Freddie Mac (FRE) cuts quarterly dividend by 50% to $0.25 per share. The mortgage lender announces that it will issue $6 billion of non-cumulative perpetual preferred stock. The issuance will involve a larger offering of non-convertible non-cumulative perpetual preferred stock, and a substantially smaller offering of convertible non-cumulative perpetual preferred stock. S&P maintains sell.
Wells Fargo (WFC) says it will take a special fourth quarter provision of $1.4 billion (pre-tax), largely for higher losses it now expects in certain indirect channels through which it no longer is accepting business.
CBRL Group (CBRL) posts first quarter EPS from continuing operations of $0.57, vs. $0.45 a year ago, on 1.8% higher same-store sales at Cracker Barrel Old Country Stores, 4.1% higher total sales. It sees 3% to 4% fiscal year 2008 revenue growth, $3.00-$3.15 EPS from continuing operations. Morgan Keegan keeps market perform.
Target (TGT) - Late yesterday, Moody's Investors Service downgraded the long-term credit rating to A2 from A1. Moody's says rating action reflects its view of weakened debt protection measures Target will have due to increased debt incurred to repurchase up to $10 billion in shares over next three years.
Analog Devices (ADI) posts $0.39 fourth quarter non-GAAP EPS from continuing operations, vs. $0.35 a year ago, on about 6% higher revenue from continuing operation. The $0.39 fourth quarter non-GAAP EPS excludes $0.08 of one-time items. The chip maker expects first quarter revenue from continuing operations to be in range of +2% to -2% from fourth quarter levels, sees EPS from continuing operations in the $0.38-$0.42 range, excluding gains from the sales of divested businesses.
Sonic Solutions (SNIC) says it will have to record additional cash and non-cash charges for stock-based compensation expense and restate its previous financial statements, and that such charges will be material. It posts second quarter net revenue (GAAP) of $32.3 million. It sees $33-$35 million third quarter revenue. S&P reiterates sell.
Dollar Tree Stores (DLTR) posts $0.38 third quarter EPS, vs. $0.32 a year ago, on 1.9% higher same-store sales, 9.6% higher total sales. It expects fourth quarter sales to be in range of $1.31-$1.35 billion and EPS to be in range of $0.99-$1.06; now forecast fiscal year 2008 sales to be in range of $4.25-$4.29 billion and EPS in range of $2.06-$2.13.
Marvell Technology Group (MRVL) posts $0.01 third quarter GAAP loss per share, vs. $0.01 EPS a year ago, as higher operating expenses offset 46% revenue rise. Non-GAAP third quarter EPS is $0.14 vs. $0.12. Also plans to cut about 400 jobs worldwide, about 7% of company's workforce and take a related $8 million fourth quarter restructuring charge.
Dress Barn (DBRN) posts $0.30 first quarter EPS, vs. $0.40 a year ago, on 3% lower same-store sales, 1.5% higher total sales. It reaffirms its recently announced guidance of $1.25 to $1.35 for fiscal year 2008.
Brown Shoe (BWS) posts $0.61 third quarter EPS (GAAP), vs. $0.62 a year ago, on 4.6% sales drop. It sees fourth quarter sales of $595-$605 million vs. $693.3 million last year, $0.36-$0.41 EPS vs. $0.31 last year. It sees fiscal year 2008 sales of $2.38-$2.39 billion, EPS of $1.40-$1.45 (both EPS forecasts including costs, charges).
Panera Bread (PNRA) authorizes repurchase of up to $75 million of its Class A common stock.
Herman Miller (MLHR) raises second quarter EPS guidance to $0.56-$0.63 (excluding charge) on sales near or slightly above the top-end of previous guidance of $475-$500 million. Raises long-term operating income target to 13% of sales.
QLT Inc. (QLTI) says its Board of Directors has formed a special committee to review all strategic alternatives available to the company. Committee has been charged with responsibility for exploring alternative ways to maximize shareholder value, including transactions involving the sale of all or part of the assets of the company.