Uploaded by FinancialNewsOnline on Dec 1, 2011
This is what's in the news for Thursday, December 1st. The Wall Street Journal reports the world's major central banks launched a joint action to provide cheap, emergency U.S. dollar loans to banks in Europe and elsewhere, a sign of growing alarm among policy makers about stresses in Europe and in the global financial system. The Wall Street Journal also reports AT&T (NYSE:T) and Deutsche Telekom (PINK:DTEGY) discussed forming a joint venture if their current acquisition deals falls through. Reuters reports Bankruptcy will help American Airlines (NYSE:AMR) cut costs, but Chapter 11 is not a solution for its operational problems that pushed the airline off its top position among U.S. carriers to number three. Finally, Bloomberg reports a record cotton crop and declining consumption will result in higher stockpiles worldwide, the most since 2005, and further declines in its price.
Lululemon Athletica (NASDAQ:LULU) Reported Mixed Earnings For Q3, Rose 31% Year-Over-Year (potential upside of 12.4%)
Lululemon Athletica (NASDAQ:LULU) Reported Mixed Earnings For Q3, Rose 31% Year-Over-Year (potential upside of 12.4%)
Uploaded by FinancialNewsOnline on Dec 1, 2011
Lululemon (NASDAQ:LULU) reported fiscal third quarter earnings of $0.27 up from $0.25 expected. Revenues for the quarter rose 31% year-over-year to $230.20 million, missing consensus estimates of $235.74 million.
Christine Day, lululemon's CEO stated: "We are proud to have produced another very healthy quarter of financial results. In the third quarter we achieved year over year revenue growth of 31%, EPS growth of 50% and comparable sales per square foot of $1,880. We are set to finish 2011 with a stronger brand, a stronger organization and we remain focused on our strategic growth opportunities."
Lululemon Athletica (NASDAQ:LULU) has potential upside of 12.4% based on a current price of $49.7 and an average consensus analyst price target of $55.87.
Christine Day, lululemon's CEO stated: "We are proud to have produced another very healthy quarter of financial results. In the third quarter we achieved year over year revenue growth of 31%, EPS growth of 50% and comparable sales per square foot of $1,880. We are set to finish 2011 with a stronger brand, a stronger organization and we remain focused on our strategic growth opportunities."
Lululemon Athletica (NASDAQ:LULU) has potential upside of 12.4% based on a current price of $49.7 and an average consensus analyst price target of $55.87.
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Starbucks (NASDAQ:SBUX) to Create 5,000 Jobs in the U.K. (potential upside 12.1%)Uploaded by FinancialNewsOnline on Dec 1, 2011
Starbucks Coffee U.K. (NASDAQ:SBUX) announced its intent to create thousands of new jobs as it significantly steps up its drive-thru program following three years of development and strong customer response to the convenience of Starbucks coffee on-the-go.
The move will see 200 new drive-thru stores opened over the next five years and will establish Starbucks as the market leader in this area. Combined with openings of conventional stores over the same period, the company expects to create 5,000 new jobs.
Starbucks (NASDAQ:SBUX) has potential upside of 12.1% based on a current price of $43.48 and an average consensus analyst price target of $48.75.
The move will see 200 new drive-thru stores opened over the next five years and will establish Starbucks as the market leader in this area. Combined with openings of conventional stores over the same period, the company expects to create 5,000 new jobs.
Starbucks (NASDAQ:SBUX) has potential upside of 12.1% based on a current price of $43.48 and an average consensus analyst price target of $48.75.
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Initial Jobless Claims Rise Unexpectedly to Over 400,000 Uploaded by FinancialNewsOnline on Dec 1, 2011
New claims for unemployment benefits rose last week, going over 400,000 for the first time in just over a month, beating economist expectations and reinforcing the view the labor market is healing slowly.
The Labor Department reported initial claims increased by 6,000 to a seasonally adjusted 402,000. Last week's claims came in at an upwardly revised 396,000. Economists had expected claims to come in at around 390,000.
The average of new claims over the past four weeks increased by 500 to 395,750. Continuing claims climbed by 35,000 to 3.74 million. A total of just over 7 million people received some kind of state or federal benefit in the week ended November 12.
Initial claims below 400,000 mark are normally seen as pointing to some healing in the job market.
The Labor Department reported initial claims increased by 6,000 to a seasonally adjusted 402,000. Last week's claims came in at an upwardly revised 396,000. Economists had expected claims to come in at around 390,000.
The average of new claims over the past four weeks increased by 500 to 395,750. Continuing claims climbed by 35,000 to 3.74 million. A total of just over 7 million people received some kind of state or federal benefit in the week ended November 12.
Initial claims below 400,000 mark are normally seen as pointing to some healing in the job market.
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Uploaded by FinancialNewsOnline on Dec 1, 2011
The New York Post has learned that New York State watchdogs are probing Apple's (NASDAQ:AAPL) deal for a new store in Grand Central Terminal and whether the MTA gave Apple "overly generous terms" on its lease for the store.
The Post previously reported that Apple will be the only retailer in Grand Central Terminal not required to make revenue-sharing payments to the agency landlord.
Apple (NASDAQ:AAPL) has potential upside of 33.1% based on a current price of $382.2 and an average consensus analyst price target of $508.73.
The Post previously reported that Apple will be the only retailer in Grand Central Terminal not required to make revenue-sharing payments to the agency landlord.
Apple (NASDAQ:AAPL) has potential upside of 33.1% based on a current price of $382.2 and an average consensus analyst price target of $508.73.
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Uploaded by FinancialNewsOnline on Dec 1, 2011
Barnes and Noble (NYSE:BKS) reported Q2 loss of $0.11, missing analyst estimates of $0.05. Revenues for the quarter fell 0.6% to $1.89 billion, missing consensus estimates of $1.98 billion.
The company expects full year EBITDA to be at the lower end of the previously issued range of $210-250 mln. Although the co has seen and continues to expect increases in retail earnings from plan, it plans to invest more heavily in customer acquisition activities to fuel NOOK digital growth.
Barnes & Noble (NYSE:BKS) has potential upside of 2.1% based on a current price of $17.44 and an average consensus analyst price target of $17.8.
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Societe Generale to Cut 200 U.S. Jobs and Sell Assets
The company expects full year EBITDA to be at the lower end of the previously issued range of $210-250 mln. Although the co has seen and continues to expect increases in retail earnings from plan, it plans to invest more heavily in customer acquisition activities to fuel NOOK digital growth.
Barnes & Noble (NYSE:BKS) has potential upside of 2.1% based on a current price of $17.44 and an average consensus analyst price target of $17.8.
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Societe Generale to Cut 200 U.S. Jobs and Sell Assets
Uploaded by FinancialNewsOnline on Dec 1, 2011
The second largest French bank Societe Generale (PINK:SCGLY) is making some cuts to employees and selling assets.
Bloomberg reports, citing people familiar with the matter, that the bank will eliminate 200 U.S. positions in investment and corporate banking, amounting to as much as 10 to 20 percent of its American workforce.
Societe Generale is also said its planned sale of billions of euros in aircraft, shipping and real-estate loans is ongoing. The sale is meant to cut debt and shrink the bank's balance sheet to cope with tougher regulations and higher funding costs. Some sources have said the sale could be as much as 600 million euros or around $807.69 million.
Bloomberg reports, citing people familiar with the matter, that the bank will eliminate 200 U.S. positions in investment and corporate banking, amounting to as much as 10 to 20 percent of its American workforce.
Societe Generale is also said its planned sale of billions of euros in aircraft, shipping and real-estate loans is ongoing. The sale is meant to cut debt and shrink the bank's balance sheet to cope with tougher regulations and higher funding costs. Some sources have said the sale could be as much as 600 million euros or around $807.69 million.
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MasterCard (NYSE:MA) Makes Investment in mFoundry (potential upside of 6.7%)
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MasterCard (NYSE:MA) has made a strategic investment in mFoundry, a seven-year-old mobile banking start-up, All Things Digital reports. Intel Capital (NASDAQ:INTC) and Motorola Mobility (NYSE:MMI) also participated in the round, and previous investors include PayPal (NASDAQ:EBAY) and Bank of America (NYSE:BAC).
Ed McLaughlin, chief emerging payments officer, MasterCard said, "This collaboration with mFoundry is going to allow more banks, credit unions and mobile phone operators around the world to offer their customers the convenience and security of MobilePayPass. By using the power of a smartphone, consumers can simply tap and pay for goods and services."
MasterCard (NYSE:MA) has potential upside of 6.7% based on a current price of $374.55 and an average consensus analyst price target of $399.64.
Ed McLaughlin, chief emerging payments officer, MasterCard said, "This collaboration with mFoundry is going to allow more banks, credit unions and mobile phone operators around the world to offer their customers the convenience and security of MobilePayPass. By using the power of a smartphone, consumers can simply tap and pay for goods and services."
MasterCard (NYSE:MA) has potential upside of 6.7% based on a current price of $374.55 and an average consensus analyst price target of $399.64.
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Hewlett-Packard Upgraded by Pacific Crest
Uploaded by FinancialNewsOnline on Dec 1, 2011
Hewlett-Packard (NYSE:HPQ) was upgraded to Sector Perform from Underperform at Pacific Crest. The stock closed yesterday at $27.95 on volume of over 36 million shares, above the average daily volume of just over 19 million.
In the past 52-weeks, shares of Hewlett-Packard have traded between a low of $21.50 and a high of $49.39 and are now at $27.95, which is 30% above that low price.
Hewlett-Packard is currently above its 50-day moving average (MA) of $25.68 and should find resistance at its 200-day MA of $33.59.
In the past 52-weeks, shares of Hewlett-Packard have traded between a low of $21.50 and a high of $49.39 and are now at $27.95, which is 30% above that low price.
Hewlett-Packard is currently above its 50-day moving average (MA) of $25.68 and should find resistance at its 200-day MA of $33.59.
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The Kroger Company (NYS:KR) Bested Esttimates For Q3, Rose 10.3% Year-Over-Year (potential upside 8.8%)
Uploaded by FinancialNewsOnline on Dec 1, 2011
The Kroger Company (NYS:KR), reported Q3 EPS of $0.33, better than analyst estimates of $0.32 per share. Revenues for the quarter rose 10.3% year-over-year to $20.60 billion, better than consensus estimates of $20.41 billion.
David B. Dillon, Kroger's chairman and chief executive officer said, "Kroger had an outstanding third quarter. Our associates delivered on our Customer 1st strategy and we had strong sales and earnings per share growth. This is exactly the positive momentum we strive for as we enter the holiday season, our most exciting time of the year. Based on the consistency of our results, we have the confidence to raise our earnings guidance for the year."
Kroger (NYSE:KR) has potential upside of 8.8% based on a current price of $23.18 and an average consensus analyst price target of $25.21.
David B. Dillon, Kroger's chairman and chief executive officer said, "Kroger had an outstanding third quarter. Our associates delivered on our Customer 1st strategy and we had strong sales and earnings per share growth. This is exactly the positive momentum we strive for as we enter the holiday season, our most exciting time of the year. Based on the consistency of our results, we have the confidence to raise our earnings guidance for the year."
Kroger (NYSE:KR) has potential upside of 8.8% based on a current price of $23.18 and an average consensus analyst price target of $25.21.
