Speaking of Europe, alcohol producer Diageo (think Smirnoff, Guiness, Johnnie Walker, Bushmill's, Crown Royal, J&B, Seagram's, Gordon's, Ketel One, Jose Cuervo, Tanqueray, Captain Morgan, Baileys, Harp, Red Stripe, Beaulieu...I know way too much about this company) was down about 2 percent pre-open, reported organic profit growth of 2 percent for its fiscal year 2010 just ended, about in line with the lower end of guidance but still a disappointment to the Street, many of which were expect ing 3 to 5 percent growth.
Latin America, Africa and Asia saw growth, but demand still weak in Europe and North America.
Guidance for FY 2011 is for operating profit growth better than 2 percent. But with North America still contributing about 40 percent of the profits, even that lackluster guidance may not be a slam dunk.
They announced a 6 percent increase in the dividend (their current yield of 3.51 percent is pretty good), but that is not enough to create much excitement.
1) 3Par falls 3 percent to $26 after the data server firm announced it has accepted Dell's increased offer of $1.6 billion for the company. The new deal will give 3Par shareholders $24.30/share in cash, up from Dell's earlier offer of $18/share and $0.30 more than Hewlett-Packard's competing bid. However, the revised offer fell short of the $29 bid many shareholders and analysts had expected.
2) Guess falls 7 percent after its outlook disappointed the Street. Despite beating estimates in the last quarter ($0.72 vs. $0.68 consensus), the denim/apparel maker sees full-year earnings of $2.80-$2.85, short of $2.92 consensus. CEO Paul Marciano notes that "economic conditions remain uncertain in many markets around the world and consumer behavior remains cautious."
3) Jo-Ann Stores Q2 earnings far exceeded expectations ($0.20 vs. $0.02 consensus) as margins expanded and same-store sales rose 4.4 percent.
The fabric retailer raised its full-year earnings and sales guidance. 2010 earnings are now seen between $3.20 and $3.35 vs. $3.23 consensus as margins improve, while comps are now forecast up between 3.0 percent and 4.0 percent.
Bookmark CNBC Data Pages:
Questions? Comments? firstname.lastname@example.org