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Dollar Financial (DLLR): Price cycling in bullish 'flag' consolidation

Dollar Financial Corporation (NASDAQ: DLLR) operates over 1,450 financially-oriented service stores in the U.S., Canada, Ireland and the U.K. Its customers are typically low to moderate income service sector earners, who don't use, or have access to banks. Services include check cashing, short-term consumer loans, money order/transfer products, reloadable debit cards, electronic tax filing, bill payment services and legal document processing. The company does business under the names Money Mart, Loan Mart, Insta-Cheques and Money Shop.

Dollar Financial pleased investors last week, when it reported fiscal Q4 EPS of 59 cents and revenues of $150.3 million. Analysts had been looking for 58 cents and $136.3 million. The CEO noted that fiscal 2008 brought record annual revenues and a record net income. Management also guided FY09 revenues to $595-$625 million, versus Street consensus of $586.28 million. JMP Securities subsequently reiterated its "market outperform" rating on the stock. Jefferies and Roth Capital reiterated their "buys".

Continue reading Dollar Financial (DLLR): Price cycling in bullish 'flag' consolidation

Take-Two takes analysts for a ride

Take-Two Interactive (NASDAQ: TTWO) is riding high on its Grand Theft Auto IV title. The popular game (big understatement) helped push the top-line during the third quarter to a better than 100% gain, coming in at $433 million. As for the bottom line, forget about it -- that was blown out of the water. On an adjusted basis, net income was 93 cents per share versus a loss of $0.62 in the year-ago period.

According to Briefing.com, this simply was far more than any analyst anticipated. The bottom line bested estimates by 39 cents! Most shareholders probably anticipated Take-Two going beyond Wall Street's expectations, but I'm not sure they thought that the publisher could pull such an order of magnitude off. Nevertheless, management believes that next quarter might not be as hot as first anticipated due to some timing issues. So they guided lower for Q4. This might explain, in part, the lack of excitement surrounding the stock at the close of the after-hours session on Thursday. The stock ended up with a 0.5% gain in price.

However, all is not lost. While Take-Two thinks Q4 might not be the best thing since sliced bread, it is confident that it will be able to go beyond the original outlook for the fiscal year. Take-Two says it will deliver between $2.08 and $2.12 in adjusted earnings per share for the year. Wall Street was counting on $1.81 per share for the fiscal year. With the stock trading around the $23 mark, this would imply that the shares could be cheap.

Continue reading Take-Two takes analysts for a ride

Kraft alters guidance, but I wouldn't worry

Food manufacturer Kraft (NYSE: KFT) is backing away from some previous earnings guidance. CEO Irene Rosenfeld said that 2008 net income should be, at the very least, $1.88 per share. This is $0.04 less than the original expectation of $1.92 per share. For 2009, the CEO thinks Kraft will deliver a minimum of $2 per share. Analysts were looking for $2.06 per share.

Should those who own shares of Kraft immediately put an order in to dump the stock? Well, shareholders know what is best for them and their specific situations, but if you want my opinion, I don't think Kraft is a sell.

For starters, that $1.88 per share figure represents an adjustment related to the sale of the Post cereal asset. It therefore doesn't bother me too much. And as for the 2009 estimate, Kraft's $2-per-share guidance includes a $0.03 charge for the Post-cereal exit and monies devoted to cost savings. Analyst estimates for the most part don't factor adjustments into their bottom-line figures. So, this guidance doesn't really frighten me.

What I think is more telling is the issue of margins. Consumer-products companies such as Hershey (NYSE: HSY), Procter & Gamble (NYSE: PG), Kellogg (NYSE: K) and PepsiCo (NYSE: PEP) all have margins on their corporate minds. From what I can tell, Kraft has been pretty successful at protecting itself from inflation by utilizing price increases.

Continue reading Kraft alters guidance, but I wouldn't worry

Esterline Technologies (ESL): Shares cycle in bullish 'flag'

Esterline Technologies (NYSE: ESL) is engaged in the design, manufacture, and marketing of engineered products and systems for applications in the aerospace and defense industries. The Avionics & Controls unit makes communications systems, medical equipment, and interface systems for aircraft and military vehicles. The Sensors & Systems operation manufactures temperature and pressure sensors, as well as fluid and motion control products. The Advanced Materials segment makes elastomer products, combustible ammunition components and electronic warfare countermeasures. Boeing (NYSE: BA) is a major customer. Eaton Corporation (NYSE: ETN) is a competitor.

The company surprised investors last week, when it reported Q3 EPS of 68 cents and revenues of $382.1 million. The Street had been expecting 64 cents and $374.6 million. Backlog at the end of the quarter was up 11.1% (yr/yr) to $1.06 billion. The CEO attributed success to robust aftermarket activity in both the commercial aerospace and defense markets. Management also guided FY08 EPS to $3.50-$3.60, versus consensus of $3.58.

Continue reading Esterline Technologies (ESL): Shares cycle in bullish 'flag'

Before the bell: Futures lower; WMT, BA, BP, TOL, MSFT, UL ...

Stock futures were lower this morning as oil rose back above $110 a barrel and investors awaited a barrage of economic data due today including weekly oil inventories. Other economic indicators include data on employment, manufacturing and productivity. Also, retailers will be announcing August same-store sales. Overall, sales are expected to rise 2%. Meanwhile, the Bank of England and the European Central Bank are deciding their interest rate policy today, where the ECB could tighten.

The first of the retailers has already reported August sales. Wal-Mart Stores Inc. (NYSE: WMT) said sales increased 3% in August, beating its forecast. Seems discounts drew shoppers. WMT shares are up over 1% in pre-market.

Unfortunately for Boeing (NYSE: BA), The International Machinists and Aerospace Workers union, which represents nearly 27,000 machinists, voted to strike as they rejected Boeing's contract offer. The union, however, postponed the strike by 48 hours as the two parties go to mediation. Boeing will likely suffer from a strike at a time it's struggling to stand by its Dreamliner obligations. BA stock is down over 1% in pre-market.

BP PLC (NYSE: BP) shares stand to rise after it finally reached an agreement with its billionaire Russian partners have over TNK-BP. While BP remains with a 50% holding in the venture, it has made many concessions, including agreeing to have the CEO Dudley leave. Shares are up over 2% in pre-market.

Continue reading Before the bell: Futures lower; WMT, BA, BP, TOL, MSFT, UL ...

Staples rises despite profit slip, Joy Global tumbles on profit surge

While less foot traffic and lower sales dragged down Staples Inc.'s (NASDAQ: SPLS) second-quarter profit, mining equipment maker Joy Global Inc.'s (NASDAQ: JOYG) fiscal third-quarter profit soared on strong demand for its products and services.

Staples, the world's largest office supply company, reported Wednesday that it earned $150.2 million, or 21 cents per share, down 16% from its year-ago profit. Sales jumped 18% to $5.07 billion, though same-store sales fell 7% in North America. Results were boosted by the acquisition of Dutch supply chain Corporate Express NV.

Analysts polled by Thomson Reuters had expected a profit of 21 cents per share on revenue of $4.69 billion.

Because of the slowing economy, the Framingham, Mass.-based company also forecast low single-digit earnings per share growth for the full year

Staples shares rose 41 cents, or 1.7%, Wednesday to $25.18. Shares are up 9.2% year to date.

Continue reading Staples rises despite profit slip, Joy Global tumbles on profit surge

MEMC Electronic Materials sinks after warning of weak chip demand

After the closing bell last night, silicon-wafer producer MEMC Electronic Materials (NYSE: WFR) offered a mid-quarter update that's sent the shares reeling into negative territory this morning. The report started auspiciously enough, as CEO Nabeel Gareeb noted that current production rates "could allow us to achieve results in the upper half of our targeted financial range" of $560 million to $620 million in revenue.

His comment seemed to indicate that MEMC might exceed analysts' expected revenue of $596.7 million, as reported by Thomson Financial. But Gareeb then tempered his optimism by adding, "However, there is increased softness in demand from semiconductor applications customers, primarily due to their inventory reduction initiatives. These elements warrant a continued degree of caution in our outlook, given the amount of time left in the quarter."

Additionally, MEMC warned that it expects operating expenses of approximately $43 million for the third quarter, up from its previous projection of $41 million. The increase is largely attributable to one-time, non-cash severance-related expenses.

Continue reading MEMC Electronic Materials sinks after warning of weak chip demand

Tiffany (TIF): Shares form bullish 'flag'

Tiffany & Co. (NYSE: TIF) is engaged in the design, manufacture, and retailing of fine jewelry, timepieces, sterling silverware, china, crystal, stationery, fragrances and personal accessories. The firm sells its goods exclusively through some 150 stores worldwide, a Web site and catalogs.

The company pleased investors last week, when it reported Q2 EPS of 63 cents and revenues of $732.4 million. Analysts had been expecting 55 cents and $720.6 million. Management also guided FY09 EPS to $2.82-$2.92 ($2.83 consensus). The CEO noted, "Our continued expansion throughout Asia and Europe should contribute to increasingly consistent and resilient long-term earnings growth." Lehman Brothers subsequently reiterated its "overweight" rating on the issue.

Continue reading Tiffany (TIF): Shares form bullish 'flag'

Before the bell: Stocks lower; KO, BA, LEH, CAG, ABK, COST ...

Stock futures were lower this morning as investors digested the decline in commodity prices and awaited a slew of economic readings. Data on employment, manufacturing and auto sales will be reported during the morning and throughout the day. At 2:00 p.m., the Federal Reserve's Beige Book, which gives an overall picture on the economy will be released.

Coca-Cola Co. (NYSE: KO) said it is offering $2.4 billion for China Huiyuan Juice Group Ltd., triple Huiyuan's market value. This is Coke's largest acquisition by value to date in China and gives the company a leg in the fast-growing and dynamic Chinese juice market. Coke also said that it expects to buy back a total of $1 billion of its stock for the full year.

The Boeing Co
.'s (NYSE: BA) workers are prepared to vote Wednesday. Union members are scheduled to cast two ballots: one regarding Boeing's latest offer, which union leaders are recommending to reject, and another on whether to begin a strike. Results of the vote are expected Wednesday night.

More information is coming out regarding Korea Development Bank interest in Lehman Brothers (NYSE: LEH). According to reports in The Chosun Ilbo, South Korea's largest mass-circulation daily, state-owned KDB has made a proposal to acquire 25% of U.S. Lehman for as much as 6 trillion won ($5.3 billion). HSBC Holdings (NYSE: HBC) and an unnamed Chinese bank are said to be vying with the KDB for the Lehman stake.

Continue reading Before the bell: Stocks lower; KO, BA, LEH, CAG, ABK, COST ...

Alliant Energy (LNT): Price defines bullish 'pennant'

Alliant Energy Corporation (NYSE: LNT) is a Midwestern U.S. energy utility, serving approximately one million electric and 400,000 natural gas customers through regulated subsidiaries Interstate Power and Light and Wisconsin Power and Light. Nonregulated operations include rail and marine transportation services, independent power production and real estate. Alliant also provides engineering, consulting, and management services. Xcel Energy (NYSE: XEL) is a major competitor.

The company pleased investors last month, when it reported Q2 EPS of 47 cents and revenues of $827.4 million. Analysts had been looking for 39 cents and $770 million. The CEO noted that Alliant had secured 500 megawatts of wind turbine generators during the quarter, expecting wind to play an integral part in meeting future customer needs. Management also guided FY08 EPS to $2.60-$2.80, versus Street consensus of $2.57.

Continue reading Alliant Energy (LNT): Price defines bullish 'pennant'

The week in preview: Have consumers turned to comfort food and used cars?

While the earnings crunch for this quarter is all but over, there is still plenty of action in the earnings arena this coming week. For instance, analysts surveyed by Thomson Financial are expecting America's Car Mart Inc. (NASDAQ: CRMT) and Campbell Soup Co. (NYSE: CPB) to be among this week's top earnings gainers.

Bentonville, Ark.-based America's Car Mart is expected to post net income of 38 cents per share (up 52.6% from the same period a year ago) on revenue of $73.8 million (up 25.8%). The used car dealer chain has tended in recent quarters toward positive surprises -- by 21 cents per share, or 73.5%, in the previous quarter. The long-term EPS growth forecast is 15%, about the same as the S&P 500. The consensus recommendation of analysts is to buy CRMT.

Campell is tentatively scheduled to report this week, and the world's biggest soup maker is expected to post net income of 25 cents per share (up 44.0% from a year ago) on revenue of $1.7 billion (up 7.5%). The Camden, N.J.-based company has just missed earnings estimates in the past three quarters. Its long-term EPS growth forecast is 7.5%, which is less than the industry average, but about the same as rivals Kraft Foods (NYSE: KFT) and Heinz (NYSE: HNZ). The analysts' consensus recommendation is currently to buy Campbell.

Other anticipated double-digit earnings gainers scheduled to report this week include brand name apparel maker Guess Inc. (NYSE: GES), mining equipment maker Joy Global (NASDAQ: JOYG), and chip maker National Semiconductor (NYSE: NSM). And Take-Two Interactive Software (NASDAQ: TTWO) is expected to swing to a profit.

Continue reading The week in preview: Have consumers turned to comfort food and used cars?

Earnings highlights: Dell, Sears, Tiffany, Talbots, Smithfield, TiVo, Rio Tinto and others

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Upcoming quarterly reports include Guess (NYSE: GES), Collective Brands (NYSE: PSS), H&R Block, (NYSE: HRB), Staples (NASDAQ: SPLS), Ciena (NASDAQ: CIEN), Toll Brothers (NYSE: TOL); and National Semiconductor (NASDAQ: NSM).

Visit AOL Money & Finance for more earnings coverage.

Once again: DELL is a sell

I have been following Dell (NASDAQ: DELL) since its 1988 IPO. No question, this was a mega-gamechanger company for years. The vision of Michael Dell creating this company from his University of Texas dorm room is inspiring. The dorm room became the new substitute for company creation as the Hewlett-Packard (NYSE: HPQ) garage served beforehand. Dell was a great American success story---but the key here is WAS.

Dell remains a sell. I wrote back in early 2007 that this company is doomed because of the total commoditization of its product line. Desk tops, laptops and servers were judged more by pricing than by functionality. Hewlett-Packard took market share away from Dell these past five years, and even the return of founder Michael Dell to the CEO role was not going to save this company.



Continue reading Once again: DELL is a sell

J. M. Smucker Company (SJM): Price defines bullish 'flag' consolidation

The J. M. Smucker Company (NYSE: SJM) is a leading North American maker of fruit spreads, peanut butter, shortening and oils, ice cream toppings, sweetened condensed milk, and health and natural foods beverages. Company brand names include Smucker's, Jif, Crisco, Eagle Brand, Hungry Jack, Laura Scudder and Robin Hood. The firm also markets Pillsbury, Pillsbury Doughboy, Carnation, Borden, and Elsie brand products under license. ConAgra Foods (NYSE: CAG) is a major competitor.

Smucker pleased investors earlier in the month, when it reported fiscal Q1 EPS of 82 cents and revenues of $663.7 million. Analysts had been looking for 77 cents and $647.2 million. Management also guided FY09 EPS to $3.45-$3.50 ($3.44 consensus) and FY09 revenues to $3.8-$4.0 billion ($3.86B consensus). The outlook figures take into account the previously announced purchase of Procter & Gamble's (NYSE: PG) Folgers coffee business.

Continue reading J. M. Smucker Company (SJM): Price defines bullish 'flag' consolidation

Sears (SHLD) sees another dismal quarter; Lampert sinking fast

Just as soon as Sears Holdings (NYSE: SHLD) re-arranged deck chairs on the Titanic, the retailer, headed by hedge-fund guru Eddie Lampert, reported another absolutely dismal quarter Thursday morning. In 2008, shares in Sears Holdings have sunk 36% as the retailer continued to report quarter after quarter of sluggish sales, declining revenue and underinvestment in its retail locations.

Lampert's idea of cutting investment in stores to boost actual investment returns has failed, and failed miserably. One thing customers respond to is constant change in their shopping environment, and this is where Sears has failed. Its stores look the exact same as they did four years ago. Even the logo has not changed.

Retailers like Target Corp. (NYSE: TGT) and Wal-Mart Stores, Inc. (NYSE: WMT) apparently know way better how to get seasonal and high-request goods to their stores. They do it in a fashion that turns inventory and makes sales far better than Sears' manages with its current grip on retail. In fact, I am not sure Sears even has a current grip of retail. It's a goldfish (albeit a large one) nearing the top of the fishbowl. With Lampert's track record, one would think he would have made changes a year ago. He has not, and Sears continues to flounder badly. The Wall Street Journal thinks Lampert should go, and go now. What do you think?

Even Lampert's acumen in taking out pieces of an investment and selling for a profit hasn't worked out. What about selling off a good portion of its real estate holdings under the combined Sears/KMart umbrella to help make a profit? Even that time has passed though. Lampert's original prediction for Sears Holdings has failed, and unfortunately he won't be adding this experiment to his resume that includes the years-ago notion that he was the next Warren Buffett.

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Last updated: September 05, 2008: 04:59 PM

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