Ticker Shock: Sears, Beazer, Palm Going South for Winter

Glenn Curtis  Dec 02, 2008 12:15 pm

Ticker Shock: Sears, Beazer, Palm Going South for Winter
 
Tuesday's top stories and stocks with potential to move.
 

 
Cooper Industries (CBE)
 The Texas-based manufacturer of electrical equipment offered up revised fourth-quarter guidance.

In the release, Cooper said “it expects fourth-quarter results of $0.70 to $0.80 earnings per share, exclusive of restructuring charges.”

Analysts are currently at $0.73.

In conjunction with its third-quarter results back in October, the company had said it was looking for EPS from continuing ops of $0.83 to $0.92 per share in the fourth quarter(“exclusive of a fourth-quarter charge.” ). Then on November 21st, it issued a release saying it expects results to come in under that.

So here’s the deal: I can see this stock making a comeback at some point. However, I think I’d prefer to wait for a little more color regarding the future - such as the earnings release slated to appear in late January.

Palm (PALM)
 On Monday after the bell, the well-known smartphone company released preliminary second-quarter numbers for fiscal year 2009. 

Palm said it expects second-quarter revenue of $190 to $195 million; analysts had been at about $330.8 million.

To be frank, I think the shares will get taken out to the woodshed today. Suffice it to say, I don’t plan on jumping in here. Seriously, that’s a pretty big disappointment.

An aside: Given that the shares trade at under $2, I really think the company is going to have trouble garnering institutional and analysts' interest.

Again, I’m punting on this one.

Have a great day!
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