Tuesday's Winners & Losers: Talbots
Shares of Pepsi Bottling Group (PBG) rose 4% after the distributor of Pepsi products posted better-than-expected second-quarter results and increased its full-year volume growth forecast. The company reported second-quarter earnings of $148 million, or 61 cents a share, on revenue of $3.14 billion. Analysts expected earnings of 59 cents a share on revenue of $3.04 billion. Excluding stock-based compensation costs of 4 cents a share and a 3-cent expense related to the devaluation of the Turkish lira, the company would have earned 69 cents a share. A year earlier, the company earned $148 million, or 59 cents a share, on revenue of $2.86 billion.
Pepsi Bottling now sees 2006 worldwide volume growth of about 4% and U.S. volume growth of about 3%. The company projects 2006 earnings of $1.82 to $1.88 a share. Analysts project earnings of $1.86 a share. On an adjusted basis, the company anticipates 2006 earnings of $2 to $2.06 a share. Pepsi Bottling now sees free cash flow of $510 million to $530 million for the entire year. Shares were trading up $1.26 to $33.61.
Williams-Sonoma (WSM) fell 5% after the home-goods retailer cut its second-quarter revenue guidance and said its chief executive will retire. The company now estimates second-quarter revenue of $823 million to $837 million, down from an earlier view of $842 million to $856 million. Analysts project revenue of $849.1 million. The company projects earnings of 25 cents to 27 cents a share, up from an earlier forecast of 20 cents to 22 cents a share. Analysts forecast earnings of 23 cents a share.
"Although the second quarter is turning out to be more challenging on the top-line in the Pottery Barn brand than we previously expected, we are extremely pleased with the financial benefits that we are realizing from our ongoing operational and cost-containment initiatives," the company said. For the full year, Willams-Sonoma now sees earnings, including items, of $1.97 to $2.01 a share, up from an earlier view of $1.91 to $1.95 a share. Analysts project earnings of $1.97 a share.Separately, Williams-Sonoma said that CEO Ed Mueller will retire Friday. He'll remain as a director until the end of his term in May 2007. Chairman Howard Lester, meanwhile, will take over for Mueller. Lester, who will continue to serve as chairman, previously served as CEO from 1979 to 2001. Williams-Sonoma shares were trading down $1.58 to $31.97.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV