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News to Go
Gaming and lodging giant Starwood Hotels & Resorts (NYSE: HOT) declared a $0.20-per-share first-quarter dividend today, a 16% increase over the previous rate. For more information on what dividends are and what they mean, check out the Fool FAQ.
The quarterly profit, which represented a $0.02-per-share drop-off from last year, was as expected by Wall Street following two announcements guiding projections downward. Lower lumber prices and a difficult economic environment have hurt the company, as well competition and organizational issues stemming from recent acquisitions. (It's also been a difficult time for lead dog Home Depot (NYSE: HD), which Paul Larson discussed in a story last week.)
But the company seems hopeful when forecasting Q1 (ending May 4) results. Lowe's expects another 20% sales increase, improved gross margins, and "flat to slight leverage" in its selling, general and administrative (SG&A) cost account. For Q2, it's looking for top-line expansion of 15%, better gross and operating margins, and flat to positive same-store sales. (For more on operating in the retail business, check out our InDepth page on the subject.)
All told, Lowe's is pointing investors toward 115 to 120 new stores for the year, translating to square footage growth of 18% to 20% and sales growth of 17% to 19%. Gross and operating margins are seen improving by 20 to 30 basis points (0.2% to 0.3%), same-store sales by 2% to 4%.
Earnings per share are projected at $2.45 to $2.50. Wall Street is currently looking for $2.11.
Gazing toward to 2002 and 2003, the company projected square-footage growth of 18% to 20%, same-store sales improvements of 4% to 6%, gross margin expansion of 0.2% to 0.25%, operating margin growth of 0.25% to 0.3%, and EPS growth of 20% to 22% each year.
Automaker DaimlerChrysler (NYSE: DCX) expects to lose $3.9 billion before taxes and interest in Q1 as the company takes heavy charges to cut jobs at the Chrysler division. The German-run company hopes to return the U.S. operation to profitability by next year. Beyond charges, the company has also said it's scaling back production in the face of slowing demand and the need for inventory "normalization."
Long-distance phone company Qwest Communications (NYSE: Q) will meet 2001 revenue and earnings goals, CEO Joseph Nacchio is expected to tell a Washington, D.C. audience this morning. The company has repeatedly made this point in recent weeks. Look for between $21.3 billion and $21.7 billion in revenue and between $8.5 billion to $8.7 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA).
Real estate services company CB Richard Ellis (NYSE: CBG) plans to go private, the company accepting a $16-per-share cash offer from a group that includes some of the company's directors and officers. A previous offer made in November was $0.50 per share lower. The deal is expected to close in Q2.
Number-two Internet service provider EarthLink (Nasdaq: ELNK) will launch a television advertising campaign aimed at highlighting its commitment to user privacy. The 30-second spot will air in 14 U.S. markets.
Check out Friday's Foolish market wrap-up with just one click.
Dave Marino-Nachison is in the mood for bagels. He doesn't own any of the companies mentioned in this report. His stock holdings can be viewed online, as can the Fool's disclosure policy.
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