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Updated 03-Sep-10
Quotes at time of story, top stories today:
FNSR Issues Upside Q2 Guidance
Finisar (FNSR 15.54 +1.93) reported first quarter earnings of $0.31 per share, $0.08 better than the Thomson Reuters consensus of $0.23.
Revenues rose 61.5% year-over-year to $207.8 million, above the $201.1 million consensus.
For the second quarter, the company expects to see revenue in the range of $215 million to $230 million versus the $206.21 million Thomson Reuters consensus. On a GAAP basis, operating margin is expected to exceed 11.5%.
CPB Issues In-line FY11 Guidance
Campbell Soup (CPB -2.6%) reported fourth quarter earnings of $0.30 per share, excluding non-recurring items, in-line with the Thomson Reuters consensus of $0.30.
Revenues fell 0.7% year-over-year to $1.52 billion versus the $1.59 billion consensus; increased promotional spending subtracted 2%, currency added 1%.
For its fiscal year 2011, the company sees earnings within its long-term target range of +5% to 7% to approx. $2.59 to $2.64 per share, excluding non-recurring items, versus $2.64 Thomson Reuters consensus. Revenues are expected to grow 2% to 3%, which calculates to approx. $7.83 billion to $7.91 billion versus the $7.91 billion Thomson Reuters consensus.
Solid Employment Report Alleviates Some Fears About Double-Dip Recession
While the labor market is certainly struggling as the U.S. expansion continues , the evidence from the Employment Situation reports over the last few months clearly suggests that there is a very low probability of a double-dip recession.
In all, the August employment report was quite positive and should buoy hopes of a stronger recovery.
Net private payrolls have been positive each month since January, including a more than expected 67,000 increase in August. The Briefing.com consensus called for a 44,000 increase during the month.
Since January, private payroll gains have averaged 95,375. This level is still less than the 100,000 or so needed to support normal labor force growth, but given the severity of the recession it will instill positive support in the recovery by supplying added income into the economy.
Total nonfarm payrolls declined 54,000 in August, also above the consensus forecast of -120,000 during the month. Temporary census workers accounted for 114,000 of the decline, which left a 7,000 decline in payrolls for the rest of the government sector.
Even more important than the growth in private payrolls, average hourly earnings increased 0.3%. The strength in wages will support higher consumption levels over the next month or so.
The unemployment rate increased from 9.5% to 9.6%, exactly what the consensus expected.
Under normal circumstances, an increase in the unemployment rate would be looked at as a bad sign. However, the recession created a strong movement of discouraged workers fleeing the labor force. In August, the number of discouraged workers declined as the labor force increased by 0.4%. Therefore, the increase in the unemployment rate can be looked at as an encouraging sign of workers believing jobs are becoming more available.
The only negative caveat to the report was a 3.9% increase in the number of employed persons working part time for economic reasons. While these workers added to the payroll gains during the month, growth in the underemployed over the long term will put downward pressures on wages and will hold back potential increases in consumption and investment.
ULTA Issues Mixed Q3 Guidance
Ulta Salon (ULTA 24.79 +2.56) reports second quarter earnings of $0.22 per share, $0.04 better than the Thomson Reuters consensus of $0.18.
On the top line, revenues rose 17.6% year-over-year to $321.8 million, above the $314.9 million consensus.
For the third quarter, the company issued earnings guidance of $0.18 to $0.20 per share, better than the $0.16 Thomson Reuters consensus. On the top line, the company expects revenue to be in range of $324 million to $330 million versus the $324.87 million Thomson Reuters consensus.
TTWO Raises Q4 Guidance
Take-Two (TTWO 8.85 ) reported third quarter earnings of $0.28 per share, excluding non-recurring items, $0.36 better than the Thomson Reuters consensus of ($0.08).
Revenues rose 273.1% year-over-year to $354.1 million versus the $298.1 million consensus.
For the fourth quarter, the company raised its guidance. The company raised its earnings guidance to $0.20 to $0.30 per share, excluding non-recurring items from ($0.10)-(0.20) vs. ($0.12) Thomson Reuters consensus. On the top line, the company; raised its revenue guidance to $270 million to $320 million from $200 million to $250 million versus the $238.90 million Thomson Reuters consensus.
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