Continue reading Before the bell: Stocks to climb; MS, WB, WM, WFC, FDX, LYG, ORCL, GOOG, MSFT ...

Before the bell: Stocks to climb; MS, WB, WM, WFC, FDX, LYG, ORCL, GOOG, MSFT ... originally appeared on BloggingStocks on Thu, 18 Sep 2008 08:12:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Deutsche Bank upgraded shares of Teva Pharmaceutical (NASDAQ: TEVA) to Buy from Hold to reflect the company's greater growth prospects following the acquisition of Barr (NYSE: BRL). The firm raised the target to $56 from $47.
  
• ThinkPanmure upgraded Blue Coat Systems (NASDAQ: BCSI) to Buy from Source of Funds based on the company's growth prospects following positive channel checks.
  
• American International Group (NYSE: AIG) was raised to Buy from Neutral at Banc of America on valuation, as they find the risk/reward attractive at current levels.

• Goldman upgraded the Semiconductor Production Equipment sector to Neutral from Cautious and added Verigy (NASDAQ: VRGY) to its Conviction Buy List.
  
• Morgan Stanley upgraded Whole Foods (NASDAQ: WFMI) and Cintas (NASDAQ: CTAS) to Equal Weight from Underweight.
  
• Gibraltar Industries (NASDAQ: ROCK) was raised to Buy from Neutral at Piper.

Analyst upgrades: TEVA, WFMI, CTAS, BCSI and AIG originally appeared on BloggingStocks on Mon, 21 Jul 2008 11:00:00 EST. Please see our terms for use of feeds.

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

• Activision Blizzard Inc. (NASDAQ: ATVID) sees strong Q1 results driven by Guitar Hero.
• Allegheny Technologies Inc. (NYSE: ATI) raised its Q2 earnings guidance ahead of its report.
• Cintas Corp. (NASDAQ: CTAS) strong Q4 and full-year results included a record quarterly revenue.
• Citigroup (NYSE: C) posted better-than-expected results despite a big loss on further write-downs.
• eBay Inc. (NASDAQ: EBAY) reported better-than-expected results and offered a soft outlook (see transcript).
• Fastenal Co. (NASDAQ: FAST) posted strong Q2 earnings despite the housing slump but lower revenues.
• Grainger Inc. (NYSE: GWW) posted strong Q2 results on expansion in Mexico and China.
• Harley-Davidson Inc. (NYSE: HOG) beat Q2 expectations despite profit and revenue declines.
• International Business Machines Corp. (NYSE: IBM) easily topped Wall Street earnings expectations.
• Johnson & Johnson (NYSE: JNJ) beat Q2 estimates and raised its full-year forecast (see transcript).
• Kimberly-Clark Corp. (NYSE: KMB) warned of lower Q2 earnings due to energy and distribution costs.
• Merrill Lynch & Co. (NYSE: MER) reported worse-than-expected Q2 results on further write downs.
• Microsoft Corp. (NASDAQ: MSFT) earnings surged but investors were put off by its full-year guidance.
• Procter & Gamble Co. (NYSE: PG) reaffirmed its guidance following the Kimberly-Clark warnings.
• United Technologies Corp. (NYSE: UTX) beat Q2 estimates, lifting shares from a recent 52-week low.
• ValueClick Inc. (NASDAQ: VCLK) posted weak results and warned about the second half of the year.

For more highlights from this week, see: Google, Intel, JPMorgan, Coca-Cola, Nokia and others

The earnings crunch continues next week. Among companies scheduled to report are Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Merck (NYSE: MRK), Texas Intruments (NYSE: TXN), Caterpillar (NYSE: CAT), Halliburton (NYSE: HAL), United Parcel Service (NYSE: UPS), Wachovia (NYSE: WB), Yahoo! (NASDAQ: YHOO), Amazon (NASDAQ: AMZN), Anheuser-Busch (NYSE: BUD), AT&T Inc. (NYSE: T), McDonald's (NYSE: MCD), PepsiCo (NYSE: PEP), Pfizer (NYSE: PFE), Boeing (NYSE: BA), Hershey (NYSE: HSY), and Southwest Airlines (NYSE: LUV).

Visit AOL Money & Finance for more earnings coverage.

Earnings highlights: Citigroup, eBay, IBM, Merrill Lynch, Microsoft and others originally appeared on BloggingStocks on Sat, 19 Jul 2008 09:40:00 EST. Please see our terms for use of feeds.

Cintas (CTAS) jumps on good earnings originally appeared on BloggingStocks on Thu, 17 Jul 2008 12:02:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• JMP Securities upgraded National Semi (NYSE:NSM) to Outperform from Market Perform citing strong Q2 results, as they expect growth to continue driven by continued success in high-end analog and power management products.
  
• Baird raised its rating on Cintas (NASDAQ:CTAS) to Outperform from Market Perform based on analysis that indicates the cyclical inflection point in the sector's stocks is near with U.S. employment growth is likely to bottom within 6-12 months and expectations that the Project One Team initiative is poised to surprise in early 2008.
  
• Lehman upgraded shares of J.C. Penney (NYSE:JCP) to Overweight from Equal Weight, as they believe the company is well-positioned to gain market share in the current environment.

• Royal Bank of Scotland (RBS) was upgraded to Overweight from Neutral at HSBC.
  
• Goldman raised CA, Inc (CA) to Buy from Neutral.
  
• Jefferies upgraded SunPower (SPWR) to Buy from Hold.

Analyst upgrades: NSM, CTAS and JCP originally appeared on BloggingStocks on Fri, 07 Dec 2007 11:02:00 EST. Please see our terms for use of feeds.

The Associated Press reports that UAL Corporation (NYSE: UAUA)'s United Airlines and Delta Air Lines (NYSE: DAL) are in discussions about a merger. The firms would take United's Chicago headquarters and its name. One possible scenario involves Delta CEO Richard Anderson being the chief of the combined airline.

Why merge? Pardus Capital Management LP, a hedge fund, owns 7 million Delta shares and 5.6 million shares of United. Pardus pushed Delta to merge with UAL. It argued that it was "imperative" that the company merge with another airline in view of soaring fuel prices and what it described as the increased risks of going it alone. Pardus believes that "consolidation is needed to de-risk the industry, and time is of the essence as now is the right regulatory environment."

If Pardus is right, it seems to me that it must be forecasting that Hillary Clinton will be the next president. That's because Pardus believes that the regulatory environment for airline consolidation will deteriorate under the next president -- and I wouldn't be surprised if it thought mergers would be viewed more favorably under a Republican than a Democrat.

Continue reading Is fear of a Hillary Clinton presidency behind United/Delta merger talks?

Is fear of a Hillary Clinton presidency behind United/Delta merger talks? originally appeared on BloggingStocks on Wed, 14 Nov 2007 19:57:00 EST. Please see our terms for use of feeds.

Corporate apparel and uniform provider Cintas Corporation (NASDAQ: CTAS) recently released both 4Q 2007 and FY 2007 figures. Overall the news is positive, but there are some complicating factors investors need to be aware of before investing in this stock. FY 2007 revenue growth increased 9% to $3.7 billion despite the fact that Cintas' reorganization of its global sales force has taken much longer than predicted, cost more, and resulted thus far in below anticipated gains. Recent press releases do not address this important issue, other than to say that the reorganization is proceeding and will pay off down the line. Net income for FY 2007 was up 3.4% to $334.5 million, and FY EPS increased the same amount as revenues, 9%, to $2.09 diluted.

The fact remains, however, that 4Q 2007 was rough for Cintas. Revenue for the quarter increased 6.2% to $964 million. EPS diluted increased only half as much, 3.6% to 57 cents. Net income was up, barely, by 1.3%, but interest costs and debt levels also increased due to acquisitions and stock buybacks. Cintas has a handle on cost control. Administrative expenses increased slightly due to higher medical insurance costs, but the company still showed a slight decline in net income as a percent of revenue in 2007 compared to 2006. The stock has lost almost 10% of its value since it opened at $40.43 at the beginning of the year. The stock closed yesterday at $37.41. Its P/E of 17.90 is significantly below industry average of 25.11, and CEO Scott Farmer predicts Cintas will grow its customer base from its current level of 800,000. Farmer remains optimistic that FY 2008 revenues will be in the $3.9-$4.1 billion range, and EPS diluted will be in the $2.15-$2.25 range. The stock currently pays a 39-cent dividend.

Cintas (CTAS) trying to look good originally appeared on BloggingStocks on Tue, 07 Aug 2007 14:40:00 EST. Please see our terms for use of feeds.

After false starts in merchandising categories like higher-end women's fashions, Wal-Mart (NYSE: WMT) may have hit on a new product segment that is a real winner for the world's largest retailer.

Consumer electronics. According to (subscription required) an analyst at Bear Stearns "Wal-Mart's sales of electronics will increase at a rate of at least 10% to 12% this year." The big company's aggressive move into the market is seen as hurting Best Buy (NYSE: BBY) and Circuit City (NYSE: CC).

According to The Wall Street Journal, Wal-Mart has been able to add Toshiba and Dell (NASDAQ: DELL) computers, Verizon Wireless products, and Apple (NASDAQ: AAPL) iPods to the list of electronics that it markets.

But, there is one flaw in Wal-Mart's pitch. The stores are still likely to be considered down-scale by many US consumers.

One of the advantages of going to a Best Buy is that almost all of the products are higher-end electronics. The stores are staffed by trained specialists who have a fairly wide knowledge of the products that the retailer is selling.

At Wal-Mart consumers have to make their way past groceries, cheap clothes, and the gun and ammo department to get to the TVs and computers. There are a lot of people who may be put off with that.

Would you like some shot gun shells with that wide screen TV?

Douglas A. McIntyre is a partner at 24/7 Wall St.

Wal-Mart: high tech wonder originally appeared on BloggingStocks on Thu, 02 Aug 2007 07:00:00 EST. Please see our terms for use of feeds.

• Labopharm Inc. (NASDAQ: DDSS) was downgraded to Neutral from Buy at Merrill Lynch and to Market Perform from Outperform at Leerink Swann after the 2nd approval letter from the FDA said Tramadol did not show efficacy. CIBC World Markets downgraded shares of Labopharm to Sector Performer from Outperformer and at Canaccord Adams to Sell from Hold.
• Dell Inc. (NASDAQ: DELL) was downgraded to Neutral from Buy at Merrill Lynch, which recommended investors take profits following the strong earnings reports. The firm does not believe the drivers behind the earnings upside are sustainable. Dell was also downgraded at Morgan Stanley, to Equal Weight from Overweight, based on valuation.
• The Nasdaq Stock Market, Inc. (NASDAQ: NDAQ) was downgraded to Equal Weight from Overweight at Lehman, as the firm believes the stock is range-bound for the next several months following the OMX acquisition announcement.

• Robert W Baird downgraded shares of DiamondRock Co. (NYSE: DRH) and Chesapeake Utilities Corp. (NYSE: CPK) to Neutral from Outperform on valuation.
• Bear Stearns downgraded shares of Emmis Communications Corp. (NASDAQ: EMMS) to Underperform from Peer Perform, as the firm does not believe the CEO will make another bid to take the company private.
• Matrix USA downgraded shares of Jabil Circuit Inc. (NYSE: JBL) to Hold from Buy.
• Morgan Stanley downgraded shares of Cintas Corp. (NASDAQ: CTAS) Underweight from Equal Weight, citing growth concerns, and downgraded shares of Virgin Media Inc. (NASDAQ: VMED) to Equal Weight from Overweight, citing higher customer churn and weaker pricing power.
• Goldman Sachs downgraded shares of RadioShack Corp. (NYSE: RSH) to Neutral from Buy.

Analyst downgrades 6-1-07: Dell, Cintas, RadioShack originally appeared on BloggingStocks on Fri, 01 Jun 2007 11:25:00 EST. Please see our terms for use of feeds.

MORE NOTEWORTHY:

• Prudential downgraded the aluminum industry to Unfavorable from Favorable, cutting cut Alcoa Inc (NYSE: AA) to Neutral from Overweight and Alcan Inc (NYSE: AL) to Underweight from Overweight. Prudential cited the increased Chinese output growth and slowing U.S. demand for aluminum for the downgrades.

• Keefe Bruyette cut National City Corp (NASDAQ: NCC) to Underperform from Market Perform based on higher credit costs and near-term capital requirements.

• MGM Mirage (NYSE: MGM) was downgraded to Sell from Hold at Matrix USA citing valuation.

• Citigroup cut Domtar Corp (NYSE: UFS) to Sell from Hold with a $9 target based on valuation.

• Dow Chemical Co (NYSE: DOW) was removed from Credit Suisse's U.S. Focus List.

• Prudential cut Dean Foods Co (NYSE: DF) to Neutral from Buy based on valuation and volatile short-term raw milk prices.
  

• Barrington downgraded Cintas Corp (NASDAQ: CTAS) to Market Perform from Outperform with a $40 target based on poor Q3 earnings and lower revised guidance.

• Methanex Corp (NASDAQ: MEOH) was cut to Underperform from Market Perform at BMO Capital.

• Buffalo Wild Wings (NASDAQ: BWLD) was downgraded to Hold from Buy with a $67 target at Jefferies based on valuation.

Analyst downgrades 3-21-07: Alcoa, Dean Foods & Dow Chemical downgraded today originally appeared on BloggingStocks on Wed, 21 Mar 2007 11:11:00 EST. Please see our terms for use of feeds.

Work uniforms and custom corporate apparel maker Cintas (Nasdaq:CTAS) released 3Q FY 2007 revenue and earnings information after the market closed on 20 March 2007. Revenue for the current quarter increased 8.2% to $905.4 million. Diluted earnings per share (EPS) increased 6.7% to $0.48. Net income was essentially flat, $76.7 million for the current quarter versus $76.6 million for 3Q 2006. Cintas CEO Scott Farmer pointed to three major reasons for Cintas' 3Q situation. A mild winter in much of the country meant a lower demand for winter uniform jackets. Continuing loss of manufacturing jobs to overseas markets has a direct impact on the quantity of demand for uniform work apparel. As well, Cintas has been reorganizing its entire sales force for the past several months.

CEO Farmer was guardedly optimistic with 3Q FY2007 results. Cintas is expanding both its product line and its geographic base for customers. Currently Cintas provides work-related apparel and/or promotional products, mats and restroom supplies to more than 700,000 businesses.

Cintas has been actively buying back shares of its common stock. In 3Q 2007, CIntas purchased 1.4 million shares at a total cost of $57 million. To date, Cintas has repurchased over 14 million of its shares, approximately 8% of the total shares outstanding, at a total cost of $580 million. Cintas currently has $420 million remaining to continue to fund its stock buyback program.

CEO Farmer estimates revenue for entire FY 2007 will be $3.675 - $3.725 billion. This range is down from previously forecast revenue projections of $3.77-$3.85 billion. Diluted EPS will be $2.03-$2.08, down from previously forecasted $2.10-$2.20 range. Cintas is on track for its 38th consecutive year of growth in sales and earnings.

The stock closed up 0.47 to $$40.51, but fell to $37.66 in after hours trading.

Cintas 3Q FY2007 earnings report originally appeared on BloggingStocks on Tue, 20 Mar 2007 17:40:00 EST. Please see our terms for use of feeds.