AMR (AMR)

AMR Corp's American Airlines is facing large fines as a result of an Federal Aviation Administration (FAA) two year long investigation over alleged safety violations. Both the FAA and the Department of Transportation, separately, will release reports outling apparent failures to identify and promptly resolve aircraft maintenance problems in 2008, which includes improperly securing wiring in 290 MD-80 jets, according to Dow Jones and the Associated Press.
The fine will likely be around $10 million according to unnamed officials. The amount is the same as was proposed against Southwest Airlines Co. (LUV) in March 2008 for missed examinations of structural cracks.

Feb 11 · 2:23:00 PM
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by Steve Wieczorek

Philip Morris (PM)

Full-year reported diluted earnings per share of $3.24 versus $3.31 in 2008. Fourth-quarter reported diluted earnings per share of $0.80 versus $0.71 in 2008. Forecasts 2010 full-year reported diluted earnings per share to be in a range of $3.75 to $3.85. Announced a new share repurchase program of $12 billion over 3 years to commence in May 2010. Net revenues of $25.0 billion were down by 2.6% for the full-year 2009, due to unfavorable currency of $2.6 billion. Excluding currency, net revenues increased by 7.5% for the full year, driven by favorable pricing of $2.0 billion across all business segments,
This report was a home run. Although sales were relatively flat for the year, earnings were up. Plus, the forecast for 2010 is impressive. And the stock repurchase program shows the company has a lot of confidence.

Feb 11 · 2:13:00 PM · Source: Company Press Release
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by Rich Pike

Home Depot (HD)

According to Trading markets, Home Depot is taking a hard look at those acres of blacktop surrounding their stores to see if they could support an acre-sized business in the parking lot. Fast-food restaurants, banks or auto-parts stores are the most likely businesses that will pop up on those oceans of asphalt that are no longer practical, said Mike LaFerle, vice president of real estate and construction for the company.
File this under "signs of the times". The 14 stores in the Sacramento region are among the potential locations for the "carve-out" projects, but specific sites have not been identified. We'll keep you posted.

Feb 11 · 2:06:00 PM · Source: Trading Markets
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by Rich Pike

AutoNation (AN)

AutoNation reported 2009 fourth quarter GAAP net income from continuing operations of $62 million or $0.36 per share, compared to $73 million or $0.42 per share for the prior year. Fourth quarter 2009 revenue totaled $2.8 billion, compared to $2.6 billion in the year-ago period, an 8% increase.

For the full year ended December 31, 2009, the Company reported GAAP net income from continuing operations of $234 million or $1.32 per share, compared to a GAAP net loss from continuing operations of $1.2 billion or $6.82 per share for the prior year. The Company's revenue for the full year ended December 31, 2009 totaled $10.8 billion, down 20% compared to $13.4 billion in the prior year.
The results look okay until you take a close look at the fact that revenue was down 20% in 2009 from 2008. AutoNation's CEO stated that planning assumption for 2010 industry new unit sales is 11.5 million units with a gradual increase in the selling rate over the course of the year.

Feb 11 · 2:00:00 PM · Source: Company Press Release
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by Rich Pike

Firstenergy (FE)

FirstEnergy and Allegheny Energy announced that both companies' boards of directors have unanimously approved a definitive agreement in which the companies would combine in a stock-for-stock transaction. Under the terms of the agreement, Allegheny shareholders would receive 0.667 shares of FirstEnergy common stock in exchange for each share of Allegheny they own. Based on the closing stock prices for both companies on February 10, 2010, Allegheny shareholders would receive a value of $27.65 per share, or $4.7 billion in the aggregate. FirstEnergy will also assume approximately $3.8 billion in Allegheny net debt. The price per share represents a premium of 31.6 percent to the closing stock price of Allegheny on February 10, 2010, and a 22.3 percent premium to the average stock price of Allegheny over the last 60 days ending February 10, 2010. Following the completion of the merger, it is anticipated that FirstEnergy shareholders would own approximately 73 percent and Allegheny shareholders would own approximately 27 percent of the combined company.
The transaction is anticipated to be accretive to FirstEnergy earnings in the first year following the close. The companies expect to complete the transaction within 12-14 months. The combination creates a leading regional energy provider with approximately $16 billion in annual revenues and $1.4 billion in annual net income.

Feb 11 · 1:57:00 PM · Source: Company Press Release · Related: Allegheny Energy
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by Michael Oliveto

Expedia (EXPE)

Expedia's press release is confusing and hard to follow, which does not instill confidence. Here's their section on their cash flow, which might just be the most important thing to look at "Net cash provided by operating activities in 2009 was $676 million and free cash flow was $584 million. Both measures include $207 million from net changes in operating assets and liabilities, primarily driven by an improvement in our merchant hotel bookings in the fourth quarter of 2009 compared to 2008. Free cash flow increased $223 million in 2009 primarily due to growth in our merchant hotel business, lower capital expenditures and higher OIBA, partially offset by occupancy tax assessments and an increase in cash paid for interest and income taxes."
Also, Expedia’s Board of Directors declared a quarterly cash dividend of $0.07 per share of outstanding common stock to be paid to stockholders of record as of the close of business on March 11, 2010, with a payment date of March 31, 2010.

Feb 11 · 1:50:00 PM · Source: Company Press Release
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by Rich Pike

Southern Company (SO)

Southern Company announced that its earnings estimate for the first quarter of 2010 is $0.42 per share. For fiscal 2010, the Company expects earnings per share to be in the range of $2.30 to $2.36.
According to Reuters Estimates, analysts were expecting the Company to report EPS of $0.47 for the first quarter of 2010; EPS of $2.43 for fiscal 2010.

Feb 11 · 1:47:00 PM · Source: Reuters
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by Michael Oliveto

AirTran (AAI)

AirTran Airways has recently announced that it has reached an agreement with its dispatchers, represented by Transport Workers Union, on a 48 month contract. The company has to still work through its pilot, and flight attendant contracts, according to the Jesup & Lamont report from Benzinga.
While the Jesup & Lamont report estimates AirTran Holdings, Inc. to make a loss of $0.15 per share in the first-quarter, the company can move to a positive earnings if the pricing is better than expectations. This would also hinge on the company securing an agreement with both the pilots and flight attenants.

Feb 11 · 1:12:00 PM
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by Steve Wieczorek