertainty about the timing and strength of recovery... While 2010 will still be a difficult year, we expect improvement in our top line from the lows of 2009, and it's critical that we manage on the way up as well as we did in the face of declining volume. As a result, we've already started planning for an upturn. When it comes, it can come quickly, and we, our dealers and our suppliers will be prepared"

7:37AM BlackRock beats by $0.17, beats on revs (BLK) 230.43 : Reports Q3 (Sep) earnings of $2.10 per share, excluding non-recurring items, $0.17 better than the First Call consensus of $1.93; revenues fell 13.2% year/year to $1.14 bln vs the $1.13 bln consensus. Third quarter new business results reflected increasing demand for higher return investments, driving net inflows of $14.5 bln in equities, balanced, fixed income and alternative investments, and net outflows of $26.4 bln in cash management. "Improving investor sentiment was the most important factor in third quarter results. Clients are putting money back to work in the markets, driving inflows in equities and bonds, and outflows in money market funds industry-wide. This shift drove the rally in global stocks and tighter credit spreads, as well as a favorable revenue mix in net new business. Assets under management increased $61.6 bln to $1.435 trln at September 30, 2009. Net new business in long-dated investment products totaled $14.5 bln. In contrast, net outflows in cash management were $26.4 bln and distributions from advisory accounts totaled $4.6 bln. BlackRock Solutions business remained strong, with seven net new assignments added during the quarter. Year-over-year, AUM has increased $176.2 bln or 14%, including net new business of $133.4 bln, and BlackRock Solutions has added 56 net new assignments. Our pipeline of wins funded or to be funded totaled $42.5 bln as of October 15, 2009. "The BGI transaction remains on target for a December 1, 2009 closing."

7:03AM Pfizer beats by $0.03, beats on revs; raises FY09 guidance above consensus (PFE) 17.98 : Reports Q3 (Sep) earnings of $0.51 per share, $0.03 better than the First Call consensus of $0.48; revenues fell 2.9% year/year to $11.62 bln vs the $11.41 bln consensus. Co raises guidance for FY09, sees EPS of $2.00-2.05 vs. $1.98 consensus, prior guidance $1.90-2.00; sees FY09 revs of $49-50 bln vs. $48.43 bln consensus, prior guidance $45-46 bln. Co said, "During the first nine months of 2009, we have continued to deliver on our 2009 financial commitments and our longer-term cost-reduction target. Completion of both the Wyeth acquisition and associated integration plans is a testament to the hard work and dedication of talented colleagues throughout the organization. Looking ahead, we anticipate that our broad portfolio of products and increased investment in high-growth opportunities will better position us to generate consistent earnings growth and continue to deliver on our commitments."

6:18AM Lexmark beats by $0.20, beats on revs; guides Q4 EPS above consensus (LXK) 22.57 : Reports Q3 (Sep) earnings of $0.65 per share which excludes $0.52 per share for restructuring-related activities which includes $0.34 per share for additional restructuring charges the co is announcing today, $0.20 better than the First Call consensus of $0.45; revenues fell 15.3% year/year to $958 mln vs the $901.3 mln consensus. Co issues upside guidance for Q4, sees EPS of $0.50-$0.60 vs. $0.47 consensus. The co also announces additional restructuring initiatives designed to streamline its world-wide organization to improve operating efficiencies and effectiveness. This October 2009 plan includes reductions primarily in the areas of manufacturing and supply chain, service delivery overhead, marketing and sales support, corporate overhead, and development. The company expects these actions to be principally complete by the end of the first quarter of 2011. These October 2009 actions are expected to impact about 825 positions worldwide and will result in total pre-tax charges of approximately $120 mln with approximately $33 mln incurred in the third quarter of 2009. Lexmark expects these October 2009 actions will generate savings of approximately $70 mln in 2010 and ongoing savings of $110 mln beginning in 2011 with approximately 60% impacting operating expense and 40%impacting cost of goods sold.

1:38AM Allegiant Travel beats by $0.05, beats on revs (ALGT) 39.63 : Reports Q3 (Sep) earnings of $0.68 per share, $0.05 better than the First Call consensus of $0.63; revenues rose 13.9% year/year to $133.1 mln vs the $130.5 mln consensus. "Cost per passenger excluding fuel declined to $50.31 in the third quarter from $53.33 in the prior year, which understates the improvement since system load factor was 3.8% lower than last year. Please note these figures include bonus accrual, which has increased significantly in 2009 since it is tied to profitability and therefore further disguises underlying cost improvement. Excluding bonus accrual, cost per passenger excluding fuel declined to $4." Co reports load factor in 3Q of 89.9% 93.8% in 3Q08.

Earnings - July 21st 2008

4:47PM Celanese beats by $0.06, beats on revs; reaffirms FY08 EPS guidance (CE) 44.52 +0.13 : Reports Q2 (Jun) earnings of $1.20 per share, excluding non-recurring items, $0.06 better than the First Call consensus of $1.14; revenues rose 20.1% year/year to $1.87 bln vs the $1.84 bln consensus. Co reaffirms guidance for FY08, sees EPS of $3.60-3.85 vs. $3.98 consensus based on the strength of its performance in 1H and continued execution of its earnings growth strategy. Co reaffirms operating EBITDA guidance of $1.355-1.415 bln.

4:43PM Merck beats by $0.03, reports revs in-line (MRK) 35.33 -2.35 : Reports Q2 (Jun) earnings of $0.86 per share, excluding non-recurring items, $0.03 better than the First Call consensus of $0.83; revenues fell 1.0% year/year to $6.05 bln vs the $6.05 bln consensus. MRK guides worldwide sales: Co sees 2008 SINGULAIR sales of $4.4-4.6 bln, COZAAR/HYZAAR sales of $3.5-3.7 bln, GARDASIL sales of $1.4-1.6 bln, Other Vaccines sales of $2.7-2.9 bln, FOSAMAX sales of $1.4-1.7 bln... The results of the Simvastatin plus Ezetimibe in Aortic Stenosis (SEAS) study were released earlier today. MRK is currently assessing the impact of the results on the contribution from the Merck/Schering-Plough joint venture and therefore at this time is not providing 2008 equity income guidance; 2008 GAAP and non-GAAP EPS guidance; and any long-term financial performance guidance. MRK anticipates providing additional financial guidance at a later date.

4:38PM QLogic beats by $0.02, beats on revs (QLGC) 16.48 -0.12 : Reports Q1 (Jun) earnings of $0.31 per share, $0.02 better than the First Call consensus of $0.29; revenues rose 20.5% year/year to $168.4 mln vs the $161.9 mln consensus. "Our strong revenue performance was driven by sequential growth of 9% for both our Host Products and Network Products from the fourth quarter of fiscal 2008."

4:38PM Apple beats by $0.11, beats on revs; guides Q4 EPS below consensus, revs below consensus (AAPL) 166.29 +1.14 : Reports Q3 (Jun) earnings of $1.19 per share, $0.11 better than the First Call consensus of $1.08; revenues rose 38.0% year/year to $7.46 bln vs the $7.37 bln consensus. Co issues downside guidance for Q4, sees EPS of $1.00 vs. $1.24 consensus; sees Q4 revs of $7.8 bln vs. $8.32 bln consensus. Gross margin was 34.8 percent (vs flat guidance from Q2 of 32.9%), down from 36.9 percent in the year-ago quarter. Apple shipped 2,496,000 Macintosh computers during the quarter, representing 41 percent unit growth and 43 percent revenue growth over the year-ago quarter. The Company sold 11,011,000 iPods during the quarter, representing 12 percent unit growth and seven percent revenue growth over the year-ago quarter. Quarterly iPhone units sold were 717,000 (vs over 700K guidance) compared to 270,000 in the year-ago-quarter.

4:36PM Texas Instruments misses by $0.02, misses on revs; guides Q3 EPS below consensus, revs below consensus (TXN) 28.52 -0.30 : Reports Q2 (Jun) earnings of $0.44 per share, $0.02 worse than the First Call consensus of $0.46; revenues fell 2.2% year/year to $3.4 bln vs the $3.39 bln consensus. Co issues downside guidance for Q3, sees EPS of $0.41-0.47 vs. $0.51 consensus; sees Q3 revs of $3.26-3.54 bln vs. $3.56 bln consensus. The co says demand slowed unexpectedly in June primarily because distributors reduced inventory levels and did not replenish them late in the quarter. Additionally, Wireless revenue declined in the quarter, continuing its first-quarter weakness. "We believe this slower demand was due to a mix of reasons, including a weaker economic environment and greater confidence in TI's ability to deliver products within short lead times," Templeton said. "Our orders were up in the quarter and backlog grew, but we are cautious given the demand environment we just experienced. If demand strengthens as quickly as it slowed, we are well-positioned to meet it." (stock is halted)

4:35PM Woodward Governor beats by $0.04, beats on revs; raises FY08 guidance (WGOV) 38.24 +0.92 : Reports Q3 (Jun) earnings of $0.47 per share, $0.04 better than the First Call consensus of $0.43; revenues rose 22.6% year/year to $329.8 mln vs the $308.9 mln consensus. Co issues upside guidance for FY08, sees EPS of ~$1.75, up from $1.61-1.66, vs. $1.67 consensus; sees FY08 revs growth of ~20%, up from 14-16%, (which calculates to ~1.25 bln vs. $1.21 bln consensus.

4:28PM American Express misses by $0.27, misses on revs; says fallout from a weaker U.S. economy accelerated during June (AXP) 40.90 -1.29 : Reports Q2 (Jun) earnings of $0.56 per share, $0.27 worse than the First Call consensus of $0.83; revenues rose 7.9% year/year to $7.48 bln vs the $7.6 bln consensus. The second quarter results included a $600 mln ($374 mln after-tax) addition to U.S. lending credit reserves that reflects a deterioration of credit indicators beyond our prior expectation, and a $136 mln ($85 mln after-tax) charge to the fair market value of the co's retained interest in securitized Cardmember loans. The second quarter also included a tax benefit of $101 mln primarily related to resolution of certain prior years' tax items. "Fallout from a weaker U.S. economy accelerated during June with consumer confidence dropping, unemployment rates moving sharply higher and home prices declining at the fastest rate in decades... Consumer spending slowed during the latter part of the quarter and credit indicators deteriorated beyond our expectations... In light of the weakening economy, we are no longer tracking to our prior forecast of 4-6% earnings per share growth. That outlook was based on business and economic conditions in line with, or moderately worse than, January 2008. The environment has weakened significantly since then, particularly during the month of June... The scope of the economic fallout was evident even among our longer term, superprime Cardmembers... Newer Cardmembers -- whose write-off levels are typically higher than the total portfolio -- are also feeling the impact, but we are confident that the relationships we've built during the last several years will generate attractive economics over their life cycle... Despite the weakness in our bottom line, revenue grew a strong 8 percent and many of our key business metrics performed very well as we benefited from the strength of our international consumer and Global Business-to-Business operations... While we are obviously disappointed in the impact that the higher reserves had on earnings, our coverage levels are now substantially higher than at any point during the last three years. The current reserves reflect our expectation that write-offs will continue to rise in the remainder of 2008... We remain focused on gaining profitable share but, as you would expect in this environment, we will be very selective with our investment dollars. While we continue to scale back some card acquisition efforts and reduce credit lines selectively, we also plan to take advantage of growth opportunities in the marketplace. "Our reengineering efforts over the past decade have resulted in a well controlled expense base, but in order to give us greater flexibility to invest in the business, we are accelerating those efforts. Our aim is to free-up resources by reducing overall costs and staffing levels. While we have not yet quantified the impact of these activities, we expect them to result in restructuring-related charges during the second half. "While we have been able to generate substantial earnings and returns relative to many in the financial sector, we do not expect to meet or exceed our long-term financial targets until we see improvements in the economy... We do not know the extent of the current downturn, but the position of our company today is financially sound and competitively strong. We've lowered our risk profile by divesting some businesses and we are well-positioned to execute against growth opportunities in a manner that continues to appropriately balance our short, medium and long-term objectives."

4:19PM Eagle Materials misses by $0.11, misses on revs (EXP) 23.52 +0.03 : Reports Q1 (Jun) earnings of $0.18 per share, $0.11 worse than the First Call consensus of $0.29; revenues fell 20.1% year/year to $176.8 mln vs the $198.1 mln consensus. Co says, "The continued contraction in U.S. homebuilding activity and escalating energy costs negatively impacted our wallboard sales prices and costs. In addition, our cement sales volumes were negatively impacted by adverse weather conditions in the Midwest. (Stock is halted).

4:13PM Schering-Plough beats by $0.03, beats on revs (SGP) 18.95 -2.49 : Reports Q2 (Jun) earnings of $0.45 per share, $0.03 better than the First Call consensus of $0.42; revenues rose 54.8% year/year to $4.92 bln vs the $4.77 bln consensus. "We remain confident in VYTORIN and ZETIA and the ability of these medicines to help patients get to lower LDL cholesterol goals. While the overall U.S. prescription market continues to get tougher, we achieved good sales growth internationally, with strong results for REMICADE, NASONEX and TEMODAR."

4:12PM Mohawk beats by $0.02, reports revs in-line; guides Q3 below consensus (MHK) 64.06 -0.79 : Reports Q2 (Jun) earnings of $1.29 per share, $0.02 better than the First Call consensus of $1.27; revenues fell 6.9% year/year to $1.84 bln vs the $1.84 bln consensus. Co sees Q3 EPS of $1.06-1.15 vs. $1.40 consensus. Co's results for the second quarter were impacted by the slowing economies in the U.S. and Europe and rapidly increasing commodity costs. Declining new U.S. home construction and residential remodeling, slowing European demand and rising raw material and energy costs have contributed to the flooring industry cyclical decline. The rapidly increasing costs are impacting co's margins even as they raise selling prices to offset these costs.

4:08PM Canadian Natl Rail beats by C$0.04, beats on revs (CNI) 50.95 -0.22 : Reports Q2 (Jun) earnings of C$0.90 per share, excluding non-recurring items, C$0.04 better than the First Call consensus of C$0.86; revenues rose 3.5% year/year to C$2.1 bln vs the C$2.06 bln consensus. CNI's sees 2008 diluted EPS growth growth in the mid-single-digit range over 2007 adjusted diluted EPS of C$3.40

4:05PM SanDisk misses by $0.23, misses on revs (SNDK) 18.01 +0.44 : Reports Q2 (Jun) loss of $0.10 per share, excluding non-recurring items, $0.23 worse than the First Call consensus of $0.13; revenues fell 1.3% year/year to $816 mln vs the $906.1 mln consensus. Co is delaying the start of the next phase of production ramp in Fab 4 and now expects it to start no sooner than April 2009. The co is also pushing out its decision to invest in Fab 5 until market conditions improve. These actions are aimed at reducing future capital expenditures and inventory growth in order to maintain a strong balance sheet... Co says, "Our Q2 sales were well below our expectations due to the rapid deterioration in consumer confidence which impacted our sales in U.S. retail and to handset OEMs. Product gross margin was negatively impacted by the lower sales volume and a substantial inventory write-down. Overall demand is expected to improve in the upcoming holiday season; however, industry-wide Flash inventories remain excessive and pricing and margins will therefore remain under pressure until supply and demand come into balance. We are taking significant actions to slow our captive supply growth, which will reduce our capital expenditure commitments, and allow us to better manage our inventory. We are also continuing to improve our cost structure through transitions to 43-nanometer MLC and the industry's first commercialized 3-bits per cell NAND flash. While the industry downturn has been more pronounced and severe than expected, we are optimistic about our long-term renewed growth when the market rebounds."

Sport Supply Group Sees Q408 And FY08 EPS Well Above Estimates; Raises FY08 EPS Guidance And Introduces FY09 EPS Guidance >RBI 9:59AM Sport Supply Group raises FY08 EPS guidance to $0.75 - $0.77 per share; introduces FY09 EPS guidance of $0.85 - $0.95 per share (RBI) 11.45 +1.25 : Co raised its FY08 EPS guidance to $0.75-0.77, up from $0.65-0.73, vs. $0.71 consensus. Co also introduced FY09 EPS guidance of $0.85-0.90 vs. $0.80 consensus. "Our Fourth Fiscal Quarter appears to have delivered an outstanding finish to what has been a very impressive year. Preliminary results for the Quarter ended June 30, 2008 indicate near 10% organic sales growth, significant gross margin expansion, and SG&A expenses lower than the prior year for the second straight quarterly period. We have continued to focus on bottom line performance as we expand market share. Results suggest the plan is working. The business is well positioned for continued organic growth and growth via acquisition or joint-venture opportunity. We continue to evaluate a number of options to expand our footprint in the space and further leverage our scalable business platform and ever strengthening balance sheet, which as of June 30, 2008 had approximately $20.5 Million cash on-hand, up 58% from $13.0 Million on March 30, 2008. Other uses of excess cash and our untapped credit facility may include the repurchase of common stock and/or the repurchase of outstanding convertible debentures as conditions merit. Fiscal 2008 will likely represent the second straight year of 100%+ earnings growth for the Company. This earnings expansion is a credit to our hard working employees across the Nation."

8:32AM Badger Meter beats by $0.05, beats on revs (BMI) 51.30 : Reports Q2 (Jun) earnings of $0.48 per share, $0.05 better than the First Call consensus of $0.43; revenues rose 20.1% year/year to $74.7 mln vs the $70.2 mln consensus. "While the current economic environment is a concern, to this point we have not seen an impact on sales of our utility products. We have seen some weakening in certain products in our industrial markets, however, which are being somewhat offset by increased sales of our small precision valves into the petroleum and certain other industries."

8:05AM China Wind Systems sees Q2 EPS of $0.023-0.026; expects Q2 revs to rise 143-150% YoY to $10.9-11.2 mln - no ests (CWSI) 4.05 : For the year ended December 31, 2008, CWSI.OB expects to report revenues of approximately $40 mln and net income of approximately $7 mln. The guidance reflects the expectation that the co's new large scale facility to manufacture high precision components for the wind energy industry will begin to contribute to results in the fourth quarter of fiscal 2008. ''We remain quite optimistic about achieving our long-term goal in becoming a leading provider of wind energy components in China. The planned rapid growth in wind generation capacity in China is creating strong demand for precision components such as forged rolled rings and shafts for use in the next generation of large scale windmills... We expect the pace of our involvement in the wind energy industry to increase dramatically over the course of the next few years, as we gain move into manufacturing critical wind components such as gear boxes and yaw bearings.''

7:36AM Timken rasies Q2 and FY08 EPS guidance above consensus (TKR) 28.68 : Co issues upside guidance for Q2 (Jun), sees EPS of $0.96, excluding non-recurring items, vs. $0.78 First Call consensus, up from $0.73-0.83 previously. Co issues upside guidance for FY08 (Dec), sees EPS of $2.95-3.10 vs. $2.90 consensus, up from $2.75-2.95 previously. Q2 EPS guidance excludes manufacturing rationalization, impairment and restructuring charges, net of tax. Second-quarter performance benefited from the company's ability to capitalize on strong industrial markets, with higher volume, improved mix and better execution more than offsetting the impact of declining automotive demand. (Machine Tool Maker - Growing business globally - global growth play)

7:15AM Ametek beats by $0.11, beats on revs; guides Q3 EPS in-line, revs above consensus; guides FY08 EPS above consensus, revs above consensus (AME) 50.30 : Reports Q2 (Jun) earnings of $0.68 per share, excluding $0.07 charge of $0.07 related to the performance-based accelerated vesting of restricted stock, $0.11 better than the First Call consensus of $0.57; revenues rose 24.9% year/year to $648.8 mln vs the $626.7 mln consensus. Co issues mixed guidance for Q3, sees EPS of $0.61-0.63 vs. $0.62 consensus; sees Q3 rev growth of 20%, which equates to $634.2 mln vs. $619.50 mln consensus. Co issues upside guidance for FY08, sees EPS of $2.50-2.54 vs. $2.47 consensus; sees FY08 rev growth of 20%, which equates to $2.564 bln vs. $2.51 bln consensus. (Industrial Equipment)

7:15AM Bank of America beats by $0.19, beats on revs (BAC) 27.49 : Reports Q2 (Jun) earnings of $0.72 per share, $0.19 better than the First Call consensus of $0.53; revenues rose 3.5% year/year to $20.32 bln vs the $18.37 bln consensus. Co reports $1.22 bln of market writedowns. Co reports provision expense of $5.83 bln, reflecting net charge-offs of $3.62 bln and additions to the allowance for loan and lease losses of $2.21 bln. The additions were mainly in consumer and commercial portfolios directly tied to housing, including home equity, residential mortgage and homebuilders. BAC has added $7.29 bln to the reserve through increased provision over the past 12 months. Co reports Countrywide had a Q2 net loss of $2.33 bln, and expects Countrywide to be accretive in 2008. Countrywide's results are not reflected in BAC's Q2 results. "Credit quality continued to weaken, particularly in markets that experienced the most significant home price declines. The slowing economy resulted in credit deterioration concentrated in the domestic consumer, small business and homebuilder portfolios. Both net charge-offs and nonperforming assets continued to increase."

7:08AM Weatherford misses by $0.02, reports revs in-line (WFT) 40.68 : Reports Q2 (Jun) earnings of $0.43 per share, excluding non-recurring items, $0.02 worse than the First Call consensus of $0.45; revenues rose 22.8% year/year to $2.23 bln vs the $2.21 bln consensus. The $0.09 non-recurring items in the second quarter of 2008 results include a gain on the restructuring of a Qatar operation into a JV, partially offset by investigation and exit costs incurred in connection with the company's withdrawal from sanctioned countries.

7:02AM Astec Industries misses by $0.02, beats on revs (ASTE) 34.93 : Reports Q2 (Jun) earnings of $0.93 per share, $0.02 worse than the First Call consensus of $0.95; revenues rose 22.7% year/year to $277.7 mln vs the $269.3 mln consensus.

6:32AM Hasbro beats by $0.03, beats on revs (HAS) 37.99 : Reports Q2 (Jun) earnings of $0.25 per share, $0.03 better than the First Call consensus of $0.22; revenues rose 13.4% year/year to $784.3 mln vs the $675.4 mln consensus. "I'm very pleased with the earnings we announced today, while input cost inflation continues to be challenging, thus far we have been able to mitigate most of the impact through cost savings initiatives and pricing actions."