WSJ reports that, responding to a July rumor that Credit Suisse planned to pull a line of credit to Lehman Brothers (LEH), Federal Reserve officials called to see if it was in fact true, people familiar with matter said. Credit Suisse told Fed officials there was no truth to rumor and it had no intention of pulling line of credit, the people said. Separately, FT reports LEH held secret talks to sell up to 50% of its shares to South Korean or Chinese parties in the first week of August but failed to reach deal with either.
JDS Uniphase (JDSU) posts $0.01, vs. $0.04, fourth quarter operating EPS despite 11% revenue rise. Sees first quarter fiscal year 2009 revenues of $378-$394 million. S&P says results below its estimate, lowers target, maintains hold. RBC cuts estimates, target.
Ambac Financial Group (ABK) falls 0.22 to 5.00. S&P cuts target price, maintains sell on ABK. Continues to believe ABK's structured credit unit is likely to incur outsized losses.
Barnes & Noble (BKS) posts $0.27 (including benefit), vs. $0.26, second quarter EPS on 4.7% same-stores sales drop at Barnes & Noble stores, 1.6% total sales drop. Notes impact in last year's Q2 from record sales of Harry Potter and the Deathly Hallows. Sees third quarter same-store sales at Barnes & Noble stores down in low single digits, third quarter loss of $0.10 to $0.15. Reduces fiscal year 2009 same-store sales guidance from slightly negative to decrease in low single digits, but reiterates 2009 EPS guidance of $1.70-$1.90. S&P maintains hold.
Children's Place Retail Stores (PLCE) posts $0.09 second quarter EPS from continuing operations, vs. $0.68 loss, on 9% higher same-store sales, 16% higher total sales.
Synopsys (SNPS) posts $0.44, vs. $0.32, third quarter non-GAAP EPS on 13% revenue rise. Posts GAAP EPS of $0.39, vs. $0.17. Sees fourth quarter revenue of $348-$356 million, non-GAAP EPS of $0.36-$0.39, fiscal year 2008 revenue of $1.332-$1.340 billion and non-GAAP EPS $1.65-$1.68. Citigroup reportedly downgrades to sell from buy.
Heinz (HNZ) posts better-than-expected $0.72, vs. $0.63, first quarter EPS on 15% revenue rise. Street was looking for $0.66. Raises fiscal year 2009 EPS forecast to upper half of its previously announced range of $2.83-$2.91; new EPS range is projected to be $2.87-$2.91.
Hormel Foods (HRL) posts $0.38, vs. $0.41, third quarter EPS as higher feed input and fuel costs at its Jennie-O Turkey Store segment offset 10% sales rise. Sees $2.22-$2.28 fiscal year 2008 adjusted EPS.
Limited Brands (LTD) posts better-than-expected $0.30, vs. $0.67, second quarter EPS (including items) on 7% same-store sales decline, absence of year-ago gain on divestiture, narrow gross profit. Total sales fell 12%. Sees breakeven to $0.04 third quarter EPS, fiscal year 2009 EPS of $1.45-$1.60, excluding first half significant items of $0.20 per share.
Dick's Sporting Goods (DKS) posts $0.39 (excluding costs related to Golf Galaxy integration), vs. $0.41 a year ago, second quarter EPS on 3.7% lower same-store sales (SSS), 7% higher total sales. Says second quarter EPS results exceeded prior guidance of $0.34-$0.38. Street was looking for $0.36. Sees $0.04-$0.08 third quarte EPS (excluding Golf Galaxy), 2%-5% SSS decline, $1.27-$1.36 fiscal year 2009 EPS (excluding Golf Galaxy), 3%-5% SSS decline.
Longs Drug Stores (LDG) posts $0.76, vs. $0.67, second quarter EPS from continuing operations on 4.6% higher total revenue. Same-store sales fell 1.