• Economy surges back to growth. Stocks logged their best one-day gain in three months on Thursday after the U.S. economy returned to growth in Q3. The government's first estimate of GDP showed the economy expanded at an annual rate of 3.5%, the first growth quarter in more than a year, and well ahead of Street estimates of 3%, sending Treasury prices and the dollar lower as traders exited safe havens. As recently as last week economists had called for a 3.3% gain, but they pared their estimates in the past couple days after week durable goods sales data came up short. "The economy has emerged with gusto from the deepest recession since WWII," one economist said. "The short-term prospects for the economy remain good."
• Private sector must lead the way - Geithner. The return to GDP growth is encouraging but the recovery is still fragile, Treasury Secretary Timothy Geithner said at a Q&A session Thursday evening following yesterday's Q3 GDP announcement. "The number today was really encouraging... it was broad and strong and it wasn't just cash-for-clunkers and it wasn't just economic stimulus... but it's important to remember that it's very early," he said. Geithner stressed that a robust recovery would have to be led by the private sector, saying the U.S. can't borrow-and-spend its way to health.
• Repsol strikes again. Repsol (REP), long derided as the oil company with no oil, will today announce a "fairly sizeable" discovery in the Gulf of Mexico's Shenzi field that it says will help reduce U.S. dependence on foreign oil. Today's discovery comes on top of big finds in Brazil and West Africa, and leaves Repsol with the unexpected challenge of developing a sudden surge in oil and gas resources. "We've had some success in exploration," CEO Antonio Brufau said.
• CIT, Goldman adjust $3B credit line. CIT Group (CIT) reached an agreement with Goldman Sachs (GS) to amend a $3B loan facility, ending their dispute over a $1B "make whole" payment CIT would have owed Goldman if it files for bankruptcy. Goldman will reduce the loan size to $2.13B, wiping out the unused portion of the facility, for which CIT will pay Goldman a $285M penalty, and post an additional $250M of collateral. The announcement, made in an 8-K filing, comes two days after CIT raised an additional $4.5B to bolster its restructuring.
• Rio Tinto doubles capex. A confident Rio Tinto (RTP) doubled its planned 2010 capital spend to at least $5B after it cut debt and saw signs of economic recovery. Rio had planned to cut capex to $2.5B - just enough to sustain current mines. "We will continue our program of cost reduction and debt repayments, but our renewed strength enables us to focus on disciplined capital expenditure on premier growth options," CEO Tom Albanese said. Rio, the world's #3 mining group, said it had cut its debt by 42% so far this year to $22.3B. (statement)
• EDF/Constellation deal at risk. State-owned nuclear power operator EDF is facing pressure from the French government to abandon its $4.5B deal to buy 49.9% of Constellation Energy Group's (CEG) nuclear assets and build four reactors with the U.S. company. "For us, the priority strategy for EDF is indeed in Europe, notably the U.K. and Italy, and everything outside Europe is less essential to EDF's expansion," an unnamed government official said.
• Credit crunch continues. Loan defaults by small and medium-sized U.S. businesses rose in September to 0.85% from 0.81% in August, according to risk management firm PayNet, but accounts in moderate (30 days plus) and severe (90 days plus) delinquency decreased to 4.22% (from 4.35%) and 1.4% (from 1.48%) respectively, the lowest since January. PayNet's Small Business Lending Index, which measures the volume of financing, is down 22% from a year ago, a sign lenders remain reluctant to extend credit to small and medium-sized businesses. "It's hard to imagine a robust recovery when you see numbers like this," PayNet founder Bill Phelan said.
• BoJ holds steady. The Bank of Japan left its key rate unchanged at 0.1%, but said it would discontinue its corporate bond and commercial paper purchase program at the end of December, as scheduled - "given that issuing conditions in the CP and corporate bond markets have been improving markedly, and thus the purpose of the purchases to restore market functioning has been achieved." Still, the BoJ stressed that this doesn't signal the beginning of its exit strategy, and extended its special lending facility to provide three-month funds at 0.1% until the end of March. Remarking on the decision to scrap its corporate funding support, Japan's PM Yukio Hatoyama remarked that it's hard to be as optimistic as the BoJ. (statement)
• House Energy and Commerce Committee OKs consumer agency. A second House panel voted Thursday to create a Consumer Financial Protection Agency to oversee mortgages, credit cards and other financial products, with a full House vote expected in November. The House bill falls short of the administration's original proposal, exempting auto dealers, credit, mortgage and title insurers and banks with less than $10B in assets, among others - exceptions some worry will weaken the agency's power.
• Sands gets OK for $2-3B IPO. Sources say Las Vegas Sands (LVS) has received approval from the Hong Kong stock exchange for a $2-3B IPO of its Macau unit. Sands will kick off pre-marketing next week, and launch its roadshow on Nov. 9, with a trading debut set for the end of November. Goldman Sachs (GS), Citigroup (C) and UBS (UBS) are coordinating. LVS rose 12% Thursday after posting a surprise Q3 profit; shares are up another 12% premarket.
• Junk bond rally becomes self-fulfilling. Demand for junk bonds hit record highs last week, with investors pouring another $207M into junk bond funds, pushing YTD inflows to a record $27.8B. Junk bond indexes are up more than 50% YTD, as investors become more comfortable with risk. The growing cash flow enables shaky companies to head off default - adding more fuel to the rally.
• AIG won't sell Japan units. AIG (AIG) says it will not sell its two Japanese insurers, AIG Edison Life Insurance and AIG Star Life Insurance, reversing its decision from a year ago at the height of the crisis. AIG said in a statement it now believes it would improve its corporate value to keep the two Japanese units, which have a very firm financial base and strong sales network.
• Energy IPO runs out of steam. Former Enron unit AEI, which operates power and gas distribution lines in Latin America, canceled its IPO Thursday hours after it slashed the size of the deal by two-thirds in the face of weak demand. The IPO, managed by Goldman Sachs (GS), Credit Suisse (CS), Citigroup (C) and JPMorgan (JPM), is the first U.S.-listed IPO this year to be withdrawn after an attempt to price the offering. AEI faulted market conditions for the withdrawal, but analysts say its debt load, risk exposure and expected payout to its private-equity owners also raised concerns.
• ChiNext soars on debut. China's Nasdaq-lookalike ChiNext stock market launched trading Friday with strong gains. An initial 28 companies listed, and shares gained 46-123% from their IPO prices, in line with expectations. The listees priced their IPOs at a hefty 56x 2008 earnings.

Earnings: Fri. Before Open

• Alcatel-Lucent (ALU): Q3 net loss of €182M vs. -€174.4M consensus. Sales of €3.69B (-9.3%) vs. €3.88B consensus. Says it has achieved 80% of its goal to reduce annual expenses by €750M. Shares -2.9% premarket. (PR)
• Ameren (AEE): Q3 EPS of $1.16 beats by $0.13. Revenue of $1.82B (-11.9%) vs. $2.1B. (PR)
• American Axle & Manufacturing (AXL): Q3 EPS of -$0.18 beats by $0.20. Revenue of $410M (-22.4%) vs. $420M. Shares -1.4% premarket. (PR)
• Aon (AOC): Q3 EPS of $0.65 misses by $0.01. Revenue of $1.81B (-2.1%) in-line. (PR)
• Apartment Investment and Management Company (AIV): Q3 FFO of -$0.35 in-line. Revenue of $319M (-7.3%) vs. $313M. (PR)
• Arch Coal (ACI): Q3 EPS of $0.16 beats by $0.12. Revenue of $615M (-20.1%) vs. $605M. Shares +3.9% premarket. (PR)
• Chevron (CVX): Q3 EPS of $1.72 beats by $0.25. Revenue of $46.63B (-40.9%) vs. $47.84B. "In our downstream operations, we continued to experience weak margins on the sale of gasoline and other refined products. Weak demand and plentiful supply affected all our major markets." Shares +0.7% premarket. (PR)
• CMS Energy (CMS): Q3 EPS of $0.32 misses by $0.02. (PR)
• Constellation Energy Group (CEG): Q3 EPS of $1.23 beats by $0.16. Revenue of $4.03B vs. $4.48B. Sees full-year EPS of $3.25-3.45 vs. consensus of $3.10. (PR)
• Coventry Health Care (CVH): Q3 EPS of $0.68 beats by $0.14. Revenue of $3.44B (+17.7%) in-line. Shares +2.4% premarket. (PR)
• Cummins (CMI): Q3 EPS of $0.56 beats by $0.19. Revenue of $2.53B (-31.5%) in-line. “While we saw improvement in some markets in the third quarter, we expect the economic climate to remain challenging until late 2010 - especially in the U.S. and Europe.” (PR)
• Dominion Resources (D): Q3 EPS of $0.99 beats by $0.09. Revenue of $3.65B (-16.4%) vs. $3.94B. Sees Q4 EPS of $0.55-0.65 vs. $0.67. (PR)
• Duke Energy (DUK): Q3 EPS of $0.40 beats by $0.02. Revenue of $3.4B (-3.2%) vs. $3.8B. "Industrial sales volumes continued to show signs of stabilization." (PR)
• Estee Lauder (EL): FQ1 EPS of $0.85 beats by $0.51. Revenue of $1.83B (-3.7%) in-line. Shares +4.5% premarket. (PR)
• ITT Industries (ITT): Q3 EPS of $1.03 beats by $0.13. Revenue of $2.7B (-6.3%) in-line. (PR)
• NYSE Euronext (NYX): Q3 EPS of $0.53 beats by $0.07. Revenue of $1.05B (-9.6%) in-line. Announces equity investment in its U.S. futures exchange by Citadel, GETCO, Goldman Sachs (GS), Morgan Stanley (MS) and UBS (UBS), with NYX to remain largest shareholder. (PR I, II)
• Penske Auto Group (PAG): Q3 EPS of $0.34 beats by $0.06. Revenue of $2.59B (-12.9%) in-line. Shares (PR)
• Progress Energy (PGN): Q3 EPS of $1.22 beats by $0.03. Revenue of $2.82B (+4.7%) in-line. (PR)
• Regency Centers (REG): Q3 FFO of $0.69 in-line. (PR)
• Simon Property Group (SPG): Q3 FFO of $1.38 beats by $0.06. Revenue of $925M (-1.1%) vs. $892M. Shares -0.4% premarket. (PR)
• Sony (SNE): FQ2 net loss of ¥26.3B ($287.5M) vs. consensus of -¥40.4B. Revenue of ¥1.66T (-20%). Sees full-year net loss of ¥95B, up from a previous forecast of -¥120B and -¥98.9B last year. Sees sales -5.6%, unchanged. (PR)
• Tim Hortons (THI): Q3 EPS of C$0.34 misses by C$0.12. Revenue of C$564M (+10.7%) vs. C$552M. (PR)
• Ultra Petroleum (UPL): Q3 EPS of $0.57 beats by $0.05. Revenue of $155M (-47.8%) vs. $239M. (PR)
• Weyerhaeuser (WY): Q3 EPS of -$0.26 beats by $0.19. Revenue of $1.41B (-33.2%) in-line. (PR)

Earnings: Thur. After Close

• AllianceBernstein (AB): Q3 EPS of $0.67 beats by $0.22. Revenue of $806M (-5%) vs. $737M. AUM down 16% Y/Y to $498B. Shares +3.8% AH. (PR)
• Bally Technologies (BYI): FQ1 EPS of $0.53 in-line. Revenue of $197M (-17%) vs. $206M. Shares +0.6% AH. (PR)
• BMC Software (BMC): FQ2 EPS of $0.66 beats by $0.08. Revenue of $462M (-1%) vs. $463M. Raises full-year EPS guidance to $2.55-2.65 vs. $2.51. Shares +1.8% AH. (PR)
• Callaway Golf Company (ELY): Q3 EPS of -$0.25 misses by $0.01. Revenue of $191M (-11%) in-line. Sees full-year EPS of -$0.30 to -$0.35, vs. -$0.21. (PR)
• Cliffs Natural Resources (CLF): Q3 EPS of $0.45 may not compare to estimate of -$0.07. Revenue of $666M (-44%) vs. $535M. Shares +4.5% AH. (PR)
• DTE Energy Company (DTE): Q3 EPS of $0.96 misses by $0.03. Revenue of $2B (-16%) vs. $2.1B. Sees full-year EPS of $2.75-3.05 vs. $3.19. Shares -7.7% AH. (PR)
• Eldorado Gold (EGO): Q3 EPS of $0.08 beats by $0.01. Revenue of $82M (-20.3%) vs. $85M. Shares +0.7% AH. (PR)
• Genworth Financial (GNW): Q3 net income available to common shareholders of $0.04 beats by $0.06. Revenue of $2.4B (+10%) vs. $2.5B. Shares +9.7% AH. (PR)
• Hertz Global Holdings (HTZ): Q3 EPS of $0.15 misses by $0.09. Revenue of $2B (-16%) in-line. Raises full-year EPS guidance to $0.21-0.23 from $0.12-0.15, vs. $0.20. Shares +2.9% AH. (PR)
• Human Genome Sciences (HGSI): Q3 EPS of -$0.32 misses by $0.01. Revenue of $19M (+61%) vs. $24M. Shares +0.9% AH. (PR)
• Ingram Micro (IM): Q3 EPS of $0.25 beats by $0.05. Revenue of $7.4B (-11%) vs. $6.7B. Shares +2.4% AH. (PR)
• KLA-Tencor (KLAC): FQ1 EPS of $0.15 beats by $0.13. Revenue of $343M (-36%) vs. $332M. Shares +0.8% AH. (PR)
• Las Vegas Sands (LVS): Q3 EPS of $0.03 beats by $0.04. Revenue of $1.1B (+3%) in-line. Shares +8.4% AH. (PR)
• Manitowoc (MTW): Q3 EPS of -$0.04 misses by $0.12. Revenue of $882M (-20%) vs. $934M. Shares -7.2% AH. (PR)
• Maxim Integrated Products (MXIM): FQ1 EPS of $0.13 beats by $0.01. Revenue of $449M (-12%) vs. $438M. Shares -4% AH. (PR)
• McAfee (MFE): Q3 EPS of $0.62 beats by $0.01. Revenue of $485M (+19%) vs. $487M. Shares -5.8% AH. (PR)
• MetLife (MET): Q3 EPS of $0.87 in-line. Revenue of $12.4B (-1%) vs. $12.3B. Shares -2.3% AH. (PR)
• Mohawk Industries (MHK): Q3 EPS of $0.64 beats by $0.08. Revenue of $1.4B (-22%) in-line. Sees Q4 EPS of $0.28-0.38 vs. $0.45. Shares -5.3% AH. (PR)
• PEPCO Holdings (POM): Q3 EPS of $0.44 beats by $0.01. Revenue of $2.5B (-17%) vs. $2.9B. (PR)
• PerkinElmer (PKI): Q3 EPS of $0.30 beats by $0.03. Revenue of $437M (-9%) vs. $430M. Sees full-year EPS of $1.23-1.26 vs. $1.22. (PR)
• RealNetworks (RNWK): Q3 EPS of $0.00 beats by $0.06. Revenue of $140M (-8%) vs. $141M. (PR)
• Regal Entertainment Group (RGC): Q3 EPS of $0.05 misses by $0.02. Revenue of $674M (-11%) vs. $702M. Shares +0.3% AH. (PR)
• SBA Communications (SBAC): Q3 EPS of -$0.43 misses by $0.17. Revenue of $139M (+17%) in-line. Sees 2010 sales of $512M-532M vs. $604M. Shares -1.3% AH. (PR)
• Southwestern Energy Company (SWN): Q3 EPS of $0.34 in-line. Revenue of $503M (-26%) vs. $387M. Shares +0.2% AH. (PR)
• Standard Pacific (SPF): Q3 EPS of -$0.01 beats by $0.06. Revenue of $327M (-18%) vs. $285M. Shares +3.4% AH. (PR)
• Varian Medical Systems (VAR): FQ4 EPS of $0.78 beats by $0.04. Revenue of $642M (+8%) vs. $593M. Sees Q4 EPS of $0.52-0.56 vs. $0.60, and full-year EPS of $2.65-2.75 vs. $2.61. Shares -2.3% AH. (PR)

Today's Markets

Overseas markets were mixed Friday, with strong gains in Japan and China, but some weakness in Europe early on. Futures have moved lower overnight.

Q3 2009 Earnings Call Transcript

October 29, 2009 5:00 pm ET

PerkinElmer

Guidance

Analysts are looking for EPS of 27c on revenue of $429.7M. The consensus range is 24c-29c for EPS, and $420.7M-$440.7M for revenue, according to First Call. Positive drivers for the quarter may include revenue growth in research related consumables and food safety items. Negative trends for PerkinElmer could come from instrument sales which have been struggling in an environment of reduced hospital spending.

Duke University is studying the use of cord blood transplants in babies while still in the womb, in order to treat various metabolic disorders. The U.S. Food and Drug Administration has given approval for clinical trials.

Cord blood is blood that comes from umbilical cords, and contains a large amount of hematopoietic stem cells. Specialized cord blood banks are available to store this blood. Cord blood stem cells are considered far superior to stem cells from bone marrow. Many parents have their newborn's cord blood preserved in the event it may be needed at some point in the future for treatment of their child's or the child's sibling's cancer or genetic disease. Close to a hundred diseases have been treated with cord blood. For a lot more detail on cord blood and how it is collected, stored, and used, go to CordBloodStocks.com.

China biopharma is very different from its western counterparts, and for foreigners, its high rate of change further complicates the difficulty of understanding the sector (see story). That was the common theme that ran through four presentations at this week’s ChinaBio Workshop, “Leveraging China to Build a Global Biotech.” Each of the four presenters used their expertise to shed light on one facet of the world of China biopharma.

The purpose of the Workshop was to provide an overview of China biopharma. But for companies already involved in the sector, last week served as a time to solidify their relationships with cross-border deals.

PerkinElmer, Inc. (NYSE: PKI) completed the acquisition of SYM-BIO Lifescience, a Shanghai company that produces diagnostic instruments and their reagents. The price was $63.7 million (435 million RMB), paid in cash.

The acquisition is a very good fit with PerkinElmer’s existing business. SYM-BIO Lifescience is a major supplier of diagnostics to China hospitals, with an emphasis on infectious diseases. This is complimentary to PerkinElmer’s portfolio of diagnostic devices, which specializes in prenatal and newborn screening. Also SYM-BIO Lifescience has access to double the number of hospitals currently served by PerkinElmer, giving it the opportunity to expand its prenatal/newborn business. The acquisition brings with it diagnostics manufacturing and R&D facilities in China, which PerkinsElmer can use to expand its capacity.

• Bank bonus bonanza. The bonuses paid out to executives at nine banks that received government bailouts exceeded the net income of some of the banks, according to New York Attorney General Andrew Cuomo, substantially so at Goldman Sachs (GS), Morgan Stanley (MS) and JPMorgan Chase (JPM). Cuomo said employee pay "has become unmoored from the banks' financial performance," and that there is "no clear rhyme or reason to the way banks compensate and reward their employees." Even during what was arguably one of Wall Street's worst years in memory, nearly 5,000 bankers and traders received a bonus above $1M. (Read Cuomo's report (.pdf))
• Uncertain future for bank pay bill. Following the release of Cuomo's damning bonus report (see above), the House of Representatives will likely approve a bill requiring regulators to ban compensation practices that encourage 'inappropriate risks.' The Senate, however, and the White House are less enthusiastic about the measure, concerned it may give regulators too great a say on incentive pay.
• Cash for clunkers grinds to a halt. The government has suspended its 'cash for clunkers' program just six days after it started. Meant to encourage new car purchases, the $1B program turned out to be far more popular than expected and has already run through its entire budget, blowing away lawmakers' estimates that the funds would last until November. Lawmakers are pushing for additional funding to help meet the program's larger-than-expected demand.
• Ford stalls Volvo bidding. Ford has reportedly slowed down the bidding process for Volvo in an attempt to secure a better price for the unit. Ford apparently plans to wait until the sale of General Motors' Opel unit is complete, and will then invite the losing bidder to make a bid for Volvo, so nothing is likely to happen for another three to four weeks.
• Troubled banks protest. Regulators have escalated the number of banks put on probation with so-called memorandums of understanding. At least 285 banks have received memorandums so far this year, compared to 399 for all of last year. Some of the targeted banks are complaining that the regulators are being too harsh, since the memorandums of understanding can force banks to increase their capital, overhaul management or take other major steps, but regulators say a tougher stance now could prevent failure later on.
• Southwest wants to reach new frontiers. Southwest Airlines (LUV) unexpectedly bid $113.6M in a bankruptcy-court auction for smaller carrier Frontier Airline Holdings, potentially setting the stage for a bidding war with Republic Airways Holdings, a holding company for three regional airlines which bid $108.75M. If Southwest is successful, it will boost its presence in the highly-competitive Denver market and give the airline its first international destinations, but will also raise questions about Southwest's ability to stick to its low-cost business model.
• Pre, iPhone probe to focus on skipped markets. A probe into wireless phone contracts will focus on markets where Apple's (AAPL) iPhone and Palm's (PALM) Pre are unavailable, with Julius Genachowski, the chairman of the Federal Communications Commission, asking whether such lack of availability is "consistent with broad consumer interests." The FCC will also investigate whether competition is hindered by exclusive agreements between phone makers and service providers.
• No magic for Disney. Disney (DIS) failed to impress when it reported quarterly earnings yesterday (see details below), missing revenue expectations and narrowly beating earnings expectations on heavy cost-cutting. CEO Bob Iger told analysts that the company sees "signs of economic stabilization, but the pace and strength of the recovery remain uncertain." (Read Disney's earnings call transcript)
• Delphi set to exit Ch. 11. Delphi won court approval to sell its assets to lenders and General Motors. The auto-parts supplier is now set to exit bankruptcy protection after nearly four years.
• Jobless claims rise. Initial Jobless Claims came in at 584K, up 25K from a week ago (revised), and worse than the 575K consensus. Continuing claims fell 54K to 6.197M.

Earnings: Friday Before Open

• American Electric Power Company (AEP): Q2 EPS of $0.68 beats by $0.07. Revenue of $3.2B (-8.6%) vs. $3.63B. (PR)
• Anglo American (AAUK): H1 net profit of $2.97B (-30.6%), well outpacing consensus of $859M. Revenue of $11.13B vs. $17.92B a year ago. Says it "expects demand to remain soft in the near term until developed countries begin economic recovery." (DJ)
• AutoNation (AN): Q2 EPS of $0.29 beats by $0.05. Revenue of $2.61B (-28.8%) vs. $2.8B. "Having weathered the storm, AutoNation remains in an excellent position to capitalize on dealer consolidation and the gradual recovery in industry volumes." (PR)
• Calpine (CPN): Q2 EPS of -$0.16 vs. consensus of +$0.18. Revenue of $1.47B (-48%) vs. $1.72B. (PR)
• Constellation Energy Group (CEG): Q2 EPS of $1.08 beats by $0.32. Revenue of $3.86B (-18.8%) vs. $3.57B. Sees full-year EPS of $3.10-3.30 vs. $3.01 consensus. (PR)
• ITT Industries (ITT): Q2 EPS of $1.06 beats by $0.26. Revenue of $2.78B (-9.3%) in-line. Sees full-year EPS of $3.50-3.70 vs. $3.44 consensus. (PR)
• Snap-On (SNA): Q2 EPS of $0.65 beats by $0.07. Revenue of $590M (-23%) in-line. (PR)
• Total (TOT): Q2 net profit of €2.17B, less than half of €4.73B last year. Adjusted profit of €1.72B (-54%), in line with consensus. Sales of €31.43B (-35%). European refining margins narrowed 69% from a year ago. (DJ)

Earnings: Thursday After Close

• ARIAD Pharmaceuticals (ARIA): Q2 EPS of -$0.24 beats by $0.01. Licensing and collaboration revenue of $2.1M. (PR)
• Ariba (ARBA): FQ3 EPS of $0.17 beats by $0.01. Revenue of $84M (-1%) in-line. (PR)
• Arris Group (ARRS): Q2 EPS of $0.27 beats by $0.05. Revenue of $279M (-1%) vs. $281M. (PR)
• BioMarin Pharmaceutical (BMRN): Q2 EPS of $0.09 beats by $0.10. Revenue of $83M (+29%) vs. $78M. (PR)
• Camden Property Trust (CPT): Q2 FFO of $0.78 beats by $0.03. Revenue of $157M (+1%) vs. $141M. (PR)
• Community Health Systems (CYH): Q2 EPS of $0.66 beats by $0.06. Revenue of $3B (+13%) in-line. (PR)
• Disney (DIS): FQ3 EPS of $0.52 beats by $0.01. Revenue of $8.6B (-7%) vs. $8.8B. (PR)
• DryShips (DRYS): Q2 EPS of $0.25 beats by $0.04. Revenue of $210M (-30%) vs. $204M. (PR)
• DTE Energy Company (DTE): Q2 EPS of $0.56 beats by $0.41. Revenue of $1.7B (-25%) vs. $2B. (PR)
• Dun & Bradstreet (DNB): Q2 EPS of $1.21 in-line. Revenue of $417M (+1%) vs. $425M. Issues downside full-year EPS guidance, to up 1-5% from up 9-12%. Lowers full-year revenue guidance to -1% to +1%, from +2-5%. (PR)
• Evergreen Solar (ESLR): Q2 EPS of -$0.11 misses by $0.03. Revenue of $64M (+180%) vs. $63M. (PR)
• Exelixis (EXEL): Q2 EPS of -$0.42 misses by $0.01. Revenue of $27.4M (-10%) vs. $33.4M. (PR)
• First Solar (FSLR): Q2 EPS of $2.11 beats by $0.49. Revenue of $526M (+97%) vs. $459M. (PR)
• Genworth Financial (GNW): Q2 EPS of -$0.11 misses by $0.27. Revenue of $2.5B (+4%) vs. $2.6B. (PR)
• Geron (GERN): Q2 EPS of -$0.23 misses by $0.04. Revenue of $183,000 (-8%) vs. $800,000. (PR)
• Harmonic (HLIT): Q2 EPS of $0.03 in-line. Revenue of $81M (-9%) vs. $75M. (PR)
• HLTH Corp. (HLTH): Q2 EPS of $0.04 beats by $0.08. Revenue of $99M (+15%) in-line. (PR)
• Ingram Micro (IM): Q2 EPS of $0.15 misses by $0.05. Revenue of $6.6B (-25%) vs. $6.7B. (PR)
• Las Vegas Sands (LVS): Q2 EPS of $0.01 beats by $0.02. Revenue of $1.1B (-5%) in-line. (PR)
• McAfee (MFE): Q2 EPS of $0.60 beats by $0.03. Revenue of $469M (+18%) vs. $467M. (PR)
• MetLife (MET): Q2 EPS of $0.88 beats by $0.20. Revenue of $8.4B (+4%) vs. $11.7B. (PR)
• Mohawk Industries (MHK): Q2 EPS of $0.67 beats by $0.20. Revenue of $1.4B (-24%) in-line. Ex-restructuring charge EPS of $0.79. (PR)
• Monster Worldwide (MWW): Q2 EPS of $0.03 beats by $0.02. Revenue of $223M (-37%) vs. $225M. (PR)
• PDL BioPharma (PDLI): Q2 EPS of $0.47 beats by $0.04. Revenue of $126M (+18%) vs. $124M. Sees full-year revenue of $310M-325M vs. $331M. (PR)
• PerkinElmer (PKI): Q2 EPS of $0.28 beats by $0.01. Revenue of $435M (-14%) vs. $460M. Sees full-year EPS of $1.18-1.22 vs. $1.27. (PR)
• Pitney Bowes (PBI): Q2 EPS of $0.55 misses by $0.05. Revenue of $1.38B (-13%) vs. $1.43B. Sees full-year EPS of $2.15-2.35 vs. $2.46. (PR)
• Silver Wheaton (SLW): Q2 EPS of $0.06 misses by $0.01. Revenue of $41M (-17%) vs. $53M. (PR)
• Southwestern Energy Company (SWN): Q2 EPS of $0.35 in-line. Revenue of $478M (-21%) vs. $387M. Cuts full-year production view to 278-288 Bcfe from 289-292 Bcfe. (PR)
• Stone Energy (SGY): Q2 EPS of $0.65 beats by $0.48. Revenue of $263M (-35%) vs. $129M. (PR)
• Synaptics (SYNA): FQ4 EPS of $0.47 beats by $0.03. Revenue of $115M (+19%) vs. $112M. Announces retirement of CEO Francis Lee, succeeded by Thomas Tiernan. (PR)
• Varian Semiconductor Equipment Associates (VSEA): FQ3 EPS of -$0.20 beats by $0.05. Revenue of $73M (-60%) vs. $69M. (PR)
• Vistaprint (VPRT): FQ4 EPS of $0.43 beats by $0.04. Revenue of $135M (+22%) vs. $128M. Sees Q1 EPS of $0.32-0.35 vs. $0.40. (PR)
• Weingarten Realty Investors (WRI): Q2 FFO of $0.61 beats by $0.11. Revenue of $147M (-4%) vs. $144M. (PR)
• YRC Worldwide (YRCW): Q2 EPS of -$3.53 misses by $1.82. Revenue of $1.3B (-45%) vs. $1.6B. (PR)

Today's Markets

Asia markets were broadly higher Friday, Europe is mixed, and futures are up from yesterday's close.

Q2 2009 Earnings Call

July 30, 2009 05:00 PM ET

PerkinElmer

Guidance

Analysts are looking for EPS of 27c on revenue of $459M. The consensus range is 24c-31c for EPS, and $435.43M-$476M for revenue, according to First Call. Positive drivers for this quarters results could come from food safety related sales, while the instrument sales division could be slower as a result of the economic slowdown and cutbacks at hospitals. In late April, the company predicted FY09 EPS would be down mid-single digits and revenue down flat to mid-single digits.

Cord blood has been in the news a lot recently. A Florida hospital is waiving the fee for the donation of cord blood. Five cord blood transfer centers in Spain have joined a study for the treatment of lymphoma and leukemia. And a cord blood bank in Texas has added Midland Memorial Hospital to is collection network.

Cord blood is blood that comes from umbilical cords, and contains an extensive amount of hematopoietic stem cells. The blood is kept in depositories called blood banks. Cord blood stem cells are considered far superior to stem cells from bone marrow. Many parents have their newborn's cord blood preserved in the event it may be needed at some point in the future for treatment of their child's or the child's sibling's cancer or genetic disease. Over 75 diseases have been treated with cord blood. For a lot more detail on cord blood and how it is collected, stored, and used, go to CordBloodStocks.com.

• Chrysler goes bankrupt. It's official - Chrysler has filed for Chapter 11 bankruptcy protection, and announced a deal with Fiat giving the Italian carmaker an initial 20% stake. Obama thanked everyone from unions to executives for fighting to keep the automaker alive, and blamed 'a small group of speculators' for making bankruptcy inevitable. The plan now is for Chrysler to leave bankruptcy protection in a month or two with a lighter balance sheet, new management, fewer dealers, lower labor costs, a Fiat alliance and possibly even a new name.
• Cramdowns get voted down. The Senate rejected an amendment that would have given bankruptcy judges the ability to ease a homeowner's monthly payments and stave off foreclosure. Cramdown fans said the amendment would have helped keep millions of Americans in their homes, but critics argued the plan's arbitrary rules would scare off investors and prolong the housing slump. The defeat of the cramdown bill in the Senate came as the House voted to cap the fees credit card companies can charge.
• Citi's Nikko sale. Citigroup reached a deal to sell Nikko Cordial Securities to Sumitomo Mitsui Financial (SMFJY.PK) for around ¥774.5B ($7.9B), ending Citi's ambitions to create a full-service bank in Japan. The deal will turn Sumitomo Mitsui into a major player in Japan's securities industry. The deal will create an accounting loss for Citigroup, but will raise its tangible common equity, an important move in light of the capital shortfall identified by stress tests.
• Cuomo pension probe widens. New York Attorney General Andrew Cuomo is expanding his probe of pension-fund kickbacks, saying the probe has exposed "a national network of actors" whose schemes are ongoing, and has charged a money manager with making illegal payments to a political consultant in exchange for investment business. The charge is at least the fifth since Cuomo's investigation began.
• BoA board wants Lewis to stay. Bank of America (BAC) directors showed continued support of CEO Ken Lewis despite outside pressure to accelerate a search for his replacement. The subject of succession didn't come up during a board meeting Wednesday, or during recent conversations with regulators. However, the board's continued public support for Lewis will likely raise tensions with angry shareholders who already voted Lewis out of the chairman position. Separately, lawmakers will likely call for hearings on the involvement of the Treasury and Federal Reserve in Bank of America's acquisition of Merrill Lynch.
• Stress test results delayed. The Federal Reserve postponed the release of banks' stress test results while bank executives argue with regulators over the tests' preliminary findings. Originally scheduled for publication May 4, the results likely won't be published until the end of next week.
• UBS demurs on tax case disclosures. Responding to the U.S. lawsuit on tax evasion, UBS said revealing the names of 52,000 U.S. customers would violate Swiss criminal law prohibiting such disclosures and trample on Swiss sovereignty. According to UBS' filing, the disclosure request also violates tax treaties between the U.S. and Switzerland, and is "fundamentally an issue for diplomats, not litigators."
• Fed eyes TALF terms. The Federal Reserve is reportedly preparing to announce new terms for TALF to help revive the commercial real estate market. The Fed will likely roll out new loans with five-year terms to better match the need of investors in commercial mortgage-backed securities, up from the current three-year loan terms.
• AmEx cut to junk. S&P downgraded American Express' (AXP) credit rating amid concerns about the company's long term liquidity. Its counterparty credit rating was cut by two notches to BBB+, while its preferred stock rating was cut to junk territory with a three-notch drop to BB. Further downgrades are possible.
• Disney does the Hulu. Disney (DIS) joined up with video site Hulu (GE, NWS) and will distribute films from Walt Disney Studios and programs from ABC and the Disney Channel through the site. The deal marks a shift in strategy for Disney, which will cede some control over the distribution of its programming in exchange for an equity stake, and brings together three of the biggest broadcast and cable network owners under the same banner. GE's NBC Universal, News. Corp and Disney will each hold roughly a 27.5% stake in the venture.
• Hasbro, Discovery build kids' network. Hasbro (HAS) and Discovery Communications (DISCA) have teamed up to launch a children's entertainment network in 2010. The new network will replace the Discovery Kids network in around 60M homes, and will help Hasbro transform itself into an entertainment company as toys face increased competition from videogames, the internet, movies and TV.
• Personal income falls. U.S. consumer spending fell in April together with incomes. Personal Income fell 0.3% ($34.4B) in March, while disposable income decreased less than 0.1% ($1.8B). Personal consumption expenditures (PCE) declined 0.2% ($24.2B).
• Employment costs rise. Employment costs rose a record low 0.3% in Q1, in-line with consensus. Over the past year, employment costs have risen a record low 2.1%.
• Jobless claims better than consensus. Initial jobless claims were 631K, down from last week's 645K (revised) and better than consensus of 640K. Continuing claims rose 133K to 6.27M.
• Business conditions improve (.pdf). Business conditions in the Chicago area surged to their best reading in seven months, according to the NAPM Chicago Business Barometer. Varied "general comments" included "Record setting Federal debt will harm economic recovery," and "Small business lending is picking up..."

Earnings: Friday Before Open

• American Axle & Manufacturing (AXL): Q1 EPS of -$0.37 beats by $0.18. Revenue of $402M (-31.5%) vs. $427M. (PR)
• Aon (AOC): Q1 EPS of $0.76 misses by $0.12. Revenue of $1.85B (-2.7%) vs. $2.08B. (PR)
• Apartment Investment and Management Company (AIV): Q1 FFO of $0.42 beats by $0.08. Revenue of $349M (+0.4%) vs. $311M. Sees Q2 FFO of $0.37-0.43 vs. $0.44, and full-year FFO of $1.65-1.95 vs. $1.65. (PR)
• Brookfield Properties (BPO): Q1 EPS of $0.32 misses by $0.03. Revenue of $592M (-9.1%) vs. $533M. (PR)
• Chevron (CVX): Q1 EPS of $0.92 beats by $0.11. Revenue of $36.13M vs. $21.14M. Shares +0.4% premarket. (PR)
• Clorox (CLX): FQ3 EPS of $1.17 beats by $0.27. Revenue of $1.35B (-0.2%) in-line. Sees full-year EPS of $4.00-4.15 vs. $4.21, and sales growth of 3-4% vs. a previous 3-5%. Shares +1.6% premarket. (PR)
• Cott (COT): Q1 EPS of $0.28 vs. consensus of -$0.07. Revenue of $367M vs. $377M. (PR)
• Dean Foods (DF): Q1 EPS of $0.52 beats by $0.10. Revenue of $2.7B (-12.2%) vs. $2.9B. "We have significant momentum in our business with an exceptionally strong first quarter behind us and indications of a solid start to the second quarter." (PR)
• Domtar (UFS): Q1 EPS of -$0.07 misses by $0.03. Revenue of $1.39B (+1.3%) vs. $1.39B. "The rapid decline of paper volumes in recent months has been abating." (PR)
• DryShips (DRYS): Q1 EPS of $0.36 beats by $0.17. Revenue of $197M (-15.3%) in-line. Shares +15.3% premarket. (PR)
• FLIR Systems (FLIR): Q1 EPS of $0.35 beats by $0.05. Revenue of $272M (+14.8%) vs. $277M. Full-year guidance in-line. (PR)
• Fortune Brands (FO): Q1 EPS of $0.30 beats by $0.08. Revenue of $1.44B (-20.3%) in-line. (PR)
• James River Coal (JRCC): Q1 EPS of $1.03 beats by $0.22. Revenue of $192M (+39%) vs. $193M. (PR)
• MasterCard (MA): Q1 EPS of $2.80 beats by $0.19. Revenue of $1.16B (-2.2%) vs. $1.21B. Gross dollar volume and purchase volume up 0.3%. Transactions up 5.8%. Shares +1.9% premarket. (PR)
• NiSource (NI): Q1 EPS of $0.62 in-line. Revenue of $2.72B (-17.2%) vs. $2.66B. (PR)
• PPL Corp. (PPL): Q1 EPS of $0.60 beats by $0.14. Revenue of $2.36B (+54.6%) vs. $1.69B. (PR)
• Simon Property Group (SPG): Q1 FFO of $1.61 beats by $0.13. Revenue of $918.5M (+2.6%) vs. $886M. Says it raised $1.6B in Q1. Shares -0.2% AH. (PR)
• TECO Energy (TE): Q1 EPS of $0.16 beats by $0.01. Revenue of $824M vs. $764M. Shares (PR)

Earnings: Thursday After Close

• Ariba (ARBA): FQ2 EPS of $0.15 beats by $0.01. Revenue of $84.7M (+5.2%) vs. $85M. Shares +5.1% AH. (PR)
• Chiquita (CQB): Q1 EPS of $0.49 beats by $0.21. Revenue of $842M (-9.9%) vs. $910M. "While Q1 results were better than expected... the company's full-year expectations remain the same." Shares +14.4% AH. (PR)
• Curtiss-Wright (CW): Q1 EPS of $0.35 beats by $0.01. Revenue of $424M (-2.2%) vs. $420M. Reaffirms full-year guidance. (PR)
• DENTSPLY International (XRAY): Q1 EPS of $0.43 in-line. Revenue of $507M (-9.6%) vs. $524M. (PR)
• Evergreen Solar (ESLR): Q1 EPS of -$0.40 vs. consensus of -$0.08. Revenue of $55.8M (+26.2%) vs. $49.2M. Shares -14% AH. (PR)
• Hartford Financial (HIG): Q1 EPS of -$3.77 misses by $0.72. Sees full-year EPS of $0.05-0.45 vs. $0.98 consensus. Book value per share down 57% to $24.15. Net unrealized investment losses $6.9B, up from $6.8B in Q4. Shares -12.6% AH. (PR)
• Ingram Micro (IM): Q1 EPS of $0.23 beats by $0.10. Revenue of $6.75B (-21.4%) in-line. "With the recession now affecting all regions, we do not expect a pick-up in sales for several more months, perhaps for the remainder of the year. However, we don't feel the market getting worse at this stage..." Shares +3.3% AH. (PR)
• Manitowoc (MTW): Q1 EPS of $0.18 beats by $0.05. Revenue of $1.03B (+4%) in-line. Shares -2.5% AH. (PR)
• McAfee (MFE): Q1 EPS of $0.54 beats by $0.06. Revenue of $448M (+21.1%) in-line. Q2 guidance in-line. Shares +3.9% AH. (PR)
• MetLife (MET): Q1 EPS of $0.20 misses by $0.14. Revenue of $10.22B (-12.%) vs. $11.93B. Net realized investment losses of $618M. Shares -3.8% AH. (PR)
• Monster Worldwide (MWW): Q1 EPS of $0.00 beats by $0.11. Revenue of $254M (-30.6%) in-line. Shares -4% AH. (PR)
• PerkinElmer (PKI): Q1 EPS of $0.26 beats by $0.06. Revenue of $432M (-5.9%) vs. $411M. Shares flat AH. (PR)
• Republic Services (RSG): Q1 EPS of $0.35 beats by $0.05. Revenue of $2.06B (+164.4%) in-line. (PR)
• QLogic (QLGC): FQ4 EPS of $0.20 misses by $0.01. Revenue of $130.5M (-18.3%) vs. $135M. Shares -3.2% AH. (PR)

Today's Markets

Japan moved higher Friday. London was lower. Elsewhere markets were closed. Volume in overnight futures is unusually low.

Q1 2009 Earnings Call

April 30, 2009 5:00 pm ET

If you want to try the stock trading technique called 'Buying Dividends,' which is the technique of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend, there are many stocks to choose from. This technique generally works only in bull markets.

When you buy dividends, there are many stocks in many different sectors to choose from. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks.

• NY AG mulls bonus pullback. Sources say New York Attorney General Andrew Cuomo may demand the return of $4B in early bonuses paid to Merrill Lynch employees just before being acquired by Bank of America (BAC). The AG's office is also looking into how much BoA CEO Ken Lewis knew about the accelerated bonuses, whether the companies' shareholders had all the necessary information about Merrill's finances and whether federal bailout loans to BoA were used properly. "No longer will this country stand for wasteful spending of tax dollars on bonuses for executives whose companies have taken huge losses and required taxpayer bailouts," Cuomo said. Obama echoed the sentiment, calling Wall Street bonuses 'shameful' and 'the height of irresponsibility.'
• Pfizer's pull-out fee. Two days after Pfizer (PFE) announced its plans to buy Wyeth (WYE) for $68B, Pfizer shares are trading near a 12-year low. Perhaps, as one analyst put it, it's because "people seem underwhelmed by the deal, maybe thinking Pfizer made a safe move with Wyeth rather than trying to shoot the lights out with a more aggressive company better able to produce blockbuster drugs." Pfizer is moving forward with the deal full-force, and has committed to paying Wyeth $4.5B as a breakup fee if the lenders pull out of the deal. The lenders could choose to act if Pfizer's operations or credit rating decline significantly. Wyeth will have to pay $2B if it drops the deal to accept a higher bid from a different company.
• Fannie tries for fewer foreclosures. Fannie Mae (FNM) has reached an agreement with former critic Neighborhood Assistance Corp. of America to help prevent foreclosures by modifying home loans. Bruce Mark, CEO of NACA, had previously called Fannie a 'major roadblock' to foreclosure-prevention efforts, but is now working to reach a similar agreement with Freddie Mac (FRE). NACA, which serves as an intermediary between borrowers and lenders and works with such major lenders as Bank of America (BAC) and Wells Fargo (WFC), helped modify over 20,000 mortgages last year.
• Madoff transfers. Bank of New York Mellon (BK) will transfer $301.4M to Irving Picard, the trustee liquidating Madoff's brokerage, and JPMorgan Chase (JPM) will transfer $233.5M. In exchange, the banks will be indemnified against any claims brought as a result of the transfers. The move is part of Picard's efforts to gather assets to be returned to defrauded investors.
• Roche lowers DNA bid. Roche Holding (RHHBY.PK) lowered its bid price for the 44.2% of Genentech (DNA) it doesn't already own to $86.50 per share from $89 per share, and will take the offer directly to shareholders within two weeks. Genentech had previously rejected Roche's $89/share offer as too low, and though the new bid is lower, it still marks a 2.9% premium on Genentech's recent closing price. A full takeover would allow Roche to cut costs, boost earnings and expand in the U.S. market.
• Amazon profit beat. Amazon (AMZN) reported better-than-expected earnings yesterday (see details below), showing a 9% growth in Q4 profits and 18% growth in sales. The growth has much to do with Amazon's strategy of aggressive discounting, free shipping offers and continued product expansion at a time when most other retailers are scaling back, and CEO Jeff Bezos cited heavy demand for Amazon's Kindle electronic reader. Amazon also forecast strong sales for the current quarter.
• Toshiba tossed by global recession. Toshiba (TOSBF.PK) fell the most in 34 years in Japanese trading after the company forecast its largest ever annual loss. Facing an industry glut and falling prices as the global economic downturn worsens, Toshiba's net loss will probably reach ¥280B ($3.1B) in the fiscal year ending March 31 vs. earlier estimates of a ¥70B net income. To save ¥300B in the next fiscal year, the company is delaying construction of new factories, firing temporary workers, slashing output and cutting research spending. In light of the lower earnings outlook and the possibility Toshiba might have to seek equity financing, Goldman Sachs cut its rating to Sell from Neutral. Shares -17.4% in Japan.
• Dell smartphone? Dell (DELL) may move into the smartphone market as soon as next month, sources say, as a way to boost sales while its core PC business gets hit by the recession. At least one of Dell's models includes a touchscreen and no physical keyboard, like the iPhone (AAPL), while another has a keypad that slides out from beneath the screen. Going up against Apple and Research in Motion (RIMM) in the smartphone market would be a bold move, one that Dell has yet to confirm. "We haven't committed to anything," said one spokesman.
• Japan's recession deepens. Japan's recession showed signs of deepening Friday, with closely watched industrial production plunging 9.6% in December, the second straight month of record decline, and projections of steep drops continuing into 2009. "I've never seen such a steep production fall," Economy Minister Kaoru Yosano said. Meanwhile, joblessness rose to 4.4% from 3.9%, and household spending fell by 4.6%. On Thursday, the government said Japan's economy entered a recession in November 2007, meaning it's been in recession for 14 months. Japan's recent expansion was fueled by exports, and economists say its current recession is being driven by the global downturn rather than domestic factors.
• The Shedlock-Schiff Affair: A Chronicle. Popular econoblogger Michael "Mish" Shedlock triggered a firestorm this week when he took down outspoken investment advisor Peter Schiff, claiming that although Schiff may have been right about the U.S. economy imploding, clients who had invested in his funds in the hopes of profiting from his prophecies had seen their accounts decimated. Big Picture author Barry Ritholtz predicted Shedlock's post would set off fireworks "via a major media outlet." He was right. Today, WSJ's Right Forecast by Schiff, Wrong Plan? does exactly that. "Peter Schiff predicted a collapse of the U.S. financial system. The bust-up he didn't foresee was the one that made mincemeat of investors who took his advice in 2008." Meanwhile, Schiff responds, saying that "the crisis is just beginning and the movements thus far in the dollar, commodities, and foreign stocks, are mere head fakes. Once the speculators have been flushed from the markets, the underlying long-term trends I have been following should return in earnest."
• More joblessness. Initial jobless claims remained elevated, with 588,000 this week after last week's (revised) 585,000 - vs. consensus of 575,000. Continuing claims +66.5K to 4.63M.
• Durables drop. Durable Goods Orders -2.6% in December, worse than the 2% drop expected. November's numbers were revised to -3.7% from -1%. Ex-transport: -3.6% vs. -2.7% consensus. It's the fifth consecutive monthly decrease. Inventories +0.4% to $343.5B, the highest on record, and up 17 of the last 18 months.
• Fewer new home sales. New home sales in December fell 14.7% to 331,000 from Nov. - well short of the 397,000 consensus. November was revised to 388,000 from 407,000. Median price $206,500 vs. $246,900 a year ago. Total new home sales for 2008: 482K down 37.8% from 776K last year.

Earnings: Friday Before Open

• AMETEK (AME): Q4 EPS of $0.66 in-line. Revenue of $624M (+6.9%) vs. $660M. Sees Q1 EPS of $0.54-0.58 vs. $0.59. (PR)
• Cemex (CX): Q4 revenue of $4.5B vs. $4.79B consensus. Majority net loss of $707M vs. +$538M a year ago. (PR)
• Honeywell (HON): Q4 EPS of $0.97 in-line. Revenue of $8.71B (-6.1%) vs. $8.97B. Reaffirms 2009 guidance. (PR)
• Honda (HMC): FQ3 net profit sagged 90% to ¥20.24B vs. consensus of ¥19.75B. Operating profit of ¥102B down from ¥276B a year ago. Sales of ¥2.533T (-17%). Lowers full-year net profit outlook to ¥80B from ¥185B. Shares -9.2% in Tokyo. (DJ)

Earnings: Thursday After Close

• Amazon.com (AMZN): Q4 EPS of $0.52 beats by $0.13. Revenue of $6.7B (+18.2%) vs. $6.44B. "We're particularly grateful for the unusually strong demand for Kindle in the fourth quarter." (PR)
• Ariba (ARBA): FQ1 EPS of $0.21 beats by $0.08. Revenue of $86.1M (+11.8%) vs. $86.8M. (PR)
• Broadcom (BRCM): Q4 EPS of $0.08 misses by $0.19. Revenue of $1.13B (+9.7%) vs. $1.07B. Sees Q1 revenue of $800-875M vs. $953M. (PR)
• CA Inc. (CA): FQ3 EPS of $0.43 beats by $0.05. Revenue of $1.04B (-5.3%) vs. $1.07B. While customers are closely scrutinizing all IT investments, we are seeing considerable interest in our enterprise software as it enables them to increase the effectiveness and cost efficiency of their IT infrastructures..." (PR)
• Chubb (CB): Q4 EPS of $1.58 beats by $0.06. Revenue of $M in-line. Sees 2009 EPS of $4.80-5.20 vs. $5.62. "We are encouraged by the improved rate environment in the fourth quarter... and there are good reasons to believe that this trend will continue into 2009." (PR)
• Eastman Chemical Company (EMN): Q4 EPS of $0.05 misses by $0.30. Revenue of $1.35B (-22.5%) vs. $1.4B. "Capacity utilization likely reached its lowest point in December. We anticipate that our capacity utilization will improve through the first quarter due to a modest increase in demand." (PR)
• Juniper Networks (JNPR): Q4 EPS of $0.321 in-line. Revenue of $923M (+14.1%) vs. $936M. (PR)
• KLA-Tencor (KLAC): FQ2 EPS of -$0.12 misses by $0.06. Revenue of $397M (-37.6%) vs. $394M. (PR)
• Monster Worldwide (MWW): Q4 EPS of $0.27 in-line. Revenue of $291M vs. $312M. (PR)
• PerkinElmer (PKI): Q4 EPS of $0.48 beats by $0.06. Revenue of $495M (+3%) vs. $516M. (PR)
• PMC-Sierra (PMCS): Q4 EPS of $0.07 misses by $0.01. Revenue of $120.8M (-2.3%) vs. $119.7M. (PR)
• Rambus (RMBS): Q4 EPS of -$0.10 beats by $0.13. Revenue of $37.6M (-7.2%) vs. $29.9M. (PR)
• SunPower (SPWRA): Q4 EPS of $0.70 beats by $0.13. Revenue of $401M (+78.7%) vs. $397M. "Long-term solar market fundamentals remain in place and we are encouraged by the commitment to renewable energy by President Obama and Congressional leadership." (PR)
• Varian Medical Systems (VAR): FQ1 EPS of $0.56 beats by $0.05. Revenue of $509M (+12.8%) vs. $501M. Sees FQ2 EPS of $0.59-0.62 vs. $0.64. (PR)

Today's Markets

• Asia markets closed mixed Friday. Nikkei -3.1% to 7,994. Hang Seng +0.9% to 13,278. Shanghai closed. BSE +2% to 9,424.
• Europe is lower at midday. London -0.45%. Paris -1.1%. Frankfurt -1.1%.
• U.S. futures have moved back into negative territory. Dow -0.3% to 8086. S&P -0.4% to 839.50. Nasdaq -0.35%. Crude +0.8% to $41.77. Gold +1.7% to $920.50.
• 30-year Treasurys -0.2%. 10-year +0.11%. 5-year +0.04%. 2-year +0.03%.

Friday's Economic Calendar

• 8:30 GDP Q4 Advance
  8:30 Employment Cost Index
  9:45 NAPM Chicago Business Barometer
  9:55 University of Michigan Consumer Sentiment
  3:00 PM Farm Prices
• Notable earnings before Friday's open: ACI, AME, AXL, CVX, GCI, HON, IVZ, PCAR, PG, SPG, XOM
• Notable earnings after Friday's close: none.

Seeking Alpha editor Eli Hoffmann contributed to this post.

Q4 2008 Earnings Call

January 29, 2009 5:00 pm ET

PerkinElmer

Guidance

Analysts are expecting a profit of 42c on revenue of $516M. The consensus range for EPS is 41c-45c with a revenue range of $497M-$534M, according to First Call. For Q3, the company reported EPS 37c vs. consensus of 36c and revenue $505.1M vs. consensus of $503.11M. Positive contributors for this quarter could come from strength in the Life and Analytical Sciences segment and from from acquisitions.The main negative potential for Q4 is a spending cut-back from hospitals.

Landauer (LDR) has had one heck of a run. In the last 52 weeks, the stock is up 41%, and considering this market, that is really saying something. From everything we are looking at, this small-to mid-cap ($684 million market cap) has done a wonderful job of growing sales and earnings in an incredibly difficult market. But when we look at the current sales and earnings numbers (despite how stellar they are), we just have to rate LDR as overvalued at this point.

Take a look at the scatter plot [click to enlarge], which outlines where LDR falls against its peers in the last quarter. The Y-axis demonstrates the 13-week return for each company, and the X-axis is where we rate their valuation. Amazingly, every one of the competitors for LDR (as defined by Google Finance) is located in the bottom right quadrant signaling a loss but improving valuation, while LDR is all alone in the top left quadrant signaling a gain, but deteriorating valuation.

Investors occasionally use a stock trading technique called 'Buying Dividends,' which is the technique of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets.

If you are interested in buying dividends, there are many stocks in many different industries to choose from. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks.

Mid-October short interest numbers were recently released, so we now have a full picture of how much short interest was impacted by the SEC's financial "no short" rule that was in place from 9/19 to 10/8.  Overall, the average stock in the S&P 500 saw its short interest fall 16%.  The average S&P 500 financial stock saw short interest fall 24%. 

Below we highlight the stocks with the biggest one-month decreases and increases in short interest.  As shown, many financials saw short interest fall more than 50%.  Interestingly, MetLife (MET) saw its short interest fall 80% over the last month, while Aflac's (AFL) short interest increased 300%.

Q3 FY08 Earnings Call

October 23, 2008, 5:00 PM ET