Wyndham Revenue Falls 12%
shares are down nearly 18% in early trading after the hotel and timeshare operator posted a fourth-quarter loss of $1.36 billion, or $7.63 per share, compared with year-earlier profit $104 million, or 58 cents per share.
The company's revenue fell 12% to $911 million, as consumers and businesses are looking to trim travel costs. The company's revenue it earns per available room, a key industry measure called revpar, declined 6.4%.
Management said the disruptions in the global economy and capital markets, and uncertainty about how these will impact employment, consumer spending and other macroeconomic drivers, will make 2009 an uncertainty as far as the company's performance.
We removed shares of Wyndham from our "Recommended" list on Aug. 19, when the stock was trading at $18.70. We had the shares on the list at a price of $18.44 from the month before.
The company has a dividend yield of 2.69%, based on last night's closing stock price of $5.94. The stock has technical support around the $3 level. If the shares can firm up, the stock would face overhead resistance around the $9 to $10 level. We would look elsewhere for better investment opportunities at this time.
Wyndham Worldwide is not recommended at this time, holding a Dividend.com Rating of 2.5 out of 5 stars.
PepsiCo Matches Analyst EPS Estimates
are up nearly 2% this morning, despite the drop in fourth-quarter profit to $719 million, or 46 cents per share, compared with $1.26 billion, or 77 cents per share, a year earlier.
The company said sales rose 3% to $12.73 billion from $12.35 billion, but did miss consensus forecasts for revenue of $12.8 billion.
Looking ahead, management expects mid- to high-single-digit growth for 2009 earnings and revenue.
We removed shares from the list on Oct. 7, when they traded at $66.64. The company has a 3.27% dividend yield, based on last night's closing stock price of $52. The stock has technical support around the $40 price area. If shares can firm up, we see overhead resistance around the $59 to $61. We would remain on the sidelines for now.
PepsiCo is not recommended at this time, holding a Dividend.com Rating of 3.4 out of 5 stars.
McAfee Shares Jump on Solid Fourth-Quarter Earnings
Shares of computer security company
were up nearly 10% in morning trading Friday, on news that the company's fourth-quarter revenue grew 19% from the year-ago period.
The company said that its fourth-quarter 2008 revenue was $424 million, compared to $356.5 million in the same period in 2007.
McAfee's net income grew to $45.4 million, or 29 cents per share, up from the year-ago period, which saw income of $12.2 million, or 7 cents per share. Excluding special items, the company's profit was $82.5 million, or 53 cents per share in 2008, up from $75.1 million, or 46 cents per share in 2007.
On average, analysts were expecting earnings of 53 cents per share on revenue of $421 million, excluding special items.
The company said that revenue from its corporate and consumer security units grew 21% and 16%, respectively.
For the full year 2008, McAfee reported net income of $172.2 million, or $1.08 per share, up from 2007 levels of $167 million, or $1.02 per share. Total revenue for 2008 was $1.6 billion, a 22% gain from 2007, when the company brought in $1.3 billion in revenue.
The company said it excepts first-quarter 2009 net income between 20 cents and 24 cents per share, and non-GAAP net income of 46 cents per share to 50 cents per share. Analysts are expecting net income of 50 cents per share.
The stock has technical support in the low 20s. We see overhead resistance around the $35 to $40 price range. We do not currently rate this non-dividend paying stock, but we do monitor the company's news flow as it is a prime player in the software space.
McAfee does not currently pay a dividend.
Nordic American Tankers Fourth-Quarter Profit Climbs, but Falls Short of Expectations
Oil tanker operator
Nordic American Tanker
reported fourth-quarter profit of 50 cents per share Friday, just short of analyst expectations of 51 cents per share.
The company said its fourth-quarter profit was $17.2 million, or 50 cents a share, up significantly from the year-ago period, when the company profited $1.68 million, or 6 cents a share. Revenue for the quarter climbed to $40.5 million, from $26.9 million in the same period in 2007.
Analysts had been expecting fourth-quarter profit of 51 cents per share.
Based on these results, Nordic says it will pay an 87 cent quarterly dividend around March 9 to shareholders of record as of Feb. 25. This dividend amount was reduced from the previous quarterly payout of $1.61, which was paid in November.
We had removed shares of Nordic American Tanker from our "Recommended" list on Aug. 22, when the stock traded at $34.75. The company has an 11.75% dividend yield, based on the new dividend payout and last night's closing price of $29.62. The stock has technical support in the $24 to $25 price range. If the shares can firm up, we see overhead resistance around the $37 price area. We would remain on the sidelines for now.
Nordic American Tanker Shipping is not recommended at this time, holding a Dividend.com Rating of 3.2 out of 5 stars.
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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.