Continue reading Costco Shares Not Doing Much After Earnings Report

Costco Shares Not Doing Much After Earnings Report originally appeared on BloggingStocks on Wed, 06 Oct 2010 15:00:00 EST. Please see our terms for use of feeds.

Same-store sales, without the effect of gasoline transactions and currency elements, rose 2% in the United States and 10% in the international territories. I wasn't too impressed by the U.S. comps back in December, and I'm not so impressed with them now, either.

Continue reading Costco Down on Q2 News

Costco Down on Q2 News originally appeared on BloggingStocks on Wed, 03 Mar 2010 15:20:00 EST. Please see our terms for use of feeds.

This week, the world's top retailers will tell investors how the much-discussed holiday season went. Analysts expect a year-over-year gain of 1.3% for stores open at least a year, which of course uses a dismal 2008 as a benchmark.

The holiday shopping season is the last chance retailers get to pump up their financial statements before the close of their fiscal year, which usually comes at the end of January. For some retailers, up to 40% of their revenue comes in the weeks heading into Christmas.

Continue reading Retail Results to Come this Week, but Spring Is the Test

Retail Results to Come this Week, but Spring Is the Test originally appeared on BloggingStocks on Sun, 03 Jan 2010 13:20:00 EST. Please see our terms for use of feeds.

Costco (COST), a warehouse club that competes with BJ's (BJ) and Wal-Mart (WMT), reported Q1 numbers on Thursday. Earnings, which came in at 60 cents per share, were flat compared to last year's results. Not only that, but expectations were precisely met. Not exactly an exciting quarter, huh?

Total sales rose 6%, but same-store sales -- the more important statistic as it paints a better picture of the overall health of a retail business by indicating how well older stores are maintaining their growth characteristics -- increased 3%, excluding currency and fuel transactions.

Continue reading Costco: Not a riveting first quarter

Costco: Not a riveting first quarter originally appeared on BloggingStocks on Fri, 11 Dec 2009 08:40:00 EST. Please see our terms for use of feeds.

Though the earnings season is winding down, and the coming week includes the Thanksgiving holiday in the U.S., plenty of reports are still due out. And analysts surveyed by Thomson Reuters don't seem to be expecting too many turkeys among this week's bunch.

Leading U.S. meat processor Tyson Foods Inc. (TSN), which has just named a new chief executive officer and a new chief operating officer, is expected to report fiscal fourth-quarter earnings of $0.26 per share, up from $0.14 in the same period of last year. But revenue is expected to total $6.9 billion, or 4.3% less than a year ago. The full-year forecast is for a profit of $0.25 per share (-16.7) on $26.4 billion (-3.9%) in sales. This dividend payer has offered upside surprises in the past two quarters, topping estimates by 11 cents per share in the third quarter.

Continue reading The week in preview: No turkey earnings from Tyson, Hormel, Cracker Barrel ...

The week in preview: No turkey earnings from Tyson, Hormel, Cracker Barrel ... originally appeared on BloggingStocks on Sun, 22 Nov 2009 12:30:00 EST. Please see our terms for use of feeds.

BJ's Wholesale Club (BJ), whose competitive colleagues include Costco Wholesale Corporation (COST) and Wal-Mart Stores, Inc. (WMT), issued Q3 results earlier today. According to TheStreet.com, adjusted earnings of 45 cents per share met expectations.

And apparently that wasn't good enough for the traders. As of this writing, shares of BJ's were trading down 3% on above-average volume. Was the BJ's story that bad?

Continue reading BJ's posts Q3 report, stock drops

BJ's posts Q3 report, stock drops originally appeared on BloggingStocks on Wed, 18 Nov 2009 17:30:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• Citigroup upgraded Schlumberger (NYSE: SLB) to Buy from Hold on valuation and the company's exposure to a potential upturn in international drilling. The firm raised its target on shares to $80 from $56.
• UBS upgraded Allegheny Tech (NYSE: ATI) to Buy from Neutral and raised its target to $43 from $31 and believes the end of jet engine and other destocking will result in an initial recovery into 2010, even before an order ramp into 2011.
• Merriman upgraded Acorda Therapeutics (NASDAQ: ACOR) to Buy from Neutral based on the favorable FDA panel outcome and set a $30-$33 target range on the stock. Baird upgraded Acorda to Outperform from Neutral and raised its target to $28 from $24. Following the panel review, Baird expects Amaya to be approved in 1H10 and would be buyers into the mid/high $20s.
• Chicago Bridge & Iron (NYSE: CBI) was upgraded to Buy from Neutral at Goldman.
• PG&E (NYSE: PCG) was upgraded to Buy from Neutral at UBS.
• Newfield Exploration (NYSE: NFX) was upgraded to Outperform from Market Perform at Wells Fargo.

Continue reading Analyst upgrades, downgrades and initiations: ACOR, BHI, HAL, LAZ, SLB, TRV ...

Analyst upgrades, downgrades and initiations: ACOR, BHI, HAL, LAZ, SLB, TRV ... originally appeared on BloggingStocks on Thu, 15 Oct 2009 11:30:00 EST. Please see our terms for use of feeds.

Costco Wholesale Corp. (NASDAQ: COST), the popular warehouse store that competes with BJ's Wholesale Club (NYSE: BJ) and Wal-Mart (NYSE: WMT), will report Q4 earnings on Wednesday, October 7. How will the company do?

Don't look for growth, my friends. According to Earnings.com, estimates from Wall Street say that Costco will produce 77 cents per share in income. Unfortunately, that represents a 16% drop in the metric. Surprising? Maybe a little. After all, we're still suffering a bad economy, and you figure that people would want to cut costs by leveraging the bulk buying power of the Costco business model.

Continue reading Costco's fourth quarter: Will Wall Street be surprised?

Costco's fourth quarter: Will Wall Street be surprised? originally appeared on BloggingStocks on Tue, 06 Oct 2009 11:30:00 EST. Please see our terms for use of feeds.

There's a difference between a CEO that's paid well and one that's raking in loot he clearly doesn't deserve. The former may invoke a bit of ire in this economic climate, but when cooler heads prevail, the cash laid out is usually but a rounding error on the increases in market cap he's driven. An overpaid CEO, on the other hand ... well, it's a bit harder to justify the inflated package.

Kerri Chyka over at CNN Money reports that the Corporate Library sifted through the bloated and legit packages out there to let us know which top dogs are rolling in dough that should probably be left in the company coffers.

1. Michael Jeffries, Abercrombie & Fitch (NYSE: ANF)
Last year, Michael Jeffries made $71.8 million in total, with a base salary of $1.5 million, according to corporate governance research firm, the Corporate Library. It even included a $6 million retention bonus ... because you want to hang on to a guy who the research firm calls one of the five "Highest Paid Worst Performers" of 2008. If that stings, Jeffries can hop on the Abercrombie corporate jet instead of running away. He's paid better than 75% of rival CEOs, while the share price generally underperformed them.

2. James W. Stewart, BJ Services Company (NYSE: BJS)
James Stewart had a good year in 2008, as it outperformed most of its peers, and he nailed a $34.6 million package. In all fairness, $30 million came from the value realized on stock options. The four years that preceded Stewart's strong performance, on the other hand, were lackluster. The future, it seems, is immaterial, as Baker Hughes picked up BJ Services last month, and Stewart will probably be out the door at the end of the year, when the deal closes.

Continue reading Five overpaid CEOs to make you jealous

Five overpaid CEOs to make you jealous originally appeared on BloggingStocks on Tue, 29 Sep 2009 15:20:00 EST. Please see our terms for use of feeds.

From TheStreet.com Network

• More ETFs Get Sued
• Kraft Seeking Financing for Cadbury Bid

Continue reading Cramer on BloggingStocks: Fundamental distortion

Cramer on BloggingStocks: Fundamental distortion originally appeared on BloggingStocks on Wed, 09 Sep 2009 10:00:00 EST. Please see our terms for use of feeds.

Some big acquisition news in the oilfield service industry today, as Baker Hughes (NYSE: BHI) announced that it would be buying BJ Services (NYSE: BJS).

The deal is for cash and stock, and is reportedly valued at $5.5 billion.

According to the details that have been released, BJS stockholders will be getting 0.40035 shares of BHI stock in addition to $2.69 in cash.

Continue reading Baker Hughes to acquire BJ Services

Baker Hughes to acquire BJ Services originally appeared on BloggingStocks on Mon, 31 Aug 2009 11:30:00 EST. Please see our terms for use of feeds.

Albert Gonzalez is calling it quits. Accused of masterminding the largest identity theft in the United States ever, he has agreed to plead guilty in U.S. District Court in Massachusetts. Separate charges filed in New Jersey, however, remain.

The 28 year-old faces 15 to 25 years in prison and will forfeit $1.65 million and a Miami condo (in addition to $1.1 million already seized). If the judge accepts the terms, this would be the longest sentence ever recorded for a hacking case.

Continue reading Hacker pleads guilty in Mass., charges pending in N.J.

Hacker pleads guilty in Mass., charges pending in N.J. originally appeared on BloggingStocks on Sun, 30 Aug 2009 10:10:00 EST. Please see our terms for use of feeds.

• Citigroup upgraded Allergan (NYSE: AGN) to Buy from Hold to reflect increased estimates for Botox and its belief Latisse guidance looks conservative. The firm raised its target on shares to $57 from $45.
  
• Jefferies upgraded Texas Instruments (TXN) to Hold from Underperform after channel checks indicated business is strengthening. Jefferies believes Texas Instruments' September quarter guidance will come in better than expected and raised its target on shares to 23 from $16.
  
• FBR Capital upgraded Peabody Energy (BTU) to Outperform from Market Perform to reflect "strong" long-term steel and steam demand trends from China and India. The firm raised its target on shares to $44 from $36.
  
• Elan Corp (ELN) was upgraded to Buy from Neutral at UBS.
  
• Affymetrix (AFFX) was upgraded to Equal Weight from Underweight at Morgan Stanley.
  
• ASML Holding (ASML) was upgraded to Buy from Neutral at BofA/Merrill.

Continue reading Analyst upgrades, downgrades and initiations: AGN, TXN, ELN, PALM, DOW

Analyst upgrades, downgrades and initiations: AGN, TXN, ELN, PALM, DOW originally appeared on BloggingStocks on Mon, 20 Jul 2009 12:00:00 EST. Please see our terms for use of feeds.

• Jefferies upgraded Quicksilver (NYSE: KWK) to Buy from Hold as it believes the company has many options to resolve its liquidity crisis. The firm expects shares to move towards its $10 NAV estimate and raised its target price to $10 from $7.
• Deutsche Bank upgraded Omnicom Group (NYSE: OMC) to Hold from Sell following the Q1 results as the company's margins are holding up better than previously thought. The firm raised its target price on shares to $31 from $21.
  
• Deutsche Bank also upgraded Universal Health (NYSE: UHS) following the company's better than expected Q1 results. Shares were lifted to Buy from Hold and the firm raised its target on the stock to $60 from $45.
• Barclays (NYSE: BCS) was raised to Buy from Reduce at Nomura.
  
• Orient-Express (NYSE: OEH) was lifted to Neutral from Underweight at JP Morgan.
  
• CVS Caremark (NYSE: CVS) was upgraded at Goldman to Conviction Buy from Buy.

Continue reading Analyst upgrades, downgrades and initiations: KWK, BCS, CVS, BAC ...

Analyst upgrades, downgrades and initiations: KWK, BCS, CVS, BAC ... originally appeared on BloggingStocks on Tue, 28 Apr 2009 11:00:00 EST. Please see our terms for use of feeds.

While other earnings may have disappointed last week, the news was good for oil giant ConocoPhilips (NYSE: COP). In what some took as a good sign for big oil, the Houston-based company reported that third quarter net income surged 41% year over year to $3.39 per share, and that revenue also surged 52% to $70 billion. We'll see whether the good news extends to other petroleum giants scheduled to report quarterly results this week.

Analysts surveyed by Thomson Financial are looking for BP (NYSE: BP) profits to have grown 43.2% in the most recent quarter to $2.34 per share on revenue of $109.7 billion, and Chevron Corp. (NYSE: CVX) to post earnings up 39.4% to $3.25 per share on revenue of $86.8 billion. Marathon Oil Corp. (NYSE: MRO), ExxonMobil Corp. (NYSE: XOM), and Royal Dutch Shell (NYSE: RDS.A) likewise are expected to report higher net income of $2.33 per share (sales of $23.4 billion), $2.40 per share (sales of $131.4 billion), and $2.65 per share, respectively. Even Valero Energy Corp. (NYSE: VLO) is expected to post earnings slightly higher to $1.46 per share (sales of $36.4 billion), despite the effects of Hurricane Ike. Among these companies, only BP and Valero beat earnings expectations in the previous quarter. Not surprisingly, analysts on average recommend buying all except Valero, and shares of all of these companies have recently hit 52-week lows.

Continue reading The week in preview: Focus on oil and energy

The week in preview: Focus on oil and energy originally appeared on BloggingStocks on Sun, 26 Oct 2008 12:30:00 EST. Please see our terms for use of feeds.

Costco (NASDAQ: COST), the shopping club that competes with BJ's (NYSE: BJ) and Wal-Mart (NYSE: WMT), reported earnings for the fourth quarter on Wednesday. Sales did well, rising 13% to $22.6 billion. On an adjusted basis, excluding a litigation charge, the bottom line came in at $0.92 per share, and according to this source, that is one penny below expectations. Excluding the effect of gasoline inflation, comparable sales increased 6%.

For the most part, I think Costco held up well during the quarter. Yes, the warehouse club didn't wow the Wall Street analysts this time around. But comps were pretty decent for the quarter, and the top-line performance was acceptable, all things considered. Membership-fee revenue went up by 22%, which was cool.

This doesn't mean that Costco won't have a tough time going forward. As the economy worsens (and it will), Costco is going to face intense competition for the attention of the consumer's cash and credit cards. Keep in mind, though, that Costco has some good brand equity when it comes to discount shopping. The company's image is of a place where people can buy in bulk and get great deals. In a bad market environment, consumers may flock to Costco to save money. So the company might do okay (on a very relative basis) during the crisis.

Continue reading Costco holding up for now, but will it continue to hold up?

Costco holding up for now, but will it continue to hold up? originally appeared on BloggingStocks on Wed, 08 Oct 2008 14:50:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Deutsche Bank downgraded shares of McClatchy (NYSE:MNI) to Sell from Hold after transferring analyst coverage as they believe leverage issues will continue to pressure the stock.
  
• Jefferies downgraded shares of Ansys (NASDAQ:ANSS) to Hold from Buy on valuation and their belief that a slow U.S. manufacturing economy may be impacting sales cycles at the margin.
  
• Fortune Brands (NYSE:FO) was lowered to Market Perform from OUtperform at Wachovia following its lowered 2008 outlook.

• Goldman removed ArvinMeritor (NYSE:ARM) and NYSE Euronext (NYSE:NYX) from the Conviction Buy List.
  
• Citigroup cut BJ Services (NYSE:BJS) and Weatherford (NYSE:WFT) to Hold from Buy.

Analyst downgrades: MNI, ANSS and FO originally appeared on BloggingStocks on Tue, 01 Jul 2008 11:21:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• JMP Securities started shares of Kohlberg Capital (NASDAQ: KCAP) with an Outperform rating and $14 target. The firm believes Kohlberg Capital's alliance with Kohlberg and Company allows Kohlberg Capital to take advantage of considerable expertise. JMP Securities believes Kohlberg Capital has an attractive risk/reward ratio.
  
• Roth Capital initiated ClickSoftware (NASDAQ: CKSW) with a Hold rating and $3.60 target and expects EPS pressure from the depreciating dollar near-term.
  
• Liberty Property Trust (NYSE: LRY) was initiated with a Hold rating at Stifel, citing lack of internal earnings divers and fair valuation.

• Oppenheimer initiated VisionChina Media (NASDAQ: VISN) with a Perform rating and $25 target.
  
• Merrill assumed MGM Mirage (NYSE: MGM) with a Neutral rating.
  
• Morgan Stanley started BJ's Wholesale (NYSE: BJ) and Costco (NASDAQ: COST) with Equal Weight ratings.

Analyst initiations: KCAP, CKSW and LRY originally appeared on BloggingStocks on Fri, 16 May 2008 11:43:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Merrill expects the turnaround at K Swiss (NASDAQ: KSWS) to be difficult given weakening retail sales. Shares were downgraded to Sell from Neutral.
  
• Jefferies cut shares of BJ's Restaurants (NASDAQ: BJRI) to Hold from Buy due to the company's high relative exposure to the subprime mortgage markets.
  
• Ford (NYSE: F) was downgraded to Underperform from Peer Perform at Bear Stearns. The firm recommends taking some profits following the recent rally in shares. Shares were also cut to Neutral from Overweight at JP Morgan, citing valuation, and to Sell from Neutral at Merrill Lynch.

• Wachovia cut EastGroup Properties (NYSE: EGP) to Market Perform from Outperform.
  
• Goldman removed SL Green Realty (NYSE: SLG) from its Conviction Buy List.
  
• RBC Capital lowered Developers Diversified Realty (NYSE: DDR) to Sector Perform from Outperform.
  
• Raytheon (NYSE: RTN) was downgraded at JP Morgan to Neutral from Overweight.

Analyst downgrades: KSWS, BJRI and F originally appeared on BloggingStocks on Fri, 25 Apr 2008 11:16:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Lehman upgraded Cott Corp (NYSE: COT) to Equal Weight from Underweight citing recent management changes, a focus on CSD business, and new product discipline.
  
• Bernstein believes the entire non-life insurance group is oversold and that it is time to buy; the firm upgraded Hartford Financial (NYSE: HIG) and Allstate (NYSE: ALL) to Outperform from Market Perform.
  
• Valero Energy (NYSE: VLO) was raised to Buy from Hold at Deutsche Bank on valuation with the stock trading at a -30% discount to NAV while the asset market for U.S. refineries is strong.

• Goldman added Cisco (NASDAQ: CSCO) to its Conviction Buy List.
  
• RBC Capital upgraded BJ Services (NYSE: BJS), Halliburton (NYSE: HAL) and Patterson-UTI Energy (NASDAQ: PTEN) to Outperform from Sector Perform.
  
• Friedman Billings upgraded the Semiconductor Capital Equipment sector to Overweight from Market Weight.

Analyst upgrades: COT, HIG, ALL and VLO originally appeared on BloggingStocks on Thu, 27 Mar 2008 11:45:00 EST. Please see our terms for use of feeds.