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On Assignment Inc. - A review
On Assignment Inc. (ASGN | Quote | Chart | News | PowerRating), which posted a 79% drop in third-quarter profit Monday, hurt by lower revenue, forecast a tepid outlook for the fourth-quarter.
For the fourth-quarter, the staffing company expects earnings of breakeven to $0.03 per share while analysts are looking for earnings of $0.01 per share. In the year-ago fourth-quarter, On Assignment earned $0.10 per share.
The company forecast fourth-quarter revenue to range between $93 million and $98 million, below the analysts' consensus revenue estimate of $98.79 million. Revenues for the fourth quarter of 2008 were $147.6 million.
ASGN gained more than 9% in the past five days to close Friday's trade at $6.62.
FelCor Lodging Trust Inc. - Under pressure over rates
FelCor Lodging Trust Inc. (FCH | Quote | Chart | News | PowerRating), whose third-quarter profit fell more than one-third as revenue per available room slid nearly 18%, also revised down its full-year 2009 outlook.
FelCor is a real estate investment trust and it owns upper-upscale, all-suite hotels. The company owns interests in 87 hotels and resorts, located in 23 states in the U.S. and Canada.
With no widespread improvement in demand trends as yet and the shift of the customer mix continuing to pressure rates, the company slashed its outlook for the year.
For 2009, FelCor now expects net loss to be between $113 million and $111 million, wider than its previous loss forecast of $82 million-$74 million. The company now anticipates adjusted FFO per share to be between $0.31 and $0.34, down from its previous guidance of $0.74- $0.86 per share.
FCH gained nearly 7% in the past five days to close Friday's trading at $3.37.
Papa John's International Inc. - Tasty or not?
Papa John's International Inc. (PZZA | Quote | Chart | News | PowerRating) reported better-than-expected third-quarter profit Tuesday despite a 5.7% decline in revenue and increased its earnings guidance for 2009.
The company operates and franchises pizza delivery and carryout restaurants under the trademark "Papa John's" in the United States and internationally.
Looking ahead to 2009, Papa John's lifted its earnings outlook to $1.42-$1.46 per share from its prior forecast of $1.38-$1.44 per share. However, the revised outlook is well below analysts' estimate of $1.47 per share.
The projected earnings guidance excludes any impact from the consolidation of the results of BIBP cheese purchasing unit.
Pitney Bowes Inc. - Paints a bleak outlook
Pitney Bowes Inc. (PBI | Quote | Chart | News | PowerRating), which reported 5% higher profit and 12% lower revenue for its third-quarter Tuesday, lowered its outlook for 2009, considering the challenging business environment characterized by ongoing economic pressures, depressed mail volumes, and evolving customer behaviors.
Looking ahead to 2009, the provider of postal equipment and services to businesses narrowed its adjusted earnings per share outlook range to $2.19-$2.31 from its prior outlook of $2.15 to $2.35 per share. Wall Street analysts are looking for earnings of $2.25 per share. Analysts' estimates typically exclude one-time items.
Pitney now expects GAAP earnings per share from continuing operations in the range of $2.09 to $2.21, down from its prior guidance of $2.09-$2.29 per share.
The company foresees revenue for the year to decline by 5%-8% on a constant currency basis and 8%-11% on a reported basis. Previously, the company forecast revenue for the year to decline by 4%-7% on a constant currency basis and 7%-10% on a reported basis.
Based on strong cash flow performance year-to-date, the company raised its free cash flow guidance for 2009 by $50 million to a range of $750 million to $850 million.
PBI gained 2% in the past five days to close Friday's trading at $24.99.
Charles River Labs Intl Inc. - Hit by soft market
Charles River Laboratories International, Inc. (CRL | Quote | Chart | News | PowerRating), which reported lower third-quarter profit Tuesday, hurt by lower sales, reduced its guidance for the year citing the continuing soft market demand for its products and services, due to pharmaceutical and biotechnology clients' delayed spending on therapies in development.
Charles River Labs is a provider of solutions that advance the drug discovery and development process, including research models and associated services, and outsourced preclinical services.
Looking ahead to 2009, the company now expects non GAAP earnings to range between $2.28 and $2.32 per share, down from its prior outlook of $2.35-$2.47 per share. Analysts have a consensus earnings estimate of $2.31 per share.
Charles River Labs now foresees net sales for the year to decline 10%-11% from $1.34 billion reported in 2008. Earlier, the company was expecting net sales to decline 7%-9%. Wall Street analysts are looking for a 10.9% drop in sales for full year 2009.
CRL lost nearly 6% in the past five days to close Friday's trading at $34.39.
STEC Inc. - Slows Down
STEC Inc. (STEC | Quote | Chart | News | PowerRating), which reported better-than-expected third-quarter profit on higher revenue Tuesday, gave a disappointing outlook citing inventory surpluses at one of its largest customers, EMC Corp. (EMC | Quote | Chart | News | PowerRating).
The company warned that the first-quarter 2010 orders of Zeus IOPS drives from its customer -- EMC will be negatively affected. EMC has informed that it would carry over inventory of STEC's Zeus IOPS at the end of 2009 into 2010. EMC accounts for about 90% of STEC's business for the Zeus IOPS drives.
For the fourth-quarter of 2009, the company anticipates non-GAAP earnings per share to range between $0.51 and $0.53. STEC also forecast fourth-quarter revenue in the range of $101 million to $103 million. Wall Street analysts are looking for earnings of $0.51 per share on revenue of $101.78 million.
While analysts expected some inventory build by the first quarter of 2010, the glut of inventory in the third quarter of 2009 came as a complete surprise to analysts and investors.
As recently as August 3, 2009, STEC's corporate insiders, including Manouch Moshayedi, the company's CEO and Chairman of the Board, and his son, Mark Moshayedi, its President, COO, Chief Technical Officer and Secretary, sold off as many as 10.35 million shares of their privately held STEC shares in a registered Secondary Offering, to realize gross proceeds of approximately $320.85 million, prior to any disclosure regarding the severe inventory build up at EMC.
STEC lost 38% in the past five days to close Friday's trading at $13.13. Following the huge sell-off, law firms have initiated an investigation into whether STEC violated federal securities laws by issuing false and misleading statements to its shareholders.
Whole Foods Market Inc. - Tables an insipid outlook
Whole Foods Market Inc. (WFMI | Quote | Chart | News | PowerRating) which reported better-than-expected fourth-quarter profit and 2% revenue growth Wednesday, issued an unappetizing outlook for fiscal 2010.
The upscale grocery chain has warned that with no anticipated positive change in the economy over the short term, increased price investments could negatively impact its sales going forward.
Looking ahead to fiscal 2010, the company anticipates earnings to range between $1.05 and $1.10 per share. In the past seven days, analysts have lowered their earnings estimate for the year to $1.08 per share from $1.10 per share.
Whole Foods foresees sales growth of 5% to 8%, comparable store sales growth of 1% to 4%, and identical store sales growth of 0% to 3% in fiscal 2010. Analysts are looking for sales growth of 6.2%.
WFMI lost nearly 12% in the past five days to close Friday's trading at $28.25.
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