Good morning, here’s your daily equity research roundup from the Street:
- Gaming: Las Vegas August visits increased 2.8% and revenue per available room is up 14.0%. Atlantic City, not so lucky. There, revenue fell 0.6% during September. Both Trump Plaza and Trump Taj Mahal post double-digit declines.
- American Airlines (NYSE: AMR): Cutting expected loss after the company announced it was grounding a dozen planes this winter to lower capacity. Analysts update loss to $3.62 for 2011 vs. – $3.66. Full year 2012 guidance raised from -$1.80/share to -$1.20/share.
- Chevron Corp. (NYSE: CVX): Company update yesterday slightly negative on 5.4% lower international gas and oil production. Foreign exchange rates and asset gains will provide a boost, and analysts believe there will be a number of upward revisions to take that into account. Barclays is increasing EPS/earnings forecasts for the third quarter to $3.64/$1.34B from $3.35/$954M.
- Google (NASDAQ: GOOG): The search giant reports earnings tomorrow after the market closes. Barclays estimates revenue growth of 34% to $7.3 billion and EPS to $8.74 a share – slightly below consensus estimates.
- Footwear and Apparel: With the NBA lockout cancelling the first two weeks of games. Citi remains bullish on Finish Line as the company shifts product mix to running categories.
- Alcoa (NYSE: AA): Citi is lowering estimates for the aluminium producer to $0.86 from $0.99 on lower profits out of Flat-Rolled Product division. Maintaining $10 target. Yesterday Alcoa missed consensus third quarter estimates by seven cents.
- Owens Corning (NYSE: OC): Lowering estimates on poor revenue growth in Composites, particularly from Europe, and weakness in Roofing following hurricane season. Analysts now forecast 2011 EPS of $2.01 from $2.22.
- TE Connectivity (NYSE: TEL): S&P announces the inclusion of the company on the S&P 500 which will boost share purchases by nearly 45 million by funds. The company also looks to gain as Japanese auto production ramps faster than originally anticipated.
- Motorola Solutions (NYSE: MSI): Lowering full year 2011/2012 EPS on macro weakness to $2.46/$2.78 a share, from $2.50/$2.81 a share, respectively. Analysts expect sales of $2.08 billion for the quarter, up 7%.
- NetApp Inc. (NASDAQ: NTAP): Lowering 2012 estimates by 4% to $2.42 but maintaining outperform rating. Slow revenue growth may become less an issue as firm rolls out new product ONTAP 8.1.
- Transportation: Downgrading C.H. Robinson Worldwide and Norfolk Southern Corp to hold ratings as transportation a whole sees headwind in the fourth quarter. A short peak season likely hurt U.S. ports and visibility into Holiday remains limited, even after shipping container and rail carload channel checks.
- Earnings Preview: Goldman expects a 2% upside to current bottom-up consensus for third quarter, built mainly from surprises in Information Technology. Analysts see total EPS growth of 16% compared to 2010.
- Price Changes: Increase: IAC/InterActiveCorp (new $46.00 v. old $42.00), Live Nation Entertainment (new $11.50 v. old $11.00); Decreases: AOL (new $13.50 v. old $14.00), Lazard Ltd. (new $28.00 v. old $32.00), Monster Worldwide (new $7.00 v. old $13.00), Netflix (new $200.00 v. old $270.00), WebMD (new $33.00 v. $46.00).
- Newspapers: Further soft advertising trends likely to hurt The New York Times and Gannett Co., both of which report next week. The Times will see some upside as analysts say the “pay wall has gone very well so far and the recent launch of the Boston Globe pay wall appears to be off to a good start.”
- Lexmark International (NYSE: LXK): Downgrading to underweight and lowering EPS estimates by 23% to $3.79 a share. Analysts believe ink jet sales could tumble as Hewlett-Packard makes a further push into the business and a cyclical downturn pressures the industry.
- NCR Corp. (NYSE: NCR): Expecting consensus estimates to increase if NCR can close the sale of its DVD kiosks. The company is still reliant on ATM hardware spending, which could come under pressure if banks cut back.
- Earnings Preview: UBS analysed early earnings reporters and see 3% upside potential to current bottom-up estimates, but that remains below the 6% upside seen in the past six quarters.
- ADTRAN Inc. (NASDAQ: ADTN): Third quarter sales hit $192 million, above consensus of $189 million. EPS in line at $0.59, but investors remain worried about product assortment and price pressures.
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