Stanley Black & Decker (NYSE: SWK ) shares were up in trading following the company’s unveiling of its guidance for fiscal 2014. The power tools specialist is projecting that its EPS for the year will be $5.30 to $5.50 per share, on organic growth of roughly 4% on a year-over-year basis.The former is in line with the average analyst estimate of $5.40 per share.
In the press release detailing the figures, the company said it believes growth will come from the investments it has made this year, combined with the results of a recent spate of cost-cutting measures.
In presenting the 2014 projections, Stanley Black & Decker also reaffirmed its existing fiscal 2013 estimates. The firm still anticipates that it will post EPS of $4.90 to $5.00 for the year, on organic growth of 3% over 2012 The average analyst EPS estimate is $4.94.
In the wake of the new guidance, the company’s stock advanced by 1.5%, or $1.20, to close the day at $80.55 per share.
The Department of Defense announced nine new defense contracts on Thursday worth $1.31 billion. Lockheed Martin (NYSE: LMT ) didn’t win the biggest of these contracts. That honor went to Boeing. But Lockheed did win the second-largest award — a $200.7 million contract modification to a contract to build GPS III space vehicles 05 and 06.
The contract being modified was originally awarded to Lockheed Martin on May 15, 2008, being then described as “a new contract for the first increment, of the next generation of Global Positioning System (GPS Base IIIA) … a satellite-based radio navigation system that serves military and civil users worldwide… [using] existing capabilities [to] introduce a new L1C civil signal, increase earth coverage M-Code power for authorized military users, provide a graceful growth path to achieve full capabilities development document threshold requirements, and continue support for the Nuclear Detonation Detection System mission.”
This original contract was valued in excess of $1.46 billion, and has subsequently been modified – and had dollars added to its value. The modification announced today covers work that should be completed by Dec. 14, 2017.
Ciena (NASDAQ: CIEN ) swung to an adjusted net profit in its Q4, but the result still fell short of expectations. For the quarter, revenue was $583 million, a substantial improvement over the $466 million in the same period the previous year. The company’s net loss was much narrower, at $9.8 million ($0.09 per diluted share), against Q4 2012′s $38.8 million ($0.39). On an adjusted basis, those figures were a profit of $18.3 million ($0.16 per share) and a shortfall of $6.7 million ($0.07), respectively. Analysts had been anticipating an adjusted EPS of $0.24 on revenue of $569 million.
For the entirety of fiscal 2013, Ciena posted revenue of $2.1 billion and a net loss of $85.4 million ($0.83 per diluted share). On an adjusted basis, bottom line was just under $59 million ($0.54). Those figures for fiscal 2012 were $1.8 billion, and losses of $144.0 million ($1.45 per diluted share), and $23.5 million ($0.24), respectively.
Ciena also provided selected guidance for its current Q1 2014. It believes its top line will come in at $515 million to $545 million, while its adjusted gross margin percentage will be in the low 40s, and operating expenses will total roughly $205 million.
Separately, Ciena announced that it is to transfer the listing of its common stock from Nasdaq to the New York Stock Exchange. It anticipates the first day of trading on the NYSE will be December 23, and that it will keep its present ticker symbol of CIEN.
Adobe Systems Inc, the maker of Photoshop and Acrobat software, forecast current-quarter results below analysts’ estimates but reported a 22 percent jump in the number of subscribers to its Creative Cloud suite from the preceding quarter.
The company’s shares rose about 8 percent after initially falling 5 percent in extended trading.
Adobe added 402,000 subscribers for Creative Cloud, which includes Photoshop, Illustrator and Flash, in the fourth quarter, up from the 331,000 it added in the third quarter.
“Investors are giving Adobe’s management team credit for its progress despite the light profit to this point, and will likely continue to do so, as long as the number of new cloud subscribers continue to outpace expectations,” Edward Jones’ technology analyst Josh Olson told Reuters.
The company said in September it expects subscriber growth for Creative Cloud to top 331,000 due to strong demand from corporate customers.
Adobe has been shifting to web-based subscription service Creative Cloud from a licensing model since last year.
Subscription models bring in less money upfront as payment is spread over the entire period of use unlike traditional packaged software, but typically ensure more predictable recurring revenue.
Adobe said it expects revenue of $950 million to $1 billion in the first quarter.
The company forecast adjusted earnings of 22 cents to 28 cents per share.
Analysts on average were expecting earnings of 34 cents per share on revenue of $1.02 billion, according to Thomson Reuters I/B/E/S.
The company’s net income fell to $65.32 million, or 13 cents per share in the fourth quarter ended November 29, from $222.3 million, or 44 cents per share, a year earlier.
Excluding items, the company earned 32 cents per share, in line with analysts’ estimate.
Revenue fell 9.6 percent to $1.04 billion, slightly above the estimated $1.03 billion.
Adobe’s shares were up at $57.90 in extended trading after closing at $53.99 on the Nasdaq on Thursday.
(Reporting by Sruthi Ramakrishnan and Neha Alawadhi in Bangalore; Editing by Maju Samuel and Don Sebastian)
WASHINGTON – By a 332 to 94 margin, the House of Representatives easily cleared legislation for a two-year budget deal. The legislation now moves to the Senate, where little resistance is expected. There were 169 Republicans and 163 Democrats who voted for th deal, and 62 Republicans and 31 Democrats opposed. The deal sets spending levels at roughly $1 trillion for each of the next two years, and it is estimated to cut the deficit by $85 billion over 10 years.
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