Earnings - 30th April 2009 (2)

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.

Earnings - 29th Jan 2009

6:32PM Lindsay Corp sees Q2 revs below consensus; co expects total Q2 revs to be ~30% to 40% lower YoY (LNN) 31.83 -1.15 : Co issues downside guidance; co announced that it expects total revs in Q2 of FY09 to be ~30-40% YoY, which equates to ~$65.31-75.9 mln vs $94.0 mln First Call consensus. Co says the primary factor for the expected decline in revenue is the significantly lower global, incoming order rate for irrigation equipment. While infrastructure revenues are also expected to be lower in the quarter than the same prior-year period, the Company believes this is due primarily to the timing of project-oriented business. The Company will continue to take appropriate actions in response to economic conditions, including reductions in workforce and discretionary spending and other cost-saving measures. As of mid-January, the Company had reduced its global headcount by 25% since the start of fiscal 2009.

5:23PM Quality Systems beats by $0.01, beats on revs (QSII) 39.15 +0.01 : Reports Q3 (Dec) earnings of $0.46 per share, $0.01 better than the First Call consensus of $0.45; revenues rose 36.2% year/year to $65.5 mln vs the $62.9 mln consensus. For the quarter, the co's NextGen Healthcare Information Systems division posted record revenue of $61.5 mln, up 40% when compared with the same quarter in the prior year and record operating income of $22.8 mln, up 28% over third quarter last year.

4:35PM Informatica beats by $0.01, misses on revs (INFA) 13.01 -0.20 : Reports Q4 (Dec) earnings of $0.24 per share, $0.01 better than the First Call consensus of $0.23; revenues rose 9.2% year/year to $124.4 mln vs the $127.4 mln consensus.

4:16PM Amazon.com beats by $0.13, beats on revs; guides Q1 revs in-line (AMZN)50.00 -0.36 : Reports Q4 (Dec) earnings of $0.52 per share, $0.13 better than the First Call consensus of $0.39; revenues rose 18.2% year/year to $6.7 bln vs the $6.44 bln consensus. Co issues in-line guidance for Q1, sees Q1 revs of $4.525-4.925 bln vs. $4.57 bln consensus. Operating income for Q1 is expected to be between $125 million and $210 million, or between 37% decline and 6% growth compared with first quarter 2008. "We remain relentlessly focused on serving customers with low prices, great selection and free shipping offers, including Amazon Prime ... We're particularly grateful for the unusually strong demand for Kindle in the fourth quarter."

4:13PM Sunpower beats by $0.13, beats on revs; guides FY09 EPS in-line, revs in-line (SPWRA) : Reports Q4 (Dec) earnings of $0.70 per share, $0.13 better than the First Call consensus of $0.57; revenues rose 78.7% year/year to $401 mln vs the $396.8 mln consensus. Co issues in-line guidance for FY09, sees EPS of $2.20-2.80, ex items vs. $2.66 consensus; sees FY09 revs of $1.6-2.0 bln vs. $1.89 bln consensus. "Long-term solar market fundamentals remain in place and we are encouraged by the commitment to renewable energy by President Obama and Congressional leadership," continued Werner. "Given these factors, we are well positioned to take advantage of growing global demand for solar this year and in the future, despite uncertainty in today's economic and credit environment."

8:50AM Helmerich & Payne beats by $0.26, beats on revs (HP) 24.83 : Reports Q1 (Dec) earnings of $1.35 per share, excluding $0.01 in non-recurring items, $0.26 better than the First Call consensus of $1.09; revenues rose 36.6% year/year to $623.8 mln vs the $573.2 mln consensus. The significant increase as compared to the prior quarter was mostly driven by higher average revenue and margins per rig day during this year's first quarter. Average revenue per day rose by $2,032 over the previous quarter to $27,066, and average rig margin per day rose by $1,657 over the previous quarter to $14,820. Co says, "Exploration and production companies are currently being very aggressive about reducing their drilling plans in the near term, responding to the double blow of depressed energy prices and dysfunctional credit markets. Given the speed and severity of the current pullback, it is difficult to predict when supply and demand will return to a better balance. Until then, customers seem to be waiting to see where commodity prices stabilize before making final determinations concerning this year's spending plans."

8:07AM Illinois Tool beats by $0.06, reports revs in-line; guides Q1 EPS below consensus; guides FY09 EPS in-line (ITW) : Reports Q4 (Dec) earnings of $0.54 per share, $0.06 better than the First Call consensus of $0.48; revenues fell 5.9% year/year to $3.68 bln vs the $3.67 bln consensus. Co issues downside guidance for Q1, sees EPS of $0.26-$0.42 vs. $0.47 consensus. The 1Q09 forecast assumes a total company revenue range of -17% to -11%. Co issues in-line guidance for FY09, sees EPS of $1.84-$2.48 vs. $2.35 consensus. Co states, The full-year forecast assumes a total company revenue range of -12% to -6%. Briefing Note: This would equate to a range of approx $13.97-$14.92 bln vs $14.72 bln.

8:04AM Kennametal misses by $0.01, misses on revs; guides Q3 EPS below consensus; guides FY09 EPS below consensus (KMT) 18.69 : Reports Q2 (Dec) earnings of $0.35 per share, $0.01 worse than the First Call consensus of $0.36; revenues fell 12.1% year/year to $569 mln vs the $579.7 mln consensus. Co issues downside guidance for Q3, sees EPS of $0.05-0.15 vs. $0.40 consensus. Co issues downside guidance for FY09, sees EPS of $1.30-1.50 vs. $1.89 consensus. Organic sales for fiscal 2009 are expected to be 14-15% lower than for the previous fiscal year.

7:42AM Cash America misses by $0.03, beats on revs; reaffirms FY09 EPS guidance (CSH) 19.75 : Reports Q4 (Dec) earnings of $0.74 per share, excluding restructuring and severance charges, $0.03 worse than the First Call consensus of $0.77; revenues rose 7.1% year/year to $279.7 mln vs the $274.3 mln consensus. Co reaffirms guidance as announced on Jan 22 for FY09, sees EPS of 3.10-3.30 vs. $3.08 consensus. Mgmt enters the first quarter of fiscal 2009 without the earnings attributable to certain markets for its cash advance product that added significant incremental profitability in fiscal 2008. Mgmt has estimated that the net effect of lost earnings due to changes in and the elimination of cash advance markets during 2008 equates to $20 to $25 mln after taxes on an annualized basis (between 66 and 83 cents per share). Mgmt believes that growth in its existing and new markets for its cash advance product will combine with growth from its pawn lending business and will overcome this decrease in contribution but not until the second half of 2009. While mgmt believes that the demand for its credit products will remain intact in 2009, it feels there is a likelihood it will experience higher loan losses associated with the difficult consumer economic environment and it expects pressure on retail margins to support sales activities during the year. Co says, "We experienced an increase in loss rates early in the quarter within our online cash advance portfolio reversing a trend of lower loss rates through September. While we were disappointed by this change, we believe that we have addressed it appropriately and we are still within an acceptable range for this line of business."

7:36AM Alliant Tech beats by $0.04, misses on revs; guides FY09 EPS below consensus, revs below consensus; guides FY10 EPS below consensus, revs in-line (ATK) : Reports Q3 (Dec) earnings of $1.96 per share, $0.04 better than the First Call consensus of $1.92; revenues rose 5.2% year/year to $1.11 bln vs the $1.14 bln consensus. Co issues downside guidance for FY09, sees EPS of $7.40-7.50 vs. $7.56 consensus; sees FY09 revs of $4.5 bln (previously expected $4.55) vs. $4.55 bln consensus. ATK continues to expect full-year FY09 operating margins to be approximately 10.5 percent, with free cash flow of approximately $260 million. Co issues mixed guidance for FY10, sees EPS of $7.75-7.95 vs. $8.36 consensus; sees FY10 revs of $4.55-4.65 bln vs. $4.87 bln consensus.  ATK expects to generate free cash flow in the range of $130 million to $150 million, which includes the impact of making the $150 million prepayment contribution to the company's pension plans, and approximately $120 million of capital expenditures

7:34AM Celgene beats by $0.01, reports revs in-line; guides FY09 EPS below consensus, revs below consensus; co reports drug numbers (CELG) 52.20 : Reports Q4 (Dec) earnings of $0.43 per share, $0.01 better than the First Call consensus of $0.42; revenues rose 52.3% year/year to $623 mln vs the $621.7 mln consensus. Co issuesdownside guidance for FY09, sees EPS of $2.05-2.15 vs. $2.18 consensus; sees FY09 revs of $2.6-2.7 bln vs. $2.85 bln consensus. Q4 Drug sales: Revlimid $369 mln vs. $371.2 mln First Call Consensus; Thalomid $126.8 mln vs. $132.9 mln First Call Consensus; Vidaza $69.7 mln vs. $70.6 mln First Call Consensus; Alkeran $24.4 mln vs. $19.8 mln First Call Consensus.

7:34AM CONSOL Energy beats by $0.34, reports revs in-line (CNX) 28.94 : Reports Q4 (Dec) earnings of $0.97 per share, $0.34 better than the First Call consensus of $0.63; revenues rose 35.3% year/year to $1.24 bln vs the $1.24 bln consensus. Because of uncertainties surrounding the U.S. and global economies, CONSOL Energy plans to adopt a cautious approach to capital expenditures and cash management, and therefore is altering its usual practice of issuing annual capital expenditure and production projections. Co expects to limit capital spending in the early part of the year in order to retain the ability to adjust spending to prevailing economic conditions. Furthermore, co expects to continue expenditures on projects, such as overland belt projects or longwall face extensions. However, the CNX doesn't expect to commit the entire authorized capital budget for coal until it has a clearer understanding of the state of the economy and demand for coal.

7:18AM Dominion beats by $0.03, beats on revs; guides Q1 EPS below consensus; guides FY09 EPS in-line, FY10 above consensus (D) 35.69 : Reports Q4 (Dec) earnings of $0.72 per share, $0.03 better than the First Call consensus of $0.69; revenues rose 14.4% year/year to $4.17 bln vs the $3.51 bln consensus. Co issues downside guidance for Q1, sees EPS of $0.85-0.90 vs. $0.99 consensus. Co issues in-line guidance for FY09, sees EPS of $3.20-3.30 vs. $3.26 consensus. Sees 2010 EPS of $3.33-3.50 vs $3.31 consensus . Assuming a return to normal economic conditions, we expect to again grow operating earnings per share 6 percent or more annually beginning in 2011. The increase in fourth-quarter 2008 operating earnings is primarily attributable to lower outage costs at the company's generating units; a lower effective tax rate; lower operating and maintenance expenses at the regulated electric utility; and higher contributions from the company's merchant generation business. These positives were partially offset by the exclusion of Peoples Natural Gas and Hope Gas, Inc. from operating earnings beginning in 2008.

7:18AM L-3 Comms beats by $0.10, beats on revs; guides FY09 EPS below consensus, revs in-line (LLL) 79.83 : Reports Q4 (Dec) earnings of $2.04 per share, excluding non-recurring items, $0.10 better than the First Call consensus of $1.94; revenues rose 5.4% year/year to $4.01 bln vs the $3.87 bln consensus. Co issues mixed guidance for FY09, sees EPS of $7.12-7.32 vs. $7.41 consensus (previous range $7.30-7.50); sees FY09 revs of $15.5-15.7 bln vs. $15.65 bln consensus (previous range $15.4-15.7 bln). Co estimates FY09 operating margin at 10.4% vs previous estimate of 10.7%. Co records funded Q408 orders of $4.3 bn vs $3.8 bln in Q407. Funded backlog increased 21% to $11.6 bln at Dec. 31, 2008 from $9.6 bln at Dec. 31, 2007.

7:12AM Textron beats by $0.05, misses on revs; guides FY09 EPS below consensus, revs below consensus (TXT) 13.30 : Reports Q4 (Dec) earnings of $0.40 per share, excluding a number of special charges, $0.05 better than the First Call consensus of $0.35; revenues rose 0.4% year/year to $3.61 bln vs the $3.68 bln consensus. Co issues downside guidance for FY09, sees EPS of $1.00-1.50, excluding restructuring charges of ~$40 mln, vs. $2.39 consensus; sees FY09 revs of $12.50 bln vs. $13.63 bln consensus. Co says, "Economic conditions continued to weaken during the fourth quarter, significantly impacting our Industrial and TFC businesses; however, for the year, we had strong performance at Bell, Cessna and Textron Systems... Economic conditions continued to weaken during the fourth quarter, significantly impacting our Industrial and TFC businesses. However, for the year, we had strong performance at Bell, Cessna and Textron Systems. Combined backlog at Cessna, Bell and Textron Systems was $23.2 billion at the end of the fourth quarter, up $4.4 billion from the end of last year."

7:08AM Raytheon beats by $0.02, reports revs in-line; guides FY09 EPS in-line, revs in-line (RTN) 49.67 : Reports Q4 (Dec) earnings of $1.13 per share, excluding non-recurring items, $0.02 better than the First Call consensus of $1.11; revenues rose 2.6% year/year to $6.16 bln vs the $6.21 bln consensus. Co issues in-line guidance for FY09, sees EPS of $4.45-4.60, excluding non-recurring items, vs. $4.57 consensus; sees FY09 revs of $24.3-24.8 bln vs. $24.68 bln consensus (unchanged from 10/08 guidance). Co ended FY08 with a backlog of $38.9 bln, up 6% compared to $36.6 bln at end of 2007.

7:06AM Zimmer Hldgs reports EPS in-line, misses on revs; guides FY09 EPS below consensus (ZMH) 43.05 : Reports Q4 (Dec) earnings of $1.00 per share, in-line with the First Call consensus of $1.00; revenues fell 4.0% year/year to $1.03 bln vs the $1.09 bln consensus. Co issues downside guidance for FY09, sees EPS of $3.85-4.00 vs. $4.23 consensus. The Company expects full-year revenues for 2009 to increase between 1% and 3% on a constant currency basis, with revenues anticipated to be flat in the first half of the year and improving thereafter. Assuming foreign currency exchange rates remain near year-end 2008 levels, the Company estimates that foreign currency translation will reduce revenue by approximately 4% for the full year 2009. Adjusted diluted earnings per share are expected to show negative growth in the first three quarters with positive growth in the fourth quarter.

6:48AM AutoNation beats by $0.01, misses on revs (AN) 9.24 : Reports Q4 (Dec) earnings of $0.12 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.11; revenues fell 33.9% year/year to $2.74 bln vs the $3.06 bln consensus. Co said, "We agree with industry projections that the 2009 SAAR will be in the range of 11 million new vehicle units with obvious weakness in the first half of the year. In this environment, we believe we will be able to manage within all financial covenants." The Company also announced that it has obtained consents under its framework agreements with manufacturers in order to eliminate any potentially adverse consequences under such agreements in the event that ESL Investments, Inc., the Company's largest stockholder, were to acquire over 50% of the Company's common stock. ESL currently owns approximately 45% of the Company's outstanding common stock.

Earnings - 22nd Dec 2008

4:07PM Red Hat beats by $0.06, reports revs in-line (RHT) 11.93 -0.44 : Reports Q3 (Nov) earnings of $0.24 per share, excluding non-recurring items, $0.06 better than the First Call consensus of $0.18; revenues rose 22.1% year/year to $165.3 mln vs the $166.4 mln consensus.

11:57AM PPG Industries announces Q4 2008 earnings per share will likely be in the range of $0.35 to $0.45 vs $0.67 consensus (PPG) 39.58 -1.46 : Co issues downside guidance for Q4 (Dec), sees EPS of $0.35-0.45 vs. $0.67 First Call consensus. The lower level of expected earnings reflects the accelerating rate of decline in the global economy that has emerged in the fourth quarter 2008. "Market softness seen initially in the U.S. industrial markets is now prevalent on a global basis. Our businesses that serve these industrial end-markets are experiencing significant volume deterioration, as our customers react to lower consumer demand and tight credit markets by curtailing their production and reducing their inventory levels... As a result, in addition to the restructuring actions announced in September of this year, we have taken additional cost-reduction measures during the quarter, including lowering our operating rates and furloughing workers. We will continue to monitor economic activity levels as we enter the first quarter 2009 to determine what further cost-cutting actions may be warranted... PPG has redoubled its focus on cash in the fourth quarter, seasonally a stronger cash-flow quarter, as we are managing our working capital and capital spending aggressively," Hernandez said. "Currently, we have approximately $800 mln cash on hand, up about $300 mln from September 30, and our commercial paper borrowings total just over $200 mln."

10:06AM CVS Caremark confirms earnings guidance (CVS) 26.15 -0.74 : Co reaffirms guidance for FY08 (Dec), sees EPS of $2.42-2.47 vs. $2.44 First Call consensus. "There is no question that the economy continues to be difficult and consumers are reacting with increasing caution... Our total same store sales for October grew 4.3%, and in November were up 6.1%. It appears that December's comps will be well short of those levels. Nevertheless, through careful margin and cost management, we expect to be able to deliver results within our previously announced earnings range for 2008."

8:34AM Aaron Rents raises FY09 EPS guidance; reaffirms Q408 and FY08 EPS guidance (RNT) 28.66 : Co raises guidance for FY09 (Dec), sees EPS of $1.70-1.85 (previous $1.65-1.80) vs. $1.74 First Call consensus. "We expect same store revenues for the fourth quarter to increase 5% to 7% compared to the fourth quarter of 2007," Robert Loudermilk, CEO, commented. "Our earnings guidance for the fourth quarter and fiscal year 2008 is unchanged, with diluted EPS for the year expected to be in the range of $1.60 to $1.65, excluding gains from fourth quarter store sales and any gain or loss on the previous announced sale of the Aaron's Corporate Furnishings division." "We are altering our 2009 square footage growth plans somewhat, and expect to increase overall store growth next year approximately 5% to 9% over the store base at the end of 2008. This will be net store growth after opening a combination of Company-operated and franchised stores, less any opportunistic merging or disposition of stores. This rate of growth should allow us to improve margins as well as fund our expansion without the need to seek additional sources of capital. Due to the current strength of our business and our outlook for next year, we are increasing our earnings guidance for 2009 from previously expecting to achieve diluted earnings per share in the range of $1.65 to $1.80 to now expecting $1.70 to $1.85 per share."

8:03AM Walgreen misses by $0.05; cutting store opening rate (WAG) 26.08 : Reports Q1 (Nov) earnings of $0.41 per share, $0.05 worse than the First Call consensus of $0.46; revenues rose 6.6% year/year to $14.95 bln vs the $15.08 bln consensus. The company is also announcing plans to further reduce its organic store openings to a rate between 4.0 and 4.5 percent in 2010 and between 2.5 and 3.0 percent in 2011. This is a further reduction from plans announced last July to slow organic store openings to 5 percent by 2011. The company will continue to open new stores in strategic markets, on the best corners, and which offer the greatest rates of return. The new target growth rate will reduce capital expenditures through 2011 by approximately an additional $500 million beyond the $500 million capital expenditure savings announced last July.

7:39AM Dominion affirms 2008 guidance and lowers 2009 outlook (D) 34.98 : After the close, co reaffirmed guidance for FY08 (Dec), sees EPS of $3.10-3.15 vs. $3.12 First Call consensus. Co lowers guidance for FY09 (Dec), sees EPS of $3.20-3.30, down from $3.30-3.45, vs. $3.30 consensus.

7:36AM Steelcase reports Q3 (Nov) results; guides Q4 revs below consensus (SCS)5.73 : Reports Q3 (Nov) net of breakeven, includes a $27.5 million pre-tax charge related to a decrease in the cash surrender value of company-owned life insurance policies and $4.7 million of pre-tax restructuring costs, may not be comparable to the First Call consensus of $0.09; revenues fell 0.5% year/year to $881.3 mln vs the $805.2 mln consensus. Co issues guidance for Q4, sees EPS of ($0.04)-($0.10), ioncludes $9 mln charge, may not be comparable to $0.11 consensus; sees Q4 revs of $650-700 mln vs. $747.04 mln consensus.  Co said, "We believe that the slowing of the global economy and related uncertainty will lead to significant reduction in industry demand for the next several quarters... Accordingly, we have been preparing for a difficult year in fiscal 2010, but we believe the strength of our balance sheet will allow us to continue investing in growth initiatives that will further strengthen our leadership position coming out of this economic cycle."