Emerson Electric Reduces 2009 Profit Forecast for the Second Time
revised its full-year 2009 profit forecast for the second time this year, citing lower spending by its customers across multiple business segments.
The St. Louis-based company, which makes a wide variety of commercial and industrial electrical devices, said that it now sees full-year 2009 earnings of $2.40 to $2.60 per share. On average, Wall Street analysts expect $2.47 per share. Emerson had previously revised its outlook in February to a range of $2.70 to $2.95 per share.
The company said it expects full-year sales to decline 9% to 11% from 2008 levels, also disclosing that sales fell 20% to 25% from December through February. Emerson said it plans to spend $1 billion in 2009 on acquisitions, while recording $200 million to $250 million in restructuring charges.
Despite the seemingly bad news, Emerson shares rose $1.12, or 3.68%, in late-morning trading Tuesday.
We had removed shares of EMR from our "Recommended" list back on Aug.18, when shares traded at $49.43. The company has a new dividend yield of 4.27%, based on last night's closing stock price of $30.89. The stock has technical support in the $22-$24 price area. If the shares can firm up, we see overhead resistance in the $35-$39 price area. We would remain on the sidelines for now.
Emerson Electric is not recommended at this time, holding a Dividend.com DARST Rating of 3.2 out of 5 stars.
Ventas Announces Public Offering, Reaffirms Guidance
Senior housing and health care REIT
on Monday announced a public offering of stock and senior notes.
The Louisville, Ky.-based company said it plans to offer 8.5 million shares of common stock in a public offering, giving underwriters the option to purchase an additional 1.275 million shares. Ventas also announced plans for a $200 million worth of 6.5% senior notes due 2016.
The net proceeds of these offerings are expected to be used to fund the company's cash tender offers with respect to higher-interest senior notes due 2010, 2012, 2014, and 2015.
Ventas shares were down 71 cents, or 2.75%, in morning trading Tuesday.
We removed shares of VTR from our "Recommended" list Sept. 5, when the stock was trading at $43.87. The stock has technical support support in the $18-$19 price range. We see overhead resistance around the $29-$31 price range. We would remain on the sidelines for now.
Ventas is not recommended at this time, holding a Dividend.com DARST Rating of 2.9 out of 5 stars.
Citigroup Tells Investors to Sell Shares of Archer Daniels Midland
Archer Daniels Midland
were down over 9% in early trading after Citigroup downgraded shares of the agriculture name to sell.
The analyst sees slowing agricultural demand and overcapacity as negatively impacting volumes and margins in the company's oil seed processing and agricultural services units.
We have avoided shares of ADM since our early June coverage began, and the stock was trading at $37.20. The company has a 1.95% dividend yield, based on last night's closing stock price of $28.71. The stock has technical support in the $19-$21 price area. If the shares can rebound from today's drop, we see overhead resistance in the $29-$32 price area. We would remain on the sidelines for now.
Archer Daniels Midland is not recommended at this time, holding a Dividend.com DARST Rating of 3.1 out of 5 stars.
Immucor Third-Quarter Profit Flat on Higher Revenue; Reaffirms In-Line Guidance
Human blood reagents and automated systems maker
reported third-quarter earnings late Monday that were flat compared with the prior-year period.
The Norcross, Ga.-based company reported fiscal third-quarter earnings of $19.5 million, or 27 cents per share, from $19.3 million, or 27 cents per share, in the year-ago period. Revenue rose more than 12% to $75.3 million from $67 million in the same period a year ago.
On average, Wall Street analysts expected earnings of 22 cents per share on revenue of $73.1 million.
Immucor reaffirmed its earlier guidance for full-year 2009 earnings between 97 cents to $1.02 per share, on total revenue between $292 million and $300 million. The company said it expects full-year earnings to fall at or slightly above the upper range of those estimates. On average, Wall Street analysts are expecting earnings of 99 cents per share on revenue of $295.5 million.
After gapping up more than $1.50 after hours Monday, Immucor shares fell slightly below Monday's closing price in morning trading Tuesday.
Shares of BLUD are off all-time highs of $36 a share, hit in September 2007. The stock has technical support in the $18-$20 price area. If the shares can firm up, we see overhead resistance at the $28 price levels. We do not currently rate this non-dividend paying stock, but do follow the name closely.
Immucor does not currently pay a dividend.
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At the time of publication, the author had no positions in stocks mentioned, although positions may change at any time.
Tom Reese and Paul Rubillo are senior editors of Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news, and analysis for long-term and income-seeking investors.