Joy Global Shares Rally Despite Cautious 2009 View
announced profit rose to $118 million, or $1.11 a share, from $69.6 million, or 64 cents a share, in the year-earlier period.
Revenue for the mining-equipment company increased to $1.03 billion from $736 million. Management said it is taking steps to restrict increases in headcount, expenses and capital expenditures, as a result of the current economic conditions.
As for 2009, the company is lowering its EPS range to $3.60 to $4 on revenue of $3.5 billion to $3.7 billion. The consensus estimates are for EPS of $4.20 on revenue of $3.98 billion.
We had removed shares of Joy Global from our "Recommended" list back on July 22, when the stock traded at $68.97. The company has a 3.09% dividend yield, based on last night's closing stock price of $22.66. The company does have some long-term support in the $13 price area, if the shares carry to the downside. We would remain cautious on the name as we head into 2009. The stock does have the potential to move quickly higher if the economy can bottom. We'll monitor the name closely.
Joy Global is not recommended at this time, holding a Dividend.com Rating of 2.9 out of 5 stars.
ConAgra Foods Shares Rally on Higher 2009 Guidance
reported second quarter profit fell 31% to $168.1 million, or 37 cents a share, for the three months ended Nov. 23, down from $244.8 million, or 50 cents a share, a year earlier.
The maker of Chef Boyardee and Peter Pan saw sales rise 10.6% to $3.26 billion from $2.95 billion a year ago.
As for 2009, management is expecting the company to earn $1.50 per share, which is higher than analyst expectations of $1.43 for the year.
We had removed shares of ConAgra Foods from our "Recommended" list back on June 27, when the stock was trading at $19.67, after briefly having them on the recommended list at $23 a share. The company has a 5.05% dividend yield, based on last night's closing stock price. We like the earnings bump from management -- and now it comes down to execution. We will monitor the name closely and keep investors posted of any ratings change.
ConAgra Foods is not recommended at this time, holding a Dividend.com Rating of 3.3 out of 5 stars.
Newell Rubbermaid Guidance Hurts Value Investors
announced it is cutting its fourth quarter and full-year profit guidance, citing the downturn in the global economy.
The company says it will reduce its staffing levels by 8% to 10% as well as institute a wage and salary freeze. The company is forecasting EPS in the 6 cents to 10 cents range, below its previous outlook of 29 cents to 34 cents. The consensus estimates are for 32 cents.
Management is seeing weaker than expected demand, and customer inventory reductions across in many market segments.
We had removed shares of Newell back on July 9, when the stock was trading at $16.16. We had recommended the shares briefly from the $19 level. The company has a 6.37% dividend yield, based on last night's closing stock price of $13.18. Newell is another name that value investors have paraded around with. The dividend yield may not be as secure as it had once been, but we did not hear from management if they had any plans for the dividend payout at this time. The company does have long-term technical support in the $8 price area, but we would remain on the sidelines until we see the shares stabilize.
Newell Rubbermaid is not recommended at this time, holding a Dividend.com Rating of 3.1 out of 5 stars.
Xilinx Says December Sales Are Lagging
announced late Tuesday that it is lowering its third-quarter guidance, as December sales have been weaker than anticipated.
The company now sees sales declining between 6% and 10% from second-quarter levels. The previous guidance was for between 2% growth and a 2% decline.
The company does expect sales from the wireless communications and defense markets to show gains from the second quarter.
We have avoided shares of Xilinx since our early June coverage began, when shares were trading at $27.29. The company has a 3.09% dividend yield, based on last night's closing stock price of $18.13. The shares do have some technical support in the $13 area. We would like to see the shares consolidate here, before concluding that a bottom may be near.
Xilinx is not recommended at this time, holding a Dividend.com Rating of 2.9 out of 5 stars.
Be sure to visit our complete
recommended list of the Best Dividend Stocks
as well as a
detailed explanation of our ratings system
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.