The third-quarter earnings season is just about over and following are a few companies which provided outlook during the week ended November 13.
Home Inns & Hotels Management - On the rebound
Home Inns & Hotels Management Inc. (HMIN), whose third-quarter net income nearly tripled from last year helped by 38% revenue growth Monday, revised up its revenue growth guidance for 2009, reflecting the impact from the continued improvement in economic and operating environment in China.
Looking ahead to the fourth-quarter, Home Inns expects its total revenues to be in a range of RMB 675 million (US$ 98.9 million) to RMB 695 million (US$ 101.8 million).
For the full year of 2009, the Shanghai-based economy hotel operator now expects its total revenues to grow between 37%-39% over 2008, an increase from its prior guidance growth of 33%-35%. In 2008, the company reported total revenues of RMB 1.87 billion (US$274 million).
According to the company, RevPAR levels (revenue per available room) have risen above last year's benchmarks for the first time in 2009, and margins have also improved despite adjustments for pre-opening costs. The company believes that a re-acceleration of its expansion plans at a growth rate that ensures success and profitability is a sensible and effective strategy towards the end of the year and into 2010.
HMIN gained 10% in the past five days to close Friday's trading at $35.44.
Silvercorp Metals Inc. - Not tarnished
Silvercorp Metals Inc. (SVM), which reported 83% higher earnings and nearly 25% higher sales in its second-quarter Monday, also backed its annual production forecast for fiscal 2010, ending March 31, 2010.
During the quarter, the Canadian silver producer experienced improvement in cash cost per ounce of silver and higher realized by-products prices.
The company reaffirmed its production forecast of 410,000 tonnes for fiscal 2010. By focusing on mine development at the TLP, LM and HPG mines, where development activities were partially resumed in May 2009, the company expects an additional 0.2 million to 0.5 million ounces of silver to be produced from these mines for the remainder of the year, bringing consolidated silver production for the entire fiscal year to 4.7 million to 5.0 million ounces.
SVM gained 2% in the past five days to close Friday's trading at $6.05. The stock set a new 52-week high of $6.20 during the week.
DigitalGlobe Inc. - Clear visibility
Satellite imagery company DigitalGlobe Inc. (DGI), which reported better-than-expected third-quarter earnings and 8% higher revenues Monday, raised its full year outlook, reflecting continued momentum across its key customer segments.
For full year 2009, the company now expects to earn between $1.00 and $1.05 per share, up from its previous expectation of $0.80-$0.90 per share. Analysts have raised their profit projections for the year by 7 cents to $1 per share within the past seven days.
DigitalGlobe boosted its revenue forecast for the year to a range of $278 million-$283 million from its prior guidance of $267 million-$277 million. The revised forecast is higher than analysts' consensus revenue estimate of $277.53 million.
The company also lowered its capital expenditure guidance for 2009 to range between $165 million and $170 million from its previous outlook of $170 million-$180 million.
DigitalGlobe said that the launch of its satellite -- WorldView-2 was successful and commissioning is progressing on plan. The imagery from WorldView-2 is expected to be commercially available approximately 90 days following the launch.
DGI gained 10% in the past five days to close Friday's trading at $25.04.
Fluor Corp. - Trims outlook
Fluor Corp. (FLR), whose third-quarter earnings fell 11% due to lower revenue driven by decreases in the Oil & Gas and Power segments Monday, also pared its full-year 2009 profit outlook.
For full year 2009, the engineering and construction management company trimmed its earnings guidance to a range of $3.75 to $3.90 per share from its prior outlook of $3.80-$4.10 per share. The company blamed the collection issue on the paper mill project, along with the impact of recent cancellations, scope reductions and delays for the lowered guidance. Wall Street analysts are looking for earnings of $3.82 per share.
Looking ahead to 2010, the company foresees earnings in a range of $3.20 to $3.60 per share. Analysts have a consensus earnings estimate of $3.43 per share.
FLR lost over 6% in the past five days to close Friday's trading at $43.24.
Priceline.com Inc. - Flying high
Priceline.com Inc. (PCLN), which reported a more than three-fold rise in third-quarter profit helped by nearly 33% increase in gross travel bookings Monday, forecast fourth-quarter earnings well above then analysts' estimates, which has since been revised.
For the fourth-quarter, the online travel services company expects net income, excluding items, to range between $1.52 and $1.62 per share. Analysts bullish on the company have raised their profit estimates for the fourth-quarter by 15 cents to $1.64 per share within the past seven days.
The company forecast revenue growth of approximately 24% to 28% for the quarter. This implies to revenue of $501.4 million to $519.7 million. Analysts have a consensus revenue estimate of $523.88 million, which equates to revenue growth of 29%.
Priceline.com anticipates total gross travel bookings for the quarter to increase 30%-40% over last year.
The company said it intends to continue to focus on building out its global brands and hotel platform, adding additional supply, integration initiatives and innovation to support the long-term growth of the business.
According to Priceline.com, its average holiday airfares for Thanksgiving and the December holidays are getting more expensive.
PCLN gained 15% in the past five days to close Friday's trading at $201.93.
Silver Wheaton Corp. - Firming up
Silver Wheaton Corp. (SLW), which reported 65% earnings growth and 77% higher sales for its third-quarter Monday, said it expects its status as the largest of all metals streaming and royalty companies in the world to be further strengthened in the coming years.
As recently as November 4, Goldcorp Inc. (GG) announced that it has commenced shipments of the first silver-bearing lead and zinc concentrates produced at its Penasquito mine in Mexico. In April 2007, Silver Wheaton agreed to purchase 25% of all the silver produced from Peñasquito, over its entire mine life.
In September of this year, Silver Wheaton acquired 25% of the life of mine silver production from Barrick Gold Corp's Pascua-Lama project for U.S.$625 million, as well as the equivalent of 100% of the silver production from its Lagunas Norte, Pierina and Veladero mines until the end of 2013.
The Pascua-Lama project, on the border of Chile and Argentina, is expected to become one of the gold industry's largest and lowest cost mines. Pascua-Lama is anticipated to have a mine life of over 25 years based on proven and probable reserves of 17.8 million ounces of gold and 718 million ounces of silver contained within gold reserves.
For fiscal 2009, Silver Wheaton expects production of 16 million ounces of silver and 17,000 ounces of gold, for total production of 17 million silver equivalent ounces. By fiscal 2013, annual production is anticipated to more than double to about 39 million ounces of silver and 20,000 ounces of gold, for total production of approximately 40 million silver equivalent ounces.
SLW gained nearly 4% in the past five days to close Friday's trading at $15.20.
Chipotle Mexican Grill Inc. - Serves tasty delight
Chipotle Mexican Grill Inc. (CMG) on Monday said the repurchases of its Class B common stock, or single class of common stock are slated to commence on November 11, 2009, and will be effected from time to time in open market transactions, subject to market conditions.
According to the company, the repurchases will be limited to a total aggregate purchase price of $100 million, exclusive of commissions.
Last month, the fast-casual Mexican restaurant chain reported better-than-expected third-quarter profit helped by higher revenues and an increase in comparable restaurant sales growth. In the just-reported third-quarter, the fast food chain earned $34.5 million or $1.08 per share, up from $19.5 million or $0.59 per share in the year-ago quarter. The revenue for the quarter increased nearly 14% to $387.6 million.
CMG gained over 2% in the past five days to close Friday's trading at $88.86.
Pan American Silver Corp. - Retains luster
Pan American Silver Corp. (PAAS) (PAA.TO), which reported nearly a three-fold rise in net income, helped by strong production and higher metals prices Tuesday, said it is confident of comfortably meeting its forecasted annual production target.
For 2009, the Canadian miner expects production of 21.5 million ounces of silver and 85,000 ounces of gold for 2009, excluding production from its Quiruvilca mine. The estimated silver production represents an increase of 15% and the estimated gold production represents nearly double the gold production compared to 2008.
Pan American Silver also forecast cash costs for the full year in 2009 below the previously announced guidance of about $6.00 per ounce of silver. Lower the cash cost, greater will be the profit potential for a miner.
PAAS gained 3.5% in the past five days to close Friday's trading at $24.15.
Fossil Inc. - In high style
Fossil Inc. (FOSL) whose third-quarter earnings declined 3% and sales dropped nearly 7%, raised its earnings and sales expectations for the fourth-quarter and full year of 2009 Tuesday, citing the positive momentum in its direct to consumer and watch segments, coupled with a better currency environment.
For the fourth quarter of 2009, the manufacturer of consumer fashion accessories raised its earnings per share outlook to a range of $0.82-$0.86 from its prior guidance of $0.74-$0.80 per share. In the year-ago fourth-quarter, the company earned $0.69 per share. Following the company's revised outlook, analysts have also raised their profit estimate for the quarter within the past seven days by 7 cents to $0.85 per share.
At prevailing foreign currency rates, the company expects its fourth-quarter 2009 earnings per share estimate to be favorably impacted by approximately $0.17 as a result of the weaker U.S. dollar in comparison to the prior year fourth-quarter.
Fossil also forecast fourth-quarter net sales growth of 7% to 9% with constant dollar sales increasing in a range of 2% to 4%. Earlier, the company was expecting net sales in a range of flat to positive 3%. Wall Street analysts are looking for 8.3% sales growth.
Looking ahead to full year 2009, the company boosted its earnings guidance again to $1.85 - $1.89 per share, up from its prior revised forecast of $1.63 to $1.73 per share. This is the third time the company is raising its earnings outlook for the full year of 2009. In response, analysts have also raised their profit projection, pushing the consensus earnings estimate up by 18 cents to $1.88 per share.
FOSL gained 12% in the past five days to close Friday's trading at $32.06. The stock set a new 52-week high of $32.20 during the week.
ChinaCast Education Corp. - Hoping to get higher grades
ChinaCast Education Corp. (CAST), which reported 39% profit growth and 14% revenue growth in its third-quarter, helped by enrollment growth in its on-campus and e-learning accredited degree programs Monday, revised up its outlook for 2009.
The for-profit, post-secondary education and e-learning services provider in China now expects adjusted net income for the full year of 2009 to be at the upper end of its forecast range of $14 million-$16 million.
The company now foresees revenue for the year to be at the upper end of its guidance range of $49 million-$51 million. Analysts polled by Thomson Reuters have a consensus revenue estimate of $51.42 million.
Previously, the company was expecting adjusted net income to range between $14 million to $16 million and revenue in the range of $49 million to $51 million.
For the current academic year, which started in September 2009, the company increased its university enrollments from 11,000 to 12,200 on-campus students and 131,000 to 141,000 e-learning students from the start of the previous academic year.
The acquisition of Lijiang College of Guangxi Normal University, which was recently completed, adds an additional 9,000 students to ChinaCast's on-campus enrollments, further expanding its course offerings and geographic reach and will start contributing to the company's financials in the fourth quarter of 2009.
CAST gained over 9% in the past five days to close Friday's trading at $7.57.
China Digital TV Holding Co. Ltd. - A cloudy view
China Digital TV Holding Co., Ltd. (STV), which reported nearly 40% drop in profit and 28% decline in revenue for its third-quarter Tuesday, forecast a tepid outlook for the fourth quarter.
The company provides conditional access, or CA systems to digital television markets in the People's Republic of China.
For the fourth-quarter, China Digital TV expects smart card shipments to be in the range of 2.2 million to 2.4 million.
According to the company, Cable operators continued to postpone digital migration projects as they have been waiting for more clarity regarding potential consolidation of the Chinese cable television industry and television subscription fee adjustments in certain regions.
The company forecast net revenues for the quarter to range between US$12.5 million and US$13.6 million, representing a year-over-year decrease in the range of 25% to 19%. Wall Street analysts are looking for revenue of $13.13 million.
STV lost 14.5% in the past five days to close Friday's trading at $5.98.
Alliant Techsystems - Well-armed
Alliant Techsystems (ATK), which reported better-than-expected second-quarter profit helped by higher sales driven by continued strength in its Armament Systems and Mission Systems groups Wednesday, raised its outlook for fiscal 2010 again. This is the second time the company is boosting its outlook for the year based on its strong orders profile and better visibility into the year.
The defense contractor now expects earnings for fiscal 2010 to range between $8.60 and $8.75 per share, up from its previous revised guidance of $8.45-$8.60 per share. Analysts are bullish on fiscal 2010 earnings and within the past seven days have raised their estimate by 28 cents to $8.83 per share.
The company expects full-year sales to be in a range of $4.825 billion-$4.875 billion, up from its prior revised outlook of $4.80 billion-$4.85 billion. Wall Street analysts have a consensus revenue estimate of $4.87 billion.
Alliant Tech also expects to generate free cash flow of about $150 million for the year, up from previous expectations of $110 million- $130 million.
ATK gained nearly 6% in the past five days to close Friday's trading at $86.23.
Hewlett-Packard - Turing to the Orient
Hewlett-Packard (HPQ), which has ratcheted up rivalry with networking giant Cisco Systems Inc. (CSCO) by its acquisition of networking gear outfit 3Com Wednesday, raised its forecast for full fiscal year 2010.
HP sells computer hardware, network software, printers, and other technology and imaging products. The $2.7 billion acquisition of 3Com is expected to dramatically expand HP's Ethernet switching offerings, add routing solutions and significantly strengthen the company's position in China -- one of the world's fastest-growing markets - via the H3C offerings.
For the first quarter of fiscal 2010, HP expects GAAP earnings to range between $0.90 and $0.92 per share and non-GAAP earnings to range between $1.03 and $1.05 per share.
HP forecast revenue of about $29.6 billion to $29.9 billion for the first-quarter.
Analysts are looking for earnings of $1.04 per share and revenue of $29.70 billion for the first quarter of fiscal 2010.
Looking ahead to full fiscal year 2010, the company lifted its earnings outlook to a range of $3.65-$3.75 per share from its prior guidance of $3.60-$3.70 per share.
HP boosted its non-GAAP earnings outlook to a range of $4.25 to $4.35 per share, up from its previous estimate of $4.20 to $4.30 per share. Wall Street analysts have earnings estimate pegged at $4.31 per share. Analysts estimate typically exclude one-time items.
The company also raised its revenue outlook for full year fiscal 2010 to a range of $118 billion-$119 billion from its prior guidance of $117 billion-$118 billion. Wall Street analysts now have a consensus revenue estimate of $119.07 billion.
HPQ gained 1.7% in the past five days to close Friday's trading at $49.91.
3SBio Inc. - Hale and healthy
3SBio Inc. (SSRX), which reported stellar results for the third-quarter -- with net income soaring 1343.5% and net revenues increasing by 36% Thursday, backed its revenue outlook for full year of 2009.
EPIAO, an injectable recombinant human erythropoietin to increase the production of red blood cells in patients having anemia associated with renal failure and TPIAO, a recombinant human thrombopoietin, suitable for the thrombocytopenia associated with chemotherapy in cancer patients are the company's revenue drivers.
The China-based biotechnology company reiterated its total net revenue guidance of US$43 million-US$45 million, resulting in a year-over-year increase of approximately 21% to 26%.
SSRX closed Friday's trade at $11.29, unchanged from the opening price of Monday.
Medidata Solutions - Raises outlook
Medidata Solutions (MDSO), which reported a third-quarter profit, reversing a year-ago loss on 27% higher revenues Thursday, raised its outlook for the full year of 2009.
Medidata helps pharmaceutical, biotechnology, medical device and research organizations maximize the value of their clinical research investments by providing early visibility to reliable clinical data. The company went public in June of this year pricing its IPO at $14.00 per share.
For the fourth-quarter, the company expects GAAP net income of between $0.4 million and $1.4 million and non-GAAP net income in a range of $2.3 million and $3.3 million. The company forecast revenue in a range of $35.2 million-$36.2 million for the fourth-quarter.
Looking ahead to full year 2009, the company increased its GAAP net income to a range of $3.8 million-$4.8 million from its prior outlook of $0.0 million-$2.0 million. Medidata now anticipates non-GAAP net income for the year to range between $10.5 million and $11.5 million, up from its prior guidance of $6.5 million and $8.5 million.
The company also upped its revenue forecast for the year to a range of $138 million- $139 million from its prior outlook of $135 million-$137 million.
MDSO lost 3.5% in the past five days to close Friday's trading at $15.01.
AmerisourceBergen Corp. - Knows its ABCs
AmerisourceBergen Corp. (ABC) increased its quarterly dividend rate by 33% and authorized a new share repurchase program, effective immediately as a show of confidence in delivering long-term shareholder value.
The drug distributor has increased its quarterly dividend to $0.08 per common share, up from $0.06 per common share. The quarterly dividend will be payable December 7, 2009, to stockholders of record at the close of business on November 23, 2009.
According to AmerisourceBergen, the new $500 million share buyback plan, combined with $68.1 million remaining on the November 13, 2008 repurchase program provides the company with $568.1 million currently authorized for the repurchase of common shares.
The company expects to spend approximately $350 million to repurchase its common shares in fiscal year 2010. The company currently has about 288 million common shares outstanding.
ABC gained 3.5% in the past five days to close Friday's trading at $24.60.
Microsemi Corp. - Powering up
Microsemi Corp. (MSCC), which slipped to a loss in its fourth-quarter, hurt by lower sales and restructuring charges related to closure of its manufacturing facility in Scottsdale, forecast first-quarter outlook Thursday.
For the first-quarter of fiscal 2010, the manufacturer of integrated circuits and semiconductors expects non-GAAP earnings in a range of $0.24-$0.26 per share, in line with analysts' estimate range. Analysts have raised the profit estimates for the quarter, within the past seven days, by 1 cent to $0.25 per share.
Microsemi forecast first-quarter net sales growth of 1% to 4% over the just-reported fourth-quarter. Net Sales for the fourth quarter totaled $109.7 million. The outlook equates to sales of $110.79 million-$114 million. Wall Street analysts have a consensus revenue estimate of $112.20 million.
MSCC gained nearly 12% in the past five days to close Friday's trading at $15.44.
NIVS IntelliMedia Technology Group - Sees strong consumer demand
NIVS IntelliMedia Technology Group Inc. (NIVS), which posted 23% higher net income and 6% revenue growth in its third-quarter Thursday, said it anticipates strong demand for its consumer electronics products in China in the holiday season ahead.
NIVS IntelliMedia Technology Group is a U.S. public company and it owns 100% of NIVS Holding Co. Ltd, which owns 100% of NIVS International (H.K.) Ltd. and 97.5% of NIVS Audio & Video Tech Company Limited, also known as "NIVS PRC", the main operating company in the People's Republic of China.
For the full year 2009, NIVS, which markets audio and video products, backed its revenue outlook of $172 million to $186 million. The outlook equates to 20% to 30% revenue growth over 2008.
The company also reiterated that its full year 2009 net profit margin will remain firm in the historical range of 9%-10%.
NIVS lost 2.4% in the past five day's to close Friday's trading at $2.45.
China Agritech Inc. - Growing
China Agritech Inc. (CAGC), which reported nearly 65% increased net income and over 66% higher revenue in its third-quarter Thursday, boosted its profit outlook again for the full year of 2009.
For the full year of 2009, the company now expects net income of about $15.6 million or $2.25 per share, compared to its previous revised guidance of $12.5 million or $1.88 per share. This is the second time the company is revising up its earnings forecast.
The organic fertilizer manufacturer and distributor in China implemented a 1 for 4 reverse split of its common stock effective on September 8, 2009. The shares began trading on the NASDAQ Global Market on September 21, 2009. Prior to that the shares were traded on the OTC Bulletin Board under the symbol CTEC.
The Carlyle Group, through its affiliates holds about 16.5% of the issued and outstanding China Agritech common stock. Under an agreement with Carlyle Asia Growth Partners, the growth capital arm of The Carlyle Group, if China Agritech does not meet a net income target of $11.5 million for fiscal year 2009, The Carlyle Group affiliates will be issued additional shares of common stock and the initial warrant exercise price of $10.77 per share will be reduced, thereby resulting in additional warrant shares being issuable upon exercise of the warrants.
CAGC gained nearly 12% in the past five days to close Friday's trading at $18.01.
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