Earnings - 13th July 2009

6:16PM Martin Marietta lowers FY09 EPS guidance below consensus (MLM) 77.10 +1.63 : Co lowers FY09 EPS guidance to to $2.70-3.30 vs $3.55 First Call consensus, down from $3.75-4.15. Co says, "The revised earnings range is driven by three primary factors: (i) a weaker and slower-than-expected recovery of the general United States economy; (ii) a marked decrease in transportation infrastructure spending resulting from a decline in state revenues and a longer-than-expected delay in federal stimulus projects moving to the construction stage; and (iii) an adverse weather-affected first half of the year... says, as we have consistently indicated, we have expected our 2009 performance to be driven primarily by anticipated economic growth in the second half of the year. This growth was to be principally fueled by federal economic stimulus, or the American Recovery and Reinvestment Act, which was specifically crafted to provide for increased construction and for investment in the nation's infrastructure.csx

4:58PM Int. Intelligence guides Q2 revs and EPS above consensus (ININ) 13.11 +0.38 : Co issues upside guidance; co sees Q2 Non-GAAP EPS of $0.22-0.26, excluding non-recurring items, vs. the $0.14 First Call consensus. Co also issues Q2 revs of $32-34 mln vs $29.8 mln consensus. Co says, "We saw growth in the quarter in both product and services revenues. We received three orders over $1 million, including two from new customers, and another nine orders over $250,000 each. We were pleased to see such customer demand in an environment that continues to be very competitive and filled with economic uncertainty."

4:38PM CSX Corp beats by $0.10, misses on revs (CSX) 32.54 +0.51 : Reports Q2 (Jun) earnings of $0.72 per share, excluding non-recurring items, $0.10 better than the First Call consensus of $0.62; revenues fell 25.0% year/year to $2.2 bln vs the $2.27 bln consensus. CSX said revenue fell primarily due to a 21% decline in volume and lower fuel surcharge recovery. Volumes continued to decline across the board, although the rate of decline in the coal market accelerated in the second quarter.

8:00AM Fastenal misses by $0.04, misses on revs (FAST) 37.73 : Reports Q2 (Jun) earnings of $0.29 per share, $0.04 worse than the First Call consensus of $0.33; revenues fell 21.4% year/year to $474.9 mln vs the $487.1 mln consensus. As they saw in the previous two quarters, the weakened economy continues to have a substantial impact on their business. These impacts continue to negatively affect their sales, particularly related to our industrial production business (business where we supply products that become part of the finished goods produced by others) and, more recently, their non-residential construction business. Co reaffirms cap-ex in 2009 will be $65,000 from $95,000 in '08.

Sector rotation or just a fakeout move?

FAZ looks extremely coiled under the 50EMA... Is it ready to snap to the upside? I am not betting on it unless I see a clear move above the 50DEMA... I wonder what catalyst could cause that?

Interestingly, IYT closed negative on a high volume but CSX, BNI, UNP were green!

XLU, XRT, XLV, XLP is where the money is flowing! Energy(XLE) and Technology(XLK) are loosing steam!

$VIX is coiling up as well! Seems like we are going to see an orderly correction without much panic. I think money will come out off the frothy sectors and move into the oversold (underbought rather) sectors slowly.

Earnings - 14th April 2009

4:23PM Intel beats by $0.08, beats on revs; plans Q2 revs to be flat sequentially (INTC) 16.01 +0.03 : Reports Q1 (Mar) earnings of $0.11 per share, $0.08 better than the First Call consensus of $0.03; revenues fell 26.1% year/year to $7.14 bln vs the $6.98 bln consensus. Co issues rev outlook for Q2, plans Q2 revs flat from Q1, equates to ~$7.1 bln vs. $7.05 bln consensus. Co reports Q1 gross margins of 45.6% vs 43.55% consensus. Gross margin percentage for Q2 is expected to be in the mid-40s. Spending (R&D plus MG&A) for Q2 is expected to be approximately flat to the first quarter and restructuring and asset impairment charges of approximately $115 million. Co says the effective tax rate was 1%, lower than the expectation of approximately 27%. "We believe PC sales bottomed out during the first quarter and that the industry is returning to normal seasonal patterns."

4:18PM CSX Corp beats by $0.11, misses on revs (CSX) 28.39 -0.50 : Reports Q1 (Mar) earnings of $0.62 per share, $0.11 better than the First Call consensus of $0.51; revenues fell 17.0% year/year to $2.2 bln vs the $2.26 bln consensus. Co says, "The volume declines were driven by significant weakness in industrial production, housing starts, and consumer spending, as well as in the agriculture and energy sectors."

7:51AM Fastenal misses by $0.01, misses on revs (FAST) 38.18 : Reports Q1 (Mar) earnings of $0.33 per share, $0.01 worse than the First Call consensus of $0.34; revenues fell 13.6% year/year to $489.3 mln vs the $498 mln consensus.

GWW - Beats estimates although posting year/year decrease in earnings

7:49AM Johnson & Johnson beats by $0.04; reaffirms FY09 EPS guidance (JNJ) 51.15 : Reports Q1 (Mar) earnings of $1.26 per share, $0.04 better than the First Call consensus of $1.22; revenues fell 7.2% year/year to $15.03 bln vs the $15.43 bln consensus. Co reaffirms guidance for FY09, sees EPS of $4.45-4.55, ex items vs. $4.49 consensus.

Earnings - 12th Jan 2009

4:52PM CSX Corp prelim Q4 EPS of $0.90, ex-items, vs $0.98 First Call consensus; revs of ~$2.7 bln vs $2.77 bln First Call consensus (CSX) 32.22 : The co announces preliminary fourth quarter earnings per share of 63 cents. These results include a noncash impairment charge of approximately 27 cents per share related to the write-down of its investment in The Greenbrier resort in White Sulphur Springs, West Virginia. Excluding this charge and insurance gains of 1 cent in the prior year quarter, comparable earnings per share would be approximately 90 cents, which represents a 6% increase over the prior year quarter. Overall revenues are expected to be approximately $2.7 billion for the quarter, up 4% from the prior year period. This was driven by higher yields and fuel recovery, which are expected to offset the impact of significantly lower volumes. Operating income, on a comparable basis, is estimated to increase 16% to $692 million, resulting in an operating ratio of approximately 74.1%. Given the current economic challenges, particularly the uncertainty facing U.S. manufacturing, the company is no longer affirming or providing long-term guidance.

4:36PM Rogers Corp lowers Q4 EPS and revs guidance (ROG) 22.71 -0.50 : Co lowers guidance for Q4 (Dec), sees EPS of $0.43-0.49, excluding $0.38 charge, down from $0.50-0.56, vs. $0.39 First Call consensus; sees Q4 (Dec) revs of $78-79 mln, down from $88-92 mln, vs. $85.00 mln consensus. "Based on what has been happening recently in the global economy, we expected at some point that our sales might contract. Although we were unable to predict the exact timing of this, we had begun to prepare ourselves for this possibility. Our inventories are low and at a manageable level, accounts receivable days outstanding are very good and we have ~$60 mln in cash and no debt. Also, co has implemented plans to manage production to match incoming orders. Going forward, Rogers will continue to focus efforts on new product development and new product introductions."

4:14PM Alcoa misses by $0.18, beats on revs, says its liquidity remains solid (AA)10.06 -0.75 : Reports Q4 (Dec) loss of $0.28 per share, excluding non-recurring items, $0.18 worse than the First Call consensus of ($0.10); revenues fell 19.1% year/year to $5.69 bln vs the $5.26 bln consensus. Co says it is taking wide-ranging measures to address the economic downturn, including streamlining its portfolio to focus on businesses where Alcoa is the recognized leader, curtailing production to adjust to weakened demand, reducing headcount, and achieving significant savings in key raw materials. Co suffered from a historic 56% price decline in aluminum over the last five months and saw a sharp drop in orders. Co says its liquidity remains solid. (currently halted, no resumption time)

11:32AM Celgene confirms 2009 outlook (CELG) 49.49 -0.78 : Co confirms downside guidance for FY09 (Dec), sees EPS of $2.05-2.15 vs. $2.27 First Call consensus; sees FY09 (Dec) revs of $2.6-2.7 bln vs. $2.93 bln consensus. The co also gave 2009 corporate objectives: To maximize the clinical, regulatory and commercial potential of REVLIMID, VIDAZA, Global THALOMID/Thalidomide and Pomalidomide into nearly 75 countries. Execute launch of VIDAZA in higher-risk MDS and AML in European Union. Submit REVLIMID regulatory filing for multiple myeloma and Del 5Q MDS in Japan. Gain REVLIMID reimbursement approvals in UK, Canada, Australia and other countries. Secure REVLIMID approvals in Russia, Turkey, Middle East and Latin America and submit data to FDA to evaluate REVLIMID as treatment for NDMM... The co confirmed FY08 total revenue for 2008 of approximately $2.233 bln and REVLIMID net product sales in 2008 to more than 71%. The co confirmed VIDAZA net product sales in the fourth quarter 2008 were approximately $70 mln and non-GAAP diluted EPS to $1.55 to $1.56.

9:19AM Kendle sees EPS of $2.12-2.20 vs. $2.20 First Call consensus, sees FY08 (Dec) revs of $475-480 vs. $488.02 mln consensus (KNDL) 20.78 : Co issues lowersguidance for FY08 (Dec), sees EPS of $2.12-2.20 vs. $2.20 First Call consensus down from previous guidance of $2.10-2.25; sees FY08 (Dec) revs of $475-480 vs. $488.02 mln consensus, down from previous guidance of $485-500 mln.

9:12AM A-Power Energy announces that GE Drivetrain Technologies signs LOIs to supply 900 wind turbine gearboxes and establish joint venture to build wind turbine assembly facility (APWR) 4.90 : GE Drivetrain Technologies, a unit of GE Transportation (GE), and A-Power Energy Generation Systems (Nasdaq: APWR) announce that they have signed two Letters of Intent , one for GE Drivetrain Technologies to supply APWR with 2.7 megawatt wind turbine gearboxes and a second to establish a Joint Venture partnership for a wind turbine gearbox assembly plant. The companies' joint venture agreement creates a wind turbine gearbox assembly business that will be majority owned by GE Drivetrain Technologies and operate under the name GE Transportation. The new assembly plant will bring multi-megawatt gearbox capacity to China and serve as GE Drivetrain Technologies' Southeast Asia manufacturing center from which it will serve its customers in the region beginning in mid-2010. The Joint Venture company will take advantage of APWR's knowledge of the local market, as well as of GE Drivetrain Technologies' process and quality expertise.

8:47AM Kennametal announces further Q4 cost reduction actions; lowers Q4 guidance to $0.34 vs $0.48 consensus (KMT) 20.39 : Co issues downside guidance for Q2 (Dec), sees EPS of $0.34, excluding excluding charges of approximately $0.14 per share relating to restructuring, vs. $0.48 First Call consensus. The additional actions announced today involve reducing the company's global salaried workforce by approximately 800 positions which is expected to generate annual pre-tax savings of approximately $70 mln. These employment reductions will be completed within the next three to six months. The company anticipates recording pre-tax cash charges related to these initiatives of approximately $40 mln. The co has also identified additional opportunities related to its restructuring program previously announced in April 2008. The ongoing annual pre-tax savings from these restructuring actions, which include a reduction in workforce of approximately 400 positions, are now expected to be approximately $30 mln once fully implemented over the next six to nine months. The co now expects to recognize approximately $50 mln of pre-tax charges related to this restructuring, including approximately $27 mln recorded through the December 2008 quarter. Approximately 90 percent of these charges are expected to be cash expenditures. In total, together with the previously announced restructuring is expected to produce ongoing annual pre-tax savings of approximately $100 mln including the total reduction in workforce of approximately 1,200 positions. The total pre-tax charges expected to be recognized are estimated to be approximately $90 mln, including approximately $27 mln recorded through the December 2008 quarter.

8:31AM Aetna sees FY08 $3.90-3.95 vs $3.93 First Call consensus; co expects FY09 EPS growth to be 12-14%, ex-items (AET) 29.20 : The co announces Chairman and CEO Ronald Williams will make a presentation today during which he intends to reaffirm the company's full-year 2008 operating earnings per share guidance of $3.90 to $3.95. Aetna also will update its preliminary guidance on certain 2009 performance metrics, including full-year 2009 operating earnings per share. Aetna currently projects full-year 2009 operating earnings per share growth to be 12-14% excluding the projected year-over-year increase in pension expense, consistent with Aetna's prior guidance. Including the projected year-over-year increase in pension expense of $.54 per share, Aetna projects full-year 2009 operating earnings per share to be slightly lower than 2008. Aetna's projected 2008 operating earnings per share include approximately $.15 per share of pension benefit. As a result of the significant decline in equity markets experienced during 2008, Aetna's projected 2009 operating earnings per share include a pension expense of approximately $.39 per share, or a projected year-over-year increase of $.54 per share. Aetna's previous guidance provided on October 29, 2008, included a year-over-year increase in pension expense range of $.30 to $.40 per share; but since that time, the equity markets and interest rates have declined, resulting in an additional increase in Aetna's net pension obligations as of the December 31, 2008 measurement date.

8:06AM Abbott Labs sees FY08 EPS of $3.31-3.33 vs $3.32 First Call consensus; sees FY09 EPS of $3.65-3.70 vs $3.66 First Call consensus (ABT) 51.17 : The co announces its full-year earnings-per-share guidance for 2009 and confirming its previously issued 2008 earnings-per-share guidance of $3.31 to $3.33, excluding specified items. For 2009, the company expects earnings per share of $3.65 to $3.70 under Generally Accepted Accounting Principles and on a non-GAAP basis. The midpoint of this 2009 guidance reflects double-digit growth over the midpoint of 2008 earnings-per-share guidance. Abbott's 2009 outlook includes the acquisition of Advanced Medical Optics as announced today. Abbott expects the AMO transaction to be neutral to ongoing earnings per share in 2009 and accretive in 2010, both before one-time transaction-related costs, which will be provided at a later date.

7:35AM Digital Ally revenues for the year ended December 2008 increased over 65% to approximately $32.5 mln; raises 2009 rev guidance to $50 mln from $41.9 mln (DGLY) 2.92 : Co's revenues for the year ended December 31, 2008 increased over 65% to approximately $32.5 mln, compared with revenues of $19.4 mln in 2007. The Co expects to report record earnings in 2008, exclusive of non-recurring income tax benefits recorded in 2007, Co issues upside guidance for FY09 (Dec), sees FY09 (Dec) revs of $50 mln vs. $41.90 mln First Call consensus. "During our internal budgeting process, we carefully analyzed the current global economic environment, including the possible budget cuts confronting many federal, state and local government agencies... Based upon information currently available, we believe the continued success of our DVM-500 In-Car Digital Video System Integrated into a Rear View Mirror, combined with the anticipated impact of new products on our sales volumes, should allow Digital Ally to increase its 2009 revenues to at least $50.0 mln, when compared with record 2008 revenues of approximately $32.5 mln. To illustrate our confidence in this projection, all officers and directors at Digital Ally have agreed to defer 25% of their 2009 monetary compensation until year-to-date sales reach the $50 mln threshold."

7:31AM LaserCard announces $5.4 mln follow-on order for Saudi Arabia National ID card program (LCRD) 4.10 : Co announced a follow-on purchase order valued at $5.4 million to supply secure credentials for the Kingdom of Saudi Arabia's National Identity Card program.

7:13AM Hologic: Further color on guidance (HOLX) 10.90 : The co also reports although first quarter revenues are expected to fall three percent below initial expectations, they expect non-GAAP adjusted EPS for the first quarter of fiscal 2009 to meet or exceed initial expectations and be in a range of $0.30 to $0.31 (consensus is $0.29), as a result of a number of cost reduction initiatives the company implemented in the first quarter. This compares to prior Company guidance for non-GAAP adjusted EPS issued on November 11,2008 of $0.29 to $0.30. Non-GAAP adjusted EPS excludes approx $50 mln of amortization of intangibles which on an after-tax basis (at an effective tax rate of 34%) would reduce GAAP EPS by $0.13. The estimated GAAP EPS would then be in a range of $0.17 to $0.18.

7:02AM Hologic will report it expects Q1 2009 revs to be 3% below previously issued guidance (HOLX) 10.90 : Co lowers guidance for Q1 (Dec), sees Q1 (Dec) revs of $428-429 mln, down from $441-443 mln, vs. $437.04 mln First Call consensus.The three percent decline in anticipated revenues from its initial guidance is principally due to reductions in revenues in Hologic's Breast Health segment. The Company attributes this decline primarily to cost pressures faced by hospitals, due to the worldwide economic instability which has resulted in longer sales processes and delays of capital equipment purchases.

7:01AM Cubist Pharma reports FY08 total revs above consensus (CBST) 24.56 : Co reports FY08 prelim revs of $433.6 vs $434.50 mln First Call consensus. Co reports U.S. net product revenues of $120.1 mln for the fourth quarter of 2008 for its antibiotic product CUBICIN (daptomycin for injection). This result represents an increase of 43%, or $36.2 mln, from fourth quarter 2007 U.S. CUBICIN net product revenues. Full year 2008 U.S. CUBICIN net product revenues were $414.7 mln. This result represents an increase of 45%, or $129.6 mln, from full year 2007 U.S. CUBICIN net product revenues. Cubist's share of full year 2008 international net product revenues was $7.4 mln. This represents an increase of $2.1 mln from full year 2007. Included in the full year 2008 total net revenues is $9.4 mln of service revenue relating to Cubist's exclusive agreement with AstraZeneca to sell and provide other support in the United States for MERREM I.V. (meropenem for injection).

6:53AM Alnylam Pharma reaffirms their previously raised guidance of ending 2008 with a cash position of greater than $500 mln; expects net operating loss of $35-45 mln for FY09 (ALNY) 23.12 : ALNY reaffirms previously raised guidance of ending 2008 with a cash position of greater than $500 mln, excluding the upfront payment received as part of our Cubist RSV partnership announced last week. Co says, "In 2009, we expect a total non-GAAP cash net operating loss of approximately $35 to $45 mln and also expect to incur approximately $20 to $30 mln of other cash payments, including further investment in Regulus, cash tax payments, capital expenditures, and other potential strategic investments. We expect to finish 2009 with greater than $435 mln in cash." Co plans to continue to Progress ALN-RSV01 in Phase II Studies; advance ALN-VSP for the Treatment of Liver Cancers; expand Clinical Development Pipeline.

Earnings - 11th Sept 2008

4:37PM China Precision Steel announces preliminary results for FY08 above street ests (CPSL) 4.96 +0.62 : China Precision Steel expects to report record revs for FY08 of $87.7 mln, an increase of 62.6% from $54.0 mln in revenues in fiscal year 2007, and ahead of consensus of $75.41 mln. The co's revs growth is attributable to increased sales of high-carbon, cold-rolled products, subcontracting income and exports of low-carbon, hard rolled products. Gross profit for the year is expected to be a record $22.5 mln, an increase of 49.6% from $15.0 million in fiscal 2007. Gross margin is expected to be 25.6% in FY08, compared to 27.9% in fiscal 2007.

8:36AM Campbell Soup beats by $0.01, reports revs in-line (CPB) 37.58 : Reports Q4 (Jul) earnings of $0.26 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.25; revenues rose 12.8% year/year to $1.72 bln vs the $1.72 bln consensus. "Consistent with our long-term target growth rate, we expect to deliver adjusted net earnings per share growth between 5 and 7 percent from the fiscal 2008 adjusted base of $2.09... In fiscal 2009, we expect our continuing operations, excluding the negative impact of one less week in the fiscal year and recent divestitures, to deliver sales growth in excess of our long-term target range of between 3 and 4 percent. We expect to deliver EBIT growth, excluding items impacting comparability, slightly below our long-term target growth rate of between 5 and 6 percent, reflecting the impact of one less week in the fiscal year, higher marketing spending behind increased innovation in the U.S. and increased investment spending in Russia and China."

8:01AM CSX Corp increases 2008 and long-term financial guidance (CSX) 54.85 : The co now expects FY08 earnings per share of $3.65-3.75, an increase from previous guidance that targeted the upper end of the $3.40-3.60 range (consensus $3.57). CSX is increasing 2008 capital spending to ~ $1.75 bln and expects free cash flow before dividends of ~ $1 bln this year. Based on the strong momentum that is expected to continue beyond 2008, the co also is raising the following long-term guidance through 2010: Compound annual growth in operating income of 15-20% over the 2008 base, compared to the prior guidance of 13-15% over the 2007 base; Compound annual growth in earnings per share of 20-25% over the 2008 base, compared to the prior guidance of 18-21% over the 2007 base; and -- Operating ratio in the high 60's for 2010, compared to the prior target of the low 70's.

7:58AM WW Grainger reports that Aug '08 daily sales grew 7% vs. Aug '07 (GWW) 88.39 : Co reports sales results for the month of Aug 2008. Daily sales grew 7% vs Aug 2007. Sales benefited by approx 1% point due to Lab Safety's acquisition of Highsmith. Sales were negatively affected by approx 2% points due to a decline in sales of seasonal products. There were two less selling days in August 2008 (21) vs August 2007 (23).

7:32AM Lululemon Athletica beats by $0.05, misses on revs; reaffirms FY09 EPS guidance, revs guidance (LULU) 18.00 : Reports Q2 (Jul) earnings of $0.18 per share, $0.05 better than the First Call consensus of $0.13; revenues rose 47.7% year/year to $85.5 mln vs the $88.2 mln consensus. Co reaffirms guidance for FY09, sees EPS of $0.68-0.71 vs. $0.71 consensus; sees FY09 revs of $380-385 mln vs. $404.94 mln consensus. Co reaffirms long-term growth targets of net rev growth of approx 25% and EPS growth in excess of 25%.