BloggingStocks

Earnings highlights: Ciena, Staples, Intel, Tivo, Trump, Del Monte and others

Trey Thoelcke — Sat, 08 Mar 2008 16:10:00 EST

Filed under: Earnings Reports, Intel (INTC), Ciena Corp (CIEN), Trump Entertainment Resorts (TRMP), Staples Inc (SPLS)

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

BJ's Wholesale Club Inc. (NYSE: BJ) beat fourth-quarter estimates on lower costs and strong sales.
Ciena Corp. (NASDAQ: CIEN) first-quarter profit doubled on strong sales, lifting the sector.
Clean Harbors Inc. (NASDAQ: CLHB) trounced expectations as it completes acquisitions.
Del Monte Foods Co. (NYSE: DLM) beat estimates on cost cutting and raised its guidance.
HSBC Holdings PLC ADS (NYSE: HBC) profit soared in 2007, beating analysts' expectations.
Intel Corp. (NASDAQ: INTC) lowered its first quarter earnings forecast, citing weak chip prices.
LeapFrog Enterprises Inc. (NYSE: LF) narrowed its losses for the fourth quarter and full year.
LKQ Corp. (NASDAQ: LKQX) beat fourth-quarter estimates and raised its guidance.
Midway Games Inc. (NYSE: MWY) widened its losses in both the fourth quarter and full year.
Staples Inc. (NASDAQ: SPLS) reported a solid fourth quarter and increased its annual dividend.
TiVo Inc. (NASDAQ: TIVO) posted a smaller-than-expected fourth-quarter loss due to licensing deals.
Trump Entertainment Resorts Inc. (NASDAQ: TRMP) fourth-quarter and full-year losses widened.
Universal Health Services (NYSE: UHS) beat earnings expectations but matched revenue estimates.

Also, Dell Inc. (NASDAQ: DELL) struggles to maintain profitability against competitor Hewlett-Packard Co. (NYSE: HPQ). See Timothy Sykes's take on Warren Buffett's annual letter to Berkshire Hathaway (NYSE: BRK.A) shareholders. And Zac Bissonnette is interested in where earnings actually come from.

Upcoming results to watch for include Kroger Co. (NYSE: KR), Boston Beer Co. (NYSE: SAM), J. Crew Group Inc. (NYSE: JCG), Jones Soda Co. (NASDAQ: JSDA), Blackstone Group (NYSE: BX), and Men's Wearhouse Inc. (NYSE: MW).

Visit AOL Money & Finance for more earnings coverage.

Earnings highlights: Ciena, Staples, Intel, Tivo, Trump, Del Monte and others originally appeared on BloggingStocks on Sat, 08 Mar 2008 16:10:00 EST. Please see our terms for use of feeds.

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Analyst initiations: SVU, SPWR, LKQX and CHTR and PUB

Eric Buscemi — Mon, 01 Oct 2007 11:30:00 EST

Filed under: Analyst Reports, Analyst Initiations

MOST NOTEWORTHY: SuperValu, SunPower, LKQ and Charter Comm were today's noteworthy initiations:

Banc of America started shares of SuperValu Inc (NYSE: SVU) with a Sell rating and $34 target as they believe the company will struggle to modernize its store base and reset its pricing to more competitive levels over the next 12 months.
William Blair initiated SunPower (NASDAQ: SPWR) shares with an Outperform rating, citing the company's large market opportunity and strong technology/market positioning.
LKQ (NASDAQ: LKQX) was started at Deutsche Bank with a Hold rating and $35 target. The firm believes the company's growth projections are priced into shares.
JP Morgan initiated Charter Communications (NASDAQ: CHTR) with an Overweight rating, as they expect the company to be able to refinance its maturing debt over the next five years and generate attractive returns.

OTHER INITIATIONS:

B. Riley started Wsfs Financial Corporation (NASDAQ: WSFS) with a Buy rating and $69 target.
Bear initiated Commercial Vehicle Group (NASDAQ: CVGI) with a Peer Perform rating and Tenneco Inc (NYSE: TEN) with an Underperform rating.
Cowen started Micrus Endovascular Corporation (NASDAQ: MEND) with an Outperform rating.

Analyst initiations: SVU, SPWR, LKQX and CHTR and PUB originally appeared on BloggingStocks on Mon, 01 Oct 2007 11:30:00 EST. Please see our terms for use of feeds.

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LKQ purchasing Keystone Automotive

Kevin Kelly — Tue, 17 Jul 2007 10:30:00 EST

Filed under: Deals, From the Boards, Press Releases

For 10% higher than its most recent close, Keystone Automotive (NASDAQ: KEYS) has agreed to be acquired by LKQ (NASDAQ: LKQX) for a total purchase price of $811 million. LKQ stepped up and made the move in order to expand its presence in the distribution of replacement auto parts, according to LKQ CEO, Joe Holsten.

LKQ is funding the deal with a credit commitment from Deutsche Bank and Lehman Brothers(NYSE:LEH). In addition, this $1.09 billion in senior financing will also be used to refinance the company's existing debt, probably at more economic interest rates.

This is a very significant acquisition for LKQ considering the financials behind the deal. During the last twelve months, Keystone has done $713 million in sales. This compares to about $833 million in sales for LKQ. In addition, the acquisition price represents more than half of LKQ's existing market capitalization.

I believe this deal makes sense for LKQ shareholders because I think Keystone's earnings will be more appropriately valued under LKQ. For example, at the close yesterday Keystone was trading for just 1x sales and roughly 17.5x next year's earnings. LKQ on the other hand fetches 1.65x sales and nearly 21x forward earnings. Granted Keystone's operating margins were inferior to those of LKQ, As a result of these factors, I tend to believe that Keystone's earnings and sales will receive a higher multiple valuation as part of Keystone.

LKQ is a very interesting stock at these levels - especially considering this acquisition which should close in the fourth quarter of this year. At only 21x forward earnings with projected growth of 19% over the next five years this seems like a very interesting Growth At A Reasonable Price proposition.

LKQ purchasing Keystone Automotive originally appeared on BloggingStocks on Tue, 17 Jul 2007 10:30:00 EST. Please see our terms for use of feeds.

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