Will the Street React to Weak Q2 Earnings?

[flipflopper]

Even though I'm short I don't believe the market will be phased by earnings misses on these already artificially low estimates. I really don't think reality matters in the economy at this point. The raging bull has spoken.

Never fight the trend.

17:44 EDT MRVL
theflyonthewall.com: Marvell Tech-MRVL reports Q1 EPS of (9c) vs consensus of 7c
Reports Q1 revenue of $635.1M versus consensus of $644.5M. Note: Unclear if Q1 EPS statistic is comparable to consensus estimate. :theflyonthewall.com
17:38 EDT CACS
theflyonthewall.com: Carrier Access-CACS sees Q2 EPS of (28c)-(31c) vs consensus of (26c)
Sees Q2 revenue of $7.5M-$7.7M versus consensus of $9.2M. CACS also approved a restructuring plan intended to streamline its wireless and converged access businesses, in order to better-align expenses with current revenues. CACS also announced that its CEO has declined to take a salary. :theflyonthewall.com
16:28 EDT UNCA
theflyonthewall.com: Unica-UNCA reports preliminary Q3 EPS of 1c-2c vs consensus of 10c
Reports preliminary Q3 revenue of $23M versus consensus of $27M. Yuchun Lee, chief executive officer of Unica, stated: "We are disappointed with the financial results we expect to deliver for the third quarter. A number of license transactions in our original forecast did not close in the quarter primarily due to sales execution issues, though we currently expect that a majority of these transactions will close in future quarters." Lee added, "We are optimistic that the sales execution issues we are facing are within our control. We continue to see strong demand for EMM solutions and Unica continues to be recognized as a market leader by industry analysts and customers." :theflyonthewall.com
16:16 EDT CAKE
theflyonthewall.com: Cheesecake-CAKE reports preliminary Q2 373.2M vs. estimates of 4370.9M
Total revenues increased approximately 15.7% to $373.2 million from $322.6 million in the second quarter of fiscal 2006. Comparable restaurant sales increased 1.1% in the second quarter of fiscal 2007. By concept, comparable restaurant sales increased 0.8% at The Cheesecake Factory and increased 5.7% at Grand Lux Cafe in the second quarter of fiscal 2007. :theflyonthewall.com
16:15 EDT AA
theflyonthewall.com: Follow-up: Alcoa-AA Q2 EPS of 81c includes some items; may not be comparable
Included in the quarterly results was a favorable after-tax restructuring adjustment of $21 million, or 02c per share. This was generated mainly by the completion of the soft alloy extrusion joint venture with Sapa. The quarterly results also included 02c per share in after-tax transaction costs stemming from the company's outstanding offer for Alcan. The quarterly results were achieved despite $36M after tax, or 04c per share, of curtailment costs at the Tennessee and Rockdale, TX smelters. AA said its debt-to-capital ratio stood at 29.4 percent at the end of the quarter, the lowest so far this decade. :theflyonthewall.com
16:11 EDT AA
theflyonthewall.com: Alcoa-AA reports Q2 EPS 81c vs. consensus of 82c
AA reports Q2 revenue $8.1B vs. consensus of $8.41B. :theflyonthewall.com
16:07 EDT SCSC
theflyonthewall.com: ScanSource-SCSC expects quarterly revenues in range of $520-$528M
Consensus estimates are for $524.7M. :theflyonthewall.com
16:03 EDT WDFC
theflyonthewall.com: WD-40 Company-WDFC reports Q3 EPS of 44c vs consensus of 47c
Reports Q3 revenue of $77.6M versus consensus of $80.3M. Sees F2007 EPS of $1.74-$1.79, excluding items, versus consensus of $1.79. Note: Unclear if F2007 EPS guidance is comparable to consensus estimate. :theflyonthewall.com
16:01 EDT QMED
theflyonthewall.com: Q-MED-QMED reports Q2 EPS (17c) vs. estimates of (14c)
QMED reports Q2 revenue of $9.45M vs. estimates of $9.18M. :theflyonthewall.

 

[flipflopper]

It may not happen tomorrow, or next week, or next month, but when it does finally hit the fan it may get ugly.

http://www.cbsnews.com/stories/2007/07/09/business/main3034542.shtml?source=RSSattr=Business_3034542

Consumer Borrowing Jumps In May
Hefty Increase Reflects Biggest Rise In Credit Card Debt In Six Months


WASHINGTON, July 9, 2007
The borrowing increase was propelled by a surge in the category that includes credit cards, which rose at a rate of 9.8 percent in May after having a tiny increase of 0.2 percent in April. (AP Photo)

Fast Fact

The size of the increase caught economists by surprise, although they had been expecting a pickup from the sluggish performance in May, when the 1.1 percent rise in overall credit was the smallest gain since a 0.1 percent rise in October.

(AP) Consumer borrowing posted a hefty increase in May, reflecting the biggest jump in credit card debt in six months.

The Federal Reserve reported Monday that consumer credit rose at an annual rate of 6.4 percent in May, far above the small 1.1 percent gain of April. The advance was about double what analysts had been expecting.

The increase was propelled by a surge in the category that includes credit cards, which rose at a rate of 9.8 percent in May after having a tiny increase of 0.2 percent in April. The jump in credit card debt was the largest since a 14.5 percent rate of increase in November.

The category of consumer credit that includes auto loans was also up in May, rising at a 4.4 percent rate after a 1.7 percent gain in April.

The size of the increase caught economists by surprise, although they had been expecting a pickup from the sluggish performance in May, when the 1.1 percent rise in overall credit was the smallest gain since a 0.1 percent rise in October.

The overall economy, weighed down by a steep slump in housing, grew at a lackluster rate of 0.7 percent in the January-to-March quarter, the weakest showing in more than four years.

But economists believe strength in employment and consumer spending will help provide a stronger performance in the April-June quarter, with many looking for the gross domestic product to expand at a rate of 3.5 percent or even better.

The report on consumer borrowing will provide support for the view that consumer spending has held up, despite the weakness in home sales and soaring gasoline prices during the spring.

For May, consumers increased their borrowing by $12.9 billion to a record level of $2.44 trillion. Economists had been forecasting that consumer borrowing would rise by a much smaller $6.5 billion.