JDfn Daily Digest - August 20, 2008
The Mortgage Bankers Association said mortgage application volume fell last week to its lowest levels in more than six years. The fall in application volume is the latest sign of a struggling housing market.
For the first time in decades, the increasing cost of steel is forcing Toyota Motor Corp (TM) into considering raising prices in Japan without a model makeover. The speculation is Toyota may be forced to announce higher prices in Japan -- a move even Toyota acknowledges could be critically damaging for an already sluggish Japanese market.
American Airlines (AMR) has launched an Internet connection service for passengers who want to check their email, access their company's intranet or simply surf the Web through their Wi-Fi enabled devices while flying. The service, called Go-Go, will charge customers $12.95 for full access to the Internet on flights longer than three hours. American didn't provide a revenue estimate for the service.
Nokia Corp. (NOK) announced that it will cut around 200 jobs in its services and software division as part of a revamp of its global research and development activities. The group said it aims to find alternative work for as many of the employees as possible within Nokia.
A unit of defense contractor L-3 Communications Holdings Inc. (LLL) received a $60.6 million contract from the Navy to build and deliver four outer wing assemblies for the P-3 aircraft. L-3 is expected to complete work on the deal by June 2010.
Wyndham Worldwide Corp. (WYN) has signed an agreement with Green Hospitality Management Co. of Tokyo to open nine hotels in Japan during the next five years under its Ramada and Days Inn brands. The hotels are to be developed and managed the Japanese company, which operates 500 Japanese and Chinese specialty restaurants and 14 hotels.
Scheduled U.S. Economic Reports (Thursday)
Initial Jobless Claims (week of August 16th), Philly Fed Index (Aug), Leading Indicators (July)
In Earnings News
Hewlett-Packard (HPQ) said its profit for the quarter jumped 14 percent, beating Wall Street's expectations on strong laptop sales and a robust international presence. Excluding one-time charges, HP's profit was 86 cents per share, three cents higher than the consensus estimate.
BJs Wholesale Club (BJ) earned $36.5 million, or 61 cents per share, in the quarter. That's up from $36.3 million, or 55 cents per share, in the year-ago period. Analysts were expecting BJ's to earn 57 cents per share on revenues of $2.67 billion.
Ross Stores (ROST) said its second-quarter profit rose to $71.3 million, or 54 cents a share. Sales rose to $1.64 billion from $1.44 billion. Ross was forecast to earn 52 cents a share in the second quarter.
American Woodmark Corp. (AMWD) reported its fiscal first-quarter net profit fell 97% to $156,000, or a penny a share, from $5.1 million, or 34 cents a share, a year ago. Net sales in the quarter declined 16% to $139.2 million. The group said its margins were hit by rising fuel prices and the cost of raw materials.
Suntech Power Holdings Co. Ltd. (STP) said its second-quarter profit climbed 58 percent, as production capacity increased and demand and currency exchanges led to greater sales. The company's profit rose to $65.2 million, or 38 cents per American Depositary Share, from $41.3 million, or 25 cents per share a year ago.
Scheduled Earnings Reports (Thursday)
Barnes & Noble, Hormel Foods, Foot Locker, Intuit, Burger King, HJ Heinz, Shoe Carnival, The Gap, Books A Million
Stocks in the News
General Motors Corp. (GM) has announced it is extending the benefits of its employee discount to customers on nearly all of its 2008 vehicles and some 2009 models.
Monsanto (MON) said it will sell its bovine-drug unit to Eli Lilly and Co. for an upfront payment of $300 million plus "additional contingent consideration.
Tower Semiconductor (TSEM) reported that its second-quarter net loss narrowed slightly to $31.3 million or 25 cents a share, from $34.1 million, or 28 cents a share, a year earlier.
VeriFone Holdings Inc (PAY) expects results to surpass analysts' estimates for the rest of the fiscal year.
Fannie Mae (FNM) and Freddie Mac (FRE) struggle with continuing credit losses, their ability to raise needed capital is uncertain. Analysts say it is also complicated by the possibility of a government bailout of the two companies.
Myriad Genetics Inc (MYGN) reported a net profit of $65.5 million, or $1.40 a share, in its fiscal fourth-quarter.
WellCare Health Plans (WCG) settled a Medicaid fraud investigation saying it will pay $35.2M.
Mesa Air Group (MESA) said it swung to a third-quarter net loss of $3.6 million, or 14 cents as share, from a profit of $2.6 million, or 8 cents a share, in the year-earlier quarter.
BP Plc (BP) said that testing will begin on the closed Baku-Tbilisi-Ceyhan oil pipeline, which runs through conflict-riddled Georgia.
Medtronic (MDT) reported a slight gain in first-quarter earnings as the medical-products maker felt the effects of a staff cutback earlier this year and increasing sales of drug-coated stents.
For the first time in decades, the increasing cost of steel is forcing Toyota Motor Corp (TM) into considering raising prices in Japan without a model makeover. The speculation is Toyota may be forced to announce higher prices in Japan -- a move even Toyota acknowledges could be critically damaging for an already sluggish Japanese market.
American Airlines (AMR) has launched an Internet connection service for passengers who want to check their email, access their company's intranet or simply surf the Web through their Wi-Fi enabled devices while flying. The service, called Go-Go, will charge customers $12.95 for full access to the Internet on flights longer than three hours. American didn't provide a revenue estimate for the service.
Nokia Corp. (NOK) announced that it will cut around 200 jobs in its services and software division as part of a revamp of its global research and development activities. The group said it aims to find alternative work for as many of the employees as possible within Nokia.
A unit of defense contractor L-3 Communications Holdings Inc. (LLL) received a $60.6 million contract from the Navy to build and deliver four outer wing assemblies for the P-3 aircraft. L-3 is expected to complete work on the deal by June 2010.
Wyndham Worldwide Corp. (WYN) has signed an agreement with Green Hospitality Management Co. of Tokyo to open nine hotels in Japan during the next five years under its Ramada and Days Inn brands. The hotels are to be developed and managed the Japanese company, which operates 500 Japanese and Chinese specialty restaurants and 14 hotels.
Scheduled U.S. Economic Reports (Thursday)
Initial Jobless Claims (week of August 16th), Philly Fed Index (Aug), Leading Indicators (July)
In Earnings News
Hewlett-Packard (HPQ) said its profit for the quarter jumped 14 percent, beating Wall Street's expectations on strong laptop sales and a robust international presence. Excluding one-time charges, HP's profit was 86 cents per share, three cents higher than the consensus estimate.
BJs Wholesale Club (BJ) earned $36.5 million, or 61 cents per share, in the quarter. That's up from $36.3 million, or 55 cents per share, in the year-ago period. Analysts were expecting BJ's to earn 57 cents per share on revenues of $2.67 billion.
Ross Stores (ROST) said its second-quarter profit rose to $71.3 million, or 54 cents a share. Sales rose to $1.64 billion from $1.44 billion. Ross was forecast to earn 52 cents a share in the second quarter.
American Woodmark Corp. (AMWD) reported its fiscal first-quarter net profit fell 97% to $156,000, or a penny a share, from $5.1 million, or 34 cents a share, a year ago. Net sales in the quarter declined 16% to $139.2 million. The group said its margins were hit by rising fuel prices and the cost of raw materials.
Suntech Power Holdings Co. Ltd. (STP) said its second-quarter profit climbed 58 percent, as production capacity increased and demand and currency exchanges led to greater sales. The company's profit rose to $65.2 million, or 38 cents per American Depositary Share, from $41.3 million, or 25 cents per share a year ago.
Scheduled Earnings Reports (Thursday)
Barnes & Noble, Hormel Foods, Foot Locker, Intuit, Burger King, HJ Heinz, Shoe Carnival, The Gap, Books A Million
Stocks in the News
General Motors Corp. (GM) has announced it is extending the benefits of its employee discount to customers on nearly all of its 2008 vehicles and some 2009 models.
Monsanto (MON) said it will sell its bovine-drug unit to Eli Lilly and Co. for an upfront payment of $300 million plus "additional contingent consideration.
Tower Semiconductor (TSEM) reported that its second-quarter net loss narrowed slightly to $31.3 million or 25 cents a share, from $34.1 million, or 28 cents a share, a year earlier.
VeriFone Holdings Inc (PAY) expects results to surpass analysts' estimates for the rest of the fiscal year.
Fannie Mae (FNM) and Freddie Mac (FRE) struggle with continuing credit losses, their ability to raise needed capital is uncertain. Analysts say it is also complicated by the possibility of a government bailout of the two companies.
Myriad Genetics Inc (MYGN) reported a net profit of $65.5 million, or $1.40 a share, in its fiscal fourth-quarter.
WellCare Health Plans (WCG) settled a Medicaid fraud investigation saying it will pay $35.2M.
Mesa Air Group (MESA) said it swung to a third-quarter net loss of $3.6 million, or 14 cents as share, from a profit of $2.6 million, or 8 cents a share, in the year-earlier quarter.
BP Plc (BP) said that testing will begin on the closed Baku-Tbilisi-Ceyhan oil pipeline, which runs through conflict-riddled Georgia.
Medtronic (MDT) reported a slight gain in first-quarter earnings as the medical-products maker felt the effects of a staff cutback earlier this year and increasing sales of drug-coated stents.
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